Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Michelle Kuka, Deputy Director, Human Resources
Subject: Initial Memorandum of Understanding with the Organization of Sheriff’s Lieutenants (OSL)
RECOMMENDATION:
title
Adopt a resolution approving the Tentative Agreement establishing the terms and conditions of an initial Memorandum of Understanding with the Organization of Sheriff’s Lieutenants for the term of February 16, 2025 through October 9, 2027.
body
BACKGROUND:
The County and the Organization of Sheriff’s Lieutenants (OSL) have met and conferred in good faith and have concluded negotiations for an initial Memorandum of Understanding since becoming a new bargaining unit. Both parties have agreed to the terms as described in the Tentative Agreement. The OSL membership has ratified the County’s offer set forth in the Tentative Agreement.
DISCUSSION:
This agreement covers all of the staff in classifications represented by OSL. The following is a high-level summary of the major changes, but is not a substitute for the attached agreement and the detailed terms contained therein.
Term
February 16, 2025 through October 9, 2027.
Salary Adjustment
Classifications in this bargaining unit will receive Cost of Living Adjustments (COLA) increases as follows: 5% effective February 16, 2025, 5% effective October 12, 2025 and 4% effective October 11, 2026. The October 2026 COLA shall be increased by an additional 1%, for a total COLA adjustment of 5% if legislation is signed to ensure that San Mateo County receives its full Vehicle License Fee Adjustment Amount under the Revenue and Taxation Code.
Medical Plan changes
The County will increase the County’s contribution towards the Medical Plan premiums for the Aetna HMO plans by 5%, so the County’s contribution will now be 90% and the employee’s contribution will now be 10%. Additionally, from January 4, 2026 through October 9, 2027, the County will contribute $59 per month as a “Premium Only” contribution to each benefit-eligible employee’s Section 125 account to be used for premium expenses.
Other economic changes
Employees represented by OSL will begin to receive two Wellness Days each fiscal year that they can use as floating holidays.
Employees in this bargaining unit will also receive one additional paid holiday, Cesar Chavez Day, beginning in 2025. They will also receive three days of Winter Recess in December 2024, December 2025 and December 2026.
Effective December 21, 2025, employees in this bargaining unit will begin accruing an additional hour of Administrative/Management Leave Time. Effective December 26, 2025, all employees in this bargaining unit in an active paid status will receive a one-time lump sum payment of three thousand one-hundred and forty-five dollars ($3,145).
The County Attorney has reviewed and approved the resolution as to form.
Financial Impact on County’s Retirement System
Government Code Section 31515.5 requires the County to provide the estimated financial impact that proposed benefit changes or salary increases would have on the funding status of SamCERA ‘s retirement fund, the County’s retirement system. As reflected in the attached letter from SamCERA’s actuary, Milliman, the proposed salary and benefit increases for the OSL employees is estimated to be an increase in the Unfunded Actuarial Accrued Liability (UAAL) of $1,177,000. There is also expected to be an increase in the annual employer contribution rate of 0.18% of Safety member payroll (0.02% of total payroll). Note that this is the impact on SamCERA funding only, so it does not reflect the cost to the County of implementing the MOU. While the UAAL of SamCERA will be higher by this amount, the funded ratio, rounded to the nearest 0.01%, is estimated to be lower by 0.18% because of these changes.
FISCAL IMPACT:
The cost of the salary and other changes will result in a net increase of approximately $423,852 for the first year of the new Memorandum of Understanding.