Tag: streetcar

Midyear Budget Proposal Adds Funding for Streetcar Study, Police Overtime—and $19 Million for Unanticipated Lawsuit Payouts

By Erica C. Barnett

The city council got a first look at a proposed mid-year budget package that would fund a graffiti cleanup team that Harrell recently rolled out as part of his Downtown Activation Plan; add funding to revive the delayed downtown streetcar connector; increase SPD overtime spending to pay for downtown emphasis patrols, expanded online crime reports, and public disclosure officers; and put an additional $19 million into a fund that pays out for lawsuits and claims against the city, many of them the result of alleged police misconduct.

Every year, the city council has to adjust the budget to reflect new priorities, as well as what the city has actually spent so far that year, in a midyear supplemental budget that’s often hundreds of pages long.

The council denied Harrell’s request to nearly double what the city spends on graffiti removal last year, increasing annual graffiti cleanup spending to almost $4 million. According to council staff, Harrell’s office reversed their decision by using unspent funds from Seattle Public Utilities public hygiene budget, including pump-outs for trailers that provide showers for unsheltered people, to fully the graffiti cleanup crews. Harrell announced the new spending earlier this month as part of his Downtown Activation Plan. Because the city has already executed the contracts, a council staffer explained Wednesday, the council now has little choice but to fund the expanded graffiti program.

To fund other Downtown Activation Plan programs, a central staff memo notes, Harrell has proposed using the JumpStart fund, which includes funding earmarked for small businesses. Ironically, it was the Downtown Seattle Association, along with the Seattle Metro Chamber and other business groups, that proposed temporarily suspending the JumpStart tax—which only applies to the city’s largest businesses—earlier this year.

The memo outlines all the other proposed midyear budget adjustments, which also include $1 million “a delivery assessment of the Center City Cultural Connector”—as the proposed downtown streetcar was recently rebranded—”to determine if the design needs to be updated to reflect the intent of the project.”

“My original idea was, just lift the proviso and let them spend the salary savings on emergent needs,” Councilmember Sara Nelson said Wednesday, adding that the funding limitation “prohibit[s] the uses of salary savings on on expenses that are really important right now for the for Seattle Police Department.”

The council will also have to approve a $19 million increase to the city’s judgment and claims fund—including $14 million from the city’s planning reserves fund and $5 million from insurance—to pay for “higher than anticipated expenses” from lawsuits against the city. A spokesperson for the city’s budget office told PubliCola the city “cannot accurately predict how much money will be spent if the request is approved,” and said the city may not end up using all the money.

Still, the allocation represents a significant increase to the fund, which the city already expanded by $11 million in the 2023 budget last year, when it increased the fund from $30 million to $41 million “to pay for extraordinary settlements against the City.” Last year, lawsuits against the police department accounted for almost half of the $36 million the city spent on settlements, defense attorneys, and other litigation-related expenses, according to a report released in April.

The midyear budget also releases some funding to SPD to pay for improvements to the department’s online reporting system and unbudgeted overtime expenses the department has already made, along with position authority for four new public disclosure officers. Currently, SPD has to get council approval to spend funding allocated to vacant positions, including sworn officer positions the department is unable to fill, on unrelated purposes.

Although the spending SPD is requesting is fairly limited—about $815,000—budget chair Teresa Mosqueda noted that whenever the city creates new SPD positions—on top of the hundreds of vacant positions that are included in the budget every year—”it compounds our increased costs year over year,” because the new positions become an additional SPD expense in future budget years.

“If there [are] positions that are vacant, that the department intends to hold vacant, that are no longer needed or are not part of the near term planning, it is okay to abrogate positions in order to put funding into other priorities,” Mosqueda said.

Councilmember Sara Nelson, who argued vehemently against restrictions on SPD’s spending authority last year, said another way to solve the annual funding problem would be to just allow SPD to spend salary savings on whatever they want. “My original idea was, just lift the proviso and let them spend the salary savings on emergent needs,” Nelson said Wednesday, adding that the funding limitation “prohibit[s] the uses of salary savings on on expenses that are really important right now for the for Seattle Police Department.” (In fact, it just requires the council to approve those expenses.)

Immediately after suggesting the council has made it too hard for the department to spend salary savings however it wants, Nelson spent 15 minutes questioning a $50,000 expenditure on a “living hotel” pilot that would create sustainable development standards for new hotels. Currently, the city has no way of endorsing or verifying that a hotel that calls itself “green” is actually adhering to green standards such as limiting water usage.

Suggesting that Mosqueda, who proposed the expenditure, was dropping the idea on the council out of the blue, Nelson said, “You make it sound like there’s a lot of talk going on between departments, but I’m the vice chair of the sustainability and renters rights committee, I’m on land use, I’m the chair of City Light, and  the first time I’ve heard about this policy is through some of those form emails coming in.”

“I appreciate that you might know a lot about it,” Nelson continued. “Again, talking about money, that transparency in budgeting ,and making sure that when we allocate money, it’s actually getting spent. So is it premature to be funding this work, given those factors?”

No one took the bait on the glaring contradiction between supporting a blank check for police and scrutinizing a tiny expense for the environment, but Councilmember Lisa Herbold did chime in on behalf of Mosqueda’s add, noting that “it’s really important to guard against greenwashing” by companies operating in the city.

As the central staff memo notes, Harrell’s Downtown Activation Plan includes a special land use change for a proposed hotel in Belltown that will not have to adhere to any green standards, and would extend master use permits for existing downtown hotels, prolonging their exemptions from current environmental rules.

New SDOT Director Talks Scooters, Streetcar, and Sweeps; A Closer Look at City Grant to Social Club Harrell Headed

New SDOT director Greg Spotts
New SDOT director Greg Spotts

1. Greg Spotts, the newly confirmed director of Seattle’s transportation department, spoke with reporters Wednesday on a wide range of topics, including scooters, the proposed downtown streetcar connector, and his plan to do a “top to bottom review” of the city’s Vision Zero effort to end traffic deaths and serious injuries by 2030, which is currently far off track.

Spotts, who previously headed up StreetsLA, a division of Los Angeles’ Bureau of Street Services, said he was currently agnostic on both the appropriate number of scooters the city should permit and the debate over whether to revive work on the downtown streetcar, which former mayor Jenny Durkan paused during her term. As Spotts noted, scooter sharing proliferated in LA after the city decided to allow any qualified company to operate in the city, but didn’t really serve low-income areas or communities of color.

“What it produced was an overabundance of scooters in the obvious places where there’s a lot of density and a lot of money, and … very few scooters in communities of color,” Spotts said. Even with incentives for placing scooters in underserved areas, they continued to cluster in wealthy, tourist-heavy neighborhoods like Santa Monica, Hollywood, and downtown LA. “So it’s not obvious how to make this public private partnership to produce all the public goods that you want, but maybe we’re in the very, very early stages of figuring that out.”

Similarly, Spotts said he might support expanding the streetcar if there’s evidence it will improve the economic climate in the areas it serves. The new downtown section of streetcar would create a loop connecting two separate streetcar lines, connecting South Lake Union to Pioneer Square to Capitol Hill. All three areas are already connected by frequent transit, which—along with low ridership on the existing streetcar—raises questions about whether a new streetcar segment would justify its cost, currently estimated at almost $300 million.

“There’s operational benefits, right? Instead of running two segments, running one big one,” Spotts said. “But what would push it over the top, I think, is it analysis that it could be an important catalyst for our small businesses in downtown, for our tourist economy, for our cultural institutions.”

One issue Spotts declined to address is SDOT’s role in removing homeless encampments from sidewalks; SDOT staffers (including some currently vacant positions) make up more than half the members of Mayor Bruce Harrell’s Unified Care Team, a group of about 70 staffers who removes encampment. (The UCT also includes six members of the city’s HOPE team, which does outreach and makes shelter offers prior to sweeps).

“At this early stage, I’m really deferring to the mayor’s office to utilize the departments as they want to for the larger policies that they’re pursuing,” Spotts said. “And I’m not looking to introduce some personal opinions into that. I’m just here to here to assist in whatever way they want us to assist.”

2. After we reported on the fact that the city awarded nearly $800,000 to a private men’s social club that Mayor Bruce Harrell chaired until late last year, we took another look at the record to see if there was any precedent for the city awarding Equitable Development Initiative dollars to any similar institution.

Over the five years the city has been making EDI awards, about three dozen organizations have received significant grants from the fund. Many of the groups that have received multiple grants are engaged in low-income housing development, create community spaces that are open to the public, or provide social or health services to particular communities.

For example, the Friends of Little Saigon, Africatown, the Rainier Valley Midwives, Chief Seattle Club, and the Ethiopian Community in Seattle have all received multiple EDI awards over the past five years. Other grant recipients in past years include Cham Refugees Community, the Somali Health Board, United Indians of All Tribes, and the Filipino Community of Seattle.

A few of the grant recipients provide cultural space and put on events that are open to the ticket-buying public, including Black and Tan Hall and the Wing Luke Museum. None is a private social club—except the Royal Esquire Club.

It’s unclear whether the Royal Esquire Club has sought public funding from the city in the past; we’ve requested a list of all previous EDI grant applicants through a public records request. The club, which was at the center of another controversy involving Harrell while he was City Council president, has never received an EDI award in the program’s history; the $782,000 the club will receive is more than twice its annual revenues for 2019, according to the group’s most recent tax filing.

Bike Board Member Asks for Encampment Ban Near Bike Lanes, Poll Tests Streetcar Popularity; Council Clarifies “Z-Disposition” for 911 Calls

1. Seattle Bicycle Advisory Board member Dr. Doug Migden wrote to Mayor Bruce Harrell’s office earlier this year to complain about the homeless people he sees while riding his bike, and to suggest legislation that would ban people from sleeping within up to 200 feet of any bike facility or sidewalk.

“First, I voted for Mr. Harrell and the primary reason is that crime and encampment related filth in Seattle is now totally unacceptable,” Migden’s letter begins. “I have lived on the north end of Queen Anne, in a house I own, since 1997. Unfortunately I’ve never seen Seattle in such a mess.”

Council member Alex Pedersen installed Migden on the bike board earlier this year, rejecting a different nominee the board identified through a months-long recruitment and nomination process. The bike board advocates for and advises the city on policies to make Seattle safer and more welcoming to cyclists from all backgrounds, including low-income and homeless people.

Given that “bicycle commuters in West Seattle can’t even safely get to downtown because of encampments and illegal activity such as IV drug use on or adjacent to bicycle pathways,” Migden continued in his letter, “how about a policy whereby nobody can camp on public sidewalks, on bicycle paths, or within 100 or 200 feet of such public spaces. This is not too much to ask and it’s certainly doable. Enforcement would be needed though. Perhaps more police officers on bicycles would help with this and other crime related issues in Seattle.”

“How about a policy whereby nobody can camp on public sidewalks, on bicycle paths, or within 100 or 200 feet of such public spaces.  Enforcement would be needed though. Perhaps more police officers on bicycles would help with this and other crime related issues in Seattle.” —Seattle Bicycle Advisory Board member Doug Migden

Yes, Migden wrote, it’s important to “take care of” truly “vulnerable populations,” but a lot of the homeless people he sees around are able-bodied men who “are not mentally ill,” are “in no distress,” and are well-off enough to “indulge” in cell phones. “[S]tratification and picking apart which illegal campers truly need assistance and which ones are basically freeloading off of responsible citizens who pay taxes etc., is crucial,” Migden wrote.

The mayor’s office, in a standardized response, told Migden they would forward the information about the encampments he reported (including “disgusting RVs” in Fremont and Ballard) to the city’s encampment cleanup squad.

2. A recent poll tested voters’ opinions about completing the long-delayed downtown Seattle streetcar project, along with various local funding options, such as increasing the commercial parking tax, increasing the local vehicle licensing fee, and increasing local sales taxes, already among the highest in the country.

The poll, conducted last week, seems to favor streetcar completion—stating, for example, that federal funding could cut the $350 million estimated cost of the streetcar almost in half, but is only available for a limited time. (Federal funding for the streetcar is far from certain, although, as the Urbanist pointed out earlier this year, a potential $75 million request for federal funding still gets a “high” rating from the Federal Transit Administration.)

“Connecting Seattle’s two existing streetcar lines just makes sense,” one of the poll’s test messages begins. (Many polls test messages that could be used for or against a proposal or person during a future campaign.) “This project will link our busiest transportation hubs serving people coming downtown by bus, light rail, ferry, Sounder, and Amtrak train creating a more seamless and convenient transportation system.”

Former mayor Jenny Durkan paused work on the downtown streetcar connection in 2018, citing cost overruns. Before and since then, streetcar skeptics have argued that the downtown line is redundant with existing bus and light rail service and would not serve enough riders to justify the ballooning cost. Last year, the city council gave the long-moribund streetcar a kickstart by providing $2.4 million in funding to resume work on the project.

It’s unclear who’s behind the poll; local political consultants, transit advocates, business groups, and streetcar proponents all told PubliCola it wasn’t them.

3. During an update on the city’s efforts to established an alternative response system for 911 calls that don’t require an armed response, city council public safety committee attempted to clarify an issue that recently confounded a prominent local columnist: The so-called “Z disposition” the Seattle Police Department gives to certain low-priority calls.

Previously, committee chair Lisa Herbold noted, dispatchers would routinely put the 911 system into “priority call status,” meaning that calls that didn’t rank in SPD’s top two “priority” designations (which include violent crimes and crimes in progress) would not get any response at all. Now, an officer reviews lower-priority calls before deciding whether they merit a response before dismissing them. “In my mind, that’s that’s a better approach, because at least you’re having somebody on the ground with law enforcement expertise making that decision,” Herbold said.

In April, she added, the city’s Office of Police Accountability recommended establishing a clearer system for assigning low-priority calls, in response to a high-profile complaint about two officers who ate breakfast near the Ballard library rather than responding immediately to a call about a person asleep inside their car.

Councilmember Sara Nelson said that in her view, the new system is actually worse, because under “priority call status,” police would at least tell low-priority callers to call back or give them a general estimate of when they might hear back about their call. “There is a customer service issue going on with the call with the system right now with no communication and that’s why people are getting upset,” Nelson said.

Efforts to replace police with civilian responders for some 911 calls remain largely stalled, and the Seattle Police Officers Guild has demanded to bargain any changes to the SPD-centric 911 response system.

Council Amendments Would Stall Downtown Streetcar, Preserve Laurelhurst Community Center, and Defund Salvation Army Shelter

Laurelhurst Community Center

By Erica C. Barnett

The battle over police funding may be the marquee issue at Thursday’s final public city council budget meeting, but the council will also be taking up dozens of other changes to Mayor Jenny Durkan’s proposed 2022 budget. Here are a few we’re tracking as the council winds up its deliberations over next year’s budget.

• A proposal by Councilmember (and perennial streetcar opponent) Lisa Herbold to cut $2.4 million that would re-start planning for the long-delayed downtown Seattle streetcar and reallocate that money to help improve Seattle Public Schools’ bus routing technology and to fund a citywide hiring incentive program.

Herbold noted earlier this month that there are currently vacancies across all city departments, not just SPD, and suggested funding incentives to fill those positions as well.

• Two amendments, both by Councilmember Tammy Morales, that would strip $5.1 million in federal funding from a Salvation Army-operated emergency shelter in SoDo and use the money to fund land acquisition for cultural space through the city’s Cultural Space Agency, to purchase a separate piece of land in SoDo for transitional housing to be run by the Chief Seattle Club, and to develop a new “City-run social housing acquisition program.” The Cultural Space Agency is a public real estate development agency established last year with a mission to create new, community-based arts and cultural venues and spaces in Seattle; an infusion of $1.1 million would allow the agency to set up a land acquisition fund.

Social housing is a somewhat loftier notion; according to Morales’ amendment, $2 million would be enough to hire a team that would “research portability of social housing acquisition program models currently operating in cities like Berlin, Paris and Vienna,” but any expansion of the program would require ongoing funds in future years.

PubliCola is seeking more information about the transitional housing project.

UPDATE: On Thursday afternoon, all three of Morales’ proposals to repurpose funding for the SoDo shelter failed; two, the transitional and social housing proposals, failed for lack of a second vote to put them up for discussion.

In her budget this year, Durkan proposed eliminating the creative industries director position altogether and demoting the city’s creative industry policy advisor to a lower-level “creative industries manager” job overseeing various special events and permitting staff.

The Salvation Army shelter receives additional funding from the city and county, but the loss of $3.1 million in annual funding would force the agency to close the shelter in 2023 or find funding elsewhere. The shelter, located in a former COVID isolation site inside a former Tesla dealership, enabled the Salvation Army to consolidate several existing shelters in one location, freeing up other spaces for use during weather-related emergencies. The building, which has a special air-filtration system, served as the city’s only smoke shelter during the 2020 summer wildfires.

• Morales has also proposed restoring a position at the Office of Economic Development to support and promote film, music, and other creative industries in Seattle. Over her term, Durkan has steadily chipped away at this longstanding city function, first by neutering the Office of Film and Music (whose director, Kate Becker, left for a job as King County’s first-ever Creative Economy Strategist in 2019 and was never replaced), then by attempting to eliminate the city’s nightlife advocate, and, finally, by bumping OED’s Creative Industries director position further and further down the OED org chart.

Currently, the Inclusive Creative Industry Director job is vacant; the city’s website describes the job of the office as helping creative workers “transition into middle and higher earning jobs,” promote economic recovery, and “Better connect businesses and workers with the creative skills that will be in high demand in the Network Economy,” whatever that means.

Laurelhurst is a wealthy area that ranks among the least diverse in Seattle. In his pitch to trade the parks workers’ pay increases for the community center, Pedersen argues that the center serves an important race and social justice purpose because it is “connected by a bridge to the adjacent [Laurelhurst] elementary school, where 45 percent of students are Black, Indigenous, or people of color (BIPOC) and 31 percent of students’ families are low income.”

In her budget this year, Durkan proposed eliminating the creative industries director position altogether and demoting the city’s creative industry policy advisor to a lower-level “creative industries manager” job overseeing various special events and permitting staff. Morales’ resolution wouldn’t reverse the demotion, but it would place a hold on the money to fund the manager position until OED provides the council with a “Creative Sector Action Plan” and a description of how the office will “reorganize so that this position can focus solely on policy development and implementation related to the creative industries and not be responsible for staff management.”

• Councilmember Alex Pedersen, who frequently talks about the need to treat “mom and pop landlords” differently than big property management companies, wants to set up a special “small landlord and tenant stakeholder group” at the city’s Department of Construction and Inspections. According to Pedersen’s proposal, “The group should propose a definition of ‘small landlord,’ estimate the population of small landlords with units in Seattle, make findings about how current regulations and market trends impact small landlords and their tenants, and identify whether those impacts are disparate.”

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The plight of smaller landlords came up frequently during the COVID pandemic, when many tenants who lost their jobs were unable to pay rent. Landlord advocates argued that the eviction moratorium and other tenant-friendly laws and policies put smaller-scale property owners at risk of defaulting on their mortgages.

• Pedersen is also behind a proposal that would eliminate pay increases for some salaried parks employees to fund the reopening of the Laurelhurst Community Center, which Durkan’s budget proposes closing and turning into a “premier rental facility” like those at Pritchard Beach and Golden Gardens. Durkan’s budget uses the money saved by shuttering the center to pay for a mobile recreation and playground program called Rec’N the Streets. The city’s parks department shut down all 26 of the city’s community centers last year because of the pandemic, and has reopened only nine.

Laurelhurst, a waterfront neighborhood in Northeast Seattle, is a wealthy area that ranks among the least diverse in Seattle. In his pitch to trade the parks workers’ pay increases for the community center, Pedersen argues that the center serves an important race and social justice purpose because it is “connected by a bridge to the adjacent [Laurelhurst] elementary school, where 45 percent of students are Black, Indigenous, or people of color (BIPOC) and 31 percent of students’ families are low income.”

However, the community center is one of the smallest in the city, lacks a gym, and does not offer child care, limiting its usefulness to families with school-age children. Across Seattle, community centers serve the entire surrounding community, not just nearby elementary school students, and are especially critical in lower-income areas where residents may lack the ability to pay for private sports lessons, child care, after-school activities, homework help, fitness classes, and other types of programming that community centers provide.

The Laurelhurst Community Club, a private organization that runs a beach club that’s open only to property owners in the neighborhood, has been a vocal advocate for reopening the community center, where the group has historically held its meetings.

Council Whittles Budget Wish List Under Shadow of Eyman’s Anti-Transportation Funding Measure

Although an analysis by the city council’s central staff shows that Tim Eyman’s Initiative 976, which appears to be passing, could reduce the Seattle Department of Transportation’s current funding for buses and road maintenance by as much as $33 million next year (when Seattle’s local $60 car tab measure is set to expire), the council moved ahead with next year’s budget on Wednesday without resolving the question of whether and how to fund the shortfall. Mayor Jenny Durkan and city attorney Pete Holmes are holding a press conference on Thursday to announce a lawsuit challenging the initiative, which overturned the vehicle license fees that fund roads, bridges, maintenance, and transit projects throughout Washington state.

(UPDATE: In a press conference Thursday morning, Seattle Department of Transportation director Sam Zimbabwe said the council and SDOT were still figuring out how to fund the 2020 transportation if a court does not grant the injunction against implementation of I-976 when the city files its lawsuit challenging the initiative as unconstitutional next week.)

Here’s a first look at some of what’s in and out in council budget chair Sally Bagshaw’s initial “balancing package,” which—unlike the wish lists council members have been presenting until now—has to be balanced.

What’s In: 

• Funding to expand the successful Law Enforcement Assisted Diversion program, which provides outreach and services to people committing low-level street crimes, often because of mental illness and addiction. Although the group that runs LEAD, the Public Defender Association, had asked for $4.7 million to keep up with growing caseloads, the council settled on $3.5 million. (Mayor Jenny Durkan’s initial budget provided essentially no new funding for the program, which the city has expanded geographically several times.) PDA director Lisa Daugaard told me the group has secured private funding for the remaining $1.2 million but declined to name the funder yet.

• About $1.3 million for mobile restrooms like the ones that have been successfully operating in San Francisco for severa6l years; the restrooms would include toilets, a drop box for needles, and a place to dispose pet waste.

• $1.8 million in funding for two new tiny house village encampments, which would bring the total number of tiny house villages to ten. One of the new villages would be designed for people referred from LEAD (which serves some homeless clients but is not primarily a homeless services organization) and the city’s Navigation Team, which removes unauthorized encampments from public spaces.

• A small amount of funding—$158,000—for the use of the University Heights Center parking lot in the University District as overnight parking for five to 10 people or families living in their cars. The most recent point-in-time count of people experiencing homelessness found more than 2,000 people living in their vehicles across King County, a number that was lower in the latest count, in part, because All Home King County adopted different (lower) assumptions about how many people are sleeping in a single vehicle.

Earlier this year, Mayor Durkan scuttled plans to open several larger “safe lots” for people living in their cars around the city. In lieu of larger lots where people living in their cars can access services and showers, Durkan has proposed spending $375,000 to open up to 40 spaces citywide by persuading religious institutions to host a few cars at a time. The budget action, from District 4 council member Abel Pacheco, redirects $125,000 of that money to the U District community center.

Once downloaded, the app pings when a homeless person wearing one of the company’s bluetooth-equipped “beacons” is nearby, providing information to about their story and what they need. If the smartphone owner decides to donate, the homeless person can receive vouchers for goods and food (though not alcohol) at participating retailers, but only if he or she has agreed to go to counseling with a nonprofit case manager once a month.

• $75,000—down from the $175,000 proposed by council president Bruce Harrell—to fund a company called Samaritan that has developed an app-based homeless donation system. Once downloaded, the app pings when a homeless person wearing one of the company’s bluetooth-equipped “beacons” is nearby, providing information to about their story and what they need. If the smartphone owner decides to donate, the homeless person can receive vouchers for goods and food (though not alcohol) at participating retailers, but only if he or she has agreed to go to counseling with a nonprofit case manager once a month. (Specific details about clients’ case management visits is provided to anyone who downloads the app, including medical information that they choose to mention in their summaries.) Case management is free, but “career counseling” costs $20 an hour, according to media reports.

The proposal is controversial. The Seattle/King County Coalition on Homelessness says it’s “flat out unacceptable to put public [money] into [a] for profit private enterprise,” especially one that charges for “career counseling.” They’re pushing for the council to remove the spending—which, council member Lisa Herbold pointed out, does not include funding for the mandatory case management obligations the program creates for its clients—in the next budget round.

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• Reflecting the fact that the regional homelessness agency likely will not be in place by the beginning of next year as originally planned, the balancing package eliminates $345,000 earmarked to fund staff for the new agency. The document describing the budget cut mentions an April 1, 2020 start date for one of the positions, but it’s unclear whether the new authority will be in place by then; members of the Sound Cities Association, which represents King County’s suburban cities, plan to discuss the proposal at their November 20 Public Issues Committee Meeting, which is one day after the November meeting of the King County Regional Policy Committee, which must approve any plan before it goes to the full King County Council. Suburban cities have expressed concern that the proposed governance structure is too Seattle-centric, that the governing board is unaccountable, and that the proposed public development authority isn’t the appropriate structure for merging the city and county’s homelessness agencies.

• Taking $12.75 million from several programs Durkan had planned to fund with the sale of the Mercer Megablock and reallocating it to low-income housing projects that are shovel-ready but unfunded under the city’s annual Notice of Funding Availability, which always gets far more appilcations for housing projects than it has money to fund. The budget edit would cut funding from Durkan’s proposed Strategic Acquisition Fund (intended to buy land for future projects near transit) and homeownership and accessory dwelling unit loan programs that are aimed at helping moderate-income home buyers and existing homeowners get loans to buy houses or build affordable rental units on their property.

