Seattle port reorganizes capital projects management

Seattle port reorganizes capital projects management The Port of Seattle, still reeling from a scathing state audit that questioned the port authority's contracting procedures, said Feb. 28 it would create a new management division to oversee all capital projects.
   Port Chief Executive Officer Tay Yoshitani said the change is expected to provide the port authority with more centralized oversight of complex capital projects, which were the main focus of the state audit.
   Released on Dec. 20, the 200-page-plus audit found the port had wasted nearly $100 million in taxpayer funds on construction contracts from 2004 to 2007. In addition to violations of state law, Washington state auditor Brian Sonntag also found that port officials did not follow proper contract bidding procedures and in some cases allowed vendors to make decisions reserved for port officials. The audit also claims some port staff members impeded audit investigators and refused to certify the accuracy of the information that was provided. Sonntag also said that in some cases, records were altered before being turned over to his investigators.
   The audit's finding of more than 50 indications of fraud have also spurred a U.S. Justice Department criminal investigation and calls from members of the Washington state legislature for more oversight of the port.
   Yoshitani said in the past, capital projects oversight was fractured among various divisions, each with their own goals and guidance. The new division will provide a single system allowing the process to be standardized through the port, he said.
   The reorganization will consolidate more than 200 employees from various port divisions under the new Capital Development Division. The new division will also house the port's new Central Procurement officer.
   While the port has implemented dozens of recommendations made by the state in the audit, such as the creation of a central procurement officer, the creation of a new division within the port was not one of them.
   The port expects the new division to be operational by the middle of the year.