06/04/2014 Sponsor: Dave Upthegrove, Larry Phillips, Larry Gossett and Joe McDermott Proposed No.: 2014-0210.2 [jr] 1 STRIKING AMENDMENT TO PROPOSED ORDINANCE 2014-0210, VERSION 2 2 3 On page 1, beginning on line 3, strike everything through page 4, line 67, and insert: 4 "STATEMENT OF FACTS: 5 1. Transit division ("Metro") service is funded mainly by sales tax, and 6 due to the inherently unstable and variable nature of that funding source, 7 the amount of operating funds available from that source varies with the 8 health of the economy. The economic downturn that started in 2008 and 9 resultant decline in sales tax revenues caused a projected shortfall in 10 Metro's operating funds of about $1.2 billion for the years 2009 through 11 2015. 12 2. Since 2009, Metro has undertaken a series of actions to address the 13 revenue shortfall, including increasing system-wide operating efficiencies, 14 use of one-time reserve funds, and generation of new revenue, resulting in 15 approximately $800 million in cost savings and additional resources and 16 closing the financial gap by approximately $148 million annually. 17 Although the worst of the recession has passed and sales tax revenue is -1- 18 currently on an uptick, the economy has not recovered enough to generate 19 the sustained sales tax revenues needed to close this financial gap. 20 3. A temporary funding source, the congestion reduction charge, was 21 authorized by the state Legislature and approved by the county council in 22 2011, through Ordinance 17169. The intent of this legislation was to help 23 address transit revenue shortfalls during the economic downturn and allow 24 King County Metro to continue reducing congestion on some of the state's 25 most crowded highways. 26 4. To close the annual budget gap in the 2013/2014 Biennal Budget 27 Ordinance, transit service must be reduced consistent with the King 28 County Metro Service Guidelines. 29 5. The proposed reductions to Metro's fixed route transit network include 30 bus service changes that affect all jurisdictions within King County, as 31 well as portions of unincorporated King County. 32 6. The proposed service reductions are consistent with the policy direction 33 and priorities adopted on August 30, 2013, in the Updates to the Strategic 34 Plan for Public Transportation 2011-2021 and associated King County 35 Metro Service Guidelines under Ordinance 17641. 36 7. Metro conducted required public outreach and Title VI service equity 37 analysis in accordance with applicable federal regulations and King 38 County Code and other policy. 39 8. The proposed service reductions are within the adopted 2013-2014 40 service hour budget. -2- 41 9. An opportunity exists for the council and executive to work 42 collaboratively with each other, stakeholders and cities throughout the 43 county to identify alternative cost savings, efficiencies and updated 44 estimates of revenue and expenditures that could reduce Metro's annual 45 budget gap, thereby decreasing the number of transit service hours 46 required to be reduced in 2015. 47 10. Section 5 of this ordinance provides a process for mitigating the service 48 changes in sections 2, 3 and 4 of this ordinance. Actual service levels for 2015 49 and later will be determined in a manner consistent with adopted policies and the 50 King County budget for those years. 51 BE IT ORDAINED BY THE COUNCIL OF KING COUNTY: 52 SECTION 1. The September 2014 public transportation service changes for King 53 County, substantially as described in Attachment A to this ordinance, are hereby 54 approved and shall be implemented beginning September 27, 2014. 55 SECTION 2. The February 2015 public transportation service changes for King 56 County, substantially as described in Attachment B to this ordinance, are hereby 57 approved and shall be implemented beginning February 14, 2015. 58 SECTION 3. The June 2015 public transportation service changes for King 59 County, substantially as described in Attachment C to this ordinance, are hereby 60 approved and shall be implemented beginning June 6, 2015. 61 SECTION 4. The September 2015 public transportation service changes for King -3- 62 County, substantially as described in Attachment D to this ordinance, are hereby 63 approved and shall be implemented beginning September 26, 2015. 64 SECTION 5. A. If the executive transmits to the council on or before November 65 30, 2014, a letter that states that the executive has identified additional revenues or 66 savings sufficient to fully fund public transit routes and service at the levels based upon 67 the February 2015 service changes, then sections 3 and 4 of this ordinance shall be null 68 and void. 69 B. If the executive transmits to the council on or before November 30, 2014, a 70 letter that states that the executive has identified additional revenues or savings sufficient 71 to fund routes and service at levels greater than those based upon the June 2015 service 72 changes, the executive shall, by January 7, 2015, transmit to the council: 73 1. A plan consistent with the Metro Transit Service Guidelines recommending 74 restoring some routes and service included in the February 2015, June 2015 and 75 September 2015 service changes; 76 2. A proposed ordinance implementing the restoration of routes and service; and 77 3. A proposed supplemental appropriation ordinance to fund this restoration. 78 C. The letters described in this section shall be filed by the executive in the form 79 of a paper original and electronic copy with the clerk of the council, who shall retain the 80 original and provide an electronic copy to all councilmembers and lead staff of the 81 transportation, economy and environment committee." 82 EFFECT: Implements all four service changes and a process through which the 83 service changes can be reduced should additional funds be identified. -4-