HomeMy WebLinkAbout2008-07-14 - Personnel-Risk Management Committee Meeting Agenda PacketW
• YORBA LINDA WATER DISTRICT
PERSONNEL-RISK MANAGEMENT COMMITTEE MEETING
Monday, July 14, 2008, 4:00 p.m.
1717 E. Miraloma Avenue, Placentia, CA 92870 - Tel: (714) 701-3020
AGENDA
COMMITTEE: STAFF:
Director Paul R. Armstrong, Chair Michael A. Payne, General Manager
Director Ric Collett Gina Knight, HR Manager
Alternate: John W. Summerfield
INTRODUCTION OF VISITORS AND PUBLIC COMMENTS:
Any individual wishing to address the committee is requested to identify themselves and state the matter on
which they wish to comment. If the matter is on this agenda, the committee Chair will recognize the
individual for their comment when the item is considered. No action will be taken on matters not listed on
this agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the
Water District. Comments are limited to five minutes.
ACTION ITEMS:
This portion of the agenda is for items where staff presentations and committee discussions are needed
prior to formal committee actions.
• 1. None
DISCUSSION ITEMS:
This portion of the agenda is for matters such as technical presentations, drafts of proposed
policies, or similar items for which staff is seeking the advice and counsel of the Committee
Members. This portion of the agenda may also include items for information only.
2. Retired Board Member Health Insurance Benefits.
3. Workers Compensation Program Renewal
4. Status of Recruitments
5. Status of Personnel on Administrative leave.
ADJOURNMENT:
The next meeting of the Personnel-Risk Management Committee meeting is
scheduled for August 11, 2008 at 4:00 p.m.
Accommodations for the Disabled:
Any person may make a request for a disability-related modification or accommodation needed for that
person to be able to partic ipate in the public meeting by telephoning Michael A. Payne, District Secretary, at
(714)701-3020 or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309.
• Requests must specify the nature of the disability and the type of accommodation requested. A telephone
number or other contact information should be included so the District staff may discuss appropriate
arrangements. Persons requesting a disability-related accommodation should make the request with
adequate time before the meeting for the District to provide the requested accommodation.
ITEM NO. 2
AGENDA REPORT
Committee Meeting Date: July 14, 2008
To: Personnel-Risk Management Committee
From: Michael A. Payne, General Manager
Staff Contact: Gina Knight, HR Manager
Reviewed by General Counsel: No Budgeted: N/A Total Budget:
Funding Source:
CEQA Account No: Job No:
Compliance: N/A Estimated Costs: Dept:
Subject: Health Insurance for Retired Board Members
SUMMARY:
The Board of Directors inquired about health insurance benefits for retired Board members. The
information was requested from ACWA Benefits and is provided herewith.
DISCUSSION:
Cynthia Harding of ACWA Benefits provided information regarding insurance benefits for retired
board members on July 10, 2008. Pursuant to Assembly Bill 1771 passed in 1998, in order for
directors to be eligible for retiree health coverage, the District must have had a policy in place
prior to 1994, and the director would have had to be on the board prior to 1995. The director
must have twelve years of service to be eligible. Any director who does not meet these
parameters may not use public funds to pay for health benefits. Although the Assembly Bill will
permit board members to pay out of their own pockets for the health benefits, ACWA does not
allow this.
Any director joining the board after 1995 is not eligible for retiree health benefits.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors approved the Yorba Linda Water District Personnel Rules dated March
1993.
STAFF RECOMMENDATION:
For information only.
Q
AMENDED IN ASSEMBLY APRIL 20, 1998
CALIFORNIA LEGI.SLAIVRE- 1997-a8 REGULAR SESSION
ASSEMBLY BILL No. 1771
I AW G
Introduced by Assembly Member Vincent
February 5, 1998
An act to amend Section 53201 of the Government Code,
relating to local government officers.
LEGISLATIVE COUNSEL'S DIGEST
AB 1771, as amended, Vincent. Local government
officers: benefits.
Existing law permits the legislative body of a local agency,
as defined, to provide for the continuation of any health.and
welfare benefits for the benefit of former elective members
of the legislative body. However, notwithstanding any other
provision of law, those benefits shall not be provided to any
person first elected to a term of office that begins on or after
January 1, 1995, unless the recipient participates on a self -pay
basis.
