Form revised January 17, 2003

Fiscal Note

Each piece of legislation that appropriates funds, creates position authority, or will create a financial impact through policy direction or otherwise, requires a fiscal note. The fiscal note should be drafted by department staff and should include all relevant financial information. After preparation by departmental staff, the Department of Finance will review and make necessary revisions before transmittal to Council.

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Executive Administration	Mel McDonald/3-0071	Jennifer Devore/5-1328

Legislation Title:

AN ORDINANCE relating to taxicab rates; allowing for temporary fuel surcharges, and allowing for temporary suspensions of the twenty-five dollar flat rate from the downtown hotel district to Seattle-Tacoma International Airport, and amending Section 6.310.530 of the Seattle Municipal Code.

Summary of the Legislation:

The proposed ordinance would grant authority to the Director of Executive Administration to impose temporary fuel surcharges on taxicab meter rates, and to temporarily suspend the twenty-five dollar flat rate for taxicab trips from the downtown hotel district to Seattle-Tacoma International Airport. Currently, all taxicab meter rates are set by ordinance. The Director would invoke this authority only when special circumstances beyond taxicab drivers’ control create burdensome price pressures.

There is no fiscal impact on the City from the proposed legislation. The proposed legislation is intended to mitigate temporary disruptions to normal taxicab industry practices.

Appropriations (in $1,000’s):

Fund Name and Number	Department	Budget Control Level*	2003 Appropriation	2004 Anticipated Appropriation
TOTAL			$0	$0

* 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
TOTAL			$0	$0

* 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 Fund
TOTAL			0	0

Notes:

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
TOTAL			None	None

* List each position separately

Do positions sunset in the future? (If yes, identify sunset date):

N/A

Background (Include brief description which states the purpose and context of legislation and include record of previous legislation and funding history, if applicable):

The attached ordinance amends SMC 6.310.530 to grant authority to the Director of the Executive Administration to implement a temporary fuel surcharge for taxicabs, when fuel prices increase dramatically in a short period of time. The surcharge would have a fixed duration, or would be tied to a price threshold. Presently, no mechanism exists to adjust taxi fares to accommodate dramatic increases in fuel prices. Drivers who lease their vehicles as independent contractors and who are least likely to be able to afford the increased costs bear the additional costs of fuel. A surcharge code provision has not been drafted in the past because most dramatic fuel price increases have been relatively short-lived.

The ordinance also provides authority for the Director to suspend the twenty-five dollar flat rate from the downtown hotel district to Seattle-Tacoma International Airport when heightened security at the airport, or other causes result in a dramatic increase in the trip time between the City and the airport. Currently, drivers have no recompense when circumstances contribute to sustained delays in airport trips.

These actions are necessitated by the political situation leading up to and during the United State’s war with Iraq, which has created substantial fuel cost pressures on taxicab drivers, with gasoline prices increasing by more than 30% over the past month. During this period, it is estimated that the typical driver is spending $30 – 40 more on fuel every week. The Department of Executive Administration has developed a briefing paper that supports this proposal and it is attached to this Fiscal Note.

The financial cost of not implementing the legislation (Estimate the costs to the City of not implementing the legislation, including estimated costs to maintain or expand an existing facility or the cost avoidance due to replacement of an existing facility, potential conflicts with regulatory requirements, or other potential costs if the legislation is not implemented):

None to the City. The proposed legislation is intended to mitigate temporary disruptions to normal taxicab industry practices.

Possible alternatives to the legislation which could achieve the same or similar objectives (Include any potential alternatives to the proposed legislation, including using an existing facility to fulfill the uses envisioned by the proposed project, adding components to or subtracting components from the total proposed project, contracting with an outside organization to provide the services the proposed project would fill, or other alternatives):

None.

Is the legislation subject to public hearing requirements (If yes, what public hearings have been held to date):

No.

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

Not applicable.

Attachment: Proposal to Grant DEA Director Authority to Allow Fuel Surcharge and to Suspend Airport Flat Rate.