The Council was briefed this afternoon on new terms our staff negotiated with the state of Washington related to potential cost overruns on the deep bore tunnel replacement for the Alaskan Way Viaduct. This is significant because these new terms address many of the outstanding questions that have been raised by myself and other Council members in recent weeks.
Here's a quick summary of the protections the Council has achieved in its negotiations with the state and that the state has agreed to. These protections are included in three
agreements between city departments (SDOT, Seattle Public Utilities, and City Light) and WSDOT related to street use permits, utility relocation, and other technical details.
- The agreements make clear that the City is entering into the agreements with a clear understanding that the overall Alaskan Way corridor program can be completed within budget. Translation: If cost estimates come in over budget the City has opportunity to negotiate modifications or even cancel the agreements.
- The agreements make absolutely clear that the state is responsible for their program costs, not the City of Seattle or our city's property owners.
- The agreements make clear that the state shall provide all necessary funding for the program without reimbursement from the City of Seattle.
- The agreements assert the city's position that the city cannot be held responsible for any cost overruns.
- The agreements set aside $380 million for late-stage projects related to new surface streets along Alaskan Way and at the north and south tunnel portals, demolition of the viaduct, tunnel ventilation buildings, re-establishment of the city street grid at both ends of the tunnel, and the decommissioning of the Battery Street Tunnel. Translation: There has been concern that the deep-bore tunnel might go over budget thereby "eating up" money for the projects that come near the end of the overall program. This set aside cannot be tapped for anything other than the listed elements without the Council's agreement.
- The agreements establish a special working group to evaluate tunnel tolling and the impact on the city street grid of such tolling. The working group will be mutually appointed by the state and the city.
These agreements protect the city's interests and those of our taxpayers. It is abundantly clear that the deep-bore tunnel is a state project and the state is responsible for all of its costs, including any cost overruns that may occur.
It's important to remember that this project involves a state highway (State Route 99) and the state could simply proceed on its own without our direct involvement. Instead, the state has worked cooperatively with the Council to forge agreements that are in everyone's best interests.
I'm very grateful for the work of our Council staff and the City Attorney for negotiating agreements that make sense, protect our interests, and move us forward.
In the public testimony portion of our meeting today, many representatives of social service groups expressed concerns that this project could threaten funding for crucial human services. Not true. State funds will pay for the deep-bore tunnel, not city funds. The city's funding of social services comes from our general fund and state and federal monies that we manage. The tunnel project does not threaten those funds in any manner.