Form revised February 6, 2008

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Seattle Public Utilities	Sheila Strehle/ 684-5846	John McCoy/ 615-0768

Legislation Title:

A RESOLUTION relating to the water system of Seattle Public Utilities; adopting an alternate process for the evaluation and disposal of real property located between 146^th and 148^th Avenues SE around SE 44^th Street in Bellevue, Washington, commonly known as the Eastside Reservoir, and authorizing the Director of Seattle Public Utilities to proceed with negotiations for the transfer of the real property and infrastructure to Cascade Water Alliance.

· Summary of the Legislation:

This resolution would adopt an alternate process for evaluating and disposing of the Eastside Reservoir in Bellevue. It would also authorize the Director of Seattle Public Utilities (SPU) to negotiate a purchase and sale agreement to transfer the Eastside Reservoir and associated infrastructure to Cascade Water Alliance subject to Council approval by future ordinance.

· Background:

SPU in 1989 constructed the Eastside Reservoir to meet the water supply needs of wholesale customers on the east side of Lake Washington. The Cascade Water Alliance (CWA) is a coalition of eight cities and water districts south and east of Seattle that currently purchase water from SPU. The CWA is developing alternate water supply sources to serve its retail water customers in the future and would like to buy the Eastside Reservoir and continue using it as a reservoir for retail customers.

In May of 2006 the Council adopted Resolution 30862, which amended an earlier resolution creating a uniform evaluation process for the reuse or disposal of City-owned property, to include additional requirements for notifying adjacent property owners and members of the public. SPU has determined the reservoir, which is currently used for backup storage, is surplus to its needs and is seeking to complete the sale of the Eastside Reservoir and associated infrastructure by the end of 2008. To achieve that target, the utility is seeking to expedite the surplus property process. SPU in February notified adjacent property owners, City departments and other public agencies of the potential availability of the Eastside Reservoir. One private party expressed an interest in purchasing portions of the site. No public agencies expressed interest in purchasing the property. The City of Bellevue indicated it supports discussions between SPU and Cascade for the potential reservoir sale, and said it may be interested in a future discussion with the property owner about uses that might enhance recreation and open space at adjacent Eastgate Park.  Authorization of a purchase and sale agreement for the property would be subject to Council approval.

· Please check one of the following:

__X_ This legislation does not have any financial implications