SEATTLE – The Port of Seattle fired back on late Friday on allegations surrounding $4.7 million in potentially unlawful payments to public employees, and that it has something to do with now former CEO Ted Fick's resignation.
In a hastily arranged press availability, Port Commission President Tom Albro emphatically said "the audit has nothing to do with CEO Fick's (original) suspension,” adding, "the audit and the personnel issue are completely separate.”
Related: CEO suspension
The Washington state Auditor's Office had earlier confirmed the payments.
The news, first reported by the Puget Sound Business Journal, came a day after Port CEO Ted Fick abruptly resigned. He had been on paid administrative leave for a "personnel issue."
But Albro explained, the payments were a one-time deal, authorized because several employees were converting from a 37-hour work week, to a 40-hour work week.
"We believe it was constitutional when we did it – and did it all in public session – and we did it because we believe it was the right thing for taxpayers and employees,” Albro said.
Then, Albro and his colleagues handed out Fick's previously confidential 2016 CEO evaluation. It cites multiple issues the commissioners, and port executives had with Fick, including:
- How he handled discussion about Terminal 46 and the SODO arena debate
- His 2016 DUI, which some executives believed he showed little remorse
- A raise he gave himself of nearly $25,000.
- A series of free sporting event tickets he accepted, including Mariners seats from King County Councilman Pete Von Reichbauer, Mariners President Kevin Mather, and Mariners then-CEO Howard Lincoln
- A sexual harassment complaint
Related: Addendum to performance review
Kathleen Cooper, a spokesperson for the auditor's office, says the irregularities came up in a routine audit of the port, something that is done hundreds of times a year for municipalities and public entities across the region. However, an investigator noted that port commissioners had approved Fick's recommendation to spend the money, paid out to 642 known salaried employees – roughly one-third of Port of Seattle employees.
Cooper says the payments are potentially a violation of the state constitution as "unlawful gifting." Article II, Section 25 prohibits extra compensation to any public officer, agent, servant, or contractor. Article VIII prohibits the gifting of public funds.
Cooper says the payments were not tied to any bonus or merit raise. She added that the port does have a chance to respond before any final report is issued and that their response is expected quickly. Albro believes the port will respond by Monday.
Port of Seattle commissioners accepted the resignation of Fick Thursday. Chief Operating Officer Dave Soike will serve as interim CEO.
Fick is a Tacoma native. He worked a family-owned foundry, Paccar, and Polar Corp.
He was brought on during a tumultuous time for maritime operations and oversaw the merger with the Port of Tacoma to create the Northwest SeaPort Alliance. His initial salary was $350,000 a year.
At the time of his hire in 2014, Port of Seattle Commissioner Courtney Gregoire hailed Fick as someone with proven success. She told the Tacoma News Tribune Fick was successful in "guiding large organizations through changing competitive landscapes, expertise in manufacturing and logistics, understanding the pressures on those companies, how to support them, how to grow them, how to help them export around the globe and how that supports family-wage jobs right here at home."
Former State Attorney General Rob McKenna said it's unlikely that there could be legal fallout or charges as a result of the audit.
Albro says he's confident the commission has done everything correctly.
"I believe my hands are clean,” he said. “I'll own up to my decision I made to make the one-time payment, and I'll leave up to other to decide, you know, what to make of it."