• Fully funding at least one safe bike connection between Southeast Seattle and downtown, as proposed in the 2014 Bicycle Master Plan and endorsed this year by the city’s Bicycle Advisory Board. Durkan’s Department of Transportation dramatically scaled back the BMP Implementation Plan in response to soaring costs earlier this year, but her proposed cuts seemed to center disproportionately on Southeast Seattle, the poorest and most diverse part of the city. A $2 million 2020 add from council member Mike O’Brien would enable SDOT to complete a bike lane on Beacon Ave. S. or one on Martin Luther King, Jr. Way S. before the levy expires in 2024.

What’s out: 

• In conjunction with the new funding for tiny house villages, the balancing package eliminates $1 million Durkan had proposed spending to relocate a tiny house village in Georgetown, which has the support of neighbors but has been on its current site longer than the two-year limit imposed by the city. The council could choose to change the law to allow the village to stay in Georgetown, help residents relocate to a property owned by a faith institution (which would not be subject to the limit) or close the village, which is operated by the Low Income Housing Institute.

Durkan’s “Fare Share” Proposal Hinges on Future Success of Uber and Lyft

Kerem Levitas, Office of Labor Standards, Deputy Mayor Shefali Ranganathan, Mayor Jenny Durkan

Mayor Jenny Durkan announced Wednesday that she’s proposing a 51-cent fee on all Uber and Lyft rides, along with new minimum wage and benefit standards for drivers and a dispute resolution center for drivers who have been unfairly kicked off the platforms or underpaid.

The city estimates that by 2025, the fee will generate enough funding, $56 million, to fully fund the construction of the downtown streetcar, plus $52 million for affordable housing near transit stops and about $18 million for a new dispute resolution center for drivers challenging unwarranted removal from the ride-hailing platforms or unpaid wages.

The streetcar, which Durkan halted last year after the price to build and operate the project ballooned, faced a capital-funding shortfall of about $65 million. Earlier this year, the city council approved a $9 million interfund loan to restart work on the streetcar; that loan will be paid back with the proceeds from the Mercer Megablock sale.

“By creating a high-capacity alternative in the center city, [the streetcar] will provide an alternative for folks who are taking those short trips in and out of downtown.” – Seattle deputy mayor Shefali Ranganathan

Durkan’s proposal would also mandate that drivers be paid at least minimum wage, plus compensation for benefits and expenses, for all portions of every trip that begins or ends inside the city of Seattle, and increase the current 24-cent fee that pays for wheelchair-accessible vehicles and regulation of the ride-hailing industry.

After 2025, according to deputy mayor Shefali Ranganathan, the fee will “revert to funding transit, bike, and pedestrian projects across the city.”

In a press briefing yesterday, Ranganathan said the city expects that many people taking short trips in Uber and Lyft cars will switch to the streetcar for short trips once the Center City Streetcar is complete, citing a University of Washington survey that found that Amazon employees who use the car services would take transit “if there was quality transit available.”

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Ridership on the existing South Lake Union streetcar has been lackluster, falling 4 percent last year to just over half a million rides in 2018. On the First Hill segment of the line, ridership was up 31 percent last year, to nearly 1.2 million rides.

Ranganathan noted that about half of Uber and Lyft trips in Seattle originate or end inside the center city, which includes South Lake Union, Capitol Hill, and downtown. In a University of Washington survey of Amazon employees who take Uber and Lyft, “many of these folks …said that if there was quality transit available, they would take transit.”

“By creating a high-capacity alternative in the center city, [the streetcar] will provide an alternative for folks who are taking those short trips in and out of downtown,” Ranganathan said.

Continue reading “Durkan’s “Fare Share” Proposal Hinges on Future Success of Uber and Lyft”

Afternoon Crank: Mayor Vetoes Soda Tax Bill, Council Plans to Override, and Streetcar Faces New Hurdles

Image via Pixabay.

1. On Friday, as I first reported on Twitter, Mayor Durkan vetoed council legislation that creates a dedicated fund for excess revenues from the sweetened beverage tax, and stipulates that this money can only be used for new or expanded programs benefiting the low-income communities most heavily impacted by the tax.

In her veto letter, Durkan reiterated her claim that by stipulating what the tax can be spent on, the council is “cutting” funding for previously existing programs that Durkan funded last year by using revenues from the tax to supplant general-fund dollars that had previously paid for the programs and re-allocating those general fund dollars for other purposes. “I agree that the Sweetened Beverage Tax is regressive and should be used only for the purposes set forth in the adopting ordinance, and to further expand important City investments for our most vulnerable population,” Durkan wrote. “Every one of the programs funded in the adopted and endorsed budget met these requirements. Council has now changed its mind and only wants to fund new programs.”

In fact, the council’s legislation will “require that all SBT revenues be used to expand existing programs or create new programs that align with the spending guidance” (emphasis added).

“I think the veto is really more about a statement against this mayor wanting to see her executive power curbed, as opposed to the substance of the issue.” – Council member Lorena Gonzalez

At its briefing meeting this morning, the council made plans to override the mayor’s veto this coming Monday. (Overriding a mayoral veto requires a 6-vote council majority; the legislation passed 7-1, with Abel Pacheco voting “no” and Debora Juarez absent).  Because the council is about to go on its annual recess, next Monday’s meeting is the only opportunity the council will have to veto the bill within the 30-day window specified under city law.

Council president Bruce Harrell, one of seven council members who voted for the soda-tax legislation, called Durkan’s veto “just a complete waste of time,” adding, “I’m not sure of the substantive reasons to do this, other than to make us revote a vote that was not even a narrow vote.” Council member Lorena Gonzalez added, “I’m disturbed by some of the rhetoric coming out of the mayor’s office, but also her agencies,” about the impact of the legislation. “I think the veto is really more about a statement against this mayor wanting to see her executive power curbed, as opposed to the substance of the issue. … It’s clear that the sugary beverage tax has always been intended … to ensure that the dollars were going to be spect in exactly the manner that we have now indicated that they should be spent.” Continue reading “Afternoon Crank: Mayor Vetoes Soda Tax Bill, Council Plans to Override, and Streetcar Faces New Hurdles”

Morning Crank: Streetcar Questioned, Sawant Challenged, and Fort Lawton Moves Forward

1. Ever since Mayor Jenny Durkan announced she was moving forward with the stalled First Avenue streetcar last month, supporters and skeptics have been honing their arguments. Fans of the project, which a recent report costed out at $286 million, say it will create a critical link between two disconnected streetcars that each stop on the outskirts of downtown, boosting ridership dramatically while traveling swiftly in its own dedicated right-of-way; skeptics point to a $65 million funding gap, the need for ongoing operating subsidies from the city, and past ridership numbers that have been consistently optimistic.

