ITEM:		CONSENT CALENDAR
13.	CONSIDER ADOPTION OF BARGAINING AGREEMENT WITH GENERAL STAFF UNIT
Meeting Date:			September 16, 2013	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item:
Prepared By:			David J. Stoldt	Cost Estimate:	None – Cost Reduction
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: The General Staff bargaining unit and the Board’s negotiating representatives have agreed to terms for a new 3-year Memorandum of Understanding, attached as Exhibit 13-A. The agreement achieves three important goals of the District, while also being fair and reasonable to employees. The three goals that were met are (i) permanent annual cost savings to the District, (ii) creation of a “Tier 2” category for new employees with reduced cost of benefits for the District going forward, and (iii) an acceleration of the employee share of PERS contribution ahead of the 2018 implementation date. Employees receive a salary increase which off-sets the employee share of PERS contribution, making it cost neutral, while at the same time structured in a manner that preserves a portion of an advantageous employee retirement benefit. The settlement details are described under “Discussion,” below.

RECOMMENDATION: The General Manager recommends that the Board adopt the General Staff Agreement as it appears in Exhibit 13-A.

DISCUSSION: The settlement is described below.

Term

3 year contract

Salary Adjustment / PERS Contribution

Employees will contribute an amount to PERS equal to 2% of salary in year 1, 4% in year 2, and 6% in year 3. The PERS contribution will be structured as 1.0% of the Employer’s share and 1.0% of the Employee’s share in each of the next 3 years to be paid by staff, with a corresponding 2% salary increase effective on July 1 of each year of the contract. The first increase would be effective July 1, 2013.

Move General Unit Health Plan

The District will provide a one-time payout of $1,500 to each member of the General and Management Units using medical insurance savings that will occur when the General Unit switches to Laborers. The District will realize savings of approximately $110,000 per year by making this healthcare switch.

Payout will occur on January 1, 2014 in the form of each employee’s choice of either:

1) A separate check for $1,500 or,

2) A $1,500 contribution to the employee’s unreimbursed medical fund for 2014. Should an employee elect this option and not use the funds, the District would receive the funds back.

Adjust Health Care Caps for Current and Retired Employees

District will pay monthly healthcare premiums capped at the greater of (1) $968 or (2) 95% of the then-current healthcare premium. Traditionally, the District had paid 100% of the monthly premium, except in recent years when the cap was not renegotiated due to extension of the prior period MOU. This new approach ensures that employees bear some responsibility for the monthly health care premium.

While there were no changes to the current cap for retirees with over 15 years of service, retirees with less than 15 years of service will have a cap set at $540. All Tier 2 retirees will receive a cap set at $540

Existing retirees benefits maintain their current benefit payment schedule, but. ACWA retirees will have to find new independent insurance as they are not eligible for the LIUNA plan.

Weekend Overtime/Comp Time

The workweek is redefined as Monday through Sunday to eliminate an issue with respect to the ability of employees to use vacation days due to fisheries scheduling.

PEPRA: Two-Tier System

New employees will be hired under a Tier 2 category which limits benefits vis a vis current employees, as described below..

The new employee MPWMD PERS formula is 2% at 62, with an early retirement age of 52 and a maximum benefit factor of 2.5 at age 67. The annual pensionable compensation that can be used to calculate final compensation is capped. The 2013 cap is $136,440 for members, such as those at the District, that do not participate in Social Security. This represents 120% of the 2013 Social Security contribution and benefit base.

A new member’s initial contribution rate will be at least 50%, up to 8%, of the total normal cost rate for their defined benefit plan.

All Tier 2 retirees will receive monthly health care premium cap set at $540 versus that for current employees discussed above.

Vacation accrual for Tier 2 employees is reduced from current levels and maximum accrual is reduced to 45 days versus 60 today.

Sick leave payout upon separation of 30 days paid at separation versus __ days currently.

EXHIBITS

13-A Memorandum of Understanding Between the Monterey Peninsula Water Management District and the General Staff Bargaining Unit

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