Category: City Hall

City Hall, homelessness, human services, Mayor Durkan

Another Durkan Shakeup Adds to Long List of Departments Without Permanent Directors

Mayor Jenny Durkan announced yet another departmental shakeup at the city today, moving longtime Finance and Administrative Services department director Fred Podesta over to the Human Services Department to head up an expanded Navigation Team. The Navigation Team—a joint effort between HSD, outreach workers from REACH/Evergreen Treatment Services, and the police department— oversees the removal of unauthorized homeless encampments and provides outreach services and referrals to people living in encampments.

As head of FAS, Podesta was in charge of coordinating the team responsible for outreach and garbage removal at unauthorized encampments, so moving him to the Navigation Team isn’t as out of left field as it might appear. (The Nav Team’s transition to HSD was approved, in fact, as part of last year’s budget).  It does, however, look very much like a demotion for the city veteran, who will now report to new deputy director Tiffany Washington, under interim director Jason Johnson. This latest reshuffle also leaves another city department without a permanent director at a time when an unusually high number of city departments lack permanent leadership, and when the mayor’s own policy shop is short-staffed.

Some of this goes with the territory of working in a job where the person at the top changes every four to eight years. Every mayor makes his or her mark on the city by changing out departmental leadership, reorganizing some departments, and generally shaking things up. That’s the mayor’s prerogative, and it can serve as a vital corrective to entrenched bureaucracy and government waste. What is unusual in this particular administration is the number of significant departments that lack permanent leadership more than eight months into the mayor’s term.

Here’s a list of some of the departments that currently have interim directors or that are being headed up by deputies:

• Seattle City Light. After former City Light CEO Larry Weis resigned last year, Durkan appointed chief compliance officer Jim Baggs to take his place as interim director while the administration conducted a national search. In February, Durkan announced the formation of a search committee to hire Weis’ replacement. Her office has made no further announcements about how the search is going. Meanwhile, City Light is losing another top administrator, as Chief of Staff Calvin Goings (who, like Podesta, is by all accounts well-liked at the city) moves over to replace Podesta as interim director of FAS.

• Seattle Office for Civil Rights. Former SOCR director Patricia Lally left her position as head of SOCR in December, shortly after Durkan took office. Since then, the office has been headed up by interim director Mariko Lockhart.

Support

 

• The Office of Economic Development, which has been headed by Rebecca Lovell  on an acting basis since last December.

• The Human Services Department, which has been headed by former deputy director Jason Johnson since May (his promotion, from deputy director, was announced in March). Today’s announcement about Podesta also included the news that Tiffany Washington—appointed as a division director in charge of homelessness strategy by Durkan earlier this year—will step into the deputy director position.

• The Department of Neighborhoods. Durkan removed Kathy Nyland from her position as director of DON in April and appointed former Greg Nickels aide Andres Mantilla as interim. Nyland, who had a target on her back because of her reputation as a change agent at DON, was moved into a position advising the parks department on neighborhood outreach.

• The Seattle Parks Department. Jesus Aguirre left the department last November, shortly after Durkan’s election, and was replaced by acting director Christopher Williams in January “as a search process for a permanent head begins.” Seven months later, Williams remains acting director at Parks.

• Human Resources. After Susan Coskey stepped down last December, Durkan appointed an interim director, Melissa Beatty, who has since left and been replaced by another interim, Susan McNab.

• Information Technology. Former Chief Technology Officer Michael Mattmiller was cut loose by the Durkan Administration last December, and replaced by acting director Tracye Cantrell in February, when Durkan also announced plans to  “launch a search process to find a candidate for the permanent position.” Cantrell is still in the position.

• Seattle Department of Transportation. I reported last week that Goran Sparrman, who has served as interim director since Durkan sacked former director Scott Kubly last December, is preparing to leave SDOT to take a job at HNTB Corporation, a big transportation engineering firm, at the end of August. He will be reportedly be replaced by another interim director.

And, of course, Seattle has not had permanent police chief since the departure of former chief Kathleen O’Toole, announced last December.

 

City Council, City Hall, Diversity, Equity, housing, King County, Mayor Durkan, Morning Crank, race, Transportation

Morning Crank: Mariners Giveaway, Bike Lanes Downtown, and Public Land for Housing People
Image via Wikimedia Commons; photo by Cacophony

1. King County Council member Jeanne Kohl-Welles withdrew her support yesterday from legislation that would dedicate up to $190 million in proceeds from the county’s hotel/motel tax to Safeco Field, proposing an amendment that would instead direct almost all of that money to affordable housing instead. The Mariners are demanding the upgrades as a condition of signing a new 25-year lease on the stadium.

