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Governance and Utilities Committee

SEA-GAU-2026-03-12 March 12, 2026 Committee Meeting City of Seattle
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The Seattle City Council's Governance and Utilities Committee conducted two public hearings and approved both measures unanimously during its March 12, 2026 meeting. The committee authorized Seattle Public Utilities to sell a 28,900-square-foot property in SeaTac to King County Water District 125 for $280,200, facilitating the district's plans to build a new pump station and water service infrastructure. The committee also approved a seven-year extension to the city's cable franchise agreement with Comcast, raising franchise fees from 4.4% to 5% and PEG fees from 0.4% to 0.6% of gross revenues. In the meeting's highlight presentation, Seattle IT presented a comprehensive overview of its strategic transformation under Chief Technology Officer Rob Lloyd, who was conducting his final committee presentation before departing March 27. Lloyd detailed significant performance improvements including a jump in project success rates from roughly 10% to 78%, reduced priority-one outages by 41%, and maintained customer satisfaction at 67% despite a $21 million budget reduction and loss of 61 staff positions. The department unveiled a new dashboard-driven work plan system designed to align IT operations directly with mayor and council priorities, emphasizing accountability, metrics, and strategic focus over ad-hoc project responses. The session marked a transition point for Seattle IT, with Assistant CTO Tracye Cantrell set to become acting CTO following Lloyd's departure to lead the Center for Digital Government.

**CB 121166 - SPU Property Sale** - **Action:** Committee recommends passage (3-0 vote) - **Item:** Surplus declaration and sale authorization for Glacier Well property in SeaTac - **Purchase Price:** $280,200 to King County Water District 125 - **Staff Recommendation:** Approve sale - **Key Details:** 28,900 square feet, unused well site with water quality concerns, purchaser will decommission well within one year, existing school access permits will transfer **CB 121163 - Comcast Franchise Amendme…

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**Property Disposition Process** The SPU property sale highlighted Seattle's structured approach to surplus property disposition, following the 1998 Council Resolution 29799 process. Staff explained that the Glacier Well property was purchased in 1986 but abandoned for development in 2022 due to water quality concerns with manganese and hydrogen sulfide. The water rights were successfully transferred to the Seattle Well Field in 2023. King County Water District 125, which has a 60-year wholesale water contract with SPU serving SeaTac, Burien, and Tukwila, initially explored a lease-option arrangement but ultimately requested outright purchase to support their growing service area along what was referred to as "Packwood Highway." Council Member Strauss emphasized the utility-to-utility nature of the transaction, noting it represents continued utility purpose rather than conversion to non-utility use. The transaction preserves existing arrangements with Glacier Middle School, built in 2019, which uses part of the property for track bleachers under a permit that will transfer to the water district. **Cable Franchise Modernization** The Comcast franchise discussion centered on bringing Seattle's fee structure in line with federal maximums and peer jurisdictions. IT staff presented detailed comparisons with Tacoma, Bellevue, Everett, King County, Portland, San Francisco, Denver, and Philadelphia. Jon Morrison Winters explained that most other jurisdictions already charge the federal maximum 5% franchise fee, while Seattle had remained at 4.4%. The PEG fee increase from 0.4% to 0.6% addresses declining revenue from cord-cutting by basing fees on gross revenues…
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**Seattle Public Utilities (Jerry Caruso, Bryan Solemsaas):** Recommended approval of property sale, emphasizing proper surplus process completion and benefit to long-term wholesale customer relationship. **King County Water District 125:** Seeking property purchase for pump station and expanded water service to growing SeaTac area, demonstrating long-term commitment through 60-year wholesale contract. **Highline School District:** Consulted during disposition process, determined no interest in property purchase, satisfied with permit transfer arrangement. **Seattle IT Department (Rob Lloyd, Tracye Cantrell):** A…
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**Joy Hollingsworth, on rapid public hearings:** "That is the second fastest public hearing that we've ever done." **Rob Lloyd, on IT mission transformation:** "We are here to make sure that we unleash the brilliance of our people and service to community through technology, and that's it." **Rob Lloyd, on stakeholder feedback:** "We heard clearly from our city employees, leaders, heard from you, public -- the public and partners, and we are rebuilding I.T. to meet the call that you gave us…
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**Immediate Actions:** - CB 121166 proceeds to full City Council meeting March 24, 2026 - CB 121163 proceeds to full City Council meeting March 24, 2026 - Rob Lloyd's departure from CTO position effective March 27, 2026 - Tracye Cantrell assumes acting CTO role **Upcoming Meetings:** - Next Governance and Utilities Committee meeting: Thursday, April 9, 2026 at 9:30 AM **Implementation Items:** - King County Water District 125 to decommission well within one year of property purchase - Water district to establish ne…

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Following this meeting, Seattle has authorized disposal of underutilized utility property while maintaining utility purpose through sale to a water district, rather than converting to non-utility use. The city's cable franchise fee structure will increase to federal maximum levels, generating an estimated $400,000 in additional annual revenue while maintaining unique digital equity programs. Seattle IT completed a major leadership transition with Rob Lloyd's final presentation, leaving behind a transformed department structure with measurable performance improvements: project success rates increased from 10% to 78%, priority-one outages decreased 41%, and custo…
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