For me in Seattle, I would fix the front derailleur and try different cranks that can do a lower tooth count small chainring, and a larger count freewheel.

In honesty, you can get around just fine with 52/42 up front and 12-28 freewheel. Queen Anne Ave. would be a little stiff going up the last stretch. lol

Have you had a chance to visit Bikeworks? they are a local nonprofit I like to shop at. I also favor Recycled Cycles.