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HomeMy WebLinkAbout04.d. Adopt MOU re Management Group effective April 18, 2012Central Contra Costa Sanitary District � BOARD OF DIRECTORSpi, POSITION PAPER Board Meeting Date: November 1, 2012 subject: ADOPT MEMORANDUM OF UNDERSTANDING BETWEEN THE DISTRICT AND THE MANAGEMENT GROUP EFFECTIVE APRIL 18, 2012 THROUGH DECEMBER 17, 2017 Submitted By: Elaine Boehme Initiating Deptmiv.: Administration Secretary of the District REVIEWED AND RECOMMENDED FOR BOARD ACTION. 62Z2eA=e, Elaine Boehme Secretary of the District G "_R Edward Kreisberg, Esq. A� Ann Farrell General Manager ISSUE: The Management Group ratified a successor Memorandum of Understanding (MOU) with the District on October 19, 2012 and formal adoption by the Board of Directors is required. RECOMMENDATION: Adopt the MOU with the Management Group effective April 18, 2012 through December 17, 2017. FINANCIAL IMPACTS: The cost associated with the negotiated changes in the first year of the MOU is approximately $11,585. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: Board representatives and the Management bargaining team have concluded meeting and conferring on the changes to the MOU. The parties worked to achieve a tentative agreement that balanced the needs of the District and the employees and agreement was reached on the following items: • Wages: Effective April 18, 2012, and in each subsequent April for the term of the MOU, a Consumer Price Index (CPI) adjustment based on the change in the CPI for all Urban Consumers (San Francisco /Oakland /San Jose) from February to February, with a maximum of 5% and a minimum of 2% each year. • Pension Contribution by Employees to Employee Share: Effective April 18, 2012, employees contribute 1.25 %, an additional 1.25% on April 18, 2014, an additional 1.25% on April 18, 2015, an additional 1.25% on April 18, 2015, and employees paying the full employee share on April 18, 2017. • Dual Health Contribution: Increase District's contribution to those who show health coverage from $200 to $400 per month with the entire amount contributed to deferred compensation. • Me Too Clause: Employees in the Management Group shall receive any across - the -board compensation adjustments received by either Local One or the Management Support/Confidential Group (MS /CG) during the current 2012 POSITION PAPER Board Meeting Date: November 1, 2012 subject ADOPT MEMORANDUM OF UNDERSTANDING BETWEEN THE DISTRICT AND THE MANAGEMENT GROUP EFFECTIVE APRIL 18, 2012 THROUGH DECEMBER 17, 2017 round of MOU negotiations that is more advantageous than contained in this agreement such as, but not limited to, a larger wage increase or a lesser percentage employee contribution obligation to pension. Attached is the draft Memorandum of Understanding between the District and the Management Group. Any additions are denoted in blue and any deletions are denoted by red strikeouts. RECOMMENDED BOARD ACTION: Adopt the Memorandum of Understanding between the District and the Central Contra Costa Sanitary District Management Group, covering all the positions designated as Management, effective April 18, 2012 through December 17, 2017. CENTRAL CONTRA COSTA SANITARY DISTRICT MANAGEMENT GROUP MEMORANDUM OF UNDERSTANDING jUNE-o- Z-89QAPRIL 18, 2012 THROUGH APRIL DECEMBER 17,20V7 RECOGNITION AND COVERAGE The Management Group is the formally recognized exclusive employee representative for all Management Employees, excluding Executive Management, of the Central Contra Costa Sanitary District. The Management Group shall represent: Classification Salary Range Director of Administration M -20 Director of Engineering M -20 Director of Plant Operations M -20 Director of Collection System Operations M -20 Director of Operations M -20 Environmental Services Division Manager M -24 Capital Projects Division Manager M -24 Plant Operations Division Manager M -24 Plant Maintenance Division Manager M -24 Collection System Operations Division Manager M -24 Regulatory Compliance Division Manager M -24 Finance ManageerCentrolle M -29 Human Resources Manager M -33 Purchasing and Materials Manager M -35 Communication Services Manager M -35 The District need not fill those positions as listed above. II RIGHTS The Board of Directors' Representatives and the duly appointed Representatives of the Management Group will meet and confer in good faith. The Board of Directors, or any agent thereof, agrees that there will be no interference, restraint or coercion against the Management Group or any employee because of his /her group membership or group activity. All employees of this bargaining unit, Management Group, in addition to being governed by this Agreement, shall also be subject to the District's rules, regulations, and policies having general applicability to employees of the District and any subsequent rules, regulations, and policies that may be promulgated in the future, so long as they do not conflict with this Agreement, past practices, or the law. Issues affecting employment which arise from members of the Management Group concerning the interpretation or application of the District's rules, regulations, or policies shall be discussed between the Manager, Manager's Supervisor, and the General Manager in a good faith attempt to resolve the issue. If they cannot reach a solution, the Board of Directors will hear the issue and make the final decision. III TERM This Memorandum of Understanding shall remain in full force and effect from I„re 18 200 -9 it 18, 2012 through 4pO, December 17, 201: 7. IV GENERAL AND MERIT INCREASES • •�• .. .. EffeGtove April 18, 2010, the wage adjustment shall be based on Ghanges in the Fra 0 nGiSGe/Oakland/SaR Jose) dUFiRg the February 2009 to February 2010 base per ed. DepeRding OR the GPI, the salary adjustment shall be at least two perGeRt (20,/0), 0 EffeGtive April 18, 2011, the wage adjustmeRt shall be based en Ghanges on the Fra 0 nGiSGe/Qak1and/9aR Jose) dHFiRg the February 2010 to February 2011 base per ed. DepeRding OR the GPI, the salary adjustment shall be at least two perGent 0 0 , Effective April 18 2012 April 18 2013 April 18 2014 April 18 2015 April 18 2016, and April 18, 2017 employees' wages shall be adjusted by 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 2% and a maximum of 5 %. The payment of the first wage increase back to April 18 2012 shall apply only to employees still employed at the time the Board approves this MOU and shall not impact any District obligation with respect to incentive pays overtime, cash -outs, or other types of pay or compensation other than wage already provided by the District prior to Board approval with the exception of employees' contribution to the employee retirement contribution rate as set forth in the "Retirement Program" section of this MOU Employees normally receive a salary step increase upon satisfactory completion of their Probationary period and a merit increase of one salary step every twelve (12) months from the date they achieve permanent status until they reach the top of their range. 2 V The District shall distribute paychecks directly to the employee on the last regular District working day of each month. However, if the employee so elects, distribution may take place at the employee's written request by courtesy deposit to the Contra Costa Federal Credit Union or by direct deposit to any single financial institution accepting electronic wire transfer from the Federal Reserve Bank. Employees shall be paid based on a pay period from the 18th to 17th of each month. Employees in the Management Group shall receive any across - the -board compensation adjustments received by either Local One or the Management Support/Confidential Group (MS /CG) during the current 2012 round of MOU negotiations that is more advantageous than contained in this agreement such as, but not limited to, a larger wage increase or a lesser percentage employee contribution obligation to pension. VACATION Hired prior Hired after Annual Maximum to May 1, 1985 May 1, 1985 Allowance Accrual Years Employed 0 -3 Years 10 Days 20 Days 0 -5 Years 3 -5 15 30 5 -10 5 -10 16 32 10 -15 10 -15 17 34 15 -20 15 -20 20 40 20 -25 20 -25 25 50 25 -30 25+ 30 60 30+ 35 70 The extra days accrued due to service of over five (5) years are credited to each employee's account on his /her anniversary date. If an employee leaves the District for any reason he /she will be paid for any earned vacation time not used. Payment of accumulated vacation time shall occur upon written request of the employee provided that the employee has either used at least ten (10) vacation days during the last twelve (12) months or has accrued sufficient vacation time to take a mandatory ten (10) days of vacation time off within the calendar year of application. Note the following exception to the above: 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 ten (10) vacation days during the last twelve (12) months. 3 VI SICK LEAVE Employees hired prior to May 1, 1985, earn fifteen (15) days of sick leave per year. Employees hired after May 1, 1985, earn twelve (12) days of sick leave per year. Sick leave may be used up to ten (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 be absent up to a maximum of ten (10) days and have the time off charged to his /her sick leave account. Unused sick leave accumulates from one year to the next. There is no maximum limitation. The balance of unused accumulated sick leave is credited as longevity upon retirement. For employees hired prior to May 1, 1985, the District shall augment the above sick leave policy with an incentive benefit using a formula crediting eighty -five (85 %) of the employee's yearly unused sick leave to an accumulating account for that employee. For employees hired after May 1, 1985, the following schedule shall apply: 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 VII MEDICAL INSURANCE Current regular or probationary employees shall be provided with a choice of three health plans. As of the date of this Agreement, those plans are Kaiser, a HealthNet HMO and a HealthNet PPO. In the event these plans become unavailable due to unforeseen circumstances, the parties agree to meet and confer as soon as possible to negotiate the effects of any such change. The premium cost of the plans shall be borne by the District. 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 withdraw from the District's health insurance plan and, effective the first full pay period following_ Board approval of this MOU, receive a District contribution to deferred compensation in the amount of $'400 per month of additional salary in lieu of enrollment in the medical plan. The parties agree that in the event that federal health care reform legislation becomes effective during the term of this Agreement which calls for health or other benefits different, or under different terms than those provided for in the Agreement, they will immediately meet and confer for the appropriate modification. VIII RETIREMENT PROGRAM Retirement is based upon a formula which includes the employee's age, salary, and years of service. The DistriGt's Ge ;trib utien is 100, of the amp + f the ...J� n Empleyee's I Employees will continue to contribute to the employee cost -of- living (COL) share of the retirement system as required by the Contra Costa County Retirement System. In addition, effective April 18 2012 employees shall contribute 1.25% of the employee contribution rate toward their pension. Effective April 18 2014 employees shall contribute an additional 1.25% (for a total of 2.5%) of the employee contribution rate toward their pension. Effective April 18 2015 employees shall contribute an additional 1.25% (for a total of 3.75%) of the employee contribution rate toward their pension. Effective April 18 2016 employees shall contribute an additional 1.25% (for a total of 5.0%) of the employee contribution rate toward their pension. 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 CCCERA The District and Management agree that notwithstanding any other provision of this MOU, the District and Management employees shall comply with the California Public Employees' Pension Reform Act of 2013 IX CONTINUANCE OF BENEFIT PLAN TIER I: Employees hired prior to May 1, 1985, shall be provided with the continuance of medical, dental, and reduced life insurance plans (one -half of life insurance provided at the time of retirement) when they retire from District employment 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 retirement must total 65, with a minimum requirement that the employee must be at least age 50 and have at least ten (10) years of continuous service with the District at the time of retirement. 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. 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 5 requirement that the employee must be at least age 50 and have a minimum of ten (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 ten (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 fifty percent (50 %) 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 percent (50 %) 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 requirement that the employee must be at least age 55 and have at least ten (10) years of continuous service with the District at the time of retirement. The District shall only pay fifty percent (50 %) 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. COMMON TO ALL RETIREES: 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 Tier I and Tier 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. Medical coverage will be integrated (integration shall start at the age designated for Medicare benefits, currently age 65) with Medicare for all retirees regardless of hire date and eligible dependents upon their 65th birthday. If the retiree's /dependent's health plan requires enrollment at age 65 in Medicare Part B, the retiree and /or dependent shall be responsible for paying for the Medicare premiums. For Tier I and 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 B premiums. For Tier III, the District shall not reimburse any C. Medicare 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. The program for dependents of a deceased employee shall provide for the continuance of health and dental benefits for the length of that employee's total service with the District (in other than temporary status), or until such time that the spouse remarries, or until such time that the dependents no longer qualify for benefits as stated by the District's policy. X DENTAL PLAN The District shall provide a dental care program fully paid by the District. Delta Dental shall be the dental plan provider. XI DISABILITY INSURANCE All employees will be required to maintain a Long Term Disability Program. Employees shall pay the premiums for the Long Term Disability Program. The premium amount previously paid by the District will be included in employees' compensation. XII 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. XIII OTHER LEAVES If an employee is called for jury duty, he /she may take time off with pay and not take any monies from the court (not including mileage allowance or meal expense) as a juror. Mileage allowance shall be kept by the employee under any circumstance. Employees who are assigned to military duty are entitled to military leave in accordance with the provisions of applicable state laws (California Military and Veterans Code, Section 395 et. seq.). For the purposes of State Disability Insurance, Pregnancy Disability Leave is effective the first date the employee is disabled. The District will require verification from the employee's physician. E.g. If an employee's last day of work is 9/1, and the baby is delivered on 10/1, then the effective date of Pregnancy Disability Leave will be 9/1. Upon termination of the disability (generally six weeks following a regular delivery; eight weeks following a Caesarean Section, or the length of the disability whichever is longer), the employee will no longer be able to use sick leave, but will be allowed to use any accrued vacation or leave without pay. The combination of time off for approved Pregnancy Disability Leave and Family Medical Leave may not total more than seven months per occasion. This requires approval of the Department Director. The District will comply with the provisions of the Family and Medical Leave Act and the California Family Rights Act. The District will require an employee to exhaust his /her sick leave prior to considering leave of absence without pay for the purposes of family and medical leave. All Management Group employees will receive forty (40) hours per year administrative leave. 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. XIV HOLIDAYS There are thirteen (13) paid holidays. XV CAFETERIA PLAN All employees shall be provided $375 per month for use on the Cafeteria Plan. Yearly benefits will be calculated as of January 1 of each year. Effective January 1, 2004, the District shall contribute an additional $50 per month for each employee to the Cafeteria Plan provided that this additional amount must be used to reimburse eligible Cafeteria Plan expenses. The additional $50 per month may not be taken in cash. XVI PROFESSIONAL EXPENSE REIMBURSEMENT Each manager shall have a Professional Expense Reimbursement not to exceed $3,000 per fiscal year for their use in improving their knowledge and skills. This allowance would be used for professional, job - related training, class, or conference requested by the manager. It is subject to approval by the General Manager. Travel would be limited to the U.S. and Canada unless the General Manager and the District Board approve attending functions outside the U.S. and Canada. The unused portion may carry over two additional fiscal years, allowing for a maximum expenditure in any fiscal year of $9,000. f:3 XVII REGISTRATION DIFFERENTIAL The District grants a five percent (5 %) 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. XVIII 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. XIX LONGEVITY COMPENSATION Employees who have 10 years or more of service in the District will receive an additional two and one -half percent (21/2 %) salary increase. XX 401(a) PLAN AND DEFERRED COMPENSATION PROGRAM In lieu of Social Security, the District offers a 401(a) Plan. The District's contribution to the 401(a) Plan is an amount equal to that which normally would have been contributed to Social Security. If, during the term of this Memorandum of Understanding, the District is required by law to participate in the Social Security system, the District will cease contributing to the 401(a) Plan and will meet and confer on the change. The District also offers a Deferred Compensation Plan. Employee participation in the Deferred Compensation Plan is voluntary. XXI TERMINAL COMPENSATION The employee's terminal compensation will be contributed by the District to the 401(a) plan at termination, retirement or resignation at 100% of total compensation, as defined in the 401(a) Plan Document under Section 5.03 (b), or the Internal Revenue Service maximum contribution limit, whichever is lower: In no case will the total 401(a) contribution be in excess of Internal Revenue Code mandated limits in force at the time of termination, retirement or resignation. Any other outstanding vacation or sick leave and earned overtime due the employee at the time of termination, retirement, or resignation will be calculated and issued to the employee with the final paycheck. All unused accumulated sick leave at the time of retirement is credited as longevity upon retirement. 9 XXII SALARY CONTINUANCE It shall be 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 percent (70 %) 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 (6) 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 twenty -one (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. XXIII VEHICLES /MILEAGE Those employees driving their personal vehicle on District business, including Department Directors, shall be reimbursed by the District at the rate allowed by the Internal Revenue Service without tax consequences. XXIV SAFETY EQUIPMENT Personal safety equipment required by the employee to perform his /her job duties will be provided by the District. The employee will be entitled to safety shoes and safety glasses in accordance with the applicable District policies and standards. XXV EMPLOYEE ASSISTANCE PROGRAM (EAP) The District Employee Assistance Program shall be provided by the District to the employee. XXVI CELLULAR PHONES Employees are reimbursed for their work - related use of personal cell phones, including emergency response in accordance with Board Policy 10 ' "Manager • ne Reimbursement Policy. . . the M GeReral Manager and ratifiGatien by the Board-. XXVII SAVINGS If any provision of this Memorandum of Understanding should be held invalid or outside the scope of bargaining by operation of law or by the final judgment of any court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby. XXVIII SIGNATURES TO AGREEMENT Entered into this 1 st day of November, 2012 subject to the adoption by the Board of Directors of Central Contra Costa Sanitary District. CENTRAL CONTRA COSTA MANAGEMENT GROUP SANITARY DISTRICT ELAINE R. BOEHME EDWARD KREISBERG, ESQ MICHAEL SCAHILL STEPHANIE KING 11