Loading...
HomeMy WebLinkAbout2013-02-14 - Resolution No. 13-04 RESOLUTION NO. 13-04 ' RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING RESOLUTION NOS. 12-07 AND 12-08 TO INCORPORATE PROVISIONS OF AB 340 AND APPLICATION OF AT-WILL EMPLOYMENT FOR ALL FUTURE UNREPRESENTED EMPLOYEES WHEREAS, the Board of Directors of the Yorba Linda Water District previously adopted the Employee Compensation Letters for Management, Supervisory, and Confidential Employees for Fiscal Years 2012- 2015; and WHEREAS, it is the desire of the Board of Directors to amend these letters to incorporate provisions of AB 340 and application of At-Will employment for all future unrepresented employees. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: Section 1. That Sections IX, XI, XII and XIII of the Management Employee Compensation Letter for Fiscal Years 2012-2015 incorporated as ' Exhibit "A" of Resolution No. 12-07 be amended to read: IX. AB 340 - Paragraphs, V, VI, VII and VIII above, shall be subject to the provision(s) of AB 340. AB 340 (signed by the Governor on 09/07/12,) shall in its entirety be given full force and effect as it may from time to time exist. Any provision in the Resolution No. 12-07 which contradicts any provision of AB 340 shall be deemed null and void, with the contrary AB 340 provision(s) being given full force and effect. Management employees who are "new members' as defined in the above AB 340, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate (as defined and calculated by CalPERS) for the Defined Benefit Plan in which said new member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. (AB 340 — Government Code section 7522.30) ' Management Employees who are "new members' as defined in the above AB 340, shall be enrolled in the Resolution No 13-04 Amending Resolution Nos. 12-07 and 12-08 1 ' AB 340 provided for 2.5% @ 67 retirement formula, (Government Code section 7522.20), with final pensionable compensation (as defined for new members in Government Code § 7522.34) being determined by reference to the highest average annual pensionable compensation earned during a period of 36 consecutive months. (Government Code section 7522.32(a)) XI. Effective January 24, 2013, all Management Employees hired or promoted on or after January 24, 2013, to such a position are at-will employees of the District and serve at the will of the General Manager and may be dismissed without cause or right of appeal. All employees serving in a Management Employee position prior to January 24, 2013, are not at-will employees of the District and maintain the appeal rights as set forth in the District's Personnel Rules. XII. Each employee will be annually reviewed. An employee who receives a meets job expectations evaluation will be entitled to move one (1) step and an ' employee who receives an exceeds job expectations evaluation, shall be allowed to move up to two (2) steps. Movement shall take place until an employee has reached Step 9. The District shall endeavor to have performance reviews completed within two (2) weeks after the employee's anniversary date with the effective date of any merit salary increase being on the anniversary date. If the evaluation is delayed, any subsequent salary increase to which the employee could otherwise be entitled shall be retroactive to the anniversary date. XIII. All new hires shall accrue vacation commencing with the start of employment but shall be ineligible to use accrued vacation time prior to successful completion of six (6) months of service. Section 2. That Sections IX, XI, XII and XIII of the Supervisory and Confidential Employee Compensation Letter for Fiscal Years 2012-2015 incorporated as Exhibit "A" of Resolution No. 12-08 be amended to ' read: Resolution No. 13-04 Amending Resolution Nos. 12-07 and 12-08 2 IX. AB 340 - Paragraphs, V, VI, VII and VIII above, shall be ' subject to the provisions of AB 340. AB 340 (signed by the Governor on 09/07/12,) shall in its entirety be given full force and effect as it may from time to time exist. Any provision in the Resolution No. 12-08 which contradicts any provision of AB 340 shall be deemed null and void, with the contrary AB 340 provision(s) being given full force and effect. Supervisory and Confidential employees who are "new members" as defined in the above AB 340, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate (as defined and calculated by CalPERS) for the Defined Benefit Plan in which said new member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. (AB 340 — Government Code section 7522.30) Supervisory and Confidential Employees who are "new ' members" as defined in the above AB 340, shall be enrolled in the AB 340 provided for 2.5% @ 67 retirement formula, (Government Code section 7522.20), with final pensionable compensation (as defined for new members in Government Code § 7522.34) being determined by reference to the highest average annual pensionable compensation earned during a period of 36 consecutive months. (Government Code § 7522.32(a)) XI. Effective January 24, 2013, all Supervisory and Confidential Employees hired or promoted on or after January 24, 2013, to such a position are at-will employees of the District and serve at the will of the General Manager and may be dismissed without cause or right of appeal. All employees serving in a Supervisory and Confidential Employee position prior to January 24, 2013, are not at-will employees of the District and maintain the appeal rights as set forth in the District's Personnel Rules. XII. Each employee will be annually reviewed. An employee who receives a meets job expectations evaluation will be entitled to move one (1) step and an Resolution No. 13-04 Amending Resolution Nos. 12-07 and 12-08 3 i ' employee who receives an exceeds job expectations evaluation shall be allowed to move up to two (2) step. Movement shall take place until an employee has reached Step 9. The District shall endeavor to have performance reviews completed within two (2) weeks after the employee's anniversary date with the effective date of any merit salary increase being on the anniversary date. If the evaluation is delayed, any subsequent salary increase to which the employee could otherwise be entitled shall be retroactive to the anniversary date. XIII. All new hires shall accrue vacation commencing with the start of employment but shall be ineligible to use accrued vacation time prior to completion of six (6) months of service PASSED AND ADOPTED this 14th day of February 2013 by the following called vote: ' AYES: Directors Beverage, Collett, Hawkins, Kiley and Melton NOES: None ABSTAIN: None ABSENT: None % Gary Tjt elton, President Yorba Linda Water District ATTEST: S eve Conklin, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: I an, q. Kidman Law, LLP Resolution No. 13-04 Amending Resolution Nos. 12-07 and 12-08 4 Exhibit A Resolution No. 12-07 Employee Compensation Letter ' And Pay Plan for Management Employees Fiscal Years: 2012-2015 I. The General Manager shall prepare an Employee Compensation Letter for consideration by the Board of Directors. The Employee Compensation Letter shall describe the salaries, benefits and special conditions offered by the District to its Management Employee Group (Exhibit B). II. Effective July 1, 2012, the salary schedule attached hereto as Exhibit C shall be in effect for fiscal year 2012-2013. III. Effective July 1, 2013, the salary schedule attached hereto as Exhibit D shall be in effect for fiscal year 2013-2014. IV. Effective July 1, 2014, the salary schedule attached hereto as Exhibit E shall be in effect for fiscal year 2014-2015. V. The District's current contract with CalPERS is for a retirement benefit based on the single highest year with a Fourth Level of 1959 Survivor Benefit Program. ' VI. Effective July 1, 2012, all Management Employees shall pay 43% of the 7% statutory CaIPERS employee contribution rate to CalPERS (equivalent to 3% of compensation). VII. Effective July 1, 2013, all Management Employees shall pay 71% of the 7% statutory CalPERS employee contribution rate to CalPERS (equivalent to 5% of compensation). VIII. Effective July 1, 2014, all Management Employees shall pay 100% of the statutory CalPERS employee contribution rate to CalPERS. Individuals hired by the District on or after January 26, 2012, the date Resolution No. 12-01 was adopted, shall be enrolled in the 2% @ 60 retirement formula and shall pay 100% of the statutory CalPERS employee contribution rate to CalPERS. All payments will be credited to the employee's individual account with CalPERS. IX. AB 340 - Paragraphs, V, VI, VII and VIII above, shall be subject to the provision(s) of AB 340. ' AB 340 (signed by the Governor on 09/07/12,) shall in its entirety be given full force and effect as it may from time to time exist. Any provision in the Resolution No. 12-07 which contradicts any provision of AB 340 shall be 653361.2 Y0030-001 Management Compensation Letter FYs 2012/2015 Amended 02/14113 deemed null and void, with the contrary AB 340 provision(s) being given full force and effect. Management employees who are "new members" as defined in the above AB 340, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate (as defined and calculated by CalPERS) for the Defined Benefit Plan in which said new member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. (AB 340 — Government Code section 7522.30) Management Employees who are "new members" as defined in the above AB 340, shall be enrolled in the AB 340 provided for 2.5% @ 67 retirement formula, (Government Code section 7522.20), with final pensionable compensation (as defined for new members in Government Code § 7522.34) being determined by reference to the highest average annual pensionable compensation earned during a period of 36 consecutive months. (Government Code section 7522.32(a)) X. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to PERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement ' benefits and the District shall make deductions in accordance with the law. XI. Effective January 24, 2013, all Management Employees hired or promoted on or after January 24, 2013, to such a position are at-will employees of the District and serve at the will of the General Manager and may be dismissed without cause or right of appeal. All employees serving in a Management Employee position prior to January 24, 2013, are not at-will employees of the District and maintain the appeal rights as set forth in the District's Personnel Rules. XII. Each employee will be annually reviewed. An employee who receives a meets job expectations evaluation will be entitled to move one (1) step and an employee who receives an exceeds job expectations evaluation, shall be allowed to move up to two (2) steps. Movement shall take place until an employee has reached Step 9. The District shall endeavor to have performance reviews completed within two (2) weeks after the employee's anniversary date with the effective date of any merit salary increase being on the anniversary date. If the evaluation is delayed, any subsequent salary increase to which the employee could otherwise be entitled shall be retroactive to the anniversary date. ' XIII. All new hires shall accrue vacation commencing with the start of employment but shall be ineligible to use accrued vacation time prior to successful completion of six (6) months of service. 