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Home My WebLink AboutAgenda - 08-22-2006-5aaORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 22, 2006 Action Agenda Item No. 5-qq SUBJECT: Supplemental Cooperative Extension Memorandum of Agreement DEPARTMENT: Cooperative Extension PUBLIC HEARING: (YIN) No ATTACHMENT(S): Memorandum of Agreement INFORMATION CONTACT: Dr. Fletcher Barber, Jr„ 245-2050 Ken Chavious, 245-2453 PURPOSE: To approve a supplemental Memorandum of Agreement between Orange County and North Carolina Cooperative Extension/North Carolina State University (NCSU) to implement a new payment process for new Cooperative Extension employees. BACKGROUND: The County Cooperative Extension currently operates under a Memorandum of Agreement that is a cost sharing agreement in which the County pays a portion of the salaries and benefits of Cooperative Extension employees, Under this current agreement, the State also pays a portion of these salaries, The current payment method involves the County issuing a paycheck bi-weekly for its portion of the salary and the State issuing a paycheck monthly for its portion of the salary, The State has adopted a new pay procedure for new Cooperative Extension employees hired as Extension Agents or County Extension Directors, Under the new procedure for these classes of employees, the State will issue monthly paychecks as well as pay all of the benefit costs, Counties will be required to send funds to the State monthly to cover its portion of the salary and benefit costs, Under the State system, a trust account will be established in the County's name and funds will be wired to this account each month, This new procedure is effective only for those Cooperative Extension employees in the job titles mentioned above and also only for those employees hired after July 1, 2006, Existing employees in all job classes will continue to operate under the current Memorandum of Agreement. FINANCIAL IMPACT: There is no anticipated financial impact associated with this change. RECOMMENDATION(S): The Manager recommends that the Board approve the Supplemental Memorandum of Agreement and authorize the Chair to sign. Memorandum of Agreement Between the North Carolina Cooperative Extension Service/North Carolina State University and Oranee County The Memorandum of Agreement is to provide for the establishment of a procedure and a Trust Fund Account at North Carolina State University to be of service to Orange County in a payroll program that places individuals who are employed with the North Carolina Cooperative Extension Service (either,jointly or entirely paid by said county) under one payroll system.. Orange County, hereinafter designated as said county, and the North Carolina Cooperative Extension Service/North Carolina State University, hereinafter designated NCSU, shall adhere to the following provisions: 1. Name of Account--The account shall be known as the Orange County Payroll Trust Account, 2. Purpose of Account--The purpose of the account is to provide a mechanism whereby funds can be transferred from said county to NCSU for use in paying the salary and benefits to Cooperative Extension employees of said county and NCSU in a single monthly paycheck. 3. Procedure for Providing Funds to the Account--A State Treasurer's Electronic Payment System (STEPS) form will be completed and the original returned with the Memorandum of Agreement.. A designated representative of said county, as defined on the STEPS form, will receive notification from the College of Agriculture & Life Sciences Personnel Office approximately one week before payday advising of the amount due. The day before payday, generally the last working day of the month, the State Treasurer's Office will initiate a draft against said county's account listed on the STEPS form, The trust account maintained for county salaries will be audited and reconciled by the Extension Accounting Office to assure the month end account balance remains zero. 4, Administration of the Account--The trust account will be maintained in accordance with NCSU accounting policies and procedures. Receipts and expenditures, including salaries and fringe benefits for affected individuals, will be handled through the trust account, A report, generated by the NCSU accounting system, including receipt, expenditure, and the cun'ent status of the account, will be provided quarterly to said county by NCSU,. 5, Employee Benefits--Affected employees will participate solely in the North Carolina State Retirement System and accompanying North Carolina Disability Income Plan. They also will be eligible for NCSU employee benefits for which they qualify. The College of Agriculture & Life Sciences Personnel Office will facilitate the transfer of employees from,joint state/local retirement to the State Retirement System. Affected employees will follow state vacation and sick leave policies. Leave maintenance will be administered entirely by the College of Agriculture & Life Sciences Personnel Office, Said county will be responsible for providing their proportional share of fringe benefits, including but not limited to the following: A. Said county will pay their proportional share of the employer contribution to the State Retirement System per G,S, 135. B. Said county will pay their proportional share of state health insurance matching charges per G.S. 1.35.. C. Workers' Compensation will be administered per N.C.G.S. 97-2(2). 1, All county extension employees with professional rank as designated in the Memorandum of Understanding between the NC Cooperative Extension Service, NC State University, and the Boazds of County Commissioners shall be deemed, for workers' compensation, to be employees of the State of NC (county directors, extension agents, and EFNEP program assistants). 2. All other county extension employees paid from state or county funds shall be deemed, for workers' compensation, to be employees of the county Board of Commissioners in the county in which the employee is employed (4-H prograzn assistants, family nutrition program assistants, secretaries, technicians and any other program support positions). D. Severance pay for County Extension Secretaries and Unemployment Compensation will be handled by the University.. E. Said county will pay their portion for acented vacation leave up to a maximum of 240 hours upon an employee's separation. Yes _ No F. Said county will pay their portion of state longevity for County Extension Secretazies. Yes _ No G, Said county will provide monies to extension employees for payment of an employer matching benefit for the NC 401(k) or other tax deferred programs. These monies will be paid in a lump sum on an annual basis and will not be included in the monthly base salary, Official notification in writing from said county of the lump sum dollar amount to be paid to each employee will be processed for payment and billed to the county for reimbursement to NCSU on the date checked. Yes _ No June 30 July 1 Dec 31 H, Said county will provide monies to extension employees as bonuses, county longevity, and/or reimbursement for benefit plans, such as dental costs, in whole or in part. These monies will be paid in a lump sum on an annual basis and will nat be included in the monthly base salary. Official notification in writing from said county of the lump sum dollar amount to be paid to each employee will be processed for payment and billed to the county for reimbursement to NCSU on the date checked, Yes _ No June 30 4 .July 1 Dec .31 The effective beginning date for implementing this Agreement will be Jul 1 2006, and it may be reviewed annually and maybe terminated by either party with asixty-day notice in writing. This Agreement will pertain to all individuals employed with Cooperative Extension in Orange County after June .30, 2006, in an Extension Agent or County Extension Director position only. Other Cooperative Extension positions such as secretaries, program assistants/associates/technicians are excluded from this arrangement, but future decisions regarding send-in arrangement for such positions will be negotiated at the time of employment. Signed: Chair, Board of County Commissioners Date ATTEST: Clerk to Board Date Director, North Carolina Cooperative Extension Service Date North Carolina State University Director of Purchasing Date North Carolina State University