BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT:
Title
Consider Side Letter Agreement to Memoranda of Understanding Between the Santa Clara Valley Water District and Employees Association - AFSCME Local 101, Engineers Society - IFPTE Local 21, and Professional Managers Association - IFPTE Local 21; and Adopt Resolution Approving Terms of Side Letter Agreement and Approving Fourth Amended Compensation Plan for Unrepresented Employees in the Executive Service.
End
RECOMMENDATION:
Recommendation
A. Consider Side Letter Agreement to Memoranda of Understanding between the Santa Clara Valley Water District and Employees Association - AFSCME Local 101, Engineers Society - IFPTE Local 21, and Professional Managers Association - IFPTE Local 21;
B. Adopt the Resolution APPROVING THE TERMS OF THE SIDE LETTER AGREEMENT TO THE MEMORANDA OF UNDERSTANDING BETWEEN THE SANTA CLARA VALLEY WATER DISTRICT AND EMPLOYEES ASSOCIATION (EA) AFSCME LOCAL 101, THE ENGINEERS SOCIETY (ES) IFPTE LOCAL 21, and PROFESSIONAL MANAGERS ASSOCIATION (PMA) IFPTE LOCAL 21 FOR THE PERIOD OF APRIL 1, 2024 THROUGH DECEMBER 31, 2025;
C. Authorize CEO, or his designee, to execute Side Letter Agreement to the Memoranda of Understanding between the Santa Clara Valley Water District and Employees Association AFSCME Local 101, Engineers Society IFPTE Local 21, and Professional Managers Association IFPTE Local 21, for the Period of April 1, 2024 through December 31, 2025;
D. Adopt the Resolution APPROVING FOURTH AMENDED COMPENSATION PLAN FOR UNREPRESENTED EMPLOYEES IN THE EXECUTIVE SERVICE FOR THE PERIOD OF APRIL 1, 2024 THROUGH DECEMBER 31, 2025.
Body
SUMMARY:
The existing Memoranda of Understanding between Santa Clara Valley Water District (Valley Water) and its three bargaining groups (Employees Association - AFSCME Local 101; Engineers Society - IFPTE Local 21; and Professional Managers Association - IFPTE Local 21) are scheduled to expire on December 31, 2025. Based upon a November 2023, reopener request from the three bargaining groups, and after direction from the Board, a meeting with the three bargaining groups took place on March 18, 2024. Agreement was reached with the three Bargaining Units at that meeting to modify medical benefits effective April 1, 2024, such that employees will pay 0% and Valley Water will pay 100% of the cost of the medical premium; coverage will be for all employees and their dependents, including domestic partners; and no special enrollment period will be opened in 2024. A resolution is provided for approval with the referenced Side Letter Agreement as an attachment. In addition, corresponding changes to the Compensation Plan for Unrepresented Employees in the Executive Service are provided for approval in a separate resolution. This second resolution includes an updated benefit summary as an attachment.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no environmental justice and equity impacts associated with the side letter agreement or resolutions. This action is unlikely to or will not result in adverse impacts and is not associated with an equity opportunity.
FINANCIAL IMPACT:
The estimated cost of the side letter agreement to staff represented by Valley Water’s three bargaining groups and Executive employees including the BAOs is approximately $875,000 for the last 3 months of Fiscal Year (FY) 2023-24. Staff anticipates that the FY 2023-24 impact would be offset by salary savings. The estimated cost impact is $3.6 million and $4.1 million for FY 2024-25 and FY 2025-26 respectively, which would be added to the Third Pass of the proposed FY 2024-25 Biennial Budget that the Board is scheduled to review on April 24, 2024. The estimated cost impact for FY 2025-26 will change if the mix of employees enrolled in the Kaiser plans versus Blue Shield plans changes.
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: Resolution - Side Letter of Agreement
Attachment 2: Resolution - Compensation Plan for Unrepresented Employees in the Executive Service and Benefits Summary
UNCLASSIFIED MANAGER:
Manager
Patrice McElroy 408-630-3159