Today, council members on both sides of the streetcar divide got their first chance to respond publicly to the latest numbers, and to question Seattle Department of Transportation and budget staffers about the viability of the project.  I covered some of the basic issues and streetcar background in this FAQ; here are several additional questions council members raised on Tuesday.

Q: Has the city secured the $75 million in federal funding it needs to build the streetcar?

A: No; the Federal Transit Administration has allocated $50 million to the project through its Small Starts grant process (the next best thing to a signed agreement), and the city has not yet secured the additional $25 million.

Q: Will the fact that the new downtown streetcar will parallel an existing light rail line two blocks to the east be good or bad for ridership? (Herbold implied that the two lines might be redundant, and Sally Bagshaw noted that “if I was at Westlake and I wanted to get to Broadway, I would jump on light rail, not the streetcar.” Rob Johnson countered that “redundancy in the transportation system is a good thing,” and suggested the two lines could have “network effects” as people transferred from one to the other.)

A: This is a critical question, because the city’s ridership projections for the two existing streetcar lines were consistently optimistic. (Ridership is important because riders are what justify the cost of a project, and because the more people ride the streetcar, the less the city will have to subsidize its operations budget). The city’s answer, basically, is that it’s hard to say. Lines that are too redundant can compete with each other; on the other hand, the existence of multiple north-south bus lines throughout downtown has probably helped ridership on light rail, and vice versa. SDOT’s Karen Melanson said the city took the existence of light rail (including future light rail lines) into account when coming up with its ridership projections, which predict about 18,000 rides a day on the combined streetcar route, or about 5.7 million rides a year.

Q. Can the city afford to operate the streetcar, especially when subsidies from other transit agencies run out? King County Metro has been paying the city $1.5 million a year to help operate the existing streetcars, and Sound Transit has kicked in another $5 million a year. Those subsidies are set to end in 2019 and 2023, respectively. If both funding sources do dry up (city budget director Ben Noble said yesterday that the city could make a case for the Metro funding to continue), the city will have to find some other source that funding as part of an ongoing operating subsidy of between $18 million and $19 million a year.

A: It’s unclear exactly where the additional funding for ongoing streetcar operating costs would come from; options include the commercial parking tax and street use fees. Streetcar supporters cautioned against thinking of the ongoing city contribution as a “subsidy.” Instead, Johnson said, council members should think of it as “an investment in infrastructure that our citizens support,” much like funding for King County Metro through the city’s  Transportation Benefit District—or, as O’Brien chimed in, roads. “Roads are heavily subsidized,” O’Brien said. “When we talk about roads, we don’t talk about farebox recovery, because we don’t have a farebox.”

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2. In response to reporting by Kevin Schofield at SCC Insight, which revealed that the Socialist Alternative party decides how District 3 Seattle City Council member Kshama Sawant will vote and makes all the hiring and firing decisions for her council office, an anonymous person has filed an ethics complaint against Sawant at the Seattle Ethics and Elections Commission.

The complaint, signed, “District 3 Resident,” charges that Sawant:

• Violated her obligation to represent her constituents by allowing Socialist Alternative to determine her actions on the council;

• Misused her position as a council member by allowing SA to make employment decisions for her council office;

• Improperly “assisted”  SA in matters involving her office by allowing them to determine her council votes;

• Accepted gifts in exchange for giving SA special access and “consideration,” including extensive travel on the party’s dime; and

• Either disclosed or withheld public information by discussing personnel matters on private email accounts, depending on whether that information turns out to have been disclosable (in which case, the complaint charges, she withheld it from the public by using a private account) or confidential (in which case Sawant violated the law by showing confidential information to outside parties, namely the SA members who, according to SCC Insight’s reporting, decide who she hires and fires.)

“Sawant is not independent, not impartial, and not responsible to her constituents,” the complaint concludes. “Her decisions are not made through the proper channels, and due to her actions, the public does not have confidence in the integrity of its government.”

It’s unclear when the ethics commission will take up the complaint, which was filed on January 8. The agenda for their committee meeting tomorrow, which includes a discussion of the rule requiring candidates who participate in the “democracy voucher” public-financing program to participate in at least one debate to which every candidate is invited, does not include any discussion of the complaint against Sawant.

According to the Seattle Ethics and Elections website, “Seattle’s Ethics Code is a statement of our shared values — integrity, impartiality, independence, transparency. It is our pledge to the people of Seattle that our only allegiance is to them when we conduct City business.”

3. On Monday, the city’s Office of Housing published a draft of the redevelopment plan for Fort Lawton, a decommissioned Army base next to Discovery Park in Magnolia, moving the long-delayed project one step closer to completion. For years, the project, which will include about 200 units of affordable housing, has stagnated, stymied first by a lawsuit, from Magnolia activist Elizabeth Campbell, and then by the recession. In 2017, when the latest version of the plan started moving forward, I called the debate over Fort Lawton “a tipping point in Seattle’s affordable housing crisis,” predicting, perhaps optimistically, that Seattle residents, including Fort Lawton’s neighbors in Magnolia, were more likely to support the project than oppose it, in part because the scale of the housing crisis had grown so immensely in the last ten years.

The plan is far more modest than the lengthy debate might lead you to expect—85 studio apartments for homeless seniors, including veterans, at a total cost of $28.3 million; 100 one-, two-, and three-bedroom apartments for people making up to 60 percent of the Seattle median income, at a cost of $40.2 million; and 52 row homes and townhouses for purchase, at a total cost of $18.4 million. Overall, about $21.5 million of the total cost would come from the city. Construction would start, if all goes according to the latest schedule, in 2021, with the first apartments opening in 2026—exactly 20 years, coincidentally, after the city council adopted legislation designating the city of Seattle as the local redevelopment authority for the property.

What to Expect When You’re Expecting a Streetcar

This post originally appeared on Seattle magazine’s website.

Last week, defying early expectations that she would abandon the planned downtown Seattle streetcar after pausing construction nearly a year ago, Mayor Jenny Durkan announced that she would ask the city council to proceed with the project. The caveat? The council will need to come up with additional $65 million to help the Seattle Department of Transportation pay for the project, whose price tag has swelled to an estimated $285.8 million from an original estimate of $134.9 million. (The city’s utility departments will have to come up with another $23 million for utility work that the city says is long overdue with or without the streetcar project.)

