ORDINANCE __________

AN ORDINANCE relating to proposed streetcar lines in Seattle; stating the conditions under which the Seattle City Council will consider approving construction of a streetcar line in South Lake Union; and releasing certain funds to the Seattle Department of Transportation to proceed with preliminary plan development, compliance with SEPA procedures, design, and engineering for a potential South Lake Union Streetcar project and to undertake a preliminary review of a potential extension of the proposed South Lake Union alignment to the University District and a potential extension of the Waterfront Streetcar along the South Jackson Street Corridor.

WHEREAS, in Resolution 30610, the Seattle City Council affirmed its commitment to support the redevelopment of the South Lake Union area as the region's most competitive location for biotech and high-tech research and manufacturing; and

WHEREAS, the Seattle City Council has taken numerous actions in support of the redevelopment of South Lake Union for this purpose, including selling City property in South Lake Union to enable its redevelopment, approving zoning adjustments that support biotech, allowing certain modifications to building height restrictions, adding South Lake Union to the City's multi-family tax exemption program, contributing to the development of 226 low-income housing units, and contributing funds towards the development and improvement of South Lake Union Park and Cascade Playground; and

WHEREAS, the Seattle City Council will be considering additional measures that would further promote economic development in South Lake Union, such as adjusting zoning in certain areas to enable multi-family residential development, making improvements to the pedestrian environment, and designating South Lake Union as an Urban Center, which could make it eligible for certain grants and other priority funding; and

WHEREAS, the City Council appreciates the efforts and enthusiasm by certain parties to build a streetcar in South Lake Union as a possible way to accelerate development to the area and provide additional public transportation alternatives; and

WHEREAS, the City of Seattle has made budget reductions of approximately one hundred million dollars in the last three years and continues to face challenges in maintaining city services; and

WHEREAS, the City's transportation infrastructure requires more than five hundred million dollars worth of investment to maintain street surfaces and bridges; and

WHEREAS, while the Seattle City Council believes that a South Lake Union streetcar could provide an additional attraction to development in South Lake Union, the Council is concerned about using scarce City resources for the streetcar capital costs and future operating and maintenance given the longstanding needs in other neighborhoods and the challenges of maintaining adequate funding levels for city services and transportation infrastructure maintenance; and

WHEREAS, while a streetcar may have the potential to help organize and accelerate development in South Lake Union, development in South Lake Union is proceeding at a rapid pace and it is not likely dependent on the installation of a streetcar line; and

WHEREAS, the City of Seattle is willing to pay a special assessment not exceeding any special benefit accruing to its property within a Local Improvement District (LID) for a South Lake Union streetcar if a Special Benefits Study is conducted and if sufficient property owners within the proposed Local Improvement District boundaries, including the City of Seattle, support formation of a Local Improvement District for the purposes of constructing a South Lake Union Streetcar; and

WHEREAS, the City has secured and continues to pursue public grants to help pay for the construction of the South Lake Union Streetcar; and

WHEREAS, the Executive is encouraged to review how other cities pay for the operation and maintenance costs associated with streetcars, such as in Tampa, Florida, which created an assessment district and endowment fund to pay for its streetcar's operations and maintenance costs.

WHEREAS, the Seattle City Council encourages interested parties to continue working on identifying non-City funds to build and operate the streetcar; and

WHEREAS, the City Council affirms its support for the extension of the existing Waterfront streetcar through the Chinatown/International District along the South Jackson Street corridor to 12th Avenue South initially and then to 23rd Avenue South, and requests the Executive join the Council in recommending the consideration and study of this route as part of Sound Transit Phase II and in setting this as the next priority for securing transit-related grants; and

WHEREAS, the City Council encourages the Executive to develop plans for a more extensive and linked streetcar network, to include: the South Lake Union streetcar with possible extensions to the University District; the Waterfront streetcar with possible extensions to the south and east on Jackson to the Central District as noted in Section 1F of the June 30th Seattle Streetcar Network and Feasibility Analysis, possible relocation or extension on Western Avenue with connections to the Seattle Center and South Lake Union, and possible extensions to the north, including Fremont and Ballard; and a single maintenance base to maximize efficiency and reduce costs; NOW THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. The Seattle City Council will consider approving a streetcar project for South Lake Union and releasing additional funds, beyond those authorized in this ordinance, to proceed with further planning, compliance with SEPA procedures, design, engineering and construction of a South Lake Union Streetcar, only if all the following conditions are satisfied:

A. Except as otherwise provided in this ordinance, the City of Seattle will not financially contribute to or be responsible for any costs associated with the administration of the construction, administration of a Local Improvement District (LID), design, engineering, construction or any other capital costs, including any project cost overruns and financing costs, associated with the South Lake Union streetcar, except for any special assessment the City may be responsible for as a property owner within a streetcar LID. In order to demonstrate compliance with this condition, the Executive must present a funding plan that addresses how the capital costs of the South Lake Union Streetcar will be paid for and how any potential cost overruns will be addressed.

B. All necessary grants and other funds required for the construction and any other capital costs of a South Lake Union streetcar are certain and have been identified.

C. Streetcar operations and maintenance will be funded without using existing City General Fund dollars, and any future general fund revenues except as noted in this subsection. To demonstrate compliance with this condition, the Executive will present a longrange, sustainable business plan that covers all operation and maintenance costs associated with the South Lake Union Streetcar and that relies on a realistic fare box recovery strategy and ridership estimates. The business plan shall acknowledge and adhere to the funding restrictions outlined in this ordinance. This subsection C does not preclude the Executive from presenting a business plan that proposes to use developer fees or other new revenue sources that are specifically devised to pay for the costs of the proposed South Lake Union streetcar, as long as the use of those revenue sources are consistent with City policy approved by the Council.

D. No funds resulting from the sale of surplus City property in South Lake Union may be used to support the operations and maintenance of the proposed South Lake Union Streetcar. No funds resulting from the sale of surplus property in South Lake Union may be used to support construction of the proposed South Lake Union Streetcar, except as the City Council may authorize in accordance with Resolution 30334.

E. The City Council will not preclude consideration of the use of new, incremental Metro bus hours that the City of Seattle may be entitled to, so long as it is demonstrated that the use of those hours for the SLU Streetcar represent a responsible, effective, and efficient allocation of the City's share of Metro bus service hours.

F. An existing transit agency is willing, able, and legally committed to operating and maintaining the South Lake Union streetcar.

G. A Special Benefits Study, per the ordinance introduced as C.B. 114982, has been completed so that the City Council can determine the appropriate level and allocation of assessments for a potential streetcar LID.

H. Given that the LID is a critical piece of funding for the streetcar, the City Council has held a preliminary LID formation hearing to determine property owner support for a streetcar LID.

I. The City Council has reviewed the results of the preliminary design and engineering allowed for under this ordinance, after the Seattle Design Commission and Seattle Planning Commission have had the opportunity to review and comment on the preliminary design plans.

Section 2. The restrictions imposed by the following budget provisos are removed to the extent of the modifications shown:

Department Greensheet Proviso BCL/Project Code

Seattle #96-3-B-3 None of the $6,000,000 Policy, Planning, and Department of available for the South Lake Major Project Transportation Union Streetcar Project Development (#TC366260) in 2004 can be (18310)Project TC366260 spent until authorized by a future ordinance, except that SDOT may spend up to (($295,000)) $2,687,000((can be spent)) to pay for certain activities as specified if the funds are from a federal or state grant source and the expenditures are eligible for reimbursement from that source even if the streetcar line is not built. Of the $2, 687,000, $295,000 has already been approved for work associated with a Council Statement of Legislative Intent and the additional $2,392,000 may be spent only for the purposes set out in Attachment A.

Seattle #96-3-B-3 ((None of the $295,000 Policy, Planning, and Department of available for the South Lake Major Project Transportation Union Streetcar Project Development (TC366260) in 2004 can be (18310) Project TC366260 spent on preliminary design and engineering.))

