HomeMy WebLinkAbout2018-04-10 - Resolution No. 18-08 RESOLUTION NO. 18-08
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
AMENDING EXHIBIT A OF THE MANAGEMENT EMPLOYEES
COMPENSATION LETTER TO ADD ACTING PAY PROVISIONS FOR THE
REMAINDER OF FISCAL YEARS 2015-2018
WHEREAS, the Board of Directors of the Yorba Linda Water District previously adopted
the Employee Compensation Letter for Management Employees for Fiscal
Years 2015-2018 (Resolution No. 15-08); and
WHEREAS, the Board of Directors subsequently adopted Resolution No. 17-35
amending Exhibits A and E of the Employee Compensation Letter
(Resolution No. 15-08) to rescind the At-Will Employment provision and
modify the Pay Plan for Management Employees for the remainder of Fiscal
Years 2015-2018; and
WHEREAS, it is the desire of the Board of Directors to further amend Exhibit A of the
Employee Compensation Letter (Resolution No. 15-08) in order to add
Acting Pay provisions for Management Employees for the remainder of
Fiscal Years 2015-2018.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda
Water District as follows:
Section 1. That Exhibit A - Management Employees Compensation Letter of
Resolution No. 15-08 be amended to read as attached hereto and by this
reference incorporated herein effective March 26, 2018,
Resolution No. 18-08 Amending Exhibit A of the Management Employees Compensation Letter 1
PASSED AND ADOPTED this 10th day of April 2018, by the following vote:
AYES: Directors Hall, Hawkins, Jones and Nederhood
NOES: None
ABSTAIN: None
ABSENT: Director Miller
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ATTEST:
Annie Alexander, Board Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
An rew B. Gagen, q.
Kidman Gagen Law LLP
Resolution No. 18-08 Amending Exhibit A of the Management Employees Compensation Letter 2
Exhibit A
Resolution No. 15-08
Employee Compensation Letter
And Pay Plans for Management Employees
Fiscal Years 2015-2018
I. The General Manager shall prepare an Employee Compensation Letter for the
Board of Directors’ consideration. 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, 2015, the salary schedule attached hereto as Exhibit C shall be in
effect for fiscal year 2015-2016 (reflecting a 2.5% base salary increase).
III. Effective July 1, 2016, the salary schedule attached hereto as Exhibit D shall be in
effect for fiscal year 2016-2017 (reflecting a 2% base salary increase).
IV. Effective July 1, 2017, the salary schedule attached hereto as Exhibit E shall be in
effect for fiscal year 2017-2018 (reflecting a 2% base salary increase).
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.
The District has three tiers for retirement benefits:
a. Tier 1 applies to District employees hired prior to January 26, 2012;
b. Tier 2 applies to District employees hired between January 26, 2012 and
December 31, 2012 and any District employees hired on or after January 1,
2013 who are defined as “classic members” under the Public Employees’
Retirement Law (“PERL”); and
c. Tier 3 applies to District employees hired on or after January 1, 2013 who
are defined as “new members” under the PERL.
1. Tier 1 and Tier 2 employees
Tier 1 employees are enrolled in the 2% at 55 retirement formula.
Tier 2 employees are enrolled in the 2% at 60 retirement formula.
Tier 1 and Tier 2 employees pay the full employee contribution rate
which is 7% of pensionable compensation.
2. Tier 3 employees
Management Employees Compensation Letter FYs 2015-2018
Management Employees hired on or after January 1, 2013 who are
“new members” as defined in the Public Employees’ Pension Reform
Act of 2013 (PEPRA) are provided the following retirement benefits:
2.5% at 67 benefit formula with a three year (36 month) final
compensation period. Employees may designate the highest 36
month period. Tier 3 employees shall individually pay an initial
CalPERS contribution rate of 50% of the normal cost rate for the
Defined Benefit Plan in which said newly hired employee is enrolled
rounded to the nearest quarter of 1%, or the current contribution rate
of similarly situated employees, whichever is greater.
VI. 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.
VII. The Assistant General Manager classification serves at the will of the General
Manager and may be dismissed without cause or right of appeal.
VIII. Effective November 14, 2017, the District will implement a thirteen (13) step salary
schedule with a 2.5% salary difference between steps replacing the District’s
previous eleven (11) step salary schedule.
Subsequent movement on the salary schedule is based on merit as follows:
Evaluation process
Each employee shall be reviewed annually on a one-year interval. Effective July
1, 2016, the District will implement a new five-rating performance evaluation with
the following ratings: Unsatisfactory, Needs Improvement, Meets Expectations,
Exceeds Expectations, and Outstanding. An employee who receives an overall
rating Exceeds Expectations and with no Unsatisfactory and no more than two (2)
Needs Improvement ratings on their evaluation shall be entitled to move one (1)
step. An employee who receives an overall rating of Outstanding with no
Unsatisfactory and no Needs Improvement ratings on their evaluation shall move
two (2) steps. Movement shall take place until an employee has reached step 13.
The District shall endeavor to have performance reviews completed by the
employee’s anniversary date with the effective date of the merit salary increase
being on the anniversary date. If the evaluation is delayed, any subsequent salary
increase to which the employee is entitled as a result of the performance review
rating shall be retroactive to the anniversary date.
IX. Management Employees shall accrue vacation leave time with pay as follows:
Management Employees Compensation Letter FYs 2015-2018
Duration of Continuous Regular Employment Hours Accrued per Pay Period
During 1st through 60th month (0-5 yrs) 3.077 hrs = 2.0 wks/yr
During 61st through 120th month (5-10 yrs) 4.615 hrs = 3.0 wks/yr
During 121st through 180th month (10-15 yrs) 5.384 hrs = 3.5 wks/yr
During 181st through 240th month (15-20 yrs) 6.153 hrs = 4.0 wks/yr
During 241st month and thereafter (20+ yrs) 6.922 hrs = 4.5 wks/yr
X. 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 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 purchase additional life insurance coverage up to
$300,000 by authorizing the additional premium to be deducted from their salary.
In addition, a Management Employee can purchase life insurance for their spouse
up to half of the employee’s coverage level. Some medical restrictions may apply.
XI. 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, effective
the first of the month following date of hire and ⅔ of the additional premium toward
Management Employee dependent coverage for covered employees with one or
more dependents 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 the employee’s salary to cover the employee’s ⅓ share of the
dependent coverage.
XII. The District shall pay 100% of the premium for dental insurance for all
Management Employees who work in excess of 30 hours or more per week,
effective the first of the month following date of hire and ⅔ of the additional
premium toward Management Employee dependent coverage for covered
Management Employees with one or more dependents in accordance with the
provisions of any contract between the District and any company or companies of
the District's choosing. The Management Employees shall pay the cost of the
difference in premium, to be deducted from the employee’s salary to cover the
employee’s ⅓ share of the dependent coverage.
XIII. The District shall pay 100% of the premium for vision insurance for Management
Employees who work in excess of 30 hours or more per week, effective the first of
the month following date of hire and ⅔ of the additional premium toward dependent
coverage for covered Management Employees with one or more dependents in
accordance with the provisions of any contract between the District and any
Management Employees Compensation Letter FYs 2015-2018
company or companies of the District's choosing. The Management Employee
shall pay the cost of the difference in premium, to be deducted from the employee’s
salary to cover the employee’s ⅓ share of the dependent coverage.
XIV. For Management Employees who are employed by the District prior to December
8, 2011, and subject to carrier approval, the District shall pay the amounts provided
in paragraphs XI, XII and XIII of this agreement 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.
To be eligible for this benefit, the employee must be at least 50 years of age, must
have five (5) complete consecutive years of service with the District, must provide
ninety (90) days’ notice of intent to retire, retire from the District in good standing
and remain in a retired status.
The retired Management Employee must make any contribution required of a
regular Management Employee pursuant to paragraphs XI, XII and XIII 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.
When the Management retiree, or their spouse, reaches age 65 and is eligible for
Medicare, the coverage provided by the District shall become secondary to
Medicare for the remainder of the benefit period.
Management Employees hired on or after December 8, 2011 shall be ineligible to
receive this benefit.
XV. A Management Employee who retires (in accordance with the Public Employees'
Retirement System qualifications) shall be paid at the rate of their final salary for
⅜ of their accumulated days of sick leave, if any, at the time of separation from
active employment. The remaining ⅝ of their accumulated days of sick leave will
be converted into CalPERS service credit.
XVI. Management Employees who are laid off from District employment after being
employed by the District for five (5) or more complete consecutive years of 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.
Management Employees Compensation Letter FYs 2015-2018
XVII. The District shall provide a long-term disability plan for Management Employees
which has a 90-day elimination period and provides 66 ⅔% of an employee’s
monthly pre-disability earnings to a maximum of $7,000 per month 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.
XVIII. The District shall provide a short-term disability plan for Management Employees
which has a twenty-nine (29) day elimination period up to an employee’s eligibility
for long-term disability and provides 66 ⅔% of an employee’s weekly pre-disability
earnings to a maximum of $1,500 per week for a designated period of nine (9)
weeks in accordance with coverage procured by the District from a carrier to be
determined at the District’s sole discretion.
XIX. 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.
XX. 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.
XXI. In situations where a Management Employee has been injured in a non-duty
accident and their disability leave exceeds thirty calendar days, their merit review
and anniversary dates will be adjusted accordingly for that portion of leave
exceeding thirty (30) calendar days.
XXII. The District established a cafeteria plan under Section 125 of the Internal Revenue
Code. Employees can voluntarily participate in both tax advantage flexible benefit
and dependent care plans. Employees can elect to deduct up to an annual
maximum of $2,000 towards the flexible benefit plan and/or an annual maximum
of $5,000 towards the dependent care plan from their paychecks over twenty-four
(24) pay periods per calendar year. The cafeteria plan will allow Management
Employees to convert their share of insurance premiums, un-reimbursed medical
expenses, child care and other qualifying expenditures to pretax dollars.
XXIII. 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.
XXIV. 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
Management Employees Compensation Letter FYs 2015-2018
purchased safety footwear in an amount not to exceed $200.00 each fiscal year.
Safety footwear must meet American National Standards Institute (ANSI) minimum
compression and impact performance standards in ANSI Z41-1991 or provide
equivalent protection. At the end of the current fiscal year, any unused funds shall
not carry over into the next fiscal year.
XXV. The District shall provide pre-approved reimbursement to Management
Employees for the cost of tuition, fees, books and parking relating to educational
courses directly related to an employee’s essential job duties for the employee’s
present work classification as approved in advance by the General Manager and
the Human Resources/Risk Manager. As education reimbursement each fiscal
year, employees may receive up to the equivalent of one year’s full-time tuition at
California State University for an in-state student.
University and college-level course work must be undertaken at a Western
Association of Schools and Colleges and Universities (WASC) accredited
institution.
To qualify for reimbursement, Management Employees must successfully
complete a pre-approved course with a passing grade (C or better). In the event
of a “Credit/No Credit” course, “Credit” will be considered a passing grade.
Proof of payment and successful completion of the course with a passing grade as
indicated in the District’s Educational Reimbursement Policy must accompany the
Educational Tuition Reimbursement form (Exhibit A of the District’s Educational
Reimbursement Policy).
Management Employees 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 final 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.
In the event of a layoff or work hour reduction, reimbursement will cover courses
that are already in progress, provided that the employee successfully completes
them with a passing grade and fulfills the other provisions of the Educational
Reimbursement Policy.
Management Employees Compensation Letter FYs 2015-2018
XXVI. 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 a minimum of one-half (1/2)
the vacation time to which the employee is entitled within the same annual period
of the sold vacation time remains in the employee’s vacation account after the cash
distribution. Sell-back of vacation time will only be paid on the second payday in
November of each year.
XXVII. Management Employees will be entitled to car allowance of $400.00/month as
determined by the General Manager. The Engineering Manager, Finance
Manager, IT Manager, Human Resources/Risk Manager, Operations Manager and
Public Information Manager positions shall be eligible for this benefit.
XXVIII. Management Employees shall receive a maximum of forty (40) hours of
management leave with pay each fiscal year. Unused management 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 management leave time to the next fiscal year.
Management Employees joining after the start of the fiscal year shall receive a
prorated benefit based on the number of remaining payroll periods in the fiscal
year.
XXIX. 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 the fiscal year in
which it is accrued or the following fiscal year. Any unused floating holiday time will
be cashed out at the employee’s base hourly rate at the end of the fiscal year
following the fiscal year during which the time was accrued. For example any
unused floating holiday time accrued during fiscal year 2015-16 would be paid out
at the end of fiscal year 2016-17.
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 regularly scheduled workday
immediately following the day observed as the holiday.
Management Employees Compensation Letter FYs 2015-2018
XXX.Effective March 26, 2018 - Acting Pay - Upon recommendation of the Department
head and Human Resources/Risk and Safety Manager, the General Manager
may temporarily appoint an employee to assume the duties of a higher job
classification and shall be designated as "Acting." An employee who is
designated as acting shall receive a minimum increase to the step closest to 5%
above the step held by the employee immediately prior to the acting position, or
shall be placed on Step 1 of the range established for the acting position,
whichever is higher; however, the employee's rate shall not exceed Step 13 of the
range established for the acting position at any time. An employee shall receive
acting pay until officially released of those duties with the following conditions:
a. Compensation shall be requested in writing, outlining the circumstances,
and is subject to the approval of the Human Resources/Risk and Safety
Manager.
b. Acting pay will be effective when the acting appointment begins.
c. An employee shall receive acting pay for a maximum of twenty-six (26)
consecutive pay periods. Under special circumstances, the General
Manager may authorize an extension to meet the needs of the District.
d. If the employee is scheduled to receive a merit increase for the position in
which he/she normally fills while serving in an acting status, the necessary
forms shall be completed to document such increase, and such increase
shall be implemented upon completion of acting status.
e. The employee's merit increase date shall not be affected by acting status
unless he/she is appointed to the position in which he/she was acting. If
such, his/her review date shall be adjusted to coincide with the date he/she
started in the Acting position or as provided in Section 4.12.g.
f. If the employee is scheduled to receive any type of payout that was earned
for the position in which he/she normally fills while serving in an acting
status, the employee shall be paid out at the rate of pay equivalent to the
position in which he/she normally fills.
g. If an employee who is receiving acting pay is promoted to permanently fill
the position in which he/she is acting, the date from which the employee
began receiving acting pay shall be credited to the employee's total time
worked in the position. Following the promotion, the employee's merit
increase, if applicable, will be awarded at the conclusion of the promotional
probationary period (including all time he/she was receiving acting pay). All
subsequent merit increases will be awarded upon completion of twenty-six
(26) complete pay periods.
h. Where an employee continues to perform the job duties for the position
he/she normally fills, acting pay shall not be reported to CalPERS as special
compensation, and therefore is not compensation earnable pursuant to
California Public Employees' Retirement System (CaIPERS) Regulations,
Section 571.
XXXI. The term of this Compensation Letter for Management Employees is for the period
of July 1, 2015 to June 30, 2018.
Marc Marcantonio Date
General Manager
Management Employees Compensation Letter FYs 2015-2018