653361.2 Y0030-001 Management Compensation Letter FYs 201212015 Amended 02/14113 XIV. Management Employees shall accrue vacation leave time with pay as follows: Duration of Continuous Hours Accrued per Pay Period Regular Employment During 151 through 60th month 3.077 hrs = 2.0 weeks/yr During 6151 through 120th month 4.615 hrs = 3.0 weeks/yr During 121st through 180th month 5.384 hrs = 3.5 weeks/yr During 181st through 240th month 6.153 hrs = 4.0 weeks/yr During 241st month and thereafter 6.922 hrs = 4.5 weeks/yr XV. The District shall continue to provide group life insurance in the amount of one times basic annual salary rounded to the next higher multiple of $1,000, for each full-time regular Management Employee under age 70, on the first day of the month following their date of hire, in accordance with the provisions of the contract between the District and any company of the District's choosing providing such coverage. Management Employees may increase the coverage up to five time's annual salary not to exceed $300,000 by authorizing the additional premium to be deducted from his/her salary. XVI. The District shall pay 100% of the premium for hospital and medical insurance for all Management Employees who work in excess of 30 hours per week, after they have worked for two calendar months, and up to 2/3 of ' the additional premium toward Management Employee dependent coverage for covered employees with one dependent or up to 2/3 of the additional premium toward Management Employee dependent coverage for covered Management Employees with more than one dependent in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The Management employee shall pay the cost of the difference in premium, to be deducted from his/her salary to cover the employee's share of the dependent coverage. The Management Employees shall have the option of selecting a District-designated Health Maintenance Organization ("HMO"). The District contribution for HMO coverage will be in accordance with this paragraph. XVII. The District shall pay 100% of the premium for dental insurance for all Management Employees who work 30 hours or more per week, after they have worked for two calendar months and up to 2/3 of the additional premium toward Management Employee dependent coverage for covered Management Employees with one dependent or up to 2/3 of the additional premium toward Management Employee dependent coverage for covered Management Employees with more than one dependent in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual Management Employees shall pay the cost of the difference in premium, to be deducted from his/her salary. The Management Employees shall have the option of 653361.2 Y0030-001 Management Compensation Letter FYs 2012/2015 Amended 02/14113 selecting "Delta Care" with the contribution for "Delta Care" to be in accordance with this paragraph. ' XVI 11. District shall pay 100% of the premium for vision insurance for Management Employees who work more than 30 hours per week, on the first day of the month following their date of hire and up to 2/3 of the additional premium toward dependent coverage for covered Management Employees with one dependent or up to 2/3 of the additional premium toward dependent coverage for covered Management Employees with more than one dependent, in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual Management Employee shall pay the cost of the difference in premium, to be deducted from his/her salary. XIX. For a period of time which is equivalent to one (1) year or pro-ration thereof on a monthly basis for each three (3) years of service to the District or pro- ration thereof on a quarterly basis, and subject to carrier approval, the District shall pay the amounts provided in the paragraphs XV, XVI and XVII of this agreement for any Management Employee who was employed by the District on or before December 8, 2011, the date Resolution No. 11-22 was adopted and who retires from the District. To be eligible for this benefit, the employee must be at least 50 years of age, must have five (5) complete years of service with the District, must provide ninety (90) days notice of intent to retire must remain in a retired status and must retire from the District in good standing. When the Management retiree or his/her spouse reaches ages 65, and is eligible for Medicare, the coverage will convert to Medicare Supplement for the remainder of the benefit period. For purposes of this Agreement, retired status means that the Management Employee shall not work for compensation for more than nine hundred sixty (960) hours in any fiscal year (July 1 through June 30). The District shall require a Management Employee to certify under penalty of perjury that the Management Employee has remained on retired status and/or to submit to such additional verification, as the District deems necessary to demonstrate retired status. The retired Management Employee must make any contribution required of a regular Management Employee pursuant to paragraph XV, XVI and XVII prior to the first day of the month in which coverage is to be extended. Failure of a Management Employee to make such payment shall result in termination of coverage and termination of any right to any benefit pursuant to this section. ' Management Employees hired after the adoption of Resolution 11-22 (12- 8-2011) shall be ineligible to receive this benefit. 653361.2 Y0030-001 Management Compensation Letter FYs 2012/2015 Amended 02/14/13 A Management Employee who retires (in accordance with the Public Employees' Retirement System qualifications) shall be paid at the rate of his final salary for 3/8 of his/her accumulated days of sick leave, if any, at ' the time of separation from active employment. The remaining 5/8 of his/her accumulated days of sick leave will be converted into CaIPERS service credit. If the Management Employee should die, his/her estate shall be entitled to such payment. XX. Management Employees who are laid off from District employment after being employed by the District for five (5) or more complete years of continuous regular employment, shall be compensated for accumulated, unused sick leave above 400 hours as follows: YEARS PERCENT PAYABLE ABOVE 400 HOURS ON THE BOOKS 5 through 9 20% 10 through 15 25% 16 through 20 and above 30% Employees who are terminated from the District for cause, or who resign in lieu of termination, shall not be eligible for this benefit. XXI. To the extent possible, the District shall extend its current plan under ' Section 125 of the Internal Revenue Code to cover Management Employees. XXII. The District shall provide a long-term disability plan for Management Employees which has a 90-day elimination period and provides at least sixty percent (60%) of salary for a designated period of time in accordance with coverage procured by the District from a carrier to be determined at the District's sole discretion. XXIII. Effective July 1, 2012, the District will match dollar for dollar not to exceed 2% salary earned per payroll period of a Management Employee's salary or the employee's actual amount of deferred compensation per payroll period, whichever amount is lesser. XXIV. Management Employees shall continue to be assigned to a four (4) day workweek, consisting of ten (10) scheduled hours of work each day (a 4/10 schedule Monday through Thursday). The Board of Directors clearly and unequivocally has the right to terminate the 4/10 schedule at any time during the term of this employee compensation letter. In such case, the schedule shall revert to the 9/80 schedule as existed immediately prior to implementation of the 4/10 schedule. ' XXV. In situations where a Management Employee has been injured in a non- duty accident and his/her disability leave exceeds one calendar month or 653361.2 Y0030-001 Management Compensation Letter FYs 2012/2015 Amended 02/14/13 the total of his/her accumulated leaves, including sick leave, paid time off and vacation, that portion of the leave exceeding 30 days or the total of accumulated leaves, whichever is more, shall constitute a break in service ' and his/her merit review dates and anniversary date will be adjusted accordingly. XXVI. The District will pay up to a total of $2,000 annually to establish and administer a tax-advantaged flexible benefit plan, and a total of $5,000 annually to establish a tax advantaged dependent care plan. Plans will conform to the requirements of Section 125 of the Internal Revenue Code, and permits Management Employees to convert their share of insurance premiums, un-reimbursed medical expenses, child care and other qualifying expenditures to pretax dollars. Savings to the District through reductions to the payroll and worker's compensation tax base will accrue to the District and offset the costs of establishing and administering this program. XXVII.The District shall reimburse Management Employees for sums paid to the appropriate agencies for obtaining, or renewing treatment and/or distribution certificates, and other professional certifications, registrations and job related training. XXVIII. Management Employees who are required to wear safety boots in the performance of their job, as determined by the General Manager, shall be eligible for District-purchased boots in an amount not to exceed ' $200.00, provided that the boots are from a list pre-approved by the General Manager or his/her designee. The difference between $200.00 and the amount actually used may be carried over for one year and combined with a subsequent allocation for boot reimbursement. XXIX. The District shall provide educational reimbursement to Management Employees for costs of tuition, fees, books and parking relating to educational courses taken and completed at accredited institutions at a rate not to exceed standard resident fees as charged by the California State University. Course work must be job related as determined and approved in advance by the General Manager. Proof of payment and successful completion of the course must accompany the reimbursement request on a form provided by the District. Management Employee shall be responsible for any tax consequences as a result of education reimbursement. If for any reason, the employee separates from District employment prior to completion of one (1) calendar year from the date of distribution by the District of funds provided for herein, all such amounts distributed during that one (1) calendar year period shall be considered a judgment due and owing to the District. The judgment amount shall be deducted from the employee's closing check. Any remaining non- reimbursed amount shall be paid to the District within ninety (90) calendar ' days of separation from District employment. Each employee receiving funds pursuant to this section shall sign a written agreement to comply with 653361.2 Y0030-001 Management Compensation Letter FYs 2012/2015 Amended 02114113 the terms of this section as a condition precedent to receipt of any such funds. ' XXX. Management Employees who have been employed by the District for more than one year may sell to the District up to forty (40) hours of accrued unused vacation time upon thirty (30) days prior notice, provided that the Management Employee takes a minimum of one-half the vacation time to which he/she is entitled within the same annual period of the sold vacation time. A member who has been employed by the District for more than one year may also buy from the District up to an additional forty (40) hours of vacation time within any calendar year for use during the same calendar year, provided that full and complete payment has been made for the purchased vacation time by salary modification prior to use of the vacation time. It is expressly understood that this benefit is provided at the sole discretion