AN ORDINANCE relating to Local Improvement District (LID) No. 6750 (to construct a modern streetcar line serving downtown Seattle, Denny Triangle, and South Lake Union); adding a new section to Ordinance 121951 to authorize filing and confirmation of the final assessment roll before completion and acceptance of the improvement; appointing a hearing officer; authorizing the dollar amount for the Maximum Allowable Construction Contract (MACC); and ratifying and confirming prior acts; all by a two thirds vote of the City Council.

WHEREAS, Article VII, Section 9, of the Washington Constitution authorizes the legislature to vest special assessment powers in cities by statutory enactment, and the legislature has vested such powers to cities in, among others, chapters 35.43 and 35.44 RCW; and

WHEREAS, the City of Seattle established and codified in chapter 20.04 SMC certain procedures for the management of LID processes, and those procedures have not encompassed the full range of options for preparing the final assessment roll while an improvement is under way, as allowed in Chapters 35.43 and 35.44 RCW; and

WHEREAS, by passing Council Bill 115504, amending chapter 20.04 SMC, the City Council has reconciled the procedures for management of LID processes consistent with the City's statutory powers; and

WHEREAS, the ordinance that was introduced as Council Bill 115504, amending chapter 20.04 SMC, authorizes consideration of a final assessment roll at any time before, during or after the commencement or completion of the improvement; and

WHEREAS, Ordinance 121951 passed by the City Council on October 3, 2005, ordered the construction of a modern streetcar line serving downtown Seattle, Denny Triangle, and South Lake Union and created LID No. 6750; and

WHEREAS, work is under way on portions of the improvement ordered in Ordinance 121951 (for example, the acquisition of street cars); and

WHEREAS, if the City applies the remaining $2 million in South Lake Union property proceeds towards the South Lake Union Streetcar capital costs, as authorized in Ordinance 121951, a $2.8 million gap between project revenues and expenditures will remain; and

WHEREAS, Ordinance 121850 states that General Fund will not be used for the South Lake Union Streetcar line except as authorized in Section 1 of that ordinance; and

WHEREAS, the City Council directs the Executive to continue working to secure alternative funding sources, other than the City's General Fund, to pay for any gap between the revenues and expenses associated with the construction of the South Lake Union Streetcar project; and

WHEREAS, although it is the City Council's preference that the Executive secure grant revenues to pay for the gap between revenues and capital costs associated with the South Lake Union Streetcar project, the Executive has proposed using up to $2.5 million in revenues from the South Lake Union Developer Mitigation Payment Program and developer mitigation payments from other neighborhoods along the streetcar line if the Executive is unsuccessful in securing the necessary grants; and

WHEREAS, the Council intends to use funds from the South Lake Union Developer Mitigation Payment Program and developer mitigation payments from other neighborhoods along the streetcar line if the City does not receive additional grants to cover the gap between revenues and capital costs; and

WHEREAS, the Executive has agreed to provide the Transportation Committee with written quarterly reports on the revenues and expenditures associated with the construction of the South Lake Union Streetcar as described in Section 6 of this ordinance; and

WHEREAS, after completion of construction the Executive will provide the City Council with a final accounting of revenues and costs for the construction of the South Lake Union Streetcar project; and

WHEREAS, after consulting with LID assessment payers and the City Council's Transportation Committee, the Executive will recommend a plan for paying for any gap between revenues and capital costs; and

WHEREAS, the Executive's plan may include all revenue sources the city is authorized to use exclusive of General Fund revenue to cover any gap between revenues and capital costs; and

WHEREAS, the current proposal to pay for the South Lake Union Streetcar contemplates a LID at $26.2 million; and

WHEREAS, the City Council has the authority to reassess or supplement the final assessment roll for LID 6750, pursuant to Chapter 35.44 RCW, to help pay for any difference between revenues and capital costs; and

WHEREAS, the City Council finds it appropriate to authorize the maximum dollar amount of the Maximum Allowable Construction Contract (MACC) authorized under Ordinance 121951; and

WHEREAS, the proposed assessment roll for LID No. 6750 has been prepared as provided by law, and the Council wishes to consider and finalize the assessment roll for LID No. 6750 prior to completion of the improvement in LID No. 6750; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. The Director of Transportation is authorized to file with the City Clerk the proposed final assessment roll for LID No. 6750 in accordance with Section 4 of this ordinance.

Section 2. Rodney Kerslake is appointed to serve as the City Council's hearing officer for considering the final assessment roll for LID No. 6750.

Section 3. Hearings on the final assessment roll for LID No. 6750 may occur before or after award of the improvement contract and commencement of work, and may occur before or after completion and acceptance of the improvement.

Section 4. A new subsection is added to Section 9 of Ordinance 121951, as follows:

Section 9. Filing of Preliminary and Final Assessment Rolls

A. Not later than 15 days after the passage of this ordinance, the Director of Transportation shall file with the Director of Executive Administration the title of the improvement and LID number, a copy of the diagram or print showing the boundaries of the LID and the preliminary assessment roll or abstract of such roll showing thereon the lots, tracts and parcels of land that will be specially benefited thereby and the estimated cost and expense of such improvement to be borne by each lot, tract or parcel of land. The Director of Executive Administration immediately shall post the proposed assessment roll upon his index of local improvement assessments against the properties affected by the local improvement.

B. Filing of the proposed final assessment roll and commencement of the hearing on the final assessment roll related to LID 6750 shall occur prior to completion and acceptance of the improvement, and the final assessment roll may be confirmed before or after completion and acceptance of the improvement.

Section 5. Consistent with Section 6 of Ordinance 121951, the City Council approves any amount not to exceed $31,597,056 for the MACC for construction of the South Lake Union Streetcar.

Section 6. The City Council requests that the Executive provide quarterly written reports to the City Council Transportation Committee on the status of the South Lake Union Streetcar project for the duration of project construction. The first report should be submitted no later than June 30, 2006. The report should include, but not be limited to, the status of the outstanding revenue gap and potential fund sources to address that gap (including grant requests, the sale of the development rights adjacent to the proposed South Lake Union Streetcar maintenance base, the amount of funds available from the City's South Lake Union Developer Mitigation Payment Program and developer mitigation payments from other neighborhoods along the streetcar line, and any other potential non-general fund sources), and information related to project costs and schedule that will enable the Council to determine if the South Lake Union Streetcar project is proceeding on-time and on-budget.

Section 7. Any acts pursuant to the authority and prior to the effective date of this ordinance are hereby ratified and confirmed.

Section 8. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by a two-thirds vote of all the members of the City Council the ___ day of ___________, 2006, and signed by me in open session in authentication of its passage this ___ day of _____________, 2006. _____________________________________________ President _______________ of the City Council

Approved by me this _________ day of ____________________, 2006. _____________________________________________ Gregory J. Nickels, Mayor

Filed by me this __________ day of _____________________, 2006. ____________________________________________ City Clerk

3/27/06 (Ver. 5) ta