Form revised February 22, 2006

FISCAL NOTE FOR CAPITAL PROJECTS ONLY

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Seattle Center	Shelly Yapp/615-1729 Ned Dunn/684-7212 Kerry Smith/615-0358	Cheryl Swab/684-8053

Legislation Title: AN ORDINANCE relating to the Seattle Center Department; authorizing execution of a grant agreement with the Federal Transit Administration for funds for Monorail rehabilitation; accepting funds from Seattle Monorail Services for the matching fund requirement for the grant; making a contingent reimbursable appropriation from the Cumulative Reserve Subfund; and amending the 2006-2011 Adopted Capital Improvement Program, all by a three fourths vote of the City Council.

Summary and background of the Legislation:

This legislation authorizes the City to enter into a grant agreement with the United States Federal Transit Administration (FTA) for $602,000.  The grant will be used to make improvements to the Seattle Center Monorail.  The grant has a matching funds requirement of $150,500 that will be provided by Seattle Monorail Services (SMS), the concessionaire operating the Monorail, through Monorail system revenues.  The legislation also authorizes acceptance of these funds.  The total project budget is $752,500.  Under the concession agreement with SMS, Seattle Center and SMS share equally in the net proceeds of the Monorail system.  Allocating $150,500 as grant matching funds reduces the amount of net revenue that would be shared between SMS and Seattle Center.  This legislation also directs the FTA grant and the SMS match to be deposited into the Cumulative Reserve Subfund from which the contingent reimbursable appropriation is made.

The City of Seattle has received FTA grant funds for Monorail rehabilitation and improvements since 1995.  Over the years the funds have been used to accomplish a number of rehabilitation and improvement projects for the Monorail system.  The 2003-2004 FTA grant funding cycle included the funds addressed by this legislation, but the funds were not appropriated due to the anticipated demolition of the Seattle Center Monorail for the Seattle Monorail Project.  On November 8, 2005 the voters determined that the Seattle Monorail Project should be terminated making it reasonable to continue to use FTA grant funds for the Seattle Center Monorail.  Later that month, the Seattle Center Monorail trains were in a collision that rendered both trains inoperable.  Collision repairs to the trains, estimated at $3,000,000, are covered by insurance. 

This legislation would allow additional changes and improvements to be made to the Monorail system, some of which would help ensure that a similar collision would not recur.  Proposed work includes guideway repairs, new and/or improved sensors, controllers, wheel brakes, signaling equipment, and other station and train rehabilitation elements needed to integrate otherwise separate systems into one system.   FTA and matching funds provided by SMS would be used to pay for the changes and improvements not covered by insurance.   The 2006-2011 adopted CIP is amended by this legislation. 

Project Name:	Project I.D.	Project Location:	Start Date:	End Date
Monorail Improvements	S9403	Seattle Center	2006	2007

· Please check any of the following that apply:

__X_ This legislation creates, funds, or anticipates a new CIP Project.

The 2006-2011 Adopted CIP is amended by this legislation. 

____ This legislation does not have any financial implications.

__X_ This legislation has financial implications.

Appropriations: 

Fund Name and Number	Department	Budget Control Level*	2006 Appropriation	2007 Anticipated Appropriation
Cumulative Reserve Subfund – Unrestricted Subaccount (00164)	Seattle Center	Monorail Improvements (S9403)	$752,500	$0
TOTAL			$752,500	$0

Notes: The current legislation, in concert with the repairs funded by insurance and system revenues, is designed to address returning the Monorail to service following the accident and addressing system changes to help ensure a similar accident would not recur. 

Spending Plan and Future Appropriations for Capital Projects:  Please list the timing of anticipated appropriation authority requests and expected spending plan.  In addition, please identify your cost estimate methodology including inflation assumptions, the projected costs of meeting applicable LEED standards, and the percent for art and design as appropriate.

Spending Plan and Budget	2006	2007	2008	2009	2010	2011	Total
Spending Plan	$752,500
Current Year Appropriation	$752,500
Future Appropriations

Notes:  SMS, in consultation with design professionals and the limited number of Monorail vendors available, has developed the cost estimate for this project.  The estimate also includes 15% of costs for design and project management expenses.  The cost estimate was made using 2006 dollars and the expenditures will be made in 2006 so no budget increases were made for inflation.  LEED standards and percent for art are not applicable to this project.

