Fiscal Note

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Department of Neighborhoods	Hazel Bhang, 615-0885 DaVonna Johnson, 684-0261	Sara Levin, 684-8691

Legislation Title:

AN ORDINANCE related to Cable Communications; authorizing an agreement to establish a cable subscriber service center at the City’s Department of Neighborhoods facility at 23^rd Avenue S. and S. Jackson Street; increasing an appropriation in the 2003 Department of Neighborhoods budget; and creating new positions in that department, all by a three-fourths vote of the City Council.

Summary of the Legislation:

This proposed legislation authorizes the execution of an agreement (Exhibit A) between the City of Seattle, Millennium Digital Media Systems, LLC (“MDM”) and Comcast of Washington IV, Inc. and Comcast of Washington I, Inc. (“Comcast”) for financial assistance to establish a cable subscriber service at the City’s Department of Neighborhoods facility at 23^rd and Jackson Street. The cable companies will compensate the City for cable payment services to be provided at this facility. This legislation increases the 2003 Department of Neighborhoods budget by $74,000 and adds 1.25 FTE to the department to carry out the responsibilities involved with the cable payment station.

Appropriations (in $1,000’s):

Fund Name and Number	Department	Budget Control Level*	2003 Appropriation	2004 Anticipated Appropriation
General Subfund 00100	Department of Neighborhoods	Customer Service (I3200)	74
TOTAL			74

* This is line of business for operating budgets, and program or project for capital improvements

Notes:

Expenditures (in $1,000’s):

Fund Name and Number	Department	Budget Control Level*	2003 Expenditures	2004 Anticipated Expenditures
General Subfund 00100	Department of Neighborhoods	Customer Service (I3200)	48	26
TOTAL			48	26

* This is line of business for operating budgets, and program or project for capital improvements

Notes:

Anticipated Revenue/Reimbursement (in $1,000’s):

Fund Name and Number	Department	Revenue Source	2003 Revenue	2004 Revenue
General Subfund 00100	Department of Neighborhoods	Customer Service (I3200)	48	26
TOTAL			48	26

Notes: The Department of Neighborhoods will be billing MDM and Comcast on a quarterly basis, following execution of the agreement. The above breakdown between 2003 and 2004 revenues is an estimate, and will be based on the date at which the agreement is executed.

Total Permanent Positions Created Or Abrogated Through Legislation, Including FTE Impact; Estimated FTE Impact for Temporary Positions:

Fund Name and Number	Department	Position Title*	2003 FTE	2004 FTE
General Subfund 00100	Department of Neighborhoods	Customer Service Representative, Sr	.75
General Subfund 00100	Department of Neighborhoods	Customer Service Representative	.50
TOTAL			1.25

* List each position separately

Do positions sunset in the future?

Yes. These positions will sunset if the agreement between the City and the cable companies is not renewed. The term of the initial agreement is 12 months from the date the agreement is signed, with the option to renew.

Background

The Office of Cable Communications in the Department of Information Technology and the Department of Neighborhoods, together with Comcast and MDM have developed a program for these cable companies to satisfy franchise and Cable Customer Bill of Rights (CCBOR) obligations to provide in-city cable bill paying opportunities. Section 21.60.820 B of the Seattle Municipal Code requires cable companies operating in Seattle to have two in-town customer service offices. The agreement attached to this legislation allows Seattle citizens to pay their Comcast and MDM Cable payments in person, at the Central Neighborhood Service Center (NSC) located at 23rd Avenue S. and S. Jackson. Customers will also be able to obtain same-day credit for their payments, thereby stopping potential shut-off of cable service. As a result of this agreement, the Central NSC will be open 23 additional hours per week, providing cable payment and enhancing customer access to all services the Central Neighborhood Service Center provides.

The financial cost of not implementing the legislation

If the legislation is not implemented, Comcast and MDM will continue to be in violation of SMC 21.60.820 B, and will be subject to damages owed to the City. This legislation allows the Department of Neighborhoods to open the Central Neighborhood Service Center to the public for 23 additional hours a week at no additional cost to the City.

Possible alternatives to the legislation which could achieve the same or similar objectives

Comcast and MDM could decide to find another location at which to provide these services.

Is the legislation subject to public hearing requirements?:

No

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

If either Comcast, MDM, or the City of Seattle does not agree to renew the agreement to provide pay in person services at the Central Neighborhood Service Center the .5 FTE Customer Service Rep and the .75 Senior Customer Service Rep positions will sunset at the end of the agreement.

FOR CAPITAL PROJECTS ONLY

Background

N/A

Project Name:

Project Location:

Start Date:

End Date:

Spending Plan and Future Appropriations for Capital Projects

Spending Plan and Budget	2003	2004	2005	2006	2007	2008	Total
Spending Plan
Current Year Appropriation
Future Appropriations

Key Assumptions:

Funding source:

Funding Source	2003	2004	2005	2006	2007	2008	Total
TOTAL

Bond Financing Required:

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

Uses and Sources for Operation and Maintenance Costs for the Project

O&M	2003	2004	2005	2006	2007	2008	Total
Uses
Start Up
On-going
Sources (itemize)

Key Assumptions:

N/A

Periodic Major Maintenance costs for the project:

Major Maintenance Item	Frequency	Cost	Likely Funding Source
TOTAL

Funding sources for replacement of project:

N/A

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