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HomeMy WebLinkAbout03. Adopt Resolution No. 2023-050 outlining the employment salary and benefits of the unrepresented at-will employees’ group and rescind Resolution No. 2022-020 Page 1 of 22 Item 3. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: DECEMBER 21, 2023 SUBJECT: ADOPT RESOLUTION NO. 2023-050 OUTLINING THE EMPLOYMENT SALARYAND BENEFITS OF THE UNREPRESENTED AT-WILL EMPLOYEES' GROUP AND RESCIND RESOLUTION NO. 2022-020 SUBMITTED BY: INITIATING DEPARTMENT: TEJI OWALLEY, HUMAN RESOURCES AND OFFICE OF THE GENERAL MANAGER - ORGANIZATIONAL DEVELOPMENT HUMAN RESOURCES MANAGER Roger S. Bailey General Manager ISSUE Board of Directors' approval is required to adopt a new, revised resolution which rescinds and replaces an active resolution. BACKGROUND The benefits of the unrepresented, at-will employee group are currently set forth in Resolution No. 2022- 020. In 2023, there have been several changes to the benefits for the unrepresented at-will employees that have not yet been codified in the Resolution. Those changes are as follows: 1. The addition of Juneteenth as a District observed holiday. 2. The replacement of one of the two District "core" CalPERS medical plans with Anthem Blue Cross Traditional HMO now that Health Net SmartCare is no longer being offered by CalPERS effective January 1, 2024. 3. The deletion of Section N that provides for a registration differential for those unrepresented employees that hold a Certified Public Accountant (CPA), Professional Engineer (PE) and Land Surveyor (LS) license as long as their job classification does not require such license. This provision is no longer applicable to the unrepresented employees. December 21, 2023 Regular Board Meeting Agenda Packet- Page 18 of 461 Page 2 of 22 ALTERNATIVES/CONSIDERATIONS Do not rescind and replace Resolution No. 2022-020 to update the salary and benefits of the unrepresented, at-will classifications. FINANCIAL IMPACTS There is no financial impact upon approval of these changes as those impacts were included when Items 1 and 2 were approved by the Board of Directions earlier this year. There is no financial impact for Item 3 as no unrepresented employees are currently receiving the differential. COMMITTEE RECOMMENDATION The Administration Committee reviewed this matter at its December 5, 2023 meeting and recommended Board approval. RECOMMENDED BOARD ACTION Adopt the proposed Resolution No. 2023-050 outlining the salary and benefits for the unrepresented at- will positions, and rescind Resolution No. 2022-020. Strategic Plan re-In GOAL THREE: Workforce Diversity and Development Strategy 3- Retain skilled workers by investing in resources and opportunities for all employees to grow and thrive ATTACHMENTS: 1. Proposed Resolution Amendments 2. Proposed Resolution December 21, 2023 Regular Board Meeting Agenda Packet- Page 19 of 461 Page 3 of 22 Attachment 1 RESOLUTION NO. 2023-050XX A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT OUTLINING THE EMPLOYMENT SALARY AND BENEFITS FOR UNREPRESENTED, AT-WILL POSITIONS AND RESCINDING RESOLUTION NO. 2022-020 WHEREAS, the salary and benefits of unrepresented, at-will positions should be memorialized. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: THAT the Salaries and Benefits outlined in Exhibit A apply to all unrepresented, at-will classifications. 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. 2022- 020 is rescinded. PASSED AND ADOPTED this DATE 21st day of December 2023, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: HGGket+ L a iritzeR nAGGill DiIeGki Williams NOES: Members: None ABSENT: Members: done Barbara D. Hockett President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young, CPMC, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: eaten L. A;m, E�sg.J. Leah Castella, Esq. Counsel for the District December 21, 2023 Regular Board Meeting Agenda Packet- Page 20 of 461 Page 4 of 22 RESOLUTION iTION NO 2023XX EXHIBIT A SALARY AND BENEFITS FOR UNREPRESENTED AND AT-WILL EMPLOYEES A. GENERAL AND MERIT INCREASES - Effective April 18, 2022, April 18, 2023, April 18, 2024, April 18, 20251 and April 18, 2026, 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. Effective April 18, 2022, the adjustment shall be a minimum of 2.00 percent and a maximum of 5.00 percent. Effective April 18, 2023, April 18, 2024, April 18, 20251 and April 18, 2026, the adjustment shall be a minimum of 2.00 percent and a maximum of 3.75 percent. Employees will normally receive a salary step increase every 12 months until they reach the top of their range. 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 Central Contra Costa Sanitary District (District), they will be paid for any earned vacation time not used. Payment of accumulated vacation time above the maximum annual accrual shall occur automatically on the anniversary date on which the time would be lost. An employee may request a payment of the cash equivalent of vacation accruals subject to the following: 1. Employee must make an irrevocable election before the end of each calendar year to either (a) receive payment in the following calendar year of the cash equivalent of all or a portion of the vacation hours that will accrue during the following calendar year, or (b) to take those vacation hours as paid vacation Page 1 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 21 of 461 Page 5 of 22 during the following calendar year. Elections must be made every year and will not carry over from one calendar year to the next. If an employee fails to make an election, the employee will be deemed to have irrevocably elected to take all of the vacation hours that will accrue in the following calendar year as paid time off. 2. The election must designate the number of vacation hours being requested for payment. The payment cannot exceed the value of the maximum vacation accruals based on the employee's years of service in the year of payment up to a maximum of one hundred sixty (160) hours. An employee may request cash payment of the value of vacation hours the employee elected to convert to cash compensation before the end of the previous calendar year at any time during the current calendar year provided that no cash payment for the value of vacation hours will be made unless and until the vacation hours have been earned and accrued as detailed in the above accrual schedule. 3. Vacation hours an employee elects to convert to cash compensation in the following calendar year as described above will be converted to cash compensation based on the employee's hourly rate of pay in effect at the time of the payment request. 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 limit. The District shall augment the sick leave policy with an incentive benefit using the following schedule: Years of Service Pay-Off Credit at Pay-Off Credit at Termination 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: 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. Page 2 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 22 of 461 Page 6 of 22 D. ADMINISTRATIVE LEAVE - Eighty (80) hours per year. These administrative leave hours will be credited to each employee's account on April 18'" of each year. E. HOLIDAYS = Fourteen T"�T(143) paid holidays per year. F. MEDICAL INSURANCE - 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. 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 Anthem Blue Cross Traditional HMO Health et SmartGare 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 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 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 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 CaIPERS 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: Fully 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 - The District shall provide a retirement program for all employees administered by the Contra Costa County Employees Retirement Association (CCCERA). Employees are responsible for paying the full share of the normal costs associated with the employee share as calculated by CCCERA. a. 401(A) PLAN - District's contribution in an amount equal to that which normally would have been contributed to Social Security. In addition, each employee eligible to participate in the District's qualified money purchase pension plan (401(a) Plan) who is described in one of the categories described below will, effective April 18, 2022, automatically contribute to the 401(a) Plan by Page 3 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 23 of 461 Page 7 of 22 mandatory pretax salary reduction the amount specified below for the category. Category (Based on Attributes on Resolution Date) Amount Annual compensation exceeding $200,000, but not 8% of base exceeding $250,000 pay each pay period. Annual compensation exceeding $250,000 12.5% of base pay each pay period. Annual compensation of less than $200,000 2% of base pay each pay period. Each contribution will be deducted ratably from the employee's compensation each payroll period during the Plan Year (or the remainder of the Plan Year in which this resolution is adopted). The District designates all mandatory employee salary reduction contributions to the 401(a) Plan as pick-up contributions and will pick up those contributions in accordance with section 414(h)(2) of the Internal Revenue Code (Code) and all guidance issued thereunder as follows: 1. This resolution applies to all contributions that are required to be made by any employees of the District as members of the 401(a) Plan, on a regular payroll deduction basis and that are reported to the 401(a) Plan and credited to employee accounts. 2. Although designated as employee contributions, and deducted from employees' compensation, the contributions shall, for tax purposes, be characterized as "picked up" by the District in accordance with Code section 414(h)(2), and shall be treated as paid by the District in lieu of contributions by the employee. 3. Employees shall not have the option of choosing, directly or indirectly, to receive the contributions instead of having them made to the 401(a) Plan. 4. The District shall pay the contributions designated as employee contributions from the same source of funds as used in paying salary. 5. Employee contributions that are picked up in accordance with this resolution shall result in the tax deferral of these contributions to the extent provided under the Code, Treasury regulations and other guidance issued thereunder. Page 4 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 24 of 461 Page 8 of 22 6. This resolution establishes and adopts the District's pick-up practices in accordance with Revenue Ruling 2006-43. 7. The District shall comply with all reporting, contribution, and other administrative requirements established by the 401(a) Plan with respect to all employees whose contributions are picked up in accordance with this resolution. I. RETIREE MEDICAL, VISION AND DENTAL COVERAGE Retiree Benefits: Employees are eligible for retiree medical benefits through CalPERS 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 Employees' Retirement Association. For employees who do not meet the eligibility requirements as outlined in Medical Tiers II and III, the District will only pay the minimum employer contribution that CalPERS requires toward medical coverage upon retirement from the District. The District will pay the CalPERS minimum required contribution amount toward a retiree's health care coverage directly to CalPERS in accordance with CalPERS requirements. For those employees that are eligible for Medical Tiers II or III benefits, the District will pay the CalPERS minimum required contribution amount toward the employee's health care coverage directly to CalPERS in accordance with CalPERS requirements. The District will contribute any amount that exceeds the CalPERS minimum required contribution, in accordance with the employees' tier, to a retiree-only Health Reimbursement Account. MEDICAL 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 CalPERS requires, if the employee meets the "Rule of 65." For employees hired after May 1, 198-5 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 a 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 CalPERS, 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 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 Page 5 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 25 of 461 Page 9 of 22 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, vision, and dental plan premiums until the eligible dependent's 55' birthday. At age 65, the District will pay 50 percent of a retiree's eligible dependent's core medical, dental, and vision plan premiums. MEDICAL 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 10 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 Medical 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 Anthem Blue Cross Traditional HMO 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 continue to be covered by the District's medical and dental plans in accordance with the Medical 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 (Medical Tiers II and III) at age 65. For Medical Tier II Page 6 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 26 of 461 Page 10 of 22 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 55t" birthday. For Medical 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. Health Reimbursement Arrangement: All active Tier III employees will, effective April 18, 2022, automatically contribute 7% of base salary by mandatory pretax salary reduction each pay period to a health reimbursement arrangement (HRA) to be used to reimburse post-employment health insurance premiums. J. DISABILITY PLAN - Employees shall pay the premiums for the Long-Term Disability Program. K. 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. L. CAFETERIA PLAN - $425 per month. Yearly honofitS will be GaIG Uloted oc r,f long lord 1 of oonh door M. 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 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. Page 7 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 27 of 461 Page 11 of 22 N. REGISTRATION DIFFERENTIA _ Fide nor cal ? to ernpley�za e Land , er Certified P b"E; AnnnUntant in nncitinn not requiring s inh registration nr Iir aN. 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. LONGEVITY COMPENSATION - An additional 2.5 percent salary increase after 10 years or more of continuous 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. 4P. 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. EMPLOYEE ASSISTANCE PROGRAM (EAP) - Provided by the District to the employee. Page 8 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 28 of 461 Page 12 of 22 APPENDIX A - CLASSIFICATIONS COVERED BY THIS RESOLUTION Deputy General Manager Director of Engineering and Technical Services Director of Finance and Administration Director of Operations Human Resources and Organizational Development Manager Internal Auditor Page 9 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 29 of 461 Page 13 of 22 Attachment 2 RESOLUTION NO. 2023-050 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT OUTLINING THE EMPLOYMENT SALARY AND BENEFITS FOR UNREPRESENTED, AT-WILL POSITIONS AND RESCINDING RESOLUTION NO. 2022-020 WHEREAS, the salary and benefits of unrepresented, at-will positions should be memorialized. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: THAT the Salaries and Benefits outlined in Exhibit A apply to all unrepresented, at-will classifications. 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. 2022-020 is rescinded. PASSED AND ADOPTED this 21st day of December 2023, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Barbara D. Hockett President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young, CPMC, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: J. Leah Castella, Esq. Counsel for the District December 21, 2023 Regular Board Meeting Agenda Packet- Page 30 of 461 Page 14 of 22 EXHIBIT A SALARY AND BENEFITS FOR UNREPRESENTED AND AT-WILL EMPLOYEES A. GENERAL AND MERIT INCREASES - Effective April 18, 2022, April 18, 2023, April 18, 2024, April 18, 2025, and April 18, 2026, 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. Effective April 18, 2022, the adjustment shall be a minimum of 2.00 percent and a maximum of 5.00 percent. Effective April 18, 2023, April 18, 2024, April 18, 2025, and April 18, 2026, the adjustment shall be a minimum of 2.00 percent and a maximum of 3.75 percent. Employees will normally receive a salary step increase every 12 months until they reach the top of their range. 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 Central Contra Costa Sanitary District (District), they will be paid for any earned vacation time not used. Payment of accumulated vacation time above the maximum annual accrual shall occur automatically on the anniversary date on which the time would be lost. An employee may request a payment of the cash equivalent of vacation accruals subject to the following: 1. Employee must make an irrevocable election before the end of each calendar year to either (a) receive payment in the following calendar year of the cash equivalent of all or a portion of the vacation hours that will accrue during the following calendar year, or (b) to take those vacation hours as paid vacation during the following calendar year. Elections must be made every year and will not carry over from one calendar year to the next. If an employee fails to Page 1 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 31 of 461 Page 15 of 22 make an election, the employee will be deemed to have irrevocably elected to take all of the vacation hours that will accrue in the following calendar year as paid time off. 2. The election must designate the number of vacation hours being requested for payment. The payment cannot exceed the value of the maximum vacation accruals based on the employee's years of service in the year of payment up to a maximum of one hundred sixty (160) hours. An employee may request cash payment of the value of vacation hours the employee elected to convert to cash compensation before the end of the previous calendar year at any time during the current calendar year provided that no cash payment for the value of vacation hours will be made unless and until the vacation hours have been earned and accrued as detailed in the above accrual schedule. 3. Vacation hours an employee elects to convert to cash compensation in the following calendar year as described above will be converted to cash compensation based on the employee's hourly rate of pay in effect at the time of the payment request. 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 limit. The District shall augment the sick leave policy with an incentive benefit using the following schedule: Years of Service Pay-Off Credit at Pay-Off Credit at Termination 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: 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 April 18t" of each year. Page 2 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 32 of 461 Page 16 of 22 E. HOLIDAYS — Fourteen (14) paid holidays per year. F. MEDICAL INSURANCE - 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. 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 Anthem Blue Cross Traditional HMO 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 CaIPERS 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: Fully 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 - The District shall provide a retirement program for all employees administered by the Contra Costa County Employees Retirement Association (CCCERA). Employees are responsible for paying the full share of the normal costs associated with the employee share as calculated by CCCERA. a. 401(A) PLAN - District's contribution in an amount equal to that which normally would have been contributed to Social Security. In addition, each employee eligible to participate in the District's qualified money purchase pension plan (401(a) Plan) who is described in one of the categories described below will, effective April 18, 2022, automatically contribute to the 401(a) Plan by mandatory pretax salary reduction the amount specified below for the category. Page 3 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 33 of 461 Page 17 of 22 Category (Based on Attributes on Resolution Date) Amount Annual compensation exceeding $200,000, but not 8% of base exceeding $250,000 pay each pay period. Annual compensation exceeding $250,000 12.5% of base pay each pay period. Annual compensation of less than $200,000 2% of base pay each pay period. Each contribution will be deducted ratably from the employee's compensation each payroll period during the Plan Year (or the remainder of the Plan Year in which this resolution is adopted). The District designates all mandatory employee salary reduction contributions to the 401(a) Plan as pick-up contributions and will pick up those contributions in accordance with section 414(h)(2) of the Internal Revenue Code (Code) and all guidance issued thereunder as follows: 1. This resolution applies to all contributions that are required to be made by any employees of the District as members of the 401(a) Plan, on a regular payroll deduction basis and that are reported to the 401(a) Plan and credited to employee accounts. 2. Although designated as employee contributions, and deducted from employees' compensation, the contributions shall, for tax purposes, be characterized as "picked up" by the District in accordance with Code section 414(h)(2), and shall be treated as paid by the District in lieu of contributions by the employee. 3. Employees shall not have the option of choosing, directly or indirectly, to receive the contributions instead of having them made to the 401(a) Plan. 4. The District shall pay the contributions designated as employee contributions from the same source of funds as used in paying salary. 5. Employee contributions that are picked up in accordance with this resolution shall result in the tax deferral of these contributions to the extent provided under the Code, Treasury regulations and other guidance issued thereunder. 6. This resolution establishes and adopts the District's pick-up practices in accordance with Revenue Ruling 2006-43. Page 4 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 34 of 461 Page 18 of 22 7. The District shall comply with all reporting, contribution, and other administrative requirements established by the 401(a) Plan with respect to all employees whose contributions are picked up in accordance with this resolution. I. RETIREE MEDICAL, VISION AND DENTAL COVERAGE Retiree Benefits: Employees are eligible for retiree medical benefits through CalPERS 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 Employees' Retirement Association. For employees who do not meet the eligibility requirements as outlined in Medical Tiers II and III, the District will only pay the minimum employer contribution that CalPERS requires toward medical coverage upon retirement from the District. The District will pay the CalPERS minimum required contribution amount toward a retiree's health care coverage directly to CalPERS in accordance with CalPERS requirements. For those employees that are eligible for Medical Tiers II or III benefits, the District will pay the CalPERS minimum required contribution amount toward the employee's health care coverage directly to CalPERS in accordance with CalPERS requirements. The District will contribute any amount that exceeds the CalPERS minimum required contribution, in accordance with the employees' tier, to a retiree-only Health Reimbursement Account. MEDICAL 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 CalPERS requires, if the employee 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 a 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 CalPERS, 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 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 Page 5 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 35 of 461 Page 19 of 22 exception that the District will only pay for the full cost of an eligible dependent's medical, vision, and dental plan premiums until the eligible dependent's 55tn birthday. At age 65, the District will pay 50 percent of a retiree's eligible dependent's core medical, dental, and vision plan premiums. MEDICAL 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 10 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 Medical Tier III employees hired on or after April 183 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 Anthem Blue Cross Traditional HMO . 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 Medical 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 (Medical Tiers II and III) at age 65. For Medical 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 Page 6 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 36 of 461 Page 20 of 22 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 55t" birthday. For Medical 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. Health Reimbursement Arrangement: All active Tier III employees will, effective April 18, 2022, automatically contribute 7% of base salary by mandatory pretax salary reduction each pay period to a health reimbursement arrangement (HRA) to be used to reimburse post-employment health insurance premiums. J. DISABILITY PLAN - Employees shall pay the premiums for the Long-Term Disability Program. K. 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. L. CAFETERIA PLAN - $425 per month. M. 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 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. N. 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 Page 7 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 37 of 461 Page 21 of 22 Wastewater Treatment Plant Operator's Certificate. The registration and/or certificate must be a requirement of the employee's classification. O. LONGEVITY COMPENSATION - An additional 2.5 percent salary increase after 10 years or more of continuous 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. P. 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. Q. EMPLOYEE ASSISTANCE PROGRAM (EAP) - Provided by the District to the employee. Page 8 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 38 of 461 Page 22 of 22 APPENDIX A - CLASSIFICATIONS COVERED BY THIS RESOLUTION Deputy General Manager Director of Engineering and Technical Services Director of Finance and Administration Director of Operations Human Resources and Organizational Development Manager Internal Auditor Page 9 of 9 December 21, 2023 Regular Board Meeting Agenda Packet- Page 39 of 461