Form revised November 15, 2007

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Seattle Public Utilities	Hans Van Dusen/4-4657	John McCoy/5-0768

Legislation Title:

AN ORDINANCE authorizing the Director of Seattle Public Utilities to enter into contracts with Waste Management of Washington, Inc. and CleanScapes, Inc. to provide solid waste collection and transfer services in the City of Seattle.

· Summary of the Legislation:

This legislation allows SPU to enter into service agreements with Waste Management of Washington, Inc. and CleanScapes, Inc. to collect and transfer solid waste in the City of Seattle.

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

SPU has contracts with Waste Management of Washington, Inc. and Rabanco, Ltd. to collect and transfer solid waste in Seattle. These contracts expire in March 2009. Following a seven-month RFP process conducted in 2007, SPU selected Waste Management and CleanScapes for new contracts to collect and transfer the City’s solid waste for the period April 2009 through March 2019. The new contracts combine both commercial and residential services and add a variety of service improvements. The new agreements would cost about $62.5 million annually, compared to $42 million annually for the final year of the current contracts, which were negotiated a decade ago. Major contributors to this escalation include the cost of new, cleaner collection vehicles; significant driver wage and benefit increases over the last decade; weekly yard waste service and other improved service levels; higher fuel costs; and increased risk perception and return on investment criteria by the collection companies.

· 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*	2008 Appropriation	2009 Anticipated Appropriation
			$0	$15,400,000
TOTAL			$0	$15,400,000

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

Notes: This legislation does not require additional appropriations in 2008 as services under this contract do not begin until April, 2009. The 2008 budget appropriation is sufficient for payment of the current contract costs.

The amount shown for 2009 is an estimate only of the increase in 2009 collection and transfer costs over current 2008 estimates. It does not include disposal or other contract costs or their anticipated increases for 2009. Appropriation to pay for all 2009 solid waste contract costs, including the increases resulting from the new collection and transfer contracts, will be requested via the budget process.

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	2008 Revenue	2009 Revenue
TOTAL

Notes: The rate revenue needed as a result of this legislation will be requested via a rate ordinance.

Total Regular Positions Created, Modified, 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*	Position Number for Existing Positions	Fund Name and Number	Part-Time/ Full Time	2008 Positions	2008 FTE	2009 Positions**	2009 FTE**
TOTAL

* List each position separately

** 2009 positions and FTE are total 2009 position changes resulting from this legislation, not incremental changes. Therefore, under 2009, please be sure to include any continuing positions from 2008.

Notes: There are no direct FTE impacts resulting from this legislation.

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

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*	2008 Expenditures	2009 Anticipated Expenditures
TOTAL

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

Notes: N/A

· 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.)

Without these new contracts, SPU would have no mechanism to collect and transfer the City’s solid waste beginning in 2009.

· 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.)

The current contracts expire in March, 2009 so there is no alternative to this legislation.

· 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.)

No.

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

Please list attachments to the fiscal note below:

Exhibit A: New Contracts Overview