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HomeMy WebLinkAbout02. Consider approval of tentative agreement with Management Group and provide direction on modifying MOU Page 1 of 4 Item 2. CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: SEPTEMBER 13, 2018 SUBJECT: CONSIDER APPROVAL OF A TENTATIVE AGREEMENT WITH THE MANAGEMENT GROUPAND PROVIDE DIRECTION ON MODIFICATION OF THE MOU TO BE RETURNED FOR BOARD APPROVAL SUBMITTED BY: INITIATING DEPARTMENT: TEJI O'MALLEY, HUMAN RESOURCES SECRETARYOF THE DISTRICT MANAGER ANN SASAKI, DEPUTY GENERAL MANAGER ISSUE The Management Group ratified a tentative agreement with the District on August 30, 2018. Board approval is required to incorporate the terms of the tentative agreement into a Memorandum of Understanding (MOU)that will be brought to the Board at a future meeting for formal ratification. BACKGROUND Representatives of the Board and the Management Group have met numerous times since April 2017 in negotiations for a successor MOU to the existing MOU that expired on December 17, 2017. The parties worked to achieve a tentative agreement that balanced the needs of the District and the employees and agreement was reached on the terms listed in Attachment 1. These terms along with all tentative agreements signed to date, listed in Attachment 2, will form the basis of the new successor MOU. The first wage increase shall be effective retroactively to April 18, 2018. The final language, incorporating these changes into the successor MOU will be brought to the Board at a future date for final adoption. ALTERNATIVES/CONSIDERATIONS None. FINANCIAL IMPACTS Taking into consideration the projected savings from switching to CalPERS Healthcare, the proposed net cost impact over the proposed term of the contract (if CPI reaches the maximum cap of 3.75% in years 2019 and 2020 and 3.5% in 2021) is a savings of approximately$48,000. September 13, 2018 Special Board Meeting Agenda Packet- Page 8 of 11 Page 2 of 4 COMMITTEE RECOMMENDATION This was not reviewed by a Committee. RECOMMENDED BOARD ACTION Approve the tentative agreement with the Management Group and provide direction on modification of the Memorandum of Understanding (MOU)to be returned to the Board at a future date for final approval and adoption. ATTACHMENTS: 1. Proposed Tentative Agreement 2. List of signed Tentative Agreements September 13, 2018 Special Board Meeting Agenda Packet- Page 9 of 11 Page 3 of 4 Central Contra Costa Sanitary District and Management Group Negotiations 2018 Tentative Agreement August 28, 2018 1. Term of Contract: The term of the Memorandum of Understanding shall be four years, December 18, 2017 through December 17, 2021 2. Health Care: Same as proposal (District Proposal #4 and #6), provided to the Management Group on September 18, 2017, except employee cost sharing is eliminated: a. The District will implement CalPERS Healthcare b. No cost sharing by employees c. Tiers shall remain as stated in the existing MOU. d. Adopt the PEMCHA minimum vesting schedule for active and retiree healthcare 3. Wage increase: Effective upon ratification of the MOU by the Management Group and adoption by the Board, wages shall be adjusted by 3.6% retroactively to April 18, 2018. Effective April 18, 2019, April 18, 2020 and April 18, 2021 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 1.75% and a maximum of 3.75% (April 2019 and April 2020) and 1.75% to 3.5% (April 2021) 4. Sick Leave Incentive: All employees hired or promoted into the Management Group on or after December 18, 2017 shall be subject to the following provision: 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 CCCERA as retirement service credit 5. The Management Group agrees to withdraw the following Management Group Proposals: Administrative leave increase from 40 hours to 80 hours • "Me-too" provision • Elimination of the carry-over of the yearly Professional Expense Reimbursement The parties accept all signed tentative agreements to date September 13, 2018 Special Board Meeting Agenda Packet's e 0 o4 P � z Page 4 of 4 Attachment 2 Signed Tentative Agreements between Central Contra Costa Sanitary District and the Management Group Deleted several classifications that are no longer represented by the Management Group ad updated classification titles. Deleted language that stated District previously paid long-term disability benefits since all employees now pay their premiums. Clarified that jury duty is compensable only if an employee reports to jury duty and is not on "stand-by". Deleted language that is now contradictory to the statute related to Pregnancy Disability Leave. Codified language to reflect that employees can now elect to have their entire Cafeteria Plan benefit in cash. (Management met and conferred with the Management Group in 2013). Added language that clarified that longevity pay requires service to be "continuous". September 13, 2018 Special Board Meeting Agenda Packet- Page 11 of 11