Funding source: Identify funding sources including revenue generated from the project and the expected level of funding from each source.

Funding Source (Fund Name and Number, if applicable)	2006	2007	2008	2009	2010	2011	Total
FTA Grant	$602,000
SMS Matching Funds	$150,500
TOTAL	$752,500

Notes:  The FTA grant is a reimbursable grant so a contingent appropriation of $752,500 is being made from the Cumulative Reserve Subfund with the FTA grant reimbursing $602,000 of that appropriation and the matching funds of $152,500 being provided by SMS reimbursing the balance.

Bond Financing Required:

Type	Amount	Assumed Interest Rate	Term	Timing	Expected Annual Debt Service/Payment
TOTAL	0	NA	NA	NA	NA

Uses and Sources for Operation and Maintenance Costs for the Project:

O&M	2006	2007	2008	2009	2010	2011	Total
Uses
Start Up
On-going
Sources (itemize)
	0	0	0	0	0	0	0

Notes:  The operating and maintenance costs of the Monorail are paid by SMS through the Monorail system proceeds.  Implementation of this legislation will not result in additional start up costs or increase the regular operating costs.

Periodic Major Maintenance costs for the project: Estimate capital cost of performing periodic maintenance over life of facility.  Please identify major work items, frequency.

Major Maintenance Item	Frequency	Cost	Likely Funding Source
See Below
TOTAL

Funding sources for replacement of project:  Identify possible and/or recommended method of financing the project replacement costs.

Since 1995 Major Maintenance and capital improvements to the Monorail have been funded through FTA grants with matching funds provided by the City, primarily through the Cumulative Reserve Fund.  In 2001 SMS and the City agreed to provide FTA grant matching funds with the creation of a special fund which dedicates 5% of Monorail revenues, up to $150,000 per year, to be used for capital improvements or as matching funds for grants.  

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact: 

Position Title and Department*

Fund Name

Fund Number

Part-Time/ Full Time

2006 Positions

2006 FTE

2007 Positions**

2007 FTE**

TOTAL

0

0

0

0

0

*   List each position separately

** 2007 positions and FTE are total 2007 position changes resulting from this legislation, not incremental changes. Therefore, under 2007, please be sure to include any continuing positions from 2006.

Notes:   NA

· Do positions sunset in the future?  (If yes, identify sunset date):

NA

· What is the financial cost of not implementing the legislation: (Estimate the costs to the City of not implementing the legislation, including estimated costs to maintain or expand an existing facility or the cost avoidance due to replacement of an existing facility, potential conflicts with regulatory requirements, or other potential costs if the legislation is not implemented):

If the legislation were not implemented the City does not minimize the risk that a collision between the trains like that experienced in November could recur. 

The City may also request that the FTA reprogram the funds to alternative Monorail system improvements, but the FTA grants are limited to fixed guideway transportation systems, so there are limited alternative uses of the grant funds.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives (Include any potential alternatives to the proposed legislation, including using an existing facility to fulfill the uses envisioned by the proposed project, adding components to or subtracting components from the total proposed project, contracting with an outside organization to provide the services the proposed project would fill, or other alternatives):

An alternative to the legislation would be to decide not to implement the proposed system changes.  The trains, after the collision damage is repaired, will operate without the proposed changes, but the risk of collision like the one experienced in November would not be minimized.  Another option would be to identify an alternative funding source, but since the improvements are fully funded through FTA grant funds and Monorail system proceeds, finding an alternative that has less financial cost to the City is unlikely.  A third option would be to limit train operation to one train at a time.  The trains cannot collide if only one train is operating.  While a possibility, this option might be of concern to the Washington Department of Transportation (WSDOT) in its regulatory capacity over the Monorail because the second train provides the primary means of emergency egress from the Monorail.  If one train operation were implemented no significant change in costs would be expected, but there would be a decrease in system revenues due to the reduced service levels.

· Is the legislation subject to public hearing requirements: (If yes, what public hearings have been held to date, and/or what plans are in place to hold a public hearing(s) in the future?)

No

· Other Issues (including long-term implications of the legislation):

Please list attachments to the fiscal note below: