by Mike Sharkey
Staff Writer
The combination of an internal review and overhaul and recommendations from the City Council Auditor’s Office should assure that many of the bad businesses practices associated with how the Jacksonville Port Authority administers its dredging contracts –– and inevitable change orders — never happen again.
Earlier this year, City Council member Lad Daniels asked the Auditor’s Office to look into the administration of contracts related to the Port’s maintenance dredging contracts from Oct. 1, 2005 through Sept. 30 of this year. During the audit, 13 dredging contracts executed by the Port Authority since it was split from the Jacksonville Aviation Authority by the Florida Legislature Oct. 31, 2001 were examined. What the audit found — and an internal investigation by the Port confirmed — was a series of change orders and other contractual issues that may have cost the Port hundreds of thousands of dollars or more over the years. Some of those change orders, the audit determined, should have been denied and deemed part of the original contract.
For example, the audit found that three of five change orders approved for a maintenance dredging contract with Sea Tech should have been denied because the work was within the framework of the original contract between the Port and Sea Tech. Those change order cost the Port $592,246. Overall, the audit reported seven findings and three internal weakness controls. The biggest recommendation from the Auditor’s Office was a suggested change in leadership of the Port’s Engineering Services division.
That has happened.
“Before the audit, we did an internal review of our budget and we came to a lot of the same conclusions and made many changes over the summer,” said Port spokesman Robert Peek. “The audit affirmed that we were on the right track.
“We consolidated the engineering and procurement office under the same department. It’s now Contract Administration, Procurement and Engineering Services and its new director is Maurice Joyce. He has been here a few years and held different roles.”
Peek also said the Port has a more active role with the City’s Office of General Counsel, which now has an office at the Port’s administration building and the attorney’s legal opinion will be sought much more often regarding contract language and stipulations.
“In the past, the staff would make those interpretations,” said Peek.
The audit also recommended requiring approval from the Port Authority’s board of directors for every change order. The Port disagreed with this suggestion and has since implemented an internal committee review of all change orders that ultimately require the approval of Rick Ferrin, the Port’s executive director.
Peek said the findings in the audit were not a surprise and were taken as constructive criticism as much as anything.
“We appreciated the audit and review,” he said. “You can always find room for improvement. Fortunately, we were able to address the issues quickly. Based on the internal review and audit report, we were able to make changes. Now, we have a batter process than before.”
In response to one recommendation, the Port formed its own Professional Services Evaluation Committee. All change orders — regardless of their monetary amount — will have to go before this committee.
“That is brand new to us,” said Peek.