HomeMy WebLinkAbout12 Amendment District Code Agenda Item # 12
TRUCKEE •
4�, Public Utility DistriCt
Memorandum
To: Board of Directors
From: Peter Holzmeister
Date: August 8, 2007
Subject: Amendment to District Code relating to employee benefits
Why this matter is before the Board: This matter involves amending the District Code related to
management and professional employee benefits to establish consistency between the District's Union
and non-union employees.
History: Traditionally the District has maintained consistency in fringe benefits between the Union
employees and the management / professional employees of the District. The only difference has been
the fact that Union employees receive overtime pay for hours worked outside the normal eight hour work
day while management / professional employees do not; and management / professional employees
receive eight days of administrative leave per year while Union employees do not. The concept is that
administrative leave somewhat levels the playing field with Union employees who get overtime pay and
can convert a portion of it to compensatory leave.
Each time the MOU is amended such that there is a change in fringe benefit for the Union employees,
the District has passed on that change to the management / professional employees. Sometimes the
benefit change is a reduction in benefit, as is the case of medical insurance most recently.
New information: Attached is a copy of Chapter 4.24 of the District Code. This chapter deals with
benefits for management / professional employees. The sections of the code that have not been
updated are found in:
Section 4.24.005.2(A) - a reduction in benefit by increasing the deductible that employees need to pay.
Section 4.24.005.2B(1) — changes the vision benefit to a maximum of $400 per year and eliminates
specific dollar benefit for individual procedures.
Section 2.24.005.3(A) — modifying the longevity schedule by adding $20 per year increments within the
existing five year incremental schedule.
Section 4.24.015.4—extends the bereavement leave benefit to registered domestic partners
Section 4.24.020.1 — adds a week of vacation for employees who have completed thirty years of service
with the District.
The rest of this Chapter remains unchanged, and sets up management / professional benefits to be
identical with Union employee benefits, with the exception of the Union's overtime benefit and
management/professional's administrative leave benefit
Recommendation: I recommend that the Board adopt the resolution amending Chapter 4.24 of the
District Code to reflect consistency between the District's Union and non-union employees, except for
application of overtime and administrative leave benefits.
.'?TRUCKEE ER
ict
Public Utility
Distri
Resolution No. 2006 - XX
ADOPTING AN AMENDMENT TO DISTRICT CODE
RELATING TO EMPLOYEE BENEFITS
WHEREAS, the Board of Directors of the Truckee Donner Public Utility District wishes to
amend the District Code Chapter 4.24 (Benefits) related to management and professional
employee benefits; and
WHEREAS, it is the intent of the Board to establish consistency between the District's Union
and Non-Union employees; and
WHEREAS, it is the intent of the Board that the benefit package for Union and Non-Union are
identical with the exception of overtime and administrative leave; and
NOW THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby adopt
"Exhibit A" District Code Chapter 4.24, as amended; and
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility
District in a meeting duly called and held within said District on the 15t" day of August, 2007 by
the following roll call vote:
AYES:
ABSTAIN:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Tim F. Taylor, President
ATTEST:
Peter L. Holzmeister, Clerk of the Board
REVISED TEXT ,_F � Exhibit"A"
CHAPTER 4.24
BENEFITS
Sections:
4.24.005 Management and Confidential Employee Benefit Program
4.24.010 Post Retirement Medical and Dental Benefits for Management and
Confidential Employees
4.24.015 Management and Confidential Employee Leave of Absence Policy -
Unpaid and Paid
4.24.020 Management and Confidential Employee Vacation Policy
4.24.025 Management and Confidential Employee Personal Disability Leave
and Industrial Disability Leave
4.24.028 Management and Confidential Employee Holidays
4.24.005 Management and Confidential Employee Benefit Program
4.24.005.1 General: This policy shall apply to all regular employees of the District not covered
by the Union memorandum of understanding except that the terms of specific written
employment contracts with any management employee shall supersede the terms of this policy
to the extent that they conflict.
4.24.005.2 Contributions:
4.24.005.2(A) Group Medical Insurance Plan: The District will pay 100% of the premiums for
employees and dependents The NRECA Preferred Provider Organization (PPO) plan agreed
upon includes a $2 000/$4 000 out of pocket annual maximum for Out-of-Network charges, a
$400/$800/$1200 deductible utilization review/cost containment SHARE features, medical
management provisions generic drugs at $10 00 brand name drugs at $15.00, mail service
prescription drug program.
