In January 2016, the Joint ABAG Administrative Committee - MTC Planning Committee hired Management Partners to conduct a study for a merger action implementation plan (AIP), which is due July 1, 2016.
The study examined the policy, management, financial and legal issues associated with further integration of ABAG and MTC, up to and including institutional merger between MTC and ABAG. Management Partners presented an analysis of seven options to the Joint ABAG Administrative Committee - MTC Planning Committee on Friday, April 22, 2016. See the full report for more information.
At the April 22nd meeting, the Joint ABAG Administrative Committee-MTC Planning Committee stated a preference for Option Seven and authorized Management Partners to begin to outline an AIP based on that option.
An ABAG Special General Assembly was held on May 19th to discuss merger and vote on a recommendation to the ABAG Executive Board. After three hours of lively discussion over whether to support Option 4 or Option 7, the delegates voted to approve the ABAG staff report, dated May 6, 2016, which recommended support of both Option 4 and Option 7 with additional principles attached. The staff report stated that Option 4 was the best option but included Option 7 as the preferred alternative if MTC could not support Option 4 at this time.
The motion was then amended to add a requirement that the successor to the current Executive Director of MTC would also report to the ABAG Executive Board. Of the 51 cities and 6 counties present at the time of the vote, the cities voted 28 to 23 to support the staff recommendation (Options 4 and 7) while the counties voted 4 to 2. The staff report is included below.
After the Special General Assembly, additional discussions occurred at the ABAG Executive Board meeting on May 19th, where the Executive Board voted 27 to 2 to adopt Resolution No. 07-16 (supporting Option 4 and Option 7) and Attachment A (the principles). The resolution and attachment are posted below.
Two substantive amendments to the resolution as initially presented were also approved at the Executive Board meeting. The first added the following clause: "Resolved, that the successor to the current Executive Director of MTC shall be appointed by, and report to, the ABAG Executive Board and the Commission of MTC."
The second amendment added the following language at the end of Principle E in Attachment 1 of Resolution No. 07-16: "ABAG's Executive Board is generally supportive of the worker protection requested by SEIU in its letter to the ABAG Administrative Committee dated May 3, 2016, subject to refinement of specific timing and implementation issues, and will refer this 10-point Worker Protection Plan from SEIU to the Employee Relations Committee called for in the Implementation Action Plan (IAP)."
With ABAG Special Executive Board meeting on June 16th, and MTC's Commission meeting on June 22nd, certain conditions established by Resolution 4210 have now been met and the Merger Implementation Action Plan has been adopted.
Under the terms of Resolution 4210, once both the ABAG Executive Board and Commission of MTC vote to adopt the Option 7 Implementation Action Plan, those sections of Resolution 4210 that would have, on July 1, 2016, transferred 13 ABAG planners to MTC and reduced MTC's planning grant to ABAG are pre-empted and the related proposed actions are voided.
At ABAG's Special Executive Board meeting, Resolution 08-16 was passed (posted shortly). This action adopts the Option 7 — Implementation Action Plan with the attached Worker Protection Principles, and
- Authorizes staff to conduct negotiations with MTC for a Contract for Services in accordance with principles adopted under ABAG Executive Board Resolution 07-16 and report back to the Executive Board on a timely basis regarding progress on such negotiations and to present recommendations on a Contract for Services between ABAG and MTC.
- Authorizes ABAG's President, in consultation with the ABAG Administrative Committee, to appoint members of the Executive Board to conduct negotiations of a Memorandum of Understanding (MOU) in accordance with the above mentioned principles and to report back to the Executive Board on a timely basis regarding the progress of such negotiations and to present recommendations on an MOU between ABAG and MTC.
The MTC at its Wednesday, June 22nd meeting approved the Implementation Action Plan for MTC/ABAG Merger Study, Option 7 and took Related Financial Actions that included:
- Approval of the Implementation Action Plan (IAP) to guide Option 7 implementation (the consolidation of all staff functions of MTC and ABAG within MTC under one executive director and consideration of Governance options).
- Approval of a $1.9 million funding agreement to support ABAG planning functions through December 31, 2016.
- Approval of a $250,000 contract with Public Financial Management to support financial due diligence called for in the IAP.
- Approval of a $250,000 contract with Orrick, Herrington & Sutcliffe LLP to conduct legal due diligence called for in the IAP.
MTC's Chair Dave Cortese suggested that MTC approve an amendment "referring SEIU's Worker Protection Principles and MTC's Committee for Staff Representation comments into the record to the new ABAG/MTC Joint Labor Relations Committee for discussion." MTC voted to approve that amendment. ABAG's Executive Board had included SEIU's Worker Protection Principles in its formal approval of the Option 7 Implementation Action Plan (IAP) on June 16th, along with the Guiding Principles it had previously adopted.
Under the terms of Resolution 4210, if both the ABAG Executive Board and Commission of MTC had voted to adopt the Implementation Action Plan, the sections of Resolution 4210 that would have, on July 1, 2016, transferred 13 ABAG planners to MTC and dramatically reduced MTC's planning grant to ABAG will be pre-empted and the proposed actions are void.
Reference material is available below and in addition, the Management Partners website, http://www.mtcabagmergerstudy.com/, will also provide more detailed information as it becomes available.
For more information, please contact ABAG's front desk at 415-820-7900 and ask to speak to Communications Staff.
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