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HomeMy WebLinkAbout19. Adopt updated resolution outlining employment benefits for unrepresented at-will positions Page 1 of 22 Item 19. CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: DECEMBER 6, 2018 SUBJECT: ADOPT PROPOSED RESOLUTION NO. 2018-052 OUTLINING THE EMPLOYMENT BENEFITS FOR THE UNREPRESENTED AT-WILL POSITIONS AND RESCINDING RESOLUTION NO. 2018-018 SUBMITTED BY: INITIATING DEPARTMENT: ANN K. SASAKI, DEPUTY GENERAL GM DEPUTY GENERAL MANAGER MANAGER Y, -��";i Roger S. Bailey General Manager ISSUE Board approval is required to adopt a new revised resolution, which rescinds and replaces the active resolution. BACKGROUND On August 16, 2018, the Board adopted Resolution No. 2018-018 which added two additional positions to the unrepresented at-will classifications and increased the base salary for the unrepresented at-will classifications by 3.6 percent effective April 18, 2018. Since that time, labor agreements have been finalized and approved for the three bargaining groups at Central San. This proposed resolution will codify the employment benefits for the unrepresented at-will classifications, including the transition to CalPERs Healthcare, wage increases on April 18, 2019,April 18, 2020, and April 18, 2021 adjusted by the change in the Consumer Price I ndex for all Urban Consumers (San Francisco/Oakland/San Jose) during the most recently completed February-to-February time period, with a minimum of 1.75 percent and a maximum of 3.75 percent (April 2019 and April 2020) and a minimum of 1.75 percent and a maximum of 3.5 percent (April 2021) and modifications to the sick leave incentive for December 6, 2018 Regular Board Meeting Agenda Packet- Page 119 of 202 Page 2 of 22 employees hired or promoted into one of the at-will classifications on or after December 18, 2017. ALTERNATIVES/CONSIDERATIONS None. FINANCIAL IMPACTS Taking into consideration the projected savings from switching to CaIPERS Healthcare, the proposed net cost impact assuming the maximum Consumer Price Index is a savings of$8,400 through the end of 2021. COMMITTEE RECOMMENDATION This matter was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION Adopt the proposed resolution outlining the employment benefits for unrepresented at-will positions and rescinding Resolution No. 2018-018. Strategic Plan Tie-In GOAL TWO: Strive to Meet Regulatory Requirements Strategy 3- Comply with all federal, state, and local regulations related to District administration GOAL FOUR: Develop and retain a highly trained and innovative workforce Strategy 1 - Ensure adequate staffing and training to meet current and future operational levels ATTACHMENTS: 1. Revised Resolution for Unrepresented At-Will Position - CLEAN VERSION 2. Revised Resolution for Unrepresented At-Will Position - STRI KE-OUT December 6, 2018 Regular Board Meeting Agenda Packet- Page 120 of 202 Page 3 of 22 ATTACHMENT 1 RESOLUTION NO. 2018- A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT APPROVING SALARY AND BENEFIT ADJUSTMENTS FOR UNREPRESENTED AT-WILL POSITIONS, OUTLINING THE EMPLOYMENT BENEFITS FOR UNREPRESENTED AT-WILL POSITIONS, AND RESCINDING RESOLUTION NO. 2018-018 WHEREAS, the Central Contra Costa Sanitary District Management Group is the formally recognized exclusive employee representative for all Management Employees, excluding the Executive Management Team, and WHEREAS, the Management Group voted in August 2016 to modify and remove from the bargaining unit the positions of Deputy General Manager and Human Resources Manager; and WHEREAS, the Management Group voted in July 2018 to modify and remove from the bargaining unit the positions of Director of Engineering and Technical Services and the Director of Finance and Administration; and WHEREAS, the salary and benefits of the four unrepresented at-will positions should be memorialized. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District ("District") as follows: THAT the unrepresented at-will employees shall be entitled to the following salary and benefits: a. GENERAL AND MERIT INCREASES — Effective April 18, 2019 and April 18, 2020, employees' wages shall be adjusted by the change in the Consumer Price Index for all Urban Consumers (San Francisco/Oakland/ San Jose) during the most recently completed February-to-February time period prior to the applicable April, with a minimum of 1.75 percent and a maximum of 3.75 percent. Effective April 18, 2021, employees' wages shall be adjusted by the change in Consumer Price Index, with a minimum of 1.75 percent and a maximum of 3.5 percent. Employees will normally receive a salary step increase every 12 months until they reach the top of their range. December 6, 2018 Regular Board Meeting Agenda Packet- Page 121 of 202 Page 4 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 2 of 9 b. VACATION Years Employed Annual Accrual Maximum Accrual 0 — 3 Years 10 Days 20 Days 3-5 15 30 5-10 16 32 10 - 15 17 34 15 - 20 20 40 20 - 25 25 50 25+ 30 60 The extra days accrued due to service of over five years are credited to each employee's account on his/her anniversary date. If an employee leaves the District, they will be paid for any earned vacation time not used. An employee may request payment of accumulated vacation time provided that the employee has either used at least 10 vacation days during the last 12 months or has accrued sufficient vacation time to take a mandatory 10 days of vacation time off within the calendar year of application. The only exception is the payment of accumulated vacation time above the maximum annual accrual shall occur automatically on the anniversary date on which the time would be lost provided that an employee has used at least 10 vacation