HomeMy WebLinkAbout03. Adopt side letters between the District and the Management Group; Management Support/Confidential Group; and AFSCME, Public Employees' Union Local #1Page 1 of 5
Item 3.
DCENTRALSAN
MEETING DATE: AUGUST 17, 2023
BOARD OF DIRECTORS
POSITION PAPER
SUBJECT: ADOPT THE SIDE LETTERS BETWEEN THE DISTRICT AND THE
MANAGEMENT GROUP; MANAGEMENT SUPPORT/CONFI DENTIAL
GROUP; AND AFSCME, PUBLIC EMPLOYEES' UNION, LOCAL #1
REGARDING THE CHANGE IN "CORE" MEDICAL PLANS FOR ALL
EMPLOYEES
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
Board approval is required to adopt any changes to a Memorandum of Understanding (MOU).
BACKGROUND
CalPERS has formally adopted the changes to their health/medical plans effective January 1, 2024. One
of the proposed changes is to eliminate the Health Net SmartCare plan within our region. This change
does impact the District as we had negotiated with the District's three bargaining units which two health
plans offered by CalPERS would be designated as our "core" plans. The District would pay up to 100% of
the premium of the highest cost core plan per the provision of the MOU.
Currently, Health Net SmartCare is the highest cost core plan. The MOUs with the Management Group,
Management Support/Confidential Group (MS/CG) and AFSCME/Public Employees Union, Local #1 all
have a provision that states that if CalPERS no longer offers one or both of the two designated core plans,
the District would be obligated to meet and confer and negotiate which plans will become core plans.
The parties have met and conferred and agreed that the Anthem Blue Cross Traditional Health
Maintenance Organization (HMO) medical plan will replace the Health Net SmartCare medical plan as one
August 17, 2023 Regular Board Meeting Agenda Packet - Page 14 of 115
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of the two core plans effective January 1, 2024, for the remaining term of the MO Us.
The attached side letters between the District and the three bargaining units codifies this agreement.
ALTERNATIVES/CONSIDERATIONS
Do not adopt the side letters. This is not recommended as the District has met and conferred and the
parties, in good faith, have reached an agreement.
FINANCIAL IMPACTS
The complete fiscal impact of this action is unknown at this time. The rates for the Health Net SmartCare
plan are not known for 2024 so no comparison can be made between the 2024 rates for the two plans.
Currently, there are 74 active employees and 13 pre -Medicare retirees that are on the Health Net
SmartCare plan and they will have to make their selections to other CalPERS plans during the upcoming
open enrollment period. Should each of those 87 subscribers elect the Anthem Blue Cross Traditional
HMO plan, the annual cost (based on 2023 rates) for medical benefits would increase by $79,427.
COMMITTEE RECOMMENDATION
This item was not reviewed by a Board committee.
RECOMMENDED BOARD ACTION
Adopt the side letters between the District and the Management Group; Management Support/Confidential
Group; and AFSCME, Public Employees' Union, Local #1 regarding the change in "core" medical plans
for all employees
Strategic Plan re -In
GOAL THREE: Workforce Diversity and Development
Strategy 2 - Engage employees and conduct labor relations in a transparent, effective and collaborative
environment, Strategy 3 - Retain skilled workers by investing in resources and opportunities for all employees to grow
and thrive
ATTACHMENTS:
1. Side Letter Agreement - Local 1
2. Side Letter Agreement- MS/CG
3. Side Letter Agreement - Management Group
August 17, 2023 Regular Board Meeting Agenda Packet - Page 15 of 115
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Attachment 1
SIDE LETTER AGREEMENT
Between
Central Contra Costa County Sanitary District
And
AFSCME/Public Employees Union, Local #1
June 27, 2023
Article IV, Section 1.1 -Health Plans
As agreed upon in the MOU between the Central Contra Costa Sanitary District (District) and
AFSCME/Public Employees Union, Local #1 (Local #1) dated April 18, 2022 through April 17,
2027, the District was obligated to meet and confer if the two designated core medical plans
(Kaiser and Health Net SmartCare) were no longer offered by CaIPERS.
Effective January 1, 2024, Ca1PERS will no longer offer the Health Net SmartCare medical plan.
The parties have met and conferred and agreed that the Anthem Blue Cross Traditional HMO
medical plan will replace the Health Net SmartCare medical plan as one of the two core plans
effective January 1, 2024 for the remaining term of this MOU.
The parties further agreed that should CalPERS not offer either of the two newly designated
core plans (Kaiser and Anthem Blue Cross Traditional HMO) the parties will meet and confer to
determine which plans will be designated as core plans.
For the District: For AFSCME/PEU, Local #1:
August 17, 2023 Regular Board Meeting Agenda Packet - Page 16 of 115
Page 4 of 5
Attachment 2
SIDE LETTER AGREEMENT
Between
Central Contra Costa County Sanitary District
And The
Management Support/Confidential Group
June 27, 2023
Article V -Benefits
As agreed upon in the MOU between the Central Contra Costa Sanitary District (District) and
the Management Support/Confidential Group (MS/CG) dated April 18, 2022 through April 17,
2027, the District was obligated to meet and confer if the two designated core medical plans
(Kaiser and Health Net SmartCare) were no longer offered by CalPERS.
Effective January 1, 2024, CalPERS will no longer offer the Health Net SmartCare medical plan.
The parties have met and conferred and agreed that the Anthem Blue Cross Traditional HMO
medical plan will replace the Health Net SmartCare medical plan as one of the two core plans
effective January 1, 2024 for the remaining term of this MOU.
The parties further agreed that should CalPERS not offer either of the two newly designated
core plans (Kaiser and Anthem Blue Cross Traditional HMO) the parties will meet and confer to
determine which plans will be designated as core plans.
For the District:
For MS/CG:
N" ha(,"
August 17, 2023 Regular Board Meeting Agenda Packet - Page 17 of 115
Page 5 of 5
110ENTRAL SAN Attachment 3
CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ. CA 94553-4392
SIDE LETTER AGREEMENT
Between
Central Contra Costa Sanitary District
And the
Management Group
dated June 27, 2023
Article VII -Medical Insurance
As stated in the current MOU between the Central Contra Costa Sanitary District (District) and
the Management Group dated December 18, 2021 through April 17, 2027, the District was
obligated to meet and confer if the two designated core medical plans (Kaiser and Health Net
SmartCare) were no longer offered by CalPERS.
Effective January 1, 2024, CalPERS will no longer be offering the Health Net SmartCare medical
plan. The parties have met and conferred and agreed that the Anthem Blue Cross Traditional
HMO medical plan will replace the Health Net SmartCare medical plan as one of the two core
plans effective January 1, 2024 for the remaining term of this MOU.
The parties further agreed that should CalPERS not offer either of the two newly designated
core plans (Kaiser and Anthem Blue Cross Traditional HMO) the parties will meet and confer to
determine which plans will be designated as core plans.
All other terms and conditions of the MOU remain the same.
or the`District:
Teji O'Malley
Human Resources and Organizational Development Manager
For the Management Group:
Edgar J. Lopez
Management Group Authorized Representative
August 17, 2023 Regular Board Meeting Agenda Packet - Page 18 of 115