Form revised February 6, 2008

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Personnel	David Bracilano/47874 Sarah Butler/47929	Jennifer Albright/45211

Legislation Title:

AN ORDINANCE relating to City employment, authorizing the Mayor to sign and/or execute a collective bargaining agreement to be effective through December 31, 2010, and authorizing the Mayor to sign and/or execute a Memorandum of Understanding, both between the City of Seattle and the Seattle Police Officers’ Guild, and providing payment therefor.

· Summary of the Legislation:

This legislation authorizes the Mayor to sign and/or execute a collective bargaining agreement between the City of Seattle and the Seattle Police Officers’ Guild (SPOG) for the time period from January 1, 2007 through December 31, 2010. This legislation affects approximately 1,186 City employees represented by SPOG.

The collective bargaining agreement provides for wages, healthcare, and other conditions of employment. The City shall increase SPOG members’ base wages by eight percent (8%) in 2007, four percent (4%) in 2008, and five and a half percent (5.5%) in 2009. In 2010, the City shall increase SPOG members’ base wages by three percent (3%) plus one hundred percent (100%) of the percentage increase in the Seattle-Tacoma-Bremerton area Consumer Price Index (“CPI”) for June 2009 over the same index for June 2008, with a three percent minimum and six percent maximum CPI adjustment (the total 2010 adjustment is projected to be 6%). Upon signature in 2008, the first two steps of the Police Officer’s pay scale will be eliminated, with officers at steps one and two moving to step three, and officers at step three moving to step four (all other officers shall remain at their current step).  The patrol longevity schedule shall be expanded from a maximum compensation of twelve percent (12%) of top step Police Officer pay after twenty years to fourteen percent (14%) after twenty-five years and sixteen percent (16%) after thirty years. Patrol longevity pay shall be extended to officers assigned to the Canine and SWAT units.

There shall be no changes to health care structure. Employees will continue to pay five percent (5%) of total premium share care costs for all medical plans, except Group Health Standard, for which they will pay twenty percent (20%) of total premium share costs.

The agreement also provides for changes to SPOG members’ working conditions. These changes include: new protocols governing maintenance of safe staffing levels and new shift times and rotations.  Additionally, the City shall reimburse SPOG for hours worked by the Union president.

This legislation also authorizes the Mayor to sign and/or execute a Memorandum of Understanding between the City of Seattle and the Seattle Police Officers Guild.  The Memorandum of Understanding implements three of the twenty-nine recommendations for improving Seattle’s police accountability system made by the Mayor’s Police Accountability Review Panel earlier this year.  The remaining twenty-six recommendations are implemented via the collective bargaining agreement or other internal policy changes that did not require legislation.

· Background: (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*	2008 Appropriation	2009 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	2008 Revenue	2009 Revenue
TOTAL

Notes:

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

Position Title and Department	Position # for Existing Positions	Fund Name & #	PT/FT	2008 Positions	2008 FTE	2009 Positions*	2009 FTE*
TOTAL

* 2009 positions and FTE are total 2009 position changes resulting from this legislation, not incremental changes.  Therefore, under 2009, please be sure to include any continuing positions from 2008.

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 & #	Department	Budget Control Level*	2008 Expenditures	2009 Anticipated Expenditures
				See Below
TOTAL				See Below

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

Notes:

Labor Relations developed the estimates below to approximate the 2006-10 costs of ratifying the new agreement. During the 2009-10 biennial budget process, the Executive will submit budget legislation that will make the appropriation changes necessary to implement the agreement.  The legislation will provide spending authority to cover retroactive salary payments (2007), and adjust the Department’s 2008 salary and benefits budgets.  The fiscal note accompanying the legislation will provide a more detailed and precise costing as it will be based upon SPD’s actual expenditures. 

Guild member base wages will increase 8% in 2007, 4% in 2008, 5.5% in 2009, and are projected to increase 6% in 2010.  The aggregate salary for SPOG members will grow from $105.1 million in 2006, to approximately $134 million in 2010.  The City will incur costs for salary related benefits such as deferred compensation, pension and Medicare. 

· 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 agreement, members of the Seattle Police Officers’ Guild will continue to receive wages and benefits that were effective December 28, 2005.

· 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:

None.