Form revised April 10, 2006

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Personnel	David Bracilano/4-7874 Sarah Butler/4-7929	Karen Grove/4-5805

Legislation Title:

AN ORDINANCE conditionally authorizing the Mayor to sign and/or execute a collective bargaining agreement and a memorandum of understanding between the City of Seattle and the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry, Local 32; and providing payment therefor.

· Summary of the Legislation:

The attached Council Bill authorizes the Mayor to execute a Collective Bargaining Agreement between the City of Seattle and the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry, Local 32 (hereafter referred to as “Local 32”) defining wages, benefits, and other conditions of employment for the period from January 1, 2005 through December 31, 2007.  The agreement is consistent with the financial terms of the Tentative Agreement between the City of Seattle and the Coalition of City Unions which was signed on May 25, 2005 (Ordinance 121888), or, where the pay for deployed military provision applies, the City of Seattle’s military wage supplement (Ordinance 121885). Local 32 represents approximately 155 employees within the Plumbers and Pipefitters, and Plumber Crew Chiefs units.

The attached Council Bill also authorizes the Mayor to execute a Memorandum of Understanding, which is the outcome of additional negotiations between the City of Seattle and Local 32 to address the impacts of productivity enhancements instituted by the Water Pipe Worker Apprenticeship Program.  The Memorandum of Understanding provides for an additional eight percent (8%) wage increase in 2006 for the titles of Water Pipe Worker Apprentice, Water Pipe Worker, Senior Water Pipe Worker, Water Pipe Crew Chief, and Transmission Crew Chief.  

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

The Collective Bargaining Agreement between the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry, Local 32 expired on December 31, 2004. The City and Local 32 began negotiations in September of 2005 and came to a tentative agreement in April of 2006.

· 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.)

For information on financial implications, please see the Spending/Cash Flow section, below.

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 have appropriations that were, or will be, received because of previous or future legislation or budget actions, please provide details in the Notes section below.

Fund Name and Number	Department	Budget Control Level*	2006 Appropriation	2007 Anticipated Appropriation
TOTAL

*See budget book to obtain the appropriate Budget Control Level for your department.

Notes: 

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	2006 Revenue	2007 Revenue
TOTAL

Notes: 

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact:  This table should only reflect the actual number of positions created by this legislation  In the event that positions have been, or will be, created as a result of previous or future legislation or budget actions, please provide details in the Notes section below the table.

Position Title and Department*		Fund Name	Fund Number	Part-Time/ Full Time	2006 Positions	2006 FTE	2007 Positions**	2007 FTE**
	TOTAL

*   List each position separately

** 2007 positions and FTE are total 2007 position changes resulting from this legislation, not incremental changes.  Therefore, under 2007, please be sure to include any continuing positions from 2006

Notes:

· Do positions sunset in the future?  (If yes, identify sunset date):

Spending/Cash Flow: This table should be completed only in those cases where part or all of the funds authorized by this legislation will be spent in a different year than when they were appropriated (e.g., as in the case of certain grants and capital projects).  Details surrounding spending that will occur in future years should be provided in the Notes section below the table.

Fund Name and Number	Department	Budget Control Level*	2006 Expenditures	2007 Anticipated Expenditures
			See Below	See Below
TOTAL

* See budget book to obtain the appropriate Budget Control Level for your department.

Notes:

Labor Relations developed the following estimates to approximate the 2005-07 costs of ratifying the new agreement and of executing the Memorandum of Understanding.  Cost items associated with the Collective Bargaining Agreement for Local 32 employees are consistent with the parameters of the Coalition of City Unions Tentative Agreement and include wages and employment benefits.  Local 32 employee wages will increase by two and five tenths percent (2.5%) in 2005, two and three tenths percent (2.3%) percent in 2006, and are projected to increase by three and four tenths percent (3.4%) in 2007.  The City will also incur costs for salary-related benefits such as pension, social security and Medicare. 

Cost items associated with the Memorandum of Understanding include the eight percent (8%) pay scale adjustment to the Water Pipe Worker Apprentice, Water Pipe Worker, Senior Water Pipe Worker, Water Pipe Crew Chief, and Transmission Crew Chief job titles.  Additional revenues generated by operational modifications under the Water Pipe Worker Apprenticeship Program sufficiently cover the costs of the pay scale adjustment to the Water Pipe Worker classification series described above. 

The aggregate salary, overtime, and salary-related benefits under the Coalition Agreement and the cost items associated with the impacts bargaining agreement as specified in the Memorandum of Understanding will grow from $8.69 million in 2004 to $9.97 million in 2007. 

Approval of the collective bargaining agreement as recommended in this legislation will require no further budgetary adjustments for 2005 or 2006, as sufficient funding is included in the budgets in these years to provide for the agreements.  Costs for 2007 will be included in the development of the 2007 Proposed Budget. 

· What is the financial cost of not implementing the legislation? (Estimate the costs to the City of not implementing the legislation, including estimated costs to maintain or expand an existing facility or the cost avoidance due to replacement of an existing facility, potential conflicts with regulatory requirements, or other potential costs if the legislation is not implemented.)

Without ratification of the collective bargaining agreement, United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry, Local 32 employees would continue to receive wages and benefits that became effective December 31, 2003.

What are the possible alternatives to the legislation that could achieve the same or similar objectives? (Include any potential alternatives to the proposed legislation, such as reducing fee-supported activities, identifying outside funding sources for fee-supported activities, etc.)

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

Please list attachments to the fiscal note below: