Making the ideological decision to throw good money after bad, the Seattle City Council voted 7-2 to buy failed bike-share company Pronto for a whopping $1.4 million – and has earmarked another $5 million in taxpayer money to subsidize another company to run the system! The Seattle Department of Transportation (SDOT) will now seek a new contractor to run the insolvent bike-share scheme as a publically owned system.
The two council members who voted against the wasteful buyout were Tim Burgess and Lisa Herbold. Herbold pointed out that the plan to buy the company was like upgrading to buying a flip phone while paying for a smart phone.
Bruce Harrell, who ultimately supported the buy-out, was the only councilmember to bother to question the conflict-of-interest situation apparent due to SDOT Director Scott Kubly’s past relationship with Alta Bikes (a company contracted by Pronto). According to reports, Alta, now called Motivate, is a “likely bidder” to operate the new publically owned scheme.
Harrell was content with the explanation that an amendment gave council “full authority over choosing the new contractor, taking Kubly out of the loop.”
When asked whether or not he discussed his potential conflict with the city ethics department, Kubly admitted that there is “no written or formal record of the city vetting his relationship with Alta.” He also said that he “does not remember” who he spoke to about the matter at the mayor’s office.
How convenient.
Just to be clear, Pronto opened just a little over a year ago. The company’s ridership hovered around less than one trip per bike per day. Yet, the liberals in charge of Seattle city government thought it was a great idea to buy the failed company at a projected cost (when it’s all said and done) of $6.4 million of taxpayers’ hard earned dollars.
And, that if (a big if) the city does not go over budget.
