Form revised: December 17, 2010

FISCAL NOTE FOR CAPITAL PROJECTS ONLY

Department:	Contact Person/Phone:	CBO Analyst/Phone:
Parks and Recreation	Terry Roche/ 233-2776	Amy Williams/ 233-2651

Legislation Title: AN ORDINANCE relating to the Opportunity Fund category of the 2008 Parks and Green Spaces Levy; accepting the recommendations of the 2008 Parks and Green Spaces Levy Oversight Committee; authorizing the acquisition of real property commonly known as 18th Ave. SW & SW Brandon St. (Puget Ridge Edible Park) and 19^th and Madison Neighborhood Park; authorizing acceptance of the deeds for open space, park, and recreation purposes; amending the 2011 Adopted Budget and 2011-2016 Capital Improvement Program; and increasing appropriations in connection thereto; and ratifying and confirming certain prior acts, all by a three-fourths vote of the City Council.

Summary and background of the Legislation:

This legislation accepts the 2008 Parks and Green Spaces Levy Oversight Committee’s recommendations for the first funding cycle of the Opportunity Fund. It increases the Department of Parks and Recreation’s 2011 budget appropriation by $6,966,000 for 13 development projects and two property acquisitions. The development of these projects will also lead to increased operating costs for the Department beginning in 2012. These costs increase each year as more projects are complete, and the estimated ongoing annual impact to the Department’s operating budget after all 13 projects are finished is $130,000.

On November 4, 2008, Seattle voters approved a six-year property tax levy, which included a $15,000,000 Opportunity Fund. The Opportunity Fund is a designated funding source for acquisition and development projects not identified for funding in the remainder of the 2008 Parks Levy program. The levy established the Oversight Committee to help guide the evaluation of projects and to recommend Opportunity Fund awards to the Superintendent, Mayor, and City Council.

The Oversight Committee recommended two funding cycles for the Opportunity Fund, one in 2011 and the second in 2012. After an extensive public process over the past year, the Oversight Committee recommends 13 development projects shown in Exhibit C and two acquisitions shown in Exhibits A and B.

The total funding required for the 13 development projects is $5,973,000, and this legislation adds each project to the 2008 Parks Levy-Opportunity Fund Development program (K720041).

The total funding required for the two property acquisitions is $993,000. This amount provides $520,000 to purchase property in the West Seattle neighborhood at 18th Ave. SW & SW Brandon St. (Puget Ridge Edible Park- Exhibit A), and $473,000 to purchase property in the Central District-Capitol Hill neighborhood (19^th & Madison Neighborhood Park-Exhibit B). This appropriation is included in the 2008 Parks Levy Acquisition Opportunity Fund (K720040) program. The two property acquisitions have willing sellers and are ready to move forward. This legislation authorizes the acquisition of the two properties and acceptance of the property deeds.

Please check any of the following that apply:

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

The current CIP is being amended through this legislation.

____ This legislation does not have any financial implications.

_X_ This legislation has financial implications.

Appropriations:

Fund Name and Number	Department	Budget Control Level*	Existing 2010 Appropriation	2011 Appropriation	2012 Anticipated Appropriation
2008 Parks Levy Fund (33860)	Parks & Recreation	2008 Parks Levy- Opportunity Fund  Acquisition K720040		$  993,000	0
2008 Parks Levy Fund (33860)	Parks & Recreation	2008 Parks Levy- Opportunity Fund Development K720041		$5,973,000	0
TOTAL				$6,966,000	0

Appropriations Notes:  Additional appropriations to implement the Levy will be requested in subsequent legislation and/or the annual CIP budget.

Spending Plan and Future Appropriations for Capital Projects:

Spending Plan and Budget	2011	2012	2013	2014	2015	2016	Total
Spending Plan	2,943	3,318	705	0	0	0	6,966
Current Year Appropriation	6,966
Future Appropriations							0

Spending Plan and Budget Notes:  These spending plan estimates are for the projects included in this legislation only. Additional 2008 Parks Levy projects will be included in subsequent legislation and/or the annual CIP budget.

Funding Source:

Funding Source (Fund Name and Number, if applicable)	2011	2012	2013	2014	2015	2016	Total
2008 Parks Levy Fund (33860)	6,966	0	0	0	0	0	6,966
TOTAL	6,966	0	0	0	0	0	6,966

Funding Source Notes:  The funding for the projects in this legislation represents only a portion of the total funds from the 2008 Parks Levy.

Bond Financing Required:  N/A

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

Bond Notes:

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

O&M	2011	2012	2013	2014	2015	2016	Total
Uses
Start Up
On-going	0	8,609	45,889	117,607	133,364	136,030	441,499
Sources – General Fund	0	8,609	45,889	117,607	133,364	136,030	441,499

Operation and Maintenance Notes:  Implementation of these Levy projects will lead to increased operating costs for DPR. The Levy does not include funding for ongoing costs, and the Department will work with the City Budget Office to determine how future maintenance costs will be funded during the 2012 budget process. The new facility operation and maintenance (O&M) costs shown above represent the total O&M cost estimates specific to the projects listed in this fiscal note. The costs per year represent the on-line dates of the various projects. The O&M numbers assume a 2% inflation rate in each successive year.

The development projects will be completed at a rate of approximately six per year (2012-2014) and the amounts shown above are cumulative as additional projects come on line.

The amounts shown above were calculated using the standard departmental operations and maintenance costing methodology. More detailed calculations for projects are available on request. Generally, the approach is to determine staffing levels on the basis of activities that need to be performed (e.g. mowing, tree trimming, litter pick-up), expected frequency, and features of the park (e.g. acreage, location, access, soil conditions, extent of tree canopy). The expected demand for the park (typically a function of location and amenities) is a significant factor as well.  These features are typically determined through design reviews, meetings with project managers, and site visits. A complete breakdown of the O&M expenses by project and by year appears in Exhibit C.

Periodic Major Maintenance Costs for the Project:  N/C

Major Maintenance Item	Frequency	Cost	Likely Funding Source
TOTAL	N/C	N/C	N/C

Funding sources for replacement of project:

The Levy does not provide a revenue source for ongoing major maintenance.

Total Regular Positions Created, Modified, or Abrogated through this Legislation, Including FTE Impact:  None. Existing staff will transition to these projects.

Position Title and Department*	Position # for Existing Positions	Fund Name & #	PT/FT	2011 Positions	2011 FTE	2012 Positions**	2012 FTE **
TOTAL	N/A	N/A	N/A	N/A	N/A	N/A	N/A

Position Notes:

Do positions sunset in the future?  N/A

What is the financial cost of not implementing the legislation?

Not implementing this legislation would delay implementation of the 2008 Parks Levy approved by voters. Also, not implementing the legislation reduces the economic stimulus impact that will result from the construction projects financed by the bill.

Does this legislation affect any departments besides the originating department? No.

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

None.

Is the legislation subject to public hearing requirements?  No.

Other Issues:  None.

List attachments to the fiscal note below:

Exhibit A:  Proposed Opportunity Fund Acquisition - 18th Ave. SW & SW Brandon St. (Puget

                   Ridge Edible Park) (map)

Exhibit B:  Proposed Opportunity Fund Acquisition – 19^th & Madison Neighborhood Park (map)

Exhibit C:  Operations and Maintenance Cost Estimates