HomeMy WebLinkAbout8.2 Personnel System Modifications CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: September 9, 1985
SUBJECT Personnel System Modifications
EXHIBITS ATTACHED Background Material
1) Memorandum re Fair Labor Standards Act
Implementation
2 ) Memorandum re Reclassification and Amendment
to Classification Plan
3 ) Memorandum re Employee Salary & Benefit Package
4 ) Memorandum re Participation in ABAG Benefits
Trust
Action Items
A) Resolution Amending the Personnel System Rules
B) Resolution Prescribing Time and Method of Paying
Salaries and Wages and Rescinding Resolutions
No. 61-82 and 64-84
C) Resolution Amending the Classification Plan
D) Resolution Amending the Salary and Benefit Plan
E) Resolution Authorizing Participation in the ABAG
Benefits Trust for the Provision of Dental
Insurance
F) Budget Change Form to Implement Estimated Changes
in Salary and Benefit Plan
G) Budget Change Form to Implement Dental and
Education Reimbursement Programs
RECOMMENDATION 1 ) Receive Staff presentation
2 ) Question Staff and deliberate
3 ) Authorize payment of overtime for non-exempt
employees incurred after the April 15 , 1985
effective date for application of FLSA
4 ) Authorize the Mayor to execute a budget transfer
from the contingent reserve totaling $14, 205, as
outlined in items F and G above
5 ) Adopt Resolutions A through E
FINANCIAL STATEMENT: Implementation of modifications will require a budget
transfer totaling $14 ,205
DESCRIPTION The City Manager has met with full-time employees to
evaluate conditions of employment. Staff has also conducted an in depth
survey to determine competitive salary and benefit levels.
Based on this review, several changes have been recommended. In order to
facilitate City Council review, a background memorandum has been prepared on
each key area. Staff has attempted to identify methods for providing these
benefits in the most cost effective manner. This report ' also identifies
necessary modifications as a result of the application of the Federal Fair
Labor Standards Act to municipal governments.
Staff recommends that the City Council review the material and adopt the
appropriate resolutions and budget changes and authorize the payment of
overtime incurred pursuant to FLSA.
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Q 2 COPIES TO:
ITEM NO. y
M E M O R A N D U M
TO: City Council
FROM: City Manager
SUBJECT: Fair Labor Standards Act Implementation
DATE: September 3, 1985
The Federal Government adopted the Fair Labor Standards Act (FLSA) in 1938
and the provisions have been modified over the years. This law establishes
basic minimum wage and overtime pay standards and regulates the employment
of minors.
Application to Local Governments
In 1974 the Act was amended to include all public agencies. Definitions of
employer, enterprise, and public agency were broadened to ;include
municipalities. This amendment maintained an exclusion for elected
officials. The National League of Cities (NLOC) pursued legal action to
prevent the application of the FLSA to all aspects of government operations.
The United States Supreme Court ruled on June 24, 1976 in favor of NLOC. On
February 19, 1984, the Supreme Court ruled in Garcia v. San Antonio
Metropolitan Transit Authority et al. , that the minimum wage and overtime
pay provisions of FLSA apply to the public mass transit employees. In
effect, this ruling reversed the 1974 NLOC decision. The Department of
Labor has established an effective date of April 15, 1985 for enforcing
actions under FLSA.
Provisions of FLSA
The Federal Fair Labor Standards Act requires employers to maintain speci_=ic
records on employees. It also establishes time frames for the retention of
these records. The Act defines a condition that a work week shall not be
more than 40 hours, unless the employee is compensated for the excess hours
at a rate of not less than 12 times the regular rate. The law does not
require that employees working more than 8 hours per day be paid overtime,
provided that the work week total does not exceed 40 hours. A work week
consists of seven twenty-four hour days. Each work week is independent and
work hours cannot be averaged over two weeks ( i.e. , an employee works 30
hours one week and 50 hours the next) . The Act does not consider paid
holidays, vacations or sick leave as hours worked for the purpose of
providing overtime compensation.
The interpretation of these requirements has been quite broad and employers
must exercise control over employee activities. It is recognized as the
duty of management to see that work is not performed if it does not want it
to be performed. This includes working at home, if the employer knows or
has reason to believe the work is being performed. The regulations include
rest periods from five to twenty minutes as working hours and they are
compensable. Bonafide meal periods are not considered work hours. However,
the regulations stress that "the employee is not relieved if he is required
to perform any duties , whether active or inactive, while eating. " The Act
provides that insignificant short periods of time beyond 40 hours are not
compensable. However, a recent court ruling has held that 10 minutes per
day is significant and must be compensated.
The FLSA includes exemptions for charitable work, provided that the work is
not conducted at the employer' s request. Also, the type of volunteer
service must be different than the employee ' s regular work duties. Also, as
noted earlier, the requirements do not apply to elected officials.
r
Bonafide Exemptions
The law allows for exemptions when an employee performs work which is
substantially executive, administrative or professional. FLSA defines each
of these exemptions and requires no more than 20% of the employee' s work to
consist of duties which are non-exempt. Some of the main criteria for these
exemptions are as follows:
o Executive
1) Primary duties consists of management of the enterprise, or of a
customarily recognized department.
2 ) The work must include the customary and regular direction of two
or more employees.
3 ) The exemption requires that the individual must exercise
discretionary powers and have the authority to hire and fire or have
recommendations on these matters given particular weight.
o Administrative
1 ) Exercise discretion and independent judgement.
2 ) Assist a bonafide executive or administrative position, or under
only general supervision work along specialized/technical lines
requiring special training, experience or knowledge, or execute
under only general supervision special assignments and tasks.
o Professional
1 ) Perform work which requires knowledge of an advanced type,
customarily acquired by a prolonged course of specialized
instruction.
2 ) Requires consistent exercise of discretion and judgement.
3 ) The work must be predominantly intellectual and varied in
character. The output cannot be standardized in relation to a given
period of time.
Staff has reviewed the job duties of the City ' s current authorized
positions. It has been determined that the Department Heads and the City
Manager meet the criteria for an exemption under the Executive clause. The
Administrative Assistant, Secretary to the City Manager/Deputy City Clerk,
and Recreation Supervisor would qualify under the Administrative exemption.
The Senior and Associate Planners qualify as bonafide professional
positions. This results in the Secretary classification and Finance
Technician as being eligible for overtime compensation. Also, all current
part-time City employees would fall within the guidelines for overtime
compensation.
Steps Reguired .to Implement FLSA
The Department of Labor (DOL) has required that Cities implement the Act
with an effective date of April 15, 1985.. DOL has postponed the initiation
of enforcement actions until October 15, 1985. The law carries penalties
including the award to an employee of overtime owed plus an equal amount as
damages.
The City Manager has emphasized to department heads the need to conduct
business within the regular work week. Since the April 15th effective date,
non-exempt clerical employees have worked a total of 21. 5 hours of overtime.
This does not include attendance at meetings for which they have already
been compensated at time and one-half. The majority of this time occurred
in April and May when Staff was reviewing the requirements and implications
of FLSA. The cost of paying time and one-half for the hours worked is
approximately $290. Based on the review of the Act, Staff recommends that
the City Council authorize payment which will bring the City into
compliance. The current personnel rules only provide for compensation when
taking minutes at a meeting.
To address this matter, Staff has also prepared a revision to the Personnel
System Rules. The definition of when overtime compensation will be, paid has
been defined to be consistent with federal law. The language has also been
drafted to provide consistency with current City policy. Under FLSA
guidelines, if a non-exempt employee took a day of vacation and worked at a
Commission meeting in the same work week, overtime compensation would not be
required provided that the individual did not work more than forty hours.
The City had established the policy of compensating secretaries at time and
one-half for meetings, regardless of the number of hours worked. The
proposed amendment continues this policy.
Staff has also proposed a change in the pay periods from semi-monthly to
bi-weekly. This change will facilitate the record keeping requirements
under FLSA. The Act requires the maintenance of records showing the. -hours
° worked each work week. A semi-monthly pay cycle results in a work week, as
defined under FLSA, being included in more than one pay period. The City
would incur an additional $90 in professional finance services for the
preparation of additional payroll periods. This is a result of 26 paychecks
issued as opposed to 24 on a semi-monthly payroll.
Staff recommends that the City Council adopt the resolution establishing pay
periods.
M E M O R A N D U M
TO: City Council
FROM: City Manager
SUBJECT: Reclassification and Amendment to Classification Plan
DATE: September 3 , 1985
As the City Council is aware, the administrative structure has evolved to
meet the goals and objectives established by the City Council.
The City Manager' s Office is now establishing the handling of finance
matters through the addition of a full-time Finance Technician. The
supervision and administration of this area has become more complex as the
scope of the oranizational goals has increased. The City Manager' s Office
has also coordinated personnel matters including the recruitment and
screening for all full-time personnel. The growth in these areas has
necessitated a change in the level of personnel assigned within the City
Manager' s Office.
The Administrative Assistant to the City Manager classification is the
current position contained in the Classification Plan. In reviewing similar
sized organizations, it appears that an Assistant to the City Manager
classification would reflect the increased scope of responsibilities
required by the changes in the organization. Staff has prepared a proposed
job description for this position.
The current Personnel System Rules do not address the method of
reclassifying a position. Staff has referred to the "League of California
Cities Suggested Personnel Ordinance and Resolution". This document was a
model prepared by specialized legal counsel. The proposed wording was
amended to match the City' s needs. An amendment to the Personnel System
Rule Number III is necessary to address this issue.
The proposed language is divided into two sections. The first establishes a
system by which the City Manager must allocate positions to the adopted
classifications. This is done in accordance with the adopted Budget and the
scope of duties required. The second section addresses the actual
reclassification of employees and conditions under which this type of change
can be made.
A review of the Classification Plan has noted a deficiency in the part-time
positions. The City Manager' s Office has participated in the High School
Work Experience Program utilizing the services of a clerk-typist level
position. The temporary nature and initial development of this position has
delayed the creation of job specifications. The formal adoption of a job
description will complete the classification plan.
Staff recommends that the City Council adopt the Resolution Amending the
Classification Plan and the Resolution Amending the Personnel System Rules.
This will clarify the method of reclassifying positions and provide for
appropriate job descriptions.
M E M O R A N D U M
0
TO: City Council
FROM: City Manager
SUBJECT: Employee Salary & Benefit Package
DATE: September 5, 1985 "
At the Regular City Council meeting on August 27, 1984, the City Council
adopted a Resolution Establishing a Salary and Benefit Plan. This
resolution has been amended as new positions were added. The proposed
resolution consolidates the amendments and establishes a comprehensive. -
salary and benefit package.
The proposed salaries are based on market conditions determined by a survey
of comparable positions in similar agencies. The salary ranges for Finance
Technician, Preschool Aide, and Preschool Instructor remain unchanged--. from
their adopted range at the meeting on August 12, 1985. The salary ranges of
full time positions have also been established giving consideration to the
relationship of each position to others in the organization. Section A
differs from previous Salary and Benefit Plans, in that it designates an
hourly rate of pay with monthly salaries shown for informational purposes.
The use of an hourly rate will facilitate requirements under the Federal
Fair Labor Standards Act and other payroll computations.
Section B establishes ranges for part-time employees. The changes included
in the proposed resolution are an increase of one dollar in the ranges for
Building Attendant, Recreation Leaders I and II and Senior Recreation
Leader. The existing ranges only provided one dollar between the minimum
and the maximum rate. The extension of the range will provide additional
latitude and room for movement based on performance and the Personnel System
Rules. The part-time Clerk Typist range is not included in the current
Salary and Benefit Plan. This position has evolved from the City' s
involvement in the High School work experience program. Sufficient funds
are included in the City Manager' s budget to continue funding this position.
Article II of the Salary and Benefits Plan defines benefits provided to
full-time employees. The proposed resolution establishes the continuation
of medical insurance, Public Employees ' Retirement System benefits, and car
allowances at their current level. The cost of most of the health insurance
plans offered did increase, however, the current City contribution continues
to provide for employee ' s needs. The recommended contribution towards a
dental insurance program has increased by $2. 59. This reflects a change in
the City' s premium rate due to an error in the insurance company' s premium
calculation. During the first year of the program, the carrier did not
include orthodontia coverage charges. This contribution level also presumes
the City ' s participation in the Association of Bay Area Governments Benefit
Trust, for the provision of dental insurance.. This program is discussed in
more depth in an accompanying memorandum.
The Dental Benefit Program also includes a new program which is proposed to
reduce the employee ' s out-of-pocket expense. The City will establish a
dental reimbursement plan. Each employee who is covered under the dental
insurance program shall be eligible to receive reimbursement for co-payments
and charges not covered by the City' s insurance, or any co-insurance which
the employee may have. The maximum amount of reimbursement shall be $500
per year.
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Page 2
Section C of the Salary and Benefit Plan provides for Long Term Disability . �
Insurance for full-time employees. The proposed plan would provide for
payment of up to two-thirds of an employee' s salary, provided the employee
had suffered from a disability and been unable to work for sixty days. The
elimination period is closely related to the maximum leave accrual of 45
days. Most insurers require a group of at least 10 employees and premiums
are based on the age and salaries of employees covered. Due to current ,
vacancies, only 9 of the City' s 13 full-time positions are filled. Staff
will bring a specific plan recommendation to the City Council for its
consideration at a future meeting.
Section F of the Plan provides for an Education Reimbursement Program. , - The
employee must be pursuing courses which are job related and receive prior
approval from the City Manager. The proposed program requires that the
employee contribute at least one-half of the tuition and fees. The amount
to be reimbursed shall not exceed $500 per year. The reimbursement will
only be provided upon submittal of proof of satisfactory completion Qf the
coursework.
The final area which should be addressed is the provision of paid holidays
for full-time regular employees. The City currently observes 9 holidays as
outlined in Rule XV of the Personnel System Rules. They are as follows:
a) New Year' s Day
b) Washington' s Birthday
c) Memorial Day
d) Independence Day
e) Labor Day
f) Veteran's Day
g) Thanksgiving Day
h) Day following Thanksgiving
i ) Christmas Day
The average number of holidays observed by the 21 municipalities surveyed
was 12. 9. Therefore, it is recommended that 2 holidays be added to bring
the total observed to 11. The 2 days recommended are Christmas Eve and New
Year' s Eve. During the winter holidays, the number of individuals
conducting business at public offices is relatively few and it has been
determined that this schedule will result in the least amount of
inconvenience to the public. This change will require an amendment to the
Personnel System Rules.
Staff recommends the enactment of the proposed Amended Salary and Benefit
Plan through the adoption of the Resolution Amending the Salary and Benefit
Plan and the Resolution Amending the Personnel System Rules.
M E M O R A N D U M
TO: City Council
FROM: UP5 City Manager
SUBJECT: Participation ation in ABAG Benefits Trust
DATE: September 5, 1985
The Association of Bay Area Governments (ABAG) has initiated a Benefits
Trust. This program offers public agencies the ability to reduce the costs
associated with employee benefit programs. A summary of the Benefits Trust
and the Trust Agreement are attached.
ABAG has retained Equitable Benefit Insurance Services, Inc. , to administer
the Trust. In essence, the participating members will pay premiums directly
to the Trust. Equitable will be responsible for claims administration
pursuant to the selected plan. In some offerings such as health insurance,
the Trust will actually purchase insurance to cover large claims: This
allows the Trust members to retain monies which would normally be income
earnings to the insurance company. ABAG has committed a substantial amount
of resources to determine the feasibility of this arrangement. In addition,
the selection of Equitable, which is a well established firm in this field,
should provide for a sound program.
