Form revised: December 6, 2011

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	CBO Analyst/Phone:
Parks and Recreation	Rita Hollomon/ 684-8008	Amy Williams/ 233-2651

Legislation Title:

AN ORDINANCE relating to the City of Seattle’s Department of Parks and Recreation and Atlantic City Nursery; authorizing the Superintendent to enter into a five-year agreement, with options to extend, with Seattle Tilth and the Friends of Rainier Beach Urban Farm and Wetlands to operate and provide management of the Atlantic City Nursery located at 5513 S. Cloverdale Street, Seattle, WA 98118.

Summary of the Legislation:

The proposed legislation authorizes the Department of Parks and Recreation (DPR) to enter into a five-year agreement with Seattle Tilth, a Washington non-profit corporation, and the Friends of Rainier Beach Urban Farm and Wetlands for the development and operation of the nursery and buildings at the Atlantic City Nursery. The proposed agreement includes two five-year options to extend the agreement at the discretion of DPR.

Background:

The 72-year old Atlantic City Nursery is an almost 10-acre parcel located between Beer Sheva Park and the Pritchard Island Wetlands in the Rainier Beach neighborhood. The south end of the nursery meets Lake Washington and the entire site was once part of the Dunlap Slough, which disappeared when the lake was lowered by nine feet when the Ship Canal opened in 1916. Various City departments have used this location to grow trees and ornamental plants, and for the past 50 years the nursery provided much of DPR’s horticulture needs. The nursery’s structures include two functioning greenhouses, three shade houses, a small office, a tool shed, and some open work space. The remainder of the nursery encompasses two acres of wetlands restored by Sound Transit for light rail mitigation and about six acres of open space, most of it covered with non-native grasses and weeds.

In 2009, DPR decided to consolidate its horticultural operations in a single site at Jefferson Park on Beacon Hill and to close the Atlantic City Nursery. Through a community process that included several neighborhood meetings and review by the Board of Park Commissioners, a Use Plan was developed. The Plan recommended that the site be used for urban agriculture, public access, and wetland preservation. The intent was to contract with an experienced nonprofit to provide for the overall management and operation of the nursery. Since the first public hearing in December 2009, community support for this approach has grown with multiple endorsements for the Use Plan from local businesses, service clubs, nonprofit organizations, and over 100 South Seattle community members.

In 2011, the City conducted a publicly-advertised Request for Proposals (RFP) process to select an operator to manage the site. The joint proposal from Seattle Tilth and Friends of Rainier Beach Urban Farm and Wetlands was the only response received. After evaluation by a review panel, the panel determined the proposal met the RFP review criteria and was judged advantageous to the City.

Per the terms of the agreement, Seattle Tilth and Friends of Rainier Beach Urban Farm and Wetlands (the Operators) will be subject to a $41,000 use fee for the site. They can offset up to $40,000 of this amount by providing public benefits to the extent that these programs support the public mission. If the Operators produce events or programs that are commercial in nature and are not related to the public mission (such as an auto show, corporate or business rental, third party rentals for weddings, birthdays, etc.) then that would not be offset to the fair market rent and the Operators would pay a percentage of the rental fee to the Department. Eligible public benefits include the provision of community programs and scholarships for those programs approved by DPR. Additional public benefits in the form of security and community building will occur from the operators’ ongoing presence at the site.

Seattle Tilth is acting as the fiscal agent for this Agreement and is responsible for all financial and tax reporting purposes. The Operators, at no costs to the Department, are responsible for any and all major maintenance and minor repairs required at the site and under their jurisdiction. The Operators are specifically responsible for: winterizing the irrigation system; removal of snow or removal of the poly/shade cloth from the greenhouse structures during winter months; upland mowing; maintaining the wetlands; stabilizing ground cloth on the fields; and maintaining the perimeter service road. The Department will not be responsible for any maintenance on the premises. The Operators, without charge to the City, will also be responsible for all utilities and waste removal expenses.

The agreement also calls for a one time capital investment to be funded by the City through the first round of the 2008 Parks and Green Spaces Levy Opportunity Fund (Ordinance 123560, March 2011). This Rainier Beach Urban Farm and Wetlands Improvements Project (K730153) is in the 2012-17 CIP with a $500,000 budget; the project is managed by DPR. The City and Operators will work together to conduct a Public Involvement Process (PIP) with the objective of soliciting feedback from the neighborhood communities and stakeholders of the Site regarding what types of improvements are appropriate and within the available budget in the Department’s Capital Improvement Program Budget for the site.

____ This legislation does not have any financial implications.

_X___ This legislation has financial implications.

Appropriations: N/A

Fund Name and Number	Department	Budget Control Level*	2012 Appropriation	2013 Anticipated Appropriation
TOTAL	N/A	N/A	N/A	N/A

Appropriations Notes:

Anticipated Revenue/Reimbursement Resulting from this Legislation:

Fund Name and Number	Department	Revenue Source	2012 Revenue	2013 Revenue
Park and Recreation Fund (10200)	Parks and Recreation	Income from base fee payment	$750	$1,000
TOTAL			$750	$1,000

Revenue/Reimbursement Notes:

The use fee for the Atlantic City Nursery site is $40,000 annually, plus a $1,000 annual base fee. The agreement allows the operators to offset the use fee with public benefits for the community and DPR.  Such offsets are called Service Credits and are to be approved in writing by DPR before use by the operators.  Service Credits are expected to fully offset all use fees assessed except for the $1,000 base fee.

This legislation will result in $750 of revenue in 2012 from the beginning of the proposed agreement in May through December 31 based on a minimum base payment of $1,000 per year.  The new agreement will also transfer utility costs for the premises to the operators, which will result in a cost savings to DPR an average of $3,500 to $5,000 per year as well as savings in maintenance and operation costs of $10,000 annually.

Total Regular Positions Created, Modified, or Abrogated through this Legislation, Including FTE Impact: N/A

Position Title and Department	Position # for Existing Positions	Fund Name & #	PT/FT	2012 Positions	2012 FTE	2013 Positions*	2013 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

Spending/Cash Flow: N/A

Fund Name & #	Department	Budget Control Level*	2012 Expenditures	2013 Anticipated Expenditures
TOTAL	N/A	N/A	N/A	N/A

Spending/Cash Flow Notes:

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 proposed five-year agreement would save DPR at least $10,000 annually or $50,000 in operation and maintenance costs over the term of the initial five-year agreement. These savings will continue if DPR agrees to the two possible five-year extensions.

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? There are none.

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, the Atlantic City Nursery located at 5513 S. Cloverdale St.

h) Other Issues: None.

List attachments to the fiscal note below:

Attachment A: Contract Summary Form

Seattle Department of Parks and Recreation

CONTRACT SUMMARY

March 22, 2012

Name of Contracting Party/ Lessee/ Concessionaire/Other: Seattle Tilth and the Friends of Rainier Beach Urban Farm and Wetlands

Contract Type: Agreement

Non-Profit _X_ or For Profit__ ____

New or Renewal (or extension of existing Lease) New

Term of Original Agreement: Five years with an option for two five-year extensions at the option of the Superintendent.

Purpose of Agreement: To enter into a five-year agreement with Seattle Tilth and the Friends of Rainier Beach Urban Farm and Wetlands for the development and operation of the site and buildings at Atlantic City Nursery.

Public Benefit: Seattle Tilth and the Friends of Rainier Beach Urban Farm and Wetlands will undertake site improvements, including construction, development, and operation of the site and buildings. The operators will also encourage participation by a wide range of diverse individuals living in the neighborhood, manage youth development programs in partnership with DPR, coordinate volunteer work parties, provide classes, workshops, family, and community events for local organizations, neighborhood groups, individuals, and families.

Brief description, overview, history, general terms and other pertinent info:

The Atlantic City Nursery provided plants and trees for DPR for 50 years. After DPR’s consolidation of horticulture at Jefferson Park, the nursery was closed. Through a public process a Use Plan was developed recommending the site be used for urban agriculture, community access, and wetland preservation.