ITEM:	CONSENT CALENDAR
1.	CONSIDER ADOPTION OF RESOLUTION 2004-13 APPROVING A NEW MEMORANDUM OF UNDERSTANDING BETWEEN THE MONTEREY PENINSULA WATER MANAGEMENT DISTRICT AND THE CONFIDENTIAL STAFF BARGAINING UNIT
Meeting Date:		July 29, 2004	Budgeted: Yes
Staff Contact:		David A. Berger	Program/Line Item No.: Salary & Wages 7110; Employee Insurance 7160; Employee Retirement 7140
			Cost Estimate: $8,720 for FY 2004-2005; $7,394 for FY 2005-2006; $16,114 Total
General Counsel Approval: Yes
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: The District and the Confidential Unit have met and conferred in good faith regarding wages, hours, working conditions and other terms of employment. 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 in a manner which is substantively identical to the recently approved Management Staff Bargaining Unit MOU, as follows:

ARTICLE 7 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.

100% of premiums for life insurance, survivor benefit, long-term disability insurance, and the employee assistance plan premiums for all regular and introductory employees shall be paid by the District. 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 requirement to exhaust 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 retroactive to 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: $120.00 per month

January 1, 2006: $137.00 per month

Employees who have health coverage available through another family member may opt out of the District health plan covering this Unit, 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 is only applicable if the medical provider covering this Unit allows it.

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 21 REDUCTION IN FORCE

G. District Dissolution or Merger

MPWMD recognizes that a set of changed circumstances would arise, having an effect upon terms and conditions of employment with the District, in the event the District was dissolved, or its functions merged into another existing agency. The District agrees to meet and confer with the Confidential Unit to discuss whether these changed circumstances provide cause to modify terms and conditions of employment. Accordingly, this agreement shall be re-opened, and subject to modification as to wages, hours, terms of employment and working conditions, upon approval of legislation by both the California State Assembly and Senate, the effect of which would be to dissolve the District, or merge its functions into another existing public agency.

ARTICLE 26 TERM OF AGREEMENT

This Agreement shall be effective retroactive to the 1st day of July 2004 and shall remain in full force and effect without change, addition or amendment through June 30, 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, 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 $8,720 in FY 2004-2005 and $7,394 in FY 2005-2006, resulting in a two-year total of $16,114.

RECOMMENDATION: Adopt by motion the resolution approving a new Memorandum of Understanding between the Monterey Peninsula Water Management District and the Confidential Staff Bargaining Unit, included as Exhibit 1-A.

BACKGROUND: Members of the Confidential Bargaining Unit have elected to represent themselves in labor negotiations with the District. An initial Memorandum of Understanding (MOU) between the District and the Confidential Staff Bargaining Unit was implemented on December 16, 2002. This agreement expired on June 30, 2004. Meetings between labor negotiators for the District and Unit members have resulted in an agreement that affords wages, benefits, and conditions of employment parallel to those specified in the Memorandum of Understanding for the Management Staff Bargaining Unit, which is represented by LIUNA/UPEC Local 270. Due to the fact that the Confidential Staff Bargaining Unit is a mixed unit including one Division Manager, sections regarding both Overtime/Compensatory Time and Management Leave are included in this MOU. There is also an additional paragraph in Article 21 that provides a reopening of contract negotiations under specific conditions relating to a state legislative decision to dissolve or merge the District.

LIST OF EXHIBITS

1-A Draft Resolution No. 2004-13

Attachment 1 MOU between MPWMD and Confidential Staff Bargaining Unit

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