CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to the Pacific Place Garage and the Parking Garage Operations Fund; authorizing the loan of funds from the Fleet Services Subfund (50320), a subfund of the Finance and Administrative Services Fund, to the Parking Garage Operations Fund (46010).
body
WHEREAS, The City of Seattle acquired the Pacific Place Garage through agreements authorized by Ordinance 118011 for the purpose of encouraging short-term parking in, and contributing to the revitalization of, the downtown retail core with the intent that revenues from the operation of the Pacific Place Garage would pay all costs of the Garage, including the cost of debt service on the financing of the Garage; and
WHEREAS, due to economic conditions, rising debt service payments, and other factors, net proceeds from the operation of the Garage historically have not been sufficient to pay all costs of its operations, support a positive cash balance in the Parking Garage Operations Fund, and maintain the Garage’s parking rates below prevailing market levels in accordance with the objective of revitalizing the downtown retail core; and
WHEREAS, the City Council passed Ordinance 124348, authorizing a loan of not more than $9,500,000 to the Parking Garage Operations Fund from the City’s Consolidated (Residual) Cash Pool, which expired December 31, 2015; and
WHEREAS, the City wishes to replace the expired loan with a new loan, one which expires December 31, 2016, and will not exceed $10,000,000; and
WHEREAS, Seattle Municipal Code subsection 5.06.030.C requires City Council approval by ordinance of any interfund loan for a duration of more than 90 days; and
WHEREAS, there is sufficient cash in the Fleet Services Subfund (50320) of the Finance and Administrative Services Fund to support a revolving loan of up to $10,000,000 through the end of 2016; and
WHEREAS, funds loaned to the Parking Garage Operations Fund are anticipated to be repaid to the Fleet Services Subfund (50320) from proceeds from the sale of the Pacific Place Garage; and
WHEREAS, by Resolution 31553, the City Council revised its Debt Management Policies, including policies relating to the use of interfund loans, which require a finding that no viable alternative is available for advancing a core City objective for this type of interfund loan request; and
WHEREAS, the Finance and Budget Directors have determined that this request is consistent with the Debt Management Policies because there is no viable alternative currently available to meet the City’s legal obligations relating to the Pacific Place Garage agreements and paying debt service on the Garage; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. The City Council finds that there is no viable alternative to meet a core City objective, and therefore the Director of Finance is authorized to make a revolving loan of not more than $10,000,000 principal and interest outstanding at any one time from the Fleet Services Subfund (50320) of the Finance and Administrative Services Fund to the Parking Garage Operations Fund (46010) through December 31, 2016. The authority under this ordinance and the loan shall expire when repaid with interest at the rate of return of the City’s Consolidated (Residual) Cash Pool. The loan is intended to be repaid with proceeds from the sale of the Pacific Place Garage within 30 days following closing of the sale.
Section 2. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.
Passed by the City Council the ____ day of ________________________, 2016, and
signed by me in open session in authentication of its passage this
_____ day of ___________________, 2016.
_________________________________
President __________ of the City Council
Approved by me this ____ day of _____________________, 2016.
_________________________________
Edward B. Murray, Mayor
Filed by me this ____ day of __________________________, 2016.
____________________________________
Monica Martinez Simmons, City Clerk
(Seal)