BOARD MEETING DATE: January 6, 2006
AGENDA NO. 10

Approve Memoranda of Understanding with SCAQMD Professional Employees Association and with Teamsters Local 911

SYNPOSIS:

AQMD management and representatives of SCAQMD Professional Employees Association (SC-PEA), representing the Professional Bar-gaining Unit, and Teamsters Local 911, representing the Technical and Enforcement and Office Clerical and Maintenance Bargaining Units, have reached agreement on labor contracts for the period July 1, 2005, through June 30, 2008, which have been ratified by bargaining unit members. This action is to present the ratified agreements to the Board for approval as new three-year memoranda of understanding.

COMMITTEE:

Not Applicable

RECOMMENDED ACTIONS:

1. Authorize AQMD’s negotiator to sign the ratified Memoranda of Understanding between AQMD and SC-PEA, covering employees in the Professional Bargaining Unit, and between AQMD and Teamsters Local 911, covering employees in the Technical and Enforcement and Office Clerical and Maintenance Bargaining Units;
2. Authorize staff to take all necessary and proper steps with regard to the San Bernardino County Employees’ Retirement Association to implement the agreement;
3. Adopt the attached Resolution reallocating three classes from the Office Clerical and Maintenance Unit to the Technical and Enforcement Unit; and
4. Appropriate from the Undesignated Fund Balance to the Salary and Benefits Major Object for FY 2005-06: a) $1,902,500 to fund the FY 2005-06 salary and benefit adjustments recommended here and b) $2,416,823 to restore budget reductions related to employee retirement contributions approved in June 2005.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On March 1, 2002, and on June 7, 2002, respectively, the Board approved labor contracts through June 30, 2005, for the Professional Unit, represented by SC-PEA, and for both the Technical and Enforcement and the Office Clerical and Maintenance Units, represented by Teamsters Local 911.

Management’s recent negotiations with current bargaining unit representatives for successor agreements have resulted in new three-year labor agreements that have been ratified by affected bargaining unit employees.

Proposal

New provisions for Professional and for Technical and Enforcement Units:

1. A cost-of-living salary adjustment of 8% on January 2, 2006, coupled with an additional employee retirement contribution of 3.25% of “compensation earnable” for retirement purposes as of the same date, which, since the base to which the retirement contribution applies is greater than salary alone, results in a net adjustment of approximately 4%;
2. CPI salary adjustments on July 3, 2006, and July 2, 2007, with a minimum adjustment of 3% and a maximum of 4%; and
3. Adjustments in AQMD’s monthly contribution toward health insurance premiums of 8% the first and second years of the contract and of 9% the third year, to help keep pace with escalating medical costs.

New provisions for the Office Clerical and Maintenance Unit:

1. CPI-based salary adjustment of 4.8% effective July 4, 2005;
2. An adjustment in AQMD’s monthly contribution toward health insurance premiums of 8% in the first year of the contract; and
3. Any further salary and benefits adjustments during the term of the contract are subject to negotiation.

The following changes apply to all three bargaining units:

1. For new employees hired after January 1, 2006, elimination of vacation sell-back, rideshare incentive, parking allowance, and monthly skill-based pay benefits, as well as permitting only that portion of AQMD’s monthly contribution toward health benefits that is taken as cash to be “pensionable”;

In addition to specific language changes noted on attached MOUs, the following non-monetary changes are applicable to all three bargaining units:

1. Modification of the catastrophic leave program to make it easier for employees to donate leave time;
2. Increase from 3 to 4 days in sick leave time that can be used annually for any personal reason that does not interfere with AQMD’s public service mission;
3. Increase in the maximum amount employees may set aside, pre-tax, from their pay annually under the Section 125 health care reimbursement program from $2,400 to $2,700; and
4. Agreement to seek federal and State approval to allow employees voluntarily to participate in Medicare.

The Teamsters agreement also includes reallocation of three classes, Assistant Computer Operator, Computer Operator, and Computer Operations Supervisor, from the Office Clerical and Maintenance Unit to the Technical and Enforcement Unit, based on the technical nature of the work performed.

These new three-year contracts with represented employees result in significant long-term savings to the agency with respect to employee retirement costs, while providing salary and benefits packages that are consistent with the relevant public-sector labor market. Under the terms of the contract, professional and technical and enforcement employees will fund a greater proportion of their retirement benefit, reducing the burden increased retirement costs have placed on agency budgets. Additional retirement savings will be realized by the elimination of retirement-enhancing benefits for new employees in all three bargaining units. Staff believes these adjustments keep AQMD competitive in its labor market while maintaining management’s ability to conduct efficient operations.

Resource Impacts

The three-year cost of this agreement is approximately $13.4 -14.8 M, depending on CPI movement in the second and third years.

Attachments (EXE 239kb)

ATTACHMENT A

RESOLUTION NO. 06-

A Resolution of the South Coast Air Quality Management District Board reallocating the classes of Assistant Computer Operator, Computer Operator, and Computer Operations Supervisor from the Office Clerical and Maintenance Bargaining Unit to the Technical and Enforcement Bargaining Unit.

                    WHEREAS the Governing 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 employees.

                    THEREFORE, BE IT RESOLVED that the Board of the South Coast Air Quality Management District, State of California, in regular session assembled on January 6, 2006, does hereby reallocate the classes of Assistant Computer Operator, Computer Operator, and Computer Operations Supervisor from the Office Clerical and Maintenance Bargaining Unit to the Technical and Enforcement Bargaining Unit

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Date                                                      Clerk of the Board

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