Proposal:

Approve Salary and Benefit Adjustments for Noncontract Management, Confidential, and Attorney Employees

Synopsis:

At its February 14, 1997 meeting, the Governing Board approved an MOU with two of AQMD’s three represented bargaining units. A proposal to approve an MOU with the San Bernardino Public Employees Association regarding the third, the Professional Bargaining Unit, is scheduled for consideration by the Governing Board at this May 9, 1997 meeting. Approval of said MOU would result in salaries and benefits for all union-represented employees being adjusted as provided for in the new union contracts. This action is to approve similar adjustments for noncontract management, confidential, and attorney employees.

Committee:

Administrative, April 18, 1997, Recommended for Approval

Recommended Action:

1. Approve salary and benefits adjustments for noncontract management, confidential, and attorney employees as described herein;

2. Adopt the attached Resolution amending the District’s Administrative Code, Personnel Rules, and Salary Resolution; and

3. Appropriate from the Undesignated Fund Balance $59,915 to the Salary and Employee Benefits Major Object to fund the increases for FY 1996-97.

James M. Lents, Ph.D.
Executive Officer

Background

Prior to the recently-approved labor contract salary increases for two of AQMD’s three bargaining units, union-represented employees, under the terms of a three-year labor contract approved by the Board on August 8, 1991, received salary increases of 2% in July 1993 and 4% in January 1994. Because of budgetary constraints, the Board did not approve like increases for confidential employees until a year later, in July 1994 and January 1995. Noncontract management and attorney employees were not granted like increases, and have received no increase since a 3% adjustment effective January 1993.

Upon Board approval of a new labor contract with the San Bernardino Public Employees Association (SBPEA), representing the Professional Bargaining Unit, under consideration at this May 9, 1997 meeting, salary and benefit adjustments for union-represented employees are established through June 30, 1999. [ The Board approved an MOU with Teamsters Local 911, representing the Technical and Enforcement Bargaining Unit and the Office/Clerical & Maintenance Bargaining Unit, at its February 14, 1997 meeting.] Among the changes in these labor contracts are 2% salary adjustments on February 24, 1997, July 28, 1997, and July 13, 1998. Other changes are described in the Board letters recommending approval of the respective labor contracts, i.e., for the Teamsters, that of February 14, 1997, and for SBPEA, that of May 9, 1997.

Historically, salary and benefit adjustments for noncontract management, confidential, and attorney employees have been made only after union negotiations have been completed and have been dependent on the results of these negotiations. The adjustments proposed here would match for confidential employees that percentage established for union-represented employees through the period ending July 12, 1998. Noncontract management and attorney employees would, even after the proposed adjustments, not only have had considerably delayed increases as compared to union-represented employees, but would remain approximately 6.65% below the total increase approved for union-represented employees through the period ending July 12, 1998. It is envisioned that salary compaction occurring from disparity between historical salary increases given to union-represented employees as compared to management employees will best be addressed through classification/compensation studies.

Proposal

In addition to maintaining existing benefit levels for noncontract management, confidential, and attorney employees, the following changes are recommended:

1. Provide cost-of-living salary increases of 2% on February 24 1997, and on July 28, 1997;

2. Increase AQMD matching deferred compensation contribution from 25% of the employee’s contribution to 33%, to the maximum total contribution permitted under Internal Revenue Service requirements, which, as of this date, is $7500;

3. Limit paid time for jury service to 8 days (two 4-day work weeks) per year;

4. Increase annual tuition reimbursement from $1,750 to $2,000 per year;

5. Increase annual sick leave accrual from 96 to 100 hours (ten 10-hour days);

6. Add health insurance benefit coverage for domestic partners and their children;

7. Increase payment for unused earned compensatory time at termination from a maximum of 144 hours to 240 hours;

8. Establish a catastrophic leave fund, funded by voluntary donations by Designated Deputy, noncontract management, confidential, and attorney employees for use by employees who exhaust their own leave due to a personal or family emergency.

These recommendations provide management, confidential, and attorney employees cost-of-living salary adjustments for this fiscal year and the next comparable to those for union-represented employees.

Resource Impacts

The cost of these changes over two fiscal years is approximately $422,752, for an average annual cost of $314,044. Sufficient funds are included in the proposed FY 1997-98 budget.

Attachment

Resolution

RESOLUTION NO. 97-_______

A Resolution of the South Coast Air Quality Management District Board amending the District Salary Resolution, Personnel Rules, and Administrative Code to adopt new salaries for noncontract management, attorney, and confidential classes and to revise applicable provisions as required by this action.

WHEREAS, the Board of the South Coast Air Quality Management District exercises its duty to review and determine appropriate wages, hours, and other terms and conditions of employment provided to noncontract management, confidential, and attorney employees;

NOW, THEREFORE, BE IT RESOLVED that the Board of the South Coast Air Quality Management District, State of California, in regular session assembled on May 9, 1997, establish the salaries and revisions to applicable provisions of the District’s Salary Resolution, Personnel Rules, and Administrative Code by providing cost-of-living salary increases of 2% on February 24, 1997 and 2% on July 28, 1997.

Dated: _____________    ______________________________________
                                                   Jackie Dix, Clerk of the Boards