BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Consideration of Memorandum of Understanding Between Santa Clara Valley Water District and Professional Managers Association (PMA), IFPTE Local 21.
End
RECOMMENDATION:
Recommendation
A. Adopt the resolution APPROVING THE TERMS OF THE MEMORANDUM OF UNDERSTANDING BETWEEN THE SANTA CLARA VALLEY WATER DISTRICT AND THE PROFESSIONAL MANAGERS ASSOCIATION, IFPTE LOCAL 21 FOR THE PERIOD OF JANUARY 1, 2018 THROUGH DECEMBER 31, 2021; and
B. Authorize the Chief Executive Officer to sign the Memorandum of Understanding in substantially the same form as the draft version.
Body
SUMMARY:
The existing Memorandum of Understanding (MOU) between the Santa Clara Valley Water District (District) and the Professional Managers Association (PMA) expired on December 31, 2017.
The District and representatives of PMA commenced negotiations for a successor MOU on October 24, 2017, and reached an agreement as to the terms for the successor MOU on February 1, 2018.
On February 20, 2018, PMA members ratified the tentative agreement with a 100% 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:
§ 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 toward their pension benefits:
§ Effective the first full pay period in July of 2018 - 50% of total normal cost as determined by CalPERS plus an additional .50%.
§ Effective the first full pay period in July of 2019 - 50% of total normal cost as determined by CalPERS plus an additional 1.0%.
§ Effective the first full pay period in July of 2020 - 50% of total normal cost as determined by CalPERS plus an additional 1.5%.
§ Effective the first full pay period in July of 2021 - 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 $500 (from $1,500 to $2,000).
o Probation Period - For employees who have already passed their initial probationary period and are appointed, promoted or demoted to another classification, their probationary period will increase from six months to one year.
o Tuition Reimbursement - Increased tuition reimbursement from $2,000 per year to $2,500 per year.
FINANCIAL IMPACT:
o Annual Raises - Estimated cost of the first-year wage increase is $400,000. Total wage increase for four years is $1,700,000.
o Medical Plan Design Changes - Estimated savings for first-year changes is $ 47,000. Second-year changes for an additional estimated $23,300 savings. Total Medical plan design change savings for four years is $257,600.
o Pension Changes - Estimated additional employee contribution for the first-year is $53,300. Total estimated additional employee contribution for four years is $ 528,900.
o Deferred Compensation - Assuming current participation, the increase of $500 match will cost $25,000 for the first year. Total cost for four years is $100,000.
o Tuition Reimbursement - Assuming current participation, the increase of $500 to the tuition reimbursement program will cost nothing (current zero participation rate).
o Total four-year cost (net) is estimated to be $1,013,000.
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 Professional Managers Association MOU
Attachment 2: Resolution
UNCLASSIFIED MANAGER:
Manager
Michael Baratz, 408-630-2361