Form revised: December 6, 2011

 

 

 

FISCAL NOTE FOR NON-CAPITAL PROJECTS

 

Department:

Contact Person/Phone:

CBO Analyst/Phone:

LEG

Tony Kilduff

n/a

 

Legislation Title:

A RESOLUTION relating to the Seattle Indian Services Commission; making findings regarding the need for City intervention into the Commission’s affairs; and authorizing the Mayor to undertake such intervention, all following a public hearing held with notice to the Commission.

 

 

Summary of the Legislation:

This legislation establishes the findings of fact to support the City’s intervention in the affairs of the Seattle Indian Services Commission (“Commission”), and provides the legislative authority for the City to do so under SMC 3.110.440.A.2,  and A.8 (as authorized by RCW 35.21.745) to correct the deficiencies identified

 
 
 


Background:  

 

The Commission, which was established in 1972 by the City to provide services to the Indian community in Seattle, owns two buildings.  Both were financed with bonds guaranteed by the City, making the City liable in the event of default.  One of the buildings, the Pearl Warren, has fallen into serious disrepair through neglect and mismanagement and its key tenant has given notice that it will leave if the problem is not corrected quickly.  The loss of the tenant would force default.  The cost of the repairs, estimated at $2.5 million, are well beyond the financial capability of the Commission.

 

Furthermore, the state auditor has noted serious deficiencies in the management and conduct of the Commission in several audits over the last ten years.  None of these has been addressed by the Commission which now seems to be incapable of action.

 

The Commission’s failure to correct the deficiencies detailed by the auditor and the wasting of the assets under its control makes intervention by the City both necessary and urgent.

 

Please check one of the following:

 

__X__ This legislation does not have any financial implications.

(Please skip to “Other Implications” section at the end of the document and answer questions a-h. Earlier sections that are left blank should be deleted. Please delete the instructions provided in parentheses at the end of each question.)

 

 

 

Other Implications: 

 

a)      Does the legislation have indirect financial implications, or long-term implications?

NO

 

b)     What is the financial cost of not implementing the legislation?  

The City may be obliged to meet the debt service on the Commission’s bonds, estimated at $450,000 per year.

 

c)      Does this legislation affect any departments besides the originating department? 

(If so, please list the affected department(s), the nature of the impact (financial, operational, etc), and indicate which staff members in the other department(s) are aware of the proposed legislation.)  NO

 

d)     What are the possible alternatives to the legislation that could achieve the same or similar objectives?  (Include any potential alternatives to the proposed legislation, such as reducing fee-supported activities, identifying outside funding sources for fee-supported activities, etc.)  NONE.

 

e)      Is a public hearing required for this legislation? 

(If yes, what public hearing(s) have been held to date, and/or what public hearing(s) are planned for the future?)

            Yes.  A public hearing will be noticed at introduction.

f)       Is publication of notice with The Daily Journal of Commerce and/or The Seattle Times required for this legislation?

(For example, legislation related to sale of surplus property, condemnation, or certain capital projects with private partners may require publication of notice.  If you aren’t sure, please check with your lawyer.  If publication of notice is required, describe any steps taken to comply with that requirement.)

            No.

g)      Does this legislation affect a piece of property?

(If yes, and if a map or other visual representation of the property is not already included as an exhibit or attachment to the legislation itself, then you must include a map and/or other visual representation of the property and its location as an attachment to the fiscal note.  Place a note on the map attached to the fiscal note that indicates the map is intended for illustrative or informational purposes only and is not intended to modify anything in the legislation.)

            NO

h)     Other Issues:

 

List attachments to the fiscal note below: