HomeMy WebLinkAboutCOW 2010-07-26 Item 4B - Budget - Public Presentation on Status of Labor NegotiationsCAS NUMBER 10-085
1 Meeting Date
07/26/10
Prepared by Mayor
J
SL
AGENDA ITEM TITLE Briefing on Status of Labor Discussions
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MTG. DATE
7/26/10
MTG. DATE
7/26/10
Discussion Motion Resolution Ordinance Bic Award Public Hearing Other
Mtg Date 7/26/10 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date At Date
Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PW
Staff will brief the City Council on the status of discussions with employee groups
regarding reducing the city's overall cost of employee compensation.
COW Mtg.
Utilities Cmte
DATE:
RECOMMENDATIONS:
SPONSOR /ADMIN.
COMMITTEE
EXPENDITURE REQUIRED
CA &P Cmte
Arts Comm.
COUNCIL AGENDA SYNOPSIS
Initial;
F &S Cmte
Parks Comm.
City Administration
N/A
COST IMPACT FUND SOURCE
AMOUNT BUDGETED
ouncal review
LP
RECORD OF' COUNCIL. ACTION
ATTACHMENTS
Informational Memorandum dated 7/22/10
ITEM INFORMATION
ORIGINAL AGENDA DATE: JULY 26, 2010
ITEM No.
Transportation Cmte
Planning Comm.
APPROPRIATION REQUIRED
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124
City of Tukwila
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
FROM: Steve Lancaster, City Administrator
DATE: July 22, 2010
SUBJECT: Status of Labor Negotiations
ISSUE
Jim Haggerton, Mayor
Staff will brief the City Council on the status of discussions with city employees regarding the
need for reducing our overall cost of employee compensation.
BACKGROUND
The City Council has adopted a strategy for closing an identified $9 million annual budget gap
through a balanced approach involving revenue increases, program and service reductions, and
reducing the cost of employee compensation. To date the City Council has adopted measures
that will increase annual revenue by $3 million (target is $3.4 million) and the City Administration
has identified program and service reductions totaling $2 3 million per year (target is $2.2
million). The target for reducing the city's cost of employee compensation is $3.4 million.
DISCUSSION
Approximately 75% of the city's general fund expenditures go toward compensating city
employees. All but approximately 44 City employees are represented by one of five bargaining
units. Existing labor agreements with several of those bargaining units extend beyond the end
of this year (one bargaining unit Police Commanders is newly certified, requiring negotiation
of a new labor agreement). The Tukwila Police Officers Guild labor agreement expires at the
end of 2010, and discussions regarding a new contract have started. The labor agreement with
Firefighters Local 2088 expires at the end of 2011. The agreement with the Police Non
Commissioned group (United Steelworkers) expires at the end of 2012, and three agreements
with Teamsters Local 763 expire at the end of 2013.
Representatives of City Administration met with representatives of all bargaining units on April
6, 2010 to describe the City's budget situation and share the overall "three- legged stool"
strategy for closing our budget gap. Union representatives were informed that the
Administration would be requesting additional meetings with each group to explore options for
reducing the City's overall cost of employee compensation. A similar meeting was held with
non represented employees on April 9. Additional meetings have been held with both
represented and non represented groups over the intervening months
While many of these meetings have been productive, we do not yet have any specific
agreement from labor that reduces the cost of employee compensation below existing contract
levels.
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INFORMATIONAL MEMO
Page 2
Under Washington State law, the City must conduct hearings on a proposed 2011 budget no
later than November 2010, and adopt a budget no later than December. We have delayed
much of the preliminary work toward developing our 2011 -2012 Biennial Budget due to
uncertainty regarding both revenue and expenses. With the Council's July 19 action on new
revenue sources, that part of the equation is now in clearer focus (although more work needs to
be done to address the remaining $400,000 of the original target). We must now move quickly
to build a 2011 -2012 budget based on the information we currently have.
RECOMMENDATION
City Council to request that staff identify additional program and service reductions necessary to
achieve the Council's $3.4 million reduction in overall employee cost of compensation, and
develop a proposed 2011 -2012 Biennial Budget reflecting these reductions.
1 26 W\SteveIBUDGETILaborfnfoMemo7 26 10.doc