The Seattle waterfront seawall project is $71 million over the 2013 budget of $330.8 million, and no tax increase is expected to cover the cost overrun.
The Seattle Department of Transportation announced Friday it will increase the Elliott Bay Seawall's budget to $371.8 million "to address higher than anticipated project expenses."
"We will be able to manage the higher costs without raising new taxes," Mayor Ed Murray said in a statement. "We will use Real Estate Excise Tax receipts and bond against the commercial parking tax, both of which are currently unallocated sources of funds."
The department also revised the completion estimate for the section from Pine to Virginia streets, which is not currently under contract or construction, from $8.4 million to $38.4 million based on two years of construction experience.
SDOT plans to defer work currently scheduled to begin in fall 2015 north of Pike Street until fall 2016 to ensure it is completed in the most cost effective way possible, which may include combining it with work not currently under contract.
"Today I am initiating an outside review of the budget and operation of the seawall project so that we can get an expert opinion to validate our new cost estimates and advise the City on how to proceed," Murray's statement said. "We must do better moving forward."
The schedule for completing the most vulnerable portions of the seawall, those in closest proximity to the Alaskan Way Viaduct and Coleman Dock Ferry Terminal, remains unchanged, according to SDOT.
"The seawall project has documented expenses exceeding budget in several areas, with the largest increases occurring in jet grout waste removal, and groundwater and seawater management," according to an SDOT statement. "The revised project budget is based on actual costs incurred, the department's two years of experience with the project, and projected costs of completing currently contracted work."
KIRO
