REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 27, 2023
FROM
DIANE RUNDLES, Assistant Executive Office, Human Resources
SUBJECT
Title
Side Letter Agreement with Teamsters Local 1932
End
RECOMMENDATION(S)
Recommendation
1. Approve a Side Letter Agreement with Teamsters Local 1932, representing employees in the Administrative Services Unit, Clerical Unit, Craft, Labor and Trades Unit, Management Unit, Supervisory Unit, Nurses Supervisory and Management Unit, and the Technical and Inspection Unit, to amend the Healthcare Trust article of the current Memorandum of Understanding, effective July 1, 2023.
2. Approve appropriation, contingency, and reserve adjustments, and authorize the Auditor-Controller/Treasurer/Tax Collector to post necessary budget adjustments, as detailed in the Financial Impact section (Four votes required).
(Presenter: Diane Rundles, Assistant Executive Officer, 387-5570)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). There are no anticipated additional costs associated with the proposed Side Letter Agreement (Agreement), as the funds come from deferred employee across-the-board wage increases that were previously approved on June 22, 2021 (Item No. 46). Approving the budget adjustments in the table below will allow the use of the Teamsters Side Letter Reserve and General Fund contingencies to create sufficient appropriation to allow the transfer of deferred employee contributions from July 31, 2021 through June 2, 2023, to the Retiree Trust. Funding from departmental budgets to cover this cost will be transferred back to the Discretionary General Fund as part of the 2022-23 year-end budget process.
|
Cost Center |
Commitment Item |
Description |
Action |
Amount |
|
1000 |
37008762 |
Fund Bal-Assigned - Teamsters Side Letter Reserve |
Decrease |
$3,400,852 |
|
1280001000 |
56006000 |
Appr Contingencies |
Decrease |
$9,192,259 |
|
1161161000 |
51001305 |
Other Fringes |
Increase |
$12,593,111 |
BACKGROUND INFORMATION
On June 22, 2021 (Item No. 46), the Board of Supervisors (Board) approved a Side Letter Agreement between San Bernardino County (County) and Teamsters Local 1932 (Teamsters) representing employees in the Administrative Services Unit, Clerical Unit, Craft, Labor and Trades Unit, Management Unit, Supervisory Unit, Nurses Supervisory and Management Unit, and the Technical and Inspection Unit (General Unit) partially deferring employee across-the-board wage increases to divert the funds to a proposed Teamsters’ Retiree Trust. The diversion of funds was done in the event the County and Teamsters reached an agreement on the terms of the proposed Retiree Trust as part of the Teamsters Local 1932 Healthcare Trust.
The parties met and conferred, resulting in the proposed Agreement establishing the terms and conditions of the Retiree Trust. If approved, the Agreement would allow Teamsters to establish a Retiree Trust providing eligible retirees in the General Unit with healthcare benefits. The proposed Agreement establishes the following:
• Eligibility requirements for employees to participate in the Retiree Trust.
• The transfer of employee contributions funded from the June 22, 2021, across-the-board salary deferral to the Retiree Trust.
• Biweekly deductions from eligible employee’s pay warrants to the Retiree Trust.
• Joint periodic reviews of the trust administration.
• An option for the County to perform audits of the Retiree Trust.
If approved, the parties anticipate employees in the General Unit will be eligible for the Retiree Trust beginning July 1, 2023.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Cynthia O’Neill, Principal Assistant County Counsel, 387-5455) on June 7, 2023; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on June 22, 2023; Human Resources (Diane Rundles, Assistant Executive Officer, 387-5570) on June 20, 2023; Finance (Abigail Grant, Administrative Analyst, 387-4603) on June 20, 2023; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on June 20, 2023.