Form revised February 4, 2010

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Seattle City Light	Phil West 684-3718	Calvin Chow 684-4652

Legislation Title:

AN ORDINANCE relating to the City Light Department; authorizing the Superintendent of Seattle City Light to execute an agreement with Nextel West Corporation to reconfigure certain 800 MHz radio frequencies licensed to City Light, including any other necessary or convenient related agreements or documents; and ratifying and confirming certain prior acts.

· Summary of the Legislation:

The Federal Communications Commission (“FCC”) has reassigned licenses to operate certain 800 MHz frequency bands from Seattle City Light to Nextel West.  Under FCC direction, Seattle City Light must relinquish use of these frequencies and relocate/reconfigure its mobile radio system to replacement frequencies.  Nextel West agrees to pay for all costs associated with the relocation and reconfiguration of the radio frequencies used by Seattle City Light.  This legislation authorizes the agreement between Seattle City Light and Nextel West.

· Background:

Seattle City Light has been licensed to operate a specialized mobile radio system on certain 800 MHz frequency bands at the locations identified in Schedule A of the Radio Frequency Reconfiguration Agreement (Attachment 1 to the proposed legislation).  The FCC issued an Order modifying its rules governing the 800 MHz bands to minimize harmful interference to public safety radio communications systems in the frequency band.

Nextel West is now the licensee under licenses granted by the FCC for the operation of these certain 800 MHz frequencies and Seattle City Light must relinquish its license to the use of these frequencies and relocate and reconfigure its mobile radio system to the replacement frequencies.

Nextel West agrees to pay for all costs associated with the relocation and reconfiguration of the radio frequencies used by Seattle City Light.

This legislation authorizes the agreement between Seattle City Light and Nextel West.  The agreement describes the Seattle City Light’s responsibility to reconfigure communications equipment and Nextel West’s responsibility to pay for this work.  It also provides the location of Seattle City Light’s equipment that will be reconfigured.

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: 

No appropriations required for this legislation

Anticipated Revenue/Reimbursement: Resulting From This Legislation:

Fund Name and Number	Department	Revenue Source	2010 Revenue	2011 Revenue
Light Fund (41000)	Seattle City Light	Nextel West	282,737.32	0.00
TOTAL			282,737.32	0.00

Notes:

City Light Payment Terms: Nextel will pay City Light an amount not to exceed the Estimated Cost(s) for City Light of $282,737.32.  Nextel will pay City Light $78,572.53 within 15 days (30 days if City Light elects to be paid by check rather than electronic funds transfer) after receipt by Nextel of the fully executed Agreement and fully completed City Light Information Form (as set forth on Exhibit A to the Agreement).  Nextel will pay any outstanding balance of the Actual Costs due to City Light within 30 days after the Reconciliation Date (as "Actual Costs" and "Reconciliation Date" are defined in Section 3(b)(i)).

Vendor Payment Terms: Nextel will pay each Vendor an amount not to exceed the Estimated Cost(s) for that Vendor with respect to each category of work, as set forth below. Nextel will pay each Vendor within 30 days after receipt by Nextel of (A) an invoice from the Vendor and (B) City Light's approval of receipt of goods and services and approval of associated costs included on the Vendor invoice.

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

This action is required by the Federal Communications Commission.  Failure to complete the reconfiguration of this equipment may result in fines or other penalties.

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

No

· What are the possible alternatives to the legislation that could achieve the same or similar objectives? None.  This action is required by the Federal Communication Commission

· Is the legislation subject to public hearing requirements: 

No

· Other Issues

None

· List attachments to the fiscal note below:

None