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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 07/12/2017REG ULA R BO A RD MEET IN G C losed Session Begins at 4:30 PM J uly 12, 2017 - 5:30 PM 31111 Greenspot Road, Highland, C A 92346 AG E N D A "In order to comply with legal requirements for posting of agenda, only those items filed with the District C lerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors". C A LL TO O RD ER RO LL C A LL O F BO A RD MEMBERS P U B L I C C O MME N T S Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the C hairman of the Board. Under the State of C alifornia Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. T he matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. AGE N D A - T his agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. 1.Approval of Agenda REC ESS IN TO C LO SED SESSIO N C L OSE D SE S SI ON 2.C O N FEREN C E WIT H LEG A L C O UN SEL - EXIST IN G LIT IG AT IO N [Government C ode Section 54956.9(d) (1)] Name of C ase: C ity of San Bernardino v. East Valley Water District, et al., San D iego Superior Court C ase No. 37-2016-00038119-C U-WM-C T L 3.C O N FEREN C E WIT H LEG A L C O UN SEL - EXIST IN G LIT IG AT IO N [Government C ode Section 54956.9(d)(1)] Name of Case: C arl F. Kovach v. East Valley Water D istrict, C A SE No. C IVD S 1603176 4.C O N FEREN C E WIT H LEG A L C O UN SEL - A N T IC IPAT ED LIT IG AT IO N Initiation of litigation pursuant to Government C ode Section 54956.9(d)(4) One Potential C ase 5:30 P M RE C ON VE N E ME E T I N G PLED G E O F A LLEG IA N C E RO LL C A LL O F BO A RD MEMBERS A N N O UN C EMEN T O F C LO S ED S ESS IO N A C T IO N S IT EMS P U B L I C C OMME N T S 5.AP P RO VAL O F C ON SE N T C AL E N D AR All matters listed under the C onsent C alendar are considered by the Board of Directors to be routine and will be enacted in one motion. T here will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the C onsent C alendar. a.J une 14, 2017 regular meeting minutes b.Directors' fees and expenses for J une 2017 D I SC U SSI O N AN D P OS SI B L E AC T I O N I T E MS 6.Consider Memorandum of Understanding between East Valley Water District and the East Valley Water District Employee Partnership and Non-Designated Employees' Salaries, Benefits and Related Programs RE P O RT S 7.Board of Directors' Reports 8.General Manager/C EO Report • Water Q uality Update 9.Legal C ounsel Report 10.Board of Directors' Comments AD J O U RN P LEAS E NO T E: Materials related to an item on this agenda s ub mitted to the Board after dis trib utio n of the agend a pac ket are available for p ublic ins p ectio n in the Dis tric t's o ffice lo cated at 31111 G reens pot R d., Highland, during no rmal b usines s hours . Also, s uc h d o cuments are available o n the Dis tric t's web s ite at www.eas tvalley.o rg sub ject to s taff's ab ility to post the d o cuments b efo re the meeting. P urs uant to G overnment C o d e S ec tion 54954.2(a), any reques t fo r a d is ab ility-related mo dific ation or ac commod ation, inc luding auxiliary aids or s ervic es , that is s ought in order to participate in the abo ve- agendized p ublic meeting s hould b e d irected to the Dis tric t C lerk at (909) 885-4900 at leas t 72 hours prior to said meeting. 1 Minutes 6/14/2017 smg Draft pending approval EAST VALLEY WATER DISTRICT June 14, 2017 REGULAR BOARD MEETING/PUBLIC HEARING MINUTES The Chairman of the Board called the meeting to order at 4:30 p.m. PRESENT: Directors: Carrillo, Coats, Morales, Shelton, Smith ABSENT: None STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Steven Nix, Director of Engineering & Operations; Justine Hendricksen, District Clerk; Shayla Gerber, Administrative Assistant LEGAL COUNSEL: Jean Cihigoyenetche GUEST(s): Members of the public PUBLIC COMMENTS Chairman Coats declared the public participation section of the meeting open at 4:30 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF AGENDA M/S/C (Shelton-Smith) that the June 14, 2017 agenda be approved as submitted. CLOSED SESSION The Board entered into Closed Session at 4:31 p.m. as provided in the Ralph M. Brown Act Government Code Section 54956.9(d)(1) to discuss the item(s) listed on the agenda. THE BOARD RECONVENED THE MEETING AT 5:30 P.M. Mr. Charles Roberts led the flag salute. ROLL CALL PRESENT: Directors: Carrillo, Coats, Morales, Shelton, Smith ABSENT: None 2 Minutes 6/14/2017 smg ANNOUNCEMENT OF CLOSED SESSION ACTIONS With respect to Item #2: This item was not discussed. With respect to Item #3: No reportable action taken. With respect to Item #4: No reportable action taken. APPOINTMENT OF DIRECTORS FOR THE EAST VALLEY PUBLIC FACILITIES CORPORATION The General Manager/CEO provided background information regarding the East Valley Public Facilities Corporation; he stated that there have been no meetings since 2013, and that the Corporation was used for floating bonds for capital improvement projects. He stated that the District was informed by the Franchise Tax Board that the corporation needs to be dissolved, but first the District needs to appoint new directors to serve on the East Valley Public Facilities Corporation board. M/S/C (Carrillo-Shelton) that the Board appoint the East Valley Water District Board of Directors to serve as the Board of Directors for the East Valley Public Facilities Corporation. ADJOURN TO EAST VALLEY PUBLIC FACILITIES CORPORATION MEETING AT 5:33 P.M. RECONVENE TO EAST VALLEY WATER DISTRICT REGULAR BOARD MEETING AT 5:38 P.M. PUBLIC COMMENTS Chairman Coats declared the public participation section of the meeting open at 5 :39 p.m. There being no written or verbal comments, the public participation section was closed. APPROVE THE MAY 17, 2017 SPECIAL BOARD MEETING MINUTES M/S/C (Smith-Shelton) that the Board approve the May 17, 2017 special board meeting minutes as submitted. APPROVE THE MAY 24, 2017 REGULAR BOARD MEETING MINUTES M/S/C (Smith-Shelton) that the Board approve the May 24, 2017 regular board meeting minutes as submitted. 3 Minutes 6/14/2017 smg DIRECTORS’ FEES AND EXPENSES FOR MAY 2017 M/S/C (Smith-Shelton) that the Board approve the Directors’ fees and expenses for May 2017 as submitted. STAFF PRESENTATION REGARDING CITY CREEK SEWER REHABILITATION NOTICE OF INTENT TO ADOPT MITIGATED NEGATIVE DECLARATION AND PROPOSED RESOLUTION 2017.09 The Director of Engineering and Operations gave a brief summary of the City Creek Sewer Rehabilitation Project and reviewed California Environmental Quality Act (CEQA) guidelines. He stated that three comment letters were received by the District, and will be incorporated into the final Mitigated Negative Declaration. Information only. ADJOURN TO PUBLIC HEARING AT 5:43 P.M. PUBLIC COMMENTS Chairman Coats declared the public participation section of the meeting open at 5 :43 p.m. There being no written or verbal comments, the public participation section was closed. ADJOURN TO REGULAR BOARD MEETING AT 5:43 P.M. BOARD DISCUSSION Director Morales stated that he feels the project is very important to the District and thanked the Director of Engineering and Operations for his work on the project. Chairman Coats commended the Director of Engineering and Operations on a job well done. ADOPT THE MITIGATED NEGATIVE DECLARATION FOR THE CITY CREEK SEWER REHABILITATION PROJECT AND ADOPT RESOLUTION 2017.09 M/S/C (Morales-Carrillo) that the Board adopt Resolution 2017.09 adopting the initial study and mitigated negative declaration for the City Creek Sewer Rehabilitation Project. REVIEW AND ADOPT SURPLUS PROPERTY POLICY 7.1.1 The Chief Financial Officer stated that Surplus Property Policy 7.1.1 is being added as a supplement to the previous policy, and provides additional details to establish Board expectations and guidance to staff. 4 Minutes 6/14/2017 smg Director Morales stated that the policy provides clear direction and expectations on how to dispose of surplus property. M/S/C (Morales-Smith) that the Board adopt Surplus Property Policy 7.1.1. REFER IDEA HALL CONTRACT UPDATE FOR THE STERLING NATURAL RESOURCE CENTER OUTREACH TO SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT The General Manager/CEO informed the Board that the proposed contract falls under the framework agreement with San Bernardino Valley Municipal Water District. The Board commended staff and Idea Hall consultants on a job well done regarding the Sterling Natural Resource Center public outreach. M/S/C (Morales-Smith) that the Board approve the forms and content of the proposed contract from Idea Hall and refer the action to San Bernardino Valley Municipal Water District for review and approval, as it relates to the Sterling Natural Resource Center. BOARD OF DIRECTORS’ REPORTS Director Smith reported that on the following: on May 31 he attended the San Bernardino Valley Water Conservation Groundwater Recharge Hearing; on June 7 he attended the District’s Budget Workshop; on June 9 het met with the General Manager/CEO; and on June 14 he attended the San Bernardino Valley Water Conservation District Board meeting. Director Shelton reported on that on May 30 she observed the Pumalo Road wastewater pipeline repair project being performed by staff. Director Morales reported on the following: on June 1, June 7, June 8 and June 13 he attended Association of California Water Agencies (ACWA) Region 9 meetings where they discussed information for an upcoming Prado Dam Wetlands tour; and on June 6 he attended the San Bernardino Board of Water Commissioners meeting where they discussed the budget. Vice Chairman Carrillo reported on the following: on June 2 he attended the Legislative & Public Affairs Committee meeting where he received information on legislative bills that are being monitored; on June 6 he attended the North Fork Water Company Ad-Hoc Committee meeting where they discussed hiring an appraiser to value the shares of the company; and on June 13 he attended the 2X2 Recycled Water Ad-Hoc Committee meeting. Chairman Coats reported on the following: on May 30 he observed the Pumalo Road wastewater pipeline repair project being performed by staff; on June 6 he attended the San Bernardino Valley Municipal Water District board meeting; on June 8 he attended 5 Minutes 6/14/2017 smg the Advisory Commission on Water Policy meeting; and on June 13 on he attended the 2X2 Recycled Water Ad-Hoc Committee meeting. Information only. GENERAL MANAGER/CEO REPORT The General Manager/CEO reported on the following: THM levels are beginning to rise but are still well below threshold value and staff will continue to monitor and adjust the system as needed to maintain THM levels below reporting thresholds; on June 2 the Highland are Chamber of Commerce hosted “Evening Under the Stars” at the District and the District received many positive comments regarding the event; on June 6 the North Fork Legal Ad-Hoc Committee met and discussed the process for issuing a Request for Proposal to valuate North Fork shares; on June 9 the Employee Events Association hosted “Family Movie Night” for District employees; and on June 10 the District hosted a Smart Irrigation Community Workshop. Information only. LEGAL COUNSEL REPORT No reports at this time BOARD OF DIRECTORS’ COMMENTS Chairman Coats thanked everyone who regularly attends the board meetings and adjourned the meeting with the following statement: “Help ensure your water future by supporting the Sterling Natural Resource Center”. Information only. ADJOURN The meeting adjourned at 6:13 p.m. ___________________________ Ronald L. Coats, Board President __________________________ John Mura, Secretary R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Jus tine Hendric ks en District C lerk B OAR D AG E N D A S TAF F R E P O RT Agenda Item #5.b. Meeting Date: July 12, 2017 C ons ent Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: Direc tors ' fees and exp ens es for June 2017 R E C O MM E N D AT IO N: Approve the G overning Bo ard Memb ers ’ fees and expenses fo r June 2017. B AC KG R O UN D / AN ALYS IS : T he Board has instruc ted staff to lis t all d irec tor fees and exp ens es as a s ep arate agenda item to s how full fisc al transparenc y. O nly after Board review and ap p ro val will the c o mpens ation and exp ens es be p aid. AGE N C Y ID E ALS AN D E N DE AVO R S: Id eals and Endeavor I I - Maintain An Enviro nment C ommitted To