FISCAL NOTE FOR CAPITAL PROJECTS ONLY

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Fleets and Facilities	Miriam Roskin/684-0593	Lee Belland/233-0778

Legislation Title:

An ordinance relating to the 2003 Fire Facilities and Emergency Response Levy Program, increasing appropriations to the Fleets and Facilities Department in the 2004 Budget; making a cash transfer from the Cumulative Reserve Subfund to the 2003 Fire Facilities Fund; creating and reclassifying positions; and authorizing the Fleets and Facilities Department to negotiate for the acquisition of real property; all by a three-fourths vote of the City Council.

Summary of the Legislation:

The attached proposed ordinance comprises four substantive sections, each of which addresses a distinct element of the Levy’s implementation requirements in 2004.

· Sections 1 and 2 appropriates funding from the 2003 Fire Facilities Fund for the 9 nine capital projects proposed to commence in 2004. It also increases expenditure authority in the 2003 Fire Facilities Fund and makes a balancing reduction in the Cumulative Reserve Subfund-Unrestricted Subaccount (CRF-UR) to reflect a transfer of certain grant funding from the CRF-UR to the Levy Fund, as discussed below. These projects, and all supporting information (e.g., capacity statements), already appear in the Mayor’s Proposed 2004-2009 CIP, so creation of these projects is not necessary. No appropriations from the newly created Levy Fund have yet been proposed on behalf of these projects, however.

· Section 3 effects affects the cash transfer of funds that were granted to the City by the Port of Seattle under a 1997 Interlocal Agreement. The grant totaled $500,000 and was earmarked for procurement of a Fire Department Marine Response Vessel. The funds have been appropriated and currently reside within the Cumulative Reserve Subfund-Unrestricted Subaccount and currently total approximately $539,000, including interest earnings to date. The proposed transfer would move these funds from the CRF-U UR to the Fire 2003 Fire Facilities Fund.

· Sections 4 and 5 create four two new positions within FFD, reclassify five three existing positions within FFD (one of which is vacant)., and makes supporting appropriations within two FFD lines of business.

· Section 6 makes an appropriation in the Fleets and Facilities Operating Fund to fund the personnel actions approved under Sections 3 and 4. This appropriation from the Operating Fund will be funded from appropriations made in the 2003 Fire Facilities Fund under Section 1.

· Section 7 supports the property acquisitions necessary to the Levy Program by authorizing FFD to pursue real estate acquisitions, subject to Council approval. No authority for condemnations is sought at this time.

Background (Include brief description that states the purpose and context of legislation, the expected useful life, anticipated customers/users, assumed level of LEED or other sustainable design elements. Also include record of previous legislation and funding history, if applicable):

This legislation takes the first steps to commence implementation the voter-approved 2003 Fire Facilities and Emergency Response Levy Program (Levy Program). The Levy Program comprises four categories of projects:

· Emergency Preparedness (Four4 projects that, included three 3 equipment procurements and one facility - Emergency Operations Center);

· Support Facilities (Two2 projects: the Joint Training Facility and Fire Alarm Center);

· Marine Apparatus (Three3 projects including one new large boat, one new fast attack boat, and the rehabilitation of the existing Chief Seattle); and

· Neighborhood stations (31 station projects, the bulk of which will start in 2006; as well as an additional project that funds all property acquisitions necessary for implementation of the neighborhood stations component of the Levy Program.).

The total funding available for this nine-year program totals $197 million. Of this total, $167.2 million represents the proceeds from a property tax levy lid lift. The remainder derives from the Cumulative Reserve Subfund, grants, payments from other departments, and other sources.

Tax proceeds, grants, and fund transfers from other departments will be credited to a newly-created fund: the 2003 Fire Facilities Fund. Interest on the balances in the fund will be available to supplement Levy proceeds. The Department will administratively establish a subaccount structure that will track expenditures by specific revenue type (e.g., tax proceeds, grants, interest earnings, etc.).

Ordinance 121230, which set forth the basic statutory rules governing the Levy Program, provides essential background to this proposed implementation ordinance. For example, it sets forth the funding limitations that apply to the four categories shown above and to the 422 individual projects that reside within the four categories.

The Fleets and Facilities Department, which is responsible for implementing the Levy Program and , has prepared a Levy Program Implementation Plan. The Implementation Plan, which was transmitted to City Council prior to this ordinance, provides additional essential background to the actions proposed in the attached ordinance.

