AN ORDINANCE relating to the South Lake Union Park Development Project; amending the 2006 Adopted Budget of the Department of Parks and Recreation including transferring appropriations; all by a threefourths vote of the City Council.

WHEREAS, Seattle citizens have envisioned the creation of an accessible waterfront park at the south end of Lake Union ever since the Olmsted Park Plan was developed more than one hundred years ago; and

WHEREAS, the 1998 South Lake Union Neighborhood Plan emphasized the development of the South Lake Union Park (SLU Park) as a top priority; and

WHEREAS, Resolution 30080 authorized the property disposition process that led to the sale of City of Seattle (City) property in South Lake Union and set forth a number of policy objectives which continue to guide the City's actions; and

WHEREAS, the 2000 Neighborhood Parks, Green Spaces, Trails and Zoo Levy (hereafter 2000 Parks Levy) identified funding for the development of the SLU Park; and

WHEREAS, the voters of Seattle approved the 2000 Parks Levy on November 7, 2000; and

WHEREAS, Ordinance 121963 authorized the execution of an Agreement between the Seattle Parks Foundation (Foundation) and the City of Seattle (the "Agreement"), delineating each party's roles and responsibilities relative to the design, development, and construction of SLU Park; and

WHEREAS, the Agreement for the SLU Park Development Project provides that the construction of the SLU Park will be undertaken in two phases, the first to begin as soon as possible with funds already identified, and the second to begin after the Foundation has raised the $10,000,000 stipulated in its Agreement with the City; and

WHEREAS, after the SLU Park Development Project had been designed and its budget approved, the Department of Parks and Recreation determined that the bulkhead was vulnerable and there were three options to deal with the situation: (1) build the SLU Park using the existing bulkhead, postponing its replacement until sometime in the future when it would inevitably fail; (2) cut back the SLU Park by 8,000 square feet, eliminating the ability to moor large ships along the bulkhead and reducing the length of the boardwalk; or (3) replace the bulkhead now rather than later; and

WHEREAS, the current budget for Phase 1 of the SLU Park Development Project resulted in designs of the bulkhead at the Park that reduced the overall park land by approximately 8,000 square feet, eliminated the ability to moor large ships along the bulkhead, reduced the sizes of the bulkhead and boardwalk along the west side, and significantly limited the life expectancy of the bulkhead; and

WHEREAS, the Foundation and the City of Seattle desire to maintain the size of the overall park land as reflected in the original project plan and keep the bulkhead at its original length; and

WHEREAS, the Project Review Committee, consisting of City Investors, the Foundation, the Center for Wooden Boats, and City representatives, determined that the most cost effective, long-term solution dictates that the bulkhead be replaced before the park is built, thereby avoiding the disruption and higher cost of later replacement once the park is completed and in full usage; and

WHEREAS, the Foundation and the City of Seattle desire to maintain the size of the overall park land as reflected in the original project plan and keep the bulkhead at its original length; and

WHEREAS, the SLU Park Development Project cost has increased by $4,228,000, comprised of the bulkhead replacement and related site work and redesign, which had not been anticipated in the original park design, scope, and approved budget, as well as permit-related design costs for both phases of the Project, which had not been anticipated in the Phase 1 portion of the approved budget; and

WHEREAS, various Capital Improvement Projects of the Seattle Department of Parks and Recreation have excess budget authority in 2006; and

WHEREAS, the 1999 Community Center Levy Fund is projected to have a fund balance upon completion of all the Community Center Levy projects; and

WHEREAS, due to the additional cost of replacing the bulkhead, the City Council wants to require that the added funds estimated for the bulkhead replacement are used solely for that purpose and that any under-spending on the bulkhead replacement is recaptured by the City; and

WHEREAS, the City Council is concerned that the costs of future project phases stay within the approved SLU Park Development Project budget and be fully offset by pledges and cash donations raised by the Foundation in its $10 million fundraising effort, as well as other resources identified in the Agreement; and

WHEREAS, between 1984 and 2003, the City has invested approximately $17.5 million in the purchase and interim development of SLU Park and allocated another $5 million in 2000 Parks Levy funds toward the planning, design, and development of the Park, and through this ordinance appropriates an additional $4,228,000 for the development of the Park; and

WHEREAS, the City Council intends that no additional City funds will be appropriated to achieve the SLU Park Improvement Plan if private fundraising does not meet its goals, aside from the provisions relating to possible failure to satisfy conditions on the availability of the City Investor's additional $5 million in funding for Phase 2 as contained in Section 3.4 of the Agreement; and

WHEREAS, the City Council wishes to review a then-current project budget and scope along with a status report on the Foundation's fundraising efforts before making any future appropriation for the SLU Park Development Project; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. To the extent the appropriations in the 2006 Budget for the Department of Parks and Recreation's 2000 Parks Levy Major Park Development (K723004) Budget Control Level (BCL) from the Cumulative Reserve Subfund REET II (00161), Cumulative Reserve Subfund REET I (00163), Cumulative Reserve Subfund Unrestricted (00164), Shoreline Park Improvement Fund (33110), and 2000 Parks Levy Fund (33850) funding sources have not as of March 24, 2006 been expended or encumbered, those appropriations are reduced to zero.

Section 2. The appropriations shown in parentheses below are reduced from the fund sources shown and, in order to pay for necessary capital costs and expenses incurred or to be incurred, the appropriations without parentheses are increased from the funds shown, as follows:

Item Fund Department Budget Control Amount Level/Capital Improvement Program

2.1 Cumulative Reserve Parks and 2000 Parks Levy $800,000 Subfund REET II Recreation Major Park (00161) Development (K723004)

2.2 Cumulative Reserve Parks and 2000 Parks Levy $579,000 Subfund REET I Recreation Major Park (00163) Development (K723004)

2.3 Cumulative Reserve Parks and 2000 Parks Levy $14,183 Subfund Recreation Major Park Unrestricted (00164) Development (K723004)

2.4 Shoreline Park Parks and 2000 Parks Levy $193,695 Improvement Fund Recreation Major Park (33110) Development (K723004)

2.5 2000 Parks Levy Fund Parks and 2000 Parks Levy $11,812,844 (33850) Recreation Major Park Development (K723004)

2.6 Cumulative Reserve Parks and 2000 Parks Levy $2,578,000 Subfund REET II Recreation Major Park (00161) Development (K723004)

2.7 Cumulative Reserve Parks and 1999 Community ($135,000) Subfund REET I Recreation Center Improvements (00163) (K72654)

2.8 Cumulative Reserve Parks and 2000 Parks Levy Subfund REET I Recreation Major Park $135,000 (00163) Development (K723004)

2.9 Cumulative Reserve Parks and 2000 Parks Levy Subfund Recreation Major Park $850,000 Unrestricted (00164) Development (K723004)

2.10 Cumulative Reserve Parks and Docks/Piers/Floats/Se Subfund REET II Recreation awalls/ Shorelines ($500,000) (00161) (K72447)

2.11 Cumulative Reserve Parks and 2000 Parks Levy Subfund REET II Recreation Major Park $500,000 (00161) Development (K723004)

2.12 Cumulative Reserve Parks and Ballfields/Athletic ($100,000) Subfund REET II Recreation Courts/Play Areas (00161) (K72445)

2.13 Cumulative Reserve Parks and 2000 Parks Levy Subfund REET II Recreation Major Park $100,000 (00161) Development (K723004)

2.14 Cumulative Reserve Parks and 2000 Parks Levy ($65,000) Subfund REET II Recreation Neighborhood Park (00161) Development (K723003)

2.15 Cumulative Reserve Parks and 2000 Parks Levy Subfund REET II Recreation Major Park $65,000 (00161) Development (K723004)

provided, however, that the foregoing appropriations are subject to the following conditions:

a. the appropriations made in Items 2.6, 2.8, 2.9, 2.11, 2.13, and 2.15 above are appropriated solely for the bulkhead replacement, an element of the SLU Park Development Project, and may be spent for no other purpose; and

b. of the appropriation made in Item 2.5 above, $634,286 is appropriated solely for the bulkhead replacement, an element of the SLU Park Development Project, and may be spent for no other purpose.

The above budget provisos are effective as restrictions on the purposes for which the appropriations in this section are made. Use of any amount of these restricted portions of these appropriations for any other purpose than that stated, or for any purpose expressly excluded, whether by transfer pursuant to SMC Chapter 5.08 or by any other means, is prohibited.

Section 3. If the Finance Director, pursuant to the procedures in Section 2.2 of the Agreement with the Foundation authorized by Ordinance 121693 (the "Agreement"), concludes that it is more likely than not that the Foundation will not achieve its goal of raising $10 million in private funds (pledges and cash) by June 30, 2008, it is the Council's intent that the project scope for Phase 2 will be reduced and that the Council will not appropriate additional funds to fill the gap. Further, except as otherwise required by the Agreement, it is the Council's intent that the City will not appropriate additional funds to the SLU Park Development Project if total costs exceed the Approved Budget of $29,227, 935, as shown in the Revised Project Budget, Exhibit 1 to the Agreement.

Section 4. Funds appropriated under this ordinance that are unexpended or unencumbered at the end of 2006 shall not lapse but shall be carried forward into future budget years until fully expended or expressly abandoned by ordinance.

Section 5. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and confirmed.

Section 6. Some of the foregoing appropriations are made to meet actual necessary expenditures of the City for which insufficient appropriation has been made due to causes that could not reasonably have been foreseen at the time of the making of the 2006 Budget, in accordance with RCW 35.32A.060.

Section 7. 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 a three-fourths (3/4) vote of all the members of the City Council the ____ day of _________, 2006, and signed by me in open session in authentication of its passage this _____ day of __________, 2006. _________________________________ President __________of the City Council

Approved by me this ____ day of _________, 2006. _________________________________ Gregory J. Nickels, Mayor

Filed by me this ____ day of _________, 2006. ____________________________________ City Clerk

April 14, 2006 version #9.1