In 2015, the city’s estimated cost for the streetcar was $143 million; in 2017 it went up to $197 million; and last August, the estimate was $252 million.

This streetcar line, known as the Center City Connector, would connect the two existing streetcar lines: one that travels from Pioneer Square to First Hill and the other that goes from Westlake through South Lake Union. In doing so, it would create an almost-complete loop from First Hill to South Lake Union.

The latest budget increase is the result of delays to the project timeline (besides the 10-month pause in the project, the city now estimates that it will take 18 months for the Federal Transit Administration to review the project for funding—see below for more details—pushing the opening date from 2022 to 2025); extra costs that Durkan says SDOT failed to account for under her predecessor, Ed Murray, including a new maintenance facility and bridge reinforcements; and the need for large ongoing operations subsidy, which could swell to $19 million a year by the second full year the center city streetcar is in operation.

“It is clear now that the previous SDOT management in the last administration had failed to do the proper due diligence to account for all the costs,” Durkan said in a statement. “As a result, this project was not set up for future long-term financial success[.]”

So what does last week’s announcement mean, and what happens now? We’ve put together some questions and answers to explain where the streetcar goes from here.

Does last week’s announcement mean the streetcar will actually be built?

The streetcar still faces a number of hurdles, including the need for funding at the city and state levels. In December, the Federal Transit Administration told the city that the project remained in the running for a $75 million federal Small Starts grant, but the federal funding is not yet secure; without it, the total SDOT funding gap will be $140 million.

Even assuming a smaller shortfall, the city will have to come up with at least $65 million in additional funding, possibly by issuing bonds against an existing revenue source such the commercial parking tax, or as part of a future transportation levy. The city council will now have to work with the mayor’s office, and incoming SDOT director Sam Zimbabwe, to find a source for the additional funding.

Why was there a delay in the first place?

Durkan halted the streetcar project last March after a preliminary review of the project found that costs had ballooned to more than $200 million. The nine-month pause allowed outside evaluators to analyze the cost to build and operate the system as well as SDOT’s engineering work on the project, which a spokeswoman from Durkan’s office says did not include the cost of reinforcing several bridges in Pioneer Square that will need to be strengthened to carry the heavier new trains—which are already on order and weigh about 12 tons more than the existing streetcars.

Why is a streetcar on First Avenue even necessary? Who will it serve?

Business and community groups that support the streetcar, organized as the Seattle Streetcar Coalition, say the First Avenue trolley will do several things: connect downtown businesses and provide a convenient one-seat ride between downtown destinations; serve thousands of low-income downtown residents; and be a speedier option than buses because it will run in its own dedicated lane on First Avenue. Skeptics, meanwhile, counter that Seattle already has a grade-separated light rail train, which runs in the Downtown Transit Tunnel just two blocks east. And, of course, there’s also plain old nostalgia—for more than two decades, the historic George Benson Trolley ran along the downtown waterfront, until its maintenance barn was demolished to make room for the Olympic Sculpture Park.

Courtesy of Seattle Streetcar Coalition

The existing streetcars seem like they’re always empty. Will anyone ride it?

The mayor’s office acknowledges that ridership on the South Lake Union streetcar, which was built partly with private contributions from major SLU landowner Vulcan Real Estate, has declined in recent years. But, they are quick to add, ridership on the First Hill portion of the streetcar—which was built as a kind of consolation prize after Sound Transit killed a planned First Hill light rail stop—has been going up dramatically.

According to the city, once the full line is open, ridership—which on the two existing lines was about 1.4 million a year in 2017—will rise to 7.4 million in 2027, the Center City Connector’s second full year of operations. The mayor’s office also says that the city has studied alternatives to the streetcar—such as reviving a bus route on First Avenue, which was a replacement for the original waterfront trolleys—but says they don’t perform as well in ridership projections as the streetcar.

What changed Durkan’s mind?

In nine months, Durkan went from being a streetcar skeptic to the kind of mayor who says things like, “As we reconnect downtown with our new Waterfront for All, we have the opportunity to create a downtown with fewer cars and where residents, workers, and visitors can walk, bike, and take transit.” In her statement last week, Durkan continued, “A unified streetcar route provides a unique opportunity to build on our investments for the next generation.”

Perhaps the latest round of overruns was smaller than Durkan expected. But she is also responding to the political reality (reportedly communicated to her by her political advisors) that the streetcar enjoys strong support from many constituents, not just the lefty urbanists and transit advocates who voted for her opponent Cary Moon in 2017, but business leaders, developers, and others she needs to have on board if she wants to get reelected in 2021.

The Seattle Streetcar Coalition, which includes the Washington State Convention Center, Transportation Choices Coalition, Uwajimaya, the Seattle Art Museum, and the Downtown Seattle Association, said in a statement immediately following Durkan’s announcement that they were “thrilled” that the streetcar has been revived. In a press release, the coalition “commend[ed] Mayor Jenny Durkan for her leadership on transportation and her commitment to delivering the critical next piece of Seattle’s streetcar system.”

Streetcar Path Forward Included Nudge from Deputy Mayor, Married to Streetcar Consultant, to Meet with Advocates

Mayor Durkan’s decision to move forward also came after political advisors pointed out the popularity of the project among key constituents.

In announcing yesterday that she planned to re-start the process of building the stalled Center City Connector on First Avenue, Mayor Jenny Durkan was responding to a new report from the Parsons engineering firm showing that the project is feasible if the city can come up with an additional $88 million—the gap between the 2017 cost estimate for the streetcar and an updated estimate of $286 million.

But she was also responding to the political reality (reportedly communicated to her by her political advisors) that the streetcar enjoys strong support not just from the lefty urbanists and transit advocates who voted for her opponent Cary Moon in 2017 but from business leaders, developers, and other constituents who she needs to have on board if she wants to get reelected in 2021.

The mayor’s decision to meet with those advocates came shortly after a nudge from one of her deputies with a direct interest in the project’s outcome. Although Durkan was initially reluctant to meet with a group of business leaders and downtown stakeholders who supported the streetcar, she eventually did so—after an email, last June, from her deputy mayor David Moseley, urging her to take the meeting. Moseley  is married to the consultant Durkan hired to do an analysis of the streetcar in July. Previously, Moseley had urged top city officials to accelerate streetcar-related construction that began in 2017, noting that as a property owner along the streetcar route (he and his wife, Anne Fennessy, own a condo in Pioneer Square), he was among those directly impacted by the construction.

