Form revised August 20, 2009

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
City Light	Douglas Haberman / 3-9138	Karl Stickel / 4-8085

Legislation Title:

AN ORDINANCE relating to the City Light Department; authorizing execution of a 20-year lease from the United States Forest Service for use of a communications site in the area commonly known as Segelsen Ridge.

· Summary of the Legislation:

Approval of the proposed ordinance will provide City Light with continued use of the communications tower at Segelsen Ridge, an essential component of City Light’s Telecommunications and Energy Management system used to communicate vital signals relative to the control and transmission of electricity generated at the Skagit Project.

· Background:

In 1993, the United States Department of Agriculture, Forest Service (“USFS”), issued a special use permit to the City Light Department for construction of a communications tower with ground equipment in a portion of the Mount Baker-Snoqualmie National Forest, Darrington Ranger District, commonly known as Segelsen Ridge.  This communications site serves as an integral link for City Light’s connection between Seattle, the Skagit Hydroelectric Project and the System Control Center.

The special use permit expired in 2003, however USFS granted City Light the right to continue operating and maintaining the site while City Light applied for reauthorization of the site. Negotiations between City Light and USFS have resulted in finalizing a new twenty 20-year lease, which includes the right to grant use of the site to other companies, and charge a reasonable rent for such use.

Through Ordinance 118737, which authorizes City Light to enter into Wireless Communication Site Agreements with commercial communication services, City Light has granted use of the Segelsen Ridge communications site to New Cingular Wireless PCS, LLC, managed by AT&T Mobility Corporation (“AT&T Mobility”), for which City Light receives annual revenue from AT&T Mobility.  The proposed lease from USFS endorses AT&T Mobility’s construction of a new environmentally sound propane generator system, on which AT&T Mobility must provide City Light a connection, which will enhance the reliability of City Light’s communications system.

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

· 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 had, or will have, appropriations in other legislation, 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:  The lease cost to City Light is $4,122 in 2009 and $4,209 in 2010.  This cost will be covered by City Light’s existing budget.  No additional appropriation authority is needed.

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	AT&T Mobility Lease	$7,546	$7,848
TOTAL			$7,546	$7,848

Notes:  City Light receives rent from New Cingular Wireless through AT&T Mobility, its Manager.  Use of the tower is granted under the City’s Wireless Communications Site Agreement authorized by Ordinance 118737. 

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

None.

Spending/Cash Flow:

Fund Name & #	Department	Budget Control Level*	2009 Expenditures	2010 Anticipated Expenditures
NA	NA	NA	NA	NA
TOTAL

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

Failure to implement the legislation would cause a significant gap in the City Light Telecommunications and Energy Management system. If the proposed Council Bill was not approved, City Light would no longer be permitted use of the site and would be required to dismantle the Segelsen Ridge Communications Site, at its sole expense, and consider alternative locations.  The financial cost would vary between selecting a site, construction of a tower, and resolving the resulting Telecommunications and Energy Management issues.

· Does this legislation affect any departments besides the originating department? 

This legislation will not affect any departments outside of City Light, which is the originating department.

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

The possible alternatives would be to utilize a site, other than the current Segelsen Ridge Communications Site, in order to place and construct the equipment necessary to meet the communication requirements.  No specific sites have been identified.

· Is the legislation subject to public hearing requirements:  No.

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

Please list attachments to the fiscal note below: