TO: Board of Supervisors
FROM: Christine Briceño, Director of Human Resources
REPORT BY: Joy Cadiz, Senior Human Resources Analyst
SUBJECT: Resolution Approving the Total Tentative Agreement for PSE and PSE Supervisory, and Salary Increases in Fiscal Years 2022-2023 and 2023-2024 and a One-Time Payment of One Thousand Five Hundred Dollars for PSE, PSE Supervisory, Management Non-Classified, Management, and Confidential Employees
RECOMMENDATION
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Director of Human Resources requests the following actions regarding County employees:
1. Adoption of a resolution approving a Total Tentative Agreement (TTA)* with the Public Service Employees (PSE) and PSE Supervisory Units including salary increases in fiscal years 2022-2023 and 2023-2024 and a one-time payment of $1,500; and
2. Adoption of a resolution approving salary increases in fiscal years 2022-2023 and 2023-2024 and a one-time payment of $1,500 for unrepresented Management Non-Classified, Management, and Confidential employees and a $1,500 lump sum payment to all eligible employees effective October 1, 2022.
*Pending ratification by PSE members, anticipated by September 26, 2022. The TTA will be attached subsequent to ratification.
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EXECUTIVE SUMMARY
Following approximately six months of negotiations, County and Union bargaining teams reached tentative
agreements on the terms of successor Memoranda of Understanding (MOU) covering the period from July 1, 2017 to June 30, 2020, and rollover contracts for 2020 and 2021. The Union is in the process of conducting a ratification vote and will inform County of the result of that vote by September 26, 2022. The successor MOUs will incorporate the tentative agreements reached and include salary adjustments and other changes highlighted in the background of this item. The successor MOUs will be presented for approval by the Board of Supervisors subsequent to ratification.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
There is no obligation for the Board to approve this contract, however, the County and the Union bargained in good faith, and reached the tentative agreements within the authority granted by the Board. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
The cost of the tentative agreements included in this contract for October 1, 2022 to June 30, 2023 is approximately $14.3 million, and approximately $9 million for July 1, 2023 to June 30, 2024. As is the County's general practice, departments will be asked to try and absorb the salary adjustment within their approved budgets through salary or other savings. If a department is unable to fully cover this adjustment within their existing budget, adjustments will be made as necessary at mid-year. |
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Consequences if not approved: |
The County would be required to go back to the table to continue negotiations with the Union. |
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County Strategic Plan pillar addressed: |
Effective and Open Government |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
The Memoranda of Understanding (MOU) with SEIU Local 1021, the Union representing approximately 975 of the County's employees, expired on June 30, 2022. The County and Union bargaining teams began negotiating new MOU in March 2022. During negotiations the bargaining teams reached several tentative agreements on the terms of successor MOU. The union membership will ratify the tentative agreements by September 26, 2022*. The tentative agreements will be incorporated into the successor MOUs for the PSE and PSE Supervisory Units and will be provided subsequent to ratification. A summary of those tentative agreements are as follows:
• 10.25% COLA over 2 years (7% and 3.25%)
• Inflation Adjustment Payment of $1,500.00
• $0.75 per hour wage increase
• Cease cost sharing for employees in 2.0%@60 and 2.0%@62 retirement formulas
• Set a 2.591% cap for employees in 2.5%@55 retirement formula
o Employees in 2.5%@55 retirement formula share decreases in the total employer contribution rate on a
50/50 basis. The cost share cap is reduced by the amount of the employee’s reduction until such time
as the cost share reaches 0.0%
o County bears 100% of any increases in the total employer contribution rate
• Increase annual dental maximum to $3,100 per insured participant and increase lifetime orthodontia maximum to $4,000 per insured participant
• Ability for Napa County retirees, after twenty or more years of County employment, to purchase retiree dental benefits from the County, at the County’s monthly premium group funding rate plan
• Add a $250 longevity payment at five years of County service and a $3,000 longevity payment at thirty years of County service
• County will match employee’s 457 contribution up to $600.00 per calendar year into the 401a plan
• Bilingual incentive premium pay increase - Level I $80 and Level II $100
• Increase night shift premium from $2.00 per hour to $3.00 per hour
• Increase wellness incentive up to a maximum of $300.00 per 6 months
• Adds Juneteenth as a County recognized holiday to the MOU
• Bereavement leave changes, including allowing employees to use 4 hours of their bereavement leave bank every year to attend any funeral of their choosing.
• Various other changes to help clarify language and enhance practices of existing sections of the MOU.
*This action is assuming ratification by PSE members by September 26, 2022. As of the time of posting, ratification is pending. The County will be notified of the result prior to the scheduled Board meeting, and a copy of the proposed TTA will be made available upon successful ratification and will be attached subsequently.