Last June, 100 downtown stakeholders, organized as the Seattle Streetcar Coalition, wrote a letter to Durkan urging her to move the streetcar forward, arguing that the 17-block project, which would connect the existing South Lake Union and First Hill streetcars, was “an essential component of our transportation infrastructure, and is currently the only high-capacity transit project planned for the center city before 2035.” At that point, streetcar work had been on hold for several months.

The streetcar advocates, frustrated by what they viewed as a lack of responsiveness from the mayor’s office, asked for a meeting with Durkan herself on June 19, in an email signed by six members of the “Streetcar Steering Committee,” representing the Alliance for Pioneer Square Alliance, Vulcan, and the Downtown Seattle Association, among others. (I obtained this and other emails referenced in this post through a public disclosure request).”We’ve been unsuccessful in obtaining a meeting with you to discuss the future of the Center City Connector Project,” the email said. “Many of the Streetcar coalition members would be willing to help the City revisit a host of cost saving solutions.”

A correspondence assistant from the mayor’s office reached out to the mayor’s staff and the three deputy mayors to ask how to respond. Eight days later, one person did—deputy mayor David Moseley, whose wife, consultant Anne Fennessy, was about to sign a $30,000 contract to “coordinat[e] and integrat[e] the City’s streetcar review.” (Fennessy’s first billing period for this contract began on July 27.) Moseley, who lives with Fennessy in a building located directly on the potential streetcar route, wrote, “Not my area but seems to me the Mayor should meet with proponents of the streetcar. I think it’s worth 30 minutes of her time. Just a thought.”

The email went to members of the mayor’s staff and the two other deputy mayors. A few weeks later, on July 24, the streetcar advocates got a meeting with deputy mayor Shefali Ranganathan. One month after that, on August 23, they sat down with the mayor directly—in a meeting that was staffed by the mayor’s then-transportation advisor Ahmed Darrat, and Fennessy.

Moseley, who lives with [his wife, city streetcar consultant] Fennessy in a building located directly on the potential streetcar route, wrote, “Not my area but seems to me the Mayor should meet with proponents of the streetcar. I think it’s worth 30 minutes of her time. Just a thought.” OnJuly 24, the streetcar advocates got a meeting with deputy mayor Shefali Ranganathan. One month after that, on August 23, they sat down with the mayor directly—in a meeting that was staffed by the mayor’s then-transportation advisor Ahmed Darrat, and Fennessy.

Moseley has an agreement with the city to recuse himself from “any current or reasonably foreseeable action that to a reasonable person appears to primarily benefit his wife or her firm” and to refrain “from participating in any decisions that pertain to specific matters in which Anne Fennessy or her firm have a financial interest until those matters are concluded; thereby terminating the financial interest.”

Did Moseley’s brief note change the mayor’s mind about meeting with streetcar advocates? Durkan’s chief of staff, Stephanie Formas, says no. “The note from the Deputy Mayor in June did not impact the decision for the Mayor to meet months later with the Streetcar Coalition in late August ahead of the initial release of the independent review of capital and operating costs of the project,” Formas said     Thursday. “Deputy Mayor Raganathan has been overseeing the review and been the lead on any meetings with transit advocates, community members, businesses, stakeholders and SDOT. She had recommended the Mayor meet with the coalition.”  Even if Moseley’s nudge (or subsequent verbal conversations) did influence the mayor’s decision to meet with the group, it was likely just one of many factors that helped turn the tide back in the streetcar’s favor, along with the new, less-terrible-than-anticipated cost estimates and the mayor’s desire not to alienate a key set of constituents who were urging her to move the streetcar forward.

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But in a sense, whether Moseley’s attempt to influence the mayor by urging her to meet with a group of cranky constituents ultimately did influence the mayor’s thinking on the streetcar issue is almost beside the point. The existence of such an email highlights, not for the first time, the tricky dance that becomes necessary when the mayor’s preferred consultant (and longtime friend) keeps getting contracts to work on city issues, including the streetcar and, more recently, coordination between the city and Sound Transit.

And this was hardly the first such email from Moseley. Back in January, before he signed his recusal agreement, the deputy mayor sent a note  to city staffers, including several at the mayor’s office, complaining about streetcar-related construction in Pioneer Square. “Just to bring some urgency to this issue, I live in Pioneer Square and the work is very impactful to the neighborhood,” Moseley wrote. “I know the work is necessary but I hope we are doing all we can to have the work completed as quickly as possible and with as little impact as feasible.”

It’s probable that neither of these emails cross any kind of formal ethical line. But they do raise questions about what “recusal” means, and whether Moseley should be weighing in with city staffers or the mayor about issues Fennessy works on at all. (Whether Moseley’s boss should be granting his wife six-figure, no-bid contracts is another question altogether.)

The ultimate fate of the streetcar remains a somewhat open question. The total funding gap identified in the report is $88 million—$23 million for utility work that would likely have to be done anyway, and a $65 million hole in SDOT’s budget for the project that resulted from factors the mayor’s office says the department failed to consider, including the need for a new maintenance barn to accommodate longer trains, funding to strengthen bridges in Pioneer Square, and modifications to the train platforms and tracks.

In her letter transmitting the new cost estimates to the city council, Durkan placed the blame for these cost increases squarely on former mayor Ed Murray’s administration and the previous management at SDOT, writing, “It is clear now that the previous SDOT management in the last administration had failed to do the proper due diligence to account for all the costs. As a result, this project was not set up for future long term financial success, including with the Federal Transit Administration (which does its own separate review of the project).” The city is counting on a $75 million Small Starts grant from the FTA to complete the project. The additional review, Durkan’s office says, will push the streetcar’s opening date out to 2025—five years later than the original 2020 projection.

Beyond that, SDOT faces an ongoing operating deficit—or, if you prefer, it requires an ongoing operating subsidy. During last year’s budget discussions, Durkan announced she was ending the practice of backfilling revenue shortfalls for the South Lake Union and First Hill streetcars after the fact, and would instead include the subsidy in the budget at the beginning of the year. According to the Parsons report, that ongoing subsidy will grow from $4.17 million next year to $6.14 million in 2020, when a $1 million annual subsidy from King County Metro runs out, and grow steadily until it jumps again, to $12.8 million, in 2024, when a similar $5 million annual subsidy from Sound Transit runs its course. The renewal of either of these two subsidies would reduce the cost to the city.

As for the Seattle Streetcar Coalition: They were, in the words of one coalition member, “thrilled” by today’s announcement. In a press release, the coalition “commend[ed] Mayor Jenny Durkan for her leadership on transportation and her commitment to delivering the critical next piece of Seattle’s streetcar system.”