BOARD MEETING DATE: February 3, 2006
AGENDA NO. 39

Adopt Resolution Regarding Cost-Reduction Measures for AQMD Retirement Plan

SYNPOSIS:

The San Bernardino County Employees’ Retirement Association (SBCERA) Board met on February 2, 2006, to consider cost-reduction measures for AQMD’s retirement plan that were incorporated into labor contracts and into salary and benefits changes for non-represented employees, both of which were approved by the Board, contingent on the retirement board’s action, at the January Board meeting. Counsel for SBCERA has indicated that the cost-reduction measures must be adopted by Resolution of the AQMD Board.

COMMITTEE:

Not Applicable

RECOMMENDED ACTIONS:

Adopt the attached Resolution.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

At its January 6, 2006, meeting, the Governing Board adopted memoranda of understanding with AQMD’s represented employees, contingent on further action by the Board of the San Bernardino County Employees’ Retirement Association (SBCERA). The MOUs contained measures to reduce AQMD retirement costs, specifically, by making only the portion of employees’ health benefits allotment that is taken as cash “pensionable” for employees hired after January 1, 2006. The AQMD Board also adopted changes to salaries and benefits for non-represented employees that contained the same cost-reduction measure, also contingent on further action by the retirement board. The AQMD Board’s adoption of salaries and benefits for both represented and non-represented employees was contingent on the retirement board adopting the cost-reduction measures at its meeting on Thursday, February 2, 2006.

Counsel for SBCERA has expressed the view that the cost-reduction changes must be approved by AQMD’s Board under Government Code section 31485.9. This section provides that memoranda of understanding containing such cost-reduction measures must be adopted by the AQMD Board by Resolution.

This item will be pulled if the retirement board fails to approve AQMD’s cost-reduction proposals at its meeting on February 2, 2006.

Proposal

Adopt the attached Resolution to implement cost-reduction measures for AQMD’s retirement plan.

Attachment
Resolution

ATTACHMENT

RESOLUTION NO. 06-____

A Resolution of the South Coast Air Quality Management District (AQMD) Governing Board:

WHEREAS, at its meeting on January 6, 2006, the Governing Board of the South Coast Air Quality Management District approved labor contracts with AQMD’s represented employees, contingent upon the Board of the San Bernardino County Employees’ Retirement Association (SBCERA) approving a cost-saving measure included in the contracts to reduce AQMD retirement costs by making only the portion of employees’ health benefits allotment that is taken as cash “pensionable” for retirement purposes for employees hired after January 1, 2006;

WHEREAS, at the January 6, 2006, meeting, the Governing Board also approved, contingent on approval by SBCERA’s Board, changes in salaries and benefits for non-represented employees that included the same retirement cost-savings measure provided for in labor contracts, specifically, making only the portion of employees’ health benefits allotment that is taken as cash “pensionable” for retirement purposes for employees hired after January 1, 2006; and

WHEREAS, counsel for SBCERA has recently expressed the view that approval of AQMD’s cost-reduction measure is subject to Government Code section 31485.9, which requires that statutory benefits for AQMD employees must be adopted by Resolution pursuant to memoranda of understanding made under the Meyers-Milias-Brown Act, Chapter 10 of Division 4 of Title 2 of the California Government Code.

THEREFORE, it is hereby resolved that the Board approves, by adoption of this Resolution, retirement cost-cutting measures contained in memoranda of understanding covering represented employees and in salary and benefits changes for non-represented employees, both of which were contingently approved at the Board’s January 6, 2006, meeting, that make only the portion of employees’ health benefits allotment taken as cash “pensionable” for retirement purposes for employees hired after January 1, 2006.

_______________      _________________________________
Date                         Clerk of the Board

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