Recitals:

The Seattle Center Monorail was constructed in 1962 by Alweg International of Germany as part of the 1962 Seattle World’s Fair and is an iconic symbol of Seattle.

The Monorail trains are a designated Seattle Historic Landmark.

The Monorail provides a public transportation link between downtown Seattle and Seattle Center.

More than 2,000,000 riders utilize the Monorail each year.

Ordinance 124674 authorized execution of the Monorail Concession Agreement with Seattle Monorail Services (Concession Agreement). Ordinance 125942 authorized the execution of an amendment to the Concession Agreement.

Pursuant to the Concession Agreement, Seattle Monorail Services operates and maintains the Seattle Center Monorail as a concessionaire.

The Seattle Center Monorail accomplishes something no other transportation system in the state and few in the country have done; taxpayers pay none of the Monorail’s operating costs. Instead, operating expenses are fully funded through the system’s fare revenue.

Through the Concession Agreement structure, the system returns revenue to Seattle Center each year. Fare revenue also helps support equipment upgrades and construction-related costs.

The Concession Agreement states Regular Fares shall be adjusted on January 1 of every third year (beginning January 1, 2025) based on any cumulative percentage increase for the latest month prior to the required public comment period as compared to the CPI-U Index on January 1, 2019.

Current one-way regular fare is $4.00 and current one-way discounted fare is $2.00.

The Concession Agreement states one-way regular fares shall not exceed $4.00 and one-way discounted fares shall not exceed $2.00 without amendment of the Concession Agreement authorized by the City Council.

To continue the proven strategy used to keep the system financially viable through varying economic cycles, the fare cap should be raised approximately every decade to a level that can remain effective for years to come, reducing the need for frequent revisions. The current fare cap has been in place for 11 years.

Fare adjustments are tied to the Consumer Price Index (CPI) with adjustments occurring every third year; the next would be scheduled for January 1, 2028, if supported by the CPI.

The existing Concession Agreement already establishes fare increase methodology; this amendment provides sufficient room for that process to function as intended over time. Therefore,

Be it ordained by The City of Seattle as follows:

Section 1. The Director of the Seattle Center (the Director) or the Director’s designee is authorized to execute, for and on behalf of The City of Seattle, an amendment to the Monorail System Concession Agreement previously authorized by Ordinances 124674 and 125942, increasing the maximum allowable fares, substantially in the form of the First Amendment to the Amended and Restated Monorail System Concession Agreement attached to this ordinance as Attachment 1.

Section 2. Any act consistent with the authority of this ordinance taken after its passage and prior to its effective date is ratified and confirmed.

Attachments:

Attachment 1 - First Amendment to the Amended and Restated Monorail System Concession Agreement