AN ORDINANCE relating to the financing of the South Lake Union Streetcar Project; authorizing the loan of funds from the City's Consolidated (Residual) Cash Pool, or its participating funds, to the Transportation Master Fund; and providing for the repayment thereof.

WHEREAS, the Mayor has proposed and the City Council has approved a 2007 Budget and 2007-2012 Capital Improvement Program that includes design and construction activities for the South Lake Union Streetcar Project; and

WHEREAS, Ordinance 121951 authorized the construction of a modern streetcar line serving downtown Seattle, Denny Triangle and South Lake Union, and the formation of Local Improvement District No. 6750; and

WHEREAS, as required by Ordinance 122424 the Executive has proposed a plan to pay for any remaining capital costs pertaining to the South Lake Union Streetcar using the following revenue sources: federal grants that have been requested for 2007, proceeds from the sale of surplus property adjacent to and air rights above the South Lake Union Streetcar Maintenance Facility and Yard at 318 Fairview Avenue North, up to $2 million from the South Lake Union Property Proceeds Subaccount established by Ordinance 120411, and if needed, up to $1.5 million from Denny/South Lake Union transportation mitigation funds; and

WHEREAS, funds necessary to complete the South Lake Union Streetcar Project have been identified but may not be received at the time project expenditures are incurred, creating a temporary funding gap, and a loan from the City's Consolidated (Residual) Cash Pool, or its participating funds, will be utilized as interim financing; and

WHEREAS, there is sufficient cash in the City's Consolidated (Residual) Cash Pool, or its participating funds, to support a loan of up to Five Million Nine Hundred Forty-Five Thousand Dollars ($5,945,000) to the Transportation Master Fund, terminating no later than December 31, 2009; and

WHEREAS, the Seattle Streetcar, South Lake Union line is now substantially complete and the Executive projects the final cost not to exceed Fifty-Two Million One Hundred Thirty Thousand Dollars ($52,130,000); NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. A loan of up to Five Million Nine Hundred FortyFive Thousand Dollars ($5,945,000) of principal and interest outstanding at any one time is hereby authorized to be made from the City's Consolidated (Residual) Cash Pool, or its participating funds, to the Transportation Master Fund from which may be paid capital costs related to the South Lake Union Streetcar project and related debt service costs. Said loan is to be repaid no later than December 31, 2009, with interest on the loan at the rate of return of the City's Consolidated (Residual) Cash Pool.

Section 2. The entire principal and interest amount of the loan authorized in Section 1, and owed by the Transportation Master Fund to the City's Consolidated (Residual) Cash Pool, shall be repaid with up to $2 million from the South Lake Union Property Proceeds Subaccount, proceeds from the sale of surplus property adjacent to and air rights above the South Lake Union Streetcar Maintenance Facility and Yard at 318 Fairview Avenue North; and, if needed, up to $1.5 million from Denny/South Lake Union transportation mitigation funds or by extension of this internal City loan. Except as authorized by Seattle Municipal Code Section 5.06.030 (C), any extension of this loan must be approved by ordinance.

Section 3. The Director of Finance may effectuate the loan authorized in Section 1 by transferring cash from one or more of the funds participating in the City's Consolidated (Residual) Cash Pool to the Transportation Master Fund, or by carrying the Transportation Master Fund in a negative cash position in an amount not to exceed Five Million Nine Hundred Forty-Five Thousand Dollars ($5,945,000) beyond the negative balance authorized by Ordinance 120016, until no later than December 31, 2009.

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 _________, 2007, and signed by me in open session in authentication of its passage this _____ day of __________, 2007. _________________________________ President __________of the City Council

Approved by me this ____ day of _________, 2007. _________________________________ Gregory J. Nickels, Mayor

Filed by me this ____ day of _________, 2007. ___________________________________ City Clerk

November 6, 2007 Version #10b