EVERETT — The most hotly debated issue of the year for the city boiled down to expressions of reluctance but ultimately unanimous passage in a 7-0 vote to approve the annexation of Everett Transit by Community Transit.

The Community Transit Board will now vote Thursday afternoon in a corresponding decision to authorize an inter-local agreement (ILA) that codifies the $54.5 million transaction between the city and the country-wide transit agency.

Council President, Don Schwab, told the crowd and colleagues he was initially opposed to the proposed annexation but has since switched to support it after the provisions of the ILA, concluding the annexation, “will bring more frequent reliable service adds greater financial stability and better integration with light rail.”

Council member, Ben Zarlingo, confided he has lost more sleep over the annexation issue than anything he has decided in 5 years on the council. Councilmember Bret Bader stated it’s “the most difficult decision of my council tenure.”

During the vote roll call, Zarlingo uttered “a very uncomfortable yes” in announcing his vote. Bader added, “a very divided yes” in delivering his vote.

The annexation was opposed by Paratransit riders who voiced their worry that access for disabled and senior passengers under Community Transit’s DART system would be inferior. Everett Transit employees, including union workers with the Amalgamated Transit Union Local 883, decried the ILA for uncertainty about their seniority standing with the CT ATU Local 1576 when the agencies merge.

Everett city officials said the ATU National Union would facilitate arbitration if necessary for the 883 members.

The proposed consolidation plan dictates that Community Transit will pay the City of Everett a total of $54.5 million as part of the interlocal annexation agreement. Additionally, Everett will transfer $16 million in transit capital reserves to  Community Transit.

The financial structure and asset valuations break down as follows
Transaction Valuation & Cash Flows
$42.5 million paid by Community Transit to Everett to cover physical infrastructure, vehicles, and equipment.  $12 Million for Service Impacts paid by Community Transit to Everett to offset transition costs and support city services (such as IT, payroll assistance, and labor negotiation support). 

$16 million reserve transferred from Everett’s transit capital reserves to Community Transit to fund future vehicle and equipment replacements. 

$300,000 annual lease Community Transit will pay Everett for the Transit Operations and Maintenance Center per year for five years.

 This is a developing story, updated information will be added shortly.
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