County audit levels criticism at rising Brightwater costs

Design costs on the Brightwater sewage-treatment plant have gone up $13.4 million, in part because of a poorly written contract, the King County Auditor's Office said Monday.

The auditor's report also said officials managing the most expensive project in county history had authorized changes to the contract without following county policies. But Brightwater Project Manager Christie True said the design of the treatment plant on Highway 9 in southern Snohomish County was modified in a successful effort to contain rising construction costs.

"We've experienced about $272 million in cost increases in the last two years," True said. "Seventy percent of that is commodity prices. It would have been worse by another $86 million if we had not worked on that last year."

Brightwater, scheduled to open in 2010, is expected to cost $1.75 billion — a number which, accounting for inflation, doesn't represent any overruns from the previous estimate of $1.62 billion in 2005 dollars, True said.

The county auditor's report made the following findings:

• "Inconsistent management of contract amendments" drove up design costs for the treatment plant.

• The design consultant, CH2M HILL, was authorized to do additional design work before contract amendments were negotiated and approved.

• Files documenting a number of contract changes "were empty or incomplete."

• The "lump sum" contract for final design of the plant lacked two standard cost-control provisions because of the county's "inexperience with the contracting method."

County Executive Ron Sims said in a written response to the audit that project managers had "responded appropriately and prudently" to rising cost pressures and permitting requirements that threatened to slow the project.

Sims acknowledged, however, that contract management "needs to be improved to ensure full compliance with policies and procedures." He said some procedures already have been changed.

On one key point, Sims and the Auditor's Office agreed: Some policies on contract changes are too cumbersome and need to be streamlined.

County Councilwoman Julia Patterson, D-SeaTac, objected to violations of policies.

"The bureaucracy can't pick and choose which policies they want to follow, and they can't decide unilaterally when it's OK to ignore policies," she said during council discussion Monday.

"I want to assure you that we do not ignore county policies or practices," Natural Resources and Parks Director Pam Bissonnette responded. But she said the design team couldn't stop work on the sewage plant while contract changes were negotiated: "In this project, time equals money."

Brightwater has weathered two legal challenges in the past month. The state Court of Appeals last week dismissed an appeal by the Sno-King Environmental Alliance, a group opposing the sewage plant.

Woodinville, which, like the alliance, is concerned about seismic fault lines on the site, last month dropped an appeal it had filed in the Court of Appeals, in favor of mediated discussion with King County officials.

Keith Ervin: 206-464-2105 or kervin@seattletimes.com