Council President Nick Licata
WHO PAYS FOR VIADUCT COST OVERRUNS?
Council President Licata’s resolution would carry out recommendation of Expert Review Panel
SEATTLE- City Council President Nick Licata today announced his intent to introduce a resolution to the Seattle City Council calling for the Mayor to carry out an agreement with the Washington State Department of Transportation, identifying who will pay for any shortfall in funding or cost overruns for the Alaskan Way Viaduct, and who will have liability exposure once the project is completed. The resolution calls for an agreement by December 31, 2006.
The Report of the Expert Review Panel, released September 1, 2006, states, “We recommend that stakeholders identify—early in the process—how increases to the cost of the project will be handled.” It further states, “In order to ensure adequate funding for project completion, we recommend that all the stakeholders reach agreement on how such cost increases should be allocated.”
Council President Licata says, “No matter which option gets built, we need clarity on who will pay if the funding plan doesn’t work out, or there are cost overruns. The Seattle Monorail Project is a vivid reminder of what happens when the project cost and the funding don’t match up. The Council took action on the monorail for fiscal responsibility, and we must do the same on the Alaskan Way Viaduct project.”
The resolution is currently being reviewed by the City’s Law Department.
The Council Committee of the Whole will meet today at 2:30 p.m. to be briefed by Expert Review Panel members regarding their recommendations on the Alaskan Way Viaduct and Seawall Project and State Route 520 bridge replacement projects. The Expert Review Panel was appointed by the Governor in June to review the Alaskan Way Viaduct and SR 520 projects.