Form revised August 25, 2003

FISCAL NOTE FOR CAPITAL PROJECTS ONLY

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Parks and Recreation	Sarah Welch/684-7303	Marilynne Gardner/233-5109

Legislation Title:

AN ORDINANCE relating to the City’s municipal golf courses; authorizing the Superintendent of Parks and Recreation to extend and to enter into one or more management contracts for the operation of the City’s municipal golf courses; increasing the 2003 Adopted Budget of the Department of Parks and Recreation to reflect a new management structure for the City’s three eighteen hole golf courses; transferring money; and ratifying the assumption of unpaid financial obligations and lease arrangements from the former golf operator; all by a three-fourths vote of the City Council.

Summary of the Legislation:

The proposed legislation authorizes the Superintendent of Parks and Recreation to extend the Department’s interim management contract for Interbay Golf Center with Premier Golf Centers, LLC and enter into a new management contract with the same organization for the operation of the City’s three regulation golf courses (Jackson Park, Jefferson Park, and West Seattle). It also amends the Department of Parks and Recreation’s (DPR) 2003 Adopted Budget by increasing its appropriation authority to reflect the new management structure for the three golf courses. The proposed appropriation is supported entirely by anticipated revenues from golf fees. DPR is now collecting all golf fee revenues and paying for all operating costs, including its own costs for maintaining the courses as well as a management fee paid to Premier to operate the courses. The proposed legislation also adds supplemental budget authority to CIP project K731184 Jefferson Park – Driving Range Improvements.

Background:

On January 7, 2003, via a Memorandum of Understanding, the Department of Parks and Recreation and Municipal Golf of Seattle (MGS) agreed that the public would best be served by terminating the Golf Operations Agreement between MGS and the City, dated June 30, 1995. The Memorandum of Understanding provided guidelines for the interim operation of the golf courses during the time period when the Termination Plan was finalized and executed. The transition to a new management arrangement was completed on July 14, 2003. This legislation allows DPR to effect a seamless transition in operating the three municipal courses following termination.

Project Name:	Project Location:	Start Date:	End Date:
Jefferson Park – Driving Range Improvements	4101 Beacon Ave. South.	2Q2003	3Q2004

· Please check any of the following that apply:

____ This legislation creates or funds or anticipates a new CIP Project (Please note whether the current CIP is being amended through this ordinance, or provide the Ordinance or Council Bill number of the separate legislation that has amended/is amending the CIP.)

____ This legislation does not have any financial implications.. (Stop here and delete the remainder of this document prior to saving and printing.)

__X__ This legislation has financial implications. (Please complete the boxes below and all relevant sections that follow.)

Appropriations:

Fund Name and Number	Department	Budget Control Level*	2003 Appropriation	2004 Anticipated Appropriation
Park and Recreation Fund (10200)	Parks and Recreation	Park Cleaning, Landscaping, and Restoration K3220	$2,300,000
Park and Recreation Fund (10200)	Parks and Recreation	Golf (KTD)		$3,482,000*
Cumulative Reserve Subfund – REET I (00163)	Parks and Recreation	CIP Program K72553: Jefferson Golf Crew Headquarters	$ 125,000	$0
TOTAL			$2,425,000	$3,482,000

* A new Golf Budget Control Level is established in the DPR 2004 Proposed Budget to provide better financial management for the City’s golf operations.

Notes: The appropriation in the amount of $125,000 will help pay for lighting improvements related to CIP Project K731184 Jefferson Park – Driving Range Improvements.

Anticipated Revenue/Reimbursement:

Fund Name and Number	Department	Revenue Source	2003 Revenue	2004 Revenue
Park and Recreation Fund (10200)	Parks and Recreation	Golf Fee Revenues	$2,300,000	$3,482,000
TOTAL			$2,300,000	$3,482,000

Notes:

Spending Plan and Future Appropriations for Capital Projects:

Spending Plan and Budget (in 000’s)	2003	2004	2005	2006	2007	2008	Total
Spending Plan	-	$125	-	-	-	-	$125
Current Year Appropriation	-	-	-	-	-	-	-
Future Appropriations	-	$125	-	-	-	-	$125

Key Assumptions:

The funds appropriated with this legislation allow the Department to complete the Jefferson Park Driving Range Improvement Project in the 2004 -2009 CIP (K731184).

Funding source (Identify funding sources including revenue generated from the project and the expected level of funding from each source): (in 000’s)

Funding Source	2003	2004	2005	2006	2007	2008	Total
Golf Fee Revenues initially deposited into the Park and Recreation Fund and transferred to the Cumulative Reserve Subfund	$125						$125
TOTAL	$125						$125

Note:

Bond Financing Required: Not applicable.

Type	Amount	Assumed Interest Rate	Term	Timing	Expected Annual Debt Service/Payment
TOTAL

Uses and Sources for Operation and Maintenance Costs for the Project: Not applicable.

O&M	2003	2004	2005	2006	2007	2008	Total
Uses
Start Up
On-going
Sources (itemize)

Key Assumptions:

There are no additional O&M costs as a result of this legislation.

Periodic Major Maintenance costs for the project (Estimate capital cost of performing periodic maintenance over life of facility. Please identify major work items, frequency):

Major Maintenance Item	Frequency	Cost	Likely Funding Source
TOTAL

Funding sources for replacement of project (Identify possible and/or recommended method of financing the project replacement costs):

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact: Note: A position to support the Department’s increased financial management responsibilities under the new management structure is included in the Department’s 2004 Proposed Budget.

Position Title*	Part-Time/ Full Time	2003 Positions	2003 FTE	2004 Positions**	2004 FTE**
TOTAL	0	0	0	0	0

· Fund Name and Number: _________________________________________

· Department: ___________________________________________________

* List each position separately

** 2004 positions and FTE are total 2004 position changes resulting from this legislation, not incremental changes from 2003.

· Do positions sunset in the future?: Not applicable.

· What is the financial cost of not implementing the legislation:

This legislation is required to maintain continuous operations and revenue streams at the City’s three municipal courses during a management transition precipitated by the dissolution of the non-profit agency previously contracted to operate the courses.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives (Include any potential alternatives to the proposed legislation, including using an existing facility to fulfill the uses envisioned by the proposed project, adding components to or subtracting components from the total proposed project, contracting with an outside organization to provide the services the proposed project would fill, or other alternatives): None

· Is the legislation subject to public hearing requirements: No.

· Other Issues (including long-term implications of the legislation):

The Department is planning to conduct a formal request for proposals process in mid-2004 for management of all the City’s golf courses including the Interbay facility and the three municipal courses (Jackson Park, Jefferson Park, and West Seattle).