Showing posts with label Washington State Auditor’s Office. Show all posts
Showing posts with label Washington State Auditor’s Office. Show all posts

Friday, February 10, 2017

Port of Seattle Strengthens Code of Conduct

By Mark Edward Nero

In a unanimous vote, the Port of Seattle Commission on Feb. 7 approved a motion strengthening the transparency and accountability elements in the port’s Code of Ethics and Workplace Conduct.

The Commission amended the code of conduct to require that any changes to the code be made in consultation with the Port of Seattle Commission.

The Commission amended the “Exceptions to $50 Limit on Gifts” to its pre-April 2015 status by eliminating an exception for the cost of admission to a performance or event where attendance by the senior manager is related to the performance of official duties.

The Commission also added an accountability measure. When potential conflicts of interest, reported concerns, or alleged violations of the Port’s Workplace Responsibility policies pertain to the CEO, the Port shall report those matters to the President of the Commission. The President of the Commission shall have the discretion to refer such matters to an outside party.

The changes were made in the wake of the resignation of former port head Ted Fick, who resigned Feb. 1, about two-and-a-half years into a three-year contract.

His resignation came the same day that Washington State Auditor’s Office publicly disclosed that it has challenged a one-time payment that the Port of Seattle made to about 640 exempt employees in December 2015 at Fick’s behest, saying that the lump-sum $4.7 million in one-time retention bonuses, which was approved in December 2015, was illegal since it wasn’t tied to merit or performance goals.

The Port Commission responded to the Auditor’s Office findings on Feb. 7, releasing a statement declaring that the port had “a legitimate business rationale” for making the payment, and that it was appropriate as a business need, due in part to concerns raised by employees after Seattle joined with the Port of Tacoma to form the Northwest Seaport Alliance joint maritime operating agreement.

“In response to employee concerns, the port determined that a one-time payment, versus more costly permanent wage increases, was the best option to achieve our business rationale of retaining our highly-skilled and experienced workforce while limiting the financial impact,” the port stated.

Tuesday, February 7, 2017

Seattle Port Payments Challenged by State Auditor

By Mark Edward Nero

The Washington State Auditor’s Office has challenged a one-time payment that the Port of Seattle made to exempt employees in December 2015 at the behest of recently-resigned CEO Ted Fick.

The Port Commission authorized the payment to address widespread negative reactions following a series of large-scale organizational changes, moving to a common performance review date and increasing the standard work week from 37.5 hours to 40 hours.

The Auditor’s Office revealed its finding during a regularly scheduled accountability audit on Feb. 1. The audit is still in progress.

“We believe that the one-time payment achieved the intended effect of supporting employee retention and addressing employee concerns,” Port Commission President Tom Albro said in a statement provided to Pacific Maritime Magazine Online. “We have conveyed to the State Auditor’s Office our belief that the port has a strong legal basis for taking this action.”

“We respect the State Auditor’s Office’s process and accountability to the public, and are working collaboratively with them to expedite completion and public release of the audit with all of the facts and circumstances and the port’s full response.,” Albro said.

Albro also addressed the recent administrative leave and subsequent resignation of ex-port CEO Tom Fick, who departed the port Feb. 1.

Albro said the Port Commission had raised multiple personnel issues with Fick during a recent performance review, but that he wasn’t placed on administrative leave as a result of the audit.

The performance review, an electronic version of which was provided to Pacific Maritime, praised his leadership in some areas, but gave him low marks in the areas of CEO-Port Commission relations and integrity.

In the review, one of the five commissioners said that Fick “needs to internalize that leading a public agency is living in a fish bowl,” and another commented on Fick’s April 2016 arrest on charges of driving under the influence.

“The Commission is not as concerned as much as Ted’s DUI as it was about his thinking on how to deal with the issue… It took a lot of Commission effort to convince him that he needed to tell his staff and make a public statement right away,” the unidentified Commissioner said.