Elevated P ub lic S ervice (E) – P ractice transparent & acc o untab le fis cal management R E VIE W B Y O T HE R S : T his agenda items has b een reviewed by the Ad minis tratio n department. F IS C AL IMPAC T : T he fis c al impact ass ociated with this agend a item is $6,909.46 which is includ ed in the current fis cal bud get. ATTAC H M E NTS: Description Type Directo rs Fees and Expenses J une 20 17 Backup Material B OAR D AG E N D A S TAF F R E P O RT Agenda Item #6. Meeting Date: July 12, 2017 Dis c ussion Item To: G overning Board Memb ers From: G eneral Manager/C E O S ubject: C o ns id er Memorandum o f Und erstanding between East Valley Water Dis trict and the Eas t Valley Water Dis trict Emp lo yee P artners hip and Non-Des ignated Employees' S alaries, Benefits and R elated P ro grams R E C O MM E N D AT IO N: S taff rec o mmend s that the Bo ard o f Direc to rs approve the Memorand um o f Unders tand ing (MO U) between the East Valley Water Dis tric t (Dis trict) and the East Valley Water Dis tric t Emp loyee P artners hip and Non- R epres ented Emp lo yees ’ S alaries , Benefits and R elated P ro grams . B AC KG R O UN D / AN ALYS IS : O n May 1, 2017, the Dis tric t’s rep res ented employees vo ted to decertify from the S BP EA Teams ters Loc al 1932 and fo rm their own internal emp lo yee unit named the Eas t Valley Water Dis tric t Employee P artnership (EVW DEP ). T he EVW DEP formed just in time to prep are fo r the upc o ming expiration o f the three (3) year MO U with the S BP EA Teamsters Lo cal 1932 on June 30, 2017. T he E VW DE P members met to d isc us s what they wo uld like to propos e to the Dis tric t fo r the up c o ming contract. O n May 16, 2017, a negotiatio ns meeting was held between EVW DEP repres entatives, the G eneral Manager/C E O and HR Manager. T he rep res entatives d is cussed their p roposals and the G eneral Manager/C EO c o mmunic ated his agreements with c ertain items and recommended alternatives that he felt were b etter suited fo r the Dis trict, Dis trict s taff and our ratepayers . O verall it was a suc cessful meeting and bo th parties were pleas ed . O n May 22, 2017, the repres entatives met with the members hip to disc us s the p ro posals mo ving forward which includ ed the alternatives rec o mmend ed b y the G eneral Manager/C EO . T he rep res entatives and HR Manager ans wered q ues tions the memb ership had regard ing the p ro p osals and alternatives. T he pro p o s als and alternatives were then b ro ught b efore the Board in c lo s ed s es s ion on May 24, 2017 fo r dis c us s io n. O n June 7, 2017, the EVW DEP c o nd uc ted a s ec ret b allot electio n regard ing the contrac t items and 98% o f the members hip voted to ratify the MO U. T hroughout this same time, the G eneral Manager/C EO and HR Manager had s imilar disc us s io ns with the District’s no n-rep res ented s taff. T he Non-R epres ented Employees’ S alaries , Benefits and R elated P ro grams d oc ument does no t require a vo te; however, all non-repres ented s taff are in s upp o rt o f the document’s contents . R ec o mmend ed b y: John Mura G eneral Manager/C EO R espec tfully s ubmitted: Kerrie Bryan HR /R is k and S afety Manager T he E VW DE P and the Dis trict are in agreement on a three (3) year MO U (July 1, 2017 – June 30, 2020). T he MO U, along with the No n-R ep res ented Emp lo yees ’ S alaries, Benefits and R elated P rograms doc ument includ es a cost of living inc reas e eac h year o ver the three (3) years , some b enefit enhanc ements and changes to b enefit s truc tures, as well as eliminatio n o f s o me benefit pro grams whic h provid e a c o s t savings to the Dis trict. T he Distric t is very pleas ed with the o utcome o f the first E VW DE P c o ntrac t nego tiatio ns , and b elieve this s up p o rts Dis tric t-Wide G o al #5 o f s uc ces s fully nego tiating an emplo yee MO U that protec ts the Dis trict’s resourc es while promoting employee mo rale. AGE N C Y ID E ALS AN D E N DE AVO R S: Id eals and Endeavor I I - Maintain An Enviro nment C ommitted To Elevated P ub lic S ervice (B) - P romote a positive organizational culture (C ) - Id entify s trategies to attract and retain a high q uality wo rkforce R E VIE W B Y O T HE R S : T his agenda item has b een reviewed by the Ad minis tration Department, the F inance Department and the East Valley Water Dis tric t Employee P artnership rep res entatives . F IS C AL IMPAC T : T he table below p res ents the inc remental cos ts/s avings for eac h year of the three-year contrac t. ATTAC H M E NTS: Description Type Final M O U 20 17-202 0 Backup Material Final M O U No n Rep 2 017-20 20 Backup Material 0 TABLE OF CONTENTS ARTICLE TITLE PAGE NO. 1 Designation of Parties 1 2 Purpose 1 3 Term 2 4 Compensation 2 5 Membership Dues 5 6 Working Out of Classification 5 7 Health and Welfare Benefits 6 8 Deferred Compensation Match 7 9 Computer Purchase Program 7 10 Standby 8 11 Call Back 8 12 Certification Incentive Pay 9 13 Hours of Work 10 14 Overtime 11 15 Sick Leave 11 16 Vacation 17 17 Bereavement Leave 18 18 Holidays 19 19 Absence Without Pay 20 20 Authorized Leave 20 21 Probationary Period 21 22 Separability 21 23 Uniforms 21 24 Employee Retention Incentive Program 22 25 Retiree Health Insurance 22 26 Retirement – PERS Contract 23 APPENDICES Appendix A Salary Schedule 25 Appendix B Salary Range 28 1 MEMORANDUM OF UNDERSTANDING BETWEEN THE EAST VALLEY WATER DISTRICT AND THE EAST VALLEY WATER DISTRICT EMPLOYEE PARTNERSHIP ARTICLE 1 DESIGNATION OF PARTIES This Memorandum of Understanding (MOU) constitutes an agreement between the designated representatives of the East Valley Water District (District) and representatives of the East Valley Water District Employee Partnership (Partnership). The Partnership is the exclusively recognized employee organization, representing all classifications in the unit, as set forth below: Administrative Assistant Receptionist Customer Service Representative I Senior Accounting Technician Customer Service Representative II Senior Customer Service Representative Customer Service Representative III Senior Engineering Technician Engineering Technician II Senior Equipment Mechanic Equipment Mechanic III Senior Field Service Worker Facilities Maintenance Coordinator Senior Treatment Plant Operator Field Service Worker I Senior Water Production Operator Field Service Worker II Storekeeper/Buyer Field Service Worker III Water Production Operator III Meter Reader I Water Quality Coordinator Meter Reader II Water Quality Technician ARTICLE 2 PURPOSE The parties to this Memorandum of Understanding (MOU) agree that its purpose is to confirm and maintain a spirit of cooperation between the District 2 and the general employees of the District. The District and the Partnership will strive to promote a harmonious relationship between the parties, through this MOU, that will result in benefits for the District and provisions of continuous and uninterrupted services. Except as otherwise expressly modified by this MOU, the Personnel Rules and Administrative Policies and Programs Manual shall remain in full force and effect as written. ARTICLE 3 TERM This MOU shall be effective as of July 1, 2017 upon ratification of the Partnership and approval by the full District's Board of Directors. It shall remain in full force and effect through June 30, 2020 and from month to month thereafter or until such time as agreement has been reached on a successor MOU. ARTICLE 4 COMPENSATION Cost of Living Adjustments (COLAs) – The following COLAs will be implemented during the term of this three (3) year contract: Year 1 – Three percent (3%) COLA effective July 8, 2017 Year 2 – Three percent (3%) COLA effective July 7, 2018 Year 3 – Three percent (3%) COLA effective July 6, 2019 Salary Schedule – Refer to Appendix A for the Salary Schedule effective July 8, 2017. Refer to Appendix B for Salary Range Tables including 3% COLA each year for the term of this three (3) year contract. 3 Pay for Performance - The Pay for Performance Program is a discretionary incentive program that allows for up to an additional five percent (5%) of base salary, aligned with the performance review cycle, to be paid out annually in lump sum form for commendable performance. Employees are eligible for the program upon completion of probation. Pay for Performance is utilized for those employees whose performance consistently meets or exceeds expectations as defined by efforts toward divisional and personal goal achievement, successful ratings on evaluation core competencies, and for those who have been identified as giving world class customer service, have established more efficient business processes, or generate ideas resulting in cost savings for the District. An employee must at least “meet expectations” in all core competencies on their annual Performance Evaluation to be eligible for this program. It is at the supervisor’s discretion to determine the percentage recommendation for their staff’s Pay for Performance incentive. Also, an employee may not have received formal discipline during the rating period to be considered eligible for this program. Employees with performance that either “Meets Expectations,” “Exceeds Expectations,” or “Far Exceeds Expectations,” will have the opportunity to participate in the Pay for Performance Program and have the potential to earn a lump sum payment of up to 5% of base salary. If base pay is above the maximum: Employees with pay frozen at or above the maximum of their range and perform at “Meets Expectations,” “Exceeds Expectations,” or “Far Exceeds Expectations,” will have the opportunity to participate in the Pay for Performance Program and have the potential to earn a lump sum payment up to 5% above the range maximum. 4 Pay for Performance Evaluation Procedure - The process for the Pay for Performance evaluation is as follows: 1. Core competencies, goals and objectives will be determined at the beginning of the fiscal year. 2. Supervisors and managers will meet with staff to communicate Department and individual goals as well as recommended actions staff should take to achieve these goals. 3. Prior to the end of the rating period (June 30th), staff will be asked to complete a self-evaluation relating to the core competencies, goals and objectives, and overall performance for their supervisor to review. 4. At the end of the rating period, after self-evaluations are submitted, a performance evaluation will be completed to document each employee’s accomplishments relative to the core competencies, goals and objectives, and overall employee performance. This will assist the supervisor in determining eligibility and the percentage recommendation for the Pay for Performance incentive. 5. The General Manager or designee will review all incentive recommendations and give final approval. 6. Incentive checks will be distributed on the first Friday of the new fiscal year, unless July 4th happens to fall on the first Friday of the new fiscal year then the incentive check will be distributed on the second Friday of the fiscal year. 7. If an employee does not agree with the incentive percentage recommended by their supervisor, they may speak with Human Resources, and if the issue is not resolved, they may request a meeting with the General Manager. 5 ARTICLE 5 MEMBERSHIP DUES The dues for regular membership of the Partnership shall be set by the Partnership at whatever level is necessary to maintain membership. Membership dues will not be collected during the term of this three (3) year contract. In the future, if a majority of the membership vote to collect dues, a membership meeting will be scheduled according to the Partnership Bylaws to determine the start date for collection of dues and to establish the dues deduction amount. ARTICLE 6 WORKING OUT OF CLASSIFICATION Employees in the unit assigned to work in a higher classification in excess of ten (10) consecutive working days, upon supervisor recommendation, will be granted a five percent (5%) salary increase or the "A" step of the higher classification, whichever is greater, for all time worked in the higher classification beginning with the eleventh (11th) work day, except for an employee in a trainee status. Increases in pay may be granted to recognize the temporary assignment of more difficult duties requiring a greater level of skills. "Selected positions may be authorized additional compensation, rather than being reclassified to a higher level". Temporary assignments as provided herein will not exceed one (1) year and shall not be used to avoid reclassification of the affected position. Increases in pay shall be temporary so long as the higher-level duties are assigned and performed. All such increases shall be authorized by the General Manager and shall not affect an employee's step advancement in the base range. 6 ARTICLE 7 HEALTH AND WELFARE BENEFITS Percentage Based Employer Contribution Plan - Effective January 1, 2017, the Flexible Benefit Plan was eliminated and replaced by the Percentage Based Employer Contribution Plan (PBECP). A. PEMHCA Contribution - The District will pay the Public Employees' Medical & Hospital Care Act (“PEMHCA”) minimum contribution for employees enrolled in the CalPERS Health Program through the District. This amount is set by CalPERS annually. For 2017, the minimum contribution is $128.00 per month. For 2018, the minimum contribution is $133.00 per month. B. Health Insurance - In addition to the PEMCHA minimum contribution, all Partnership members shall be eligible to participate in the PBECP. The PBECP covers the difference between the PEMHCA minimum contribution and 90% of health benefit premiums for employees and their qualified dependents up to the cost of the benchmark plan (Blue Shield for the term of this contract) for the benefit year. Employees will be responsible for covering the remaining 10% of the health benefit premium costs, and any additional costs incurred by selecting a health plan above the benchmark plan. C. Dental and Vision Insurance - The District will cover 100% of the employee’s selected group dental and vision plans for employees and their qualified dependents. D. Declination/Withdrawal Provision - A declination/withdrawal provision is included to allow employees with alternative coverage to opt-out of the District’s health benefits plan. Employees must show proof of alternative coverage annually. There is no cash-in-lieu provision associated with declining the District’s benefits. 7 Life Insurance - The District will pay the premiums for $100,000 Life and AD&D Insurance Policies for all Partnership members. Coverage During Leave of Absence - In accordance with Section 7.03 – E of the District’s Personnel Rules, the District will continue contributions for health, dental, vision, and life insurance premiums for a period not to exceed four (4) months during any approved medical leave, or during any period in which the employee has accrued leave time and is utilizing this leave time, whichever occurs later. If an employee wishes to continue coverage after the four-month period, the employee will be responsible for paying the District the premiums one month ahead of coverage. Flexible Spending Account - The District shall offer a Flexible Spending Account for the benefit of its employees. This program is in accordance with the provisions of IRS Publication 969. ARTICLE 8 DEFERRED COMPENSATION MATCH The District will match contributions of up to $75.00 per month for employees currently enrolled and participating in the 457 Deferred Compensation plan. ARTICLE 9 COMPUTER PURCHASE PROGRAM Full-time, non-probationary employees will have the opportunity to participate in the Computer Purchase Program which provides an interest free loan where employees can choose from a selection of computers, laptops, tablets, printers purchased by the District to be paid back through payroll deduction. Please reference the District’s Computer Purchase Program document which sets guidelines and limitations for the terms and conditions of the program. 8 ARTICLE 10 STANDBY Employees assigned to standby status shall be compensated at the rate of $40.00 per day and will be compensated for a minimum of two-hours overtime pay for calls lasting two-hours or less. Additional calls that may come in during the initial two-hour timeframe will be considered compensated if work is completed within the two-hours. Employees assigned to standby status during the District’s thirteen (13) designated holidays shall receive double standby pay compensated at the rate of $80.00 per day. Standby duty requires that employees so assigned shall: (1) be ready to respond immediately; (2) be reachable by telephone or other communicating devices; (3) be able to report to active duty not later than thirty (30) minutes from time of contact and (4) refrain from activities which might impair their ability to perform assigned duties. Employees not assigned to standby duty have no obligation to meet these requirements. ARTICLE 11 CALL BACK District employees called back to active duty after completing their normal tour of duty and leaving the work site shall be entitled to call back compensation. Call back compensation in an amount of twenty dollars ($20.00) shall be paid for each call back occurrence exclusive of any other premium pay provision. A minimum of two-hours overtime shall be paid for each call back occurrence. Call back compensation shall not apply to employees assigned to standby duty pursuant to Article 10, Standby. 9 ARTICLE 12 CERTIFICATION INCENTIVE PAY Sewer Response Team - This program will be eliminated effective July 1, 2014, as the District has identified that compensation for responding to sewer emergencies is included in Stand-by Pay and in the overtime pay employees receive for responding to such emergencies. Employees currently participating in the program on the date of the contract’s approval will be grandfathered in and continue to receive the salary differential of two and one-half percent (2.5%). Commercial Drivers - This program will be eliminated effective July 1, 2014, as the District has identified through market analysis that obtaining a Commercial License is a condition of employment for specified positions and the salary range for those specified positions is inclusive of compensation for that license. Employees currently participating in the program on the date of the contract’s approval will be grandfathered in and continue to receive the salary differential of two percent (2%). Water Distribution and Water Treatment Incentive Pay Program - Employees working in the Operations Department are eligible to receive a one-time certification incentive payment of $1,500 for each certification obtained of grade two or higher water distribution and treatment certifications. Certifications must be job related and approved by the employee’s supervisor. Employees must submit an official copy of the certification in order to receive the Incentive Pay. Distribution and Production Operators Differentials - These programs will be eliminated effective July 1, 2017 and replaced by the Water Distribution and Water Treatment Incentive Pay Program. Employees previously receiving differential pay based on a percentage of their pay per certification, or employees who passed the certification test prior to July 1, 2017, will be grandfathered into the program. Those employees grandfathered into the program will no longer receive the differential as a percentage of their pay, however, they will receive the equivalent monetary value each pay period 10 equal to that received in the last pay period of the 2016/17 Fiscal Year and the pay will be frozen at that amount. This grandfathered differential pay will continue to be considered Pensionable Compensation under CalPERS regulations. ARTICLE 13 HOURS OF WORK Work Hours - Work hours are the hours an employee is assigned to perform duties on behalf of the District. All full-time District employees (unless otherwise approved by the General Manager or designee) shall work a 9/80 work schedule, which is worked as one week at 36 hours and one week at 44 hours. The full eighty hour pay period is worked in nine (9) days rather than 10. Overtime is paid for hours in excess of nine (9) hours worked per day or eight (8) hours on employee’s non-flex day; not 40 hours per week. With the 9/80 work schedule, the work week period will begin each Saturday and end the following Friday. Employees shall work Monday through Thursday, for nine (9) hours and alternating Fridays for eight (8) hours. Employees will be scheduled for two days off during one calendar week and three days off during alternating calendar weeks. This additional day off shall be referred to as a flex day. Employee work hours shall be established by the District and are subject to change based upon the needs of the District and upon a minimum of two (2) weeks notification to employees. To ensure quality service levels to the District’s operations, the following working schedules have been established for staff in the office and field: Office Staff: Monday through Thursday: 7:30 am – 5:30 pm Alternating Friday 7:30 am – 4:30 pm 11 Field Staff: Monday through Thursday 6:30 am – 4:00 pm Alternating Friday 6:30 am – 3:00 pm Work Periods - If District Management concludes that the 9/80 work schedule is not conducive to District operations, the District will meet and confer on the impact of discontinuing the program. Thirty days’ notice will be provided to employees prior to the termination of a 9/80 schedule. ARTICLE 14 OVERTIME All time worked in excess of the established standard work week shall be considered as approved overtime. Overtime will be compensated at one and one- half (1-1/2) times the employee's base hourly rate. Overtime shall be reported and compensated in fifteen (15) minute increments. ARTICLE 15 SICK LEAVE A. Definition - Sick leave is an insurance or protection to be granted in circumstances of adversity to promote the health and welfare of the individual employee. It is not an earned right to time off from work. Sick leave permits the employee to be absent from duty without the loss of pay when they are incapacitated by reason of illness, injury or pregnancy and confinement or when a member of the immediate family must be attended to by the employee; or when an employee has been exposed to a contagious disease and his presence on the job might endanger fellow workers. When approved in advance, sick leave may also be used for medical, dental or optical examinations or treatments. Maternity leave is chargeable to sick leave, annual vacation and leave without pay as appropriate. To support a request for maternity sick leave, the employee must 12 submit a statement by her attending physician showing the expected period during which she will be incapacitated from the performance of official duties. For purposes of "attended to" (cared for) as defined herein, immediate family refers to spouse, mother, father, son, daughter, step relations, ward and, when residing in the employee's home, sister and brother. Time off for an employee to attend to a member of the immediate family shall be limited to a maximum of six and one-half (6.5) days (52 hours) per calendar year. Additional time may be authorized by the General Manager based on a case-by- case review of the employees’ sick leave usage. B. Initial Credit and Accumulation - Sick leave is earned at the rate of 4.5 hours (one half day) for each full bi-weekly pay period (13 days per year), and it can be accumulated without limitation. C. Notice of Sickness - When the employee is incapacitated from the performance of his or her duties for reasons that entitle him or her the use of sick leave, he or she must notify his or her department supervisor or other supervisor within thirty (30) minutes of their regular start time. D. Review - An absence of sick leave for more than five (5) workdays must be supported by a medical certificate. E. Improper Use - If, after reviewing an employee's record of sick leave usage, the District believes sufficient cause exists to suspect abuse of sick leave, a medical certificate may be required for any subsequent use of sick leave. F. Sick Leave Cash Out - Employees may cash out accrued sick leave balances as follows: 1. Employees may request reimbursement for up to three hundred (300) hours of accrued sick leave per calendar year provided, however, that a minimum of 160 hours (four weeks) accrual is retained after said reimbursement. All requests for reimbursement must be submitted to Payroll no later than December 1st of each year. 13 G. Sick Leave Cash Out at Separation - After ten (10) years of continuous service with the District, employees separating from employment are eligible to cash out a percentage of their sick leave accrual based on the cash out tiers below: 1. Sick leave tiers are based on the number of hours that can be accrued in a fiscal year (117 hours per year). Employees may accrue an unlimited amount of sick leave, however, the maximum hours an employee can cash out at retirement is 589 hours (equivalent of 5 years’ accrual). 2. Employees who retire from the District may apply remaining sick leave balances toward CalPERS for retirement credit. 3. In the event of an employee’s death, cash payment of remaining sick leave balances will be made to the employee’s estate based on the designated cash out tiers. In the event of death resulting from occupational injury, cash payment shall be made to the employee's estate of 100% of remaining sick leave balances. H. Worker's Compensation - Employees shall be provided with up to a maximum of three consecutive days of un-chargeable leave following an occupational injury unless otherwise required by the Worker's Compensation Act of the State of California. The deduction by the District from the employee's accumulated sick leave shall be limited to the same percentage as the amount due from Worker's Sick Leave Tier Sick Leave Balance as of Separation Date Percentage of Balance Available for Cash Out 1 0 – 117 hours 50% 2 118 – 235 hours 55% 3 236 – 353 hours 60% 4 354 – 471 hours 65% 5 472 – 589 hours 70% 14 Compensation bears to the amount paid by the District. For example, an employee of the District entitled to $12.00 per day from the District received $9.00 per day from Worker's Compensation and the difference of $3.00 per day being paid by the District. In deducting from such employee's accumulated sick leave, such deduction shall be made daily on the same basis (i.e.; 1/4 of a day). Example and Intent - When an employee is out on an industrial injury, no charge will be made to leave benefits for the first three days. Any payments from workers’ compensation will be applied to re-purchase sick leave or vacation used. It is the intent to provide full benefits where possible and is not construed to allow the employee windfall income but to keep them whole. I. Catastrophic Leave: 1. Definition. Catastrophic Leave is an approved Leave of Absence due to a verifiable long-term illness or injury resulting in either physical or mental impairment. Job and/or personal stress (not the result of a diagnosed mental disorder) is specifically excluded from entitlement to Catastrophic Leave. A statement from the employee's treating physician, subject to review and approval by the District's Occupational Physician, is required. 2. Application. The employee on an approved Medical Leave of Absence who is receiving Catastrophic Leave can continue to earn benefit monies pursuant to the forty-one (41) hours per pay period requirement of the Flexible Benefit Plan set forth in section 8.01.A.3.b of the Personnel Rules. An employee receiving leave under this program is not eligible for receipt for any accruals such as vacation or sick leave. 3. Eligibility. a) Catastrophic leave is only available to employees on regular, non- probationary status with the District. 15 b) The employee must meet all of the following criteria before he/she becomes eligible for Catastrophic Leave donation i. Be on an approved medical leave of absence for at least thirty (30) calendar days (160 working hours) exclusive of an absence due to a work related injury and/or illness; and ii. Submission of a doctor's off-work order verifying the medical requirement to be off work; and iii. Exhaustion of all available leave balances. 4. Donation. a) Vacation, holiday, as well as compensatory time, may be donated by employees only on a voluntary and confidential basis, in increments of eight (8) hours, not to exceed a total of fifty percent (50%) of a donor employee's annual vacation, holiday, or compensatory time accrual per employee. The donee employee receiving the Catastrophic Leave will be taxed accordingly. b) The donation shall be for the donee employee's Catastrophic Leave only. The total donation allowed to any one employee of the District shall be limited to one thousand forty (1040) hours per fiscal year. c) Donor hours shall be contributed at the donor's hourly base salary rate and be converted to the donee's hourly base salary, exclusive in both instances of overtime, differentials, and the like, as the singular purpose of this program is to provide financial assistance to the donee employee. d) Any donated time unused by the donee employee for the medical emergency shall remain in the donee's accruals to be utilized as follows: 16 i. An employee on Catastrophic leave who has received the approval of his physician and the District's Occupational Health Physician to return to full time work shall have all unused Catastrophic Leave converted to an equal amount of sick leave which will be available to the employee according to the applicable provision of Section 7.02 of the Personnel Rules. ii. An employee on Catastrophic Leave who has received the approval of his physician and the District's Occupational Health Physician to return to work on a part time basis (less than the employee's normally scheduled hours of work per pay period) may record each pay period a combined total of work time and Catastrophic Leave not to exceed the lesser of eighty (80) hours or the employee's normally scheduled hours of work. iii. The General Manager may impose other terms and conditions on the donation as deemed appropriate, and may charge the Catastrophic Leave donation for the actual administrative costs incurred by the District. iv. Solicitation of donors shall be regulated by the District's Personnel Department. The names of the donors shall be confidential and the privacy rights of the donee shall be protected to the extent permitted by law. v. All donors and donees shall sign release forms to be prepared and retained by the District's Personnel Department. vi. An employee will not be allowed to donate hours of leave if his resulting sick leave balance drops below one hundred fifty-six (156) hours. 17 e) Implementation. The District shall meet and confer with representatives of the employees regarding issues arising from the implementation of this program. ARTICLE 16 VACATION A. Definition - Vacation with pay is a right earned as a condition of employment and made available in the interest of the District for the recreation, health and wellbeing of the employee, subject to approval by the General Manager or designee. B. Annual Vacation Leave Earned - Annual vacation leave is earned as follows: Years of District Service Accrual Earned Per Pay Period Accrual Earned Per Year Fewer than 3 years 4 hours 104 hrs/year 3-15 years 6.15 hours 160 hrs/year 15 years or more 8 hours 208 hrs/year 1. Annual vacation leave may be accumulated for use in succeeding years, but the maximum amount that can be carried over from one calendar year to the next is 300 hours. 2. A change in the rate of annual vacation leave accrual shall take effect in the pay period following the one in which the employee completed the required length of service. 3. Vacation leave shall only accrue upon completion of a full eighty (80) hour pay period. 4. New employees may begin utilizing their vacation accruals after six (6) months of service with the District, or upon supervisor approval. 18 C. Approval - Although annual vacation leave occurs as an earned right, the time at which vacation leave may be taken and the amount granted during any period are based on business need and are at the supervisor’s discretion. Vacation leave may be denied or asked to be postponed, however, no employee will lose earned vacation accruals based on business need. All accruals will remain until leave time is taken. Vacation leave must be approved in advance by the supervisor or designee except in cases of emergency. D. Vacation as Sick Leave - Vacation may be used in lieu of sick leave if the employee desires. E. Vacation Leave Cash Out - In lieu of taking annual vacation leave, employees have the ability to cash out an unlimited amount of vacation time provided that the employee has taken, or has approval to take, at least five (5) days of vacation that year and must maintain eighty (80) vacation hours on the books. Each such request is subject to the approval of the employee’s supervisor or designee. Only the General Manager or designee may approve requests outside of the stated conditions. F. Termination - Employees, upon separation from the District, shall be paid a cash lump sum at their then current salary rate as set forth in the Basic Salary Schedule for any unused annual vacation credits. ARTICLE 17 BEREAVEMENT LEAVE In the event of a death in a full-time employee’s immediate family, bereavement leave will be granted of up to five (5) cumulative working days per occurrence. For this section, immediate family is defined as spouse, child (natural, adopted or step) and parent (natural, adopted or step). In the event of a death in a full-time employee’s close family, bereavement leave will be granted of up to three (3) cumulative working days per occurrence. For this section, close family is defined as brother, sister, step- 19 brother, step-sister, grandparent, grandchild, aunt, uncle, niece, nephew, and present in-laws (father, mother, son, daughter, brother, sister). The General Manager or designee may authorize the use of Bereavement Leave for relationships other than those specified. If additional hours are required, the employee may elect to take these hours without pay or have the hours deducted from his/her accrued sick or vacation leave. District employees may be excused by their immediate supervisor to attend the memorial of a deceased District employee without the loss of pay. ARTICLE 18 HOLIDAYS A. The following are to be considered as approved holidays for the employees of the District and will be so ordered as follows: January 1 (New Years' Day) Third Monday in January (Martin Luther King’s Birthday) Third Monday in February (Presidents' Day) Last Monday in May (Memorial Day) July 4 (Independence Day) First Monday in September (Labor Day) Second Monday in October (Columbus Day) November 11 (Veteran's Day) Fourth Thursday in November (Thanksgiving Day) Fourth Friday in November (Day after Thanksgiving) December 24 (Christmas Eve) December 25 (Christmas Day) December 31 (New Year’s Eve) 20 In addition to the above-mentioned holidays, the District will be closed from Friday, December 22, 2017 through Monday, January 1, 2018. The District will reopen for business on Tuesday, January 2, 2018. A number of employees will be required to cover Standby duty in order to respond to customer calls/emergencies and District management staff will be available as needed. Note: The District holiday closure will be revaluated each year. When any of the legal holidays, other than those specifically set for a Monday, fall on Sunday, they will be observed the following Monday, and if any of such holidays fall on a Saturday, they will be observed the preceding Friday. ARTICLE 19 ABSENCE WITHOUT PAY Absence without pay is classified as leave without pay and shall be granted upon approval of the General Manager or designee. Sick and vacation leave accruals will cease when an employee is on an unpaid leave. ARTICLE 20 AUTHORIZED LEAVE A. Military Leave - Military leave and regulations for payment pertaining thereto shall be in accordance with the provisions of the Military and Veterans Code of the State of California. B. Jury Duty – Employees who are summoned to appear and serve for jury duty shall be entitled to up to eighty (80) hours of jury duty leave per year. Employees summoned will be required to produce a certificate from the court which shows the dates of attendance. If a summoned employee receives payment from the court for jury duty service, the payment must be transferred to the District’s Finance Department. The employee will then receive his or her regular rate of pay for the jury service. The same guidelines apply to employees who have been subpoenaed as a witness in a court matter. 