days during the last 12 months. C. SICK LEAVE — Twelve (12) days of sick leave per year. Sick leave may be used up to 10 days annually to attend to the health needs of an immediate family member. Also, in the event of a death in the employee's immediate family, the employee may charge a maximum of 10 days to their sick leave account. Unused sick leave accumulates from one year to the next. There is no maximum limitation. The District shall augment the sick leave policy with an incentive benefit using the following schedule: Years of Pay-Off Credit Pay-Off Credit Service at Termination at Retirement 0-5 0% 0% 5-10 25 25 10-25 25 35 25+ 25 40 Employees hired or promoted into one of the classifications in the unrepresented at-will group, effective on or after December 18, 2017, will be subject to the following provision: December 6, 2018 Regular Board Meeting Agenda Packet- Page 122 of 202 Page 5 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 3 of 9 Any cash out of sick leave accruals shall be deducted from an employee's sick leave accrual bank at time of retirement. Any remaining balance shall be reported to the Contra Costa County Employees' Retirement Association as retirement service credit. d. ADMINISTRATIVE LEAVE — Eighty (80) hours per year. These administrative leave hours will be credited to each employee's account on the first day of the May pay cycle of each applicable year. e. HOLIDAYS — Thirteen (13) paid holidays per year. f. MEDICAL INSURANCE — Employees shall be provided with a choice of three health plans. The premium cost of the plans shall be borne by the District for employee and qualified eligible dependents. However, employees hired after June 30, 2009 who select the PPO plan shall pay through payroll deduction the difference in premiums between the PPO plan and the highest cost HMO plan. Employees with dual health insurance coverage may waive District medical coverage and in lieu receive a District contribution to the Section 401(a) plan in the amount of $400 per month. TRANSITION TO CALPERS HEALTH — The District is transitioning to CalPERS Healthcare under the Unequal/PEMCHA (Public Employees' Medical and Hospital Care Act) minimum schedule. Upon implementation, current employees shall be provided with health care options through CalPERS. "Core Plans" — Effective upon the implementation of CalPERS, the District agrees to pay the full monthly premium cost of the Kaiser Permanente or Health Net SmartCare plan (the "Core Plans") for active employees and qualified eligible dependents. The District will pay the CaIPERS minimum required contribution amount toward the employee's health care coverage directly to CaIPERS in accordance with CalPERS requirements. The District will make a contribution for the remaining amount (that portion of the District's contribution that exceeds the CalPERS minimum required contribution) to the District's Section 125 cafeteria plan for employees to allocate toward the cost of their health care benefits. If an employee selects any other plan that is offered by CaIPERS that exceeds the cost of either of the Core Plans, the employee must pay the difference in premiums between the highest cost Core Plan and the plan he or she selects. If the selected plan is less than either of the core plans, employees shall not be reimbursed the difference. If CalPERS no longer offers the Core Plans that the District has designated above, the parties agree to meet to determine which plans will be designated as Core Plans. December 6, 2018 Regular Board Meeting Agenda Packet- Page 123 of 202 Page 6 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 4 of 9 Vision Coverage: Full paid by the District for employee and qualified eligible dependents. g. DENTAL PLAN — Fully paid by the District for employee and qualified eligible dependents. h. RETIREMENT PROGRAM — Employees will contribute to the employee cost-of- living share of the retirement system as required by the Contra Costa County Retirement System. In addition, effective April 18, 2017, employees shall pay the entire employee contribution rate toward their pension based on their age at the time of hire as calculated and determined by Contra Costa County Employees' Retirement Association. i. 401(A) PLAN — District's contribution in an amount equal to that which normally would have been contributed to Social Security. j. RETIREE MEDICAL AND DENTAL COVERAGE — TIER II: Employees hired after May 1, 1985 but before April 19, 2003, shall be provided with the continuation of medical and dental and reduced life insurance plans ($10,000 policy) in force at the time of retirement provided that they meet the "Rule of 65." Under the "Rule of 65," an employee's age plus years of service with the District at the time of requirement must total 65, with a minimum requirement that the employee must be at least age 50 and have a minimum of 10 years of continuous service with the District at the time of retirement. Employees hired after April 18, 2003, who have reached age 55 and have a minimum of 10 years of continuous service with the District at the time of retirement shall be covered by medical and dental plans when they retire from District employment. The District shall continue to pay for the full cost of an eligible retired employee's medical and dental coverage until the employee's 65th birthday. At age 65, the retired employee shall pay the District 50 percent of the cost to the District for the employee's medical and dental coverage. Eligible employees' qualified dependents (as defined by the plan provider) who were covered as dependents at the time of retirement also shall be covered by medical and dental plans with the exception that the District shall only pay for the full