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PROPOSAL: 

Approve MOU with Teamsters Local 911 Regarding the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units

SYNOPSIS: 

AQMD management and Teamsters Local 911, representing the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units, have reached agreement on a labor contract for the period July 1, 1999, through June 30, 2002, which has been ratified by bargaining unit members. The agreement is comparable in salary and benefits to the labor contract approved by the Board in October for the Professional Bargaining Unit. This action is to present the ratified agreement to the Board for approval as the new multiyear labor contract covering the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units.

COMMITTEE: 

Not Applicable

RECOMMENDED ACTION

1. Authorize AQMD’s Negotiator to sign the ratified Memorandum of Understanding between AQMD and Teamsters Local 911, covering employees in the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units
   
   
2. Adopt the attached Resolution amending AQMD’s Administrative Code and Personnel Rules
   
   
3. Adopt the attached Resolution to permit employee contributions to retirement to be made, as allowed by the Internal Revenue Code, on a pretax basis
   
   
4. Appropriate $544,390 from the Undesignated Fund Balance to the Salary and Employee Benefits Major Object and transfer $205,200 from the Services and Supplies Major Object, Professional and Special Services Account, to the Salary and Employee Benefits Major Object to fund the additional cost for FY 99-00

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The labor contract for the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units expired on June 30, 1999. Management’s negotiations with Teamsters Local 911 for a successor agreement have resulted in a proposed three-year labor agreement that has been ratified by bargaining unit members and is ready for Board consideration.

Proposal

The proposed agreement, which would extend through June 30, 2002, includes the following changes from the previous contract:

1. Cost-of-living salary increases of 3% on July 12, 1999; 2% on June 26, 2000; and 2% on June 25, 2001
   
   
2. Increase in AQMD’s monthly contribution toward health insurance premiums to $477.25 in the first year, $503 the second year, and $536 the third year.
   
   
3. AQMD’s layoff and reduction provisions revised to base layoffs and reductions on seniority, except for those with a less-than-satisfactory performance rating, who would be laid off or reduced before other employees
   
   
4. Employee contributions to retirement to be made on a pre-tax basis, as allowed by Internal Revenue Code Section 414(h)(2)
   
   
5. AQMD’s working-out-of-class provisions revised to authorize pay for higher duties from the first day of the assignment if the assignment exceeds 80 work hours and to allow employees who believe they have been assigned to work out of their classifications to request review of their duties and either to be returned to duties within their classification or, if requirements are met, to be paid at the higher level after 80 work hours
   
   
6. Clarifying language regarding employees’ option of either paid or compensatory time for overtime worked
   
   
7. Agreement to implement an Engineering and Compliance standby complaint and breakdown assignment policy
   
   
8. Clarifying language regarding the definition of continuous service
   
   
9. Revision of restoration provision to limit employees’ rights to be considered for restoration to those classifications they have held previously and to require those who passed their probationary period in the prior classification to be considered before those who did not
   
   
10. Employee-initiated classification study process revised to require Human Resources screening of requests and to expedite the study process
    
    
11. Labor-management insurance committee to recommend employee health benefits options

The MOU also includes the same cost-of-living adjustments to travel and mileage reimbursements that were approved by the Board for all other employees in October.

The total cost of the agreement is consistent with the cost of the approved agreement with AQMD’s Professional Employees union. However, the distribution of AQMD costs is allocated differently in the areas of cost-of-living increases and health insurance premiums. Staff believes this negotiated agreement addresses Office Clerical and Maintenance and Technical and Enforcement Bargaining Unit issues in ways that will improve employee morale and maintain management’s ability to conduct efficient operations, as well as making adjustments that keep AQMD competitive in its labor market.

Resource Impacts

The fiscal year cost of this agreement for the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units is approximately $749,590, and the three-year cost is approximately $1,764,504. Consistent with the Three-Year Budget Forecast, $544,390 would be appropriated from the Undesignated Fund Balance. The remaining portion for the current fiscal year would come from cuts to the approved FY 1999-00, with $205,200 being transferred from contract expenditures to Salaries and Benefits. 

Attachments

Memorandum of Understanding
Revisions to Personnel Rules and Administrative Code
Resolution to Amend Administrative Code and Personnel Rules
Resolution to Authorize Pretax Retirement Contributions

PERSONNEL RULES REVISIONS

Section 2. DEFINITIONS
...
h.     Continuous Service - for positions compensated on a biweekly or annual basis: service during the regular hours or shifts of the position in which the person is employed.