of the District and shall automatically terminate upon the expiration of this Management letter unless an extension is expressly agreed to by the District. XXXI. Management Employees will be entitled to either a District provided vehicle or a car allowance of $400.00/month as determined by the General Manager. The Engineering Manager, Finance Manager, IT Manager and Human Resources Manager positions shall receive a car allowance of $400.00 per month. XXXII. Management Employees shall receive a maximum of forty (40) hours of ' administrative leave with pay each fiscal year. Unused administrative leave time at the end of each fiscal year, June 30, will be paid during the following month of July with said time being calculated at the employee's then straight time hourly rate. There will be no carry-over of administrative leave time to the next fiscal year. XXXIII. The Holiday schedule attached hereto as Exhibit F shall be in effect for full-time Management Employees covered by this Management letter. For purposes of holiday compensation, compensation shall be equal to the number of hours that the Management Employee normally would have worked other than for the holiday. For those Management Employees whose scheduled work week is Monday through Thursday, a holiday falling on a Friday or Saturday shall not result in Thursday being a holiday and a holiday falling on a Sunday, shall not result in Monday being a holiday. Instead observed holidays that fall on a Friday, Saturday or Sunday shall be recognized as floating holidays earned. The floating holidays earned as a result of the above situation shall be used within 12 months following the accrual of each floating holiday. ' In order to be eligible for holiday pay, a Management Employee must be either at work or on paid leave of absence on the regularly scheduled workday immediately preceding the day observed as the holiday and the 653361.2 Y0030-001 Management Compensation Letter FYs 2012/2015 Amended 02114/13 regularly scheduled workday immediately following the day observed as the holiday. ' The term of this Compensation Letter for Management Employees is for the period of July 1, 2012 to June 30, 2015. February 14, 2013 e Conkbn Date Acting General Manager 1 653361.2 Y0030-001 Management Compensation Letter FYs 2012/2015 Amended 02114/13 Exhibit A Resolution No. 12-08 Employee Compensation Letter ' And Pay Plan for Supervisory and Confidential Employees Fiscal Years: 2012-2015 I. The General Manager shall prepare an Employee Compensation Letter for consideration by the Board of Directors. The Employee Compensation Letter shall describe the salaries, benefits and special conditions offered by the District to its Supervisory and Confidential Employee Group (Exhibit B). II. Effective July 1, 2012, the salary schedule attached hereto as Exhibit C shall be in effect for fiscal year 2012-2013. III. Effective July 1, 2013, the salary schedule attached hereto as Exhibit D shall be in effect for fiscal year 2013-2014. IV. Effective July 1, 2014, the salary schedule attached hereto as Exhibit E shall be in effect for fiscal year 2014-2015. V. The District's current contract with CalPERS is for a retirement benefit based on the single highest year with a Fourth Level of 1959 Survivor Benefit Program. VI. Effective July 1, 2012, all Supervisory and Confidential Employees shall pay 43% ' of the 7% statutory CalPERS employee contribution rate to CalPERS (equivalent to 3% of compensation). VII. Effective July 1, 2013, all Supervisory and Confidential Employees shall pay 71% of the 7% statutory CalPERS employee contribution rate to CalPERS (equivalent to 5% of compensation). VIII. Effective July 1, 2014, all Supervisory and Confidential Employees shall pay 100% of the statutory CalPERS employee contribution rate to CalPERS. Individuals hired by the District on or after January 26, 2012, the date Resolution 12-01 was adopted, shall be enrolled in the 2% @ 60 retirement formula and shall pay 100% of the statutory CalPERS employee contribution to CaIPERS. All payments will be credited to the employee's individual account with CalPERS. IX. AB 340 - Paragraphs, V, VI, VII and VIII above, shall be subject to the provisions of AB 340. AB 340 (signed by the Governor on 09/07/12,) shall in its entirety be given full force and effect as it may from time to time exist. Any provision in the Resolution ' No. 12-08 which contradicts any provision of AB 340 shall be deemed null and void, with the contrary AB 340 provision(s) being given full force and effect. 6533582 Y0030-001 Supervisory and Confidential Compensation Letter FYs 2012/2015 Amended 02114/13 Supervisory and Confidential employees who are "new members" as defined in the above AB 340, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate (as defined and calculated by CalPERS) for ' the Defined Benefit Plan in which said new member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. (AB 340 — Government Code section 7522.30) Supervisory and Confidential Employees who are "new members" as defined in the above AB 340, shall be enrolled in the AB 340 provided for 2.5% @ 67 retirement formula, (Government Code section 7522.20), with final pensionable compensation (as defined for new members in Government Code § 7522.34) being determined by reference to the highest average annual pensionable compensation earned during a period of 36 consecutive months. (Government Code § 7522.32(a)) X. The District shall continue to maintain a "414(h)(2)" plan under the Internal Revenue Code for the purpose of treating contributions to CaIPERS as deferred income for tax purposes to the extent permitted by law. Contributions will continue to be deducted from the employee's actual gross salary as reflected on the employee's pay stub. Employees shall otherwise