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Board approves MOU with Local 39 to phase pay equity increases over three years
Summary
The board unanimously approved a memorandum of understanding with Local 39 that phases pay equities to market over three years, adds 2.5% longevity pay at 15 years, increases Kaiser medical subsidy from 80% to 90%, and creates a matching deferred‑comp plan contribution up to 3%.
The Sacramento Area Sewer District board unanimously approved a memorandum of understanding with Local 39 on Sept. 10 that phases several compensation changes intended to bring field classifications toward median market pay.
Christophe Dobson, district engineer, said the MOU follows a Gallagher compensation study that identified nine classifications with appropriate market equities out of 35 total classes. "Our goal is to get to the median of the market, and this is over 3 years," Dobson said, describing a phased implementation to reduce short‑term budget impacts.
Key elements Dobson cited in the board packet include phased equity adjustments over three fiscal years, a new 2.5% longevity payment at 15 years of service, an increase in the medical subsidy from 80% of Kaiser to 90%, and a matching contribution on deferred compensation up to 3% for employees who contribute (the district already has a 457(b) plan). Dobson corrected a typographical error in the financial summary: longevity pay was listed as $21,000 but should be $210,000, bringing the MOU total to $3,370,000 in the district’s figures.
Director Sewan asked why equities were phased over three years rather than implemented more quickly; Dobson said the district used long‑term budget projections to smooth the cost impact and had taken the same approach with executives and unrepresented staff. The board heard no public comment on the item.
The motion to approve the MOU was moved by Director Dickinson and seconded by Director Kaplan; the roll‑call vote was recorded as unanimous.
— Ending note: Staff said two additional MOUs covering administrative staff and supervisors are expected for board consideration in October, completing bargaining group agreements.