cost of an eligible dependent's medical and dental plan premiums until the eligible dependent's 65th birthday. At age 65, the eligible dependent shall pay the District 50 percent of the cost to the District for the eligible dependent's medical and dental coverage. TIER III: Employees hired after June 30, 2009 shall be covered by medical and dental plans when they retire from District employment provided that they meet the "Rule of 70." Under the "Rule of 70," an employee's age plus years of service with the District at the time of retirement must total 70, with a minimum December 6, 2018 Regular Board Meeting Agenda Packet- Page 124 of 202 Page 7 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 5 of 9 requirement that the employee must be at least age 55 and have at least 10 years of continuous service with the District at the time of retirement. The District shall only pay 50 percent of the premium cost for the lowest cost medical and dental plan for the retiree and spouse. Eligible employees' qualified dependents (as defined by the plan provider) other than the employee' s spouse who were covered as dependents at the time of retirement also shall be covered by medical and dental plans with the exception that the employee shall pay the full cost of coverage for those dependents. Tier II I retirees and dependents are ineligible for life insurance. RETIREE MEDICAL, VISION AND DENTAL COVERAGE AFTER THE TRANSITION TO CaIPERS HEALTH: Retiree Benefits: Employees are eligible for retiree medical benefits through CaIPERS provided that they retire from the District within 120 days of separation from the District and begin receiving a retirement allowance from the Contra Costa County Employee's Retirement Association. For employees who do not meet the eligibility requirements as outlined in Tiers II and III, the District will only pay the minimum employer contribution that CaIPERS requires toward medical coverage upon retirement from the District. The District will pay the CaIPERS minimum required contribution amount toward a retiree's health care coverage directly to CaIPERS in accordance with CaIPERS requirements. For those employees that are eligible for Tiers II or III benefits, the District will pay the CaIPERS minimum required contribution amount toward the employee's health care coverage directly to CaIPERS in accordance with CaIPERS requirements. The District will contribute any amount that exceeds the CaIPERS minimum required contribution, in accordance with the employees' Tier, to a retiree-only Health Reimbursement Account. TIER II: Employees hired after May 1, 1985, will be covered by medical, dental, vision and reduced life insurance plans ($10,000). The District will pay more than the minimum employer contribution that CaIPERS requires, if the employees meets the "Rule of 65." For employees hired after May 1, 1985 but before April 19, 2003, the "Rule of 65" requires that an employee's age plus years of service with the District at the time of retirement total 65 with a minimum age of 50 and minimum of 10 years of continuous service. For employees hired between April 19, 2003 and June 30, 2009 the "Rule of 65" requires a minimum age of 55 years old and a minimum of 10 years of continuous service. If an employee meets the "Rule of 65," effective upon the ratification of the Memorandum of Understanding and the implementation of CaIPERS, the District shall pay the full monthly premium cost of the Kaiser Permanente or Health Net SmartCare plan (the Core Plans for active employees). December 6, 2018 Regular Board Meeting Agenda Packet- Page 125 of 202 Page 8 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 6 of 9 At age 65, the District will pay 50 percent of the retiree's chosen Core Plan premium or the minimum employer contribution that CalPERS requires, whichever is greater. The District will also pay 50 percent of the cost of the retiree's dental and vision coverage. Eligible employees' qualified dependents (as defined by the plan provider) who were covered as dependents at the time of retirement also shall be covered by medical, vision, and dental plans with the exception that the District will only pay for the full cost of an eligible dependent's medical, vison, and dental plan premiums until the eligible dependent's 65th birthday. At age 65, the District will pay 50 percent of a retiree's eligible dependent's core medical, dental and vision plan premiums. TIER III: Employees hired after June 30, 2009 will be covered by medical, dental, and vision plans. The District will pay more than the minimum employer contribution that CalPERS requires toward the cost of the retiree's coverage, if the employee meets the "Rule of 70". The "Rule of 70" requires that an employee's age plus years of service with the District at the time of retirement total 70 with a minimum age of 55 and minimum of ten years of continuous service. If an employee meets the "Rule of 70," the District will pay 50 percent of the monthly premium cost of the retiree's chosen Core Plan or the minimum employer contribution that CalPERS requires, whichever is greater. The District will also pay 50 percent of the core medical plan premium and vision premium for the retiree's spouse or domestic partner. The District will not pay for any coverage for other dependents of the retiree. The District will pay 100 percent of the premium cost for dental for the retiree and spouse or domestic partner until they each reach the age of 65. At age 65, the District will pay 50 percent of the cost for dental coverage for the retiree and the spouse or domestic partner. For Tier III employees hired on or after April 18, 2013, the District will pay 50 percent of the premium cost for dental coverage for