COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Resources Department

 

DATE:

March 22, 2011

BOARD MEETING DATE:

April 12, 2011

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Donna Vaillancourt, Human Resources Department Director

SUBJECT:

Memorandum of Understanding with Probation and Detention Association (PDA)

 

RECOMMENDATION:

Adopt a Resolution adopting the Memorandum of Understanding with the Probation and Detention Association (PDA) for the provision of salary and benefits for the term of May 30, 2010 through May 21, 2016.

 

BACKGROUND/DISCUSSION:

The current MOU expired on May 29, 2010, and the County concluded negotiations with PDA on February 1, 2011. The membership has ratified the County’s offer, which will achieve ongoing structural changes in wages, health benefits, retirement and retiree health. This will contribute long-term savings toward eliminating the County’s $100+ million structural deficit. PDA represents five percent of County employees in bargaining units. The following summarizes the major elements in the Memoranda of Understanding.

 
Term

May 30, 2010 – May 21, 2016 (Six years)

 

Wage Increase

No wage increases in 2010, 2011 and 2012. Effective May 26, 2013, May 25, 2014 and May 24, 2015 there will be salary increases of a minimum of 1% to a maximum of 4% based on either the mean of standard comparator agencies, or, the increase tied to property tax growth, whichever is greater.
 

Health Benefits

Effective April 1, 2011, the health premium cost sharing ratio will decrease from 90% to 85% County paid for the HMO plans and from 80% to 75% County paid for the Point of Service (POS) plan.

 

Effective April 1, 2011, all three medical plans will have increases in co-pays.

 

Effective April 1, 2011 and January 1, 2012, each PDA employee will receive a $200 credit to their flexible health care spending account.

 

Retirement

New employees hired on or after July 10, 2011 will be offered the option between two retirement tiers; 2% @ 50 with no cost share, or 3% @ 55 with the current 3.5% employee cost share. A separate resolution will be brought to the Board to effectuate this change.

 

New employees hired on or after July 10, 2011 will pay 50% of the cost of retirement cost of living adjustment. Commencing May 26, 2013, employees hired before July 10, 2011 will pay 25%of the cost of the retirement cost of living adjustment.

 

An actuarial report describing the changes (reductions) in retirement costs was presented to you on March 29, 2011.

 
Retiree Health

Employees hired on or after May 1, 2011 will receive $400 per eight hours of accrued sick leave to utilize for retiree healthcare premiums.

 

County Counsel has reviewed and approved the Resolution as to form. Approval of this Memorandum of Understanding contributes to Shared Vision 2025 of a Prosperous Community by ensuring cost-effective compensation structures for County employees.

 

FISCAL IMPACT:

During the six-year term of this agreement, the County will realize savings of approximately $3 million. The ongoing structural savings will be approximately $450,000 per year with estimated savings of over $2 million in retirement costs by year ten.