21 ARTICLE 21 PROBATIONARY PERIOD The probationary period for newly hired District employees shall be twelve (12) months. The probationary period for internally promoted employees shall be six (6) months. If the probationary employee is absent during this period, their probationary period may be extended by an equivalent amount of time. ARTICLE 22 SEPARABILITY If any portion of this MOU is held to be invalid by a court of competent jurisdiction, the remainder of this MOU shall not be affected thereby. Upon issuance of the final determination of the court, the parties agree to meet and confer concerning only those matters directly affected by the decision. ARTICLE 23 UNIFORMS The District will provide field employee uniforms and bear the cost of the regular cleaning, maintenance and replacement of uniforms. The District will provide a $300.00 allowance per year for the purchase of safety-toed shoes required to be worn by employees. The shoe allowance may also be used toward re-soling existing safety-toes shoes, toward any necessary shoe repair, and toward related accessories such as laces, inserts, and protectant spray. The District will provide uniform shirts for Customer Service Representatives, Engineering Technicians, and other office staff as designated. These employees will have the option of selecting their choice of style and color from a District designated list and will be provided a sufficient number of shirts to get them through the work week without laundering. Shirts will be replaced on an as- needed basis. 22 ARTICLE 24 EMPLOYEE RETENTION INCENTIVE PROGRAM This program will be eliminated effective July 1, 2014. Employees currently participating in the program on the date of the contract’s approval will be grandfathered in and continue at their current status and will receive one annual lump sum payment the first pay period in December of each year as follows: After 10 years through the end of 14th year $125 After 15 years through end of the 19th year $250 After 20 years through the end of the 24th year $375 After 25 years $500 In the event an eligible employee retires from District service prior to the first pay period in December of any year, employee will receive the Employee Retention Incentive for that year at the time of retirement. ARTICLE 25 RETIREE HEALTH INSURANCE The District will pay the Public Employees' Medical & Hospital Care Act (“PEMHCA”) minimum contribution for retirees enrolled in the CalPERS Health Program through the District. This amount is set by CalPERS annually. For 2017, the minimum contribution is $128.00 per month. For 2018, the minimum contribution is $133.00 per month. Effective for the term of this contract, in addition to the PEMCHA minimum contribution, the District shall reimburse eligible retirees any additional premium costs up to a maximum of $700.00 per month until the retiree becomes eligible for Medicare. To become an eligible retiree, an employee must: 23 1. Retire during the term of this contract; 2. Retire from the District with a minimum of 10 years of District service; and 3. Enroll in the CalPERS Health Program through the District. The eligible retiree will receive the last reimbursement from the District the month they reach the age of eligibility for Medicare. In the event the eligible retiree dies before reaching the age of eligibility for Medicare, the District will extend this benefit to the surviving spouse until the spouse reaches the age of eligibility for Medicare. ARTICLE 26 RETIREMENT - PERS CONTRACT 2.7% @ 55 - The District has negotiated with CalPERS to provide the “2.7% @ 55” Retirement Formula to employees that are considered classic members under the Public Employees’ Pension Reform Act of 2013 (PEPRA). Classic members are defined as members of the CalPERS retirement system or any other public retirement system that is subject to reciprocity. Classic members contribute the full employee share of 8% of their annual salary. 2% @ 62 – New members under PEPRA are provided the “2% @ 62” retirement formula with a 6.5% employee contribution. New members are defined as employees who were not members of a public retirement system prior to January 1, 2013; or members of a public retirement system that were not subject to reciprocity with the new employer’s plan; or anyone who was an active member of a retirement system and has a break in service six months or more. 24 *** MOU TERM: July 1, 2017 through June 30, 2020 AGREED ON: June 28, 2017 EVWDEP: EVWD: Dale Barlow, EVWDEP Rep Ron Coats, Chairman of the Board Kathleen Burke, EVWDEP Rep John Mura, General Manager/CEO Ed King, EVWDEP Rep 25 26 27 28 29 30 31 32 33 TABLE OF CONTENTS Section TITLE PAGE NO. 1 Non Represented Classifications 1 2 Duration 2 3 Compensation 2 4 Working Out of Classification 4 5 Health and Welfare Benefits 5 6 Deferred Compensation Match 7 7 Computer Purchase Program 7 8 Vehicle Allowance 7 9 Cellular Phone Allowance 8 10 Certification Incentive Pay 8 11 Hours of Work 9 12 Overtime 11 13 Sick Leave 11 14 Vacation 17 15 Administration Leave 19 16 Bereavement Leave 20 17 Holidays 20 18 Absence Without Pay 21 19 Authorized Leave 21 20 Probationary Period 22 21 Uniforms 22 22 Employee Retention Incentive Program 23 23 Retiree Health Insurance 23 24 Retirement – PERS Contract 24 APPENDICES Appendix A Salary Schedule 26 Appendix B Salary Range 29 1 Non-Represented Employees’ Salaries, Benefits and Related Programs July 1, 2017 through June 30, 2020 SECTION 1 NON-REPRESENTED CLASSIFICATIONS The District’s non-represented job classifications include all job classifications and employees not represented by an exclusively recognized employee organization. The District’s Board of Directors may approve new classifications to be added to the non-represented classification listing below: General/Confidential (Non-Exempt) Management (Exempt) Accountant Business Services Manager Conservation Coordinator Construction Project Coordinator Field Service Supervisor Senior Engineer Information Systems Technician Public Affairs Specialist Senior Management (Exempt) Senior Administrative Assistant District Clerk Water Production Supervisor Human Resources/Risk and Safety Manager Information Technology Manager Professional/Supervisory (Exempt) Operations Manager Associate Engineer Public Affairs/Conservation Manager Customer Service Supervisor Network Administrator Executive Management (Exempt) Chief Financial Officer Director of Engineering and Operations (Unclassified/At-Will) 2 SECTION 2 DURATION This Non-Represented Employees’ Salaries, Benefits and Related Programs document shall remain in full force and effect up to and including June 30, 2020. However, if a successor document is not approved by June 30, 2020, this document shall remain in force until a successor document is approved. SECTION 3 COMPENSATION Cost of Living Adjustments (COLAs) – The following COLAs will be implemented during the duration of this three (3) year document: Year 1 – Three percent (3%) COLA effective July 8, 2017 Year 2 – Three percent (3%) COLA effective July 7, 2018 Year 3 – Three percent (3%) COLA effective July 6, 2019 Salary Schedule – Refer to Appendix A for the Salary Schedule effective July 8, 2017. Refer to Appendix B for Salary Range Tables including 3% COLA each year for the term of this three (3) year contract. Pay for Performance – The Pay for Performance Program is a discretionary incentive program that allows for up to an additional five percent (5%) of base salary, aligned with the performance review cycle, to be paid out annually in lump sum form for commendable performance. Employees are eligible for the program upon completion of probation. Pay for Performance is utilized for those employees whose performance consistently meets or exceeds expectations as defined by efforts toward divisional and personal goal achievement, successful ratings on evaluation core competencies, and for those who have been identified as giving world class 3 customer service, have established more efficient business processes, or generate ideas resulting in cost savings for the District. An employee must at least “meet expectations” in all core competencies on their annual Performance Evaluation to be eligible for this program. It is at the supervisor’s discretion to determine the percentage recommendation for their staff’s Pay for Performance incentive. Also, an employee may not have received formal discipline during the rating period to be considered eligible for this program. Employees with performance that either “Meets Expectations,” “Exceeds Expectations,” or “Far Exceeds Expectations,” will have the opportunity to participate in the Pay for Performance Program and have the potential to earn a lump sum payment of up to 5% of base salary. If base pay is above the maximum: Employees with pay frozen at or above the maximum of their range and perform at “Meets Expectations,” “Exceeds Expectations,” or “Far Exceeds Expectations,” will have the opportunity to participate in the Pay for Performance Program and have the potential to earn a lump sum payment up to 5% above the range maximum. Pay for Performance Evaluation Procedure - The process for the Pay for Performance evaluation is as follows: 1. Core competencies, goals and objectives will be determined at the beginning of the fiscal year. 2. Supervisors and managers will meet with staff to communicate Department and individual goals as well as recommended actions staff should take to achieve these goals. 3. Prior to the end of the rating period (June 30th), staff will be asked to complete a self-evaluation relating to the core competencies, goals and objectives, and overall performance for their supervisor to review. 4 4. At the end of the rating period, after self-evaluations are submitted, a performance evaluation will be completed to document each employee’s accomplishments relative to the core competencies, goals and objectives, and overall employee performance. This will assist the supervisor in determining eligibility and the percentage recommendation for the Pay for Performance incentive. 5. The General Manager or designee will review all incentive recommendations and give final approval. 6. Incentive checks will be distributed on the first Friday of the new fiscal year, unless July 4th happens to fall on the first Friday of the new fiscal year then the incentive check will be distributed on the second Friday of the fiscal year. 7. If an employee does not agree with the incentive percentage recommended by their supervisor, they may speak with Human Resources, and if the issue is not resolved, they may request a meeting with the General Manager. SECTION 4 WORKING OUT OF CLASSIFICATION Employees in the unit assigned to work in a higher classification in excess of ten (10) consecutive working days, upon supervisor recommendation, will be granted a five percent (5%) salary increase or the "A" step of the higher classification, whichever is greater, for all time worked in the higher classification beginning with the eleventh (11th) work day, except for an employee in a trainee status. Increases in pay may be granted to recognize the temporary assignment of more difficult duties requiring a greater level of skills. "Selected positions may be authorized additional compensation, rather than being reclassified to a higher level". Temporary assignments as provided herein will not exceed one (1) year 5 and shall not be used to avoid reclassification of the affected position. Increases in pay shall be temporary so long as the higher-level duties are assigned and performed. All such increases shall be authorized by the General Manager and shall not affect an employee's step advancement in the base range. SECTION 5 HEALTH AND WELFARE BENEFITS Percentage Based Employer Contribution Plan – Effective January 1, 2017, the Flexible Benefit Plan was eliminated and replaced by the Percentage Based Employer Contribution Plan (PBECP). A. PEMHCA Contribution – The District will pay the Public Employees' Medical & Hospital Care Act (“PEMHCA”) minimum contribution for employees enrolled in the CalPERS Health Program through the District. This amount is set by CalPERS annually. For 2017, the minimum contribution is $128.00 per month. For 2018, the minimum contribution is $133.00 per month. B. Health Insurance – In addition to the PEMCHA minimum contribution, all non-represented full-time employees shall be eligible to participate in the PBECP. The PBECP covers the difference between the PEMHCA minimum contribution and ninety-five percent (95%) of health benefit premiums for employees in the Professional/Supervisory and Management classifications and their qualified dependents, and ninety percent (90%) of health benefit premiums for employees in the General/Confidential classifications and their qualified dependents, up to the cost of the benchmark plan (Blue Shield for the term of this contract) for the benefit year. Employees will be responsible for covering the remaining percentage of the health benefit premium costs, and any additional costs incurred by selecting a health plan above the benchmark plan. C. Dental and Vision Insurance - The District will cover 100% of the employee’s selected group dental and vision plans for employees and their qualified dependents. 