the retiree and spouse or domestic partner upon retirement. Core Plan" for those retirees under the age of 65 are Kaiser Permanente and Health Net SmartCare. For those retirees age 65 and older, the Core Plans are Kaiser Senior Advantage and United Healthcare. If a retiree selects any other plan that is offered by CalPERS that exceeds the cost of either of the Core Plans, the employee must pay, in addition to their share of the monthly premium, the difference in premiums between the highest cost Core Plan and the plan he or she selects. If the selected plan is less than either of the core plans, retirees shall not be reimbursed the difference. At the time of an employee's retirement, all qualified dependents (as defined by the plan provider) who already were dependents at the time of retirement, shall December 6, 2018 Regular Board Meeting Agenda Packet- Page 126 of 202 Page 9 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 7 of 9 continue to be covered by the District's medical and dental plans in accordance with the Tiers I and II benefits as stated above. The District shall have no obligation to pay for coverage for more than two -party (retiree plus one) coverage for any new and different dependent added after the date of retirement. Medicare: The medical coverage for retirees and their eligible dependents will be integrated with Medicare (Tiers II and III) at age 65. For Tier II retirees, upon submission of evidence of payment to Medicare, the District will reimburse the retiree and/or dependent for the cost of the Medicare (Part A and/or B) premiums. However, the District will not be responsible for any penalties or increased costs in the Medicare premium should the employee and/or eligible dependent not enroll in Medicare during the enrollment period surrounding his/her 65th birthday. For Tier III, the District will not reimburse any Medicare premiums. The District will make a contribution to a Health Reimbursement Account equal to the cost of the Medicare reimbursement based on the eligible Tier. Survivor Benefits: Qualified dependents of a deceased employee/retiree will be eligible for the continuance of health and dental benefits at the same level as the retiree unless the dependents are no longer eligible under District or CaIPERS rules, regulations or policies. k. DISABILITY PLAN — Employees shall pay the premiums for the Long-Term Disability Program. I. LIFE INSURANCE — The District provides term life insurance and accidental death and dismemberment coverage as follows: The lesser of (a) an amount equal to two times the employee's annual earnings, the result rounded to the next higher multiple of $1,000 if not an exact multiple thereof, or (b) $ 250,000. Dependents term life insurance equals $1,500 for employee's spouse and $100 for employee's children according to attained age of 14 days or over but less than six months, and $1,000 for children six months or over until age nineteen, unless a full-time student less than 23 years of age and dependent upon the employee for support. M. CAFETERIA PLAN — $425 per month. Yearly benefits will be calculated as of January 1 of each year. n. PROFESSIONAL EXPENSE REIMBURSEMENT — $3,000 per fiscal year for use in improving knowledge and skills. This allowance may be used for professional, job-related training, class, or conference, subject to approval by the General December 6, 2018 Regular Board Meeting Agenda Packet- Page 127 of 202 Page 10 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 8 of 9 Manager. Travel is limited to the United States. and Canada unless approved by the General Manager and the District Board. The unused portion may carry over two additional fiscal years, allowing for a maximum expenditure in any fiscal year of $9,000. o. REGISTRATION DIFFERENTIAL — Five percent salary increase to employees who achieve registration or license as a Professional Engineer, Land Surveyor, or Certified Public Accountant in a position not requiring such registration or license. P. PROFESSIONAL REGISTRATION — The District shall pay the registration and renewal fees for all professional registered engineers, licensed land surveyors, Certified Public Accountants, and those employees who hold a current California Wastewater Treatment Plant Operator's Certificate. The registration and /or certificate must be a requirement of the employee's classification. q. LONGEVITY COMPENSATION — An additional 2.5 percent salary increase after 10 years or more of employment with the District and an additional 2.5 percent salary increase (for a total of five percent) after 20 years of continuous employment with the District. r. SALARY CONTINUANCE — It is the general policy of the District to continue pay to an employee under the Salary Continuance Plan when an employee incurs a work -related injury or illness. This plan commences if the employee qualifies for temporary disability payments from Worker's Compensation for the disability and, if in the opinion of the District, the disability is work -related. If the injury or illness is determined legitimate, all of the employee's regular benefits will continue during the time this plan is in effect. The salary continuance will be equivalent to 70 percent of gross salary less any Worker's Compensation payments. The maximum period for which this plan could be used by an employee will be six months or until a stable level of disability is reached, whichever comes first. The Salary Continuance Plan will commence on the fourth day after the disabled employee leaves work as a result of the injury or illness after a three-day waiting period. However, if the injury or illness causes disability of more than 21 days or necessitates hospitalization, the Plan will become effective from the first day the injured employee leaves work as a result of the injury or illness. The employee may use vacation or sick leave accrual during this waiting period. S. EMPLOYEE ASSISTANCE PROGRAM (EAP) — Provided by the District to the employee. December 6, 2018 Regular Board Meeting Agenda Packet- Page 128 of 202 Page 11 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 9 of 9 THAT the unrepresented at-will employees may discuss their salary, benefits, and conditions of employment with the General Manager at any time. THAT as of the effective date of this resolution, the existing Central San Resolution No. 2018-18 is rescinded. PASSED AND ADOPTED this the day of December, 2018, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District December 6, 2018 Regular Board Meeting Agenda Packet- Page 129 of 202 Page 12 of 22 ATTACHMENT 2 RESOLUTION NO. 2018-04-8 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT APPROVING A SALARY AND BENEFIT ADJUSTMENT FOR UNREPRESENTED AT-WILL POSITIONS, OUTLINING THE EMPLOYMENT BENEFITS FOR UNREPRESENTED AT-WILL POSITIONS, AND RESCINDING RESOLUTION NO. 2018-04-7 WHEREAS, the Central Contra Costa Sanitary District Management Group is the formally recognized exclusive employee representative for all Management Employees, excluding the Executive Management Team, and WHEREAS, the Management Group voted in August 2016 to modify and remove from the bargaining unit the positions of Deputy General Manager and Human Resources Manager; and WHEREAS, the Management Group voted in July 2018 to modify and remove from the bargaining unit the positions of Director of Engineering and Technical Services and the Director of Finance and Administration; and WHEREAS, the salary and benefits of the four unrepresented at-will positions should be memorialized. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District ("District") as follows: THAT the unrepresented at-will employees shall be entitled to the following salary and benefits: a. GENERAL AND MERIT INCREASES Effective April 18, 22019 and April 18, 2020, employees' wages shall be adjusted by 3A°4 `"'h;nh o,.+ss the change in the Consumer Price Index-(CPI) for all Urban Consumers (San Francisco/ Oakland / San Jose) during the most recently completed February--to--February time period prior to the applicable April, with a minimum of 1.75° percent and a maximum of 3.75° percent. -Effective April 18, 2021, employees' wages shall be adjusted by the change in GP4Consumer Price Index, with a minimum of 1.75% percent and a maximum of 3.5% percent.--Employees will normally receive a salary step increase every twelve (112) months until they reach the top of their range. December 6, 2018 Regular Board Meeting Agenda Packet- Page 130 of 202 Page 13 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 2 of 11 b. VACATION Years Employed Annual Accrual Maximum Accrual 0 - 3 Years 10 Days 20 Days 3-5 15 30 5-10 16 32 10 - 15 17 34 15 - 20 20 40 20 - 25 25 50 25+ 30 60 The extra days accrued due to service of over five years are credited to each employee's account on his/her anniversary date. If an employee leaves the District they will be paid for any earned vacation time not used. An employee may request payment of accumulated vacation time provided that the employee has either used at least -n-11 OA vacation days during the last 12 months or has accrued sufficient vacation time to take a mandatory 10 days of vacation time off within the calendar year of application. The only exception is the payment of accumulated vacation time above the maximum annual accrual shall occur automatically on the anniversary date on which the time would be lost provided that an employee has used at least x(10) vacation days during the last welve X123 months. C. SICK LEAVE - Twelve (12) days of sick leave per year. Sick leave may be used up to --n4l0_}days annually to attend to the health needs of an immediate family member. Also, in the event of a death in the employee's immediate family, the employee may charge a maximum of ten410 days to their sick leave account. Unused sick leave accumulates from one year to the next. There is no maximum limitation. The District shall augment the sick leave policy with an incentive benefit using the following schedule: Years of Pay-Off Credit Pay-Off Credit Service at Termination at Retirement 0-5 0% 0% 5-10 25 25 10-25 25 35 25+ 25 40 December 6, 2018 Regular Board Meeting Agenda Packet- Page 131 of 202 Page 14 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 3 of 11 Employees hired or promoted into one of the classifications in the unrepresented at-will group, effective on or after December 18, 2017, will be subject to the following provision: December 6, 2018 Regular Board Meeting Agenda Packet- Page 132 of 202 Page 15 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 4 of 11 Any cash out of sick leave accruals shall be deducted from an employee's sick leave accrual bank at time of retirement. -Any remaining balance shall be reported to the Contra Costa County Employees' Retirement Association (CCCERA) as retirement service credit. d. ADMINISTRATIVE LEAVE – Eighty (80) hours per year. These administrative leave hours will be credited to each employee's account on the first day of the May pay cycle of each applicable year. e. HOLIDAYS Thirteen (13) paid holidays per year. f. MEDICAL INSURANCE Employees shall be provided with a choice of three health plans. The premium cost of the plans shall be borne by the District employee and qualified eligible dependents. However, employees hired after June 30, 2009 who select the PPO plan shall pay through payroll deduction the difference in premiums between the PPO plan and the highest cost HMO plan. Employees with dual health insurance coverage may waive District medical coverage and in lieu receive a District contribution to the Section 401(a) plan in the amount of$400 per month. TRANSITION TO CALPERS HEALTH — The District is transitioning to CalPERS Healthcare under the Unequal/PEMCHA (Public Employees' Medical and Hospital Care Act) minimum schedule. - Upon implementation, current employees shall be provided with health care options through CaIPERS. "Core Plans" – Effective upon the implementation of CaIPERS, the District agrees to pay the full monthly premium cost of the Kaiser Permanente or Health Net SmartCare plan (the "Core Plans") for active employees and qualified eligible dependents. The District will pay the CalPERS minimum required contribution amount toward the employee's health care coverage directly to CalPERS in accordance with CaIPERS requirements. The District will make a contribution for the remaining amount (that portion of the District's contribution that exceeds the CaIPERS minimum required contribution) to the District's Section 125 cafeteria plan for employees to allocate toward the cost of their health care benefits. -If an employee selects any other plan that is offered by CalPERS that exceeds the cost of either of the Core Plans, the employee must pay the difference in premiums between the highest cost Core Plan and the plan he or she selects. -If the selected plan is less than either of the core plans, employees shall not be reimbursed the difference. December 6, 2018 Regular Board Meeting Agenda Packet- Page 133 of 202 Page 16 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 5 of 11 If CalPERS no longer offers the Core Plans that the District has designated above, the parties agree to meet to determine which plans will be designated as Core Plans. Vision Coverage: Full paid by the District for employee and qualified eligible dependents. g. DENTAL PLAN - Fully paid by the District for employee and qualified eligible dependents. h. RETIREMENT PROGRAM -_ Employees will contribute to the employee cost--of- living (GOL) share of the retirement system as required by the Contra Costa County Retirement System.--In addition, effective April 18, 2017, employees shall pay the entire employee contribution rate toward their pension based on their age at the time of hire as calculated and determined by Contra Costa County Employees' Retirement Association GGGERA. i. 401(A) PLAN - District's contribution in an amount equal to that which normally would have been contributed to Social Security. j. RETIREE MEDICAL AND DENTAL COVERAGE – TIER II: Employees hired after May 1, 1985 but before April 19, 2003, shall be provided with the continuation of medical and dental and reduced life insurance plans ($10,-000 policy) in force at the time of retirement provided that they meet the "Rule of 65." Under the "Rule of 65," an employee's age plus years of service with the District at the time of requirement must total 65, with a minimum requirement that the employee must be at least age 50 and have a minimum of ten4l0) years of continuous service with the District at the time of retirement. Employees hired after April 18, 2003, who have reached age 55 and have a minimum of tep4l0) years of continuous service with the District at the time of retirement shall be covered by medical and dental plans when they retire from District employment. The District shall continue to pay for the full cost of an eligible retired employee's medical and dental coverage until the employee's 65th birthday. At age 65, the retired employee shall pay the District fifty PeFGent A50% percent) of the cost to the District for the employee's medical and dental coverage. Eligible employees' qualified dependents (as defined by the plan provider) who were covered as dependents at the time of retirement also shall be covered by medical and dental plans with the exception that the District shall only Pay for the full cost of an eligible dependent's medical and dental plan premiums until the eligible dependent's 65th birthday. At age 65, the eligible dependent shall pay the District fifty .Perm* 450° percent) of the cost to the District for the eligible dependent's medical and dental coverage. December 6, 2018 Regular Board Meeting Agenda Packet- Page 134 of 202 Page 17 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 6 of 11 TIER III: Employees hired after June 30, 2009 shall be covered by medical and dental plans when they retire from District employment provided that they meet the "Rule of 70." Under the "Rule of 70," an employee's age plus years service with the District at the time of retirement must total 70, with a minimum requirement that the employee must be at least age 55 and have at least 10tea `ears of continuous service with the District at the time of retirement. -The District shall only pay fifty eernent (50% percenO of the premium cost for the lowest cost medical and dental plan for the retiree and spouse.- Eligible employees' qualified dependents (as defined by the plan provider) other than the employee' s spouse who were covered as dependents at the time of retirement also shall be covered by medical and dental plans with the exception that the employee shall pay the full cost of coverage for those dependents. Tier III retirees and dependents are ineligible for life insurance. At Dria-tr� Tier nI-I level. The Rule of 70 must be mot Age plus years e — I . it that the empleyee must be at least age 55 and have at least teR (4-04 years GORtORYOUSserViGe. The DiJtriG hall GnlY pari fiftyperceRt (50%) of the eremii im nest for the IE)West host mediGal and deRtal plan for the retiree and spouse. Eligible ernpleyees' qualified depeRdentc (as defiRed by the elan the torne of retorerneRt also shall be GOvered by rnediGal and dental plaRS with t4e eXGeptiOR the ee shall� the f6l'!GE)6t Of� a for these aQgedeRtS. Tier�etireesand epeeRdent are ReligihIe for life iRsUraRGe. RETIREE MEDICAL, VISION AND DENTAL COVERAGE AFTER THE TRANSITION TO CaIPERS HEALTH: Retiree Benefits: Employees are eligible for retiree medical benefits through CaIPERS provided that they retire from the District within 120 days of separation from the District and begin receiving a retirement allowance from the Contra Costa County Employee's Retirement Association. For employees who do not meet the eligibility requirements as outlined in Tiers II; and III, the District will only pay the minimum employer contribution that CaIPERS requires toward medical coverage upon retirement from the District. The District will pay the CaIPERS minimum required contribution amount toward a retiree's health care coverage directly to CaIPERS in accordance with CaIPERS requirements. For those employees that are eligible for Tiers II; or III benefits, the District will pay the CaIPERS minimum required contribution amount toward the employee's December 6, 2018 Regular Board Meeting Agenda Packet- Page 135 of 202 Page 18 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 7 of 11 health care coverage directly to CaIPERS in accordance with CaIPERS requirements. The District will contribute any amount that exceeds the CaIPERS minimum required contribution, in accordance with the employees' Tier, to a retiree-only Health Reimbursement Account. TIER II: Employees hired after May 1, 1985, will be covered by medical, dental, vision and reduced life insurance plans ($10,000). The District will pay more than the minimum employer contribution that CaIPERS requires, if the employ meets the "Rule of 65."". For employees hired after May 1, 1985 but before April 19, 2003, the "Rule of 65" requires that an employee'sqe plus years service with the District at the time of retirement total 65 with a minimum age of 50 and minimum of te- 10 years of continuous service. For employees hired between April 19, 2003 and June 30, 2009 the "Rule of 65" requires a minimum age of 55 years old and a minimum of 10 years of continuous service. If an employee meets the "Rule of 65," effective upon the ratification of the MG-UMemorandum of Understanding and the implementation of CaIPERS, the District shall pay the full monthly premium cost of the Kaiser Permanente or Health Net SmartCare plan (the "Core Plans"for active employees). At age 65, the District will pay 50% percent of the retiree's chosen Core Plan premium,- or the minimum employer contribution that CaIPERS requires, whichever is greater. The District will also pay 50% percent of the cost of the retiree's dental and vision coverage. Eligible employees' qualified dependents (as defined by the plan provider) who were covered as dependents at the time of retirement also shall be covered by medical, vision, and dental plans with the exception that the District will only pay for the full cost of an eligible dependent's medical, vison, and dental plan premiums until the eligible dependent's 65th birthday. At age 65, the District will pay 50% percent of a retiree's eligible dependent's core medical, dental and vision plan premiums. TIER III: Employees hired after June 30, 2009 will be covered by medical, dental, and vision plans. The District will pay more than the minimum employer contribution that CaIPERS requires toward the cost of the retiree's coverage, if the employee meets the "Rule of 70". The "Rule of 70" requires that an employee's age plus years of service with the District at the time of retirement total 70 with a minimum age of 55 and minimum of ten years of continuous service. If an employee meets the "Rule of 70," the District will pay 50% percent of the monthly premium cost of the retiree's chosen Core Plan, or the minimum employer contribution that CaIPERS requires, whichever is greater. -The District will also pay 50% percent of the core medical plan premium and vision premium for the retiree's spouse or domestic partner. -The District will not pay for any coverage for other dependents of the retiree. December 6, 2018 Regular Board Meeting Agenda Packet- Page 136 of 202 Page 19 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 8 of 11 The District will pay 100° percent of the premium cost for dental for the retiree and spouse or domestic partner until they each reach the age of 65. -At age 65, the District will pay 50% percent of the cost for dental coverage for the retiree and the spouse or domestic partner. For Tier III employees hired on or after April 18, 2013, the District will pay 50% percent of the premium cost for dental coverage for the retiree and spouse or domestic partner upon retirement. "Core Plans" for those retirees under the age of 65 are Kaiser Permanente and Health Net SmartCare. For those retirees age 65 and older, the Core Plans are Kaiser Senior Advantage and United Healthcare. If a retiree selects any other plan that is offered by CaIPERS that exceeds the cost of either of the Core Plans, the employee must pay, in addition to their share of the monthly premium, the difference in premiums between the highest cost Core Plan and the plan he or she selects. If the selected plan is less than either of the core plans, retirees shall not be reimbursed the difference. At the time of an employee's retirement, all qualified dependents (as defined by the plan provider) who already were dependents at the time of retirement, shall continue to be covered by the District's medical and dental plans in accordance with the Tiers I and T1er--Il benefits as stated above. The District shall have no obligation to pay for coverage for more than two -party (retiree plus one) coverage for any new and different dependent added after the date of retirement. Medicare: The medical coverage for retirees and their eligible dependents will be integrated with Medicare (Tiers II; and III) at age 65. -For Tier II retirees, upon submission of evidence of payment to Medicare, the District will reimburse the retiree and/or dependent for the cost of the Medicare (Part A and/or B) premiums. However, the District will not be responsible for any penalties or increased costs in the Medicare premium should the employee and/or eligible dependent not enroll in Medicare during the enrollment period surrounding his/her 65th birthday. For Tier III, the District will not reimburse any Medicare premiums. The District will make a contribution to a Health Reimbursement Account�HRA equal to the cost of the Medicare reimbursement based on the eligible Tier. Survivor Benefits: Qualified dependents of a deceased employee/retiree will be eligible for the continuance of health and dental benefits at the same level as the retiree unless the dependents are no longer eligible under District or CalPERS rules, regulations or policies. k. DISABILITY PLAN -= Employees shall pay the premiums for the Long-Term December 6, 2018 Regular Board Meeting Agenda Packet- Page 137 of 202 Page 20 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 9 of 11 Disability Program. I. LIFE INSURANCE -- The District provides term life insurance and accidental death and dismemberment coverage as follows: The lesser of (a) an amount equal to two times the employee's annual earnings, the result rounded to the next higher multiple of $1,000 if not an exact multiple thereof, or (b) $ 250,000. Dependents term life insurance equals $1,500 for employee's spouse and $100 for employee's children according to attained age of 14 days or over but less than six months, and $1,000 for children six months or over until age nineteen, unless a full--time student less than 23 years of age and dependent upon the employee for support. M. CAFETERIA PLAN -_ $425 per month. Yearly benefits will be calculated as of January 1 of each year. n. PROFESSIONAL EXPENSE REIMBURSEMENT -_ $3,000 per fiscal year for use in improving knowledge and skills. This allowance may be used for professional, job-related training, class, or conference, subject to approval by the General Manager. Travel is limited to the k —. SUnited States. and Canada unless approved by the General Manager and the District Board. The unused portion may carry over two additional fiscal years, allowing for a maximum expenditure in any fiscal year of $9,000. o. REGISTRATION DIFFERENTIAL -= Five percent 5salary increase to employees who achieve registration or license as a Professional Engineer, Land Surveyor, or Certified Public Accountant in a position not requiring such registration or license. p. PROFESSIONAL REGISTRATION -- The District shall pay the registration and renewal fees for all professional registered engineers, licensed land surveyors, Certified Public Accountants, and those employees who hold a current California Wastewater Treatment Plant Operator's Certificate. The registration and /or certificate must be a requirement of the employee's classification. q. LONGEVITY COMPENSATION --An additional two and ^^e-half norGeRt (2 1/2%2.5 percent) salary increase after 10 years or more of employment with the District and an additional two and one half per..on+ X2.5 2— 12% ep rcent) salary increase (for a total of five`"° percent) after tx(20) years of continuous employment with the District. December 6, 2018 Regular Board Meeting Agenda Packet- Page 138 of 202 Page 21 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 10 of 11 r. SALARY CONTINUANCE It is the general policy of the District to continue pay to an employee under the Salary Continuance Plan when an employee incurs a work -related injury or illness. This plan commences if the employee qualifies for temporary disability payments from Worker's Compensation for the disability and, if in the opinion of the District, the disability is work -related. If the injury or illness is determined legitimate, all of the employee's regular benefits will continue during the time this plan is in effect. The salary continuance will be equivalent to seventy pernont (70% ep rcent) of gross salary less any Worker's Compensation payments. The maximum period for which this plan could be used by an employee will be six 64 months or until a stable level of disability is reached, whichever comes first. The Salary Continuance Plan will commence on the fourth day after the disabled employee leaves work as a result of the injury or illness after a three-day waiting period. However, if the injury or illness causes disability of more than WeRty GRe �21� days or necessitates hospitalization, the Plan will become effective from the first day the injured employee leaves work as a result of the injury or illness. The employee may use vacation or sick leave accrual during this waiting period. S. EMPLOYEE ASSISTANCE PROGRAM (EAP) Provided by the District to the employee. THAT the unrepresented at-will employees may discuss their salary, benefits, and conditions of employment with the General Manager at any time. THAT as of the effective date of this resolution, the existing Central San Resolution No 2018-1 is rescinded. PASSED AND ADOPTED this --the day of Decembe 2018, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: December 6, 2018 Regular Board Meeting Agenda Packet- Page 139 of 202 Page 22 of 22 Central Contra Costa Sanitary District Resolution 2018- Page 11 of 11 Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District December 6, 2018 Regular Board Meeting Agenda Packet- Page 140 of 202