BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Consideration of Memorandum of Understanding Between Santa Clara Valley Water District and Employees Association (EA) AFSCME Local 101.
End
RECOMMENDATION:
Recommendation
A. Adopt the resolution APPROVING THE TERMS OF THE MEMORANDUM OF UNDERSTANDING BETWEEN THE SANTA CLARA VALLEY WATER DISTRICT AND THE EMPLOYEES ASSOCIATION, AFSCME LOCAL 101, FOR THE PERIOD OF JANUARY 1, 2018 THROUGH DECEMBER 31, 2021;
B. Authorize the Chief Executive Officer to sign the Memorandum of Understanding in substantially the same form as the draft version;
C. Authorize the Labor Relations Officer to sign the Side Letter of Agreement regarding Designation of Confidential Employees; and
D. Authorize the Labor Relations Officer to sign the Side Letter of Agreement regarding the Silicon Valley Advance Water Purification Center (SVAWPC).
Body
SUMMARY:
The existing Memorandum of Understanding (MOU) between the Santa Clara Valley Water District (District) and the Employees Association (EA) expired on December 31, 2017.
The District and representatives of EA commenced negotiations for a successor MOU on October 19, 2017, and reached an agreement as to terms for the successor MOU on January 31, 2018.
On February 14, 2018, EA members ratified the tentative agreement with a 92% vote in favor.
Highlights of agreed upon terms include the following:
o Four-year term - January 1, 2018 through December 31, 2021
o Salary adjustments for the term of the MOU will be:
o 4.0% effective the first full pay period in July of 2018
o 4.0% effective the first full pay period in July of 2019
o 4.0% effective the first full pay period in July of 2020
o 4.0% effective the first full pay period in July of 2021
o Medical - Plan Design Changes Effective April 1, 2018:
o Co-Pay for Office visits for Kaiser members from no charge to $10
o Co-Pay for Office visits for Blue Shield HMO members from $5 to $10
o Co-Pay for Kaiser Prescriptions from $5 to $10 generic; $15 name brand; $30 non-formulary; 30-day supply for retail; 90-day supply for mail order with two co-payments
o Co-Pay for Emergency Room Services for all plans $100
o Medical - Plan Design Changes Effective April 1, 2019:
o Increasing calendar year deductible for Blue Shield PPO plan from $100 per person to $250 per person - maximum $500 for family.
o Increasing out-of-pocket maximums for all plans to $2,000 per person or $4,000 maximum for family.
o Pension
o Employees participating in the PERS 2.5% @ 55 formula and the PERS 2.0% @ 60 formula (Classic) will pay the following contributions towards their pension benefits which includes the employee required contribution as well as an additional amount towards the employer’s contribution:
§ Effective the first full pay period in July of 2018 - 9.5%
§ Effective the first full pay period in July of 2019 - 10.0%
§ Effective the first full pay period in July of 2020 - 10.5%
§ Effective the first full pay period in July of 2021 - 11.0%
o Employees participating in the PERS 2.0% @ 62 formula (PEPRA) will pay the following contributions towards their pension benefits:
§ Effective the first full pay period of July 2018, 50% of total normal cost as determined by CalPERS plus an additional .50%
§ Effective the first full pay period of July 2018, 50% of total normal cost as determined by CalPERS plus an additional 1.0%
§ Effective the first full pay period of July 2018, 50% of total normal cost as determined by CalPERS plus an additional 1.5%
§ Effective the first full pay period of July 2018, 50% of total normal cost as determined by CalPERS plus an additional 2.0%
o Deferred Compensation - The current annual District match will increase by $200 (from $1,000 to $1,200).
o Overtime
o Sick leave will now be counted in calculating hours worked for purposes of overtime computation.
o Overtime meal allowances increased by $5 per meal
o Reimbursements - Increased safety shoe reimbursement from $185 to $200 per year. Increased safety glasses reimbursement from $168 to $185 per year.
o Workforce Development
o Increased tuition reimbursement from $2,000 to $2,500 per year.
o Opened professional reimbursement to all EA employees (rather than specified classifications)
o Agreement that during the life of the Side Letter of Agreement (Attachment 2), the District will not designate any Union officers as confidential employees pursuant to the District’s Employer-Employee Relations Rules - Resolution 11-60.
o Agreement that if a Public-Private Partnership (P3) for the expedited purified water program should transition into operation, employees in specified job classifications shall be transferred to positions with similar responsibilities and suffer no loss in wages or benefits as a result of such transfer (Attachment 3).
FINANCIAL IMPACT:
o Annual Raises - Estimated cost of the first-year wage increase is $2,560,000. Total wage increase for four years is $10,880,000.
o Medical Plan Design Changes - Estimated savings for first-year changes is $456,300. Second-year changes for an additional estimated $225,900 savings. Total medical plan design change savings for four years is $2,502,800.
o Pension Changes - Estimated additional employee contribution for first-year is $320,200. Total estimated additional employee contribution for four years is $3,237,300.
o Deferred Compensation - Assuming current participation, the increase of $200 match will cost $86,600 for the first year. Total cost for four years is $346,400.
o Reimbursements - Estimated cost of first-year increases to safety shoe and safety glasses reimbursements is $4,600. Total reimbursement increase for four years is $18,400.
o Tuition Reimbursement - Assuming current participation, the increase of $500 to the tuition reimbursement program will cost $2,500 for the first year. Total cost for four years is $10,000.
o Total four-year cost (net) is estimated to be $5,515,000.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have a potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Draft Employees Association MOU
Attachment 2: Letter of Agreement, Confidential Employees
Attachment 3: Letter of Agreement, SVAWPC
Attachment 4: Resolution
*Handout 2.1-A: D. Muirhead
UNCLASSIFIED MANAGER:
Manager
Michael Baratz, 408-630-2361