Form revised December 8, 2005

FISCAL NOTE FOR CAPITAL PROJECTS ONLY

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Parks & Recreation	Korie Voorheis (684-4135)/ Norm Schwab (684-9292)	Aaron Bert (684-5176)

Legislation Title:

AN ORDINANCE relating to the South Lake Union Park Development Project; amending the 2006 Adopted Budget of the Department of Parks and Recreation including transferring appropriations; all by a three-fourths vote of the City Council.

Summary and background of the Legislation:

The proposed legislation would amend the 2006 Adopted Budget to allow for construction of Phase I of the South Lake Union (SLU) Park Development project.

Three major pieces of prior legislation comprise the core elements of this project. Initial authorization and $5 million in funding for the project (South Lake Union Park – Development K733134) is provided by the 2000 Neighborhood Parks, Green Spaces, Trails, and Zoo Levy. Outside funding was leveraged for this project by Ordinance 121902, which allowed the Department to accept a $5 million grant from City Investors, a private funder. The final piece of legislation was Ordinance 121963. This Ordinance authorized the execution of an agreement between the Seattle Department of Parks and Recreation and the Seattle Parks Foundation providing for the Foundation to raise and donate $10 million to the City for the development of the South Lake Union Park. The Department will also receive a grant from the Washington State Interagency Committee for Outdoor Recreation in the amount of $190,042. Additionally, City Investors has committed to donating another $5 million to the project, contingent on certain conditions being met by the City of Seattle, including:

o The City has approved a final and complete SLU Park Improvement Plan (hereinafter referred to as the "Final Plan").

o The Seattle Parks Foundation and the City have secured all remaining funds needed to complete the Final Plan, less the additional funds from City Investors. It is the parties' intent that the additional funds from City Investors be the final dollars contributed to complete construction of the Final Plan.

o The City shall be within one (1) year of commencing construction on a reconfiguration of Valley Street as described and depicted in Attachment C to Ordinance 121902. A funding plan for the Valley Street Improvements is to be in place and all applicable environmental review requirements are to be fully satisfied with related appeal periods expired.

This is a two phase project. Phase I includes constructing terraces, a boardwalk, a pedestrian bridge, replacement of the existing bulkhead, and installation of utilities. Phase II includes a new pedestrian and vehicle entry on Valley street, building a centerpiece fountain, installation of a “Great Lawn,” installing a model boat pond, and additional landscaping throughout the park.

The original budget for Phase I was $10 million. This estimate increased by approximately $4.23 million when it was determined that the existing bulkhead walls (both north and west) are near the end of their useful lifespan. Designers explored three alternatives to the original design for complete bulkhead replacement: 1) reinforcement of existing walls by shoring both walls on the water side; 2) replacement of one wall and shoring the second wall; or 3) pulling the northern edge of the park back by 27 feet, thus eliminating approximately 8,000 square feet of park land to accommodate less costly walls and reducing the length of the west wall. The South Lake Union Park Project Review Committee (Parks, Park Foundation, Center for Wooden Boats, Vulcan) determined that none of the presented options were feasible.

In reviewing the possibility of temporarily extending the life of the bulkhead walls at a lower cost (option 1), the engineers determined that a temporary fix would only increase the life expectancy by approximately 5 – 10 years and would require the park be torn up to allow for construction of new walls in 5-10 years. Additionally, this option posed a higher risk in construction due to its reliance on using a portion of the existing bulkhead.

Option 2 would increase the life expectancy by approximately 10 – 15 years and would require the park be torn up to allow for construction of new walls in 10-15 years. This option would cost at least another $1.8 million to construct and would not allow for deep water moorage on one side.

Option 3 would have a life expectancy of 50 years, but would reduce the size of the park and the westerly boardwalk, and eliminate the possibility of deep water ship moorage.

In order to provide for a permanent (50 year life) replacement of the bulkhead walls and maintain the footprint of the park and all planned amenities, the Department will need to add $4.23 million to the existing budget. The proposed legislation provides various sources of funding for the $4.23 million including a new appropriation of $2.58 million from the Cumulative Reserve Subfund REET II, and $1.65 million through transfers of current appropriation authority:

• $850,000 in funding from the Cumulative Reserve Fund (Unrestricted) will be transferred from the Olympic Sculpture Park Development project (K731006). These funds were provided as interim funding until reimbursement was received from the King County Conservation Futures Fund.
• $500,000 in funding from Cumulative Reserve Fund (REET II) will be transferred from the Sand Point/Magnuson Park Shoreline Renovation project (K732277); these funds will need to be replaced in 2007. This project has been delayed due to the discovery of hazardous waste and a subsequent agreement with the Army Corps of Engineers to provide mitigation of this waste.
• $100,000 from the Cumulative Reserve Fund (REET II) will be transferred from the Bobby Morris Ballfield Renovation project (K732074). This project was completed in 2005 under budget.
• $65,000 from the Cumulative Reserve Fund (REET II) will be transferred from Southwest Community Center – Teen Center project (K73122), which was completed in 2005 with budget savings.
• $135,000 from the Cumulative Reserve Fund (REET I) will be transferred from the Northgate Community Center project (K73484). Funding for the Northgate project will temporarily be replaced by transferring Community Center Levy Fund appropriation from the Belltown Community Center project, which is not expected to need its full appropriation in 2006. (Because this transfer will be within the same BCL and Fund Source it does not need new legislative approval.)

Budget appropriation for the Belltown project will be replaced in the 2007 budget. This 2007 appropriation for Belltown will be funded by interest earnings from the 1999 Community Center Levy Fund (33800). The fund currently has a projected balance of over $500,000 following completion of all nine community center projects. There are currently two centers under construction (Northgate and Van Asselt) and one center in the planning stage (Belltown). All other Community Center Levy projects are completed.

Project Name:	Project I.D.	Project Location:	Start Date:	End Date
South Lake Union Park – Development	K733134	1000 Valley Street	1^st Quarter 2002	TBD

· Please check any of the following that apply:

____ This legislation creates, funds, or anticipates a new CIP Project.

____ This legislation does not have any financial implications.

__X__ This legislation has financial implications.

Appropriations:

Fund Name and Number	Department	Budget Control Level*	2006 Appropriation	2007 Anticipated Appropriation
Cumulative Reserve Subfund – REET II (00161)	Parks & Recreation	2000 Parks Levy – Major Park Development (K723004)	$2,578,000	$0
Cumulative Reserve Subfund – REET I (00163)	Parks and Recreation	1999 Community Center Improvements (K72654)	($135,000)	$0
Cumulative Reserve Subfund – REET I (00163)	Parks and Recreation	2000 Parks Levy – Major Park Development (K723004)	$135,000	$0
Cumulative Reserve Subfund - Unrestricted (00164)	Parks and Recreation	2000 Parks Levy – Major Park Development (K723004)	$850,000	$0
Cumulative Reserve Subfund – REET II (00161)	Parks and Recreation	Docks/Piers/Floats/Seawalls/ Shorelines (K72447)	($500,000)	$0
Cumulative Reserve Subfund – REET II (00161)	Parks and Recreation	2000 Parks Levy – Major Park Development (K723004)	$500,000	$0
Cumulative Reserve Subfund – REET II (00161)	Parks and Recreation	Ballfields/ Athletic Courts/ Play Areas (K72445)	($100,000)	$0
Cumulative Reserve Subfund – REET II (00161)	Parks and Recreation	2000 Parks Levy – Major Park Development (K723004)	$100,000	$0
Cumulative Reserve Subfund – REET II (00161)	Parks and Recreation	2000 Parks Levy – Neighborhood Park Development (K723003)	($65,000)	$0
Cumulative Reserve Subfund – REET II (00161)	Parks and Recreation	2000 Parks Levy – Major Park Development (K723004)	$65,000	$0
TOTAL			$3,428,000	$0

Notes:

Spending Plan and Future Appropriations for Capital Projects: Amounts listed in ‘000’s.

Spending Plan and Budget	Prior Years	2006	2007	2008	2009	2010	Total
Spending Plan	3,375	10,818	1,131	13,904	0	0	29,228
Prior Appropriation	9,490	700					10,190
Future Appropriations		4,228	5,000	9,810	0	0	19,038

Notes: The funds appropriated by this legislation, along with funds previously appropriated, will cover the cost of Phase I of the development project. It is anticipated that an additional $10 million will be raised by the Seattle Parks Foundation and will be dispersed to DPR throughout the fundraising campaign.

Funding source:

Funding Source (Fund Name and Number, if applicable) in $000’s	Prior Years	2006	2007	2008	2009	2010	Total
2000 Parks Levy Fund (33850)	4,300	700	0	0	0	0	5,000
2000 Parks Levy Fund (33850) (State Grant Funds)	190	0	0	0	0	0	190
2000 Parks Levy Fund (33850) (Grant from City Investors)	5,000	0	0	5,000	0	0	10,000
Cumulative Reserve Subfund REET II – (00161)	0	2,578	0	0	0	0	2,578
Cumulative Reserve Subfund – Unrestricted (00164)	0	850	0	0	0	0	850
Cumulative Reserve Subfund – REET I (00163)	0	135	0	0	0	0	135
Cumulative Reserve Subfund – REET II (00161)	0	665	0	0	0	0	665
South Lake Union Park Trust Fund (63721) – Private Fundraising	0	0	5,000	4,810	0	0	9,810
TOTAL	9,490	4,928	5,000	9,810	0	0	29,228

Notes:

Bond Financing Required: NA

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	2006	2007	2008	2009	2010	2011	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: There are no new O&M costs associated with this legislation.

Periodic Major Maintenance costs for the project: NA. The major maintenance costs of this project will not change as a result of the project changes funded through this legislation.

Major Maintenance Item	Frequency	Cost	Likely Funding Source
TOTAL

Funding sources for replacement of project

NA

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

Position Title and Department*		Fund Name	Fund Number	Part-Time/ Full Time	2006 Positions	2006 FTE	2007 Positions**	2007 FTE**
	TOTAL

Notes: There are no new regular positions created as a result of this legislation.

· Do positions sunset in the future? NA

· What is the financial cost of not implementing the legislation: If this legislation is not implemented, the bulkhead walls will need to be replaced within 5-15 years and certain key elements of the park such as the terraces could not be built until bulkhead replacement occurred.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives: There are no other alternatives that will achieve the objective of providing deep water moorage, a complete bulkhead replacement, and the installation of terraces, a boardwalk, and a bridge. The alternative to use a portion of the existing walls and replace them at a later date could cost at least an additional $1.8 million (2005 dollars), will significantly limit the life expectancy of the bulkhead and will delay the construction of Phase I that is planned to commence in the 2^nd quarter of 2006.

· Is the legislation subject to public hearing requirements:

This legislation is not subject to any public hearing requirements as the project was approved in the 2000 Neighborhood Parks, Green Spaces, Trails and Zoo Levy and, thus, is exempt from the City's hearing procedure. However, the schematic plan for the development of SLU Park was completed in 2004, and it included extensive public outreach and input. Six public meetings were held between December 2002 and December 2005. In addition, there have been six community meetings and three public workshops.

· Other Issues:

Please list attachments to the fiscal note below: