Form revised November 15, 2007

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 authorizing the Mayor to sign and/or execute a collective bargaining agreement by and between the City of Seattle and the Washington State Council of County and City Employees, Local 21 to be effective through December 31, 2010; and providing payment therefor.

· Summary of the Legislation:

The attached ordinance authorizes the Mayor to sign and/or execute a collective bargaining agreement by and between the City of Seattle and the Washington State Council of County and City Employees, Local 21. The collective bargaining agreement covers the period from January 1, 2008 through December 31, 2010. 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 October 3, 2007 (Ordinance No. 122551). The Washington State Council of County and City Employees, Local 21 represents approximately 164 regular employees within the truck drivers and dispatchers, and janitorial bargaining units.

· 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 City of Seattle and the Washington State Council of County and City Employees, Local 21 expired on December 31, 2007.  The City and the Washington State Council of County and City Employees came to a tentative agreement in December of 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.)

The employees covered by this collective bargaining agreement are a part of the Coalition of City Unions.  The financial terms agreed to in the Collective Bargaining Agreement are reflected in the Coalition of City Unions’ Tentative Agreement (Ordinance No. 122551).

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 3.5 percent in 2009 and 2.6 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 $546.9 million in 2007 to approximately $608.4 million in 2010. 

The 2008 costs of the Tentative Agreement were assumed in the development of the 2008 Proposed Budget. Costs for 2009 and beyond will be included in future biennial budgets.

· 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, Washington State Council of County and City Employees, Local 21 employees would continue to receive wages and benefits that became effective 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.)

There are no possible alternatives to the legislation that could achieve the same or similar objectives.

· 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):

No other issues.

Please list attachments to the fiscal note below:

None