From the City of Shoreline
After extensive negotiations, the City of Shoreline and the City of Seattle could not reach agreement on a reasonable price for the portion of the Seattle Public Utilities’ (SPU) water system that serves Shoreline.
Shoreline began formal negotiations with SPU in 2009. In 2011, Shoreline and Seattle reached an agreement on a tentative $26.6 million price for the acquisition. In November 2012, Shoreline voters authorized the City to purchase the utility and make necessary improvements for a total investment of $40.8 million.
After receiving voter approval in 2012, Shoreline City staff worked closely with SPU staff to finalize a sale agreement. However, when Seattle Mayor Ed Murray entered office in 2014 he instructed SPU staff to reevaluate the sale of the utility to Shoreline. He questioned the tentative price and what the loss of revenue would mean to the utility revenues and Seattle’s general fund. Seattle reevaluated and offered a new sale price, which was substantially higher than the tentative price negotiated under Mayor McGinn.
Ultimately, Mayor Murray’s direction that the sale couldn’t negatively affect Seattle rates resulted in a much higher purchase price that made purchase of the utility impossible.
The City continues to work with SPU to better serve Shoreline and its residents, including an agreement to increase the money spent on infrastructure projects in Shoreline. Ensuring more Shoreline ratepayer money is spent here in Shoreline addressing Shoreline issues is a priority for the City. City staff and Council will continue to work with SPU and Mayor Murray's office to address our concerns.
More information on utilities here.
so what is now done with the ''voter approved'' $40 mil??
ReplyDeleteHow much money and staff time did the City of Shoreline waste on this misadventure? Without SPU the utility unification between the City of Shoreline and Ronald Wastewater will not save the ratepayer any money. Not only that, but in anticipation of the unification, Ronald Wastewater last year approved the largest rate increase of the past 25 years because the City of Shoreline wants $6 million in reserves from Ronald Wastewater AND Ronald Wastewater did not begin any new infrastructure improvements at the City of Shoreline's direction.
ReplyDeleteGood question? And what about the cost of the ridiculous election where voters were scammed by the City into voting for that loser proposal?
ReplyDeleteIt is amazing how the City gets away with this stuff?
Shoreline should refund the cost of running this election to local taxpayers and ratepayers. Hey Shoreline voters. PAY ATTENTION. Next up will be a new Levy where they ask you to open your wallet.
And remember this last scam when you are considering the 145th Corridor Study and the 145th Rezone.
Fool us once, shame on you. Fool us twice......
How much of Shoreline taxpayer money was spent on this? The city should give a full accounting of all monies spent. This "purchase" was dead before it even got started. Staff who pushed for this should lose their jobs and city council members that pushed for this should be voted out.
ReplyDeleteRe the bond issue - according to sources, the City never issued bonds – as the voter approval was for acquisition in 2021 and since Seattle has decided not to sell there will be not bonds issued. Basically voters said it is ok to do it – but since there is no project no financing will be done. - Editor
ReplyDeleteSo I guess the failed negotiations didn't cost a dime. Lol
ReplyDeleteAm I understanding this correctly? Extra fees (tax?) for SPU retail customers located outside the City of Seattle? So City of Shoreline residents pay more for service that their neighbors south of 145th? And City of Shoreline residents can't vote for the policy-makers?
ReplyDeleteWhat a predicament. Tea-party anyone?