Project Name:	Project Location:	Start Date:	End Date:
FFERP – Land for Station Projects (A1FL101)	Various	Q1 2004	Q4 2006
FFERP – Fire Station 10 (A1FL110)	TBD	Q1 2004	Q1 2007
FFERP – Fire Alarm Center (A1FL201)	TBD	Q1 2004	Q1 2007
FFERP -- Joint Training Facility (A1FL202)	9401 Myers Way S	Q1 2004	Q1 2007
FFERP – Emergency Operations Center (A1FL301)	TBD	Q1 2004	Q1 2007
FFERP – Emergency Fire Suppression Water Supply Project (A1FL302)	Various	Q1 2004	Q4 2002
FFERP – Emergency Community Disaster Supplies Project (A1FL303)	Various	Q1 2004	Q4 2004
FFERP – Emergency Community Shelters Power Supply Project (A1FL304)	Various	Q1 2004	Q1 2005

· Please check any of the following that apply:

__x__ This legislation creates or funds or anticipates a new CIP Project (Please note whether the current CIP is being amended through this ordinance, or provide the Ordinance or Council Bill number of the separate legislation that has amended/is amending the CIP.)

____ 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 the boxes below and all relevant sections that follow.)

Appropriations:

Fund Name and Number	Dept	Budget Control Level*	2004 Appropriation
2003 Fire Facilities Fund (34440)	Fleets and Facilities	FFERP – Land for Station Projects (A1FL101)	$11,852,000
2003 Fire Facilities Fund (34440)	Fleets and Facilities	FFERP – Fire Station 10 (A1FL110)	$13,805,000
2003 Fire Facilities Fund (34440)	Fleets and Facilities	FFERP – Fire Alarm Center (A1FL201)	$12,258,000
2003 Fire Facilities Fund (34440)	Fleets and Facilities	FFERP -- Joint Training Facility (A1FL202)	$18,000,000
2003 Fire Facilities Fund (34440)	Fleets and Facilities	FFERP – Emergency Operations Center (A1FL301)	$16,638,000
2003 Fire Facilities Fund (34440)	Fleets and Facilities	FFERP – Emergency Fire Suppression Water Supply Project (A1FL302)	$820,000
2003 Fire Facilities Fund (34440)	Fleets and Facilities	FFERP – Emergency Community Disaster Supplies Project (A1FL303)	$760,000
2003 Fire Facilities Fund (34440)	Fleets and Facilities	FFERP – Emergency Community Shelters Power Supply Project (A1FL304)	$480,000
2003 Fire Facilities Fund (34440)	Fleets and Facilities	FFERP – Large-Platform Firefighting Marine Apparatus Project	$539,166
Cumulative Reserve Subfund – Unrestricted Subaccount (00164)	Fleets and Facilities	Fire Department Marine Response Vessel (A11640201)	($539,166)
Fleets and Facilities Fund – Facilities Services Subfund (50330)	Fleets and Facilities	Technical Services (A3100)	$158,500
Fleets and Facilities Fund – Administrative Services Subfund (50310)	Fleets and Facilities	Administration (A1000)	$31,550
TOTAL			$74,803,050

* This is line of business for operating budgets, and program or project for capital improvements

Notes: The Mayor’s Proposed Budget for 2004 already includes expenditure authority for the Land for Stations project (A1FL101)of $1.804M2.5 million from the Cumulative Reserve Subfund - Unrestricted Subaccount and $696K from the 2002B LTGO project fund.

The amount shown above represents the first-year proceeds of the levy lid lift authorized under the 2003 Fire Facilities and Emergency Response Levy Program. As described below, collections extend through 2012.

Spending Plan and Future Appropriations for Capital Projects (Estimate cost of legislation over time; list timing of anticipated appropriation authority requests and expected spending plan. Please identify your cost estimate methodology including inflation assumptions and key assumptions related to the timing of appropriation requests and expected expenditures. In addition, include the projected costs of meeting the LEED Silver standard in all facilities and buildings with over 5,000 gross square feet of occupied space. Also, be sure to include percent for art and percent for design as appropriate):

Dollars in Thousands

Spending Plan and Budget	2003	2004	2005	2006	2007	2008	Total
Spending Plan	0	26,267	24,363	32,583	2,300	0	85,513
Current Year Appropriation	0
Future Appropriations		77,113	5,900				83,013

Key Assumptions:

The spending plan shown above is specific to the nine projects for which appropriations are being made in this ordinance (the large boat project, A1FL401, is excluded because it will not be officially underway until 2005).

The “total” column appearing on the Future Appropriations row shows combined appropriations for 2003 through 2005 for the nine projects that will be underway in 2004. The 2004 figure includes both the capital appropriations proposed in this ordinance ($74,613,000) as well as the aforementioned $2.5 million in asset preservation funds (CRF-UR and 2002B LTGO Project fund) for the Land for Stations Project that appears in the Mayor’s Budget. For 2005, it includes the remaining $2.5 million to be appropriated from the CRF for the Land for Stations Project as well as $3.4 million for the Joint Training Facility (A1FL202) that will be appropriated in the Fire Facilities Fund following a cash transfer from Seattle Public Utilities.