Section 3. This ordinance does not constitute final approval by the Seattle City Council to proceed with the South Lake Union Streetcar. The Seattle City Council will consider approving a streetcar project for South Lake Union and the release of additional funds, beyond those authorized in this ordinance, once the preceding conditions have been met.

Section 4. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of _________, 2004, and signed by me in open session in authentication of its passage this _____ day of __________, 2004.

_________________________________

President __________of the City Council

Approved by me this ____ day of _________, 2004.

_________________________________

Gregory J. Nickels, Mayor

Filed by me this ____ day of _________, 2004.

____________________________________

City Clerk

(Seal)

RC:cv

July 30, 2004

114981.doc

Version 3

1

Attachment A: Permitted Use of Funds

$1.8 million dollars can be used only to conduct up to 30% preliminary design and engineering for a South Lake Union streetcar. Tasks to be addressed include:

* Determination of final track alignment, including termini configuration, crossover locations and station/platform locations.

* Determination of utility impacts, utility company coordination, resolution of major conflicts and initial utility relocation details performed by this project.

* Identification of stormwater requirements, coordination with adjacent stormwater management issues and preliminary design of detention or treatment facilities.

* Completion of all survey and base mapping requirements.

* Associated street reconstruction requirements including impacts to adjacent properties, relocation of loading zones, curb cuts, etc.

* Traffic engineering including modifications to signals, channelization, parking area impacts, etc.

* Geotechnical investigations and recommendations.

* Urban design and streetscape concept development and coordination with adjacent developments

* Location, programming and configuration of Maintenance Facility.

* Development of track design details.

* Systems design (traction power, etc.)

* Identification of Right-of-Way needs, if any.

Environmental Review and Permitting

Critical permits will be identified, coordination with the appropriate agencies will begin, and development of information required for obtaining these permits will commence.

Streetcar Vehicles

Criteria for streetcar vehicles will be developed. If appropriate, purchase of vehicles through Portland Streetcar Inc. options with Skoda will be evaluated. Other potential suppliers will be identified and their availability and competitiveness will be assessed.

Operations and Maintenance

A preliminary operations plan will be developed to include hours of operations, fare collection procedures coordination with traffic operations and signal requirements. A maintenance plan for the system, including vehicles will also be developed.

Contracting Strategies

Evaluate the use of traditional and alternative contracting strategies.

$160,000 can be spent only for additional technical work related to an extension of the potential South Lake Union streetcar line from South Lake Union to the University of Washington/University District. $35,000 can be used only to assess the viability of a LID for the extension of the potential SLU streetcar from South Lake Union to the University District. Tasks to be addressed include the following:

1. Develop additional alignment, operational, technical and environmental information and begin work with community stakeholders.

2. Retain a professional appraiser to review the potential for an LID. The expenditures for an appraiser shall only be used to evaluate whether the total special benefits conferred on property owners could support a potential Local Improvement District. The appraiser should not attempt to

identify preliminary individual assessments for property owners nor should the Executive negotiate potential assessment methods or amounts with property owners as this is a decision made by the Council. The Executive should assume a Special Benefit Study would be required as part of any decision to form a LID.

$145,000 can be spent only to pay for additional technical work related to an extension of the Waterfront Streetcar to the South Jackson Street Corridor. $20,000 can be spent only to assess the viability of a LID for the extension of the waterfront streetcar to the South Jackson Corridor. Tasks to be addressed include the following:

1. Develop additional alignment, operational, technical and environmental information and begin work with community stakeholders.

2. Retain a professional appraiser to review the potential for an LID. The expenditures for an appraiser shall only be used to evaluate whether the total special benefits conferred on property owners could support a potential Local Improvement District. The appraiser should not attempt to identify preliminary individual assessments for property owners nor should the Executive negotiate potential assessment methods or amounts with property owners as this is a decision made by the City Council. The Executive should assume a Special Benefit Study would be required as part of any decision to form a LID.

$232,000 can be spent only to pay for city staff costs and direct costs (i.e. printing and mailing) associated with the above tasks

Attachment A