The City Council took great pains this afternoon to point out all the ways they have tried to protect Seattle taxpayers in an agreement with the state that would allow construction of a deep-bore tunnel under downtown.

The contracts the council has negotiated for months say, explicitly, "By entering into this Agreement, the city is not waiving its position that the city and/or its citizens and property owners cannot be held responsible for any or all cost overruns related to the portions of the project for which the state is responsible."

The contracts say the city is responsible for the waterfront park, the utility relocations, and rebuilding the sea wall. The state is responsible for the higher-risk portions of the project to replace the Alaskan Way Viaduct, including tunneling under downtown.

"I don't think any of us wants the city of Seattle to be responsible for cost overruns," said Council Transportation Chairman Tom Rasmussen.

The statements would contradict a provision in state law that says "Seattle-area property owners who benefit" would be on the hook for cost overruns.

But the council still isn't going as far as Mayor Mike McGinn wants, who has said the Legislature needs to change the state law before the city enters into the contract. The state needs the city to approve the contracts before it can go forward with its bidding process for the tunnel project.

The mayor, in a press release, said "The City Council's proposed agreement with the state does not answer the question of who will pay cost overruns, nor does it protect Seattle.

"The state rejected language requiring it to pay cost overruns and rejected a provision that the agreement would not take effect until the state legislature agreed to pay cost overruns.

"At most, the proposed agreement states that Seattle does not want to pay cost overruns. But proceeding with the agreement while state law says the opposite leaves Seattle at risk for paying cost overruns."

The council is expected to vote in committee in the next two weeks on the contracts. The mayor says he will veto them, but the council likely has the votes to override the veto.