Form revised November 11, 2008

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Seattle Center	Michael Moon 684-7112 Ned Dunn, 684-7212 Helaine Honig, Law, 684-8222	Amy Williams, 233-2651

Legislation Title:

AN ORDINANCE relating to the Seattle Center Department; authorizing execution of an agreement with Festivals, Inc. for the presentation of annual Bite of Seattle festivals at Seattle Center.

· Summary of the Legislation:

This legislation authorizes a three-year agreement between the City of Seattle and Festivals, Inc. for the presentation of the 2009, 2010, and 2011 Bite of Seattle Festivals at Seattle Center.

· Background: (Include brief description of the purpose and context of legislation and include record of previous legislation and funding history, if applicable):

The Bite of Seattle is one of four major festivals held annually on the Seattle Center campus.  The other three festivals are Giant Magnet (formerly known as the Seattle International Children’s Festival), Northwest Folklife Festival, and Bumbershoot.  Each festival has its own unique relationship with the City.  Bumbershoot, produced by One Reel, is structured to cover Seattle Center’s marginal costs.  Giant Magnet and Folklife both receive direct City support.  The Bite of Seattle is the only purely commercial event of the four major festivals.  In 2008, Seattle Center netted $70,000 from the Bite, not including parking revenue.  Seattle Center projects a similar net income from the Bite in 2009 under the new three-year agreement.

The new agreement includes the same financial terms as the previous agreement.   As in prior years, the City receives a percentage of all food, beverage and merchandise sales.  Festivals, Inc. pays a landscape fee and reimburses the City of all applicable costs, including labor, utilities and fees. The Bite also pays the City a fee for the use of on-duty police officers at the event.  This fee is tied to the Special Events rate schedule.  The 2008 rate is $31,180.  In addition, the Bite hires off-duty police to carry out its approved security plan.  A more detailed summary of the three primary revenue sources follows.

(1) Percentage of Food and Beverage Sales, plus fee for vendor booths

The percentage of food and beverage sales received by the City continues to be 10% on food and wine and 20% on beer, spirits, and merchandise sales other than from craft and commercial vendors.  For craft vendors and commercial vendors, the City will receive the greater of $90 per booth or a total of $5,490.

(2) Landscape (Grounds Restoration) Fee

The landscape fee paid by the Bite has an annual cost of living adjustment subject to a 3% cap and the stipulation that the fee will never be less than the preceding year.  For 2009, the landscape fee is $37,846.

(3) Reimbursement for Event-Related Labor and Nonlabor Costs

Seattle Center charges an hourly rate to the festival for the cost of departmental staff involved in event set-up, event support, and event clean-up.  Services, materials, or supplies required for the festival, including utilities and fees, are also charged back to the Bite.

The agreement also encourages cross-promotional opportunities, such as linked websites, and provides one booth for the exclusive use of Seattle Center in which to promote Seattle Center activities and events.

The 2009 Bite of Seattle, scheduled for July 17-19, will be the 28^th annual Bite of Seattle, and the 24^th held at Seattle Center.  Each year the Bite of Seattle attracts one of the largest and most diverse audiences to Seattle Center to enjoy food from around the world.   In 2010, the Bite is scheduled for July 16-18, and in 2011 for July 15-17.

· Please check one of the following:

____ 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:  This table should reflect appropriations that are a direct result of this legislation.  In the event that the project/programs associated with this ordinance had, or will have, appropriations in other legislation, please provide details in the Notes section below.

Fund Name and Number	Department	Budget Control Level*	2009 Appropriation	2010 Anticipated Appropriation
TOTAL

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

Notes: 

This legislation does not authorize appropriations.

Anticipated Revenue/Reimbursement: Resulting From This Legislation: This table should reflect revenues/reimbursements that are a direct result of this legislation.  In the event that the issues/projects associated with this ordinance/resolution have revenues or reimbursements that were, or will be, received because of previous or future legislation or budget actions, please provide details in the Notes section below the table.

Fund Name and Number	Department	Revenue Source	2009 Revenue	2010 Revenue
11410	Seattle Center	% of Food and Beverage Sales	$104,546	$107,891
		Grounds Restoration Fee	$37,846	$38,754
		Reimbursement for event labor and non-labor expenses	$51,874	$53,236
TOTAL			$194,266	$199,881

Notes:

The 2009-2010 Adopted Budget includes these revenues.  See expenses below.

Total Regular Positions Created, Modified, Or Abrogated Through This Legislation, Including FTE Impact:  This table should only reflect the actual number of positions affected by this legislation.   In the event that positions have been, or will be, created as a result of other legislation, please provide details in the Notes section below the table.

Position Title and Department	Position # for Existing Positions	Fund Name & #	PT/FT	2009 Positions	2009 FTE	2010 Positions*	2010 FTE*
TOTAL

* 2010 positions and FTE are total 2010 position changes resulting from this legislation, not incremental changes.  Therefore, under 2010, please be sure to include any continuing positions from 2009.

Notes:

This legislation does not create or abrogate positions.

· Do positions sunset in the future?  (If yes, identify sunset date):      N/A

Spending/Cash Flow: This table should be completed only in those cases where part or all of the funds authorized by this legislation will be spent in a different year than when they were appropriated (e.g., as in the case of certain grants and capital projects).  Details surrounding spending that will occur in future years should be provided in the Notes section below the table.

Fund Name & #	Department	Budget Control Level*	2009 Expenditures	2010 Anticipated Expenditures
11410	Seattle Center	Festivals	$124,000	$127,000
TOTAL

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

Notes:

The above numbers are Seattle Center’s costs for hosting the Bite of Seattle.  These expenses include:

	2009	2010
Event Support (Sound, Stage, Admissions)	$43,600	$45,000
Grounds and Facilities Support	$80,400	$82,000
TOTAL	$124,000	$127,000

Revenue net of costs (see above) is estimated at $70,266 in 2009 and 72,881 in 2010.  These figures do not include Seattle Center parking revenue, which is not directly attributable to specific events.

· What is the financial cost of not implementing the legislation? (Estimate the costs to the City of not implementing the legislation, including estimated costs to maintain or expand an existing facility or the cost avoidance due to replacement of an existing facility, potential conflicts with regulatory requirements, or other potential costs if the legislation is not implemented.)

Without legislation authorizing the agreement to produce the event, Seattle Center net operating revenues would decline, unless the Bite of Seattle were replaced by another event or events that produced a similar level of net revenue.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives? (Include any potential alternatives to the proposed legislation, such as reducing fee-supported activities, identifying outside funding sources for fee-supported activities, etc.)

As one of four major festivals held annually at Seattle Center, the Bite of Seattle is recognized as a signature Seattle Center event. Alternatives to this legislation include finding another festival company to operate a large festival in place of the Bite.

· Is the legislation subject to public hearing requirements:  (If yes, what public hearings have been held to date, and/or what plans are in place to hold a public hearing(s) in the future.)

No.

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

This legislation allows Seattle Center to continue offering a popular festival event that annually attracts a large and diverse audience to the Seattle Center campus.

Please list attachments to the fiscal note below: