Viva La Cola!

Founded in January 2009, PubliCola is a blog about Seattle written by journalists who are dedicated to non-partisan, original daily reporting that prioritizes a balanced approach to news. Started by longtime local editor and award-winning reporter Josh Feit, PubliCola is the first online-only news site in state history to get media credentials to cover the state capitol.

PubliCola was off and running. In June 2009, PubliCola hired another award-winning journalist, super-sourced Seattle city hall reporter Erica C. Barnett.

People were afraid that blogging would change journalism. Instead, we believe journalism can change blogging. Twenty-first century journalism may look and feel different, and yes Erica isn't afraid to get cranky, but we're committed to making sure online news still delivers independent, reliable, even-keeled coverage. And most of all, we're committed to making sure the coverage sparks honest civic debate.

Bringing you cola for the people, PubliCola is named after Publius Valerius PubliCola, the alias for the authors of the Federalist Papers—the original bloggers.

The first online-only news site in state history to get media credentials to cover the state capitol and Seattle city hall, PubliCola has been called a “must-read” by the Seattle Post Intelligencer and a hot “New Media Mover and Shaker” by Seattle Magazine—which also cited our own Erica C. Barnett as the city's No. 1 news nerd.

Both Unfortunate and Unnecessary

1. Olympic Security—the company that hired the three security guards who stood by as a 15-year-old girl was brutally beaten in the downtown transit tunnel in January—also provides the security for City Hall, where the mayor, city attorney, and city council members have their offices.

This week, King County Metro announced it would be directing Olympic guards to intervene in violent incidents when possible, a change from the company’s current standard of “observe and report.” It’s unclear whether city officials will be asking Olympic to change its security practices at City Hall as well.

2. We’ve been pretty hard on the Democrats in Olympia lately for bailing on a couple of bills—one in the House and one in the Senate—that tried to put restrictions on a bank’s ability to foreclose on homeowners. The stronger House bill, which would have put a temporary moratorium on banks’ ability to foreclose on unemployed people, was turned into a study.

House Judiciary Chair Jamie Pedersen (D-43), who ushered the bill through his committee (and gutted it),  got back to us yesterday to explain his side of the story. He said the technical problems with the bill—how does a bank know who’s unemployed? how long should the moratorium last?—became obvious during the public hearing, and so he sent the parties (big banks, credit unions and community banks, and consumer advocacy lefties) back to the drawing board to come up with a compromise.

But the compromise, Pedersen says, was problematic: The moratorium would apply to the big commercial banks (because they could withstand the losses), but it not to the credit unions and community banks (because they would be devastated). “What are we saying—that you lose if you got your loan from a credit union, but you’re rewarded for going to a big bank?” Pedersen asked rhetorically.

By moving the bill forward (even in its neutered form), Pedersen says he’s kept it alive so that if it passes and goes to the Senate, they might be able to revive the moratorium there. However, given that the Senate killed a weaker foreclosure reform bill—one that would have put a speed bump in the foreclosure process by setting up mediation first—it doesn’t seem likely.

3. City Council member Sally Clark wrote a supportive letter last week to the folks behind WorkingSeattle, a web site created by city employees whose jobs are threatened by Mayor Mike McGinn’s announcement that he would eliminate 200 strategic advisor and “senior-level management” positions—positions he characterized, during his campaign and his announcement, as “political appointees” by his predecessor Greg Nickels.

In the letter, Clark said she was “in agreement” with the group’s primary complaint, that McGinn had “target[ed] strategic advisors without much regard for what they do for the City, or how well they do it” and used senior city employees as “the punch line of [his] campaign speech.”McGinn has since put the planned layoffs “on pause” until the midyear budget reconciliation process.

McGinn’s announcement, Clark continued, had “demoralized hundreds of people who come to work for the public every day wanting to do a good job. The past month of stress has been both unfortunate and unnecessary.”

