New day, old way of spending by Port of Seattle commissioners

It's supposed to be a new day at the Port of Seattle, with thrifty new ways of doing business.

That's what Port officials vowed, particularly new Commissioners Bill Bryant and Gael Tarleton, after a state audit blasted Port construction and spending practices.

But in April commissioners were asked to approve spending on six construction projects. And they agreed to every request, even though all six projects exceeded their original budgets.

Bryant and Tarleton maintain the Port is changing and, in the future, commissioners will show more restraint.

"Leftovers are a real problem," Tarleton said, noting that commissioners voted in April on projects started by their predecessors under oversight rules this commission is working to strengthen.

"I would encourage you to look forward at how we handle next year's budget and how we handle new projects. I'm guessing you'll see a difference," Bryant said.

Budget increases on the six projects range from $19,000 to $10.6 million; from 6 percent to 162 percent.

Commissioners would have been asked to greenlight a seventh project that was 44 percent over budget, but Chief Executive Tay Yoshitani withdrew the request because the briefing memo wasn't clear.

The projects are: new gangways for cruise ships; new electrical systems at Seattle-Tacoma International Airport; land for a new rental-car center near the airport; new airport trash-compacting and recycling equipment; security for a building demolition; and a new warehouse for storing airport equipment.

Under Port rules, some commission oversight of spending had been delegated to staff.

The state audit, released in December, also reported that staff had concealed spending details on some projects from commissioners.

"A lot of the things we're seeing are a result of decisions being made without regular updates" on budgets, said Tarleton, who is leading a committee seeking to bolster the commission's authority.

No questions

In the meantime, commissioners have approved some budget increases without asking a single question.

At their April 22 meeting, they unanimously voted to spend an additional $677,000 to buy land for the new rental-car center.

The original budget for land acquisition was $6 million; it had already increased to $15.7 million.

Commissioners dealt with the $677,000 appropriation — including a quick staff briefing and unanimous vote — in one minute and three seconds.

Commissioners say some of the April spending requests were expected and reasonable.

Planning on the rental-car center began 10 years ago and was delayed by fallout from the Sept. 11 attacks and for other reasons.

It's no surprise, Tarleton said, that land values have soared since then.

Bids come in low

The staff did report some good news on the rental-car project last month: Bids so far are $32 million below the Port's estimated construction cost.

Similarly, Port staff warned in January that a delay in buying recycling equipment could lead to higher costs. But at the time, commissioners said it was more important to put a hold on all construction projects until they were satisfied with the Port's response to the state audit.

"As I said then, the cost of not changing our culture would be much higher," Bryant said.

The commission lifted its construction moratorium in March. The recycling-equipment delay will cost taxpayers $86,000.

Some commissioners were unhappy with a $5.4 million request for new cruise-ship gangways, which will be paid back through a surcharge on passengers.

"That was a cost that should have been anticipated," Tarleton said.

That project will move cruise ships from Terminal 30, south of Safeco Field, to Terminal 91 near the Magnolia Bridge.

Terminal 30 will be converted to a cargo-ship facility.

"Financial albatross"

Tarleton said the $120 million project is proving to be a "financial albatross" but is necessary to increase cargo volumes at the Port.

Commissioner Lloyd Hara pointed out that much of the $16.5 million cruise-ship facility built at Terminal 30 just five years ago will be sold for scrap metal because the Port can't find another use for it.

Tarleton said she looks forward to the day when she isn't dealing with projects approved by a previous regime.

"I just don't know when the leftovers end for us because I don't know how many more are in the pipeline."

Bob Young: 206-464-2174 or byoung@seattletimes.com