As a Trust member, the City will be entitled to 2 representatives. The
current Trust Agreement requires that one representative be from management
and one representative from a participating union or employee organization.
The Trust Administrator has indicated that ABAG Legal Counsel will suggest
an amendment to the agreement. This would provide for two member
representation in member agencies which have neither a union or employee
organization.
The Trust is organized under two separate structures. Agencies with more
than 700 employees must establish themselves as a separate trust. Agencies
which have between 400 and 700 employees have an option of either
establishing a separate trust fund or participating in a pooled trust.
Agencies with less than 400 employees must be pooled with others and secure
coverage through the Trust. The City of Dublin would participate in the
final group.
The City' s current dental insurance provider bases benefits on an
established schedule. This schedule may or may not reflect the usual and
customary charges for specified procedures. This may result in the employee
paying a co-payment even for procedures which are supposed to be covered at
100%.
The proposed ABAG plan would provide benefits based on the "Usual, Customary
and Reasonable" (UCR) level. This is based on the average rates charged by
dentists in the area. This should provide a higher level of benefits than
what are currently provided.
The ABAG proposal also has a lower deductible requirement for the covered
individual. The current plan has a $50 deductible with a maximum of $125
per family. The proposed plan would have a $25 deductible with a maximum of
$75 per family. A complete summary of the ABAG proposal is shown in the
"Description of Coverage" contained in the July 2, 1985 letter from
Equitable Benefit Insurance Services , Inc.
Given the ability to obtain better coverage under the ABAG Benefits Trust at
the same premium cost, Staff recommends adoption of the proposed plan. This
will require the adoption of the Resolution Authorizing Participation in the
ABAG Benefits Trust.
RESOLUTION NO. - 85
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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AMENDING THE PERSONNEL SYSTEM RULES
WHEREAS, the City Council of the City of Dublin has
adopted Personnel System Rules contained in Resolution No. 29-84
and amended by Resolution No. 100-84; and
WHEREAS, the rules do not currently contain provisions
for the reclassification of an employee; and
WHEREAS, the application of the Federal Fair Labor
Standards Act has imposed new requirements related to the
provision of overtime compensation; and
WHEREAS, the City Council recognizes the need to observe
holidays in a manner which will provide a balance between
competitve employee benefits and the efficient provision of public
services.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Dublin does hereby amend Resolution No. 29-84 as
follows :
Rule III - Classification Plan
Section 2 - Allocation of Positions: The City Manager shall
allocate each position in the competitive service to one of the
classes established by the plan. Consideration shall be given to
the scope of duties required and the adopted Annual Budget and
Financial Plan, and any subsequent amendments which address the
allocation of resources . The task should be completed in a manner
which promotes efficient operations.
Section 3 - Reclassification: The City Manager shall have the
authority to allocate an employee to a more appropriate class,
provided that the assigned duties have been materially changed by
the City so as to necessitate reclassification, whether new or
already created. Reclassifications shall not be used for the
purpose of avoiding restrictions concerning demotions and
promotions , nor to effect a change in salary in the absence of a
significant change in assigned duties and responsibilities.
Rule XIII - Compensation and Benefits
Section 4 - Overtime Compensation: The payment of overtime
compensation shall be in accordance with State and Federal laws.
The City Manager shall conduct a review of the responsibilities of
each position and designate whether the position is exempt from
overtime compensation provisions pursuant to the Code of Federal
Regulations: Title 29: Part 541 . Those employees who serve in a
position which is designated as exempt, shall not be eligible for
overtime compensation. Non-exempt employees who take minutes at a
City Council or Commission meeting shall be compensated at one and
one-half times their regular hourly rate for the time they are
attending the meeting, regardless of the number of hours worked in
the corresponding workweek.
Section 5 - Compensatory Time Off: At the discretion of the City
Manager an employee who is designated as exempt under Section 4
above, may be granted Compensatory Time Off. The employee shall
have consistently worked in excess of normal working hours,
excluding incidental overtime, which is described as one ( 1 ) hour
or less. Compensatory Time Off shall not be granted for
increments greater than eight ( 8 ) hours.
Rule XV - Attendance and Leaves
Section 2 - Holidays: The following days shall be deemed holidays
and all full-time regular employees shall receive eight ( 8) hours
of compensation at their regular hourly rate:
a) New Year' s Day January 1
b) Washington' s Birthday Third Monday in February-
c) Memorial Day Last Monday in May
d) Independence Day July 4
e) Labor Day First Monday in September
f) Veteran' s Day November 11
g) Thanksgiving Day Fourth Thursday in November
h) Day following Thanksgiving Day following above
i ) Day preceeding Christmas December 24
j ) Christmas Day December 25
k) Day preceeding New Year' s Day December 31
PASSED, APPROVED AND ADOPTED this 9th day of September, 19x5.
AYES:
NOES:
ABSENT:
Mayor
ATTEST:
City Clerk
RESOLUTION NO. - 85
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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PRESCRIBING TIME AND METHOD OF PAYING SALARIES AND WAGES
AND RESCINDING RESOLUTIONS NO. 61-82 AND 64-84
WHEREAS, the Dublin City Council is desirous of amending Resolutions,
No. 61-82 and 64-84 which established the time and method of paying
salaries and wages to officers and employees; and
WHEREAS, due to reporting requirements of the Fair Labor Standards Act
a change in the reporting and pay periods will facilitate compliance with
federal law.
NOW, THEREFORE, BE IT RESOLVED that the provisions of City of Dublin
Resolution No. 61-82 and City of Dublin Resolution No. 64-84 shall be
rescinded.
BE IT FURTHER RESOLVED by the City Council of the City of Dublin. that
employees shall be paid by a warrant issued by the City Clerk in the :
following manner:
1. City Council members shall be paid by a warrant. issued monthly by
the City Clerk.
a. The warrant shall be issued on the first of the month covering
the service for the prior month.
b. If the first of the month falls on a Saturday, the payment
shall be made on the preceeding Friday. If the first falls on
a Sunday, the payment shall be made on the following business
day.
2. Full-time and part-time employees shall be paid on a
bi-weekly basis as follows:
a. Each bi-weekly cycle shall include two seven day work weeks.
(The normal work week shall be defined in Rule XV-Section 1 of
the Personnel System Rules. ) The payroll reporting period
shall be fourteen ( 14 ) days in length.
b. An exception shall be made to Number 1 above for the first
cycle which shall commence October 1, 1985 with payment
pursuant to this schedule occuring on October 18, 1985. This
payroll will cover the payroll reporting period from
October 1 through October 11.
C. Payment for the 14 day period shall be made on the seventh day
following the close of the payroll reporting period.
d. If the regular pay day occurs on a holiday, the payment shall
be made on the first working day prior to the regular pay day.
3. If any employee leaves employment with the City, he/she may be
paid on the day his/her employment ends.
PASSED, APPROVED AND ADOPTED this 9th day of September, 1985.
AYES:
NOES:
ABSENT:
Mayor
ATTEST:
City Clerk
RESOLUTION NO. - 85
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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PRESCRIBING TIME AND METHOD OF PAYING SALARIES AND WAGES
AND RESCINDING RESOLUTIONS NO. 61-82 AND 64-84
WHEREAS, the Dublin City Council is desirous of amending Resolutions.
No. 61-82 and 64-84 which established the time and method of paying
salaries and wages to officers and employees; and
WHEREAS, due to reporting requirements of the Fair Labor Standards Act
a change in the reporting and pay periods will facilitate compliance with
federal law.
NOW, THEREFORE, BE IT RESOLVED that the provisions of City of Dublin
Resolution No. 61-82 and City of Dublin Resolution No. 64-84 shall be
rescinded.