This bill would delete the notwithstanding any other
provision of law qualification clause.
This bill would provide that should any of these provisions
conflict with the Public Employees' Medical and Hospital
Care Act and any authorizing or supporting la w required for
its operation, administration, or any otherfunction, the Public
Employees' Medical and Hospital Care Act shall prevail over
the conflicting action or actions with respect to any local
agency employer contracting with the Public Employees'
98
AB 1771
—2—
• .-
Retirement System for health coverage. This bill would
require any local agency that contracts with the Public
Employees'Retirement System for the purpose ofproviding
.health care benefits for their employees and retirees to be
subject to and comply with all provisions applicable to public
agencies under the Public Employees' Medical and Hospital
Care Act and any authorizing or supporting law otherwise
required for its operation, administration, or any other
function.
Vote: majority. Appropriation: no. Fiscal committee: no.
State - man dated local program: no.
The people of the State of California do enact as follows
1 SECTION 1. Section 53201 of the Government Code
2 is amended to read:
3 53201. (a) The legislative body of a local agency,
4 subject to conditions as may be established by it, may
5 provide for any health and welfare benefits for the
6 benefit of its officers, employees, retired employees, and
7 retired members of the legislative body, as provided in
8 subdivision (b), who elect to accept the benefits and who
9 authorize the local agency to deduct the premiums, dues,
10 or other charges from their compensation, to the extent
11 that the charges are not covered by payments from funds
12 under the jurisdiction of the local agency as permitted by
13 Section 53205.
14 (b) The legislative body of a local agency may also
15 provide for the continuation of any health and welfare
16 benefits for the benefit of former elective members of the
17 legislative body who (1) served in office after January 1,
18 1981, and whose total service at the time of termination
19 is not less than 12 years, or (2) have completed one or
20. more terms of office, but less than 12 years, and who agree
21 to and do pay the full costs of the health and welfare
22 benefits.
23 (c) (1) A legislative body of a local agency that
24 provided benefits pursuant to subdivision (b) to former
25 elective members of the legislative body before January
26 1, 1995, shall not provide those benefits to any person first
98
3 ` AB 177 .0
• elected to a term of office that begins
2 1, 1995, unless the offi recipient gins on or after January,
3 basis, as provided in subdivision on a self-pay
4 (2) A legislative body of a local agency that did not
5 provide benefits pursuant to subdivision (b) to former
6 elective members of the legislative body before January
7 1, 1994, shall not provide those benefits to former elective
8 members of the legislative body after January
9 unless the recipients participate on a self - a 1, 1994,
10 (3) A legislative body of a local agency that provided
11 benefits pursuant to subdivision ( members of the legislative body before January 1,1994
13 may continue to provide those benefits to those members
14 who received those benefits before January 1, 1994. '
15 (d) The legislative body of a local agency that is a local
16 hospital district may provide for any health and welfare
17 benefits for the benefit of (1) members of its medical
18 staff, employees of the medical staff members, and the
19 dependents of both groups.-on a self -pay basis; and (2)
20 employees of any entity owned, managed, controlled, or
21 similarly affiliated with, the legislative body of the local
22 hospital district, and their dependents, on a self -pay basis.
23 (e) The provisions of this section are severable. If any
24 provision of this section or its application is held invalid,
25 that invalidity shall not affect other provisions or
26 applications that can be given effect without the invalid
27 provision or application.
28 (9 Should any of the
209 (e), inclusive, be in co�ict with the Pubb -c Employees
30 Medical and be
Care Act (Part S (commencing
31 with Section 22'!51) of Division 5 of Title 2) and any
32 authorizing or supporting la w otherwise required for the
33 operation, adminrst-ration, or any other function of that
34 act, the Public Employees'Medical and Hospital CareAct
35 shall prevail over the conflicting action or actions with
36 respect to any local agency employer contracting with
38 coverage.
37 the Public Employees' Retirement System for health
39 (g) Any local agency
40 Employees' Retirement
that contracts with the Public
System for the purpose of
.9e
AB 1771
—4—
1 prowdwg- health care beue&ts for their
2 "'eu . invaud 4 but not eUW0Yees and
3 the rontractu�g Public l ted f elected o&c&& of
4 Ply with all ro �c3'� shall. be- subject to and
5 under the Ptrb ans 1ORPACable.to publre �xaeies
6 Act .and any atitho� or f��en',Ho 6jtbe Care
7 regui,d for the oPatian, a P'P°rhgg Jaw otberw:'s�e
8 function of that act aistratraq a'1' �y other
U
96
ITEM NO. 2-
PERSONNEL RULES
EL
YORBA LINDA WATER DISTRICT
March, 1993
Yorba Linda Water District page 12
Personnel Rules
A. INVOLUNTARY DEMOTION: An employee who is involuntary demoted may have
their monthly salary reduced by up to two steps, or they shall receive the maximum rate in the
salary range for the class to which they have been demoted, whichever is lower. The employee
shall be assigned a new merit review date based upon the effective date of the demotion. An
involuntary demotion is considered disciplinary action, and subject to the provisions of Rule
10.
B. VOLUNTARY DEMOTION: An employee who is demoted at their request shall
receive the highest salary in the new range that does not exceed the employee's rate of pay
immediately prior to reduction. The employee shall retain the merit review date they had in
the higher position.
3.10 SALARY ON POSITION RECLASSIFICATION
When a regular or probationary employee's position is reclassified and the employee is
appointed to the new position, their salary shall be determined as follows:
A. HIGHER CLASSIFICATION: If the position is reclassified to a class with a higher
salary range than the previous class, the employee's salary and merit salary review date shall be
set in the same manner as if they had been promoted.
B. EQUIVALENT CLASSIFICATION: If the salary of the employee is the same or less
than the maximum of the salary range of the new class, the salary and merit salary review date
of the employee shall not change.
C. LOWER CLASSIFICATION: If the salary of the employee is greater than the
maximum of the range of the new class, the salary of the employee shall be designated as a Y-
Rate, and shall not change during continuous regular service until the maximum of the salary
range to which the class is assigned exceeds the salary of the employee.
3.11 SALARY UPON REEMPLOYMENT AFTER LAY-OFF
An employee reemployed in the same class or a comparable class shall receive the same salary
step in the range of the class they held upon layoff.
3.12 EMPLOYEE BENEFITS AND PERQUISITES
A. RETIREMENT SYSTEM: The District is a member of the Public Employee
Retirement System (PERS). Eligible employees are required to participate in accordance with
the rules of PERS. At its option, the District may change its retirement system provider upon
adoption by the Board of Directors. Prior to any changes in retirement benefits, those eligible
for retirement must be notified at least 90 days in advance. PERS retirement benefits are
available to regular employees working at least 1,000 hours in a fiscal year.
Yorba Linda Water District page 13
Personnel Rules
All members of the Board of Directors shall be covered either by PERS, a Deferred
Compensation Plan and/or the Federal Social Security retirement system.
All part-time, temporary and seasonal employees, as well as any other employees not eligible
for membership in PERS shall be placed in the Federal Social Security retirement system.
B. HEALTH INSURANCE: The District shall pay a portion of the premium as
determined by the District for hospitalization and medical insurance for employees and eligible
dependents in accordance with the provisions of any contract between the District and any
company or companies chosen by the Board of Directors which provide such service; and the
employee shall bear the cost of the difference in premium. All eligible employees are required
to participate. The designation or change of carrier shall be at the District's option after
receiving the input of employees.
C. LIFE INSURANCE: The District shall provide group life insurance, in the amount of
one times basic annual salary, rounded to the next highest multiple of $1,000 for each regular
employee under age 70. This shall be provided after two full calendar months of service to the
District, and shall be provided by a carrier of the District's choosing. Any employee may
increase the coverage to up to two time's annual salary by authorizing the additional premium
to be deducted from salary. The designation or change of carrier shall be at the District's
option.
D. DENTAL INSURANCE: Dental insurance is provided by the District for all eligible
employees and their eligible dependents. This shall be provided after two full calendar months
of service to the District, and shall be provided by a carrier of the District's choosing. The
District pays the full dental insurance premium for eligible employees and 2/3 of the premium
for eligible dependents. All eligible employees are required to participate. The designation or
change of carrier shall be at the District's option.
E. VISION INSURANCE: Vision insurance is provided by the District for all eligible
employees and their eligible dependents. This shall be provided after two full calendar months
of service to the District, and shall be provided by a carrier of the District's choosing. The
District pays the full vision insurance premium for eligible employees, and 2/3 of the premium
for eligible dependents. All eligible employees are required to participate. The designation or
change of carrier shall be at the District's option.