4. The text message of the week also came from Clark. In response to a phone call seeking information about finance director Dwight Dively’s then-rumored departure from the city Wednesday night, Clark wrote, “Sorry I missed your call. I’m around this morning. Don’t have Ph.D, if that’s the question”—a snarky reference to former McGinn senior advisor Chris Bushnell, who resigned last week after admitting he had falsely claimed to have a doctorate in economics.

5. It was a Republican, state Sen. Curtis King (R-14), who offered the two amendments to the education reform bill yesterday afternoon in Olympia that Democratic President Barack Obama and his poster boy for reform, Secretary of Education Arne Duncan, would have liked best.

King’s amendments directed the state school superintendent’s office—rather than each school district—to establish a uniform evaluation system for teachers, including the use of “comparable and objective” data on student achievement.

The feds are currently awarding “Race to the Top” grants to states who get in line with Duncan’s reform agenda, which demands the type of consistent and measurable teacher evaluation standards that King’s amendments outlined.

The bill, which already included other “Race to the Top” prerequisites—like allowing alternative routes to teacher certification and direct means of dealing with failing schools—passed 41-5. But King’s amendments failed.

“It will definitely jeopardize our chance,” Shannon Campion, State Director of Stand for Children, a Portland-based national education reform group, said after the vote, referring to the $250 million in “Race to the Top” money that could come Washington state’s way.

Duncan aid Brad Jupp echoed this theme when he visited Olympia earlier in the session.

6. Josh will be on KING-5′s “Up Front” this Sunday (on KING and its affiliates, KONG and NW Cable News) to talk about the latest news from Olympia.

Today’s Morning Fizz is sponsored by:




  • http://twitter.com/fattailed fattailed

    What is with the 43rd District Democrats being so desperately in love with banks? Murray and Pedersen both, it seems.
    .
    Pedersen's issues are utter BS. Seems to me banks could pretty easily know who's unemployed because they're collecting unemployment insurance. And the moratorium could last as long as they're collecting unemployment insurance. Upon getting a new job, there's clearly a new opportunity to restructure a loan. And if benefits run out, the person is clearly not staying in the home anyway. It's a very elegant way to provide assistance when it could be most beneficial.
    .
    These don't seem like hard problems — unless, that is, you identify yourself with bankers' interests. And they sure don't seem like “technical” problems. What they sound like is exactly the BS that opponents spout in hearings to try to raise as much dust around the process as possible.
    .
    Finally, sending opponents to figure out a “compromise” is absurd. Why would the banks give anything at all in this context when they have the Democratic party so firmly in hand?
    .
    So glad the 43rd district elected a corporate lawyer. His perspectives sure match his district.

  • http://twitter.com/fattailed fattailed

    And by the way, if the credit unions and so-called “community banks” say they would be “devastated” by a foreclosure moratorium, they sound like they're on pretty damn shaky ground already. Not having a moratorium doesn't mean they're getting paid, after all. And I see no reason to protect these folks from the consequences of their apparently unsound banking practices & speculation, whether the headquarters of the speculators was in Tacoma, Seattle, New York, or North Carolina.

  • joshuadf

    They are on shaky ground. FDIC took over Evergreen (one of the commuity banks) just last month, with more takeovers probable.

  • ratcityreprobate

    In six months Clark and the rest of the Council will be approving a budget that eliminates those jobs. She is just grandstanding for high-fives now.

  • gloomy gus

    It's important to remember that community banks and credit unions are exposed to a much lesser extent than the national banks to bad home loans. Community banks (and to some degree credit unions) are failing thanks to their astronomical exposure te awful commercial and construction loans. During the boom, our small guys wanted to join the easy-money gold rush, but couldn't match the “if you have a pulse, you get a home loan” strategy of the nationals; they turned to commercial and construction: “if you have 'LLC' in your name, you get a loan”.

    They're terrified of getting swallowed whole for pennies on the dollar by the nationals if the foreclosure moratorium were to push their balance sheets over the brink in the eyes of the FDIC. Whether a moratorium is likely to hit them that hard or not is something our state banking regulators might know.

  • morning fizzy

    Unfortunately we will lose far too many line workers while the planners will remain. Parks, shelters, libraries, pot hole repair, etc. will be curtailed – maybe a levy lift will be put on the ballot to pay police and fire.

  • Michael M.

    Well, had there been a top-two primary back when he was first elected, Pedersen very well may have lost.

    That aside, there has to be limits to a foreclosure moratorium, and you can't have a bill that only affects some banks, while allowing others a pass.

    I happen to know someone who has a mortgage, was laid off, and has been unemployed for nearly 18 months. Would you have the bank just take a hit that entire time?

    The reality is that he tightened his belt, made his payments, and that is that. Purchasing homes you cannot afford comes with a consequence when you really can't afford it. Yes, banks encouraged this sub-prime lending. But consumers are the ones who made the choice on these massive purchases.

    I'm not saying I don't support a moratorium, mind you, but 3-6 months, and including all banks, would have to be part of the bill, and this bill never had both.

  • Michael M.

    Will there be layoffs in the next round of budgeting? Sure. Will it be slash and burn cuts aimed at a specific employee classification? No. Will it be focused on positions that are not paid out of the general fund? No. Will the Council work with the departments prior to making bold statements about people losing jobs? Yes. Will they be grandstanding while they're doing that? No.

  • morning fizzy

    How does it work for seniority if there is specific funding? Are new workers exempt from layoffs if they are paid out of dedicated source?

    If people are laid off and their funding came from a dedicated source I'm thinking that another worker currently paid out of the general fund will take over that position. If it is not the case that seniority still will be used with non-general funded positions, please provide a cite.

  • Michael M.

    If someone works in City Light and there is a push to cut funding to save the general fund, I would imagine so. However, I don't pretend to understand that much detail about the contracts and how things work at the City.

  • http://twitter.com/fattailed fattailed

    As I understand it, the bill was tied to unemployment benefits (or should have been). Therefore there is a built-in limit, and one that varies with the extremity of the economic situation, since benefits are available for longer when unemployment is higher.
    .
    I agree that it's unfair to have a bill that makes some banks pay and others skate by free. But I'm pretty sure Pedersen is the one who carved out this exception in the first place, and now he's saying it's not fair. More than a little disingenuous.

  • hans

    The media have missed the real story on the tunnel beating…the reason the security guards aren't able to intervene is the KC sheriff union doesn't want them honing in on their turf and insisted on this language in the security companies contract with KC.

    Not surprising that today the KC sheriffs office is in damage control mode and putting officers in all the tunnel stations.

  • http://twitter.com/fattailed fattailed

    Thank you gloomy gus for actually accurately describing how so-called community banks operated during the bubble. These were not good actors either, and don't deserve any special treatment based on who issued their charter.

  • Michael M.

    Even tying them in with UI benefits isn't fair. 3-6 months, max. While it's easy to decry banks as these big, evil behemoths (which isn't helped by their bonus structure), forcing them to do nothing while something they technically own is inhabited by someone who refuses to pay…would you support a moratorium on eviction if a renter lost their job, for as long as that renter was unemployed?

    I'm just saying that I agree that the original was too broad on the length side, the second one not broad enough of the bank side, and a study sucks primarily because we won't see any further action for another year.

    Specifically to your issue with who we elect in the 43rd – we can only elect who runs, who is qualified, and who does the work necessary to secure votes and raise money. I happen to like our delegation, but at the same time, I have yet to see anyone start to come up as any sort of alternative.

  • Good Grief

    This is an excellent point — those security guards, whether or not they “wanted” to intervene, probably would have been fired if they really got in the mix. Not to mention that they probably would have been sued by the families of some of these upstanding youths if they hadn't treated everyone gently enough.

  • http://twitter.com/fattailed fattailed

    I appreciate your sentiments, but in the end, I'm just not convinced that a bank's property rights to a deed of trust should trump decency in this or any other case. And worth noting that the bank doing the servicing and the foreclosing is not necessarily the owner at all. Often these days, the final owner of a given mortgage is Fannie Mae, Freddie Mac, or the Federal Reserve. All supposedly run in the public interest.

    And for the record, I *would* support an eviction moratorium for unemployed renters. The more we treat housing as a basic right, the less profitable it will be, surely — and the better off we'll all be. Except for the campaign treasuries of the 43rd district dems, apparently.

  • ratcityreprobate

    You are dreaming if you think most if not all of the 200 will not be gone in the next budget. They and more and yes many unionized line workers will unfortunately lose their jobs. The Council will have to make very difficult choices. You are correct though that they won't be granstanding then, they will be hiding.

  • Michael M.

    To be clear, these are my opinions, and are not meant to be representative of the District. If you pull PDC reports, however, you'll see that the District does not get donations from banks (or very much from the elected officials, for that matter).

    Ultimately, it's clear you and I have a fundamental difference of opinion, and I highly doubt we would agree on this. :-)

  • dltooley

    Ms. Clark should realize that she and her former boss, Tina Podlodowski have done quite a bit to reinvent the cycle of abuse in the professionalism of the Corporate City of Seattle.

    The law is the law and that abusive 'person' needs to be treated just like the rest of us – foreclosed out of their homes and stripped of unemployment benefits.

    The law is the law, right?

  • Transit Guy

    The “security” guards (quotes here because they weren't providing any security) could've at least stood between the victim and her attacker.

    On the tape there are 2 or 3 opportunities where they could've done this, but instead they just stood aside and let the pummeling go on.

    Even within their restrictive (and neutering) work rules, they could've done more than they did.

  • http://curlyqnessa.blogspot.com/ vancasavant

    @fattailed As the vice chair for communications of the 43rd District Democrats, I just want to make clear there should be a distinction between our organization and the district at large. To this date, the 43rd District Democrats, as an organization, has not passed a resolution to support or oppose this bill. As with most Democratic organizations, the views of our members and executive board cover a wide spectrum of beliefs. Until a resolution is brought to the floor and voted on in regards to this bill, or any other legislation dealing with financial institutions, it would be unfair to say that we are “desperately in love with banks.”

  • http://www.google.com/profiles/106207652321616246395 Joey

    Just got my house refinanced and heard an interesting fact. I'll admit this is hearsay and I am not going to put in the effort to research it but our loan agent at Group Health Credit Union (GHCU) told us that during the foreclosure boom of the last few years, they foreclosed on exactly 1 property. In the one instance of foreclosure, the property owner came by and dropped off the keys on their own initiative. No letter of foreclosure was ever sent.

    How is this possible? I was informed as I signed my loan documents that they have an extensive loan deferral program as needed. They never sell my loan, they never need to close my loan. So they view me as a person and view their investment as more than just random numbers.

    And that is why I went with a credit union. Sounds to me like the big banks could learn a lot.

  • http://twitter.com/fattailed fattailed

    Fair point. How about:

    '”The elected representatives of the 43rd district serving in the State Legislature can fairly be described as “desperately in love with banks.”

  • Fat Michael

    I'm thinkin' that 'fat tailed' and 'Michael M' ought to start their won point-counterpoint website and stop boring the rest of us to tears.

  • MisterGomez

    At least go, “Hey, stop that!” You'd be surprised how well that might work, especially coming from a guy in uniform.

  • Sarajane46th

    Ironic that at the same time we've seen articles about small female police officers who have “talked” 6-foot violent criminals into jail. the Olympic “security” guards weren't properly managed or trained. Too bad it took a violent incident to realize that “observe and report” would never work because of the delay. What's sad is the guards' obvious uninvolved attitude. Outsourcing these jobs at less than a living wage is a real problem. Caring comes with professionalism and decent pay.

  • http://michaelmaddux.blogspot.com/ Michael M.

    I will bore you to tears if I damned well feel it a necessity!