4.24.005.2(B)Vision and Dental Plans
4.24.005.2(B)(1) Vision Plan: The District will provide an annual benefit up to $400 per covered
employee or dependent The benefit will be to cover the expenses of examination, lenses,
frames or contact lenses when recommended by a physician or optometrist.
MONNEWNWOMMM
1 District Code 4.24, Benefits
REVISED TEXT : WOL
CHAPTER 4.24
BENEFITS
Sections:
4.24.005 Management and Confidential Employee Benefit Program
4.24.010 Post Retirement Medical and Dental Benefits for Management and
Confidential Employees
4.24.015 Management and Confidential Employee Leave of Absence Policy -
Unpaid and Paid
4.24.020 Management and Confidential Employee Vacation Policy
4.24.025 Management and Confidential Employee Personal Disability Leave
and Industrial Disability Leave
4.24.028 Management and Confidential Employee Holidays
4.24.005 Management and Confidential Employee Benefit Program
4.24.005.1 General: This policy shall apply to all regular employees of the District not covered
by the Union memorandum of understanding except that the terms of specific written
employment contracts with any management employee shall supersede the terms of this policy
to the extent that they conflict.
4.24.005.2 Contributions:
4.24.005.2(A) Group Medical Insurance Plan: The District will pay 100% of the premiums for
employees and dependents The NRECA Preferred Provider Organization (PPO) plan agreed
upon includes a $2 000/$4 000 out of pocket annual maximum for Out-of-Network charges, a
$400/$800/$1200 deductible utilization review/cost containment SHARE features, medical
management provisions generic drugs at $10 00 brand name drugs at $15.00, mail service
prescription drug program.
PERM
4.24.005.2(B) Vision and Dental Plans
4.24.005.2(B)(1) Vision Plan: The District will provide an annual benefit up to $400 per covered
employee or dependent The benefit will be to cover the expenses of examination, lenses,
frames or contact lenses when recommended by a physician or optometrist.
6KU9MWnN===W=M
1 District Code 4.24, Benefits
MOM
4.24.005.2(B)(2) NRECA Group Dental. The District will furnish the NRECA R&C 80 Dental
Plan. This plan will pay 100% of the reasonable and customary charges for preventive and
diagnostic services and 80% of the reasonable and customary charges for basic services.
There is no deductible. The plan will also pay 50% of the reasonable and customary charges
incurred for major services; however, each covered individual must first satisfy a $50 annual
deductible (the first $50 of reasonable and customary charges incurred for major dental services
during a calendar year). This plan will not pay more than $2,000 per person in a calendar year
for all preventive, diagnostic, basic and major services received. (No orthodontic benefits are
included in this plan.)
4.24.005.2(C) Group Life Insurance Plan: The District will furnish "term insurance" equal to
three (3)times the annual salary for each employee.
(1) Additional life insurance may be purchased in accordance with the provider's
requirements at the employee's expense.
4.24.005.2(D) Long-term Disability Plan: The District will furnish long-term disability
coverage of a monthly benefit equal to 66 2/3% of the employee's monthly salary, up to a
maximum benefit of$10,000 after the 13 week elimination period.
2 District Code 4.24, Benefits
4.24.005.2(E) Retirement Plan:
4.24.005.2(E)(1) The District will provide and maintain membership in the California Public
Employees Retirement System (CaIPERS)with all the optional benefits adopted 8/24/2004.
4.24.005.2(E)(2) The District will provide a 401(a) or 457 plan with employer match of 100% up
to 3% of employee's wage.
4.24.005.2(F) Personal Disability Leave Sell-back:
4.24.005.2(F)(1) After an employee has accumulated 600 hours of sick leave, the employee
can sell back to the District sick leave over 600 hours at a rate of 50% of base pay.
4.24.005.3 Longevity:
4.24.005.3(A) In recognition of an employee's years of service, the following annual longevity
compensation schedule will be recognized -
UPON COMPLETION OF AMOUNT OF
YEARS OF SERVICE COMPENSATION
5 years 250
6 years 270
7 years 290
8 years 310
9 years 330
Etc. Etc.
After completion of five (5) years of service employees will receive $250. Continuing years of
service shall qualify for a $20 per year addition to this figure for the entire term of employment.