6 D. Declination/Withdrawal Provision- A declination/withdrawal provision is included to allow employees with alternative coverage to opt-out of the District’s health benefits plan. Employees must show proof of alternative coverage annually. There is no cash-in-lieu provision associated with declining the District’s benefits. Life Insurance – The District will pay the premiums for Life and AD&D Insurance Policies for all non-represented employees as designated below: General/Confidential $100,000 Policy Professional/Supervisory $100,000 Policy Management $100,000 Policy Senior Management $150,000 Policy Executive Management $150,000 Policy Coverage During Leave of Absence – In accordance with Section 7.03 – E of the District’s Personnel Rules, the District will continue contributions for health, dental, vision, and life insurance premiums for a period not to exceed four (4) months during any approved medical leave, or during any period in which the employee has accrued leave time and is utilizing this leave time, whichever occurs later. If an employee wishes to continue coverage after the four-month period, the employee will be responsible for paying the District the premiums one month ahead of coverage. Flexible Spending Account - The District shall offer a Flexible Spending Account for the benefit of its employees. This program is in accordance with the provisions of IRS Publication 969. 7 SECTION 6 DEFERRED COMPENSATION MATCH The District will match monthly contributions for non-represented employees currently enrolled and participating in the 457 Deferred Compensation plan as designated below: General/Confidential $125/month Professional/Supervisory $125/month Management $150/month Senior Management $175/month Executive Management $175/month SECTION 7 COMPUTER PURCHASE PROGRAM Full-time, non-probationary employees will have the opportunity to participate in the Computer Purchase Program which provides an interest free loan where employees can choose from a selection of computers/laptops/tablets/printers purchased by the District to be paid back through payroll deduction. Please reference the District’s Computer Purchase Program document which sets guidelines and limitations for the terms and conditions of the program. SECTION 8 VEHICLE ALLOWANCE A monthly vehicle allowance will be provided as designated below. Senior Management $250/month Executive Management $500/month 8 The following classifications have employees that have been grandfathered in to the vehicle allowance. Once these employees separate from the District, the vehicle allowance will no longer be offered to these classifications: 1. Senior Engineer 2. Construction Project Coordinator All non-represented classifications not receiving a vehicle allowance will be given authorization to drive a District pool vehicle for District business. SECTION 9 CELLULAR PHONE ALLOWANCE The District recognizes a need for Senior and Executive Management to be accessible at all times. To meet that need, employees in such classifications will be given the option of a District owned cell phone or a cell phone allowance. Policy 4.1, Senior and Executive Management Cellular Telephone Policy, of the Administrative Policies and Programs Manual, sets forth the monthly allowance amount and the guidelines of the program. The allowance amount for the duration of this document is $100 per month. All non-represented classifications not covered under the above mentioned policy, which need a cell phone to conduct District business, will be issued a District owned cell phone. SECTION 10 CERTIFICATION INCENTIVE PAY Sewer Response Team – This program will be eliminated effective July 1, 2014, as the District has identified that compensation for responding to sewer emergencies is included in Stand-by Pay and in the overtime pay employees receive for responding to such emergencies. Employees currently participating in the program on the date of the contract’s approval will be grandfathered in and continue to receive the salary differential of two and one-half percent (2.5%). 9 Commercial Drivers - This program will be eliminated effective July 1, 2014, as the District has identified through market analysis that obtaining a Commercial License is a condition of employment for specified positions and the salary range for those specified positions is inclusive of compensation for that license. Employees currently participating in the program on the date of the contract’s approval will be grandfathered in and continue to receive the salary differential of two percent (2%). Water Distribution and Water Treatment Incentive Pay Program – Employees working in the Operations Department are eligible to receive a one-time certification incentive payment of $1,500 for each certification obtained of grade two or higher water distribution and treatment certifications. Certifications must be job related and approved by the employee’s supervisor. Employees must submit an official copy of the certification in order to receive the Incentive Pay. Distribution and Production Operators Differentials – These programs will be eliminated effective July 1, 2017 and replaced by the Water Distribution and Water Treatment Incentive Pay Program. Employees previously receiving differential pay based on a percentage of their pay per certification, or employees who passed the certification test prior to July 1, 2017, will be grandfathered into the program. Those employees grandfathered into the program will no longer receive the differential as a percentage of their pay, however, they will receive the equivalent monetary value each pay period equal to that received in the last pay period of the 2016/17 Fiscal Year and the pay will be frozen at that amount. This grandfathered differential pay will continue to be considered Pensionable Compensation under CalPERS regulations. SECTION 11 HOURS OF WORK Work Hours - Work hours are the hours an employee is assigned to perform duties on behalf of the District. All full-time District employees (unless otherwise approved by the General Manager or designee) shall work a 9/80 work schedule, which is 10 worked as one week at 36 hours and one week at 44 hours. The full eighty hour pay period is worked in nine (9) days rather than ten (10). Overtime is paid for hours in excess of nine (9) hours worked per day or eight (8) hours on employee’s non- flex day; not 40 hours per week. With the 9/80 work schedule, the work week period will begin each Saturday and end the following Friday. Employees shall work Monday through Thursday, for nine (9) hours and alternating Fridays for eight (8) hours. Employees will be scheduled for two days off during one calendar week and three days off during alternating calendar weeks. This additional day off shall be referred to as a flex day. Employee work hours shall be established by the District and are subject to change based upon the needs of the District and upon a minimum of two (2) weeks notification to employees. To ensure quality service levels to the District’s operations, the following working schedules have been established for staff in the office and field: Office Staff: Monday through Thursday: 7:30 am – 5:30 pm Alternating Friday 7:30 am – 4:30 pm Field Staff: Monday through Thursday 6:30 am – 4:00 pm Alternating Friday 6:30 am – 3:00 pm Work Periods - If District Management concludes that the 9/80 work schedule is not conducive to District operations, the District will meet and confer on the impact of discontinuing the program. Thirty days’ notice will be provided to employees prior to the termination of a 9/80 schedule. 11 SECTION 12 OVERTIME All time worked in excess of the established standard work week shall be considered as approved overtime. Overtime will be compensated at one and one- half (1-1/2) times the employee's base hourly rate. Overtime shall be reported and compensated in fifteen (15) minute increments. SECTION 13 SICK LEAVE A. Definition - Sick leave is an insurance or protection to be granted in circumstances of adversity to promote the health and welfare of the individual employee. It is not an earned right to time off from work. Sick leave permits the employee to be absent from duty without the loss of pay when they are incapacitated by reason of illness, injury or pregnancy and confinement or when a member of the immediate family must be attended to by the employee; or when an employee has been exposed to a contagious disease and his presence on the job might endanger fellow workers. When approved in advance, sick leave may also be used for medical, dental or optical examinations or treatments. Maternity leave is chargeable to sick leave, annual vacation and leave without pay as appropriate. To support a request for maternity sick leave, the employee must submit a statement by her attending physician showing the expected period during which she will be incapacitated from the performance of official duties. For purposes of "attended to" (cared for) as defined herein, immediate family refers to spouse, mother, father, son, daughter, step relations, ward and, when residing in the employee's home, sister and brother. Time off for an employee to attend to a member of the immediate family shall be limited to a maximum of six and one-half (6.5) days (52 hours) per calendar year. Additional time may be authorized by the General Manager based on a case-by-case review of the employees’ sick leave usage. 12 B. Initial Credit and Accumulation – Sick leave is earned at the rate of 4.5 hours (one half day) for each full bi-weekly pay period (13 days per year), and it can be accumulated without limitation. C. Notice of Sickness - When the employee is incapacitated from the performance of his or her duties for reasons that entitle him or her the use of sick leave, he or she must notify his or her department supervisor or other supervisor within thirty (30) minutes of their regular start time. D. Review - An absence of sick leave for more than five (5) workdays must be supported by a medical certificate. E. Improper Use - If, after reviewing an employee's record of sick leave usage, the District believes sufficient cause exists to suspect abuse of sick leave, a medical certificate may be required for any subsequent use of sick leave. F. Sick Leave Cash Out - Employees may cash out accrued sick leave balances as follows: 1. Employees may request reimbursement for up to three hundred (300) hours of accrued sick leave per calendar year provided, however, that a minimum of 160 hours (four weeks) accrual is retained after said reimbursement. All requests for reimbursement must be submitted to Payroll no later than December 1st of each year. 13 G. Sick Leave Cash Out at Separation – After ten (10) years of continuous service with the District, employees separating from employment are eligible to cash out a percentage of their sick leave accrual based on the cash out tiers below: 1. Sick leave tiers are based on the number of hours that can be accrued in a fiscal year (117 hours per year). Employees may accrue an unlimited amount of sick leave, however, the maximum hours an employee can cash out at retirement is 589 hours (equivalent of 5 years’ accrual). 2. Employees who retire from the District may apply remaining sick leave balances toward CalPERS for retirement credit. 3. In the event of an employee’s death, cash payment of remaining sick leave balances will be made to the employee’s estate based on the designated cash out tiers. In the event of death resulting from occupational injury, cash payment shall be made to the employee's estate of 100% of remaining sick leave balances. H. Worker's Compensation - Employees shall be provided with up to a maximum of three consecutive days of un-chargeable leave following an occupational injury unless otherwise required by the Worker's Compensation Act of the State of California. Sick Leave Tier Sick Leave Balance as of Separation Date Percentage of Balance Available for Cash Out 1 0 – 117 hours 50% 2 118 – 235 hours 55% 3 236 – 353 hours 60% 4 354 – 471 hours 65% 5 472 – 589 hours 70% 14 The deduction by the District from the employee's accumulated sick leave shall be limited to the same percentage as the amount due from Worker's Compensation bears to the amount paid by the District. For example, an employee of the District entitled to $12.00 per day from the District received $9.00 per day from Worker's Compensation and the difference of $3.00 per day being paid by the District. In deducting from such employee's accumulated sick leave, such deduction shall be made daily on the same basis (i.e.; 1/4 of a day). Example and Intent - When an employee is out on an industrial injury, no charge will be made to leave benefits for the first three days. Any payments from workers’ compensation will be applied to re-purchase sick leave or vacation used. It is the intent to provide full benefits where possible and is not construed to allow the employee windfall income but to keep them whole. I. Catastrophic Leave: 1. Definition. Catastrophic Leave is an approved Leave of Absence due to a verifiable long-term illness or injury resulting in either physical or mental impairment. Job and/or personal stress (not the result of a diagnosed mental disorder) is specifically excluded from entitlement to Catastrophic Leave. A statement from the employee's treating physician, subject to review and approval by the District's Occupational Physician, is required. 2. Application. The employee on an approved Medical Leave of Absence who is receiving Catastrophic Leave can continue to earn benefit monies pursuant to the forty-one (41) hours per pay period requirement of the Flexible Benefit Plan set forth in section 8.01.A.3.b of the Personnel Rules. An employee receiving leave under this program is not eligible for receipt for any accruals such as vacation or sick leave. 15 3. Eligibility. a) Catastrophic leave is only available to employees on regular, non- probationary status with the District. b) The employee must meet all of the following criteria before he/she becomes eligible for Catastrophic Leave donation i. Be on an approved medical leave of absence for at least thirty (30) calendar days (160 working hours) exclusive of an absence due to a work related injury and/or illness; and ii. Submission of a doctor's off-work order verifying the medical requirement to be off work; and iii. Exhaustion of all available leave balances. 4. Donation. a) Vacation, holiday, as well as compensatory time, may be donated by employees only on a voluntary and confidential basis, in increments of eight (8) hours, not to exceed a total of fifty percent (50%) of a donor employee's annual vacation, holiday, or compensatory time accrual per employee. The donee employee receiving the Catastrophic Leave will be taxed accordingly. b) The donation shall be for the donee employee's Catastrophic Leave only. The total donation allowed to any one employee of the District shall be limited to one thousand forty (1040) hours per fiscal year. c) Donor hours shall be contributed at the donor's hourly base salary rate and be converted to the donee's hourly base salary, exclusive in both instances of overtime, differentials, and the like, as the singular purpose of this program is to provide financial assistance to the donee employee. 16 d) Any donated time unused by the donee employee for the medical emergency shall remain in the donee's accruals to be utilized as follows: i. An employee on Catastrophic leave who has received the approval of his physician and the District's Occupational Health Physician to return to full time work shall have all unused Catastrophic Leave converted to an equal amount of sick leave which will be available to the employee according to the applicable provision of Section 7.02 of the Personnel Rules. ii. An employee on Catastrophic Leave who has received the approval of his physician and the District's Occupational Health Physician to return to work on a part time basis (less than the employee's normally scheduled hours of work per pay period) may record each pay period a combined total of work time and Catastrophic Leave not to exceed the lesser of eighty (80) hours or the employee's normally scheduled hours of work. iii. The General Manager may impose other terms and conditions on the donation as deemed appropriate, and may charge the Catastrophic Leave donation for the actual administrative costs incurred by the District. iv. Solicitation of donors shall be regulated by the District's Personnel Department. The names of the donors shall be confidential and the privacy rights of the donee shall be protected to the extent permitted by law. 17 v. All donors and donees shall sign release forms to be prepared and retained by the District's Personnel Department. vi. An employee will not be allowed to donate hours of leave if his resulting sick leave balance drops below one hundred fifty-six (156) hours. e) Implementation. The District shall meet and confer with representatives of the employees regarding issues arising from the implementation of this program. SECTION 14 VACATION A. Definition - Vacation with pay is a right earned as a condition of employment and made available in the interest of the District for the recreation, health and well being of the employee, subject to approval by the General Manager or designee. B. Annual Vacation Leave Earned - Annual vacation leave is earned as follows: Years of District Service Accrual Earned Per Pay Period Accrual Earned Per Year Fewer than 3 years 4 hours 104 hrs/year 3-15 years 6.15 hours 160 hrs/year 15 years or more 8 hours 208 hrs/year 1. Annual vacation leave may be accumulated for use in succeeding years, but the maximum amount that can be carried over from one calendar year to the next is 300 hours. 18 2. A change in the rate of annual vacation leave accrual shall take effect in the pay period following the one in which the employee completed the required length of service. 3. Vacation leave shall only accrue upon completion of a full eighty (80) hour pay period. 4. New employees may begin utilizing their vacation accruals after six (6) months of service with the District, or upon supervisor approval. C. Approval - Although annual vacation leave occurs as an earned right, the time at which vacation leave may be taken and the amount granted during any period are based on business need and are at the supervisor’s discretion. Vacation leave may be denied or asked to be postponed, however, no employee will lose earned vacation accruals based on business need. All accruals will remain until leave time is taken. Vacation leave must be approved in advance by the supervisor or designee except in cases of emergency. D. Vacation as Sick Leave - Vacation may be used in lieu of sick leave if the employee desires. E. Vacation Leave Cash Out - In lieu of taking annual vacation leave, employees have the ability to cash out an unlimited amount of vacation time provided that the employee has taken, or has approval to take, at least five (5) days of vacation that year and must maintain eighty (80) vacation hours on the books. Each such request is subject to the approval of the employee’s supervisor or designee. Only the General Manager or designee may approve requests outside of the stated conditions. F. Termination - Employees, upon separation from the District, shall be paid a cash lump sum at their then current salary rate as set forth in the Basic Salary Schedule for any unused annual vacation credits. 19 SECTION 15 ADMINISTRATIVE LEAVE Non-represented employees in professional/supervisory, management, senior management, and executive management classifications will receive paid administrative leave as designated below: Professional/Supervisory 40 hours per fiscal year Management 48 hours per fiscal year Senior Management 56 hours per fiscal year Executive Management 64 hours per fiscal year New employees’ in one of the above non-represented classifications will accrue administrative leave on a prorated basis. The proration will be based on the fiscal year quarter in which the employee was hired. The following are the proration percentages: Month of Hire Percentage Table July – September 100% October – December 75% January – March 50% April – June 25% 20 SECTION 16 BEREAVEMENT LEAVE In the event of a death in a full-time employee’s immediate family, bereavement leave will be granted of up to five (5) cumulative working days per occurrence. For this section, immediate family is defined as spouse, child (natural, adopted or step) and parent (natural, adopted or step). In the event of a death in a full-time employee’s close family, bereavement leave will be granted of up to three (3) cumulative working days per occurrence. For this section, close family is defined as brother, sister, step-brother, step-sister, grandparent, grandchild, aunt, uncle, niece, nephew, and present in-laws (father, mother, son, daughter, brother, sister). The General Manager or designee may authorize the use of Bereavement Leave for relationships other than those specified. If additional hours are required, the employee may elect to take these hours without pay or have the hours deducted from his/her accrued sick or vacation leave. District employees may be excused by their immediate supervisor to attend the memorial of a deceased District employee without the loss of pay. SECTION 17 HOLIDAYS A. The following are to be considered as approved holidays for the employees of the District and will be so ordered as follows: January 1 (New Years' Day) Third Monday in January (Martin Luther King’s Birthday) Third Monday in February (Presidents' Day) Last Monday in May (Memorial Day) July 4 (Independence Day) First Monday in September (Labor Day) Second Monday in October (Columbus Day) 21 November 11 (Veteran's Day) Fourth Thursday in November (Thanksgiving Day) Fourth Friday in November (Day after Thanksgiving) December 24 (Christmas Eve) December 25 (Christmas Day) December 31 (New Year’s Eve) In addition to the above-mentioned holidays, the District will be closed from Friday, December 22, 2017 through Monday, January 1, 2018. The District will reopen for business on Tuesday, January 2, 2018. A number of employees will be required to cover Standby duty in order to respond to customer calls/emergencies and District management staff will be available as needed. Note: The District holiday closure will be revaluated each year. When any of the legal holidays, other than those specifically set for a Monday, fall on Sunday, they will be observed the following Monday, and if any of such holidays fall on a Saturday, they will be observed the preceding Friday. SECTION 18 ABSENCE WITHOUT PAY Absence without pay is classified as leave without pay and shall be granted upon approval of the General Manager or designee. Sick and vacation leave accruals will cease when an employee is on an unpaid leave. SECTION 19 AUTHORIZED LEAVE A. Military Leave - Military leave and regulations for payment pertaining thereto shall be in accordance with the provisions of the Military and Veterans Code of the State of California. 22 B. Jury Duty – Employees who are summoned to appear and serve for jury duty shall be entitled to up to eighty (80) hours of jury duty leave per year. Employees summoned will be required to produce a certificate from the court which shows the dates of attendance. If a summoned employee receives payment from the court for jury duty service, the payment must be transferred to the District’s Finance Department. The employee will then receive his or her regular rate of pay for the jury service. The same guidelines apply to employees who have been subpoenaed as a witness in a court matter. SECTION 20 PROBATIONARY PERIOD The probationary period for newly hired District employees shall be twelve (12) months. The probationary period for internally promoted employees shall be six (6) months. If the probationary employee is absent during this period, their probationary period may be extended by an equivalent amount of time. SECTION 21 UNIFORMS The District will provide field employee uniforms and bear the cost of the regular cleaning, maintenance and replacement of uniforms. The District will provide a $300.00 allowance per year for the purchase of safety-toed shoes required to be worn by employees. The shoe allowance may also be used toward re-soling existing safety-toes shoes, toward any necessary shoe repair, and toward related accessories such as laces, inserts, and protectant spray. The District will provide uniform shirts for Customer Service Representatives, Engineering Technicians, and other office staff as designated. These employees will have the option of selecting their choice of style and color from a District designated list and will be provided a sufficient number of shirts to get them through the work week without laundering. Shirts will be replaced on an as- needed basis. 23 SECTION 22 EMPLOYEE RETENTION INCENTIVE PROGRAM This program will be eliminated effective July 1, 2014. Employees currently participating in the program on the date of the contract’s approval will be grandfathered in and continue at their current status and will receive one annual lump sum payment the first pay period in December of each year as follows: After 10 years through the end of 14th year $125 After 15 years through end of the 19th year $250 After 20 years through the end of the 24th year $375 After 25 years $500 In the event an eligible employee retires from District service prior to the first pay period in December of any year, employee will receive the Employee Retention Incentive for that year at the time of retirement. SECTION 23 RETIREE HEALTH INSURANCE The District will pay the Public Employees' Medical & Hospital Care Act (“PEMHCA”) minimum contribution for retirees enrolled in the CalPERS Health Program through the District. This amount is set by CalPERS annually. For 2017, the minimum contribution is $128.00 per month. For 2018, the minimum contribution is $133.00 per month. Effective for the term of this contract, in addition to the PEMCHA minimum contribution, the District shall reimburse eligible retirees any additional premium costs up to a maximum of $700.00 per month until the retiree becomes eligible for Medicare. To become an eligible retiree, an employee must: 24 1. Retire during the term of this contract; 2. Retire from the District with a minimum of 10 years of District service; and 3. Enroll in the CalPERS Health Program through the District. The eligible retiree will receive the last reimbursement from the District the month they reach the age of eligibility for Medicare. In the event the eligible retiree dies before reaching the age of eligibility for Medicare, the District will extend this benefit to the surviving spouse until the spouse reaches the age of eligibility for Medicare SECTION 24 RETIREMENT - PERS CONTRACT 2.7% @ 55 - The District has negotiated with CalPERS to provide the “2.7% @ 55” Retirement Formula to employees that are considered classic members under the Public Employees’ Pension Reform Act of 2013 (PEPRA). Classic members are defined as members of the CalPERS retirement system or any other public retirement system that is subject to reciprocity. Classic members contribute the full employee share of 8% of their annual salary. 2% @ 62 – New members under PEPRA are provided the “2% @ 62” retirement formula with a 6.5% employee contribution. New members are defined as employees who were not members of a public retirement system prior to January 1, 2013; or members of a public retirement system that were not subject to reciprocity with the new employer’s plan; or anyone who was an active member of a retirement system and has a break in service six months or more. 25 *** AGREED ON: July 12, 2017 Ron Coats, Chairman of the Board John Mura, General Manager/CEO 26 27 28 29 30 31 32 33 34 Class Title Tier Range A B C D E A B C D E A B C D E Accountant G 31 35.75 36.65 37.56 38.50 39.47 6,197 6,353 6,510 6,673 6,841 74,360 76,232 78,125 80,080 82,098 Accounting Technician H 19 26.60 27.25 27.92 28.61 29.36 4,611 4,723 4,839 4,959 5,089 55,328 56,680 58,074 59,509 61,069 Administrative Assistant H 22 28.61 29.36 30.08 30.84 31.60 4,959 5,089 5,214 5,346 5,477 59,509 61,069 62,566 64,147 65,728 Business Services Manager M 46 51.80 53.08 54.41 55.76 57.17 8,979 9,201 9,431 9,665 9,909 107,744 110,406 113,173 115,981 118,914 Chief Financial Officer E 66 84.85 86.97 89.15 91.38 93.66 14,707 15,075 15,453 15,839 16,234 176,488 180,898 185,432 190,070 194,813 Community Relations Intern PT Y 12.00 2,080 24,960 Community Relations Officer P 40 44.65 45.76 46.92 48.09 49.29 7,739 7,932 8,133 8,336 8,544 92,872 95,181 97,594 100,027 102,523 Conservation Coordinator G 35 39.47 40.46 41.47 42.50 43.57 6,841 7,013 7,188 7,367 7,552 82,098 84,157 86,258 88,400 90,626 Construction Project Coordinator M 36 40.46 41.47 42.50 43.57 44.65 7,013 7,188 7,367 7,552 7,739 84,157 86,258 88,400 90,626 92,872 *Construction Project Coordinator M Y 58.60 10,157 121,888 Customer Service Representative I H 11 21.83 22.37 22.93 23.50 24.09 3,784 3,877 3,975 4,073 4,176 45,406 46,530 47,694 48,880 50,107 Customer Service Representative II H 16 24.69 25.30 25.93 26.59 27.25 4,280 4,385 4,495 4,609 4,723 51,355 52,624 53,934 55,307 56,680 Customer Service Representative III H 19 26.60 27.25 27.92 28.61 29.36 4,611 4,723 4,839 4,959 5,089 55,328 56,680 58,074 59,509 61,069 Customer Service Supervisor P 39 43.57 44.65 45.76 46.92 48.09 7,552 7,739 7,932 8,133 8,336 90,626 92,872 95,181 97,594 100,027 Director of Engineering & Operations A 66 84.85 86.97 89.15 91.38 93.66 14,707 15,075 15,453 15,839 16,234 176,488 180,898 185,432 190,070 194,813 District Clerk S 41 45.76 46.92 48.09 49.29 50.51 7,932 8,133 8,336 8,544 8,755 95,181 97,594 100,027 102,523 105,061 *District Clerk S Y 56.63 9,816 117,790 Engineering Technician II H 26 31.60 32.39 33.21 34.04 34.88 5,477 5,614 5,756 5,900 6,046 65,728 67,371 69,077 70,803 72,550 Environmental Coordinator P 40 44.65 45.76 46.92 48.09 49.29 7,739 7,932 8,133 8,336 8,544 92,872 95,181 97,594 100,027 102,523 A = At-Will PT = Part-Time *= E = Executive Management (Exempt)P = Professional/Supervisory (Exempt) S = Senior Management (Exempt)G = General/Confidential (Non-Exempt) M = Management (Exempt)H = Hourly-EVWDEP Represented (Non-Exempt) Hourly Salary Range Monthly Salary Range Annual Salary Range Steps Steps Steps Y-Rate (Due to results of 2014 Compensation Analysis, base salary is set above the maximum for the range assigned) SALARY SCHEDULE Effective July 8, 2017 Page 1 of 3 Appendix A Class Title Tier Range A B C D E A B C D E A B C D E Equipment Mechanic II H 25 30.83 31.60 32.39 33.21 34.04 5,344 5,477 5,614 5,756 5,900 64,126 65,728 67,371 69,077 70,803 Equipment Mechanic III H 27 32.39 33.21 34.04 34.88 35.75 5,614 5,756 5,900 6,046 6,197 67,371 69,077 70,803 72,550 74,360 Facilities Maintenance Coordinator H 34 38.50 39.47 40.46 41.47 42.50 6,673 6,841 7,013 7,188 7,367 80,080 82,098 84,157 86,258 88,400 Field Service Representative H 22 28.61 29.36 30.08 30.84 31.60 4,959 5,089 5,214 5,346 5,477 59,509 61,069 62,566 64,147 65,728 Field Service Supervisor G 39 43.57 44.65 45.76 46.92 48.09 7,552 7,739 7,932 8,133 8,336 90,626 92,872 95,181 97,594 100,027 Field Service Worker I H 17 25.30 25.93 26.59 27.25 27.92 4,385 4,495 4,609 4,723 4,839 52,624 53,934 55,307 56,680 58,074 Field Service Worker II H 22 28.61 29.36 30.08 30.84 31.60 4,959 5,089 5,214 5,346 5,477 59,509 61,069 62,566 64,147 65,728 *Field Service Worker II H Y 32.24 5,588 67,059 Field Service Worker III H 25 30.83 31.60 32.39 33.21 34.04 5,344 5,477 5,614 5,756 5,900 64,126 65,728 67,371 69,077 70,803 General Manager/CEO A 128.80 HR, Risk & Safety Manager S 49 55.76 57.17 58.59 60.05 61.56 9,665 9,909 10,156 10,409 10,670 115,981 118,914 121,867 124,904 128,045 Information Systems Technician G 26 31.60 32.39 33.21 34.04 34.88 5,477 5,614 5,756 5,900 6,046 65,728 67,371 69,077 70,803 72,550 Information Technology Manager S 49 55.76 57.17 58.59 60.05 61.56 9,665 9,909 10,156 10,409 10,670 115,981 118,914 121,867 124,904 128,045 Meter Reader I H 14 23.50 24.09 24.69 25.30 25.93 4,073 4,176 4,280 4,385 4,495 48,880 50,107 51,355 52,624 53,934 Meter Reader II H 18 25.93 26.59 27.25 27.92 28.61 4,495 4,609 4,723 4,839 4,959 53,934 55,307 56,680 58,074 59,509 Network Administrator P 38 42.50 43.57 44.65 45.76 46.92 7,367 7,552 7,739 7,932 8,133 88,400 90,626 92,872 95,181 97,594 Operations Manager S 51 58.59 60.05 61.56 63.09 64.67 10,156 10,409 10,670 10,936 11,209 121,867 124,904 128,045 131,227 134,514 Public Affairs-Conservation Manager S 49 55.76 57.17 58.59 60.05 61.56 9,665 9,909 10,156 10,409 10,670 115,981 118,914 121,867 124,904 128,045 Public Affairs Events Coordinator PT Y 14.00 2,427 29,120 Public Affairs-Graphic Designer PT Y 18.00 3,120 37,440 Public Affairs Specialist G 36 40.46 41.47 42.50 43.57 44.65 7,013 7,188 7,367 7,552 7,739 84,157 86,258 88,400 90,626 92,872 Receptionist H 8 20.27 20.78 21.30 21.83 22.37 3,513 3,602 3,692 3,784 3,877 42,162 43,222 44,304 45,406 46,530 *Receptionist H Y 24.57 4,259 51,106 A = At-Will PT = Part-Time * = E = Executive Management (Exempt) P = Professional/Supervisory (Exempt) S = Senior Management (Exempt) G = General/Confidential (Non-Exempt) M = Management (Exempt) H = Hourly-EVWDEP Represented (Non-Exempt) 22,325 267,903 Hourly Salary Range Monthly Salary Range Annual Salary Range Steps Steps Steps Y-Rate (Due to results of 2014 Compensation Analysis, base salary is set above the maximum for the range assigned) SALARY SCHEDULE Effective July 8, 2017 Page 2 of 3 Class Title Tier Range A B C D E A B C D E A B C D E Senior Accounting Technician H 23 29.36 30.08 30.84 31.60 32.39 5,089 5,214 5,346 5,477 5,614 61,069 62,566 64,147 65,728 67,371 Senior Administrative Assistant G 26 31.60 32.39 33.21 34.04 34.88 5,477 5,614 5,756 5,900 6,046 65,728 67,371 69,077 70,803 72,550 Senior Customer Service Representative H 22 28.61 29.36 30.08 30.84 31.60 4,959 5,089 5,214 5,346 5,477 59,509 61,069 62,566 64,147 65,728 Senior Engineer M 46 51.80 53.08 54.41 55.76 57.17 8,979 9,201 9,431 9,665 9,909 107,744 110,406 113,173 115,981 118,914 Senior Engineering Technician H 30 34.88 35.75 36.65 37.57 38.50 6,046 6,197 6,353 6,512 6,673 72,550 74,360 76,232 78,146 80,080 Senior Equipment Mechanic H 29 34.04 34.88 35.75 36.65 37.57 5,900 6,046 6,197 6,353 6,512 70,803 72,550 74,360 76,232 78,146 Senior Field Service Worker H 27 32.39 33.21 34.04 34.88 35.75 5,614 5,756 5,900 6,046 6,197 67,371 69,077 70,803 72,550 74,360 Senior Treatment Plant Operator H 36 40.46 41.47 42.50 43.57 44.65 7,013 7,188 7,367 7,552 7,739 84,157 86,258 88,400 90,626 92,872 Senior Water Production Operator H 32 36.65 37.57 38.50 39.47 40.46 6,353 6,512 6,673 6,841 7,013 76,232 78,146 80,080 82,098 84,157 Storekeeper-Buyer H 21 27.92 28.61 29.36 30.08 30.84 4,839 4,959 5,089 5,214 5,346 58,074 59,509 61,069 62,566 64,147 Water Production Operator I H 22 28.61 29.36 30.08 30.84 31.60 4,959 5,089 5,214 5,346 5,477 59,509 61,069 62,566 64,147 65,728 Water Production Operator II H 26 31.60 32.39 33.21 34.04 34.88 5,477 5,614 5,756 5,900 6,046 65,728 67,371 69,077 70,803 72,550 Water Production Operator III H 30 34.88 35.75 36.65 37.57 38.50 6,046 6,197 6,353 6,512 6,673 72,550 74,360 76,232 78,146 80,080 Water Production Supervisor G 41 45.76 46.92 48.09 49.29 50.51 7,932 8,133 8,336 8,544 8,755 95,181 97,594 100,027 102,523 105,061 Water Quality Coordinator H 34 38.50 39.47 40.46 41.47 42.50 6,673 6,841 7,013 7,188 7,367 80,080 82,098 84,157 86,258 88,400 Water Quality Technician H 23 29.36 30.08 30.84 31.60 32.39 5,089 5,214 5,346 5,477 5,614 61,069 62,566 64,147 65,728 67,371 A = At-Will PT = Part-Time * = E = Executive Management (Exempt)P = Professional/Supervisory (Exempt) S = Senior Management (Exempt)G = General/Confidential (Non-Exempt) M = Management (Exempt)H = Hourly-EVWDEP Represented (Non-Exempt) Steps Steps Steps Y-Rate (Due to results of 2014 Compensation Analysis, base salary is set above the maximum for the range assigned) Hourly Salary Range Monthly Salary Range Annual Salary Range SALARY SCHEDULE Effective July 8, 2017 Page 3 of 3