TO: Honorable Members of the Board of Supervisors

FROM: Office of the Legislative Analyst

SUBJECT: Employee Suggestion No. 28: Eliminate travel pay for San Francisco International Airport employees who live in San Francisco and commute to their work assignments outside of San Francisco

The employee suggests that the San Francisco International Airport (the "Airport") eliminate travel pay for Airport employees who live in San Francisco and commute to their work assignments outside of San Francisco.

Notably, this suggestion is subject to the City’s collective bargaining process. As such, the City cannot take action on this matter without first re-opening its recently re-negotiated contracts with local labor unions.

The OLA concludes that elimination of travel pay is impractical at this time as the City recently re-negotiated its contracts with local labor unions. The OLA believes that elimination of travel pay for all City employees, not only Airport employees, would generate only minimal cost-savings.

Travel pay is a premium paid to City employees for their commute expenses to and from their jobs. It is designed for City employees who live in San Francisco and commute to their work assignments outside of San Francisco. City employees who work either in or outside of San Francisco but who do not live in San Francisco are not eligible for travel pay.

Notably, the OLA discovered that Airport employees are not the only City employees who receive travel pay. Certain City employees at the Sheriff’s Department, Recreation and Park Department and the Public Utilities Commission (Water Department) also receive travel pay. This report will therefore widen its scope to examine all City employees, not only Airport employees, who receive travel pay.

Three (3) of the City’s 47 collective bargaining agreements with labor unions include provisions for travel pay, as follows:

The City’s agreement with Local 21 for FY 03-04 and 04-05 establishes travel pay at $5 per day for employees who live in San Francisco and work at the Airport, San Bruno Jail, the Public Utilities Commission (Water Department) and/or Recreation and Park Department sites at Milbrae, Sharp Park or Sunol.

The City spent approximately $95,570 on travel pay for Local 21 members in FY 03-04 through the pay period ending 6/18/04.

The City’s agreements with Local 261 and 853 for FY 03-04 and 04-05 establish travel pay at $2.30 per day for employees that live in San Francisco and work at the Airport or Sharp Park; $2 per day for employees who live in San Francisco and work at Millbrae; and $7 per day for employees who live in San Francisco and work at Sunol.

The City spent approximately $11,201 and $1,768 on travel pay for Local 261 and Local 853 members respectively in FY 03-04 through the pay period ending 6/18/04.

The OLA concludes that elimination of travel pay is impractical at this time as the City recently re-negotiated its contracts with local labor unions. The OLA believes that elimination of travel pay for all City employees (not only Airport employees) would generate only minimal cost-savings.