Form revised December 9, 2004

FISCAL NOTE FOR CAPITAL PROJECTS ONLY

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Parks and Recreation	Korie Voorheis, 684-4135	Jan Oscherwitz 684-8510

Legislation Title:

A RESOLUTION expressing the City Council’s preliminary determination to use the design-build alternative contracting procedure as established in RCW Chapter 39.10 for the design and construction of the Woodland Park Zoo West Parking Garage; and declaring the City Council’s direction to the Department of Parks and Recreation to conduct a public hearing on the issue.

Summary and background of the Legislation:

The proposed resolution establishes the City Council’s preliminary determination to use the “design-build” procedure for the design and construction of the Woodland Park Zoo West Parking Garage (Garage). Through this resolution, the City Council also solicits public review and comment on the use of this alternative procedure for the project.

In 2000, the Department of Parks and Recreation (DPR) entered into an Operations and Management Agreement (Agreement) with the Woodland Park Zoological Society (WPZS) for the operations and management of the Woodland Park Zoo by the WPZS. As part of the Agreement, the City and the WPZS agreed to conduct a study to address traffic and parking issues in the surrounding neighborhood. The Agreement also stipulated that if a parking garage was identified in the Long Range Plan, the City was to partially finance the parking garage. Last fall, following the completion of the traffic and parking studies, and the adoption of the Long Range Plan by Resolution 30701, the City adopted Ordinance 121620 to amend the Operations and Management Agreement. The amendment established the location, parking capacity and maximum project cost for the West Parking Garage, and provided for the WPZS, as the City’s agent, to construct the garage. The amendment to the Agreement also committed the City to provide financing of the Garage to the WPZS no earlier than March 1, 2007, in an amount up to $16.2 million (plus inflation). However, the WPZS will begin designing the Garage in 2005, with an expected completion/opening date in 2008, thus the need for this resolution in 2005.

The WPZS and DPR believe it is critical to use the “design-build” option because it will eliminate unforeseen cost liabilities between design and construction phases, and produce built-in cost controls and accountability, thus streamlining the construction process and reducing the risk of costly change orders. The project meets the criteria established in RCW Chapter 39.10.051 for use of the design-build procedure in public works projects: The project cost is over $10 million and the design of the Garage is repetitive in nature and is an incidental part of the construction of the Garage. The basic layout and structural design of parking garages is well established. The vast majority of project design and construction resources for this project will be dedicated to relatively repetitive, standard design features and construction. Architectural guidelines for non-exhibit buildings are established in the Zoo’s Long Range Development Plan; additional specific design requirements established prior to hiring a design-build team, and a competitive selection process for the design-build team, will ensure that design criteria are met prior to the selection of a design-build team. The advantages associated with using a design-build team will produce significant savings for the City and the WPZS, while producing a quality facility.

Project Name:	Project I.D.	Project Location:	Start Date:	End Date
Woodland Park Zoo Garage	K732291	5500 Phinney Avenue North	1^st Quarter 2007 (see note below)	1^st Quarter 2008

Note:

· Please check any of the following that apply:

____ This legislation creates, funds, or anticipates a new CIP Project. (Please note whether the current CIP is being amended through this ordinance, or provide the Ordinance or Council Bill number of the separate legislation that has amended/is amending the CIP.)

____ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)

__X_ This legislation has financial implications. (Please complete all relevant sections that follow.)

Notes: Although the proposed resolution does not appropriate any funds, it does move the City along the process of constructing the Garage through its agent, the Woodland Park Zoological Society (WPZS), at the Woodland Park Zoo. It is anticipated that the City will reap substantial financial benefit from utilizing the design-build approach, but this benefit has not been quantified. The project associated with the proposed resolution is expected to have appropriation in 2007, as a result of legislation passed in 2004 (Ordinance 121620). For details about the financial assumptions of the Garage and the cost sharing arrangement between the City and the WPZS, see the fiscal note associated with Ordinance 121620.

· What is the financial cost of not implementing the legislation:

If this legislation is not implemented, the WPZS would proceed with a design-bid-build procurement method. The financial cost of using this method is difficult to quantify but runs the risk of incurring unplanned costs due to lost coordination advantages between design and construction phases, including the potential for a significant negative variance between the designer’s construction cost estimate and actual low bid by the contractor to perform the work.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives

One alternative to this legislation is to utilize the design-bid-build method. As noted above, it is likely to be a more costly alternative, involve more risk, and have less built-in accountability controls.

· Is the legislation subject to public hearing requirements:

Yes, this legislation is subject to public hearing requirements. A hearing will be held by the City Council after a 20 day period following adoption of the attached resolution, with formal oral and written testimony being received. The testimony will be presented along with the resolution requesting the use of the design-build method.

Several public meetings and hearings have already been held regarding the Woodland Park Zoo Long Range Plan, which included the plan for a West Parking Garage.

· Other Issues (including long-term implications of the legislation): None.

Please list attachments to the fiscal note below: