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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Human Resources Department
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DATE:
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March 24, 2011
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BOARD MEETING DATE:
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April 12, 2011
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Donna Vaillancourt, Human Resources Department Director
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SUBJECT:
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Memorandum of Understanding with Deputy Sheriff’s Association (DSA)
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RECOMMENDATION:
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Adopt a Resolution adopting the Memorandum of Understanding with the Deputy Sheriff’s Association (DSA) for the provision of salary and benefits for the term of January 9, 2011 through January 2, 2016
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BACKGROUND/DISCUSSION:
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The County requested that the DSA open their contract, which was not due to expire until January 2012, in order to renegotiate some of the terms of that agreement. DSA agreed and negotiations concluded with DSA on January 25, 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. DSA represents seven percent of County employees in bargaining units. The following summarizes the major elements in the Memoranda of Understanding.
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Term
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January 9, 2011 – January 2, 2016 (Five years)
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Salary Formula
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The prior formula was 1% above the highest of the nine Bay Area Counties with a minimum annual increase of 3%. We were able to renegotiate this formula to remove the minimum guarantee which saves the County more than $2 million annually. The initial formula was negotiated at a time when there was great difficulty recruiting and retaining the best staff available. In the current economy, there are no longer the recruiting concerns of the past, resulting in the ability to negotiate the revised formula. A 3% wage increase will be issued in January 2015 if a combined total of 3% based on the new formula has not been realized.
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Health Benefits
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Effective April 1, 2011, the health premium 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.
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Effective April 1, 2011, all three medical plans will have increases in co-pays.
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Retirement
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New employees hired on or after July 10, 2011 will be offered 3% @ 55 with the current employee cost share.
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New employees hired on or after July 10, 2011 will pay 50% of the cost of the retirement cost of living adjustment.
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An actuarial report describing the changes (reductions) in retirement costs was presented to you on March 29, 2011.
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Retiree Health
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Employees hired on or after July 1, 2011 will receive $400 per eight hours of accrued sick leave to utilize for retiree healthcare premiums. Employees will contribute 1.6% of salary for six years to offset the cost of DSA’s retiree health. Current employees may elect to move into this plan.
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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.
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FISCAL IMPACT:
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During the five-year term of this agreement, the County will realize savings of approximately $12 million. The ongoing structural savings will be approximately $2.5 million per year with estimated savings of over $5.4 million in retirement costs by year ten.
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