be responsible for all taxes related to fringe and reimbursement benefits and the District shall make deductions in accordance with the law. XI. Effective January 24, 2013, all Supervisory and Confidential Employees hired or promoted on or after January 24, 2013, to such a position are at-will employees ' of the District and serve at the will of the General Manager and may be dismissed without cause or right of appeal. All employees serving in a Supervisory and Confidential Employee position prior to January 24, 2013, are not at-will employees of the District and maintain the appeal rights as set forth in the District's Personnel Rules. XII. Each employee will be annually reviewed. An employee who receives a meets job expectations evaluation will be entitled to move one (1) step and an employee who receives an exceeds job expectations evaluation shall be allowed to move up to two (2) step. Movement shall take place until an employee has reached Step 9. The District shall endeavor to have performance reviews completed within two (2) weeks after the employee's anniversary date with the effective date of any merit salary increase being on the anniversary date. If the evaluation is delayed, any subsequent salary increase to which the employee could otherwise be entitled shall be retroactive to the anniversary date. XIII. All new hires shall accrue vacation commencing with the start of employment but shall be ineligible to use accrued vacation time prior to completion of six (6) months of service XIV. Supervisory and Confidential Employees shall accrue vacation leave time with ' pay as follows: Duration of Continuous Hours Accrued per Pay Period Regular Employment 653358.2 Y0030-001 Supervisory and Confidential Compensation Letter FYs 2012/2015 Amended 02114/13 During 151 through 60th month 3.077 hrs = 2.0 weeks/yr During 61St through 120th month 4.615 hrs = 3.0 weeks/yr ' During 121St through 180th month 5.384 hrs = 3.5 weeks/yr During 181St through 240th month 6.153 hrs = 4.0 weeks/yr During 24151 month and thereafter 6.922 hrs = 4.5 weeks/yr XV. The District shall continue to provide group life insurance in the amount of one times basic annual salary rounded to the next higher multiple of $1,000, for each full-time regular Supervisory and Confidential Employee under age 70 on the first day of the month following their date of hire, in accordance with the provisions of the contract between the District and any company of the District's choosing providing such coverage. Supervisory and Confidential Employees may increase the coverage to up to five time's annual salary not to exceed $300,000 by authorizing the additional premium to be deducted from his/her salary. XVI. The District shall pay 100% of the premium for hospital and medical insurance for all Supervisory and Confidential Employees who work in excess of 30 hours per week, after they have worked for two calendar months, and up to 2/3 of the additional premium toward Supervisory and Confidential Employee dependent coverage for covered employees with one dependent or up to 2/3 of the additional premium toward Supervisory and Confidential Employee dependent coverage for covered Supervisory and Confidential Employees with more than one dependent in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The ' Supervisory and Confidential Employee shall pay the cost of the difference in premium, to be deducted from his/her salary to cover the employee's share of the dependent coverage. Supervisory and Confidential Employees shall have the option of selecting a District-designated Health Maintenance Organization ("HMO"). The District contribution for HMO coverage will be in accordance with this paragraph. XVII. The District shall pay 100% of the premium for dental insurance for all Supervisory and Confidential Employees who work 30 hours or more per week, after they have worked for two calendar months, and up to 2/3 of the additional premium toward Supervisory and Confidential Employee dependent coverage for covered Supervisory and Confidential Employees with one dependent or up to 2/3 of the additional premium toward Supervisory and Confidential Employee dependent coverage for covered Supervisory and Confidential Employees with more than one dependent, in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual Supervisory and Confidential Employees shall pay the cost of the difference in premium, to be deducted from his/her salary. Supervisory and Confidential Employees shall have the option of selecting "Delta Care" with the contribution for "Delta Care" to be in accordance with this paragraph. ' XVIII. District shall pay 100% of the premium for vision insurance for Supervisory and Confidential Employees who work more than 30 hours per week, on the first day of the month following their date of hire, and up to 2/3 of the additional premium toward dependent coverage for covered Supervisory and Confidential Employees 653358.2 Y0030-001 Supervisory and Confidential Compensation Letter FYs 201212015 Amended 02/14/13 with one dependent or up to 2/3 of the additional premium toward dependent coverage for covered Supervisory and Confidential Employees with more than one dependent, in accordance with the provisions of any contract between the District and any company or companies of the District's choosing. The individual Supervisory and Confidential Employee shall pay the cost of the difference in premium, to be deducted from his/her salary. XIX. For a period of time which is equivalent to one (1) year or pro-ration thereof on a monthly basis for each three (3) years of service to the District or pro-ration thereof on a quarterly basis, and subject to carrier approval, the District shall pay the amounts provided in paragraphs XV, XVI and XVII of this agreement for any Supervisory