4.24.005.3(B) Longevity payments will be made as soon as possible after the first pay period of
the calendar year, but not later than the last day of January of the calendar year for those
employees who are eligible.
WENOW
4.24.005.3(C) The date from which the employee was employed full time (regular and
continuous employment) shall be the governing date.
(MO91-218 — R9712)
3 District Code 4.24, Benefits
4.24.010 Post Retirement Medical and Dental Benefits:
4.24.010.1 The plan is the same as the current employees' medical plan except for a $500
deductible per person compared to a $400 deductible per person for employees. It is based on
the ElectREcomp medical plan with $500 deductible per person.
Percent of Premium Paid
Years of Service by District
10 50%
11 55%
12 60%
13 65%
14 70%
15 75%
16 80%
17 85%
18 90%
19 95%
20 100%
District will pay the same percentages listed above of the retiree and dependent medical and
dental premiums beginning at the retiree's age 60 for future retired employees based on years
and months of service at Truckee Donner. If a person retires earlier than age 60 the benefit will
be reduced by 2% per year reduction in the benefit paid by the employer. For example, a person
retiring at age 58 with 19 years of service would have 91% of the retiree and dependent
premiums paid by the District.
4.24.010.2 The benefit paid by the District is capped as listed below:
Monthly Caps
Individual only $475
Spouse only $475
Child(ren) only $475
Spouse & child(ren) only $725
Medicare Rate $375
If the premiums increase above the monthly cap, the retiree will pay the difference between the
new premium and their percent of benefit established upon retirement multiplied by the cap.
Example:A person retiring at age 58 with 19 years of service would have 91% of the retiree and
dependent premiums paid by the District. If initially the premium for individual only was $340,
the retiree would pay 340— (91% x $340) _ $30.60. If the premium increases to $500 while the
cap is $475, the retiree would pay 500— (91%x$475) _ $67.75,
4.24.010.3 Retiree cannot leave the plan and then come back. Once time is broken on the plan,
the employee or retiree cannot come back on the medical plan.
4.24.010.4 If the retiree is paying for part of the medical coverage it will be done through an
electronic fund transfer from the retiree's account on a monthly basis.
4.24.010.5 When the retiree is eligible for Medicare, it is mandatory that the retiree enroll for that
coverage.
4 District Code 4.24, Benefits
4.24.010.6 If the District changes the plan or coverage those will apply to retirees also.
4.24.010.7 The vision benefit will remain the same without any monthly caps.
4.24.015 Management and Confidential Employee Leave of Absence Policy -
Unpaid and Paid
4.24.015.1 Personal Leave: An unpaid leave of absence will be granted to a regular employee
for urgent substantial personal reasons provided that adequate arrangements can be made to
take care of the employee's duties without undue interference with the normal routine of work.
Such leave will not be granted if the purpose for which it is requested may lead to the
employee's resignation.
4.24.015.2 Military Leave: A regular employee who leaves his employment with the District to
enter the military service or other service where his re-employment rights are protected by law
will be granted a "leave of absence" without pay.
4.24.015.3 Unpaid Medical Leave: The District General Manager may grant regular
employees an unpaid medical leave of absence after the expiration of paid disability leaves as
provided in Section 4.24.025 and after expiration of all accumulated vacation. The District may,
in its discretion, require satisfactory written medical evidence of personal illness prior to granting
such leave, and during such leave the District may require satisfactory written medical evidence
of continuing disability, at regular intervals. The cost of obtaining the medical evidence shall be
borne by the employee. If an employee has accumulated greater than four months of paid
personal disability leave and/or vacation leave, then the employee may use all accumulated
personal disability leave and vacation leave. Otherwise, in no event shall an employee's use of
paid personal disability leave, vacation time, and unpaid medical leave extend more than four
months, unless the District General Manager determines to grant additional unpaid medical
leave, and the General Manager shall do so only in unusual cases involving exceptionally
compelling medical circumstances, when it appears clear that the inconvenience and expense
caused by the employee's continued absence will be outweighed by the benefit of the
employee's eventual return to work. Any grant of unpaid medical leave shall be in writing and
shall specify the ending date of such leave. Failure of the employee to return to work at the end
of unpaid medical leave shall be grounds for discipline, including discharge.
4.24.015.4 Bereavement Leave: Regular employees will be granted three days bereavement
leave with pay in the event of a death in their immediate families or to a member of the
employee's immediate household at the time of death. Immediate family consists of an
employee's or registered domestic partner, or employee's spouse's or registered domestic
partner's mother, father, brother, sister, son, daughter, step-child, half-brother, half-sister, foster
parent or grandparent. In addition, such leave may be extended to cover the employee's step-
parent, foster child, or grandchild.
4.24.015.5 Jury Duty: A regular employee will be paid his straight time salary if a leave of
absence is occasioned by a call to jury duty or by a subpoena to appear as a witness in
administrative, civil or criminal cases, unless the employee's testimony is against the District's
interest; however, any pay received as a juror, except mileage expense, will be paid directly to
the District by the employee.
4.24.015.6 Military Training: For a maximum period of two weeks, the District will make up the
difference between normal salary and regular military and longevity pay when a regular
employee is on active duty for training with any of the military services, the Coast Guard, or
National Guard.
5 District Code 4.24, Benefits
4.24.015.7 General Provisions
4.24.015.7(A) A management employee's status as a regular employee will not be impaired by
an authorized leave of absence.
4.24.015.7(B) While on an unpaid leave of absence, an employee will not be eligible for
personal disability leave pay, holiday pay, vacation pay or items of a similar nature. If an
employee is in a non-pay status for the major portion of the work days in a month, such
employee shall not accrue paid leave nor be entitled to insurance coverage unless the
employee pays the premiums therefore in a timely manner.
(M091-218- R9712)
4.24.020 Management and Confidential Employee Vacation Policy
4.24.020.1 Full-time regular employees who have satisfactorily completed six months of
continuous service will accrue vacation leave from the date of hire as follows:
NUMBER OF DAYS
RATES OF ACCRUAL PER YEAR
(a) For the first five years of continuous service 10
(b) After completing five years of continuous service 15
(c) After completing ten years of continuous service 20
(d) After completing 21 years of continuous service 21
(e) After completing 22 years of continuous service 22
(f) After completing 23 years of continuous service 23
(g) After completing 24 years of continuous service 24
(h) After completing 25 years of continuous service 25
(i)After completing 30 years of continuous service 30
all
25
6 District Code 4.24, Benefits
4.24.020.2 Any employee who leaves District employment before taking his regular scheduled
vacation will be entitled to receive full pay for any accrued vacation.
4.24.020.3 Vacation leave may be scheduled by mutual agreement between the General
Manager and the employee.
4.24.020.4 An employee may forego his vacation for two years and carry it over to the following
third year provided the District gives its written approval in advance. In no event will an
employee defer all or any portion of an annual vacation leave longer than two years unless the
employee is unable to take such vacation by reason of industrial injury.
4.24.020.5 The General Manager, at his discretion, may grant additional vacation to
management employees who have worked extra hours for which they were not otherwise
compensated.
4.24.020.6 Employees covered by this section shall receive eight days of paid administrative
leave per year, which leave shall not accrue from year to year. Administrative leave is to be
arranged by mutual agreement of the General Manager and the employee.
4.24.025 Management and Confidential Employee Personal Disability Leave and
Industrial Disability Leave
4.24.025.1 Definition of Personal Disability Leave: Personal disability leave means an
authorized paid leave of absence which is granted to an employee who has actually become
incapacitated and who is, thereby, unable to perform his/her regular duties and responsibilities.
Such inability will have resulted from personal illness or accident; or pregnancy. Personal
disability leave is not applicable to industrial disability (otherwise provided for below) except to
the extent of supplementing industrial disability leave up to 100% of an employee's regular
earnings. Such application will be at the employee's option. Employees may use their personal
disability leave, up to a maximum of six (6) days in a calendar year, for paternity purposes, to
tend to an ill spouse, child, or parent. Employees can accumulate unused family sick leave not
to exceed six days.
4.24.025.2 Eligibility and Accrual: Full-time regular employees who have completed six
months of continuous service will accrue unlimited personal disability leave from the date of hire
at the rate of one day per month for each month the employee remains in a pay status (12 days
per year maximum). When an employee no longer is being compensated during the major
portion of any month by regular pay, paid vacation, or any other form of paid leave, the
employee no longer will accrue leave credit.
4.24.025.2(A) Disability Leave Incentive Plan -
If you have low personal disability leave use, you can exchange personal disability leave for its
cash equivalent according to the following schedule. Eligible employees are permanent full-time
employees who work a full payroll year. The credit is granted after year end according to the
following schedule:
PRIOR YEAR'S PERSONAL PERSONAL DISABILITY LEAVE
DISABILITY LEAVE USAGE CREDIT CONVERSION
Zero (0) days Two (2) days
One (1) day One (1) day, four(4) hours
Two (2) days or less One (1) day
Three (3) days or less Four(4) hours
7 District Code 4.24, Benefits
4.24.025.3 Evidence of Disability: The District may require satisfactory evidence of any
disability before leave will be granted. For any disability leave in excess of three working days,
the District may require satisfactory written medical evidence of continuing disability, at regular
intervals.
4.24.025.4 Abuse of Disability Leave: If the District believes that an employee may be
abusing the disability leave provisions, the District shall counsel said employee regarding its
concern. If the employee continues to use disability leave in a manner that concerns the
District, the District may place the employee on disability leave probation, as described in
Section 4.24.025 (5). In determining whether an employee has abused the disability leave
provisions, the District shall not consider any conduct that occurred more than two years prior to
the time at which the District is investigating possible abuse by an employee.
4.24.025.5 Disability Leave Probation: Disability leave probation shall extend for whatever
period of time determined by the District, up to 180 calendar days. An employee on disability
leave probation may be required to provide to the District, at the employee's expense,
satisfactory written medical evidence for every day or portion of a day on disability leave.
Failure to promptly provide such written evidence shall be grounds for discipline, including
discharge.
4.24.025.6 Holidays: If a holiday falls on a work day within the disability leave period of an
employee who is entitled to paid holidays, it will not be included in the leave. Nothing within this
section will be interpreted to entitle an employee to disability leave while on vacation or layoff.
4.24.025.7 Industrial Disabilities:
4.24.025.7(A) When an employee is absent by reason of disability which falls within the
application of the Workers Compensation Chapters of the State of California Labor Code,
he/she will be entitled to Industrial Disability Leave for the duration of such temporary disability.
Such benefits will begin with the first day of absence following the day of the disability. The
combined amount of industrial disability and Workers Compensation benefits payable for each
day of absence will not exceed 90% of each employee's basic daily wage.
4.24.025.7(B) An employee who is absent by reason of industrial disability may be returned to
work and given temporary light duties within his/her ability to perform. The duration of any such
period of temporary work shall be determined by District. Employee shall be compensated at the
rate of their regular classifications while engaged in such temporary duties.
4.24.025(C) An employee who is absent by reason of non-industrial disability may be returned
to work and given temporary light duties within his/her ability to perform. The duration of any
such period of temporary work shall be determined by District. Employees shall be
compensated at the rate of pay of the classifications to which he/she is temporarily assigned.
4.24.025.8 Limitations: The total benefits to be paid for any combination of personal disability
leave and industrial disability leave will not exceed 100% of normal straight-time earnings less
any benefits due from Workers Compensation, State Disability Insurance, Social Security
Disability provisions, and/or any other benefit program to which the District contributes.
4.24.025.9 Return to Work: Prior to return to work, the District, in its discretion, may require a
physical release stating the employee is physically able to perform his/her job duties following
any absence in excess of three days because of illness or injury-
8 District Code 4.24, Benefits
4.24.025.10 Use of Personal Disability Leave: When an employee is on personal disability
leave he/she does not need to use all vacation leave when sick leave runs out. He/she can
leave five days of vacation leave on the books and go on leave without pay, subject to the
provisions of Section 4.24.015 (3).
(MO91-218)
4.24.028 Management and Confidential Employee Holidays - Following are the recognized
paid holidays for all regular management employees:
New Years Day January 1
Washington's Birthday third Monday in February
Memorial Day last Monday in May
Independence Day July 4
Labor Day first Monday in September
Veterans Day November 11
Thanksgiving Day fourth Thursday in November
Day after Thanksgiving fourth Friday in November
Christmas Eve December 24
Christmas Day December 25
Employee's Birthday Employee's birthday
The Christmas Eve holiday shall be observed on the work day immediately prior to the date
of observing the Christmas Day holiday.
The employee's birthday holiday shall be observed on a date chosen by the employee within
a time period of five days prior to or five days subsequent to the employee's birth date.
(MO91-218)
g District Code 4.24, Benefits