Board to End Project Labor Agreement

The Board of Supervisors voted 4-1 to provide legal notification to end the Project Labor Agreement, set to expire at the end of 2005. I strongly support the Board’s action, having campaigned against the PLA during my 2002 election effort.

The PLA allows only unionized firms to receive county construction contracts. It was hastily approved in 2000, when a 3-2 Board majority sought organized labor’s help in securing approval for the proposed El Toro Airport. It has since been under attack by small independent contractors for squeezing out non-unionized companies from county contracts.

What made this PLA particularly egregious was its scope. Typically, a PLA is approved on a project-by-project basis, in order to keep competing unions from jurisdictional disputes that might shut down the jobsite. This PLA applied to virtually ALL construction work done by the County. This locked out 75% of OC firms that are non-unionized, with additional costs of 10-30%. State Prevailing Wage laws already require that workers on county jobsites receive generous compensation, whether or not they are unionized.

Double-Dipping Retirees Questioned

County workers should choose between employment and retirement. Those eligible for retirement are free to continue working full-time and many choose to do so. There is no mandatory retirement age. However, those employees who choose to retire should not be hired back as part-time help or as contracted consultants.

While a Fullerton City Councilman, I cast the lone vote against the retiring redevelopment director being hired back as a part-time (and highly paid) consultant. Such a practice only discourages top managers from properly training their replacements.

I recently cast the lone vote against a $144,000 annual contract with a retired county health official. The individual had worked for Orange County for 10 years, then 17 years with Los Angeles County. He’s drawing two pensions, and now earns $81 per hour in consulting fees, an 8% jump over last year’s contract, which I also opposed.

State law limits county retirees from working more than 700 hours annually for their former employer. Many, however, get around this limit by working for a consulting firm that contracts out their services to the County. This loophole needs to be closed. The spirit of the law should be followed.

Employees nearing retirement age should make up their minds. Either retire, or continue on in full-time employment. Senior employees are free to stay as long as they like. Some County employees are in their seventies, still contributing with skill and dedication. Once they retire, however, their job—and their paycheck—must go to someone else. The Board needs a clearer policy as well. With as many as 800 new retirees next year (made eligible by the 2.7% at 55 plan), we need to make sure that younger employees will be ready to take their place.

Fed Funding for OC Projects OK’d

Congressman Chris Cox has just reported Congress’s approval of three major OC transportation projects: $1.5 million for improvements to the San Diego (405) Freeway; $500,000 for the Santa Ana Freeway (I-5) HOV lanes,; and $2 million to study a possible multi-modal tunnel under the Santa Ana Mountains, connecting Riverside County with South OC. The tunnel concept has long been advocated by former Irvine Mayor Bill Vardoulis.

No federal money was approved for CenterLine.

Board Balks at Canadian Drug Plan

The Board rejected further exploration of the purchase of imported pharmaceuticals from Canada to benefit OC employees and retirees. Health Care Agency staff reported that up to $2 million in annual savings were possible, both in direct county costs and in lower prices to county employees and retirees.

Supervisor Chuck Smith had been studying a potential plan for months, and became its strongest advocate on the Board. Serious legal issues remain unresolved, however. Federal policy currently does not permit such importation, but there is no enforcement. Certainly, the County must respect all federal policies, but the policy itself could be changed at any time by the Secretary of Health and Human Services. I did support Smith in moving forward with a study of plan options to be ready once the legal issues are resolved.

Smith Steps Down,
Correa On Board

This month marks Supervisor Chuck Smith’s retirement from eight years on the Board of Supervisors and from 20 years of public life, beginning with service on the Westminster City Council. Smith and I both stood firm on key issues, including full auditing on employee health trust funds and “No” to the 2.7% at 55 retirement plan. On El Toro, our disagreement was never personal.

Over 500 attended Smith’s recent retirement dinner, including 6 former supervisors, at which I sang his alma mater’s fight song: “Fight the team across the field, show them Ohio’s here…”

Replacing Chuck will be former Assemblyman Lou Correa. Lou will be sworn-in at a 9:00 A.M. ceremony on Monday, January 3, in the Board Hearing Room, as well as Supervisor Bill Campbell who was re-elected this past year.

On January 4, the Board will vote on reorganization. Both the Chair and Vice-Chair positions will be filled by Board election at that time.

Happy Holidays,
Merry Christmas
and a
Happy New Year to all!!