Reso 1496 06/2016RESOLUTION NO. 1496
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLECITOS WATER DISTRICT
AMENDING RULES, REGULATIONS AND PROCEDURES,
SALARY RANGES AND OTHER CONDITIONS OF
EMPLOYMENT FOR EMPLOYEES OF THE DISTRICT
FOR FISCAL YEAR 2016/17, 2017/18, 2018/19
WHEREAS, the Board of Directors of the Vallecitos Water District (District) desires
to amend the Rules, Regulations and Procedures of the District for Salary Ranges and
other Conditions of Employment for Employees of the District;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Vallecitos
Water District as follows:
SECTION 1: MEMORANDUM OF UNDERSTANDING.
The Board of Directors does hereby adopt the Memorandum of Understanding
between the Vallecitos Water District and the Vallecitos Water District Employees'
Association for Fiscal Years 2016/17, 2017/18, 2018/19 as approved by the Employee's
Association on May 31, 2016. The Memorandum of Understanding is attached hereto as
Exhibit "A" and incorporated herein by reference.
PASSED, APPROVED AND ADOPTED by the Board of Directors of the Vallecitos
Water District at a regular meeting held on the 15th day of June, 2016 by the following roll
call vote:
AYES: ELITHARP, EVANS, HERNANDEZ, SANNELLA
NOES:
ABSTAIN:
ABSENT: MARTIN
Michael A. Sannella, President
Board of Directors
Vallecitos Water District
ATTEST:
Tom Scaglione, Secrejary
Board of Directors
Vallecitos Water District
Resolution No. 1496 Exhibit "A" Page 1
MEMORANDUM OF UNDERSTANDING BETWEEN
THE VALLECITOS WATER DISTRICT
AND
THE VALLECITOS WATER DISTRICT EMPLOYEES' ASSOCIATION
COVERING THE EMPLOYEES' UNIT OF REPRESENTATION
FOR FY 2016/17, FY 2017/18, AND FY 2018/19
This Memorandum of Understanding (MOU) between the Vallecitos Water District
(District) and the Vallecitos Water District Employees Association (Association) is effective as
of July 1, 2016, and is made after meeting and conferring in good faith on wages, benefits
and other terms and conditions of employment that covers the employees in the general
employees' unit of representation. It is also understood that this MOU does not modify or
change any previously negotiated MOU's and agreed upon benefits or items unless expressly
identified and modified in this MOU.
This Memorandum of Understanding constitutes a mutual recommendation to be
submitted to the District's Board of Directors and shall not be binding upon the parties' hereto
in whole or in part unless and until said Board of Directors formally approves said
Memorandum of Understanding.
IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
I. RENEGOTIATION: In accordance with Government Code Section 3505, either
party may initiate good faith negotiations of a successor Memorandum of Understanding.
Either party shall serve upon the other no sooner than February 15, 2019, its written request
to commence negotiations, as well as its full and entire written proposal. Upon receipt of
such written notice and proposal, negotiation shall begin thereafter no later than March 1,
2019.
II. COST OF LIVING SALARY ADJUSTMENT (COLA): The adjustment for each
fiscal year shall be based on the San Diego Consumer Price Index for All Urban Consumers
(CPI -U), or its successor document, for the preceding calendar year. The COLA is based on
the percent change in the CPI -U for the calendar year. The District shall provide a rollover of
the percentage above the caps listed below, if invoked, from the previous year to the
following year of this MOU as long as the combined percentage does not exceed the
subsequent year's cap.
A. Fiscal Year 2016/17: The COLA for 2016/17 was 2.4%. The effective date of
this COLA increase shall be retroactive to the first full pay period in March 2016.
B. Fiscal Year 2017/18: On or about March 2017, when the CPI -U information
becomes available, the District shall provide a COLA increase in salary in an
amount not to exceed 3.0%.
C. Fiscal Year 2018/19: On or about March 2018, when the CPI -U information
becomes available, the District shall provide a COLA increase in salary in an
amount not to exceed 3.5%.
Resolution No. 1496 Exhibit "A" Paae 2
III. HOLIDAY ADDITION: During Fiscal Year 2018/19, employees shall utilize one
nine -hour floating holiday for Monday, December 24, 2018, the day before Christmas, which
will close the District's offices to regular business.
During Fiscal Year 2018/19, the District shall provide one additional nine -hour floating
holiday for Monday, December 31, 2018, the day before New Year's Day, which will close the
District's offices to regular business.
IV. BASE MEDICAL PREMIUM: Base Medical premiums will be provided at the
discretion of the District for all full time employees, spouse and legal dependents as shown in
Table 1 below.
The monthly premiums shown in Table 1, include an annual 7.5% escalation effective
January 1 of each year through June 30, 2019, and establish the monthly maximum the
District will pay on behalf of the employee, spouse and legal dependents. If premiums
increase beyond those established in Table 1, the employee shall be responsible for the
additional costs as a monthly payroll deduction.
V. PERS CONTRIBUTION: All employees hired before January 1, 2013 are
currently paying 50% of the employee's share of PERS (4% of 8%) for the 3% at 60 benefit
formula. All employees hired before January 1, 2013 and new employees hired after January
1, 2013, who are determined by CalPERS to be Classic Members also in the 3% at 60 benefit
formula, shall be responsible for the remaining portion of the employee's share (4%) in
accordance with Table 2.
Base Medical Premiums — Table 1
Calendar Year
Current 2016
2017
2018
2019
2018/19
-Employee contribution
4%
1 %
1 %
Individual
$598
$643
$691
$743
Couple
$1,184
$1,273
$1,368
$1,471
Family
$1,670
$1,795
$1,930
$2,075
The monthly premiums shown in Table 1, include an annual 7.5% escalation effective
January 1 of each year through June 30, 2019, and establish the monthly maximum the
District will pay on behalf of the employee, spouse and legal dependents. If premiums
increase beyond those established in Table 1, the employee shall be responsible for the
additional costs as a monthly payroll deduction.
V. PERS CONTRIBUTION: All employees hired before January 1, 2013 are
currently paying 50% of the employee's share of PERS (4% of 8%) for the 3% at 60 benefit
formula. All employees hired before January 1, 2013 and new employees hired after January
1, 2013, who are determined by CalPERS to be Classic Members also in the 3% at 60 benefit
formula, shall be responsible for the remaining portion of the employee's share (4%) in
accordance with Table 2.
The off -set noted in Table 2 is a one-time lump sum payment for all employees hired
before January 1, 2013 and new employees hired after January 1, 2013, who are determined
by CalPERS to be Classic Members also in the 3% at 60 benefit formula, and will be included
in the first full pay period after July 1, 2016. As this payment is not a salary increase, it does
not adjust the normal salary of the employee and is not reportable compensation for PERS
Current
Employees PERS Contribution — Table 2
Fiscal Year
2015/16
2016/17
2017/18
2018/19
-Employee contribution
4%
1 %
1 %
2%
Total employee contribution
4%
5%
6%
8%
Total employer contribution
4%
3%
2-%
0%
Lump j Sum Payment as Off-
set
_
°
/° 0.5
0.5%
1 %
The off -set noted in Table 2 is a one-time lump sum payment for all employees hired
before January 1, 2013 and new employees hired after January 1, 2013, who are determined
by CalPERS to be Classic Members also in the 3% at 60 benefit formula, and will be included
in the first full pay period after July 1, 2016. As this payment is not a salary increase, it does
not adjust the normal salary of the employee and is not reportable compensation for PERS
Resolution No. 1496 Exhibit "A" Paqe 3
retirement benefits. This one-time lump sum payment will be reported as part of annual
compensation on IRS Form W-2. If the employee chooses, the one-time lump sum payment
may be deposited into the employee's 457 Deferred Compensation Plan as pre-tax income to
the extent that total 457 plan deposits (the deposit amount within this provision of the MOU
plus the deposit referenced in Section VIII plus employee contributions) do not exceed the
maximum allowed by the Internal Revenue Code.
VI. ADDITIONAL FLOATING HOLIDAY: The District will provide one additional
nine -hour floating holiday per year effective the beginning of the 2016/17 fiscal year.
VII. CLASSIFICATION AND COMPENSATION STUDY: The results of the current
Classification and Compensation Study will be effective at 103% for the first full pay period in
July 2016.
District will complete a new Classification and Compensation Study prior to March
2019, with the goal of being completed prior to good faith negotiations of a successor
Memorandum of Understanding. The salary recommendations for the class and comp study
will be based on 103% of the market average.
VIII. DEFERRED COMPENSATION MATCH: The District will provide a matching
contribution beginning the first full pay period in July 2016, as noted below for employees that
participate in and contribute to a 457 Deferred Compensation Plan. The District will provide
contributing funds per pay period up to the maximum noted below:
After the required introductory employment period, the District will contribute matching
funds up to $1,000 per year for each employee that participates in a 457 Plan. Eligible
employees must have contributed matching funds during the calendar year. If an employee's
457 Plan contributions have met the Internal Revenue Service (IRS) maximum contribution
limits (set each year), the District will provide the employee a direct lump sum payment of up
to $1,000 to be included on Form W-2 as annual compensation and not reportable as PERS
compensation.
IX. VACATION SELL BACK: Employees shall be allowed to sell back up to 40
hours of vacation time annually, provided the employee has used a minimum of one week's
vacation (40 -hours) in the previous year, under an unforeseen hardship or emergency
approved at the discretion of the General Manager.
X. OTHER POST EMPLOYMENT BENEFITS (OPEB)•
The following addition is made to the OPEB benefit and is provided through the
Association of California Water Agency's (ACWA) as a benefit available to the District:
Qualified employees that retire on or after July 1, 2016, may elect to enroll eligible
dependent children in one of the District's group medical insurance plans, at their own cost.
Dependent children may only be enrolled if the qualified employee is also enrolled. Base
medical premiums are not provided by the District for dependent children. Premiums for
dependent children shall be collected monthly through a billing agent of the District. Failure
Resolution No. 1496 Exhibit "A" Paae 4
to pay premiums for dependent children may result in termination of medical benefits
provided by the District for dependent children.
The following correction is made to the OPEB benefit:
The percentage of the Medical Premium paid for a Qualified Employee that is hired
before July 1, 2013, will be provided OPEB retirement benefits in accordance with Table 3 -.
OPEB benefits for years five through ten shall be prorated on a yearly basis (approximately
10% per full year of service). Table 3 shows the corrected benefits from 6-10 years to 5-10
years:
Table 3 (Percentage of OPEB Premium Payment)
Years of Service Employee Spouse
<5 years 0% 0%
5-10 years 50-100% 50-100%
XI. CONTRACT OPENER/RENEGOTIATION: Both parties agree, in the event of a
severe or potentially crippling financial situation, to re -open the MOU at the request of either
party to consider modification or revision of any provision of this MOU.
XIII. EMPLOYEE HANDBOOK: All items directly affecting employee compensation,
education reimbursement, personal protective equipment allowances or duty pay are subject
to meet and confer and may not be changed without future consideration as part of a
successor MOU.
The employee hand book shall be updated to include conditions of this MOU as well
as other required modifications and presented to the Board for consideration and approval
within 60 working days from the date of approval of this MOU.
IN WITNESS WHEREOF, the parties have caused their authorized representatives to
execute the Memorandum of Understanding this 15th day of June, 2016.
Dennis Richardson Date
Employees Association Representative
Tom Scaglione Date
Employee Relations Officer
VALLECITOS WATER DISTRICT