Reso 1639 05/2023RESOLUTION NO. 1639
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLECITOS WATER DISTRICT ADOPTING THE MEMORANDUM OF
UNDERSTANDING FOR EMPLOYEES IN THE GENERAL EMPLOYEES' UNIT FOR
FISCAL YEARS 2023/24, 24/25, 25/26, 26/27; AND
APPROVING THE PAY SCHEDULE
WHEREAS, pursuant to the provisions of the Meyers Milias Brown Act, the
Vallecitos Water District (District) and the Vallecitos Water District Employees Association
(Association) met and conferred on issues involving wages, hours, and working
conditions and reached a four-year agreement which is effective on July 1, 2023, and
ends June 30, 2027, the terms of which are set forth in a Memorandum of Understanding
(MOU); and
WHEREAS, the Board of Directors approved authorized positions and position
changes in the budget for Fiscal Year 2023/24; and
WHEREAS, the District Pay Ranges have been amended to incorporate the
agreed upon terms of the MOU, and also to apply the same increases for Management
and Confidential employees;
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 Covering the
Employees' Unit of Representation for Fiscal Years 2023/24, 2024/25, 2025/26, and
2026/27 as agreed and signed on May 18, 2023, by the Employees Association
Representative attached hereto as Exhibit "A"; and,
SECTION 2: DISTRICT PAY RANGES. The Board of Directors does hereby
approve the Vallecitos Water District Pay Ranges, attached hereto as Exhibit "B".
Resolution No. 1639 Page 2
PASSED, APPROVED AND ADOPTED by the Board of Directors of the Vallecitos
Water District at a regular meeting held on the 17th day of May, 2023, by the following roll
call vote:
AYES: BOYD-HODGSON, ELITHARP, GROSET, HERNANDEZ
NOES:
ABSTAIN:
ABSENT: PENNOCK
"James ern' ndez, Presiden
Board o Directors
Vallecitos Water District
ATTEST:
Glenn Pruim, Secretary
Board of Directors
Vallecitos Water District
Resolution No. 1639 Exhibit "A" Pa
MEMORANDUM OF UNDERSTANDING BETWEEN
THE VALLECITOS WATER DISTRICT
AND
THE VALLECITOS WATER DISTRICT EMPLOYEES' ASSOCIATION
COVERING THE EMPLOYEES' UNIT OF REPRESENTATION
FOR FY 2023/24, FY 2024/25, FY 2025/26 AND FY 2026/27
This Memorandum of Understanding (MOU) between the Vallecitos Water District
(District) and the Vallecitos Water District Employees Association (Association) is made after
meeting and conferring in good faith on wages, benefits and other terms and conditions of
employment that cover the employees in the general employees' unit of representation. It is
also understood that this MOU does not modify or change any terms and conditions of
employment, except expressly identified and modified in this MOU.
This MOU 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 the Board of Directors formally approves this MOU.
IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
I. EFFECTIVE DATE: The provisions of this MOU shall be effective July 1, 2023,
and shall remain in effect until June 30, 2027, except as otherwise specified in this MOU.
II. RENEGOTIATION: In accordance with Government Code Section 3505, either
party may initiate good faith negotiations of a successor MOU. That party shall serve upon the
other no sooner than November 1, 2026, its written request to commence negotiations. Upon
receipt of such written notice, negotiations shall begin thereafter no later than November 15,
2026. A first written proposal shall be served upon the other no later than January 31, 2027.
III. COST OF LIVING SALARY ADJUSTMENT (COLA): The Cost of Living Salary
Adjustment (COLA) for each fiscal year of the MOU shall be based on the San Diego Consumer
Price Index for All Urban Consumers (CPI -U), percent change for the second half of the
preceding calendar year, subject to the caps and terms set forth below. If the percent change
of the designated CPI -U in any Fiscal Year during this contract is greater than the COLA cap
specified for that corresponding year, the percentage amount over the cap shall roll over to the
next year(s) and shall be added to the CPI -U for the next year to determine the COLA, as long
as the total COLA does not exceed the year's cap. The rollover shall not be limited to the next
Fiscal Year and may aggregate over the term of the MOU. Any remaining aggregate will be
applied to a COLA Overage Bank (Item IV). This provision is in effect only during the term of
this MOU, and no rollover of CPI-U/COLA will occur upon the expiration of this MOU.
A. Fiscal Year 2023/24: The District shall provide a COLA of 5% based on
CPI -U effective the first full pay period in July 2023. An initial 2.3% rollover will
be deposited into the COLA Overage Bank (Item IV).
B. Fiscal Year 2024/25: Effective the beginning of the first full pay period in
July 2024, the District shall provide a COLA in an amount not to exceed 5.0%.
Resolution No. 1639 Exhibit "A" Page 2
C. Fiscal Year 2025/26: Effective the beginning of the first full pay period in
July 2025, the District shall provide a COLA in an amount not to exceed 4.0%.
D. Fiscal Year 2026/27: Effective the beginning of the first full pay period in
July 2026, the District shall provide a COLA in an amount not to exceed 4.0%.
IV. COLA OVERAGE BANK: Any COLA rollover remaining as of June 30, 2026, as
referenced above, will be paid out as a one-time non-PERSable lump sum amount to eligible
employees the first full pay period in July 2026, under the following conditions: The
accumulated rollover percentage is capped at 10%, and the total rollover percentage will then
be reduced by 50% and a lump sum paid to employees based on their salary on the date of
payout. If the designated CPI -U is not available for use during the term of the MOU, the parties
agree to meet and confer over the index to be used to determine COLA.
To be eligible, employees must be employed on the date of the payout; must have successfully
passed their introductory employment period; and must not be on a Performance Improvement
Plan at the time of the payout, subject to review by the General Manager at the request of the
affected employee.
Eligible employees hired after June 30, 2023, will receive a prorated share of the payout based
on the percentage of fully -completed pay periods they were employed between July 1, 2023
through June 30, 2026.
V. BASE MEDICAL CONTRIBUTIONS: Base medical contributions shall be
provided by the District for all eligible employees as shown in Table 1 below.
The monthly contributions shown in Table 1, include an annual 7.5% escalation effective
January 1 of each year through June 30, 2027, and establish the monthly maximum the District
will pay on behalf of the employee. If premiums increase beyond those established in Table 1,
the employee shall be responsible for the additional costs as a monthly payroll deduction. If
premiums are below those established in Table 1, the employee is not entitled to overage.
VI. FLOATING HOLIDAYS: The District will provide one additional floating holiday
per year for a total of 36 hours per fiscal year.
Base Medical Contributions — Table 1
Calendar
Year
Current
2023
2024
2025
2026
2027
Individual
$992
$1,066
$1,146
$1,232
$1,324
Couple
$1,965
$2,112
$2,440
$2,623
Family
$2,771
$2,979 ::L:2,270
$3,202
$3,442
$3,700
The monthly contributions shown in Table 1, include an annual 7.5% escalation effective
January 1 of each year through June 30, 2027, and establish the monthly maximum the District
will pay on behalf of the employee. If premiums increase beyond those established in Table 1,
the employee shall be responsible for the additional costs as a monthly payroll deduction. If
premiums are below those established in Table 1, the employee is not entitled to overage.
VI. FLOATING HOLIDAYS: The District will provide one additional floating holiday
per year for a total of 36 hours per fiscal year.
Resolution No. 1639 Exhibit "A" Page 3
VII. HOLIDAY ADDITION: The District will provide one additional floating holiday
when the District -observed holidays for Christmas Day 2025 and New Year's Day 2026 fall on
Thursdays. The additional floating holiday must be used on December 26, 2025, or January
2, 2026, when District offices will be closed.
VIII. COMPENSATION STUDY: The results of the 2022 Classification and
Compensation Study shall be implemented and effective the first full pay period in July 2023.
In accordance with Exhibit A, implementation will bring classifications in line with the market
average (approximately within 2.5%); positions found to be above market average will not be
Y -rated. A new Compensation study for 2026 shall not be required; however, the District
reserves the right to conduct a study prior to January 2027, with the goal to meet and confer
on implementation during negotiations for a successor MOU. The Employee Association also
may request the District to conduct a new study, which must be submitted prior to February 28,
2026, to allow the District time to budget for and conduct the study, which then will require the
District to conduct it. If a new study is conducted, the salary recommendations shall be based
on 103% of the market average. The results of the study will not be required to be implemented.
IX. DEFERRED COMPENSATION MATCH: The District shall increase the District
deferred compensation maximum by $1,000, to $3,000 beginning the first full pay period in July
2023. Eligible employees must have contributed matching funds during the calendar year. The
District shall provide contributing funds per pay period as noted below.
After the required introductory employment period, the District shall contribute matching funds
up to $3,000 per calendar year during the term of this MOU for each employee that participates
in the 457 Plan. Employees with PEPRA retirement benefits are eligible to receive $2 District
match for each $1 employee contribution, up to the $3,000 maximum District match each year.
X. EXEMPT EMPLOYEES: The following positions will be classified as "exempt"
positions: Capital Facilities Senior Engineer; Development Services Senior Engineer; Finance
Supervisor; and Chief Technology Officer. These employees are not excluded from
Association membership. This change is in accordance with the federal Fair Labor Standards
Act and reflects standard practice of other agencies. With manager approval, employees in
"exempt" positions may have more flexibility with their work schedule/hours.
XI. DUTY COMPENSATION: The District duty compensation will increase to a flat
rate of $50 per duty day starting the first full pay period in July 2023 and be adjusted annually
by the agreed upon COLA for each fiscal year (Item III) thereafter.
XII. LONGEVITY STEPS: In accordance with Exhibit B, upon reaching Step G,
employees will receive step increases each year until they reach Step I. Updated longevity
steps will be calculated so that, upon reaching Steps H or I, the employee will not receive an
increase of more than 5% of the preceding Steps G or H, respectively. Effective the first full
pay period in July 2023, employees who have already reached/passed Step G or H, will have
their salary adjusted as if the new longevity step structure had been in place at the time they
reached Step G or H.
Future compensation studies will continue to use Step G as the maximum salary for market
comparison.
Resolution No. 1639 Exhibit "A" Page 4
XIII. SPECIFIC ITEMS FOR CONTINUING NEGOTIATION: Both parties agree to
meet and confer in good faith within 60 days of the effective date of the MOU regarding Flex
Schedules, Telecommute Policy, Make Up Time (same day flex), Tuition Reimbursement
Policy (Grade C or pass), and Increase to Boot Allowance, with the intent to implement agreed-
upon changes.
XIV. CONTRACT OPEN ER/RENEGOTIATION: Both parties agree, in the event of a
severe or potentially crippling financial situation of the District at determined by the General
Manager, to re -open the MOU at the request of either party to consider modification or revision
of any provision of this MOU.
XV. 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 handbook shall be updated within 6 months of the effective date of this
MOU, to include conditions of this MOU as well as other required modifications. It will be
presented to the Board for consideration and approval as soon as possible after meet and
confer with the Association.
IN WITNESS WHEREOF, the parties have caused their authorized representatives to
execute the Memorandum of Understanding this 22 day of /err , 2023.
Ingrid Stichter Date
Employees Association Representative
VALLECITOS WATER DISTRICT
EMPLOYEES' ASSOCIATION
Glenn Pruim Da e
Employee Relations Officer
VALLECITOS WATER DISTRICT
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