Everett Daily Herald, December 04, 2014

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Carroll schism? No way, Sanchez says

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State school chief visits MPHS A3

EVERETT, WASHINGTON

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OSO MUDSLIDE

Blame already adding up Up to $500K will be spent to defend against lawsuits likely to determine if agencies neglected duties to alert landowners. By Noah Haglund Herald Writer

EVERETT — The legal battle over whether Snohomish

County’s land-use decisions contributed to deaths and property loss during the Oso mudslide has just begun, but it’s already getting expensive.

The County Council on Monday approved spending up to $500,000 for an outside law firm to help defend against lawsuits stemming from the March 22 slide. The disaster left 43 people dead, buried about 40 homes and wiped out a stretch of Highway 530.

“Having outside assistance would be a great benefit,” said Jason Cummings, the county’s chief civil deputy prosecutor. Lawsuits are likely to hash out whether the county or state agencies neglected any duty to alert See BLAME, Page A2

Coffee stands demolished Two used as brothels by ex-exotic dancer who made millions

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EVERETT — A track hoe on Wednesday chewed up two roadside coffee stands that once belonged to a former exotic dancer who made millions selling sex out of the bikini-espresso huts. Carmela Panico’s lucrative drive-through brothels were reduced to rubble in a matter of hours. Earlier this year Panico, 52, agreed to walk away from her business as part of the plea agreement she struck that likely will spare her from more jail time. Panico admitted she was

promoting prostitution out of Java Juggs and Twin Peaks and laundering the proceeds. The espresso madam was arrested last year as part of an investigation into police corruption. Everett detectives and the FBI began tailing a former Snohomish County sheriff ’s sergeant after police heard from some of Panico’s baristas that there was a “dirty cop” supplying their boss with confidential information. Darrell O’Neill, 59, is charged with official misconduct and promoting prostitution. He is accused of helping Panico and her employees avoid undercover

VOL. 114, NO. 297 © 2014 THE DAILY HERALD CO.

INSIDE

Business . . . . .A7 Classified . . . . B2

Comics . . . . . .D4 Crossword . . .D4

police stings and turning a blind eye to the illegal sex-forsale operations. Prosecutors say Panico and her stand manager Samantha Lancaster gave O’Neill sexual favors in exchange for his help. O’Neill, who resigned after 30 years with the department, is scheduled to go on trial early next year. Panico has agreed to testify against him. Panico forfeited about $250,000 police seized from her Snohomish-area home. She is banned from opening up any other coffee businesses in Snohomish County. The city of Everett considered

Shy of retiring Rule No. 1: Spend your kids’ inheritance: A survey by a financial advice nonprofit found a woeful lack of understanding about retirement. Only 20 percent of 1,000 people, ages 60 to 75, passed the quiz (Page A7). Of course only 20 percent passed; they were asking Dear Abby. . . .D5 Horoscope . . . B4

Herald Writer

See STANDS, Page A2

See TOLLS, Page A2

hard questions about Roth IRAs and Social Security rules. Where were the real retirement questions about the TV schedule, pinochle rules and restaurants with the best Early Bird specials? Fly the friendly fries: Boeing made the first test of green diesel, a blend of vegetable oil, waste cooking

Lottery . . . . . .A2 Northwest. . . . B1

By Jerry Cornfield

selling Panico’s stands, located on Highway 99, but later determined that they weren’t up to code and would cost too much to fix. “It’s a matter of dollar and cents,” the city’s code enforcement supervisor Kevin Fagerstrom said Wednesday. “They are dilapidated and disgusting.” The shoddy stands were poorly constructed and wouldn’t survive a move, he added. City workers on Wednesday hauled out bags of trash, including old milk, bottles of flavored

DAN BATES / THE HERALD

Herald Writer

A complex set of rules would require commuters who carpool to install a new device if they want to avoid being charged a fee.

OLYMPIA — Carpoolers will face new rules if they want to travel at no cost in the express toll lanes opening next year on I-405 between Lynnwood and Bellevue. They will need to install a transponder in their vehicle to avoid getting charged and carry at least three people to qualify as a carpool during the busiest times of the day, under plans drawn up by state transportation officials. Right now on Highway 167, which has the state’s only existing non-bridge toll lanes, carpools of two or more occupants can use the lanes at any time, do not pay a fee and do not need a transponder. Single drivers who want to drive in the lanes must have a transponder, known as a Good To Go pass, and pay a toll. “It’s going to be a big change,” said Patty Michaud of the communications and marketing division of the state Department of Transportation. WSDOT is looking to open the 17 miles of express lanes on I-405 next fall. Before then, officials know, they must conduct an extensive public education campaign and work with lawmakers concerned by the significance of the changes for carpoolers. First, though, the state Transportation Commission must act on the department’s recommendations concerning the operating rules and the toll rates. That won’t happen until early next year. As envisioned, WSDOT wants to define a carpool as at least three people during peak hours — essentially the morning and afternoon commutes — and two people the rest of the time. And every carpool vehicle will be required to have a switchable device to use the express lanes for free. The units will have separate modes for HOV, which stands for high occupancy vehicle, and toll. Carpoolers must switch their unit to HOV to avoid paying a toll, otherwise they’ll get a bill in the mail. The new devices, when available, will also work on the Highway 520 and Tacoma Narrows bridges and the Highway

A city of Everett crew uses a backhoe to tear down the bikini espresso stand at 12803 Highway 99 early Wednesday morning. The coffee stand was previously owned by Carmela Panico, the madam who was selling sex from several such establishments.

By Diana Hefley

Toll lanes planned on 405

Obituaries. . . .A4 Opinion. . . . . .A9

oil, animal fats and jet fuel, in a 787 Dreamliner, with the airliner performing as expected (Page A7). But if you get a faint whiff of french fries the next time you’re on a plane, it’s not the green diesel; it’s still the teenager sitting next to you. CBGB heebie jeebies: HBO plans a new dramatic series Short Takes . . .D6 Sports . . . . . . . C1

about the punk and disco music scene in 1970s New York with Martin Scorsese and Mick Jagger as executive producers and Jagger’s son, James, as the lead singer of a punk band (Page D6). I pray God takes me before HBO does a Justin Bieber, Miley Cyrus dramatic series. —Jon Bauer, Herald staff

Dreary 44/37, C6

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