Form revised April 10, 2006
FISCAL NOTE FOR NON-CAPITAL PROJECTS
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Department: |
Contact Person/Phone: |
DOF Analyst/Phone: |
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Personnel |
David Bracilano/4-7874 Sarah Butler/4-7929 |
Karen Grove/4-5805 |
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Legislation Title: |
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A RESOLUTION authorizing the Mayor to sign and/or execute a collective bargaining agreement by and between the City of Seattle and the International Brotherhood of Teamsters, Local 117 - Community Service Officer and Evidence Warehouser units to be effective through December 31, 2007.
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· 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 International Brotherhood of Teamsters, Local 117 - Community Service Officer and Evidence Warehouser units. 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. 121888), or, where the pay for deployed military provision applies, the City of Seattle’s military wage supplement (Ordinance 121885). The International Brotherhood of Teamsters, Local 117 represents approximately 14 employees within the Community Service Officer and Evidence Warehouser 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 International Brotherhood of Teamsters, Local 117 - Community Service Officer and Evidence Warehouser units expired on December 31, 2004. The City and the International Brotherhood of Teamsters, Local 117 began negotiations in October of 2005 and came to a tentative agreement in April of 2006.
· 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, Attachment 1 to this fiscal note, (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.
Attachments:
Attachment 1: Coordinated Bargaining Tentative Agreement between the City of Seattle and the Coalition of City Unions
Coordinated Bargaining
TENTATIVE AGREEMENT
Between the City of Seattle
And
The Coalition of City Unions
May 25, 2005
WAGES
1. Effective December 29, 2004, wages will be increased 2.5%.
2. Effective December 28, 2005, wages will be increased by 100% of the annual average growth rate of the bi-monthly Seattle-Tacoma-Bremerton Area Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the period August 2003 through June 2004 to the period August 2004 through June 2005.
3. Effective December 27, 2006, wages will be increased by 100% of the annual average growth rate of the bi-monthly Seattle-Tacoma-Bremerton Area Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the period August 2004 through June 2005 to the period August 2005 through June 2006.
4. For 2006 and 2007, the percentage increases shall be at least two percent (2%) and not more than seven percent (7%).
HEALTH CARE
1. For the 2005 contract term, employee premium sharing and the status of the Rate Stabilization Fund shall be maintained as determined by the Health Care Committee at the last meeting of the Committee in September, 2004. In addition, The City will pay the equivalent of $1 million, annualized, for enhanced benefits implemented in 2005, which shall become a part of the “base” for the future City’s cost obligations. The specific benefit enhancements will be determined by HC2. Further, the parties agree that eleven thousand dollars ($11,000) shall be utilized from the “Special” Rate Stabilization Fund (RSF) for the purpose of paying Aon Consulting to complete an analysis of the City’s self-insured claims experience to identify potential Wellness and Disease Management Programs that would be best targeted to address the City’s claims experience. Also, the parties commit to support Wellness and Disease Management Programs identified as a result of the Aon study for implementation in 2006, utilizing “Special” RSF through the Health Care Committee processes.
2. The parties agree to amend for the 2006 and 2007 contract years the Memorandum of Agreement previously established by the parties to govern the Joint Labor-Management Health Care Committee process (which shall be attached hereto as Exhibit I and by reference is incorporated herein) as follows:
a) The City shall pay up to one hundred seven percent (107%) of the City’s previous year’s costs to the extent required to cover increases in the total health care costs for a given program year (e.g. 2006 or 2007);
b) The RSF shall be utilized for any given program year until it is exhausted to cover costs in excess of the City’s obligation identified in 1, above;
c) After the RSF has been exhausted, additional costs shall be shared by the City paying eighty-five percent (85%) of the excess costs and employees paying fifteen percent (15%) of the excess costs;
d) Intent: Plan designs are to be maintained during this Contract, not to be diminished. The respective health care plan benefit designs may only be modified by the Health Care Committee for either contract year by the written, mutual agreement of the parties (Coalition of City Unions and the City);
e) Intent: Should the parties agree to reduce premium costs, the reduction would apply to City as well as employee premiums. Use of resources from the RSF during either contract year to reduce projected increase in health care costs that exceed the resources provided through 1, above, shall be authorized only if applied to the total, annual premiums of the respective health care plan(s); and
f) No decision by the Health Care Committee shall be permitted that modifies the established percentages established in c), above.
C. VOLUNTARY EMPLOYEE BENEFIT ACCOUNT (VEBA)
1. Beginning in the 2006 year of the agreement, any ratified collective bargaining agreement that contractually requires the placement of all employee sick leave cash-out resources at retirement into a VEBA account for use by the respective employee for post-retirement health care costs as allowed under the IRS regulations associated with such accounts will include an increase in the cash-out value of sick leave at retirement from twenty-five percent (25%) to thirty-five percent (35%).
2. In addition to the cash-out of sick leave at retirement as provided herein, on an annual basis during the month of January, commencing in January of 2006, any active employee who would have a sick leave balance of at least 240 hours following the cash-out of accrued sick leave as described as follows may, by execution of the appropriate payroll authorization, cash out up to fifty percent (50%) of the unused sick leave allocation said employee accrued during the prior fiscal year at the cash-out value of thirty-five percent (35%) for placement in said employee’s VEBA account in accordance with and for the uses as provided by applicable IRS regulations associated with such accounts. For example, if a given employee had a sick leave balance of 288 hours on January 1, 2006, and said employee used two days of sick leave from January 1, 2005, through December 31, 2005, said employee could, by execution of the appropriate payroll authorization, cash out up to 40 hours of sick leave at a cash-out value of 35% for placement in the employee’s VEBA account.
D. SUPPLEMENTAL PENSION PLANS
The City agrees to assess, on the basis of a specific proposal made by a Coalition Union either as part of the Coalition coordinated bargaining process or as part of the individual contract negotiations with a given Union, the acceptability to the City of a given supplemental pension proposal as a policy matter and respond promptly to the Union making such a proposal whether, and/or under what conditions, such a proposal would be acceptable.
E. SICK LEAVE
The definition of “Eligible family member” contained in SMC 4.24.005 shall be amended by the elimination of the existing phrase “who is (a) under eighteen (18) years of age; or (b) eighteen (18) years of age or older and incapable of self care because of a mental or physical disability” and the addition of the word “sibling.”
The expressed purpose for the proposed modification of said definition shall be to allow an employee to use sick leave because of an illness, injury, or health care appointment of an employee’s sibling or adult child, or the sibling or adult child of an employee’s spouse or domestic partner, in instances where the absence of the employee from work is required, or when such absence is recommended by a health care provider.
F. PAY FOR DEPLOYED MILITARY
All collective bargaining agreements established as a part of these negotiations shall be amended to include the following language:
“A bargaining unit member in the Reserves, National Guard, or Air National Guard who is deployed on extended unpaid military leave of absence and whose military pay (plus adjustments) is less than ninety percent (90%) of their base pay as a City employee shall receive the difference between ninety percent (90%) of their City base pay and their military pay (plus adjustments).
City base pay shall include every part of wages except overtime.
G. PERSONAL HOLIDAYS
If the 2005 year-end actuarial study commissioned by the Seattle City Employees’ Retirement System (hereinafter, “System”) reports that the amortization period for the System’s unfunded actuarial liability does not exceed thirty (30) years and, therefore, no increase in the City’s contribution level is required, the parties to this tentative agreement shall, upon the written request to the City by the Unions that are a party to this agreement, enter into negotiations solely and exclusively with respect to the issue of whether and/or to what extent and/or in what manner the number of Personal Holidays available to employees shall be increased.
H. EMPLOYEE PARTICIPATION IN CONTRACT NEGOTIATIONS
The following shall be incorporated into each collective bargaining agreement that is the result of the coordinated bargaining process with the Coalition of City Unions:
For All Coalition Unions Covered by a Corresponding Provision as Part of the 2001 Coalition Bargaining Process; and for Teamsters, Local 117, Evidence Warehouser/CSO’s; and for WSCCCE, Local 21-P (PEO’s)
The parties to this agreement recognize the value to both the Union and the City of having employees express their perspective(s) as part of the negotiations process. Therefore, effective August 18, 2004, employees who participate in bargaining as part of the Union’s bargaining team during the respective employee’s work hours shall remain on paid status, without the Union having to reimburse the City for the cost of their time, PROVIDED the following conditions are met:
1. Bargaining preparation and meetings of the Union’s bargaining team other than actual negotiations shall not be applicable to this provision;
2. No more than an aggregate of one hundred fifty (150) hours of paid time for the negotiation sessions resulting in a labor agreement, including any associated overtime costs, shall be authorized under this provision.
3. If the aggregate of one hundred fifty (150) hours is exceeded, the Union shall reimburse the City for the cost of said employee(s) time, including any associated overtime costs.
The parties to this agreement recognize the value to both the Union and the City of having employees express their perspective(s) as part of the negotiations process. Therefore, effective August 18, 2004, employees who participate in bargaining as part of the Union’s bargaining team during the respective employee’s work hours shall remain on paid status, without the Union having to reimburse the City for the cost of their time, PROVIDED the following conditions are met:
1. Bargaining preparation and meetings of the Union’s bargaining team other than actual negotiations shall not be applicable to this provision;
2. No more than an aggregate of one hundred (100) hours of paid time for the negotiation sessions resulting in a labor agreement, including any associated overtime costs, shall be authorized under this provision for both Coordinated Bargaining with the Coalition of City Unions and bargaining on the Joint Crafts Council “boilerplate” language.
3. In addition to the above, no more than an aggregate of one hundred fifty (150) hours of paid time for the negotiation sessions resulting in a labor agreement, including any associated overtime costs, shall be authorized under this provision for bargaining on the Joint Crafts Council Appendices.
4. If the aggregate of one hundred (150) hours is exceeded, the Union shall reimburse the City for the cost of said employee(s) time, including any associated overtime costs.
Established this 25th day of May, 2005.
THE CITY OF SEATTLE
________________________________ _____________________________
Michael R. Schoeppach Norma McKinney
Director of Labor Relations Personnel Director
SIGNATORY UNIONS
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__________________________________ Scott Best, President Seattle Police Dispatchers' Guild
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__________________________________ George Duncalf, Business Representative I.B.E.W., Local 46 |
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__________________________________ Steve Bloom, Business Representative I.U. Painters and Allied Trades, District Council #5 |
__________________________________ Brian Earl, President G.C.I.U., Local 767-M |
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__________________________________ Dennis Conklin, Regional Director Inlandboatmen’s Union of the Pacific
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__________________________________ Marty Fox, Business Representative Sheet Metal Workers, Local 66 |
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__________________________________ Bill Dennis, Staff Representative W.S.C.C.C.E., Council 2 (Locals 2083 and 2083C) |
__________________________________ Bruce Heniken, Business Representative I.U. Operating Engineers, Local 286
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__________________________________ Bill Dennis, Staff Representative W.S.C.C.C.E., Locals 21 and 21P |
__________________________________ Natalie Kaminski, Union Representative I.F.P.T.E., Local 17 |
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__________________________________ John L. Masterjohn, Business Manager P.S.I.E., Local 1239
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__________________________________ Ken Thompson, Business Representative Teamsters, Local 763 |
__________________________________ Robert McCauley, Union Representative Teamsters, Local 763
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__________________________________ Wayne Thueringer, Business Representative P.N.W. |
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__________________________________ Gary Powers, Business Representative Boilermakers Union, Local 104
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__________________________________ Beatrice Wells, President Seattle Municipal Court Marshals’ Guild I.U.P.A., Local 600 |
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__________________________________ Rick Sawyer, Secretary, Treasurer H.E.R.E., Local 8 |
__________________________________ William Wickline, Business Representative I.A.T.S.E., Local 15 |
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__________________________________ Gregg Slaughter, Business Representative Teamsters, Local 117
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__________________________________ Marty Yellam, Business Representative U.A. Plumbers and Pipefitters, Local 32 |