Form revised December 4, 2006

FISCAL NOTE FOR CAPITAL PROJECTS ONLY

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Seattle Public Utilities	Bob Hennessey/615-0740	John McCoy/615-0768

Legislation Title: AN ORDINANCE relating to appropriations for solid waste facilities in the 2007 City Budget for Seattle Public Utilities.

Summary and background of the Legislation:

In November, 2003, SPU published its Solid Waste Facilities Master Plan (SWFMP) which recommends rebuilding the existing North and South Transfer Stations and constructing a new solid waste intermodal transport facility for loading and transporting waste out of the city.  The two transfer stations are more than 40 years old and do not provide sufficient space for current operations.

The Council placed a proviso on spending funds appropriated in SPU’s 2007 New Facilities BCL until a study evaluating waste reduction and recycling programs, and the SWFMP could be completed.  The purpose of the study was to determine if the City could do more to reduce the amount of waste disposed and, if so, whether the reduction would alter the size, need, and number of facilities to transfer waste for recycling and disposal.  The report was completed in April 2007 and the Council and Executive have since agreed on a package of new programs and a facility configuration that includes reconstructing the North and South Transfer Stations, but not building an intermodal facility.  This legislation would remove the budget proviso placed on the 2007 New Facilities BCL (C230B), allowing SPU to continue work on the transfer stations.  It would also revise budget allocations for the intermodal project and the South Transfer Station project and redefine the scope of the intermodal project.

Project Name:	Project I.D.	Project Location:	Start Date:	End Date
North Transfer Station Rebuild	C207005	1350 North 34^th St. Seattle, WA 98103	1/1/2006	12/31/2012
South Transfer Station Rebuild	C207006	8100 2^nd Ave. S. Seattle, WA 98108	1/1/2006	12/31/2012
Intermodal Transport Facility	C207004	Unknown	1/1/2006	12/31/2007 (revised)

· Please check any of the following that apply:

____ This legislation creates, funds, or anticipates a new CIP Project. (Please note whether the current CIP is being amended through this ordinance, or provide the Ordinance or Council Bill number of the separate legislation that has amended/is amending the CIP.)

____ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)

_X__ This legislation has financial implications. (Please complete all relevant sections that follow.) 

Appropriations:  This ordinance makes no new appropriations.

Fund Name and Number	Department	Budget Control Level*	2007 Appropriation	2008 Anticipated Appropriation
TOTAL

*See budget book to obtain the appropriate Budget Control Level for your department.

Notes: 

Spending Plan and Future Appropriations for Capital Projects:

Spending Plan and Budget	2007	2008	2009	2010	2011	2012	Total
Spending Plan	$15,041,000	TBD	TBD	TBD	TBD	TBD	TBD
Current Year Appropriation	$13,341,000
Future Appropriations		TBD	TBD	TBD	TBD	TBD	TBD

Notes:  Figures refer to the three facilities projects taken together.  The ordinance re-allocates $6.3 million from the Intermodal Transport Facility Project to the South Transfer Station Project rebuild to allow for property acquisition and associated project and relocation costs to occur in 2007.  Overall budget authority is unchanged.  The higher spending plan reflects the additional $1.7 million in unspent authority that will carry forward from 2006 into the South Transfer Station project.  SPU labor includes LEED training for New Construction and Major Renovations. Art and Design Commission fees are included in the spending plan estimate.  Future appropriations and spending will be presented in the forthcoming 2008-2013 Capital Improvement Program.

Funding source: Identify funding sources including revenue generated from the project and the expected level of funding from each source.

Funding Source (Fund Name and Number, if applicable)	2007	2008	2009	2010	2011	2012	Total
Solid Waste Fund 450101	$15,041,000
TOTAL	$15,041,000

Notes: 

Bond Financing Required:  No. The 2007 Solid Waste Fund CIP will be supported by operating cash and a line of credit.  The Solid Waste Fund is expecting to issue 25-year bonds in late 2007 to pay-off its existing line of credit and finance a significant portion of the Solid Waste Fund CIP through at least 2009.  The legislation for the bond issue will accompany the 2008 Solid Waste Rate Proposal.

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	2007	2008	2009	2010	2011	2012	Total
Uses
Start Up
On-going
Sources (itemize)

Notes:

Periodic Major Maintenance costs for the project: Estimate capital cost of performing periodic maintenance over life of facility.  Please identify major work items, frequency.

Major Maintenance Item	Frequency	Cost	Likely Funding Source
TOTAL

There is no maintenance associated with lifting the proviso.

Funding sources for replacement of project:  Identify possible and/or recommended method of financing the project replacement costs.

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact: 

Position Title and Department*		Fund Name	Fund Number	Part-Time/ Full Time	2007 Positions	2007 FTE	2008 Positions**	2008 FTE**
	TOTAL

*   List each position separately

Notes:

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

No positions sunset in the future.

· What is the financial cost of not implementing the legislation:

If the legislation is not passed, Seattle’s solid waste facilities will not be replaced or upgraded, and more frequent down time can be expected.  Each time a station is down, the waste is re-directed to other operating stations, but this usually costs thousands of dollars more each day.  The other stations in the system have limited capacity and the City’s ability to ship waste out of Seattle may be impaired if that capacity is exceeded.  The accumulation of waste in Seattle and unsanitary conditions would lead to other costs to the City.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives:  None

· Is the legislation subject to public hearing requirements:

No.

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

Lifting the 2007 budget proviso will allow SPU to proceed with upgrades to the City’s solid waste facilities.  These improvements will ensure that the City has the ability to transfer waste and recyclables in a safe, economical, and environmentally sound manner.

Please list attachments to the fiscal note below:

SPU - Solid Waste

Solid Waste Facility Master Plan -- Intermodal Transport Facility

BCL/Program Name: New Facilities BCL/Program Code: C230B

Project Type: New Facility Start Date: 1st Quarter 2006

Project ID: C207004 End Date: 4th Quarter 2007

Location:

Neighborhood Plan: In more than one Plan Neighborhood Plan Multiple

Neighborhood In more than one District Urban In more than one Urban Village

This project formerly implemented the Solid Waste Facilities Master Plan by planning, designing and building a new solid waste intermodal transfer facility.  In the wake of the “Seattle Solid Waste Recycling, Waste Reduction and Facilities Opportunities” report, the Executive, Council and SPU decided not to build an intermodal facility but to proceed with other elements of the master plan.  Remaining project budget in 2007 supports planning to date, including costs for the study, and close-out activities.

LTD 2006 2007 2008 2009 2010 2011 2012 Total

Revenue Sources

Solid Waste Rates 0 500 1,600 0 0 0 0 0 2,100

Project Total: 0 500 1,600 0 0 0 5 0 2,100

Fund Appropriations/Allocations

SPU Solid Waste Fund 0 500 1,600 0 0 0 0 0 2,100

Appropriations Total* 0 500 1,600 0 0 0 0 0 2,100

O && M Costs (Savings) 0 0 0 0 0 0 0

*This detail is for information only. Funds are appropriated in the budget at the Budget Control Level. Amounts in thousands of dollars.

2007-2012 Adopted Capital Improvement Program

No attachments.