Form revised December 9, 2004

FISCAL NOTE FOR CAPITAL PROJECTS ONLY

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Parks and Recreation	Paula Hoff 615-0368	Aaron Bert 684-5176

Legislation Title:

An Ordinance relating to the Olympic Sculpture Park; repealing Ordinance 121974; authorizing the execution of a Construction and Finance Agreement and an Operation and Maintenance Agreement between the Seattle Department of Parks and Recreation and the Seattle Art Museum, concerning their roles in development, construction and operation and maintenance of portions of Alaskan Way Boulevard that will be operated as part of the Olympic Sculpture Park.

Summary and background of the Legislation:

This legislation will repeal Ordinance 121974 due to Council action in the 2006 Adopted Budget authorizing an additional $2.1 million for the Olympic Sculpture Park (OSP).  Rather than negotiating new agreements with SAM, it was determined that the existing agreements as adopted under Ordinance 121974 could be amended to reflect the new appropriation.

This Council Bill authorizes the Seattle Department of Parks and Recreation (DPR) and the Seattle Art Museum (SAM) to enter into a Construction and Finance Agreement that will give SAM the authority to make improvements on the public property on the Alaskan Way Boulevard and certain areas within Myrtle Edwards Park.  These improvements will provide an outdoor sculpture park that is free and open to the public.  In addition, this Council Bill authorizes DPR to enter into an Operations and Maintenance Agreement that delineates DPR’s and SAM’s roles in operating and maintaining the public property on the Alaskan Way Boulevard and certain areas within Myrtle Edwards Park that will be improved as part of the OSP project.

Numerous City planning documents identify the need for additional public open space and the desire for public space for the arts that is free and open to the public.  The OSP actively fulfills this need.  As part of the OSP, in December,1999, SAM acquired two upland parcels and one tideland parcel in Belltown from Unocal.  The City of Seattle purchased the 10 Broad Street property in 2001 and Ordinance 120305 authorized the Superintendent of Parks and Recreation to negotiate the transfer of the 10 Broad Street property to the Museum Development Authority for inclusion in the development for the OSP.  A letter from SAM accompanied Ordinance 120305, authorizing the purchase of 10 Broad Street, in which SAM committed to contribute $2 million in privately raised funds towards public improvements on the Alaskan Way Boulevard.     

DPR and SAM entered into a Design Agreement in June of 2000, which began a cooperative design effort resulting in the final design concept for the OSP, including what is now referred to as the Alaskan Way Boulevard and improvements to Myrtle Edwards Park.  An underlying agreement has always existed, which states the OSP will be free of charge and open to the public, and will create a seamless connection from Belltown to Myrtle Edwards Park.

On November 7, 2000, City voters approved the Neighborhood Parks, Green Spaces, Trails, and Zoo Levy (2000 Parks Levy).  One of the provisions of the 2000 Parks Levy was funding for a waterfront connection from Myrtle Edwards Park to the Belltown Area.  The design of the OSP incorporates an elevated pedestrian walkway allowing for pedestrian connections from Broad Street to Myrtle Edwards Park, as well as providing an at grade connection for pedestrian and non-motorized vehicles over the Alaskan Way Boulevard.

During the 2006 Council budget deliberations and the budget’s subsequent adoption via Ordinance 121991 (specifically Council Greensheet 72-3-A-1 & 72-1-A-1.), an additional $2.1 million in Real Estate Excise Tax (REET) was appropriated for this project.  Of the $2.1 million, $1.5 million was appropriated from REET I to pay for improvements within the Alaskan Way Boulevard, and  $600,000 was appropriated from REET II to pay for improvements on the seawall.