King County Executive Dow Constantine has insisted that the hotel/motel tax proceeds must be spent on purposes related to tourism, including improvements to the stadium, but the legislation that authorized the tax actually does not limit the percentage of proceeds that can be spent on affordable housing, nor does it require that any money be spent on tourism at all. Instead, the law says that at least 37.5 percent of the hotel/motel tax must be spent on arts and affordable housing, respectively, and that whatever money remains after that can be spent on tourism. Kohl-Welles’ proposal would increase the affordable housing expenditure to 52.5 percent, leaving about $25 million for stadium improvements.

One thing worth noting as this debate plays out: Mariners owner John Stanton, a billionaire telecom executive who has given hundreds of thousands of dollars to the Republican Party and conservative causes, maxed out to just one candidate in the 2017 primary and general elections. That candidate? Dow Constantine.

Support

2. The city council passed a resolution Monday urging the Seattle Department of Transportation (i.e. Mayor Jenny Durkan) to complete the downtown bike network, after interim SDOT director Goran Sparrman informed the council that the city planned to delay the construction of a long-promised protected bike lane on Fourth Avenue downtown for three years while construction projects downtown (including the demolition of the Alaskan Way Viaduct and the construction of a new Washington State convention center) reduce the number of lanes available to car commuters.

Mariners owner John Stanton, a billionaire telecom executive who has given hundreds of thousands of dollars to the Republican Party and conservative causes, maxed out to just one candidate in the 2017 primary and general elections. That candidate? Dow Constantine.

Council member Teresa Mosqueda, just home from a trip to Minneapolis where she met with members of the bike equity group Tamales y Bicycletas, added language to the legislation emphasizing the importance of creating safe bike routes for low-income people, communities of color, and women. The resolution now says that although the Center City bike network itself is located downtown, “connecting routes to surrounding neighborhoods, and between neighborhoods, particularly in historically neglected communities with higher needs of safety improvements for pedestrians and cyclists, must be a focus for the city in making connections with the Center City Bike Network.” The verbiage, along with language about the city’s historical disinvestment in low-income communities and communities of color, serves as another rebuke to unsupported claims that bike lanes “displace the underprivileged” and kill minority-owned businesses in neighborhoods like Wedgwood, in north Seattle.

But will the resolution matter? SDOT is already trying to dampen expectations that the downtown bike lane network will be built within 18 months, as the council resolution demands. And the agency is still figuring out the details of its planned  “reset” of the $290 million Move Seattle levy in response to higher-than-anticipated construction costs and lower-than-expected (or entirely absent) federal funds for Seattle projects. Late last month, council transportation committee chair Mike O’Brien told me that “there’s nothing we see right now [in the resolution] that’s a deal breaker,” but added that he hadn’t heard much from the Durkan Administration about whether they planned to move forward on the council’s recommendations, which include new bike lanes from 8th Avenue in Belltown down to 12th Avenue South in the International District. “My sense is they are still getting up to speed on a lot of things,” O’Brien said. “I think the bike capacity in Mayor Durkan’s brain has been spent on the Burke-Gilman trail [completion] and 35th” Ave NE, where anti-bike activists are fighting a bike lane and road restructure. “I don’t know that there’s a ton that has been done on this.”

3. The council also adopted legislation that I wrote about a couple of weeks ago, giving Seattle City Light the ability to sell its properties to nonprofit housing developers who agree to build housing affordable to people making less than 80 percent of Seattle’s median income. Currently, the city requires property owned by its electric utility to be sold at fair-market value, thanks to a 2003 ruling striking down a fee City Light imposed to install and maintain streetlights. However, a bill passed by the state legislature last year, House Bill 2382, gives state and local agencies the right to transfer land to affordable housing developers at little or no cost, giving the city new ammunition if it faces a legal challenge the first time the legislation is tested.

If you enjoy the work I do here at The C Is for Crank, please consider becoming a sustaining supporter of the site or making a one-time contribution! For just $5, $10, or $20 a month (or whatever you can give), you can help keep this site going, and help me continue to dedicate the many hours it takes to bring you stories like this one every week. This site is funded entirely by contributions from readers, which pay for the time I put into reporting and writing for this blog and on social media, as well as reporting-related and office expenses. Thank you for reading, and I’m truly grateful for your support.

City Council, City Hall, criminal justice, Drugs, homelessness, land use, Mayor Durkan, Morning Crank, Transit, Transportation

Late Morning Crank: New Homelessness Policies and New Streetcar Claims

1. Update: The mayor’s office says they have been briefing council members on the four elements of its homelessness strategy (spending and accountability, crisis response/creating safer spaces, regional coordination, and affordable housing) but is not rolling out any major new policies. Mayoral spokeswoman Stephanie Formas says rumors around ramped-up enforcement could be related to the previously announced additional $500,000 the city plans to spend on its Navigation Teams. As for the idea that the city plans to implement involuntary commitment to detox for addicted people who decline assistance from Navigation Team members, Formas pointed to a letter to the co-chairs of the One Table task force signed by the mayors of Auburn, Renton, Kent, Bellevue, and Kirkland suggesting that the leaders of the regional initiative (which has been dormant for months but is meeting again next week), should consider “involuntary treatment for those presenting an imminent likelihood of serious harm to self or others, or who are gravely disabled as a result of substance use disorder” and who refuse to go to treatment. Should this become an element of the One Table implementation strategy, it would mean forcing people into short-term detox, which has not been shown to be effective for treating severe addiction.

Original item: Mayor Jenny Durkan’s office has reportedly been briefing city council members on a new policy related to homelessness that, rumor has it, involves more strenuous enforcement of the city’s anti-trespassing and no-camping laws. Conversations with folks on the second floor and advocates working on homelessness-related issues indicate that the new policy could involve involuntary commitments for people suffering from addiction under Ricky’s Law, which allows adults to beheld for up to 17 days in “secure withdrawal management and stabilization facilities,” AKA secure detox, if they are available; since the state and King County would ultimately be responsible for actually funding detox beds, this could be a way of putting pressure on the county for ramping up detox funding. Currently, there are only a few dozen detox beds available in all of King County, including a recently opened facility on Beacon Hill that filled an existing gap in care left by the closure of Recovery Centers of King County; that facility has 32 beds for patients needing detox. Formas said they would be “doing some action items on homelessness and affordability next week.”

So far, according to council log-in sheets, the mayor’s office has met with council public safety committee chair Lorena Gonzalez, council president Bruce Harrell (both yesterday), and council members Mike O’Brien  and Sally Bagshaw (this morning). I will update as I learn more.

2. I reported last week on the Freedom Foundation’s lawsuit challenging a tiny house village” encampment in South Lake Union on the grounds that it violates state environmental rules. One thing I didn’t discuss in detail is the fact that the reason the city has been able to authorize so many tiny house villages—seven, at the moment, or four more than are allowed under a city ordinance limiting the total number of authorized encampments to three—is that each of the new authorized camps has been approved on a rolling conditional basis under what’s known as a “type 1 permit.” Such permits, which must be renewed every four weeks, are meant for temporary uses such as temporary fire and police station relocations or farmers’ markets, as well as any other temporary use that’s meant to last four weeks or less. Type 1 permits can be approved administratively, meaning that they don’t have to go through a lengthy public hearing process or the usual environmental review. (The Freedom Foundation’s lawsuit challenges this premise, and also argues that temporary encampments should be Type 2 decisions, which require more process and are more involved.)

Support

This struck me as a peculiar way of permitting encampments, given that the city has decided as a matter of policy and law that only three encampments should be allowed citywide. I’m no lawyer, but it also seems like an area where the city could be legally vulnerable—if the city wants to allow more than three encampments, then why not do so through the legislative process, by changing the law, instead of using this workaround? The city attorney’s office had no comment on the legal ramifications of using Type 1 four-week permits to allow tiny house villages.  Wendy Shark, a spokeswoman for the city’s Department of Construction and Inspections, says temporary permits are only for “encampments that are also in the process of applying for the 6-month temporary use permit.  In every case, encampments needing temporary use permits are applying for the 6-month permit or will soon apply.  Since the 6-month permit is a ‘Type II’ application involving public notice and opportunity to appeal to the City’s Hearing Examiner, the Type I four-week permit is a means to establish an encampment in the short term while the longer public process occurs.”

However, since city law currently restricts the total number of longer-term encampments to three, Shark adds that “legislation will be needed to change the current number of interim use encampments that are permitted.”

3. Local transportation Twitter was buzzing this week over a couple of articles about Seattle projects aimed at improving mobility for cyclists, pedestrians, and transit riders. I covered the first, a Crosscut editorial claiming that bike lanes are only for rich white people,  on Wednesday. The second, an article by Times reporter David Gutman, repeated claims from Mayor Jenny Durkan’s office that the delayed downtown streetcar may be too bulky, and use the wrong track gauge, to connect to the existing South Lake Union and First Hill lines. I reported on the same claims in a brief item Wednesday morning, noting that if the claims turned out to be true, it would represent a significant embarrassment for the city along the lines of the time when Sound Transit had to go in and remove tracks installed by King County Metro in the downtown transit tunnel because they were the wrong size for light rail.

Yesterday, however, transit advocates began to dispute the mayor’s claims, and Gutman’s story, pointing out that both of the two types of streetcar bodies that would run along the connected line use the same standard gauge (1435-millimeter) track, and that the difference in the car widths is relatively trivial. The new cars, built by CAF USA, would be about ten feet longer than existing streetcars, which were manufactured by Inekon. The print and current online editions of Gutman’s story include context about the likely actual size of the vehicles and the fact that the gauge of the tracks is compatible with both cars, contrary to what Durkan implied in her statement, which suggested that the city does not even know if “the new vehicles [are] compatible with the current track gauge.”

However, the story that the  Times initially ran online did not include any of that information. After it went up, both FOX News and local conservative radio host Dori Monson latched on to what FOX calls the “streetcar fiasco,” which FOX described, in typical FOX fashion, as the latest setback for a left-wing mayor trying to raise her national profile with “fervent attacks against the Trump administration over immigration, climate change and abortion.”  Monson, meanwhile, suggested that former SDOT director Scott Kubly “should be in prison” and that former King County executive Ron Sims is a fake “man of God” who is destined for hell.

When I asked mayoral spokeswoman Stephanie Formas about the mayor’s statement Tuesday night, she said, “we do know that the cars are heavier, wider, and longer than the current cars, but engineers are looking at all the facts in the context of these cars running on the full system.” On Wednesday, Formas followed up with more details, acknowledging that the tracks are technically compatible with the new cars and that the new vehicles are actually slightly narrower than the existing streetcars, but adding that “evaluation of the existing conditions related to track gauge is necessary to provide accurate data to CAF so that they can account for these differences in the design of the track and wheel profile for the CAF vehicle.”

In addition to concerns about whether the new streetcars would fit into the existing maintenance barn, Formas said that the “dynamic envelope” of the streetcar, which includes both width and length, raised concerns about the vehicles “hit[ting] other elements in the ROW, such as trees, signage, curbs, and poles as they travel along the track.” The streetcar will be still about six inches narrower than a typical King County Metro bus, which are eight and a half feet wide (compared to eight feet, .038 inches for the new streetcars and eight feet, .085 inches for the existing ones.)

City Council, City Hall, Mayor Durkan, Morning Crank, Transit, Transportation

Morning Crank: Another Interim Head for SDOT, More Streetcar Fallout, A Victory for Burke-Gilman Trail Advocates, and “Tolling to Make Congestion Worse.”

KCSC_decision

1. The Seattle Department of Transportation (SDOT) has been headed up by an interim director, Goran Sparrman, for nearly seven months, since controversial director Scott Kubly left the position last December, a month after Jenny Durkan was sworn in as mayor. Durkan extended Sparrman’s tenure as interim SDOT chief by two months at the end of May, when the SDOT director publicly announced that he planned to leave at the end of August. At the time, Durkan’s office announced a national search to replace him, and put out a call for input from the public on what they would like to see in the next SDOT director.

Sparrman will reportedly be taking a job with the HNTB Corporation, a consulting firm that has a large contract to do the engineering work on Sound Transit’s Ballard to West Seattle light rail line and also has numerous open contracts with the city of Seattle.

Sparrman’s departure date is rapidly approaching, and Durkan has not announced his replacement, nor, apparently, does she plan to any time soon. Instead, The C Is for Crank has learned, will announce yet another interim director—reportedly Genessee Adkins, SDOT’s current chief of staff—and put off hiring a permanent director until this winter, possibly as late as January, according to sources close to the department. The ongoing lack of permanent leadership at the embattled agency, which is dealing with fallout from cost overruns on the delayed downtown streetcar as well as a vocal backlash from bike and pedestrian advocates over Durkan and Sparrman’s decision to delay implementation of the long-planned Fourth Avenue protected bike lane until 2021, has reportedly damaged morale at the agency and contributed to a sense of an agency in turmoil. Compounding the lack of leadership at the top is the fact that all four of SDOT’s deputy directors are also serving on an interim basis, as is the current chief of staff (Adkins is currently on leave), creating an org chart headed up almost entirely by people serving on an impermanent or contingent basis. (The org chart itself, unusually for a Seattle city agency, only includes the names of the seven people at the very top, followed by the general functions each of those people oversee.)

Sparrman will reportedly be taking a job with the HNTB Corporation, a consulting firm that has a large contract to do the engineering work on Sound Transit’s Ballard to West Seattle light rail line and also has numerous open contracts with the city of Seattle. Sparrman reportedly accepted his new private-sector position several months ago. I asked Durkan’s office whether it was a conflict of interest for Sparrman to be negotiating on behalf of SDOT with agencies that could soon be his clients. Her spokeswoman, Stephanie Formas, responded by referring me to the city’s ethics rules regarding former employees, which restrict current employees’ ability to be involved in their future employers’ “dealings with the city,” and restrict former employees’ ability to participate in certain activities, like bidding for contracts, for the first year or two after they leave the city, depending on the activity.

 

Support

 

2. Mayor Durkan issued an “update on the Center City Connector” yesterday that confirmed some of what city council member Lisa Herbold was talking about a full five days ago (when I was on vacation; sorry!): The vehicles the city ordered for the indefinitely postponed First Avenue Streetcar are wider and longer than the existing South Lake Union and First Avenue streetcars, suggesting that they may not be compatible with the existing systems the Center City Connector is supposed to connect.

Durkan, to the consternation of some transit advocates, has been lukewarm on the proposed downtown streetcar ever since initial operations cost estimates turned out to be off by as much as 50 percent and the cost to build the system ballooned by tens of millions. A long-awaited independent financial analysis of the project has been delayed because, according to today’s statement from the mayor’s office, the review “was much more complex than initially expected.” One question that could be deal-breaking is whether the new, larger vehicles are even compatible with the gauge of the existing streetcar lines, which run from Pioneer Square to First Hill and from Westlake to South Lake Union.

Formas, the mayor’s spokeswoman, says that it’s possible the lines will still be able to connect—the existing streetcars, for example, are built to slightly different specifications but can still run on each others’ tracks—but the episode brings to mind what happened with the downtown transit tunnel, whose original train tracks, installed almost as an afterthought in 1993, had to be torn out and replaced in the mid-2000s, resulting in additional costs of more than $45 million.

“We shouldn’t be tolling that and making our city streets free. We should be doing it the other way around. We should say, ‘Look if you want to drive [past downtown], take the tunnel, but if you come downtown, we’re going to charge you.”

3. Advocates for completing the long-delayed “missing link” of the Burke-Gilman multi-use trail in Ballard won a small victory last week, when a King County Superior Court judge dismissed a complaint by the Ballard Coalition, a group of businesses that opposes the completion of the trail as proposed by “missing link” advocates, charging that the city hearing examiner who approved the final environmental statement for the project had a conflict of interest. The Coalition argued, essentially, that because then-deputy commissioner Ryan Vancil was up for a promotion when he determined in January that the city’s environmental analysis of the project, which took five years and cost $2.5 million to complete, was adequate. The decision was a significant victory for trail advocates.

In its complaint, the business coalition argued that Vancil violated the appearance of fairness doctrine, which requires public officials to conduct business in a way that appears fair, by applying for and obtaining a promotion from deputy hearing examiner to chief hearing examiner while the city of Seattle had a case in front of him—specifically, the “long-running [Burke-Gilman] dispute.” In his ruling rejecting that argument, Judge Samuel Chung noted that if he were to assume that anyone who applied for a promotion within the hearing examiner’s office was biased in favor of the city, it “would impose a presumption that would taint all virtually all decision making by that body. Every hearing examiner is presumed to be fair and impartial, and an advancement within that office under these facts do not form a basis for an appearance of fairness violation.”

4. Deadlines prevented me from giving my full attention to a resolution the city council passed last week vowing to build out as much of the planned downtown bike network as possible while the Fourth Avenue protected bike lane remains in limbo, but I didn’t want to let one comment from council member Mike O’Brien, who sponsored the resolution, slip by. O’Brien made the remark while we were discussing the “period of maximum constraint” between now and roughly 2021, when construction projects and the closure of the downtown bus tunnel and the demolition of the Alaskan Way Viaduct are expected to jam traffic downtown.

O’Brien, who opposed the Alaskan Way tunnel project, pointed out that everyone who now uses the viaduct to get to points downtown will drive instead on surface streets, and even people going through downtown will use surface streets to avoid the tunnel, contributing to traffic jams during the “period of maximum constraint” from roughly now until 2021, when construction and demolition projects are expected to make downtown traffic worse than at any time in recent history. The day before we talked, O’Brien said, the Washington State Transportation Commission had approved tunnel tolls ranging from $1 to $2.25. “We shouldn’t be tolling that and making our city streets free,” O’Brien told me. “We should be doing it the other way around. We should say, ‘Look if you want to drive [past downtown], take the tunnel, but if you come downtown, we’re going to charge you.” Instead, O’Brien said, Seattle is going to have “anti-congestion pricing—pricing to make congestion worse.”

If you enjoy the work I do here at The C Is for Crank, please consider becoming a sustaining supporter of the site or making a one-time contribution! For just $5, $10, or $20 a month (or whatever you can give), you can help keep this site going, and help me continue to dedicate the many hours it takes to bring you stories like this one every week. This site is funded entirely by contributions from readers, which pay for the time I put into reporting and writing for this blog and on social media, as well as reporting-related and office expenses. Thank you for reading, and I’m truly grateful for your support.

Business, City Council, City Hall, homelessness, Mayor Durkan, Taxes

So Much for Compromise: Amazon-Backed Business Coalition Invests Big to Kill Head Tax

Remember when, just a couple of weeks ago, Amazon held the whole city hostage by halting plans to build one 17-story tower and threatening to sublease space it had planned to rent in another? The issue was the size of the proposed head tax to fund housing and services for some of the thousands of people living homeless in Seattle: A majority of the city council wanted the tax to be $500 per employee on every business with gross revenues of more than $20 million a year (Amazon plus nearly 600 other companies); Amazon said it couldn’t go a cent higher than $250. Over a weekend of frenzied negotiations, in which Mayor Jenny Durkan reportedly served as the conduit between Amazon and the city council, that five-member majority evaporated, and on Monday, the council voted unanimously to approve the $275 tax that Amazon supposedly wanted. Amazon resumed construction, everybody breathed a sigh of relief, and the council prepared for the next battle—a debate over how to spend the money, about $47 million a year, that the hard-won head tax would generate.

Fast forward a couple of weeks, and it looks like Durkan—and the council—were in over their heads. Amazon may still be building in Seattle, but they have one foot out the door, and last week, they made their first pledge—$25,000—to the “No Tax On Jobs” referendum campaign. The campaign enjoys the backing of not just other corporate behemoths (Kroger, Starbucks, Centurylink) but a who’s who of local developers, hotel industry players, and maritime and industrial businesses. So far, the anti-tax campaign has brought in more than $352,000 in financial pledges—and that doesn’t count the free labor the companies’ anti-tax messaging has received from regular citizens who are mad at the city’s response to homelessness, who are cheerfully gathering signatures at farmers’ markets and community meetings around the city. (The dubious connection between a tax on the largest corporations and ordinary taxpayers is that if companies like Amazon are required to pay additional taxes, they will leave the city, taking all those high-paying jobs with them. The irony that many of the people who are freaked out by this scenario are the same people who stridently oppose the increased traffic and population density that all those “jobs” produce appears to be lost on many head tax proponents.)

It’s hardly surprising that Amazon is looking out for its bottom line. What is a bit surprising is that Durkan seems to have believed that her half-measure “compromise,” which was focused on Amazon and not the rest of Seattle’s politically active business community, would quell a rebellion. When former mayor Ed Murray (who resigned in disgrace after allegations that he sexually abused minors decades ago) wanted to make sure that the $15 minimum wage proposal would stick, he created an unprecedented business- and labor-led advisory committee that included representatives from the Seattle Hospitality Association, the Chamber of Commerce, and local businesses like Ivar’s and Nucor Steel along with labor and social-justice groups. Over five months, that group hammered out a deal that phased the $15 minimum wage in slowly, over seven years, with extra concessions for the small businesses that would be most impacted by the increase. By next year, workers at all but the smallest businesses in Seattle will be making a minimum of $15 an hour.

Four years ago, Seattle Hospitality Group founder Howard Wright stood beside the mayor for a photo op as he signed the legislation making $15 the law of the land. This week, he donated $25,000 to the effort to kill the head tax.

Maybe compromise is harder than it looks.

If you enjoy the work I do here at The C Is for Crank, please consider becoming a sustaining supporter of the site or making a one-time contribution! For just $5, $10, or $20 a month (or whatever you can give), you can help keep this site going, and help me continue to dedicate the many hours it takes to bring you stories like this one every week. This site is funded entirely by contributions from readers, which pay for the time I put into reporting and writing for this blog and on social media, as well as reporting-related and office expenses. Thank you for reading, and I’m truly grateful for your support.

Addiction, Affordability, City Council, City Hall, homelessness, housing, human services, King County, legislature, Mayor Durkan, Poverty, Taxes

Controversial Head Tax Passes After Weeks of Bruising Debate

After a weekend of negotiations between city council members and Mayor Jenny Durkan (and, according to council president Bruce Harrell, “conversations with Amazon, big business, small business, [and] homeless advocates”) the city council unanimously approved a new version of the controversial employee hours tax today, imposing a $275-per-employee tax on about 585 businesses with gross receipts of more than $20 million a year.  The $275 figure was a  “compromise” between the $500 tax passed out of committee last week by a slim majority of council members and the $250 tax proposed by Harrell and Durkan, which emphasized short-term shelter and garbage cleanup over permanent housing, and would have built just 250 new units of housing over five years. Durkan had threatened to veto the larger tax proposal, and as several council members noted on the dais this afternoon, the council majority was unable to convince one of their colleagues (such as council member Rob Johnson) to switch sides and give them a veto-proof majority. The $500 head tax proposal was the result of months of work by the city’s progressive revenue task force, which was appointed after a last year’s budget process and charged with coming up with a proposal to tax businesses to pay for homeless services and affordable housing. (Johnson, who was seen as a potential swing vote, cited the need for a process like the one the task force went through in voting against an early head tax proposal last year.) The task force issued their report in March.

The tax, which sunsets after five years (and which will no longer be replaced, as in previous versions of the legislation, with a business payroll tax), would raise about $47 million a year for new housing, rental subsidies, and supportive services. According to the spending plan the council also adopted this afternoon, that would be enough to build about 591 units of housing—288 for low-income people making between 30 and 60 percent of Seattle’s area median income and 303 permanent supportive housing units for formerly homeless people making between 0 and 30 percent of median. (The full spending plan is available here.) The plan also includes rental subsidies to get homeless people into “immediate housing,” funding for a total of about 250 new shelter beds and authorized encampments, more parking lots for people living in their cars, and sanitation facilities. The adopted spending plan, which allocates about two-thirds of the head tax revenues to housing, reverses the priorities in the spending plan proposed last week by Mayor Jenny Durkan and council president Bruce Harrell, which would have spent 70 percent of the revenues from the head tax in years 1 and 2 (and 60 percent in years 3 through 5) on short-term emergency shelter, garbage cleanup, and a new Navigation Team to coordinate the removal of unauthorized encampments and the people in them.

Prior to their vote for the tax, several council members expressed regret that they failed to come up with a compromise that could convince at least one of their colleagues to join them in a veto-proof majority in favor of a larger tax, such as the $350 compromise council member Lisa Herbold floated Friday. Council member Lorena Gonzalez, who was one of the co-chairs, along with Herbold, on the progressive revenue task force, said, “While I’m excited that we will be taking this vote… to reestablish a head tax… it’s regrettable that we were unable to find a path amongst our colleagues and with the mayor that they would be willing to support a higher taxation rate than $275.” Council member Mike O’Brien, who recently weathered hours of verbal abuse at an out-of-control forum on the head tax in Ballard, sounded grim as he conceded, “I’m settling for this level of service.”

Business leaders continued to grumble about the tax. The Downtown Seattle Association issued a statement decrying the tax as “bad economic policy [that] will negatively impact Seattle’s economy and city tax revenues,” and Amazon said in a statement that the “tax on jobs” makes the company “very apprehensive about the future created by the council’s hostile approach and rhetoric toward larger businesses, which forces us to question our growth here.”

The next battle for homeless advocates at city hall will be over the spending plan for the tax—a component of the plan that is in many ways more critical than the amount of money the tax produces. Durkan’s proposed spending plan, with its emphasis on emergency shelter, encampment removals, and tiny houses, would have largely backfilled spending on programs for which funding is about to run out (the plan contained a $15 million-$16 million annual line item to “continu[e] programs which had one-time funding in the 2018 budget, or insufficient funding, plus unspecified “new emergency, temporary, and enhanced shelters, navigation centers… and/or service and safe parking for vehicular living”), reducing the impact of the new revenues to whatever is left over once all the programs that are running out of money are funded. Although the council adopted the spending plan, that vote was narrow (5-4, along the same lines as Friday’s vote) and the actual implementation plan will have to be proposed by Durkan and adopted by the council as part of this year’s budget process.

Before the vote, council member Teresa Mosqueda said the new revenues from the head tax “are supposed to be in addition to” existing spending, not a replacement for it. Asked specifically about this concern at a press conference after the vote, Durkan pivoted to talking about the need to examine the council’s proposed spending plan itself, which she said would fund “a number of programs, such as shelter and supportive housing,” for which long-term funding is not secure. She did not answer the question about whether she would push for a spending plan that used new dollars to pay for existing funding commitments.

The insistence on funding existing shelter beds, from some of the four-member council minority as well as Mayor Durkan, is somewhat ironic. After all, it was the city council itself (with then-mayor Tim Burgess’ support) who adopted a spending plan for homeless service providers last year that eliminated funding for many basic shelters, on the grounds that they failed to demonstrate that they could move their clients into permanent housing quickly. The new standards for shelter providers, for example, withhold funding if those shelters fail to move 40 percent of their clients into housing within three months, a standard that few emergency shelters can meet, particularly those serving the clients who are hardest to house.

The emphasis in the Durkan/Harrell plan on funding shelters rather than housing also flies in the face of what virtually every expert, from the city’s homelessness consultant Barb Poppe to the city’s Human Services Department to a Seattle Metropolitan Chamber of Commerce-commissioned report to former All Home King County director Mark Putnam, which is that a solution to homelessness requires getting people into housing, not tents and “tiny houses” (which Putnam recently referred to as “glorified garden sheds.”) Asked why she supported a split that favored spending on shelters over housing, Durkan responded, “because I think the people of Seattle think that we’ve got to make a difference in homelessness tomorrow. We need to get  people off the streets and get them a safe place to live. None of this housing will come online for years.”

Mosqueda told me before the vote that she was “not interested” in a spending plan that funds temporary shelter “that evicts people in five years and fails to build the housing we need.” The problem in Seattle, Mosqueda argued, is not so much lack of mats on the floor as a lack of affordable housing, and providing more temporary shelter beds is only a “Band-Aid” that fails to address the larger affordability problem at the root of Seattle’s inability to move people from shelter to housing. In a memo released earlier today, Mosqueda staffer Michael Maddux wrote that in the Durkan/Harrell plan, “There does not seem to be increased capacity in funding to support short-term enhanced shelter, and with the draconian cuts to the housing component, no plan appears in place to provide permanent housing for people moved into the few new beds created (about 1,000) by the Mayor’s plan.”

One thing everyone on both sides agreed on is that homelessness is a regional, not a Seattle-only, problem. “Seattle can’t go it alone,” Durkan said during her press conference. “This is a regional crisis that demands a regional response.” That quote might have been lifted verbatim from any other number of press conferences by any number of Seattle officials, past or present. Seattle officials routinely implore “the region,” usually meaning King County, to step up and pay their fair share to address every challenging problem, whether it’s inadequate transit or inadequate funds for housing.  Whether that additional funding will materialize is uncertain. Durkan announced this morning that the state has come up with an additional $40 million for behavioral health services in 2018, and $18 million to $20 million a year after that, and that King County has said it will provide the city with $5.7 million to expand shelter and “safe alternatives for people living outdoors” in 2018. Little is currently known about what strings are attached to this funding or how it can be spent.

Beyond the $5.7 million announced this morning, the county has been parsimonious with its funding to address the crisis. (It did adopt a resolution today declaring May 14-20 “Affordable Housing Week” in King County,  “all county residents” are encouraged “to embrace affordable housing opportunities in their communities.”) Last week, King County Executive Dow Constantine suggested last week that the city needs to slow down and work on a regional approach through the massive “One Table” task force, which began meeting back in January. One Table was supposed to have finished up its meetings and announced its recommendations for a regional approach to addressing homelessness by now; instead, they have canceled their past two meetings and have been very quiet since April. One Table may ultimately come back with a recommendation for a countywide levy, or a sales tax to pay for housing and services (two of the only options available to local governments in Washington State), or it may not. Either way, Seattle is moving forward with what is at least an attempt to address the crisis of homelessness within its borders. Whether the scaled-back proposal adopted today makes a perceptible, measurable dent in homelessness, or whether it merely provides more fodder for anti-tax activists who insist that the city is wasting its money because the problem isn’t getting any better, will be clear soon enough.

If you enjoy the work I do here at The C Is for Crank, please consider becoming a sustaining supporter of the site or making a one-time contribution! For just $5, $10, or $20 a month (or whatever you can give), you can help keep this site going, and help me continue to dedicate the many hours it takes to bring you stories like this one every week. This site is funded entirely by contributions from readers, which pay for the time I put into reporting and writing for this blog and on social media, as well as reporting-related and office expenses. Thank you for reading, and I’m truly grateful for your support.