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remain certified, those with ASE credentials must be retested every five years. Tests are pa~~ ~ conducted twice a year at over 750 locations around the US and are administered by ACT, known for its academic and occupational testing programs. The exams stress knowledge of job-related skills. The tests are difficult. with approximately one out of three test takers failing. For Public Works Services, ASE certifications are a valuable yardstick by which to measure the knowledge and skills of Individual technicians as well as the commitment to quality of the fleet staff. Alternatives 1. The Council could choose not to approve the incentive program and make a decision to rely on employee self motivation. This may result in delayed certification, or fewer employees becoming certified. or obtaining lower levels of certification than might otherwise be achieved with the incentives. 2. The Council could choose to approve a higher or lower level of incentive. by increasing or decreasing the proposed amounts. Fiscal Impact . ... .. There.lscurrenUynospecifie-budgetalloeation-forthis.two-part.programinPWSoperating budgets. However, since the activity period for the Wastewater program spans the next two fiscal years, staff has increased the training budget, and expects that the certification incentive costs will occur in a manageabfe fashion over that period, such that total costs can be absorbed - and managed - into the bottom line of each year (holding vacancies open for a slightly longer period, for example). For the Fleet differentials, cost placeholders were included when user rates were calculated, and it is therefore expected that the current budget..can...absorb.the..additiooal.costs.withoutcompromisiog the .integrity.of the operation. The program's estimated total costs are as follows: . Probable total costs for the Wastewater incentive program is estimated at $88,000, with a maximum exposure of $171,000 over the two-year period. . The on-going, annual cost for Fleet certifications Is estimated to range from a probable $23,000 to a maximum exposure of $78,000. If the Council were to approve the program now, the Initial cost increase (annualized) to the fleet operation would be $9,730. ~ W~ 0iJ-. o ell Ed ~verett Peter Ingram Director. Public orks Services Human Resources Director City Manager Attachments 1. Amendment to Memorandum of Understanding, between the SEIU, Local 715 and the City of Redwood City with appendices describing each Incentive program 2. Side letter of Agreement between the SEJU. Local 715 and the City of Redwood City, dated June 7. 2004 Page 3 of 3