BE IT FURTHER RESOLVED by the City Council of the City of Dublip that
employees shall be paid by a warrant issued by the City Clerk in the '
following manner:
1. City Council members shall be paid by a warrant- issued monthly by
the City Clerk.
a. The warrant shall be issued on the first of the month covering
the service for the prior month.
b. If the first of the month falls on a Saturday, the payment
shall be made on the preceeding Friday. If the first falls on
a Sunday, the payment shall be made on the following business
day.
2. Full-time and part-time employees shall be paid on a
bi-weekly basis as follows:
a. Each bi-weekly cycle shall include two seven day work weeks.
(The normal work week shall be defined in Rule XV-Section 1 of
the Personnel System Rules. ) The payroll reporting period
shall be fourteen ( 14 ) days in length.
b. An exception shall be made to Number 1 above for the first
cycle which shall commence .October 1, 1985 with payment
pursuant to this schedule occuring on October 18, 1985. This
payroll will cover the payroll reporting period from
October 1 through October 11.
C. Payment for the 14 day period shall be made on the seventh day
following the close of the payroll reporting period.
d. If the regular pay day occurs on a holiday, the payment shall
be made on the first working day prior to the regular pay day.
3. If any employee leaves employment with the City, he/she may be
paid on the day his/her employment ends.
PASSED, APPROVED AND ADOPTED this 9th day of September, 1985.
AYES:
NOES:
ABSENT:
Mayor
ATTEST:
City Clerk
RESOLUTION NO. - 85
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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AMENDING THE CLASSIFICATION PLAN
WHEREAS, in accordance with the Personnel System Rules,
the City Council adopted Resolution No. 30-84 and subsequent
amendments which comprise the Classification Plan; and
WHEREAS, the growth of the City' s internal staff and
individual responsibilities has necessitated a reclassification;
and
WHEREAS, the development of a comprehensive classifi-
cation plan requires the adoption of job descriptions for all
part-time positions.
NOW, THEREFORE, BE IT RESOLVED that Resolution No. 30-84
and subsequent amendments shall be further amended to include the
following classifications and attached job descriptions (Exhibits
A and B) .
BE IT FURTHER RESOLVED that these documents shall become
a part of the official classification plan for he City of Dublin:
Assistant to the City Manager Exhibit A
Clerk-Typist/Part-Time Exhibit B
PASSED, APPROVED AND ADOPTED this 9th day of September,
1985.
AYES:
NOES:
ABSENT:
Mayor
ATTEST:
City Clerk
.i
ASSISTANT TO THE CITY MANAGER
Definition
Under general direction of the City Manager performs a wide
variety of administrative and confidential assignments which
contribute to effective citywide management. The position may
serve as the City Manager' s liasion on specific projects,,
programs, or functional areas within the organization.
Examples of Duties
Performs a wide variety of responsible assignments involving
program coordination, administrative research and reporting;
preparation and review of contracts; coordinates the preparation
of City newsletter, Capital Improvement Program and Budget;
represents the City and the City Manager at meetings with other
agencies and groups; may supervise other personnel; prepares
reports and makes presentations to the City Council; provides
administrative support in the areas of personnel administration
and finance; manages various special projects, including those
involving State and Federal grant money; attends meetings and
conferences as requested; and performs other related duties as
required.
Qualifications
Education and Experience
A bachelor' s Degree from an accredited college or university,
majoring in Public or Business Administration or a related field.
A minimum of four years of full-time professional experience in
administrative staff work in a municipal government. (A master'.s
degree in Public or Business Administration or related field may
be substituted for one year of the required experience. )
Knowledge and Abilities
The Assistant to the City Manager must have knowledge of the
scope and function of local government; principles of public
administration, municipal finance and personnel operations; and
applicable government regulations. The position requires the
ability to prepare and present succinct oral and written reports;
establish and maintain effective working relationships with
officials, employees and the general public; to work
independently; supervise the performance of other employees; and
understand the components and operations of municipal finance.
