February 19, 2005
"Whoops" on Wheels and the Ouija-board Blue Book

Remember what Stefan wrote back in December about a pay raise for the monorail executive director, Joel Horn?:
On Horn's watch, the Moronorail has experienced a serious revenue shortfall. Only one bidder is still interested.... Is this man undercompensated at $175,784 a year? I'll let you decide. In order to pay Horn's raise alone, Seattle would have to import an additional $628,000 worth of automobiles whose owners are willing to pay the Motor Vehicle Excise Tax. That's the equivalent of 27 new Honda Accords.
The true estimates for the one bidder on the Project were $200 million more than were publicly stated in "Elevated Transportation Company" campaign materials in 2002. They're over budget, and behind schedule.

SMP director Joel Horn is paid $740 a day (based on 250 working days a year). This breaks down to about six car fees a day. That is, the Seattle motor vehicle excise tax (1.4%) must be assessed on 6 vehicles (with an average value of $8,825), every single day, just to pay his salary.

Imagine a parking garage with 50 MVET-assessed cars on each floor... one story of such a garage would pay for a little over 8 days of Horn's pay. You would need a parking garage full of average-priced cars as high as the Space Needle (see logo at top of page) to pay his yearly wage. (This doesn't include benefits and other perks.)

There are about 5,500 on-street parking spaces in Downtown Seattle. Using the same average excise tax assessments, that means more than one-third of all the cars parked on-street on any given day in CBD Seattle would need to be under this tax... just to pay his yearly salary.

And you don't even want to hear how many cars are needed for sufficient taxation to cover the entire payroll of the Seattle Monorail Project. Here are the top earners:
Name

Title

Salary

Horn, Joel

Executive Director

185,000

Levinson Anne

Strategic Plan Comm Involv

150,000

Macfarlane Ross

Legal & Enviro Director

150,000

Malarkey Daniel

Finance Director

150,000

McWilliams Joe

Right of Way Director

150,000

Horkan Tom

Construction Director

150,000

Cline Denna

2nd Phase Planning Director

125,000

Gebhard Jim

Design & Engineering Manager

125,000

Knox Ven

External Com Director

125,000

Misenar Greg

IT Director

110,000

Raymond Kevin

Government Affairs Manager

110,000

Ben-Shmuel Rachel

Permit & Spec Projects Man

110,000

Frausto Debi

Special Projects Manager

110,000

Kornblatt Helene

Environmental Manager

105,000


Feeling sick yet? And there are ten other Moronorail employees who earn over $95,000 dollars a year. (source: L. Bloom)

But hold everything: surprise surprise, the MVET of 1.4% is apparently not enough for the Seattle Monorail Project. Many Seattle residents are in actuality being charged well over 2% of the fair market value of their car. That's because, according to Seattle attorney Henry Aronson, the Monorail Authority is assessing the tax based on "manufacturer's suggested retail price" and not fair market value, or what you paid for it! (Inflated assessments are one reason the I-695 initiative passed.)

Aronson related the story of a Ms. Larson, who paid $10,450 for her vehicle, but was assessed excise tax for a vehicle worth $19,143. They're also using an unrealistic depreciation schedule. Forget the Kelley Blue Book value: as Aronson says, "it's assessment by ouija-board." (More to come on this, next week).

And also now, a year after they were supposed to have broken ground for this bloated boondoggle, the SMP board is asking to extend the life of the bonds from 25-30 years to 40, following the example of the WPPS project.

Remember how well that worked out?

UPDATE: From the Seattle Popular Monorail Authority website:
The Board has adopted the following goals for the Project:

• On time
• Under budget
• Break even on operations
• Excellent design
• True to grassroots history
• Transparency and accountability to public
The easiest one of those to fulfill, and the least excusable when it is not, is the last goal...

Posted by Brian Crouch at February 19, 2005 01:55 PM | Email This
Comments
1. Well well well, seems like they have good reason not to let their projects die. The private sector doesn't waste money on the inexperienced politicians.
I bet we would find the same crapola in king county, City if Seattle, and Olympia.

But we need to raise taxes.
what I want to ask is why the Democrats take tribe money yet the reservation gambling resorts treat their LABOR unfairly. Seems to me a good Democrat believes in organized labor and forcing biz to pay high wages.
Maybe the high wages are only for the Govn't employees.
www.lbloom.net

Posted by: chardonnay on February 19, 2005 01:41 PM
2. I agree with your point. However, if your figures are based on an average car price of $10,000 then I think your figures are skewed (unless the tax is applied to used cars as well).

