Governor Gregoire Signs Port Contracting Bill

Measure strengthens, clarifies complex construction contracts

Governor Christine Gregoire visited the Seattle waterfront today to sign legislation important to the state's ports: HB 3274, a bill that implements the State Auditor's recommendations for clarifying port contracting statutes.

HB 3274, sponsored by Representative Geoff Simpson (D-Auburn), enacts many of the legislative recommendations included in the State Auditor's performance audit of the Port of Seattle. The audit cited several areas of Washington contracting law that were not clear in their scope and authority; the legislation stipulates which projects fall under the purview of "public works" and which can be considered personal service contracts - a type of agreement that carries different competitive bidding requirements.

"The Commission is committed to greater transparency and accountability throughout the Port of Seattle and has pushed forward reforms on a number of fronts this year, particularly in our construction management activities," said Commission President John Creighton. "HB 3274 provides necessary clarity on how to approach the myriad types of projects and agreements that impact ports across the state. We are very grateful to Governor Gregoire and the members of the Legislature for the help and leadership they have provided."

The bill also requires the state's larger ports to maintain a publicly available database of all contracts, to be established by 2010. The Municipal Research Services Center, a state-funded organization that assists small municipalities in areas of regulation and compliance, will develop guidelines for port use of personal service contracts and will, in conjunction with the Washington Public Ports Association, provide training on those guidelines for all 75 of the state's public port districts.

"The Port has already made significant reforms in every area of our organization, and we support the changes enacted by HB 3274," said Port CEO Tay Yoshitani. "The legislation signed today provides clarity for a complex and difficult area of contracting law. I thank the Governor for her support and leadership."

The Port's Audit Response Action Plan is available on the organization's website. The comprehensive plan is updated twice monthly to reflect progress as it is made. View the plan here.

Port of Seattle transportation facilities support nearly 200,000 jobs in the Puget Sound region and generate more than $12 billion in business revenue and $626 million in state and local taxes annually.