Form revised December 4, 2006

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Personnel	David Bracilano/47874 Sarah Butler/47929	Karen Grove/45805

Legislation Title:

AN ORDINANCE conditionally authorizing the Mayor to sign and/or execute individual collective bargaining agreements by and between the City of Seattle and the individual Unions which are part of the Coalition of City Unions to be effective January 1, 2008 through December 31, 2010; and providing payment therefor.

· Summary of the Legislation:

The attached Council Bill authorizes the Mayor to execute a Tentative Agreement between the City of Seattle and the Coalition of City Unions (the Coalition) defining wages, benefits, and other conditions of employment. The Tentative Agreement provides for a wage increase of 3.8 percent for 2008, and 100 percent of the annual growth rate of the bi-monthly Seattle-Tacoma-Bremerton Area Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for August through June with a two percent minimum floor and a seven percent maximum ceiling for 2009 and 2010. Health care cost sharing shall continue as agreed upon in the previous contract: the City will pay up to 7 percent of annual healthcare cost increases, with premium sharing of additional increases at 85 percent for the City and 15 percent for employees once the Rate Stabilization Fund has been exhausted.

Additionally, the Tentative Agreement provides for salary adjustments beyond a cost of living increase to certain job titles.  Salary adjustment increases were based on city business need to recruit new employees to fill vacancies and to retain employees in job titles experiencing high turnover rates, market analysis of comparable job titles in other public jurisdictions, and impact bargaining.

Union members will also receive an increase to the transit pass subsidy under the Tentative Agreement.  The subsidy shall increase from $15 per month to $30 per month beginning January 1, 2008. Effective January 1, 2009, the subsidy shall increase from $30/month to the value of a peak one-zone Puget Pass (currently $54 per month).  

Shift differential pay shall be $0.65 per hour for swing shift, and $0.95 per hour for graveyard shift, effective upon signature of those collective bargaining agreements that provide for shift differential pay.

All collective bargaining agreements signatory to the Tentative Agreement shall contain a provision establishing that, if a year-end actuarial study commissioned by the Seattle City Employees’ Retirement System (hereinafter, “System”)  finds that the amortization period for the System’s unfunded actuarial liability exceeds thirty (30) years, the City and employees shall equally increase contribution rates to the System in an amount determined by the actuary to be needed to achieve a thirty (30) year amortization period.

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

Collective Bargaining Agreements between the City and the Coalition expire on December 31, 2007.  The City and the Coalition began negotiations in the summer of 2007, with salary adjustments to certain job titles being the major subject of this round of bargaining. The City and the Coalition came to a tentative agreement on October 3, 2007.

· 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 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*	2007 Appropriation	2008 Anticipated Appropriation
TOTAL

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

Notes: 

The 2008 costs of the Tentative Agreement were assumed in the development of the 2008 Proposed Budget. As a result, Council approval of this legislation will have no implications for the 2008 budget and will require no appropriation changes.  The 2009 and 2010 costs associated with the Tentative Agreement will be included in the development of the 2009-2010 biennial budget.  See the Spending/Cash Flow section’s notes, below, for more information.

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	2007 Revenue	2008 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	2007 Positions	2007 FTE	2008 Positions**	2008 FTE**
	TOTAL

*   List each position separately

** 2008 positions and FTE are total 2008 position changes resulting from this legislation, not incremental changes.  Therefore, under 2008, please be sure to include any continuing positions from 2007.

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*	2007 Expenditures	2008 Anticipated Expenditures
TOTAL

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

Notes:

The 2008 costs of the Tentative Agreement were assumed in the development of the 2008 Proposed Budget. As a result, Council approval of this legislation will have no implications for the 2008 budget and will require no appropriation changes.  The 2009 and 2010 costs associated with the Tentative Agreement will be included in the development of the 2009-2010 biennial budget.

Cost items associated with the Tentative Agreement include wages and employment benefits for the Coalition as well as non-represented employees, who have historically received equal increases in compensation.  Coalition members and non-represented employee wages, not including the bargained salary adjustments, will increase by 3.8 percent in 2008, and are projected to increase by 3.4 percent in 2009 and 2.7 percent in 2010.  The City will also incur costs for salary-related benefits such as pension, social security, and Medicare. Given these increases, the aggregate salary and salary-related benefits for Coalition members and non-represented employees would grow from $546.6 million in 2007 to approximately $608.4 million in 2010. 

· 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 Tentative Agreement, Coalition members and non-represented employees will continue to receive wages and benefits that became effective on December 27, 2006.

· 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: