Form revised March 16, 2004

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Parks and Recreation	John Braden 386-4350	Marilynne Gardner 233-5109

Legislation Title:

AN ORDINANCE relating to the Department of Parks and Recreation; authorizing the execution of a two concession agreement with Seattle Omnidome, Inc. to operate an IMAX Theater at the Seattle Aquarium at Pier 59.

· Summary of the Legislation:

The proposed legislation authorizes the Superintendent of Parks and Recreation to enter into a short-term concession agreement with Seattle Omnidome, Incorporated to operate the IMAX Dome Theater at the Seattle Aquarium on Pier 59.

· Background:

The concession agreements to operate a restaurant, theater, and gift shop on Pier 59 expired at the end of 2003. Because a major renovation of Pier 59 is anticipated to begin in late 2005, the Department of Parks and Recreation has elected to enter into short-term leases to operate these facilities until construction begins.

Seattle Omnidome has operated the IMAX Dome Theater at this location since the Aquarium was opened in 1980. The proposed agreement incorporates operational changes to an existing agreement, including insurance provisions, maintenance responsibilities, and restrictions on sale of merchandise unrelated to the theater operation. However, the financial terms are essentially unchanged. The proposed agreement requires the operator to maintain the theater and pay for maintenance of restrooms.

Major renovations to Pier 59 are anticipated to begin in late 2005. The entire east end will be rebuilt and the area in which the theater is located will be demolished and rebuilt. It is not anticipated that the renovated facility will include a theater. This decision was made in order to relocate the Aquarium’s entrance to Alaskan Way and expand the Aquarium’s exhibits, and to improve visitor amenities.

Please check one of the following:

____ This legislation does not have any financial implications.

__X__ This legislation has financial implications.

Appropriations: No appropriation is requested as a result of the proposed legislation.

Fund Name and Number	Department	Budget Control Level*	2004 Appropriation	2005 Anticipated Appropriation
TOTAL

*See budget book to obtain the appropriate Budget Control Level for your department.

Notes:

Anticipated Revenue/Reimbursement: Resulting From This Legislation:

Fund Name and Number	Department	Revenue Source	2004 Revenue	2005 Revenue
Park and Recreation Fund (10200)	Parks and Recreation	Annual Concession Payments from Seattle Omnidome, Inc.	$60,000	$45,000
TOTAL			$60,000	$45,000

Notes: The Concession Agreement guarantees a minimum $60,000 payment to the City, with a percentage of gross sales if the minimum is exceeded. Based upon revenues received from operation of the Omnidome Theatre from 1999-2003, it is not anticipated that the payment to the City will exceed the minimum established. Anticipated revenue in 2005 assumes that the Pier 59 construction project will be underway in the 4^th quarter of the year.

The annual revenue from the Imax Dome since 1999 was as follows:

1999 $ 66,946

2000 $ 53,006

2001 $ 56,107

2002 $ 58,316

2003 $ 60,805

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact: Not applicable.

Position Title and Department*		Fund Name	Fund Number	Part-Time/ Full Time	2004 Positions	2004 FTE	2005 Positions**	2005 FTE**
	TOTAL

* List each position separately

** 2005 positions and FTE are total 2005 position changes resulting from this legislation, not incremental changes. Therefore, under 2005, please be sure to include any continuing positions from 2004.

Notes:

· Do positions sunset in the future? No.

Spending/Cash Flow: Not applicable.

Fund Name and Number	Department	Budget Control Level*	2004 Expenditures	2005 Anticipated Expenditures
TOTAL

* See budget book to obtain the appropriate Budget Control Level for your department.

Notes:

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

The City will lose at least $60,000 in revenue to operate the Aquarium.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives?:

The theater is a specialized facility that is not conducive to other uses. The Department could have sought another operator for the theater, but the two- year limitation due to the anticipated renovation makes the investment in capital improvements that would be required by a new operator not financially feasible.

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

· Other Issues:

The renovations have been scheduled for the off-season to minimize the impact on revenues. With the completion of the renovations, increased attendance resulting form the new entrance and exhibits is projected to more than cover the absence of revenue from the theater.

Please list attachments to the fiscal note below: