Form revised November 11, 2008
FISCAL NOTE FOR NON-CAPITAL PROJECTS
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Department: |
Contact Person/Phone: |
DOF Analyst/Phone: |
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Personnel |
David Bracilano/47874 Sarah Buter/47929 |
Karen Grove/45805 |
Legislation Title:
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AN ORDINANCE relating to City employment; authorizing execution of a collective bargaining agreement between the City of Seattle and the International Association of Fire Fighters, Local 27 to be effective January 1, 2009 through December 31, 2011; and providing payment therefor.
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· Summary of the Legislation:
This legislation authorizes a collective bargaining agreement between the City and the International Association of Fire Fighters, Local 27 (“Local 27”) providing for wages, healthcare, and other conditions of employment effective January 1, 2009 through December 31, 2011. This legislation affects approximately 1,000 City employees represented by Local 27.
The City shall increase union members’ wages by 6.2 percent in 2009. For 2010 and 2011, members’ base wages shall increase by 100% of the percentage increase of the Seattle-Tacoma-Bremerton Consumer Price Index (CPI) June over June increase. The City and Local 27 agreed that there shall be no minimum or maximum CPI increase; however, members’ wages shall not be decreased if the CPI is negative.
The City will contribute to Local 27 members’ healthcare plan, which is administered outside of and separate from the City’s self-insured and HMO plans. In 2009, the City will pay 107% of the 2008 amount, along with a one-time payment of $260,000 (not to be counted as part of the City’s “base” for calculation of future increases). In 2010 and 2011, the City will pay 107% of the previous year’s cost, plus 85% of the difference between 7% and the average national healthcare trend increase, provided that the total increase paid by the City shall not equal an amount greater than 10% of the previous year’s cost.
The collective bargaining agreement also included other conditions of employment, such as physician verification requirements, vacation block scheduling and carryover limitations, slight changes to overtime hiring, new notice provisions related to transfers between Operations and Administration positions, the abrogation of a Fireboat Engineer and Fire Inspection Unit Lieutenant (Local 27 agrees not to file an Unfair Labor Practice on the issue), and clarification of contract language, among other items. The City and Local 27 agreed to continue discussions over a number of matters, including the transfer policy and certain administrative details related to the Local 27 health care plan, but waived any rights to take such issues to interest arbitration.
· Background: (Include brief description of the purpose and context of legislation and include record of previous legislation and funding history, if applicable):
The City and Local 27 entered into negotiations in spring of 2008 and came to a tentative agreement in April of 2009. This legislation is subject to ratification of the collective bargaining agreement by Local 27 union members.
· 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.)
Labor Relations developed the estimates below to approximate the 2009-11 costs of ratifying the new agreement. Costs for 2009 and 2010 were included in the development of the 2009-2010 biennial budget.
Local 27 members’ base wages will increase by 6.2% in 2009, and are projected to increase by 0% in 2010, and 1.9% in 2011. The aggregate cost of wages and benefits for members is estimated to grow from $113.3 million in 2008 to $124.6 million in 2011. (This cost estimate assumes the City’s maximum liability for healthcare costs: a 10% increase for 2010 and a 10% increase for 2011.)
· 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 this legislation, Local 27 members will continue to receive wages that became effective on December 26, 2007.
· Does this legislation affect any departments besides the originating department? • If so, please list the affected department(s), the nature of the impact (financial, operational, etc)., and indicate which staff members in the other department(s) are aware of this Bill.
The Seattle Fire Department is the only department affected by this legislation. This proposed Council Bill will impact the Fire Department’s budget and to the extent provided in the collective bargaining agreement, the operational functions of its Local 27 union members. Chris Santos is the staff contact at the Fire Department on this legislative item.
· 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