Contra Costa Water District Board Locks in Four-Year Union Deal, Pension Stability and Water Partnership

The Contra Costa Water District Board cleared a full agenda in under 45 minutes Wednesday evening, unanimously approving a new four-year contract with its largest employee union, accepting actuarial reports showing steady improvement in retirement funding, and authorizing a pilot program to store water for a Central Valley district in Los Vaqueros Reservoir. The rapid-fire session reflected a board aligned on workforce investment, long-term fiscal discipline, and regional collaboration—priorities that will shape district operations through at least 2029.

• Four-year labor deal with IUOE Local 39 includes 4.5% first-year raises, Juneteenth holiday, and new deferred compensation benefits at an estimated $2.1 million first-year cost.

• Retirement plan funded status rises to 81.7%; employer contribution rate drops slightly to 37.69% of payroll for 2026.

• OPEB funding dips to 78% after higher-than-expected health premium increases; board sets employer contribution at 11.89% of payroll (~$5.1 million).

• Sun Terrace Pump Station contract awarded to West Rock Engineering at $888,895—about 13% below the engineer's estimate.

• Pilot water transfer authorized with Kern Tulare Water District to store up to 5,000 acre-feet of Central Valley Project water in Los Vaqueros.

Why it matters: The memorandum of understanding with International Union of Operating Engineers Local 39 covers the majority of the district's represented workforce through 2029, locking in compensation structures and benefit enhancements during a period of labor market competition for skilled water utility workers.