AN ORDINANCE relating to the Alaskan Way Seawall Replacement Project; providing for the submission to the voters of the City, at an election to be held on November 6, 2012, of a proposition authorizing the City to issue general obligation bonds to pay costs related to the design, construction, renovation, improvement and replacement of the Alaskan Way seawall and associated public infrastructure; the principal of and interest on such bonds to be payable from annual property tax levies to be made in excess of regular property tax levies; and ratifying and confirming certain prior acts.
WHEREAS, the existing Alaskan Way seawall is seriously deteriorated due to aging components and materials, the tidal forces of Elliott Bay, and marine borer damage, with approximately 50 percent of the existing wall currently damaged; and
WHEREAS, the Seawall is not designed to withstand earthquakes and there is a one in ten chance in the next ten years of an earthquake that would lead to liquefaction and Seawall failure; and
WHEREAS, failure of the Seawall would severely disrupt public transportation and commerce, and could lead to widespread property damage, injury and loss of life, thus, a replacement Seawall is essential both to public safety and to the local and regional economy; and
WHEREAS, a properly designed and built Seawall is expected to protect the City and its residents and workers for the next 100 years; and
WHEREAS, the engineering and design for the Seawall replacement project (also known as the Elliott Bay Seawall Project) has now advanced to the 35 percent stage where cost estimates and timelines for construction have been reasonably established; and
WHEREAS, Pier 58 is seismically vulnerable and the structural deficiencies of Piers 62/63 have forced the City to significantly limit activities on the piers in order to protect public safety; and
WHEREAS, reconstruction of the pilings and decks of Piers 58 and 62/63 can be efficiently completed while Seawall construction occurs thereby reducing disruption to waterfront businesses and activities; and
WHEREAS, the costs of replacing the Seawall, restoring the Piers and making the other infrastructure repairs that are essential to public safety exceed the funding available from existing City revenue sources; and
WHEREAS, Seattle's central waterfront is a unique asset of our community and replacement of the Seawall will ensure that Alaskan Way can be rebuilt on time as part of the Alaskan Way Viaduct Replacement Program and that the necessary structural foundation and seismic protection will be in place for the soon-to-be-redeveloped Alaskan Way recreational, cultural, social, and economic improvements; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1 . If approved by voters, the City is authorized to issue bonds to fund a portion of the costs related to the design, construction, renovation, improvement and replacement of the Alaskan Way seawall and associated public facilities and infrastructure, including City-owned waterfront piers (collectively, the "Project").
Section 2 . The City shall incur indebtedness and borrow an amount not to exceed $290,000,000 on the credit of the City and issue and sell its general obligation bonds or other evidences of indebtedness, which may include but are not limited to, lease obligations ("Bonds"), in an amount not to exceed that principal amount for strictly municipal capital purpose, other than the replacement of equipment, to provide all or part of the funds for the Project. Costs of environmental, engineering, design, architectural, planning, consulting, project and construction management, construction, inspection, testing, financial, audit, legal and other services lawfully incurred incident to the Project, completion of a feasibility study for the Alaskan Way seawall, repayment with interest of interfund loans for project expenses, costs of issuance (including election costs) and sale of the Bonds, administrative, permit, relocation and mitigation expenses, site and right of way improvement, demolition, road improvement, and other similar activities or purposes, and an apportionment equal to one percent (1%) of estimated construction expenditures on the Project upon public works for art pursuant to Seattle Municipal Code Section 20.32.030, shall be appropriate capital costs to be paid from the proceeds of the Bonds authorized by this ordinance.
The City Council declares that to the extent, if any, the City prior to the date that Bonds or other short-term obligations are issued to finance the Project shall make capital expenditures for the Project from funds that are not (and are not reasonably expected to be) reserved, allocated on a long-term basis or otherwise set aside by the City under its existing and reasonably foreseeable budgetary and financial circumstances to finance the Project, those capital expenditures are intended to be reimbursed out of proceeds of the Bonds or other short-term obligations issued in an amount not to exceed the principal amount authorized by this ordinance.
Section 3 . The City shall seek supplemental, matching or additional funds from other sources to pay all or part of the cost of the Project or any component thereof. If the Project shall have been completed and Bond proceeds remain unexpended, then those proceeds may be applied to costs of other waterfront improvements or infrastructure construction, repair or replacement, or to the payment of debt service on Bonds, all as determined by ordinance. Should the funds, including the Bond proceeds, available for the Project be insufficient to complete the Project, the City may delay completion of all or any element of the Project until adequate funding is available, or may eliminate any element.
Section 4 . The Bonds shall be issued in one or more series, or as part of a combined issue or issues with other authorized bonds, and shall be issued within ten years of the date of voter approval of the Bonds. The Bonds also may evidence a line or lines of credit. The Bonds shall bear interest (which may be fixed or variable) payable as permitted by law; may mature serially or as term bonds with the longest maturities being within 30 years from their date or within any shorter period fixed by ordinance; and shall be issued and sold in the manner, at the times and in the amounts as shall be determined by or pursuant to ordinance. The exact date, form, terms, options of prior redemption, price, interest rate or rates and maturities of the Bonds and pledges and covenants shall be fixed by or pursuant to ordinance. The Bonds shall be paid by annual property tax levies sufficient in amount to pay both principal and interest when due, which annual property tax levies shall be made in excess of regular property tax levies without limitation as to rate or amount but only in amounts sufficient to pay both principal and interest when due.
Pending issuance of the Bonds and receipt of their proceeds, the City may authorize the issuance of short-term obligations pursuant to chapter 39.50 RCW, and the costs of those short-term obligations shall be included in the cost of the Project for which the Bonds are issued.
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