To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: Side Letter to amend MOUs with AFSCME, Local 1 and AFSCME, Local 1 Site Supervisors Units regarding the County deferred compensation contribution.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT a Resolution approving the Side Letters between Contra Costa County and AFSCME, Local 1 and AFSCME, Local 1 Site Supervisors Units, amending the current Memoranda of Understanding by providing an additional County contribution to employee deferred compensation accounts.
FISCAL IMPACT:
Pursuant to the funds agreed to in the Non-Healthcare/Non-General Wage Re-Opener section of each Unit's Memorandum of Understanding, the total annual cost is approximately $235,000. The cost will be absorbed by the applicable departments.
BACKGROUND:
These Side Letters amend the Memorandum of Understanding (MOU) between the County and AFSCME, Local 1 and AFSCME, Local 1 Site Supervisors Unit (July 1, 2022 - 6/30/2026) to revise Section 23.2 - Deferred Compensation Incentive and Section 5.15 - Deferred Compensation. This revision provides for a County contribution towards active employees’ deferred compensation accounts pursuant to the funds referenced in the Non Healthcare/Non-General Wage Re-Opener sections of each MOU.
Pursuant to this side letter, the County shall provide a monthly deferred compensation contribution to eligible employees in Local 1 who are enrolled in the County’s deferred compensation program. Only permanent full-time or permanent part-time employees in a position designated at a minimum of twenty (20) hours per week who have been employed by the County for at least ninety (90) calendar days, will be eligible for the contribution. An employee will be considered enrolled in the County’s deferred compensation program as long as they maintain a balance in such an account. Any newly hired employee who satisfies these requirements will also be eligible to receive this contribution on a go-forward monthly basis provided they open a deferred compensation account during the applicable year.
Contributions will be made in accordance with the methodology in the respective side letters. Individual contributions are to be distributed on a monthly basis among all eligible employees starting with the following November 10, 2024 pay date through the following January 10, 2025 pay date. For all subsequent contributions, the contribution will be applied on a calendar year basis. The parties acknowledge that the amount of each employee’s pro-rata share is subject to change from year to year as the amount will be wholly dependent on the number of employees enrolled in the deferred compensation program at the time.
The terms of these Side Letters are effective upon adoption by the Board and will be incorporated into the next MOU between the County and Local 1. The Parties agree that this Side Letter resolves all re-opener negotiations related to the Non-Healthcare/Non-General Wage Re-opener. Except as specifically amended or excluded by this Side Letter, all other terms and conditions of the MOUs between Contra Costa County and Local 1 (July 1, 2022 - June 30, 2026) remain unchanged.
CONSEQUENCE OF NEGATIVE ACTION:
The Non-Healthcare/Non-General Wage Re-Opener section for Local 1 MOUs will remain open.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
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IN THE MATTER OF: The Side Letters of Agreement between the County of Contra Costa and AFSCME, Local 1 and AFSCME, Local 1 Site Supervisors Units adding sub-sections 5.15.C - Additional Contribution to Deferred Compensation Plan, and 23.2.D - Additional Contribution to Deferred Compensation Plan, respectively.
The Contra Costa County Board of Supervisors acting solely in its capacity as the governing board of the County of Contra Costa RESOLVES THAT:
The attached Side Letters of Agreement between the County and AFSCME, Local 1 and AFSCME, Local 1 Site Supervisors Units be ADOPTED.
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