Form revised December 5, 2005

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:

A RESOLUTION authorizing the Mayor to sign and/or execute a collective bargaining agreement by and between the City of Seattle and the Joint Crafts Council to be effective through December 31, 2007.

· Summary of the Legislation:

The attached resolution authorizes the Mayor to sign and/or execute a collective bargaining agreement by and between the City of Seattle and the Joint Crafts Council.  The collective bargaining agreement covers 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 that was signed on May 25, 2005 (Ordinance No. 121885), or, where the pay for deployed military provision applies, the City of Seattle’s military wage supplement (Ordinance No. 121885).  The Joint Crafts Council represents approximately 1,170 City employees.

· 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 Joint Crafts Council expired on December 31, 2004. The City and the Joint Crafts Council began negotiations in February of 2005, and came to a tentative contract agreement in December of 2005.

· 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. 121888), or the City of Seattle’s military pay provision (Ordinance No. 121885).

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 increased by 2.5 percent in 2005, 2.3 percent in 2006, and are projected to increase by 3.4 percent in 2007.   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 $454.7 million in 2004 to approximately $493.0 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 these costs are already included in the City’s budget for these years.  Costs for 2007 will be included in the development of the 2007 Proposed Budget.