Posted by: krm on February 19, 2005 01:44 PM
3. ok, good one crouch. Now, check out

accesswa.gov
office of financial management OFM
reports
salaries
by agency
AGO
GOV

and tell me do we need to raise taxes?

Posted by: chardonnay on February 19, 2005 01:48 PM
4. I recognize one of the names. I believe Debi Frausto is married to a guy who owns a residential real estate sales company in Bellevue.

Posted by: Michele S on February 19, 2005 01:55 PM
5. Hmmmm...I know you can't make this up, but really...

Malarkey Daniel Finance Director
150,000

Are these people working under assumed names so that their neighbors won't shun them? Witness protection program?

Are people aware that once you build it, you can't move it? That the salvage value for an obsolete line is negative?

Posted by: scott158 on February 19, 2005 02:02 PM
6. BRIAN--
What kind of benefit packages do these folks get???
I'll bet it's the CADILLAC!!!!!!
It could easily add another 30% or so to this compensation?? How about EXPENSE ACCOUNTS??
What are their offices, cell phones etc. worth?

Brian has only disclosed part of the iceberg.
Can't wait to see the whole enchillada!

Posted by: Mr. Cynical on February 19, 2005 02:20 PM
7. krm: "I agree with your point. However, if your figures are based on an average car price of $10,000 then I think your figures are skewed...."

Actually, the average car value (not PRICE) used for MVET calculations is 8,825, not 10,000. That makes it even WORSE-- the hypothetical "garage" is higher, and the percentage of cars on the street is larger. I updated the entry to reflect that with links to the Monorail's numbers.

Posted by: Bleeding heart conservative- Brian on February 19, 2005 03:02 PM
8. Pre I-776, my vehicle was taxed at a rate that made it worth $11,000+, even though I paid for $9500 for it two years prior. This is not a new scam.

Posted by: Timothy L on February 19, 2005 03:07 PM
9. Timothy: stay tuned to this website for info on a lawsuit regarding this. Perhaps you can join it.

I am saying it is a scam, I never said it was new.

Posted by: Bleeding heart conservative- Brian on February 19, 2005 03:12 PM
10. Incredible, Brian.

This is the very reason why $30. tabs became so popular. Reasonable people are not so much opposed to the car tax idea; it was the state's over-assesment of value that ticked everybody off.

This is exactly what is happening with the monorail scam. Glad I don't live in Seattle anymore...how many people do you figure are just finding a way around it, becoming the latest artisans of tax dodging?

Posted by: Shaun on February 19, 2005 03:34 PM
11. You say, "Inflated assessments are one reason the I-695 initiative passed." I think that's an urban legend. Concerns about the way vehicles were assessed under the motor vehicle excise tax had already been addressed by Referendum 49 in 1998. Ref 49 cut the MVET by 25%, changed the depreciation schedule for assessment of the tax, and reallocated the receipts from the tax to state transportation and local government functions. I don't understand what you mean when you say the Monorail MVET is unfairly based on MSRP. What is your proposed alternative to MSRP (or a fraction thereof) as a basis for assessment? The Kelly Blue Book? Edmunds? Somebody else? I am not following.

Posted by: J. A. on February 19, 2005 04:59 PM
12. Malarkey ... that's a good one!

The one that really gets me is the "Environmental Manager." Only in Seattle would you have a BS position like that. What sort of environmental concerns is Kornbutt managing? It's supposed to be an urban train running along streets. Are we watching out for squirrel habitat now?

But, wait, we shouldn't make fun of the brilliant professionals. They came up with the idea to run a tourist train, so visitors of Seattle can take scenic tours of West Seattle and Ballard. Those surely are busy tourist traps and these tourists rent so many dang cars, drive around, and clutter up the streets.

I hear they have other plans too. They will have a wedding car, a church car, and shopping mall car.

Posted by: DeadManVoting (aka Iguana) on February 19, 2005 07:04 PM
13. I personally find the position of "Lead Entrepreneur" to be most offensive.

Posted by: Rex on February 19, 2005 07:23 PM
14. squirrel habitat? No need to reinvent the wheel...:

http://www.roadsideamerica.com/attract/WALONsquirrelbridge.html

Ftr, this is my hometown. I know some of these people. To the best of my knowledge, they are not involuntary guests of the state. Amos, alas, was not always a nice person. RIP.

Posted by: scott158 on February 19, 2005 08:06 PM
15. How many of these people are Democrats and how much did they donate to Democrat political campaigns.

I wonder if the PDC has this information?

