ADMINISTRATIVE COMMITTEE MEETING
9.	DISCUSS RULES REGARDING DIRECTORS PARTICIPATION IN DISTRICT HEALTH INSURANCE PLANS
Meeting Date:		January 14, 2009	Budgeted: N/A
From:		Darby Fuerst, General Manager	Program: N/A Line Item No.: N/A
Prepared By:		Cynthia Schmidlin	Cost Estimate: N/A
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: At the January 2, 2009 Board Chair/Vice Chair Meeting, Chair Kristi Markey and Vice-Chair Regina Doyle requested that staff provide the Administrative Committee with information regarding the availability and cost of health insurance coverage for Directors. Chair Markey directed the Administrative Committee to discuss the establishment of rules governing director participation in the District plans offered to employees. Director Markey expressed her preference for voluntary participation and reimbursement to the District of any premium costs incurred.

RECOMMENDATION: The Committee should consider establishment of rules regarding Directors participation in District health insurance plans.

IMPACTS TO STAFF/RESOURCES: There is no cost associated with this consideration. Costs may be associated with any proposed rules governing Director participation in District health plans.

BACKGROUND: Previous Boards of Directors have discussed the issue of Director health coverage. They came to the consensus that Directors could participate if premium expenses incurred by the District were reimbursed by each participating member. One former Director was covered for a number of years under this arrangement, however, no formal rule has been adopted by the District regarding health insurance coverage for Board members. The following information outlines the health insurance available to Directors at the present time, the cost of that insurance, and the contract provisions regarding Board member participation:

I. Laborers Health and Welfare Trust of Northern California Special Plan III

This is the insurance plan covering the Management Bargaining Unit, the Confidential Bargaining Unit, and the General Manager. Directors may be covered, but participation is voluntary. The Laborers Special Plan III insurance is a combination plan that provides health, dental, and vision insurance, with a small life insurance component.

The premium is a composite rate of $741 per month, effective March 1, 2009, for all subscribers, no matter how many dependents they have. An additional $20 administrative fee is charged for non-union members. Directors may reimburse the District for the cost of premiums and fees.

This insurance is offered through the District’s labor contract with the United Public Employees of California/Laborers International Union of North America, Local 792. If the represented members of the Management Bargaining Unit were to negotiate a change from the Laborers Trust Plans to the ACWA Plans, as did the General Bargaining Unit, the members of the unrepresented Confidential Bargaining Unit, the General Manager, and any Directors of the Board would no longer be allowed to participate in the Laborers Health Trust Plan.

II. Association of California Water Agencies (ACWA) Anthem Blue Cross PPO Insurance

This is the insurance covering the General Bargaining Unit employees. Directors may be covered under this plan.

Medical: The District contribution towards employee premiums is $515.40 for Employee only, $1216.25 for Employee plus one and $1,409.18 for Family coverage. Participation would be voluntary for both directors and their dependents.

Directors could also be enrolled in the ACWA Dental and Vision plans that cover District employees, but there is no opt-out allowed. All Directors would have to be covered.

Dental: The District premiums are $30.23 for Employee only, $63.38 for Employee plus one and $116.07 for Family coverage.

Vision: There is a $17.01 composite rate for all subscribers, regardless of the number of dependents.

The ACWA contract requires that contribution for both single coverage and coverage for dependents shall be the same for active employees and directors. Therefore, since the District contributes the entire premium cost for General Unit employees and their dependents under the current Memorandum of Understanding, no Board member could be allowed to reimburse the District for his or her premium. Under the ACWA plans, the District would be required to bear the medical costs for any participating Board members and dependents and the dental/vision costs for all Board members.

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