July 14, 1995

South Coast Air Quality

Management District Board

Recommendation To Amend the AQMD'S Salary

Resolution to Establish a Provisional Salary Reduction Plan

On July 1, 1995 the District's furlough plan will expire for management and confidential employees. Unless new contacts are negotiated with furlough provisions prior to July 1, 1995, the furlough plan for represented employees will also expire on that date. Once the furlough provision in the existing contracts sunsets, the provision for short-term layoff becomes operative. If cost reduction measures are deemed necessary, management and confidential employees could be furloughed or placed on short-term layoff. Without any new negotiated agreement to the contrary, represented employees could be placed on short-term layoff. Under the previous furlough program, the Governing Board authorized the District to establish a voluntary deduction program which spread the loss of an employee's income during the furlough period over the entire 26 pay periods in the year. This allowed the employees to maintain a steady level of income during the entire year.

Current short- and long-term budget planning indicates there may be a need to again require unpaid days off, in combination with other budget reduction measures, if budget revenues are projected to fall below an acceptable level. Under the proposed provisional salary reduction plan, employees would be able to again voluntarily authorize the District to withhold a designated amount from their pay each pay period. If the District's fiscal situation necessitates unpaid days off, this withholding would allow the employee to continue to receive pay for the entire pay period. This would thus soften the economic blow to the employee by spreading the impact over a larger number of pay periods. In the event the District determines unpaid days off will not be required during a fiscal year, employees will be reimbursed the salary deducted from their pay.

THEREFORE, IT IS RECOMMENDED THAT YOUR BOARD

--Adopt the attached Resolution amending the District's Salary Resolution to establish a provisional salary reduction plan effective July 14, 1995.

Respectfully,

James M. Lents, Ph.D.
Executive Officer

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(srp795)

RESOLUTION NO. __________

A Resolution of the South Coast Air Quality Management District (District) Board amending the District's Salary Resolution.

WHEREAS, the Board of the District desires to establish a provisional salary reduction plan and amend the District's Salary Resolution; and

WHEREAS, management and confidential employees may voluntarily reduce their pay each pay period in order to minimize the fiscal impact associated with any required unpaid days off and be reimbursed for such reductions in the event such a requirement is not needed; and

WHEREAS, upon receipt of concurrence from the recognized bargaining agents, represented employees may voluntarily reduce their pay each pay period in order to minimize the fiscal impact associated with any required unpaid days off and be reimbursed for such reductions in the event such a requirement is not needed.

THEREFORE, BE IT RESOLVED that the Board of the District, State of California, in regular session assembled on July 14, 1995, does hereby amend the District's Salary Resolution to establish a provisional salary reduction plan as reflected in Attachment A.

BE IT FURTHER RESOLVED AND ORDERED that this Resolution shall be operative on and after July 14, 1995.

AYES:

NOES:

ABSENT:

DATE: ______________________________ ________________________________

` Clerk of the District Board

Attachment A

Amendment to Salary Resolution

Section 27, WORK WEEK

d. Provisional Salary Reduction Plan

Upon receipt of concurrence from the recognized bargaining agents, represented employees may voluntarily reduce their pay each pay period over a designated period of time in order to minimize the fiscal impact associated with any required unpaid days off. If the District determines unpaid days off are not required, employees will be reimbursed the salary deducted from their pay. Management and confidential employees may voluntarily reduce their salaries as noted above and, if unpaid days off are not rquired, may be reimbursed, as set forth in this section, for salary deducted.

Employees shall request voluntary salary reduction by completing and signing an authorization form approved by the District. Voluntary salary deductions shall be spread over twenty-six pay periods or a lesser period of time, as determined by the Executive Officer, or his designee, and as stated on the authorization form.

In the event salary reductions are unnecessary, the District shall cease salary deductions and reimburse employees, within thirty days from the date notified of the decision not to proceed with unpaid days off, for salary that was deducted.