Project Name:	Project I.D.	Project Location:	Start Date:	End Date
OSP – Olympic Sculpture Park Devel./Alaskan Way Improvements	K731006	3130 Alaskan Way	June 2000	TBD
Project Name:	Project I.D.	Project Location:	Start Date:	End Date
OSP – Belltown/Lower Queen Anne Waterfront Connections	K733135	3130 Alaskan Way	July 2001	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	DPR		600,000	0
Cumulative Reserve Subfund – REET I 00163	DPR		1,500,000	0
TOTAL			2,100,00

Notes:  This legislation does result in a new appropriation.

Spending Plan and Future Appropriations for Capital Projects:

Spending Plan and Budget	2006	2007	2008	2009	2011	2011	Total
Spending Plan	$2.1m
Current Year Appropriation	$2.1m
Future Appropriations

Notes:  This legislation does result in a new appropriation.  The $2,100,000 was appropriated under Ordinance 121991, specifically Council Greensheet 72-3-A-1 & 72-1-A-1.

Funding source: Identify funding sources including revenue generated from the project and the expected level of funding from each source.

Funding Source (Fund Name and Number, if applicable)	2006	2007	2008	2009	2010	2011	Total
Cumulative Reserve Subfund - REET II 00161	600,000						600,000
Cumulative Reserve Subfund – REET I 00163	1,500,000						1,500,000
TOTAL							2,100,000

Notes:  This legislation does not result in any new appropriation for funds from the Shoreline Park Improvement Fund, 2000 Pro Parks Levy Fund, Cumulative Reserve Subfund and private donations.  A new appropriation of $2.1 million is made from REET. No revenue has been generated.

Bond Financing Required:

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

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

O&M	2005	2006	2007	2008	2009	2010*	Total
Uses
Start Up
On-going			8,420	8,630	8,840	11,550	37,440
Sources (itemize)
General Fund			8,420	8,630	8,840	11,550	37,440

Notes:

The increased maintenance tasks associated with the shoreline component of this project includes restoration of native plants and removal of invasives along the beach area and along the water front, increased litter and garbage pick up, general shoreline cleaning, periodic inspection of shoreline, soil, sand and rip rap condition and minor concrete work*.  

Additional costs will also include increased utilities (water), fuel, operating and maintenance equipment and supplies, etc.  Myrtle Edwards Park is located in high use area and increased use is expected with the shoreline improvements coupled with the larger components of the OSP project.  The costs identified above include a 2% inflation factor each year.  

*The O&M estimate does not include the costs of maintaining the seawall buttress, rip rap replenishment or embayment renurishment, as these are considered major maintenance costs.  (See chart below.)   Additionally, this estimate assumes that SAM will take responsibility for the first three years of plant establishment beginning in 2007; in 2010, our costs include maintenance of the new plants.  If the scope of the project or responsibility for the maintenance component changes, the O&M costs will need to be reevaluated accordingly.

Periodic Major Maintenance costs for the project:

Major Maintenance Item	Frequency	Cost	Likely Funding Source
Rip Rap Replenishment for Seawall Buttress	10 years	200,000	CRF and Possibly Beach Maintenance Trust Fund
Embayment	10 years	50,000	CRF and Possibly Beach Maintenance Trust Fund
TOTAL		250,000

Funding sources for replacement of project: 

N/A

What is the financial cost of not implementing the legislation:

The City would lose an opportunity for a significant contribution of park space that is free and open to the public in an underserved area,.  The OSP will provide seamless connections from Belltown to the shoreline and Myrtle Edwards Park.  The City’s funding for the OSP to date is $2.8 million

· What are the possible alternatives to the legislation that could achieve the same or similar objectives:  These agreements are the result of negotiations between the Seattle Art Museum and the City to allow the Olympic Sculpture Park project to move forward, utilizing City owned property. 

· Is the legislation subject to public hearing requirements:    Resolution 30096, requires a public hearing and notice before the City appropriates or commits to appropriate $5 million in funding for a capital project.  This $2,100,000 of additional funding will bring the total City funding in the OSP project to $4,900,000.  (The $1,500,000 of ProParks Levy funding is voter-approved funding and therefore not counted for purposes of Resolution 30096.)

·

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

N/A