Form revised: July 12, 2011
FISCAL NOTE FOR NON-CAPITAL PROJECTS
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Department: |
Contact Person/Phone: |
CBO Analyst/Phone: |
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Seattle Public Utilities |
Judith Cross 386-1814 |
Karen Grove 684-5805 |
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Legislation Title: AN ORDINANCE relating to Seattle Public Utilities; declaring certain real property interests acquired for municipal utility purposes to be surplus to the City’s needs; authorizing the Director of Seattle Public Utilities to sell, grant or accept certain fee and easement interests to and from the Central Puget Sound Regional Transit Authority and to the State of Washington Department of Transportation, all of which are necessary as part of the construction of the initial segment of the Central Link Light Rail Project from downtown Seattle to Tukwila; approving a partial transfer of jurisdiction of real property from Seattle Public Utilities to Seattle City Light; and ratifying and confirming certain prior acts. |
Summary of the Legislation:
This legislation would effectuate numerous property transactions required for construction of the Central Link portion of Sound Transit’s new light rail system which began operating in mid-2009. Specifically, the legislation would:
Authorize Seattle Public Utilities (SPU) to purchase from Sound Transit property located adjacent to SPU properties at Airport Way South and South Forest Street. SPU would sell to Sound Transit property abutting property SPU owns at Airport Way South and South Forest Street. See Vicinity Map (1).
Authorize SPU to grant Sound Transit a Storm Drain Easement and a Transitway Easement and authorize SPU to grant to the Washington Department of Transportation a Storm Drain Easement within SPU properties at Airport Way South and South Forest Street. See Exhibit A (Vicinity Map 1).
Authorize SPU to sell property to Sound Transit at Airport Way South and South Hanford Street and authorize SPU to take possession from Sound Transit of a Storm Drain Regulator Easement at this location. See Exhibit A (Vicinity Map 1).
Authorize SPU to transfer to Seattle City Light jurisdictional authority over property at Airport Way South and South Forest Street on which City Light has erected power poles. The transfer will allow City Light unfettered access to the poles for maintenance purposes. See Exhibit A (Vicinity Map 1).
Authorize SPU to grant Sound Transit a Transitway Easement on property at East Marginal Way South and South 112 Street in Tukwila, WA. See Exhibit B (Vicinity Map 2).
Background:
The City in 1998 approved Ordinance 118927, which authorized an intergovernmental cooperation agreement with the Central Puget Sound Regional Transit Authority (Sound Transit) to facilitate completion of its light rail project in an efficient manner and to ensure coordination with local land use and transportation plans within the City of Seattle. In 2001, Sound Transit selected the Initial Segment of the Central Link Light Rail Project, including the alignment and location of light rail stations, the Beacon Hill Tunnel and its rail car maintenance facility. To accommodate the Central Link Project’s real estate needs, the City and Sound Transit agreed to exchange various rights in property owned by Sound Transit and the City of Seattle, under the jurisdiction of SPU. The City and Sound Transit have agreed to the final terms and conditions of all the transactions and a final transfer of payment from Sound Transit to SPU to complete the transactions.
_X _ This legislation has financial implications.
No additional appropriations are required for this project. This legislation authorizes the purchase of land by SPU from Sound Transit ($35,167) and other miscellaneous transfer-related costs related to the sale of SPU land to Sound Transit ($26,809). These expenses will be charged to the Shared Cost Projects BCL (C410B) in the Water Fund, using allocation C4104 Sound Transit Central Link program. A request was approved in the 1st Quarter Supplemental Ordinance to add this program to the 2011 budget, along with a request to transfer $65,281 in Water Fund appropriations from an existing program. While the expenses associated with the proposed legislation were not anticipated at the time of the supplemental request, sufficient appropriations exist within the Shared Cost Projects BCL to cover these minor expenses.
The SPU property involved in these transactions is owned by the Water Fund. This legislation has no impact on 2011 water rates. Had the revenue associated with these transactions been known at the time rates were set it would have represented a 0.3% offset to the water rate.
Anticipated Revenue/Reimbursement Resulting from this Legislation:
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Fund Name and Number |
Department |
Revenue Source |
2011 Revenue |
2012 Revenue |
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Water Fund, Fund 43000 |
SPU |
Other Non-Operating Revenue |
$101,465 |
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Water Fund, Fund 43000 |
SPU |
Capital Contribution-Donated Assets |
$218,199
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TOTAL |
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$319,664 |
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Revenue/Reimbursement Notes:
Under this legislation, Sound Transit will make a net payment of $257,688 to SPU. This payment is equal to gross revenues to SPU from Sound Transit less costs that SPU incurs as a result of this legislation. Gross revenues of $319,664 are derived from the land sales/easements by SPU to Sound Transit (totaling $298,739) and payments Sound Transit has agreed to make to SPU as a result of the transfer of jurisdiction by SPU to Seattle City Light for $20,925. That amount is required to compensate SPU for the loss of use of SPU property onto which a SCL power pole and power lines were relocated. The pole and power line relocation was necessitated by the construction of Sound Transit’s light rail Transitway and vehicle maintenance facility. Costs include the land purchase cost ($35,167) and other transfer related costs including lot boundary adjustment fees and construction permit agreement fees ($26,809) which SPU owes to Sound Transit under this legislation. While the actual cash flow is net of expense, per GAAP (Generally Accepted Accounting Principles), revenue must be reported as gross.
Other Implications:
a) Does the legislation have indirect financial implications, or long-term implications?
No.
b) What is the financial cost of not implementing the legislation?
The City of Seattle would face legal risk if it were to decide at this time not to honor signed intergovernmental agreements related to the construction of the Central Link light rail project.
c) Does this legislation affect any departments besides the originating department?
This impacts Seattle City Light as noted in Attachment 10.
d) What are the possible alternatives to the legislation that could achieve the same or similar objectives?
None.
e) Is a public hearing required for this legislation?
Yes, RCW 35.94.040 requires a public hearing on the lease or sale of property or equipment acquired for public utility purposes.
f) Is publication of notice with The Daily Journal of Commerce and/or The Seattle Times required for this legislation?
No.
g) Does this legislation affect a piece of property?
Yes.
h) Other Issues:
List attachments to the fiscal note below:
Exhibit A – Vicinity Map 1
Exhibit B – Vicinity Map 2