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1994-0202_CVWD MANAGEMENT EMPLOYEES_Agenda Report_Board of DirectorsAGENDA ITEM February 1, 1994 TO: Honorable Board of Directors FROM: Ray A. Auerbach, General Manager SUBJECT: Approval of Memorandum of Understanding (MOU) - District Management SITUATION The attached MOU has been negotiated with the District's Management employees. The items which differ from the provisions of last year's MOU are as follows: 1. A 2.0% salary increase will be paid to Management and Executive employees effective July 1, 1993. 2. The current Management Incentive Plan (MIP) will be replaced with the following provisions for the 1993/94 Fiscal Year only. a. Management level employees will be eligible for additional time-off based on the achievement of goals rather than monetary payment. The additional time off will be a maximum of 104 hours. This is the same provision that was previously approved for City Management employees. b. The MIP for the District's two Executive employees will be eliminated, and to compensate the employees for the loss of this potential compensation, they will receive a seven percent (7.0%) contribution to a deferred compensation plan for the 1993/94 Fiscal Year only. FINANCIAL CONSIDERATIONS The 1993/94 budget included a 2.0% salary increase for all employees. The additional time off for the Management level employees will not affect the budget this fiscal year, but would have to be paid in future years if the employees don't take the time off, but choose to get paid for it when they retire or otherwise terminate their employment with the District. The 7.0% deferred compensation contribution for the Executive employees was not budgeted this year, but sufficient funds are available in the Personnel Services section of the budget due to position vacancies and other savings in various personnel related costs. Employees 1 The total Increase in compensation to the Management employees is estimated to be $5,500 over what would have been paid under the prior MOU. This includes the value of the additional time off even though it won't be paid in this fiscal year. ALTERNATE ACTION 1. Approve the MOU between the District's Management Employees, and authorize the General Manager to sign the MOU on behalf of the District. 2. Request additional information. RECOMMENDATION By motion, approve the MOU between the District's Management Employees, and authorize the General Manager to sign the MOU on behalf of the District. Respectfully submitted. Ray A. Auerbach General Manager \AGN D\MGMTMOU. ITM 2