Form revised: December 6, 2011
FISCAL NOTE FOR CAPITAL PROJECTS ONLY
|
Department: |
Contact Person/Phone: |
CBO Analyst/Phone: |
|
Seattle Public Utilities |
Cyndy Holtz/6-1990 |
Karen Grove/4-5805 |
Legislation Title: A RESOLUTION relating to Seattle Public Utilities, authorizing application to the Washington State Department of Natural Resources, Recreation and Conservation Office, for an Aquatic Lands Enhancement Account grant to fund fish habitat protection and restoration in the lower Cedar River.
Summary and background of the Legislation: The proposed resolution would authorize the Director of Seattle Public Utilities to apply for $325,000 in state Aquatic Lands Enhancement Account (ALEA) grant funding to purchase and restore property on the lower Cedar River under the Cedar River Watershed Habitat Conservation Plan (HCP). The City committed in the HCP to expend $5.5 million to protect and restore fish habitat along the lower Cedar River below its municipal watershed ownership boundary. SPU has secured grant funding to leverage the HCP financial commitment in the lower Cedar River to spread its commitment dollars further and increase the effectiveness of its habitat protection and restoration efforts, without increasing the burden to Seattle’s drinking water customers.
The Belmondo Reach parcels, which total 12.65 acres, are a high priority for salmon habitat protection and restoration, and are included in the Watershed Resource Inventory Area 8 (WRIA 8) Chinook Salmon Conservation Plan’s Start List. If this proposal is successful, the grant would fund fifty percent of acquisition and restoration costs. The preliminary cost estimate for acquisition and restoration is $650,000 ($500,000 acquisition, $150,000 restoration).
Project Name: |
Project I.D.: |
Project Location: |
Start Date: |
End Date: |
|
Downstream Fish Habitat* |
C1607 |
Township 23 North, Range 6 East, Section 29 |
April 1, 2012 |
December 31, 2013 |
Please check any of the following that apply:
____ This legislation creates, funds, or anticipates a new CIP Project.
____ This legislation does not have any financial implications.
__X_ This legislation has financial implications.
If awarded, this grant from the state Aquatic Lands Enhancement Account would provide $325,000, or half of the total cost estimate of $650,000, for the implementation of the Belmondo Reach Property Acquisition and Restoration project. The project includes acquisition of the property and restoration of these parcels for the benefit of fish habitat. The remaining funding would come from the adopted 2012 allocation for the Downstream Fish Habitat project (C1607)
within the Habitat Conservation Program BCL (C160B) in SPU’s Water Fund (Fund 43000). SPU is currently seeking federal grant monies that, if received, could appropriately be used to fund the City’s $325,000 match.
The Aquatic Lands Enhancement Account grant assistance would allow SPU greater flexibility in its overall HCP commitment and increase the effectiveness of its habitat and restoration efforts. The grant will be paid on a reimbursement basis, meaning Seattle Public Utilities will only request payment from the Recreation and Conservation Office after eligible and allowable costs have been incurred and payment remitted to our vendors, and that the Recreation and Conservation Office will hold retainage until the project is deemed complete.
Other Implications:
a) Does the legislation have indirect financial implications, or long-term implications?
SPU will be required to maintain the property. The incremental costs of maintaining the Belmondo Reach property are very modest, however. The City has a long-term contract through 2050 with Forterra (formerly Cascade Land Conservancy) to provide ongoing stewardship and maintenance for all HCP-protected property. The contract includes reasonable annual inflators and provides certainty about the maintenance costs over the next several decades. The 2012 amount the City would pay Forterra for maintenance of the Belmondo Reach property is $3,727.
b) What is the financial cost of not implementing the legislation?
Without the legislation, SPU cannot apply for the ALEA grant, and therefore will not have the opportunity to leverage HCP commitment dollars. The HCP commits SPU to expend a specified dollar amount for each HCP activity. Without grant dollars to supplement HCP commitment dollars, SPU would implement a reduced scope of restoration and protection.
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?
SPU could apply for grants that do not require an authorizing resolution. SPU is applying for a Salmon Recovery Funding Board (SRFB) grant for the same project in order to improve the probability of receiving grant funding.
e) Is a public hearing required for this legislation?
Yes, and will occur during the Council Committee meeting.
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, this resolution relates to acquisition of three parcels totaling 12.65 acres on the lower Cedar River in unincorporated King County. See attached map.
h) Other Issues:
List attachments to the fiscal note below:
Attachment 1 – Vicinity Map
ATTACHMENT 1