Form revised: December 6, 2011

 

 

 

FISCAL NOTE FOR NON-CAPITAL PROJECTS

 

Department:

Contact Person/Phone:

CBO Analyst/Phone:

Seattle Department of Transportation

Angela Steel/684-5967

Rebecca Guerra/684-5339

 

Legislation Title:

 

AN ORDINANCE granting King County permission to maintain and operate a D-C Substation in connection with its public transportation system, on Valley Street, east of 1st Avenue North, for an unlimited term; specifying the conditions under which this permit is granted; providing for the acceptance of the permit and conditions; and ratifying and confirming certain prior acts.

 

Summary of the Legislation:

This legislation grants King County permission to operate and maintain an existing D-C Substation on Valley Street, east of 1st Avenue North. An area map is attached for reference.

 

This permit is for an unlimited term for so long as the D-C Substation is used to distribute electrical power to the public transportation system, subject to the right of the City to require the removal of the substation or to revise any of the terms and conditions of the permission granted by this permit. The legislation has an insurance provision as recommended by the City Risk Manager, specifies the conditions under which authorization is granted, and provides for acceptance of the permit and conditions.

 

King County is to pay the City of Seattle an annual fee of $2,037 commencing on March 26, 2011, and annually thereafter.  Adjustments to the annual fee may be made every year and if so made shall be calculated in accordance with a term permit fee schedule adopted by the City Council by Ordinance 123485. An Annual Fee Appraisal Summary is attached for reference.

 


Background:  

      As authorized by Ordinance 101714, the City of Seattle (“City”) and the Municipality of Metropolitan Seattle (“Metro”) entered into an agreement that included the transfer or use of certain City-owned public transportation system properties to Metro, including but not limited to equipment and facilities required to transform and deliver electrical energy to direct current at then-existing or additional points of delivery.

 

      By Ordinance 106584, the City and Metro entered into an agreement (the “First Supplemental Agreement”), to establish a mutually-approved program for the expansion and rehabilitation of Metro electric trolley service within the City, including route #2 on West Queen Anne and route #4 on East Queen Anne.

 

By Ordinance 107331, the City granted permission to Metro to construct, operate, and maintain a D-C Substation in Valley Street, east of 1st Avenue North, in connection with its public transportation system, for a 30-year term which expired on February 28, 2003.

 

      The City and Metro entered into a “Second Supplemental Agreement”, that superseded the First Supplemental Agreement, and established a more extensive program of trolley rehabilitation and expansion, including but not limited to rehabilitation of route #2 West Queen Anne, and expansion of route #3 North Queen Anne and route #4 East Queen Anne, all of which electric trolley routes depend on the Valley Street D-C Substation to operate in the vicinity of south Queen Anne and the north end of downtown Seattle.

      In 1994, Metro merged with and became part of the King County.

 

Please check one of the following:

 

____    This legislation does not have any financial implications.

 

___X_ This legislation has financial implications.

 

Appropriations:  N/A

 

Anticipated Revenue/Reimbursement Resulting from this Legislation:

 

Fund Name and Number

Department

Revenue Source

2012

Revenue

2013

Revenue

Transportation Operating Fund 10310

Seattle Department of Transportation

Annual Fee –

 

2011 Fee: $2,037

2012 Fee:

$2,001

TBD

TOTAL

 

 

$4,038

TBD

 

Revenue/Reimbursement Notes:  Note that the 2012 Fee is lower due to the assessment of lower King County tax assessed land values for 2012.

 

Total Regular Positions Created, Modified, or Abrogated through this Legislation, Including FTE Impact:  N/A

 

Do positions sunset in the future?  No

 

Spending/Cash Flow: N/A

 

Other Implications: 

 

a)      Does the legislation have indirect financial implications, or long-term implications?

No

 

b)     What is the financial cost of not implementing the legislation? 

If the legislation is not enacted by the City Council, the City of Seattle will not receive the annual fee of $2,037. As previously stated, the City of Seattle has the option to adjust the fee amount on an annual basis. The D-C substation, as originally permitted under Ordinance 107331, will no longer be permitted.

 

c)      Does this legislation affect any departments besides the originating department? 

No 

 

d)     What are the possible alternatives to the legislation that could achieve the same or similar objectives?  None

 

e)      Is a public hearing required for this legislation? 

No

 

f)       Is publication of notice with The Daily Journal of Commerce and/or The Seattle Times required for this legislation?

No

 

g)      Does this legislation affect a piece of property?

Yes, an area map is attached for reference.

 

h)     Other Issues: N/A

 

List attachments to the fiscal note below:

Attachment A – King County DC Substation Area Map

 

Parking Garage
 
 

 

 

 

 

 


Map is for informational purposes only and is not intended to modify or supplement the legal description(s) in the Ordinance.

 

 

Attachment B - Annual Fee Assessment Summary

 

 

STREET USE ANNUAL FEE ASSESSMENT

 

Summary:

Land Value:  $96.65/SF

First Year Permit Fee:

$2,037
 
Date:             6/1/12

 

 

 

 

 

I.                      Property Description:

Existing D-C Substation located on Valley Street, east of 1st Avenue North, with abutting tax parcels of 5437300300 and 5457300477.  Permit is for a total 527 square foot area. 

 

Applicant:

King County

 

Abutting Parcels, Property Size, Assessed Value:

 

1.     Parcel 5437300300; 19,920 SF

 

Tax year 2011 Appraised Land Value $2,390,400

Assessed at $120/SF

 

2.     Parcel 5457300477; 1,760 SF

 

Tax year 2011 Appraised Land Value $129,000

Assessed at $73/SF

 

2011 tax assessed land value: $96.65/SF

 

 

 

II.            Annual Fee Assessment:

The 2011 permit fee is calculated as follows:  ($96.65/SF) X (527 SF) X (50%) X (8%) = $2,037, where 50% is the degree of alienation for an at-grade utility structure and 8% is the estimated annual rate of return.

Fee methodology authorized under Ordinance 123485.