The following shall not be considered an interruption of continuous service:

(a) Paid vacationleave
(b) Approved leaves of absence
(c) Absences not exceeding:
    (1) Three (3) consecutive working days
    (2) Two (2) on-duty shifts
(d) Reentering District service within three (3) working days after termination
(e) Reemployment pursuant to statutes following a resignation to serve in the armed forces.
(e) District continuous service shall include service in one or more of the four Counties (Los Angeles, Orange, Riverside or San Bernardino) if such service ceased on or prior to June 30, 1976, and District service commenced on or before July 1, 1976.

... 

Section 6. REINSTATEMENT AND RESTORATION
...
c.     Restoration

    For employees in positions included within the Office Clerical and Maintenance or Technical and Enforcement Bargaining Units, appointing authorities may restore employees at any time to any classification to which they were appointed from an Eligible List, provided their service has been continuous since holding such position or that any break in service since holding such position has been followed by reinstatement or appointment from a reemployment list which results from a layoff or reduction in lieu of layoff. When considering employee requests to be restored to previous classifications, appointing authorities must consider those who completed their probationary periods in the previous classification before considering those who did not complete their probationary periods.

    For all other employees, tThe appointing authority may restore employees at any time to any position they previously held by virtue of an appointment from an Eligible List or to any position for which their transfer or reassignment would be authorized by these rules, provided their service has been continuous since holding such position or that any break in service since holding such position has been followed by reinstatement or appointment from a reemployment list which results from a layoff or reduction in lieu of layoff.

...

ADMINISTRATIVE CODE REVISIONS
...
Section 100 - AQMD Vehicle Policy
...
Use of available AQMD fleet vehicles shall be provided to groups of four or more employees who carpool for commute purposes to and from work. Vehicles shall be returned to the Automotive Services area each morning and shall become part of AQMD's vehicle fleet for the use and conduct of AQMD business by other employees. Employees are required to pay a monthly fee to cover the cost associated with utilizing or operating an AQMD vehicle. This monthly fee shall be computed by multiplying twenty-eight cents ($0.28) times the total number of miles driven by the carpool, except that a different monthly fee, as determined by the Chief Financial Officer, may be charged for vans. Beginning November 1, 1999, for management, confidential, and attorney employees and for employees in the Professional Bargaining Unit, and January 1, 2000, for employees in the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units, the mileage rate will become $0.31 per mile for management, confidential, and attorney employees and for employees in the Professional Bargaining Unit. Beginning January 1, 2000, the rate shall be adjusted annually by the Chief Financial Officer based on the Internal Revenue Service Standard Mileage Rate.
... 
Section 110.4 - Mileage Rates

A mileage permittee shall be paid at the rate of twenty-eight cents ($0.28) per mile for the use of a privately owned motor vehicle (other than motorcycle) or aircraft for the reimbursement period established by the Chief Financial Officer. This rate will increase to $0.31 per mile effective November 1, 1999, for management, confidential, and attorney employees and for employees in the Professional Bargaining Unit, and effective January 1, 2000, for employees in the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units. Beginning January 1, 2000, the rate shall be adjusted annually by the Chief Financial Officer based on the Internal Revenue Service Standard Mileage Rate.
...
Section 120.1 – Expenses for travel shall not exceed:
...

b. The actual cost of meals and lodging not to exceed:

(1) Lodging - $75 per night. If no lodging is available or it is not practicable at $75 per night, the Executive Officer, or designee, can approve additional amounts, when necessary. Effective November 1, 1999, for management, confidential, and attorney employees and for employees in the Professional Bargaining Unit, and January 1, 2000, for employees in the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units, the rate for lodging will increase to Ninety Dollars ($90) per night. This increase does not apply to employees in the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units.

(2) Meals - breakfast, $7.50; lunch, $8.50; dinner, $15. Effective November 1, 1999, for management, confidential, and attorney employees and for employees in the Professional Bargaining Unit, and January 1, 2000, for employees in the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units, meal rates will increase, for breakfast, to Eight Dollars and Fifty Cents ($8.50); for lunch, to Ten Dollars ($10); and, for dinner, to Seventeen Dollars ($17). These increases do not apply to employees in the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units. Charges exceeding these limits require the approval of the Executive Officer or designee. Requests without proper receipts may be denied.

...