and Confidential Employee who was employed by the District on or before December 8, 2011, the date Resolution No. 11-21 was adopted and who retires from the District. To be eligible for this benefit, the employee must be at least 50 years of age, must have five (5) complete years of service with the District, must retire from the District after the date of this Agreement while in good standing and upon ninety (90) days written notice and must remain in retired status. When the Supervisory and Confidential retiree or his/her spouse reaches ages 65 and is eligible for Medicare, the coverage will convert to Medicare Supplement for the remainder of the benefit period. For purposes of this Agreement, retired status means that the Supervisory and ' Confidential Employee shall not work for compensation for more than nine hundred sixty (960) hours in any fiscal year (July 1 through June 30). The District may require a Supervisory and Confidential Employee to certify under penalty of perjury that the Supervisory and Confidential Employee has remained on retired status and/or submit to such additional verification, as the District deems necessary to demonstrate retired status. The retired Supervisory and Confidential Employee must make any contribution required of a regular Supervisory and Confidential Employee pursuant to paragraph XV, XVI and XVII prior to the first day of the month in which coverage is to be extended. Failure of a Supervisory and Confidential Employee to make such payment shall result in termination of coverage and termination of any right to any benefit pursuant to this section. Supervisory and Confidential Employees hired after the adoption of Resolution 11-21 (12-8-2011) shall be ineligible to receive this benefit. A Supervisory and Confidential Employee who retires (in accordance with the Public Employees' Retirement System qualifications) shall be paid at the rate of their final salary for 3/8 of their accumulated days of sick leave, if any, at the time of separation from active employment. The remaining 5/8 of his/her accumulated ' days of sick leave will be converted into CalPERS service credit. If the Supervisory and Confidential Employee should die, his/her estate shall be entitled to such payment. 653358.2 Y0030-001 Supervisory and Confidential Compensation Letter FYs 2012/2015 Amended 02/14/13 XX. Supervisory and Confidential Employees who are laid off from District employment after being employed by the District for five (5) or more complete years of continuous regular employment, shall be compensated for accumulated, ' unused sick leave above 400 hours as follows: YEARS PERCENT PAYABLE ABOVE 400 HOURS ON THE BOOKS 5 through 9 20% 10 through 15 25% 16 through 20 and above 30% Employees who are terminated from the District for cause, or who resign in lieu of termination, shall not be eligible for this benefit. XXI. To the extent possible, the District shall extend its current plan under Section 125 of the Internal Revenue Code to cover Supervisory and Confidential Employees. XXII. The District shall provide a long-term disability plan for Supervisory and Confidential Employees which has a 90-day elimination period and provides at least sixty percent (60%) of salary for a designated period of time in accordance with coverage procured by the District from a carrier to be determined at the District's sole discretion. ' XXIII. Effective July 1, 2012, the District will match dollar for dollar not to exceed 2% salary earned per payroll period of a Supervisory and Confidential Employee's salary or the employee's actual amount of deferred compensation per payroll period, whichever amount is lesser. XXIV. Supervisory and Confidential Employees shall continue to be assigned to a four (4) day workweek, consisting of ten (10) scheduled hours of work each day (a 4/10 schedule Monday through Thursday). The Board of Directors clearly and unequivocally has the right to terminate the 4/10 schedule at any time during the term of this employee compensation letter. In such case, the schedule shall revert to the 9/80 schedule as existed immediately prior to implementation of the 4/10 schedule. XXV. In situations where a Supervisory and Confidential Employee has been injured in a non-duty accident and his/her disability leave exceeds one calendar month or the total of his/her accumulated leaves, including sick leave, paid time off and vacation, that portion of the leave exceeding 30 days or the total of accumulated leaves, whichever is more, shall constitute a break in service and his/her merit review dates and anniversary date will be adjusted accordingly. XXVI. The District will pay up to a total of $2,000 annually to establish and administer a tax-advantaged flexible benefit plan, and a total of $5,000 annually to establish a tax advantaged dependent care plan. Plans will conform to the requirements of Section 125 of the Internal Revenue Code, and permit Supervisory and Confidential Employees to convert their share of insurance premiums, un- 653358.2 Y0030-001 Supervisory and Confidential Compensation Letter FYs 201212015 Amended 02/14/13 reimbursed medical expenses, child care and other qualifying expenditures to pretax dollars. Savings to the District through reductions to the payroll and worker's compensation tax base will accrue to the District and offset the costs of ' establishing and administering this program. XXVII. The District shall reimburse Supervisory and Confidential Employees for sums paid to the appropriate agencies for obtaining or renewing treatment and/or distribution certificates and other professional certifications, registrations and job related training. XXVIII. Supervisory and Confidential Employees who are required to wear safety boots in the performance of their job, as determined by the General