Panel says Sound Transit needs to slow spending

The costs to run Sound Transit are rapidly rising, and the agency should do more to put on the brakes, an oversight group says.

The Citizen Oversight Panel flagged several problems in a report Thursday to the agency's governing board of local elected officials.

Staff and overhead costs are expected to rise at least 8 percent this year, to $65 million for 394 employees. That comes after a 6 percent increase last year.

The report adds: "We are concerned that a number of new operating programs are being created that have not been scrutinized in-depth by the board."

At the same time, the panel congratulated the agency for double-digit ridership growth, and lauded Chairman Greg Nickels, the Seattle mayor, for leading an $18 billion expansion plan to victory at the polls last fall.

Employees will get an average 4 percent pay increase this year, said Finance Director Brian McCartan.

Highlights of the critique:

• The cost of ST Express bus service will rise 27 percent this year, to $90 million, for only an 8 percent gain in service hours. Sound Transit relies on contracts with local transit agencies to drive and maintain the fleet.

• Security costs will nearly double to $6 million, as the agency creates its own police force of 35 officers, plus 71 unarmed guards and supervisors. The report called it "a very rich mixture of costly services." Those may be needed, but the board never looked at leaner alternatives, said panel chairman Dick Chapin.

• The "smart-card" fare system, known as ORCA (One Regional Card for All), is at risk of not being ready by July, when Link light rail opens from Seattle to Tukwila.

• Light-rail costs will be above national averages.

Transit officials said staff growth is driven mainly by the launch of light rail, but the panel says it's unclear how much of the increase is due to inflation and how much is the result of new services.

The agency will issue a formal response within 30 days.

Mike Lindblom: 206-515-5631 or mlindblom@seattletimes.com