Posted by: No Phony's Allowed on February 19, 2005 08:13 PM
16. And to think, these people are not ashamed of gobbling that much scratch from the public trough. Public servants my ***.

A more interesting question would be how many of those folks have ever held private sector jobs? How many of them have had to work in an environment where you couldn't simply go squeeze the public for more money when you were too inefficient to succeed?

Posted by: dkpcowboy on February 19, 2005 08:24 PM
17. "You say, "Inflated assessments are one reason the I-695 initiative passed." I think that's an urban legend."

Inflated assessments were precisely why I-695 passed, and the evidence from Henry Aronson shows that those manufacturer's "suggested" retail prices still excite greed among the tax-wallahs and anti-auto opportunists.

Posted by: Insufficiently Sensitive on February 19, 2005 08:26 PM
18. WOW, one bidder on the monorail toy ride, dems opposed to performance audits on local,county and state agencys.
Either half the state wants to get robbed or the news of what's happin is just not getting out in the Times or PI.
The Seattle city council was bought of by a cheep strip club owner for pennies.
I wonder what a large contractor could get by greasing the palms of the KINGCO council for a Disneyland ride like the monorail that gets the builder (not Builders) another 200 mil.
When are we the voters going to demand that our reps stop taking our money and giving it to ONE contractor who is building the toy ride?

Our Democracy has perished. Gorton/Cantewll 2000.
Monorail 2003,Rossi/Fraudware 2004 all were delivered by the machine to the dems and who knows what else?

I am sick about this and have no confidence in our system.

Posted by: brad on February 19, 2005 08:35 PM
19. How long will it be until they try to pass this boondoggle off to the state and we all have to start paying for it?? Is that a possiblity?

Posted by: BlueKnight on February 19, 2005 10:35 PM
20. I can't stop thinking of the episode of The Simpson's where Springfield gets a monorail. It is getting more fitting day by day. On another note I had a discussion about the monorail tax and I-695 with a liberal coworker. She said it was the people in Eastern Washington that passed I-695. As if no one on the west side wanted I-695.

Posted by: William on February 19, 2005 11:33 PM
21. Not to mention those of us who moved to Eastern Washington from Seattle because King County is just too expensive to live in. There are a LOT of us.

Posted by: coastygirl on February 20, 2005 12:23 AM
22. Saw the SHARK at the lincoln dinner in Kitsap tonight! He was a brilliant speaker. He looked great with his lovely wife sitting graciously beside him. Sorry this comment was off-topic but I had never seen him in person and he is a great speaker.
God Bless...
-Pete

Posted by: pete on February 20, 2005 12:43 AM
23. Brad,
you are right, the pubic agency wants it built for nothing and they enjoy punishing the contractors. the engineers and project managers come out of the woodwork and get all
anal-retentive when it comes time to pay the GC after they have spent hundreds or thousands of dollars on labor & materials.

They go out and measure every sq ft and inch and only pay on what is completed, which is fine, BUT, if you forget to turn in even 1 affirmative action form, it holds up payment....it's a different story altogether when the city project manager misplaces your pay estimate or forgets to send it to the next level, among 4 levels of useless depts.

After 30 days the GC calls the city to asks "where is our payment" all you get voice mail.

Posted by: chardonnay on February 20, 2005 12:46 AM
24. Hey Brad -- it goes way back before 2000. In my own recollecting time frame you start with the horse's arse design of a freeway with only two (one?) lanes continuous through Seattle Northbound - construction of which coincided with Boeing opening the Everett plant and transferring 100's of people overnight -- voila -- the freeway sold as not reaching its design capacity until the 1990's -- 2000 -- was declared at design capacity in downtown Seattle within a few weeks of its opening. Then to top it off (pun intended) -- they put 'lids' over the freeway in the 70's & 80's to insure that there would never be a second level built to actually move people.

Then there was the great Kingdome - it should never have been built where it was -- back in the early 60's there were several bond issues to pay for consultant studies to determine and evaluate several sites for a new stadium -- Kent valley and the east side - and Issaquah -- etc etc -- they went through several consultant studies over several years - all of which recommended a Kent valley or east side site -- the downtown site came in at the bottom of the list over and over -- finally a consultant report came in which recommended the downtown site and - WHAM!!! -- the bonds were voted in and the gorgeous God's orange juice squeezer was added to the skyline of regressive Seattle.

In between the above highlights - there was the great - "no more trackless trolleys (electric buses) were being made anywhere" scam and the aging fleet had to be replaced by diesel buses -- RIGHT -- 25-30 yr old electrics zipping up Admiral Way at 35 mph replaced by 10 mph crawling, stinking diesel buses -- the complaints re the stench were so great that the clowns put perfume in the diesel fuel -- Seattle became a laughing stock of the world --
meanwhile -- when the change was announced - an Engineer's organization tried to get out the word that it was the wrong move and they were shut out -- the copper trolly lines cables in West Seattle and in many other parts of Seattle were taken down so fast heads were spinning -- probably something to do with the price of scrap copper since the Demo's were getting Viet Nam under way. -- OH YEH - before I forget -- at the same time as the diesels were getting stuffed up our butts - you could go up to Vancouver BC and see brand spanking new trackless trolleys - HUH? -- DUH? -- DOOOOH!!! -- a few years later (1970) I saw brand new trackless trolleys in San Francisco -- and -- Seattle has had electric buses for many years now -- uh - hold it -- yes but - only on a small portion (and bus tunnel) of the original electric lines that ran all over town.

Then there were the 1960's "SAVE THE FARMLAND" ballot measures and bond issues that were to save the Kent valley and of course anyone with half a brain can see what that BS resulted in -- as soon as they were passed.

Then there was the low level Spokane St bridge which replaced several lanes with a two lane designer's ego bridge that takes longer to close the last couple of feet than the antique older bascule bridge took to go from completely up to completely down .

The never ending condemnation and confiscation of waterfront and riverfront land to turn everything into a park or landing place for ChiCom containers -

More recently of course is all the stadium BS -- recent enuff -- no details to add from me --

Then there are the never ending school levies -- and never improving pupil abilities --

Keep your ears to the ground folks but don't let them step on your head


Posted by: Bill on February 20, 2005 01:10 AM
25. I forgot to mention that I have seen Sound Transit officials driving SUVs. Seems like it is an entitlement for them. Can't they walk the walk like they expect the rest of us to do?

Posted by: William on February 20, 2005 05:17 AM
26. The question was raised earlier--
What is the complete benefit package and overhead attributable to these people????
I think we would all feel even more sick once that is revealed.

Posted by: Dude on February 20, 2005 05:51 AM
27. Brian,

Good post overall but a couple errors. When calculating vehicles needed to pay Executive Director Horn's pork- er, salary- you went from number to pay one day to annual, then applied that annual number of vehicles to "any given day." Even my meager salary starts to look flamboyant if you incorrectly state my annual salary as being paid to me any given day. Also you started with Downtown Seattle parking and concluded with "in Seattle" which covers quite a bit more territory.

Minor stuff maybe and nobody seems to have noticed. But we all know the opposition loves to inflate the least little thing and use it to distract or discredit. As the rest of your post shows, the story of the monorail is such an egregious tale of mismanagement, porkbarrell politics and outright fraud there really is no need to exaggerate a single thing.

Posted by: Chuck Miller on February 20, 2005 09:55 AM
28. It Reminds me exactly of Ron Sims Whoops on Wheels Light rail project (I wonder if he had land use restrictions like CAO has on the light rail route). They were all praising the 10% below bid they recieved last week once again skewing the real facts that the project is 90% over the voter approved amount and half as long. They really know how to P away tax payers money.

Posted by: GS on February 20, 2005 10:30 AM
29. Chuck: point of clarification thanks, it is accurate but might need tighter phrasing.

Posted by: Bleeding heart conservative on February 20, 2005 11:04 AM
30. Looking at the names and the salaries -- this looks like the salaries of high level union management and successful ?? corporations (preditory comes to mind) -- bottom line is this is just a big scam and the Seattle fools have fallen hook line and sinker for this crap -- nothing but pure rip off -- aided and abetted by the non-existent competition between the great Seattle news media - what a load of crap -- hey, psst - Seattle -- wanna buy da Brooklyn Bridge? -- swamp land in Florida? (or wet -farm -land in Kent Valley? - oh wait - that has been paved over)or maybe a stadium or two on an emergency basis!!

Let's put the complete list of uppa management leeches and their salary and benefits and perks up for all to see and vote on -- FAT Chance - bottom line is that the vast majority of crap going on around here is just that - crappy scams to benefit the few at the expense of the many under the guise of providing something everyone needs and will benefit from -- how the hell are commuters from downtown who absolutely don't give a G-D re a baseball game being benefitted by the nightly commuter hour traffic jams whenever there is a home game - adding 15-30 minutes to the commute standing up on a bus - duh -
Oh hold it - that just reminds me - who benefits the most from the monorail -- people outside of Seattle who do not have to pay the usurious tax on their autos and who will drive into West Seattle and Ballard and ride the monorail to the games -- hopelessly clogging streets around the outer laying stations and -- guess what peanut gallery?? -- depriving the parking lot rip off and tax revenue to the city -- have a nice day - put on your smiley face

Posted by: Bill on February 20, 2005 12:02 PM
31. HA! HA! HA! HA! HA!

Damn I'm glad to be living in the sticks with the hicks! It makes my hour one-way commute seem worthwhile!

We're not even paying attention to GMA...

Posted by: gadfly on February 20, 2005 01:16 PM
32. My dad was a Seattle Transit driver for 30 yrs and was asked if he wanted to drive the monorail from downtown to the center. And he said NO. Tooo boring. He drove the Roosevelt line for most of his time there. He retired at 65 and died at 911/2 and laughed that he screwed the union with his longevity. You people are so screwed up there. I'll stay here in N. Cal., thank you.

Posted by: Howard on February 20, 2005 07:57 PM
33. "Special projects" is a code phrase for no specific job description. These are patronage. Team can't be complete without a couple of them.

Posted by: Dogbert on February 20, 2005 09:04 PM
34. I think the Monorail planners blew it, they even broke one promise that would have been easy to keep. They said that they would not compete with Sound Transit, that they kept, but the part about complementing it they did not. Get this, they pass with a block of each other at Westlake. Why not connect their? Same thing with King Street Station.

We need a balanced system, but that will not happen when proponents of each mode say all or nothing.

Posted by: MASSTRANSITFAN on February 20, 2005 09:48 PM
35. When I was in the car business in Canada the wonderfull government decided; to add the federal good and services tax on used cars bought at car dealers. Private sales only subject to the provincial rate. This led to more tax fraud and dealers resorting to rolling back odometers, rebuilding cheaply insurance wrecks and selling them as never hits and under the table sales. Not as extreme but wasting money on this project will mean a need to raise the tax. The more taxes are raised the more frauds that could be a danger to the public will increase as well.

To control the fraud the government made public auto actions a federal tax free zone. Thanks to the blue book, people paid too much for their vehicles at these places. Great source of income for me. Buy car at dealer auction, sell at public auction, despite seller fee's still made double than what the car sold for retail in the open market!

Posted by: Koenig on February 21, 2005 04:22 PM
36. Perhaps if the Blue Book and not the MSRP had been used to set the depreciation schedule, the old MVET would have been bearable, perhaps the old MVET also rolled back to 1.1%, and I would have voted for that Initiative.

As for rail-based transit, I have been reading about the revival of Light Rail Transit in Northern New Jersey. The Hudson Bergen LRT line for NJT is being built in three segments, with two already operating, one in 2000, the other last year, using DBOM contracts. Perhaps that is the way Sound Transit should go with future LRT Contracts.

Anyway, I have been reading the proposal by Bombardier, and they say their new plan could be built without the revisions that the SMP has decided are necesary to save money.

Posted by: MASSTRANSITFAN on February 21, 2005 06:10 PM
37. The car tab tax got us too. We paid just under $10,000 for my wifes car. The KBB value it holds this year if it's in perfect condition is 12,400. We were assesed a value of 17,000 or so for our tabs, which is only $2000 less than the car sold for new. The car is 5 years old. When I called the DOL, not only could they not tell me how the value of the vehicle was determined, they couldn't provide me with documentation on the procedure, nor do they have any sort of dispute process.

Posted by: robnix on February 21, 2005 09:09 PM
38. For the record, Seattle voted AGAINST I-695, and voted FOR the monorail -- TWICE -- and to tax themselves with the MVET after I-695 passed.

This is a Seattle transportation system, paid for by Seattleites to serve Seattleites. If it fails, then we're the ones on the hook for it. If it succeeds, then we're the ones who will be riding around while everyone else sits in traffic on I-5 and the Viaduct.

Posted by: Michael on February 21, 2005 10:39 PM
39. Good Point Michael. Even though the 2002 vote was barely a majority, one thing conviniently not being trashed by critics, was the fact that if you itemize, you can deduct the MVET. The Monorail Authority actually did that in their plan.

Also, more people voted against I-776 in Seattle than voted for the Monorail, interesting.

Also, we have those who keep pushing their ideas to fix traffic, and say they are a cure-all. All of them are just alternatives, but together, they could do the job.

Posted by: MASSTRANSITFAN on February 21, 2005 11:14 PM
40. I can't believe it, my co-worker just bought a car for $80801. Isn't that crazy!

Posted by: Betsy Markum on November 14, 2005 05:44 PM
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