Form revised: December 6, 2011

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	CBO Analyst/Phone:
Seattle Public Utilities	Keith Kurko/233-1516	Karl Stickel/684-8085

Legislation Title: AN ORDINANCE relating to a recreational trails agreement with King County; authorizing the Director of Seattle Public Utilities to grant King County permission to develop and operate recreational trails on portions of utility property in the Tolt Right of Way, the Lake Youngs Reservoir area, the West Seattle Right of Way, the Snoqualmie Valley/Rattlesnake Lake area, and the Cedar River Pipeline Drain Right of Way; in partial consideration for which the County will grant the City permission to use King County property in the vicinity of Rattlesnake Lake for recreational trails and an access road; and authorizing the Director to execute the agreement for these property uses.

Summary of the Legislation:

This legislation would authorize the Director of Seattle Public Utilities (SPU) to execute a 20-year agreement with King County granting it permission to use portions of five SPU properties, primarily water supply pipeline rights of way, for non-motorized recreational trail purposes.  As consideration for SPU’s permission, King County will pay SPU an annual maintenance fee of $20,000 and will, in turn, grant SPU permission, by means of a Rattlesnake Lake Agreement, to use certain County-owned property in the Cedar River Watershed at the north end of Rattlesnake Lake.

Background:

SPU owns and operates a municipal and industrial water supply system serving over 1.3 million people and businesses.  As part of that system, SPU owns property in King County commonly referred to as the Tolt Pipeline Right of Way, the Lake Youngs Reservoir Perimeter, the West Seattle Right of Way at Duwamish Waterway, the Snoqualmie Valley/Rattlesnake Lake Connector Trail, and the Cedar River Pipeline Drain Right of Way.

In 1973, King County and Seattle entered into a 25-year agreement granting the County permission to use a portion of the Tolt Pipeline Right of Way for non-motorized recreational trail purposes.  This agreement expired in 1998.  In 1988, a similar agreement was signed for trail use of the Seattle Water Department’s (one of SPU’s predecessor departments) Lake Youngs Reservoir Perimeter and this agreement expired in 2003.

While the primary purpose of SPU’s property is for the transmission and distribution of a public water supply, certain limited recreational uses are compatible, and they provide some maintenance benefits for SPU.

King County wants to renew and continue its trail use of portions of the Tolt Pipeline Right of Way and the Lake Youngs Reservoir Perimeter, and also to develop additional recreational trails on portions of the West Seattle Right of Way at Duwamish Waterway, the Snoqualmie Valley/Rattlesnake Lake Connector Trail, and the Cedar River Pipeline Drain Right of Way.

This legislation authorizes the Director of Seattle Public Utilities to enter into a 20-year agreement with King County in the form of the “King County and Seattle Public Utilities Trails Agreement” which grants King County permission to non-exclusive use of the aforementioned property for the development and operation of recreational trails.  SPU reserves the right, for its own purposes, to early termination or relocation of all or part of the County’s trail use of this property.  There is a 20-year renewal clause in the agreement.

The City’s permission is granted upon the condition that King County will use the property solely for recreational trails, and the use of trails by members of the general public will be free of charge.  King County will perform all work on the property in accordance with plans and specifications pre-approved by SPU.

In exchange for use of this property, King County will pay SPU an annual maintenance fee of $20,000, indexed for inflation.  Through an attached Exhibit G, “Rattlesnake Lake Agreement”, the County will grant SPU permission to use County property in the Cedar River Watershed for an access road serving the Cedar River Watershed Education Center and for an SPU recreational trail.

Please check one of the following:

____ This legislation does not have any financial implications.

_X__   This legislation has financial implications.

Anticipated Revenue/Reimbursement Resulting from this Legislation:

Fund Name and Number	Department	Revenue Source	2012 Revenue	2013 Revenue
Water Fund (43000)	SPU	King County	$20,000	$20,000 + annual inflation adjustment
TOTAL			$20,000	$20,000 + annual inflation adjustment

Revenue/Reimbursement Notes:

This only has revenue implications and requires no additional appropriations.

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?

For the City, there would be $20,000 per year of foregone revenue for the next 20 to 40 years.  In the Cedar River Watershed, the City would likely have to purchase an easement from King County for the SPU road and the SPU trail that now traverses County land.

c) Does this legislation affect any departments besides the originating department? 

No.

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

No other alternatives are available that achieve a similar result.

e) Is a public hearing required for this legislation? 

No.

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, and maps are included as Exhibits to the legislation.

h) Other Issues:

None.