F. CAFETERIA (125) PLAN: The District shall provide a Cafeteria Plan to all or
selected groups of employees, as defined in Section 125 of the Internal Revenue Code, as
amended from time to time. The purpose of this plan is to provide eligible employees a choice
between cash and certain non-taxable benefits
G. TRAVEL EXPENSE ALLOWANCE: Travel expense allowances for employees and
Directors, while on District business, shall be provided in accordance with policies adopted by
the Board of Directors.
Yorba Linda Water District page 14
Personnel Rules
H. MEALS DURING EMERGENCY SERVICE: If an employee is required to remain at
work for a minimum of two hours following the close of their regular workday for the purpose
of performing emergency overtime work, the District shall provide that employee with an
adequate meal. If an employee is called out to perform emergency overtime work during the
morning hours of a regularly scheduled working day, the District shall provide that employee
with an adequate meal if such overtime work continues past the hour of 7 a.m. If an employee
is called out to perform emergency overtime work, the District shall provide an adequate meal
at four-hour intervals during the performance of such overtime work. Meal time shall be
considered working time and shall be compensated for at the appropriate overtime rate. The
District shall not provide meals before, during or after any overtime work which is scheduled
in advance.
1. INSURANCE FOR RETIREES: The District shall pay the amounts provided in
Section 3.12 B and 3.12 D for any employee who retires from the District. This benefit is
accrued at the rate of one year for each three years service to the District. These accruals shall
be prorated on a quarterly basis. To be eligible for this benefit the employee must be at least
50 years of age, have five years of service with the District, must retire from the District while
in good standing and upon 90 days written notice, and must remain in retired status
Members of the Board of Directors are also eligible for this benefit. To qualify, a member of
the Board of Directors must have 12 years of service, but there is no minimum age qualifier for
Board members.
If any benefit period remains when the employee or their spouse reaches age 65, whichever is
latest, then coverage will convert to Medicare Supplement for the remainder of the benefit
period. For purposes of this section retired status means that the employee shall not work for
compensation for more than seven hundred twenty (720) hours in any fiscal year. The District
may require an employee to certify under penalty of perjury that the employee has remained on
retired status and/or submit to such additional verification as the District deems necessary to
demonstrate retired status. The retired employee must make any contribution of premiums but
no more than the contribution required of a regular employee, prior to the first day of the
month in which coverage is to be extended. Failure of an employee to make such payment
shall result in termination of coverage and termination of any right to any benefit pursuant to
this section.
ITEM NO. J
RECEIVED
JUN 2 4 2003
YORBA LINDA WATER DISTRICT
MEMORANDUM
JOINT POWERS
INSURANCE AUTHORITY
5620 Birdcage Street
Suite 200
Citrus Heights,
CA 95610-7632
phone
916.535.7500
800.231.5742
direct line
916.535.7510
800.535.7899
fax
Q I 0.965.(,X-17
iris a.aCVsaJpia.com
President
Wes Bannister
Vice President
Joan C. Finnegan
Chief Executive Officer
Daniel N. Klatf
•
TO:
FROM:
DATE:
SUBJECT:
Workers' Compensation Program Members
Member Services
June 16, 2008
Program Renewal
Enclosed is the renewal Memorandum of Coverage for the
July 1, 2008-2009 coverage period. Please use the accompanying
Filing Instructions to place these in your agency's JPIA Programs
Manual.
Also enclosed are the 2008 Experience Modification Rating
Worksheet and the estimated annual premium worksheet for your
agency. The JPIA's Executive Committee approved an 11.4%
reduction in the rates charged for each of the payroll classifications,
effective July 1, 2008. However, your estimated premium may vary
from this reduction due to changes in your estimated payroll as well
as changes in your experience modification factor. The estimated
premium worksheet reflects the rate reduction as well as any
changes in your payroll and experience modification.
Chief Financial & Your agency's Retrospective Allocation Point (RAP) is indicated on
Operations Officer the premium worksheet. If necessary, the RAP has been adjusted
Walter "Andy" Sells to the new required minimum as determined by your estimated
deposit premium. If you would like to select a higher RAP option, Eldon Au Boone Controller please notify Member Services prior to July 1. 2008. Executive Committee If you have any questions regarding the Workers' Compensation
Merle J. Aleshire Program, please contact Member Services.
Wes Bannister
Torn Cuquet
Joseph Dion
Joan C. Finnegan
Mary M. Gibson
E.G. ".terry" Gladbach
Paul Kelley
W.D. "Bill" Knutson
Lou Reinkens
•
For: Yorba Linda Water District
EXPECTED LOSSES:
ACWA/JPIA
WORKERS' COMPENSATION
EXPERIENCE RATING FORM
EFFECTIVE 7/1/2008
PAYROLL
Class
07/01/2004-
07/01/2005-
07/01/2006-
Total
Loss
Code
2005
2006
2007
Payroll
Rate
7520
1577912.00
1746022.00
1858365.00
5182299.00
1.87
8742
1063831.00
1097240.00
1105068.00
3266139.00
0.27
8810
885990.00
922414.00
1083833.00
2892237.00
0.23
T
OTAL
ACTUAL LOSSES:
Claim Number
05-6651
Claims $2000 or less
06-7592
Claims $2000 or less
07-8979
08-9451
•08-9457
Claims $2000 or less
Policy Year
2004-2005
2004-2005
2005-2006
2005-2006
2006-2007
2006-2007
2006-2007
2006-2007
TOTAL
Actual
Loss
29412.14
2308.53
9379.51
2419.52
2453.67
8000.00
13000.00
5071.96
72045.33
(a)
RATING PROCEDURE:
Total Primary + „g„ Value + ( W
Actual (b)
35209.47 10000 0.18
Total Expected + „g„ Value
Losses(d)
112379.71 10000
Primary
Loss
7269.81
2308.53
5153.73
2419.52
2335.92
4800.00
5850.00
5071.96
35209.47
- (b)
EXPECTED LOSSES
Expected
"D"
Primary
Loss
Ratio
Loss
96908.99
0.28
27134.52
8818.58
0.27
2381.02
6652.15
0.29
1929.12
112379.71
31444.65
(d)
-
(e)
Actual
Excess
22142.33
0.00
4225.78
0.00
117.75
3200.00
7150.00
0.00
36835.86
(c)
x (c)) + ((1-W)
36835.86 0.82
X (f) ) = Total (g)
80935.06 118206.67
Total (h)
122379.71
Experience Modifier (g) / (h) = 0.9700
Excess
Loss
69774.47
6437.56
4723.02
80935.06
_ (f)
0
•
ACWA/JPIA WORKERS' COMPENSATION PROGRAM
DEPOSIT PREMIUM ESTIMATE FOR 7/1/2008 - 7/1/2009
Yorba Linda Water District
P.O. Box 309
Yorba Linda, CA 92885-0309
CLASSIFICATION
Waterworks Operations
Salesmen / Meter Readers
Clerical Office
CLASS
RATE AT
CODE
7/112008
7520
0.051 X
8742
0.0116 X
8810
0.0101 X
ESTIMATED ANNUAL
PAYROLL FOR
7/1/2008 - 7/1/2009
$2,141,597.12 =
$1,085,391.84 =
$1,248,588.64 =
NUMBER OF
EMPLOYEES: 77
ESTIMATED
PREMIUM (ROUNDED
TO NEAREST
$109,221
$12,591
$12,611
TOTAL $ 4,475,577.60 $ 134,423
ECONOMY OF SIZE FACTOR X 0.9
DISCOUNTED PREMIUM $ 120,980.47
EXPERIENCE MODIFICATION FACTOR X 0.97
• MODIFIED PREMIUM $ 117,351.06
JPIA MULTIPLE PROGRAM DISCOUNT (3 PROGRAMS = 5.00%) X 0.95
TOTAL ESTIMATED PREMIUM FOR PERIOD 7/112008 - 7/112009 $ 111,483.50
THE MINIMUM RAP FOR THE PREMIUM SHOWN ABOVE IS $15,000.00
YOUR CURRENT RAP IS $15,000.00
IF YOU WISH TO SELECT A HIGHER RAP, PLEASE CONTACT MEMBER SERVICES
• THIS IS NOT A BILL - DO NOT PAY THE ESTIMATED PREMIUM SHOWN ABOVE