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Home My WebLink About10. Approve a tentative agreement with the Management Group and provide direction on modification of the Memorandum of Understanding Page 1 of 4 Item 10. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: DECEMBER 2, 2021 SUBJECT: APPROVE THE TENTATIVE AGREEMENT WITH THE MANAGEMENT GROUP AND PROVI DE DI RECTION TO STAFF TO I NCORPORATE THE TERMS OF THE TENTATIVE AGREEMENT I NTO A SUCCESSOR MEMORANDUM OF UNDERSTANDING TO BE BROUGHT BACK TO THE BOARD INASUBSEQUENT MEETING FOR FI NAL ADOPTION SUBMITTED BY: INITIATING DEPARTMENT: TEJI O'MALLEY, HUMAN RESOURCES AND OFFICE OF THE GENERAL MANAGER - ORGANIZATIONAL DEVELOPMENT HUMAN RESOURCES MANAGER Roger S. Bailey General Manager ISSUE The Management Group has ratified the terms for a successor Memorandum of Understanding (MOU) with the District, and formal adoption of the terms by the Board of Directors is required. BACKGROUND The District currently has MOUs with three recognized bargaining units, Management Group, MS/CG, and Local One. The Management Group's current MOU will expire on December 17, 2021, and Employees' Association, Public Employees Union, Local #1 (Local #1) and MS/CG MOUs are set to expire on April 17, 2022. Pursuant to Government Code 3500-3511 and Central San's Employer-Employee Relations Ordinance (Chapter 4.24 of the District Code), the District is required to negotiate all matters related to wages, hours, and other terms and conditions of employment. Representatives of the Board and the Management Group's bargaining team have reached a tentative agreement on the terms listed in Attachment 1, which would extend all provisions in the current MOU for a five-year term with the exception of the cost-of-living adjustments (COLA)which are detailed in the December 2, 2021 Regular Board Meeting Agenda Packet- Page 85 of 176 Page 2 of 4 attachment. The new MOU will be in effect from December 18, 2021 to April 17, 2027. 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 The proposed net cost impact over the proposed term of the contract (if the CPI reaches the maximum cap of five percent in the first year and 3.75 percent in the second through fifth years) is approximately $1.7 million. COMMITTEE RECOMMENDATION This item was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION Approve the tentative agreement with the Management Group and provide direction to staff to incorporate the terms of the tentative agreement into a successor MOU to be brought back to the Board in a subsequent meeting for final adoption. Strategic Plan re-In GOAL FOUR: Workforce Development Strategy 2—Foster relationships across all levels of Central San GOAL SIX: Innovation and Optimization Strategy 2—Improve and modernize operations through technology and efficiency measures ATTACHMENTS: 1. Management Group Tentative Agreement December 2, 2021 Regular Board Meeting Agenda Packet- Page 86 of 176 Page 3 of 4 TENTATIVE AGREEMENT FOR CONTRACT EXTENSION By and Between CENTRAL CONTRA COSTA SANITARY DISTRICT And MANAGEMENT GROUP 2022-2027 Labor Contract Extension This Memorandum of Understanding("MOU")memorializes the tentative agreement between by and between Central Contra Costa Sanitary District("the District")and the Management Group. The parties have reached mutual agreement to the following_ ,which will extend the current collective bargaining agreement for five and a third years. WHEREAS,the Management Group and the District are parties to a collective bargaining agreement which is due to expire on December 17,2021;and WHEREAS, rather than engaging in extensive contract negotiations,the parties desire to enter into an agreement extending the current collective bargaining agreement until April 17,2027. NOW,THEREFORE, the parties have met and conferred and agree to the following: 1. The Management Group and the District agree that the present collective bargaining agreement, which expires on December 17, 2021, shall be extended until April 17, 2027. 2. The section entitled "General And Merit Increases" under Article IV shall be amended as follows: E fferatiye April 14 2014 employees' wages shall be adjusted b5,3.6-034. gf1'eetiye n,,,.:1 18,2019 .,R Affil 19,2020 a „leyees'wages ..hal be adjusted by the °hang° the . '! Kl3Jl"�.ZLLZI-pT 11'LV�I[Rl1�V-I3I-[Z1�i Q April,applieable with a minimum of 1.75-1,46 and a Maximum ef ,40. Effeetive Apr-it 18,2021 the minimum shallbe 1.75-07/a, ,it ., , 3 coi. Effective April 18. 2022. April 18, 2023. Arpril 18, 2024. April 18- 2025. and Allril 18- 2026, 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 FebruaEy time period prior to the a2plicable April. For the first year of the collective bargaining agreement. effective April 18 2022 if the applicable CPI is less than 2%. then the salary increase will be 2%. If the a licable CAI is wreater than 5%. then the salary increase will be 5%. For the remaining four years of the collective bargdinint; g gr�ent, if the applicable CPI is less than 2%,then the salary increase will be 2%. If the applicable CPI is greater than 3.75% then the salary increase will be 3.75%. 17922391.1 December 2, 2021 Regular Board Meeting Agenda Packet- Page 87 of 176 Page 4 of 4 The paymieR+ C+1 first wage iRearease baek t Apr-•l 18, 201 Q shall ., pb' a > > a a�»l.,to employees still empleyed eA the time the Board appFeves this MQU and shall net impeet > > or-ether-bTes :A-A of .. . �-�-----r--- pay or-eempensatien other-than wage air-eady P--" - - Bear-d— ^ + 'L. «'en + as t 4 ..«l. in the D t' +D +'en 3. The employees in the Management Group are considering a 100%employee-funded post-employment health reimbursement account plan. If the Management Group decides that they want to move forward with such a plan,upon notification,the District and the Management Group will develop and implement the plan. By the signatures below,all parties agree that the above represents their full and entire agreement with regard to the FIVE-YEAR CONTRACT EXTENSION AGREEMENT through April 17, 2027. THIS IS A TENTATIVE AGREEMENT AND SUBJECT BY RATIFICATION BY BOTH PARTIES. For CENTRAL CONTRA COSTA SANITARY DISTRICT: 112, By: Date: it /4- For MANAGEMENT GROUP: By:_ - Date: 17922391.1 December 2, 2021 Regular Board Meeting Agenda Packet- Page 88 of 176