Form revised December 4, 2006

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Seattle Public Utilities	Bob Gambill 684-5969	John McCoy 615-1281

Legislation Title:

AN ORDINANCE relating to Seattle Public Utilities; declaring an airspace corridor over the

Cedar River pipeline #4 water transmission pipeline right-of-way, located in the City of Tukwila in the vicinity of Southcenter Shopping Mall in the S 1/2 of the SE 1/4 of Section 23, Township 23 North, Range 4 East, W.M., in King County, Washington, surplus to the City's needs and not required for continued utility service, and authorizing sale of that airspace corridor to the Washington State Department of Transportation under the threat of condemnation.

· Summary of the Legislation:

This legislation authorizes the sale of a surplus airspace right to the Washington State Department of Transportation (WSDOT) over a Seattle Public Utilities water transmission pipeline right–of-way for $1,053,000.

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

WSDOT would like to purchase an unused airspace right from Seattle Public Utilities to widen Interstate 405 in the City of Tukwila. In addition to the fee for this right, WSDOT would mitigate the impacts to SPU’s 60-inch water pipeline by installing a new pipeline inside of the existing pipeline for approximately 900 feet or, at a minimum, 10 feet beyond the full airspace right WSDOT would acquire. This so-called “slip-lining” would have an estimated service life of more than 150 years.

· Please check one of the following:

____ 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 table should reflect appropriations that are a direct result of this legislation. In the event that the project/ programs associated with this ordinance have appropriations that were, or will be, received because of previous or future legislation or budget actions, please provide details in the Notes section below.

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

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

Notes:

Anticipated Revenue/Reimbursement: Resulting From This Legislation: This table should reflect revenues/reimbursements that are a direct result of this legislation. In the event that the issues/projects associated with this ordinance/resolution have revenues or reimbursements that were, or will be, received because of previous or future legislation or budget actions, please provide details in the Notes section below the table.

Fund Name and Number	Department	Revenue Source	2007 Revenue	2008 Revenue
43000 Water Fund	Seattle Public Utilities	State of Washington Dept of Transportation	$1,053,000
TOTAL			$1,053,000

Notes:

The additional revenue will help the Water Fund meet financial performance and could slightly reduce pressure on future water rates.

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact: This table should only reflect the actual number of positions created by this legislation In the event that positions have been, or will be, created as a result of previous or future legislation or budget actions, please provide details in the Notes section below the table.

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

* List each position separately

** 2008 positions and FTE are total 2008 position changes resulting from this legislation, not incremental changes. Therefore, under 2008, please be sure to include any continuing positions from 2007.

Notes:

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

N/A

Spending/Cash Flow: This table should be completed only in those cases where part or all of the funds authorized by this legislation will be spent in a different year than when they were appropriated (e.g., as in the case of certain grants and capital projects). Details surrounding spending that will occur in future years should be provided in the Notes section below the table.

Fund Name and Number	Department	Budget Control Level*	2007 Expenditures	2008 Anticipated Expenditures
N/A
TOTAL	N/A

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

Notes:

· What is 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.)

The financial cost of not implementing this legislation would be in excess of $1,053,000, the amount SPU would forego by not selling this property right. The State and SPU entered into a preliminary engineering agreement to help mitigate financial impacts to SPU from the project and to facilitate State payment for labor costs of the property rights negotiation. To date this total is approximately $51,000. This $51,000 of reimbursable labor costs already incurred would be lost if this legislation is not passed. Also, without this legislation, SPU would not be receiving approximately 900 feet of 60-inch pipeline paid for at State expense.

· 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.

· Is the legislation subject to public hearing requirements: (If yes, what public hearings have been held to date, and/or what plans are in place to hold a public hearing(s) in the future.)

Yes. The public hearing requirement will be met through the Environment, Emergency Management and Utilities Committee Meeting.

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

None.

Please list attachments to the fiscal note below: