Form revised: December 6, 2011

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	CBO Analyst/Phone:
Legislative	Mike Fong/5-1675	Becky Guerra/4-5339

Legislation Title: A RESOLUTION establishing goals and objectives for an operational efficiencies review of the Seattle Department of Transportation and creating a joint City Council, Executive and Office of the City Auditor interdepartmental team to oversee project implementation.

Summary of the Legislation:

This resolution provides an outline of the Council and Mayor’s goals and approach to initiating a consultant review of the Seattle Department of Transportation (SDOT).  The legislation summarizes two phases of work to be overseen by an interdepartmental team (IDT) consisting of representatives from the City Budget Office (CBO), Council and the Office of the City Auditor (OCA).  Phase one of the consultant work is expected to be finished by January of 2013 while phase two would be completed by the end of 2013.  The Mayor and Council expect to consider recommendations from the consultant and the IDT to implement improvements to SDOT and changes to operational approaches and management practices that could yield greater budget efficiencies, more productivity, and/or better outcomes for maintaining and improving the City’s transportation infrastructure

Background:  

In January of 2012, the Council adopted an annual work program that included an item in the Transportation Committee related to reviewing SDOT’s asset management program and overall performance.  As conversations advanced and evolved with SDOT, CBO, OCA and Council Staff, it was determined that a formal IDT should be formed to develop a comprehensive scope of work. The IDT concluded that the comprehensive scope should include two phases: 1) an initial assessment of the department’s operations through a peer review and benchmarking exercise and 2) a longer-term effort that would focus on identifying potential operational approaches and changes in management practices that could yield greater budget efficiencies, more productivity, and/or better outcomes for maintaining and improving the City’s transportation infrastructure. 

The IDT expects to develop a Request for Proposals (RFP) by mid-summer with a goal of completing phase one by the end of January, 2013.  The full project is expected to be completed by the end of 2013.  Representatives from CBO, Council Staff and the OCA will form an oversight committee for the project while OCA will be responsible for managing the day to day consultant contract.  SDOT has expressed an eagerness to work cooperatively with the consultant and IDT to identify potential recommendations.        

Please check one of the following:

_X___ This legislation does not have any financial implications.

(Please skip to “Other Implications” section at the end of the document and answer questions a-h. Earlier sections that are left blank should be deleted. Please delete the instructions provided in parentheses at the end of each question.)

Note: Though this resolution does not directly appropriate funds for a consultant review of SDOT, it clearly lays the policy foundation and intent of the Mayor and Council to appropriate funding to support the project.  It is expected that separate action taken through the 2012 1st Quarter Supplemental Ordinance would appropriate up to $575,000 to support the work of the IDT and consultant.

Other Implications:

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

Yes.  Per the note above, the IDT has proposed a $575,000 budget for the consultant review.  This funding includes the potential for additional technical support (beyond the primary consultant) to be provided to the IDT on an as needed basis.

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

Unknown at this time.  One of the primary goals of the effort is to identify potential budget savings (short and long-term) and operational efficiencies for SDOT. 

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

Yes.  The resolution identifies the involvement of CBO, OCA, SDOT and Council.

d) What are the possible alternatives to the legislation that could achieve the same or similar objectives?

None are identified at this time. 

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?

No.

h) Other Issues:

None.