ITEM:

CONSENT CALENDAR

5.

CONSIDER ADOPTION OF BARGAINING AGREEMENT WITH CONFIDENTIAL UNIT

Meeting Date:

October 21, 2013

Budgeted:

N/A

From:

David J. Stoldt,

Program/

N/A

General Manager

Line Item:

Prepared By:

David J. Stoldt

## 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.   The agreement is identical to those adopted for the General Staff and Management units at the Board’s September 16th meeting (Agenda Item 13) with one exception:  The District will pay monthly healthcare premiums capped at the greater of (1) $1032 or (2) 95% of the then-current healthcare premium. The other units are capped at$968 or 95%.  The difference reflects a change negotiated by the Confidential Unit under an earlier contract.  Once escalation in the monthly health care premiums exceeds \$1032, which will likely happen within one or two years, all the units will be treated equally.  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.

All new bargaining unit MOUs achieve 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.

RECOMMENDATION:  The General Manager recommends that the Board adopt the Confidential Staff Agreement as it appears in Exhibit 5-A.

EXHIBIT

5-A      Memorandum of Understanding Between the Monterey Peninsula Water Management District and the Confidential Bargaining Unit

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