Manager, shall be eligible for District-purchased boots in an amount not to exceed $200.00, provided that the boots are from a list pre-approved by the General Manager or his/her designee. The difference between $200.00 and the amount actually used may be carried over for one year and combined with a subsequent allocation for boot reimbursement. XXIX. The District shall provide educational reimbursement to Supervisory and Confidential Employees for costs of tuition, fees, books and parking relating to educational courses taken and completed at accredited institutions at a rate not to exceed standard resident fees as charged by the California State University. Course work must be job related as determined and approved in advance by the General Manager. Proof of payment and successful completion of the course must accompany the reimbursement request on a form provided by the District. ' Supervisory and Confidential Employee shall be responsible for any tax consequences as a result of education reimbursement. If for any reason, the employee separates from District employment prior to completion of one (1) calendar year from the date of distribution by the District of funds provided for herein, all such amounts distributed during that one (1) calendar year period, shall be considered a judgment due and owing to the District. The judgment amount shall be deducted from the employee's closing check. Any remaining, non-reimbursed amount shall be paid to the District within ninety (90) calendar days of separation from District employment. Each employee receiving funds pursuant to this section shall sign a written agreement to comply with the terms of this section as a condition precedent to receipt of any such funds. XXX. Supervisory and Confidential Employees who have been employed by the District for more than one year may sell to the District up to forty (40) hours of accrued unused vacation time upon thirty (30) days prior notice, provided that the Supervisory and Confidential Employee takes a minimum of one-half the vacation time to which he/she is entitled within the same annual period of the sold vacation time. A member who has been employed by the District for more than one year may also buy from the District up to an additional forty (40) hours of vacation time within any calendar year for use during the same calendar year, provided that full and complete payment has been made for the purchased ' vacation time by salary modification prior to use of the vacation time. It is expressly understood that this benefit is provided at the sole discretion of the District and shall automatically terminate upon the expiration of this Supervisory and Confidential letter unless an extension is expressly agreed to by the District. 653358.2 Y0030-001 Supervisory and Confidential Compensation Letter FYs 2012/2015 Amended 02114/13 XXXI. The Holiday schedule attached hereto as Exhibit F shall be in effect for full-time Supervisory and Confidential Employees covered by this Supervisory and ' Confidential letter. For purposes of holiday compensation, compensation shall be equal to the number of hours that the Supervisory and Confidential Employee normally would have worked other than for the holiday. For those Supervisory and Confidential Employees whose scheduled work week is Monday through Thursday, a holiday falling on a Friday or Saturday shall not result in Thursday being a holiday, and a holiday falling on a Sunday shall not result in Monday being a holiday. Instead observed holidays that fall on a Friday, Saturday or Sunday shall be recognized as floating holidays earned. The floating holidays earned as a result of the above situation shall be used within 12 months following the accrual of each floating holiday. In order to be eligible for Holiday pay, a Supervisory and Confidential Employee must be either at work or on paid leave of absence on the regularly scheduled workday immediately preceding the day observed as the holiday and the regularly scheduled workday immediately following the day observed as the holiday. XXXII. The District shall reimburse Supervisory and Confidential Employees for sums paid to the appropriate state agencies for obtaining or renewing of production or distribution certificates. In addition, a one-time per fiscal year payment of $150.00 per certificate shall be provided to an affected employee who has qualified for and been issued a State of California Department of Health Services Treatment and/or Distribution Certificate, which has been determined in the sole discretion of the General Manager to be relevant to the employee's duties and which is other than a certificate that is a job requirement. The $150.00 payment shall apply for any Distribution and/or Treatment Certificates issued by the State of California Department of Health Services that are required above and beyond the required certification for a specific classification within the District's Operations Department and shall be issued during each year in which the applicable certificate(s) remains valid and remains other than a certificate which is a job requirement. The table below identifies the positions that require specific State of California Certifications. CLASSIFICATION REQ'D TREATMENT REQ'D DISTRIBUTION CHIEF PLANT T3 D5 OPERATOR SCADA T2 D3 ADMINISTRATOR SR. CONSTRUCTION D2 ' INSPECTOR WATER D5 653358.2 Y0030-001 Supervisory and Confidential Compensation Letter FYs 2012/2015 Amended 02/14/13 MAINTENANCE SUPERINTENDENT ' WATER QUALITY D3 ENGINEER The term of this Compensation Letter for Supervisory and Confidential Employees is for the period of July 1, 2012 to June 30, 2015. February 14, 2013 St a Conklin Date Acting General Manager 1 653358.2 Y0030-001 Supervisory and Confidential Compensation Letter FYs 2012/2015 Amended 02/14/13