Form revised April 13, 2004

FISCAL NOTE FOR CAPITAL PROJECTS ONLY

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Parks and Recreation	Charles Ng (684-8001)	Tyler Running-Deer (684-8075)

Legislation Title: AN ORDINANCE relating to the Department of Parks and Recreation (Department), authorizing a Memorandum of Understanding (MOU) between the Department and the Seattle Chinese Garden Society to support Phase I of the Chinese Garden; authorizing the Department’s $600,000 contribution to the Society for said project in exchange for the provision of public benefits that derive from the project and as set forth in the attached MOU.

Summary and background of the Legislation:

The City of Seattle, its Sister City of Chongqing, China, and the Seattle Chinese Garden Society have worked closely for over 15 years to develop a major Chinese Garden in Seattle that reflects the beauty and composition of an authentic Sichuan Chinese garden. To that end, the proposed location of the garden was resolved when the Seattle City Council adopted Resolution 27832 in 1988, which designated land on the campus of South Seattle Community College (SSCC) as the preferred site for the Garden, and directed the Department to complete a feasibility study. In 1989 the City Council adopted Ordinance 114521, authorizing funding to help with the preliminary design of the Garden.

From 1994 to 1998, the Society, the Seattle Community College District IV (District), and SSCC negotiated an Option Agreement and Lease for use of the site by the Society for the development and operation of the Seattle Chinese Garden. The Society is close to fulfilling the conditions of the Option Agreement as amended and negotiations between the City and Society concerning the Memorandum of Understanding (MOU) accelerated in earnest from mid 2003 to June 2004. The parties have completed negotiations and have reached agreement on the terms and conditions of the MOU. The MOU has also been reviewed and approved by the legal representatives of each party.

This legislation will authorize an MOU between the Department and the Seattle Chinese Garden Society, and will authorize a transfer of $600,000 in City funds to the Society to support Phase I of the Chinese Garden Project. The MOU requires the Society to provide a host of public benefits that result from the completion of the project over the length of the 25 year MOU. Exhibit “A” of the MOU lists these public benefits in detail. The total value of the benefits is over $2.1 million derived from free days provided to Seattle residents, reduced school group rates, free passes for the Department in support of programs and complimentary use of the Gathering Together Hall with at-cost catering. Attachment I to this fiscal note is a spreadsheet showing how this value is derived. It is also expected that the city’s $600,000 contribution will be fully recouped by these benefits at the end of the 9^th year of the MOU.

Project Name:	Project I.D.	Project Location:	Start Date:	End Date
Chinese Garden – Development	K732078	6000 16^th Avenue SW	1^st Quarter 1989	2^nd Quarter 2006

· Please check any of the following that apply:

____ This legislation creates, 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 all relevant sections that follow.)

Appropriations:

Fund Name and Number	Department	Budget Control Level*	2005 Appropriation	2006 Anticipated Appropriation
TOTAL

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

Notes:

This project, the Chinese Garden Development (K732078), currently has $500,000 of appropriation in the Cumulative Reserve Subfund (Unrestricted) in the Building Component Renovations (K72444) Budget Control Level and $100,000 in the Park and Recreation Operating Fund. This legislation does not request any additional appropriation.

Spending Plan and Future Appropriations for Capital Projects:

Spending Plan and Budget	LTD	2005	2006	2007	2008	2009	2010	Total
Spending Plan		$600,000	$0	$0	$0	$0	$0	$600,000
Current Appropriation	$600,000							$600,000
Future Appropriations		$0	$0	$0	$0	$0	$0	$0

Notes:

This is a one time contribution to the project. No future appropriations are expected to support the project.
Funding source:

Funding Source (Fund Name and Number, if applicable)	2004	2005	2006	2007	2008	2009	2010	Total
Cumulative Reserve Subfund, Unrestricted Account (00164)	$500,000	0	0	0	0	0	0	$500,000
Park and Recreation Fund (10200)	$100,000	0	0	0	0	0	0	$100,000
TOTAL	$600,000	0	0	0	0	0	0	$600,000

Notes:

No direct revenues are received by the City as a result of this legislation. Future revenues generated will be used by the Chinese Garden Society to cover operating & maintenance costs. As a result of this legislation, the City does receive the equivalent of $2.1 million in public benefit value throughout the 25 year term of the MOU.

Bond Financing Required: N/A

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

Uses and Sources for Operation and Maintenance Costs for the Project:

O&M	2005	2006	2007	2008	2009	2010	Total
Uses
Start Up	$0	$0	$0	$0	$0	$0	$0
On-going	$0	$0	$0	$0	$0	$0	$0
Sources (itemize)
	$0	$0	$0	$0	$0	$0	$0

Notes: The MOU stipulates that the Chinese Garden Society is responsible for all operations and maintenance costs for the completed Garden.

Periodic Major Maintenance costs for the project: N/A

Major Maintenance Item	Frequency	Cost	Likely Funding Source
TOTAL

Funding sources for replacement of project:

The MOU requires the Society to rebuild and replace the facility in case it is damaged or destroyed.

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact:

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

No positions are created as a result of this legislation.

· Do positions sunset in the future? N/A

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

The City would lose the opportunity to be a partner and fulfill its commitment to support the development of the Garden and forgo the $2.1 million in benefits to be derived under this MOU.

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

There are no alternatives that could achieve this objective.

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

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

This legislation commits City funds to a project with the benefits that accrue over the 25 year term of the MOU. The likelihood of not collecting on these public benefits is minimal and is considered acceptable risk.

Please list attachments to the fiscal note below:

Attachment I: Value of Benefits