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Thursday, February 16, 2006

Who’s to Blame?

Posted by on February 16 at 12:29 PM

There was a weird moment in Team Nickels’s Fire Levy briefing to council earlier this week when Deputy Mayor Tim Ceis began on a supposedly contrite note. (Obviously, there’s something to be contrite about here because the fire levy that voters approved in 2003 is 40% over budget—or $67 million over. And now, the mayor’s office is asking council to cover the overrun.)

But Ceis’s “apology” (“yes, there are significant overruns”) was coupled with an accusation. Basically, Ceis’s acknowledgment that the levy got fucked up was couched in a statement of pseudo collegiality that actually laid the blame on council. He said the lesson here is that the Mayor and the Council should work better together at the outset of major capitol projects to set a realistic budgets. The underhanded message: This was all the council’s fault for low-balling the fire levy.

As Ceis had it: The Mayor’s original fire levy proposal had been more expensive (that is: more realistic) and in trimming it down for voters back in 2003, the council had created an untenable situation where costs were obviously going to balloon…and well, here we are facing sticker shock.

This is obviously ridiculous. To lower the costs back in 2003, the Council wisely cut out specific items—like a gym. So, the fire levy that voters approved included that trimmed down, fixed set of items. It’s those items—items that were also part of the mayor’s original proposal—that have ballooned. It was the mayor’s office that low-balled those items, miscalculating inflation and, DUH!—budgeting for suburban rather than urban fire houses. (Um, somebody on the mayor’s team is not ready for prime time.) Insinuating that the Council set the levy up for failure because they cut stuff out—stuff that now has nothing to do with the cost increase—is just plain weird.

The blame here lies squarely with Team Nickels. Ceis’s attempt to blame the Council was super arrogant and perhaps a sign of things to come when he blames the council for the coming Viaduct tunnel overruns.


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Perhaps someone should point out to Tim Ceis that low-balling the cost estimate to win broader appeal is, ahem, exactly what he's doing now with the new! cheaper! reduced scope tunnel budget.

Oh, the irony.

Oops, sorry, somehow I missed your final paragraph where you already made that point.

Frankly, I think we should very careful about relying on the Mayor
and the city's executive staff to adequately budget for capital construction projects. I get a sense this may be secondary to actually getting the project started and then going back to dealing with the funding issues. We were financially burned on Sound Transit Phase One and I believe Nickels (someone please correct me if I am wrong here) had financial oversite at the time. The project almost melted down due to cost overruns. Today we are contining you pay for a lack of oversite...which amounted to an additional $1.3 billion or so in cost to that project.

I am glad the Fire Levy project was voted and funded by the levy process. This has provided some financial protection to the voters. While most of us will agree there is a critical need to upgrade the city's firehouses, etc., many expect it to be done within the projected costs. This now is not likely to be the case.

What is particularly galling is just how far the cost overrun turned out
to be.....40% over the original
price tag. By any reason, this is a spectacular amount. In my opinion, it seriously questions the reliabilty of Nickels and the staff who budgeted this project to oversee future capital projects.

If you get it wrong this badly, you
really shouldn't be in the business.

---Jensen

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