The apparent $2.5 million gap between appropriations and spending is expected to be covered by the proceeds from the sale of excess real property at the Joint Training Facility site. However, the Fleets and Facilities Department is not predicting the future appropriation level until the sale is complete and the precise amount of land sale proceeds is known.

The spending rate shown above is based on the Fleets and Facilities Department’s past experience in designing and constructing comparable facilities. It is likely that this cash flow will be updated in the spring of next year as more detailed project budgets and schedules are more fully known.

Funding source :

Funding Source	2003	2004	2005	2006	2007	2008	Total
Tax Receipts from Fire Levy (amounts credited to 2003 Fire Facilities Fund)	0	24,382	24,838	24,928	21,578	21,033	116,759
TOTAL	0	24,382	24,838	24,928	21,578	21,033	116,759

NOTE: The amounts shown above for 2005 and beyond will be used both to complete funding for the projects commencing in 2004 (i.e., the projects funded through this ordinance) and to fund a series of future Levy Program projects. Additional collections will be made through the year 2012, yielding an estimated total of $167.2 million in property tax proceeds under the Levy. Additional fund sources, not shown above and not appropriated via this ordinance, will help pay for certain Levy projects. The sum total of these supplemental funding sources is anticipated to be approximately $30 million over the life of the Levy period, ending in 2012.

Uses and Sources for Operation and Maintenance Costs for the Project :

O&M	2003	2004	2005	2006	2007	2008	Total
Uses
Start Up	0	0	0	0	0	0	0
On-going	0	0	0	0	574	591	1,165
Sources (itemize)
For Emergency Operations Center: General Subfund (via direct or rental payments by Seattle Fire Department and the Seattle Police Department)	0	0	0	0	95	98	193
For All Other Subject Projects: General Subfund (via direct or rental payments by Seattle Fire Department)	0	0	0	0	479	493	972

Key Assumptions:

The O&M estimates shown above are based on a standard O&M factor applied to the differential between each facility’s existing and new square footage. Actual O&M expense will vary depending on the ultimate design features of each facility.

Periodic Major Maintenance costs for the project (Estimate capital cost of performing periodic maintenance over life of facility. Please identify major work items, frequency):

Major Maintenance Item	Frequency	Cost	Likely Funding Source
EOC	25	$2.6 million	CRF
Fire Alarm Center	25	$2.1 million	CRF
Fire Station 10	25	$4.7 million	CRF
Joint Training Facility	25	$5.5 million	CRF
TOTAL

NOTE: The above figures are estimates. They represent the combined cost of 167 separate building systems that are typical of buildings of comparable sizes and functions. The 25-year figure is somewhat arbitrary, given that each of the 167 systems is replaced on a different cycle. Therefore, the numbers shown above are calculated by multiplying the Department’s estimated annual expense (akin to a sinking fund payment) for the combined set of systems by 25 years. A complete list of systems and backing calculations for the above amounts are available on request.

The amounts are based on the following square footage assumptions:

EOC 16,684 sq ft

Fire Alarm Center 13,296 sq ft

Fire Station 10 32,179 sq ft

Joint Training Facility 29,613 sq ft.

Actual major maintenance expense will vary from the estimates depending on the final designs adopted for these facilities.

Funding sources for replacement of project (Identify possible and/or recommended method of financing the project replacement costs):

The facilities included in the Levy Program will typically have a design life of 50 years. It is assumed that eventual replacement of these facilities will be funded through another major capital initiative such as the 2003 Levy Program.

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact:

Position Title*	PartTime/ FullTime	2003 Positions	2003 FTE	2004 Positions**	2004 FTE**
Workload Planning and Scheduling Analyst	Full	0	0	1	1
Strategic Advisor 1	Full	0	0	1	1
TOTAL		0	0	2	2

· Fund Name and Number: ___2003 Fire Facilities Fund (Number 34440)________

· Department: _Fleets and Facilities______________________________________

* List each position separately

** 2004 positions and FTE are total 2004 position changes resulting from this legislation, not incremental changes from 2003.

NOTE: In addition to the positions noted above, the legislation proposes several reclassifications. The following table itemizes all proposed personnel actions and details the costs associated with these actions.

· Do positions sunset in the future?

Yes. All positions created under this ordinance will sunset no later than 2012.

· What is the financial cost of not implementing the legislation:

Absent this legislation, work to carry out the voter-approved Levy Program cannot commence.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives ):

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):

None.