Delegations of Responsibility and Authority
January 24, 2023
Agenda Item No. 10a_supp
Meeting Date: January 24, 2023
• 1.5 year scan of test data demonstrated the Port delegation system performed well
and as designed with clear guidance documents being followed by staff.
• Audit also identified an efficiency opportunity in comparison to regional agencies.
Port Audit Team Earlier Reviewed Port Delegation System
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AGENCY DELEGATION 5 YEAR CAPITAL BUDGET
King County No limit – within bi-annual budget $5 B
City Seattle No limit – within bi-annual budget $5.2 B
UW 15,000,000 $3.7 B
Sound Transit 5,000,000 $14 B*
Port of Seattle
300,000 $4.4 B^ plus SAMP in 10-year horizon
NWSA 300,000 $440 M
*Per Sound Transit Development Plan (2020-2025) from 2019 Annual Report, adopted by the Board of Directors on September 24, 2020
^ Per 2022 Port Plan of Finance.
83
94
72
24
12
47
25
23
8
9
19
17
6
5
$3,500
$1,000
0
$1,500
20
$2,000
$500
$3,000
$2,500
$4,000
$4,500
0
10
30
40
50
60
70
80
90
100
>10M7.5M-10M5M-7.5M0-1M 1M-2.5M 2.5M-5M
$3,700
$149
$230
$42
$95
$108
3 YEAR SCAN – Commission Efficiency Opportunity
332 monetary items of 664 items over 65 meetings
Commission Approval Actions
Delegations in ED Remarks
Public Session Necessary
$ Value of actions
25
23
Efficiency Opportunity:
80/20 Rule: Focus on the
Vital 20% for Commission
Action
Efficiency Opportunity
47
25
23
8
9
83
94
72
24
12
47
$3,500
70
$1,000
90
60
0
$500
$2,500
$1,500
$2,000
$3,000
$4,000
$4,500
0
10
20
30
40
100
50
80
2.5M-5M0-1M 1M-2.5M 5M-7.5M 7.5M-10M >10M
$5 Million Level
$3.7 Bil
$108
$42
$95
$149
$230
Commission Approval Actions
$ Value of actions
Raising ED Delegation Level from $300k to $5-10 mil increases efficiency
for Port operations, while allowing more commission time to focus on
policy, community impact, and high-cost programs
Recommend Options
$5, $7.5, or $10 mil
Delegation
47
Inflation Erosion upon Delegation Threshold
The delegation was last updated 13 years ago in 2009 from $200k to $300k
• Delegation buying power is down, while Port and its budgets are up. Situation is out of balance.
• Creates inefficiency and robs Commission and Leaders of valuable policy and strategy time.
• The new delegation provides: 1) efficiency, 2) transparency, 3) benefits for Commission,
Executive Director, and Business Partners
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Port Delegations 2009 2021 – Purchasing Power Percentage Decrease
All Delegations $300,000 $213,772 28.7%
Capital Delegations $300,000 $158,242 47.3%
Port Budgets 2009 Value 2022 Value Percentage Increase
Operating Revenue $486.4 million $766.9 million 36.6%
Expense Budget $277.9 million $499.1 million 44.3%
Capital 5-year forecast $1.123 billion $4.435 billion
74.6%
(not including
SAMP)
Budget 2021 Value Business Days/ Year
Average Spend per
Business Hour
Current Buying Power
of 2009 $300k
Delegation
Average Time ED
Can Run the Port
Expense $423.4M 261 $202,778 $213,772 63 Minutes
Capital $536.6M 261 $256,992 $158,242 37 Minutes
Illustrative View of Current ED $300k Delegation
Current Equivalent Time the ED Can Run the Port
What Would Current Delegation be if ED Could Run the Port for a Whole Day?
Budget 8 Hour Day Divide By Increase Factor Buying Power
Delegation Level
to Run 1 Day
Expense 480 Minutes 63 7.6x $213,772 $1.6M
Capital 480 Minutes 37 13x $158,242 $2.1M
$5 million Delegation will Allow Greater Effectiveness and Benefits for Commission and ED
Summary of Package of Amendments
(1) To strike ‘$10M’ and to insert ‘$5M’ in its place.
(2) To insert intent language into the Policy Directive – stating that in
all areas where the Commission has spoken through Resolution,
Policy Directive, or Order, and has expressed the clear intent to
have specific subject matter brought before them in public session
for action – those items will come to a Commission meeting
regardless of dollar amount associated with the item.
(3) Adding a new Section 3 to the Resolution providing for Executive
Director review of the processes and procedures at one year after
implementation; AND Internal Audit Review of adherence to the
delegation process within 4 years of passage of the resolution.
(4) Providing for Policy Directive Review by the Commission on a
periodic regular basis.
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Benefits for Commission to Raising Delegation Level
• Eliminates clogging calendar by low priority Commission Action Items.
• Allows added time for the many competing pressures upon Commissioners.
• Allows more focus time for Commissioners on high priority issues such as: policy, strategy, business,
community related items, workforce development, apprenticeship, WMBE and small business,
transportation, community and social issues, etc.
• Increases time for Commissioner Committee work and areas of interest.
• Allows time for more in-depth check-in briefings for ongoing initiatives.
Benefits for ED and Port Staff
• Allows ED’s budgeted priorities to receive more time and effort.
• Enables the ED, Executive Leaders, and Port employees to focus on the most vital issues.
• Century Agenda Goal to be Efficient Agency - Saves Time and Money
• 14,500 staff hours cost savings, or equivalent to 5-7 FTE’s that can be redeployed to higher value work
Benefits to Business Partners and Community
• Saves up to 8-10 weeks of processing to get work out to the marketplace for certain small and large
businesses and consultant partnerships
8
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Discussion
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