ITEM: CONSENT CALENDAR

8. CONSIDER ADOPTION OF A MEMORANDUM OF UNDERSTANDING BETWEEN THE MONTEREY PENINSULA WATER MANAGEMENT DISTRICT AND THE MANAGEMENT STAFF BARGAINING UNIT

Meeting Date: June 21, 2004 Budgeted: Yes

Program/Line Item No.: Salary & Wages 7110; Employee Insurance 7160; Employee Retirement 7140

Staff Contact: Cynthia Schmidlin Cost Estimate: $9,040 for FY 2004-2005

$8,863 for FY 2005-2006; $17,903 Total

General Counsel Approval: Yes

Committee Recommendation: N/A

CEQA Compliance: N/A

SUMMARY: The District and the LIUNA/UPEC Local 270 have met and conferred in good faith since March 2004 regarding wages, hours, working conditions and other terms of employment for members of the Management Staff Bargaining Unit. These negotiations have resulted in an agreement that is included as Attachment 1.

Key Agreement Issues: Most articles in the current Memorandum of Understanding (MOU) have not changed. The new MOU has modified the current contract as follows:

ARTICLE 10 HEALTH BENEFITS

Medical, dental ~~(including orthodontia)~~, vision, life insurance, survivor benefit, short-term disability insurance, long‑term disability insurance, and an employee assistance plan shall be provided for all regular employees, introductory employees, and their eligible dependents. Medical insurance will also be provided to all retirees and their eligible dependents.

The District shall pay 100% of premiums for life insurance, survivor benefit, long-term disability insurance, and the employee assistance plan premiums for all regular and introductory employees. The District will also pay 50% of the premium for short-term disability insurance. Employees will be required to pay the other 50% of that premium.

The District will obtain a quote for short-term disability insurance that reduces the use of sick leave prior to entitlement to the benefit. The parties agree to reopen this agreement to discuss implementation of this benefit to be effective no sooner than 09-01-04. The increased costs of this benefit must be paid 100% by the employee.

Effective January 1, 2003, the District shall enroll employees, dependents and retirees, including Board members so-interested, in the LIUNA Special Plan III, to provide medical, dental, and vision care. The District will pay the current $567 per month composite rate for all participants during the first 12-months and pay the cost of premiums up to a maximum of $644 per month per participant for the next 6 months.

Effective July 1, 2004, the District shall contribute $797 per month per participant towards the cost of health (medical, dental and vision) premiums.

The District shall pay the following amounts to employees as an increased health premium. However, should the below designated amounts exceed the health premium increases, the excess amount shall be paid to the employee in the form of a salary increase. Any salary increase that is paid in this manner shall not be diminished by future increases in health premium costs.

January 1, 2005: $120 per month

January 1, 2006: $137 per month

Employees who have health coverage available through another family member may opt out of the District health plan, and the District shall reimburse the employee for that portion of the premium cost which is incurred, if any, to cover the employee under his/her family members’ medical plan. In no event will reimbursement under the opt-out provision exceed 75% of the District contribution toward employee health premiums. This opt-out provision will be cancelled in the event the District transitions to a medical provider that requires an employee participation rate that would, by necessity, include employees who had previously opted out of health insurance through the District

The parties will meet and confer during the term of the agreement to review the possibility of changing coverage within the LIUNA Trust.

ARTICLE 14 HOLIDAYS

B. If one of the above listed holidays falls on Sunday, the following Monday shall be the holiday in lieu of the day observed. If one of the above-listed holidays falls on a Saturday, the preceding Friday shall be the holiday in lieu of the day observed. When the day on which a District holiday is observed falls on a worker’s regularly scheduled day off, during the worker’s regularly scheduled vacation or if the General Manager requests said employee to work on that day, the worker shall be entitled to holiday pay of up to 8 hours. In addition, all actual hours required to be worked on a holiday shall be converted to ~~comp~~ vacation time at the rate of 1-1/2 times and ~~placed into a vacation bank~~ added to the employee’s vacation leave balance.

ARTICLE 15 SALARY TABLES

E. Cost of Living Adjustment. The Board will grant a cost-of living adjustment to employees ~~on an annual basis~~ periodically to help maintain purchasing power. ~~Effective retroactively to July 1, 2002, there shall be a cost of living adjustment of 2%. Effective July 1, 2003, there will be a second increase of 2%.~~ Effective July 1, 2005, there will be a 2.25% increase for each employee.

F. PERS EPMC: Effective July 1, 2004, the District will implement Government Code section 20636, section (C)(4), pursuant to Government Code section 20691, by including the value of employer-paid member contributions in salary reported to PERS as compensation for all employees.

ARTICLE 29 TERM OF AGREEMENT

This Agreement shall be effective on the ~~16^th day of December, 2002~~ 21st day of July 2004 and shall remain in full force and effect without change, addition or amendment through June 30, ~~2004~~ 2006, and shall be renewed thereafter subject to reopening by either party upon ninety (90) days’ written notice to the other party prior to June 30, ~~2004~~ 2006 or any June 30 anniversary date thereafter.

IMPACT ON DISTRICT RESOURCES: The changes to the MOU described above will result in increased costs of $9,040 in FY 2004-2005 and $8,863 in FY 2005-2006, resulting in a two-year total of $17,903.

RECOMMENDATION: Approve the resolution adopting a Memorandum of Understanding between the Monterey Peninsula Water Management District and the Management Staff Bargaining Unit, included as Exhibit 8-A. Also adopt the resolution for paying and reporting the value of employer paid member contributions to the California Public Employees’ Retirement System, included as Exhibit 8-B.

BACKGROUND: On February 26, 2002, the District acknowledged LIUNA/UPEC Local 270 as the exclusively recognized employee organization and bargaining representative for the MPWMD Management Staff Unit. An initial Memorandum of Understanding (MOU) between the District and the Management Staff Bargaining Unit was implemented on December 16, 2002. This agreement expires on June 30, 2004. Bargaining sessions between labor negotiators for the District and labor negotiators for the Management Staff Bargaining Unit, represented by LIUNA/UPEC Local 270, regarding a new MOU began on March 4, 2004. This process has resulted in an agreement between District and LIUNA representatives that has also been accepted by the LIUNA membership.