FROM: Robert Thompson, General Manager
Originator: Laura Maravilla, Director of Human Resources
SUBJECT:
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SIDE LETTER TO THE MEMORANDUM OF UNDERSTANDING FOR THE INTERNATIONAL UNION OF OPERATING ENGINEERS - LOCAL 501
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Authorize the execution of a Side Letter Modifying Article 19 - Standby Pay of the current Memorandum of Understanding between Orange County Sanitation District and the International Union of Operating Engineers Local 501 retroactive to the first pay period of July 2025.
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BACKGROUND
The Memorandum of Understanding (MOU) between the Orange County Sanitation District (OC San) and the International Union of Operating Engineers Local 501 (Local 501) became effective on July 1, 2025. Since the signing of the MOU, the parties have identified the need for additional clarification and modification to a specific provision of the MOU.
Specifically, Article 19 - Standby Pay includes a Special Risk Standby provision whereby employees are compensated on a pro-rated basis for each day they are assigned to perform duties in support of high-risk events, including seismic, weather, high flow and/or high impact events. The successor agreement approved by the Board of Directors in July 2025, included an increase in Standby Pay from $550 to $600 per week. The rate for the Special Risk Standby should have been updated to reflect this increase from $78.57 to $85.71 per day.
The side letter will serve as a formal addendum to the MOU and will not alter any other provisions that were agreed upon by both parties and approved by the Board. It will modify the Special Risk Standby rate in alignment with the increase made to Standby Pay and ensure OC San can continue to rely on this provision to achieve its work objectives.
RELEVANT STANDARDS
* Ensure the public's money is wisely spent
* Negotiate fair and equitable labor agreements
* M...
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