A RESOLUTION OF THE
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
EMPLOYER PICKUP
PRETAX PAYROLL DEDUCTION
FOR EMPLOYEES’ RETIREMENT CONTRIBUTIONS

        WHEREAS, the South Coast Air Quality Management District (AQMD) employees who are members of the San Bernardino County Employees’ Retirement Association (SBCERA) are required to make contributions to SBCERA using funds which are subject to federal income tax in the year in which the contribution is made; and

        WHEREAS, Internal Revenue Code Section 414 (h) (2) permits the AQMD to pick up and pay employees’ retirement contributions to a qualified plan, which, if done, would have the effect of deferring federal income tax on said retirement contributions until such funds were actually received by the employee as a retirement allowance or withdrawal upon termination; and

        WHEREAS, the SBCERA constitutes a qualified plan under federal law;

        WHEREAS, the AQMD adopted Resolution No. 99-29 on October 8, 1999 authorizing the pretax payroll deduction for all AQMD employees except the Office Clerical and Maintenance and Technical and Enforcement Units.

        WHEREAS, the AQMD has reached a labor agreement with the Office Clerical and Maintenance and Technical and Enforcement Units which includes a provision for pretax of payroll deduction for employees’ retirement contributions.

        NOW, THEREFORE, BE IT RESOLVED:

        SECTION 1. That the AQMD shall pick up the retirement contributions required of each employee who is a member of SBCERA. The AQMD shall pick up these contributions by a reduction in the cash salary of the employee. Such contributions picked up by AQMD shall be considered employer contributions for purposes of federal income tax;

        SECTION 2. That the amount of such contributions picked up by the AQMD, the method the AQMD uses to pick up these contributions (reduction in salary), and the period of time such pick up will be made by the AQMD, shall be as set forth in a memorandum of understanding or other appropriate method by which terms of employment for AQMD employees are established;

        SECTION 3. That this shall be operative only as long as the AQMD pick up of employee contributions continues to be excludable from gross income of the employee for federal income tax purposes.

        SECTION 4. That the effective date for commencement of the pretax payroll deduction cannot be earlier than December 13, 1999, or the date the completed resolution is received and approved by SBCERA, whichever is later.

(STATE OF CALIFORNIA      )
                                                  )

COUNTY OF LOS ANGELES)

                        I, Jackie Dix, Clerk of the Board of the South Coast Air Quality Management District, do hereby certify that the foregoing resolution was duly adopted by the Governing Board of said District at a regular meeting held on the 10^th day of December, 1999, and that it was so adopted by the following vote:

                        AYES:

                        NOES:

                        ABSENT:

                        ABSTAIN:

                                                                                            ___________________________
                                                                                            JACKIE DIX, Clerk of the Board

STATE OF CALIFORNIA        )
                                                   )
COUNTY OF LOS ANGELES )

            I, Jackie Dix, Clerk of the Board of the South Coast Air Quality Management District, do hereby certify that the above and foregoing is a full, true and correct copy of RESOLUTION 99- of said Board, and that the same has not been amended or repealed.

DATED:       December 10, 1999

                                                                            ____________________________________
                                                                            JACKIE DIX, Clerk of the Board

RESOLUTION NO. 99 -

        A Resolution of the South Coast Air Quality Management District Board amending the AQMD Personnel Rules and Administrative Code to revise applicable provisions to reflect labor agreement covering the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units.

        WHEREAS, the Board of the South Coast Air Quality Management District exercises its duty to review and approve provisions of the Personnel Rules and Administrative Code; and

        WHEREAS, the labor agreement covering the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units includes revisions to the Personnel Rules to clarify the definition of continuous service and to modify the provision regarding restoration of an employee to a formerly held position; and

        WHEREAS, the labor agreement covering the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units includes revisions to the Administrative Code to revise mileage and travel expense reimbursements;

        NOW, THEREFORE, BE IT RESOLVED that the Board of the South Coast Air Quality Management District, State of California, in regular session assembled on December 10, 1999, revise applicable provisions of AQMD’s Personnel Rules and Administrative Code.

STATE OF CALIFORNIA        )
                                                   )
COUNTY OF LOS ANGELES )

            I, Jackie Dix, Clerk of the Board of the South Coast Air Quality Management District, do hereby certify that the foregoing resolution was duly adopted by the Governing Board of said District at a regular meeting held on the 10^th day of December, 1999, and that it was so adopted by the following vote:

                        AYES:

                        NOES:

                        ABSENT:

                        ABSTAIN:

                                                                                            __________________________
                                                                                            JACKIE DIX, Clerk of the Board

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