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Home My WebLink About13 Resolution 2020-10 Amending District Code Title 4, Personnelenda Item # ACTION 13 To: Board of Directors From: Brian Wright Date: April 15, 2020 Subject: Consideration for Approval of Resolution 2020-10 Amending District Code Title 4, Personnel 1. WHY THIS MATTER IS BEFORE THE BOARD It is in the Board's purview to adopt District Resolutions. 2. HISTORY The Districts employees fall within two general categories in terms of negotiating compensation and benefits. The majority of operations, maintenance and administrative staff (non-exempt employees) are collectively represented by the bargaining unit of the International Brotherhood of Electrical Workers (IBEW) Local 1245. At the March 18, 2020 meeting the current Memorandum of Understanding (MOU) was ratified. The technical, engineering, and management staff (Unrepresented Employees) are not affiliated with a collective bargaining unit and historically have been represented by the General manager for purposes of negotiating compensation and benefits. This negotiation was also approved by the Board at the March 18th meeting. The provisions negotiated between the the Unrepresented Employees and the Board pertaining to updated compensation and benefits are outlined within District Code Title 4, Personnel. Title 4, Chapter 4.07 outlines the provisions for employee benefits such as retirement, medical, leave and insurance. Any new compensation and benefits for Unrepresented Employees approved by the Board must be updated in District Code by way of Resolution. 3. NEW INFORMATION Following negotiations between the Unrepresented Employees and the Board, Resolution 2020-09 was adopted at the March 18 meeting, ratifying the 2020 MOU between the District and IBEW Local 1245, approving the 2020 Unrepresented Wage Ranges and amending District Code Title 4 to include updated compensation an benefits. The benefits approved through the adoption of Resolution 2020-09 were made available retroactive to current employees effective January 1, 2020 . The medical benefits for 2020-21 included among other modifications, a new cost containment measure in the form of an employee monthly contribution as well as an increase in the post -retirement monthly cap for future retirees. This was the first negotiated increase in the post -retirement medical benefit monthly cap in many years. This post retirement benefit shall be be made available for those employees retiring after January 1, 2020. Subsequent to the March 18th Board Meeting, the District received a letter addressed to the Board of Directors from a former staff member and retiree, advising the Board that the increases to post -retirement medical benefits negotiated between the current Unrepresented Employees group and the Board were in turn applicable to previous retirees, further indicating that the recent increase in post -retirement benefit should be reflected in the April 1, 2020 disbursements. It should be noted that while benefits packages contribute to an employee's overall compensation, they are also intended to be critically important in the recruitment and retention of current and future staff. During the negotiations between the Unrepresented Employees group and the Board, the deliberation of terms and provision within the benefits package were not generally inclusive of past employees or retirees. Furthermore the Board and the negotiating team on behalf of the Unrepresented Employees arrived at tentative agreements with the understanding that said agreements were made on behalf of current and future employees, effective January 1, 2020. Staff has reviewed this matter with District Counsel for guidance and recommendations. Additionally, staff has reviewed this matter with the District's third party counsel for labor negotiations. In summary, Resolution 2020-09 was approved by the Board on March 18, 2020 in effect updating District Code to reflect the new benefits negotiated on behalf of current and future employees. Existing retirees are not entitled to prospective changes in benefits but only to those benefits in place at the time of retirement. In order to more accurately and effectively represent the terms and provisions of the updated compensation and benefits for current employees, District Counsel is recommending an amendment to District Code Title 4, Section 4.07.050 Post - Retirement Health Benefits to reflect the effective date of the agreements as January 1, 2020. A redlined copy of the proposed amendments have been included with this staff report as Attachment 1. Amendments to District Code are implemented through Board adopted Resolution. The amendment proposed in Resolution 2020-10 provides clarity to any interpretation as it relates to dates and post retirement benefits 4. FISCAL IMPACT There is no fiscal impact associated with this item. 5. RECOMMENDATION Adopt Resolution 2020-10 amending District Code Title 4, Personnel as proposed. Michael D. Holley General Manager Attachment 1 4.07.050 Post -Retirement Health Benefits To be eligible to receive post -retirement health benefits, an employee must have at least ten (10) years of service with the District. Years of service is defined as cumulative years of service with the District, which may or may not be consecutive years. Employees, who retire from the District and meet the service requirement stated above, will receive a District contribution towards their post -retirement health benefits premium with the insurance company that is contracted for retiree benefits with the District at the time of the employee's retirement, as follows: Total Years of Percent District Service Contribution 10 50% 11 55% 12 60% 13 65% 14 70% 15 75% 16 80% 17 85% 18 90% 19 95% 20 100% The maximum monthly contribution paid by the District for retirees who have retired prior to December 31, 2019 is listed below: Maximum Monthly Contribution Retiree Only <65 years of age $475 Spouse only <65 years of age $475 Children) only $475 Spouse & child(ren)only $725 Medicare 65+ years of age $375 The maximum monthly contribution paid by the District for retirees who retire after January 1, 2020 is listed below: Maximum Monthly Contribution Retiree Only <65 years of age $600 Spouse only <65 years of age $600 Child(ren) only $600 Attachment 1 Spouse & child(ren)only $1,000 Medicare 65+ years of age $500 The post -retirement medical plan is the same as the active employees' medical plan except for a $500 deductible per person compared to a $400 deductible per person for employees. Retirees may choose the High Deductible Health Plan as a lower cost alternative to the PPO Plan. A 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. If the retiree is paying for part of the medical coverage it will be collected through an electronic fund transfer from the retiree's bank account on a monthly basis. When the retiree is eligible for Medicare, it is mandatory that the retiree enroll for Part B coverage. Should the District change insurance plans or coverage, those changes will also apply to retirees. The vision benefit will remain the same without any monthly caps. Board members are not eligible for this benefit. Attachment 2 Resolution No. 2020-10 ADOPTING AMENDMENTS TO THE DISTRICT CODE TITLE 4 WHEREAS, the Board of Directors of the Truckee Donner Public Utility District wishes to amend the District Code Title 4; and WHEREAS, the District Code provides rules and regulations intended to convey a comprehensive description of the manner in which the District operates, handles and performs its personnel activity; and WHEREAS, periodically, the District Code should be reviewed and updated to conform to District Board directives, new applicable laws and regulations and improvements; and WHEREAS, the District has undergone routine negotiations with employment groups; and WHEREAS, the revised version of Title 4 will bring the District's policies up-to-date and will replace all preceding resolutions affecting such Titles. NOW THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby adopt the amended District Code, Title 4 as follows: The maximum monthly contribution paid by the District for retirees who retired prior to December 31, 2019 is listed below: Maximum Monthly Contribution Retiree Only <65 years of age $475 Spouse only <65 years of age $475 Child(ren) only $475 Spouse & child(ren)only $725 Medicare 65+ years of age $375 The maximum monthly contribution paid by the District for retirees who retire after January 1, 2020 is listed below: Attachment 2 Maximum Monthly Contribution Retiree Only <65 years of age $600 Spouse only <65 years of age $600 Child(ren) only $600 Spouse & child(ren)only $1,000 Medicare 65+ years of age $500 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 15th of April, 2020 by the following roll call vote: AYES: NOES: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT Bv: Jeff Bender, President of the Board ATTEST: Shanna D. Kuhlemier, CIVIC, District Clerk