Form revised April 10, 2006

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Seattle City Light	Paula Laschober, 684-3168	Karl Stickel, 684-8085

Legislation Title: AN ORDINANCE relating to the rates, terms and conditions for the use and sale of electricity supplied by the City Light Department to customers in the City of Burien; and amending Seattle Municipal Code Chapter 21.49 in connection therewith.

· Summary of the Legislation:

This ordinance implements a charge to reimburse City Light for undergrounding its distribution facilities along First Avenue South within the City of Burien (the First Avenue South 1 undergrounding project).  For this purpose, the ordinance adds the charge of $0.0037 per kWh for City of Burien Standard Residential and Non-Residential customers and $0.0015 per kWh for City of Burien low-income customers.  The charge for undergrounding is equivalent to a rate increase of about 5.9% over current Burien base rates.

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

The City of Burien passed Ordinance 247 in 1999, specifying the terms of the agreement under which Seattle City Light would serve the City of Burien; this ordinance was accepted by the City of Seattle by Ordinance 119348 of 1999. 

The agreement also allows Seattle City Light to recover the capital cost of undergrounding its electrical facilities in accordance with its standard financial practices.  The First Avenue South 1 undergrounding project in the City of Burien was completed in late 2008. According to Seattle City Light’s standard financial practices, City of Burien customers will reimburse City Light over 25 years at five percent interest, and that reimbursement will occur in the form of a charge per kilowatt-hour to the customers in the City of Burien.  The total capital cost of the First Avenue South project, including taxes, amounts to $11.8 million.

· 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*	2009 Appropriation	2010 Anticipated Appropriation
TOTAL

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

Notes:  None.

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	2009 Revenue	2010 Revenue
Light Fund-41000	City Light	First Avenue South 1 Charge*	$482,669	$827,433
TOTAL			$482,669	$827,433

*Undergrounding charge to be collected over 25 years—capital, taxes and interest.  Amounts shown are first two years.

Notes: 

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	2009 Positions	2009 FTE	2010 Positions**	2010 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: None.

· 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*	2009 Expenditures	2010 Anticipated Expenditures
TOTAL

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

Notes:  Not applicable.

· 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 to City Light of not implementing the First Avenue South 1 undergrounding charge is that all City Light customers will bear the cost of that project in their rates.

· 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.)

No.

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

Please list attachments to the fiscal note below: