PADRE DAM BOARD APPROVES NEW MEMORANDUMS OF UNDERSTANDING WITH EMPLOYEES’ ASSOCIATIONS

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April 20, 2012 (Santee) -- The Padre Dam Municipal Water District’s Board of Directors approved new Memorandum’s of Understanding (MOU) between the District and the Padre Dam Employees’ Association (PDEA) and the Mid-Management and Confidential Association (MMCA) today. The new MOUs will facilitate a significant change, requiring employees’ to pay a larger portion into the California Public Employees’ Retirement System (CalPERS) among other items that will save ratepayer dollars.
 
“The District is faced with the challenge of reducing costs in every way possible while continuing our commitment to superior customer service and infrastructure investment. The Employees’ Associations and the District have worked together to come up with agreements that are both comprehensive and financially sustainable,” said Bill Pommering, Padre Dam Board President. 
 
The new agreement is a result of negotiations between an ad hoc committee, appointed by the board of directors in August 2011, the PDEA, and the MMCA. Working with Allen Carlisle, CEO/General Manager and Debi Baczynski, Director of Human Resources, the committee has negotiated MOUs to be successors of the previous agreements that will expire June 20, 2012. For a copy of the full MOU report click here. Highlights of the MOU’s cost saving initiatives include the following:
 
  • All District employees will be paying the entire eight percent of the CalPERS contribution, by 2014. This will save the District approximately $750,000 annually.  Newly hired employees will pay the full eight percent immediately.
  • District employees will be paying 10 percent of their dependent healthcare coverage, beginning in 2015. Previously, employees did not contribute to healthcare coverage.  Newly hired employees will pay ten percent of their dependent healthcare coverage immediately.
  • The MOU has eliminated sick leave payout at resignation.
  • The MOU reduces the bottom end of the salary structure by 10 percent for all positions.
  • The MOU does not guarantee cost of living adjustments (COLA).  Any COLA will be based on the San Diego Consumer Price Index with a cap.  It also includes triggers to eliminate COLA adjustments during periods of financial difficulty.
 
“We have an amazingly dedicated workforce, which is evident by their willingness to make such significant changes in this new MOU.  They truly care about the customer and strive to excel in their service every day,” said Allen Carlisle, CEO/General Manager.
 
Additional Cost Cutting by Padre Dam:

Padre Dam has already dramatically cut costs this past year. In fall 2011, Padre Dam implemented a Deficit Elimination Plan in response to a 34 percent reduction in water deliveries compared to the budget. The Deficit Elimination Plan included the following savings components:
  • $2.6 million saved through a 19 percent workforce reduction (26 positions eliminated)
  • $1.2 million in operating expense reductions
  • $12 million in capital improvement deferrals
  • $270,000 in capital equipment deferrals
In addition to these savings, the Padre Dam employees voluntarily agreed to reduce their retirement benefit and begin paying more out of their pocket for the plan. These cost savings initiatives along with the approved MOUs bring into sharp focus Padre Dam’s continued commitment to providing the very best services at the lowest possible rates.  
 
About Padre Dam Municipal Water District:

Padre Dam provides water, wastewater, recycled water and recreation services to nearly 100,000 residents  in areas of Santee, El Cajon, Lakeside, Harbison Canyon, Blossom Valley, Alpine, Dehesa and Crest. For more information visit www.padredam.org.