1994-1206_CVWD MANAGEMENT EMPLOYEES_Agenda Reprot_Board of DirectorsA.GENDAJIEM December 6, 1^94
TO: Honorable Board of Directors • v
FROM: Ray A. Auerbach, General Manager
SUBJECT: Approval of 1994-95 Memorandum of Understanding (MOU) with
District Management Employees
SITlJATiniM
In February 1994, the District and City hired the firm of Ralph Andersen and
Associates to perform a Classification and Compensation Study for both Management
and General employees. The classification portion of the study was completed in
June, and the compensation portion of the study was completed in August.
The results of the compensation study showed the District employees were
compensated at a level of 2.6% below the median total compensation (salary and
benefits) of employees in similar positions in other water agencies. In general, the
District's base salaries were 8.9% below other agencies, while our benefits were
6.4% higher than other agencies. In negotiating the 1994-95 MOUs, there was an
effort to bring both salaries and benefits more in line with other agencies.
Based upon the recommendations in the compensation study, the attached MOU has
been negotiated with the District's Management employees. The MOU has the
following provisions:
1. Eliminates 7% deferred compensation contribution to Administrative Services
Manager and District Engineer.
2. Eliminates Wellness Benefit of $300 per^jmofrtb to all Management employees.
3. Eliminates paid annual physical examinations for Management employees.
4. Eliminates Management Incentive Plan for Accounting Officer, Field
Superintendent and Executive Secretary.
5. Adjusts salaries of Management employees so that total compensation for the
Management employees is adjusted as shown on Exhibit A.
FIMAMniAl ODMSIDERATIOJjS
The total increase in compensation to the Management employees as a result of this
MOU is $5,400 for the 1994-95 fiscal year. Although not specifically budgeted,
funds are available in the District's Operating Fund to fund this expense without any
adverse impact on the 1994-95 budget.
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HNAMCI ALdO IM SI D£ B ATI O INI S
The total increase in compensation to the Management employees as a result of this
MOU is $5,400 for the 1994-95 fiscal year. Although not specifically budgeted,
funds are available in the District's Operating Fund to fund this expense without any
adverse impact on the 1994-95 budget.
ALTERNATX_ACJJ_QIM
1. Approve the MOU with the District's Management employees, and authorize
the General Manager to sign the MOU on behalf of the District.
2. Request additional information from the staff.
REdOMMEWQATIQN
By motion, approve the MOU with 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
Attachment \AGND\MGMMOU95
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