TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 11, 2013
COMMITTEE ON JUDICIARY
Mr. David St. Pierre, Executive Director
Title
Authorization to increase settlement amount approved on April 4, 2013 to settle the claim of International Union of Operating Engineers, Local 150 against Vulcan Construction Materials, LLP from $700,000.00 to an amount not to exceed $747,000.00, Account 401-50000-645620
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Dear Sir:
At the Board meeting of April 4, 2013, the Board of Commissioners authorized the District to settle the claim of International Union of Operating Engineers, Local 150, for $700,000.00 for work performed at LASMA by Local 150 members from 2008 through 2012. Additionally, the Board authorized the District to reimburse Vulcan for payment of the difference between the higher Heavy and Highway and Underground Agreement ("HHUA") wages and fringe benefits and the lower mining wages from January 1, 2013 until completion of the project. A copy of the April 4, 2013 Board Order is attached.
Due to the nature of the settlement and higher wages to Local 150 members, there will be an increase in the Federal Insurance Contribution Act tax ("FICA") paid by Vulcan. Under the agreement between the District and Vulcan, all additional FICA taxes paid by Vulcan as a result of paying the higher HHUA rates are considered "hard costs" for which the District must reimburse Vulcan. These additional costs, which will amount to no more than $47,000.00 for the period from 2008 through 2013, were not included in the original authorization of $700,000.00. The District will verify the amount of reimbursement due Vulcan at the end of 2013, and for each year thereafter.
Therefore, it is requested that the Board increase the settlement amount approved on April 4, 2013 to settle the claim of International Union of Operating Engineers, Local 150 against Vulcan Construction Materials, LLP from $700,000.00 to an amount not to exceed $747,000.00, and authorize payment of Vulcan's share of FICA taxes due employees at LASMA from 2013 forward as a result of the payment of the higher wages, with all remaining terms set forth in the April 4, 2013 Board letter to remain in force and effect as heretofore enacted.
Requested, Ronald M. Hill, General Counsel, RMH:HSW:BTK:bh
Respectfully Submitted, Mariyana T. Spyropoulos, Chairman Committee on Judiciary
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for July 11, 2013
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