Licenses
Requires a valid California Class III driver' s license to be
secured prior to employment and maintained current as a condition
of employment.
CLERK - TYPIST / PART TIME
Definition
Under direct supervision an entry level position which performs
clerical functions including typing, filing, photocopying,
telephones , and general office work.
Examples of Duties
Files documents and reports ; types correspondence and other
material ; answers telephones and takes messages or directs the
call to the appropriate department ; performs some functions
traditionally found in a mail room; operates photocopying
machine ; completes the copying and collating of various
documents ; operates booklet binding machine ; posts public
notices ; and other duties as required .
Qualifications
Education and Experience
Completion of at least the 10th grade with course work in typing,
business , or other related courses . Work experience is not
required but desirable .
Knowledge and Abilities
Knowledge of modern office practices .and procedures , alphabetical
and numeric filing systmes , proper correspondence format , and
business english, punctuation and spelling. Ability to type 45
words per minute , follow instructions , learn new skills , complete
assignments in an orderly fashion, and to exercise courtesy and
tact in meeting or talking with the public .
Licenses
Requires a valid California Class III driver ' s license be secured
prior to employment and maintained as a condition of employment .
RESOLUTION NO. - 85
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
------------------------------------
AMENDING THE SALARY AND BENEFIT PLAN
WHEREAS, the City Council has adopted a Salary and Benefit
Plan pursuant to the Personnel System Rules; and
WHEREAS , subsequent to the adoption of the plan, amendments
have been necesasary to account for changes in the organization; and
WHEREAS , the City Council is desirous of having competitive
wage and benefit provisions which will attract and retain quality employees;
and
WHEREAS, the consolidation of the amendments and new
modifications will facilitate the efficient administration of the personnel
system.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Dublin that the following Salary and Benefit Plan shall be established.
ARTICLE I : SALARY PROVISIONS
Section A: Full-Time Employees
Employees covered by this resolution shall be paid hourly salaries within the
following ranges with the exclusion of any Performance Pay Adjustment in
accordance with the personnel rules. The inclusion of monthly salary ranges
is for informational purposes only.
Monthly Monthly Hourly Hourly
Minimum Maximum Minimum Maximum
Administrative Assistant to City Manager $2125 $2675 $12 . 26 $15. 43
Assistant to the City Manager $2790 $3480 $16. 10 $20. 08
Associate Planner $2320 $2900 $13. 38 $16 . 73
Finance Technician $1590 $2030 $ 9. 17 $11 . 71
Planning Director* $3125 $3925 $18. 03 $22. 64
Recreation Director* $2790 $3480 $16. 10 $20. 08
Recreation Supervisor $1880 $2350 $10. 85 $13 . 56
Secretary $1590 $2030 $ 9. 17 $11 . 71
Secreatary to the City Manager/Deputy City
Clerk $2000 $2525 $11 . 54 $14. 57
Senior Planner $2675 $3360 $15. 43 $19 . 38
* Denotes Department Head Designation
Section B: Part-Time Employees
The following part-time classifications shall be paid hourly salaries within
the ranges shown below.
Minimum Maximum
Building Attendant $5.00 $ 7. 00
Clerk - Typist $4. 00 $ 6. 00
Planning Intern $5. 00 $ 6.00
Preschool Aide $5. 00 $ 6. 00
Preschool Instructor $7.00 $10. 00
Recreation Intern $5.00 $ 6. 00
Recreation Leader I $3.35 $ 5. 00
Recreation Leader II $4. 00 $ 6. 00
Recreation Specialist $5. 00 $15. 00
Senior Recreation Leader $6. 00 $ 8. 00
Article II : BENEFITS
Article II shall apply to all full-time employees of the City of Dublin,
unless otherwise stated.
Section A: Medical Insurance
For medical insurance the City offers qualified employees the option to select
eligible plans administered under the California Public Employee' s Retirement
system, Public Employee' s Medical and Hospital Care Act.
The City will contribute a maximum of $224. 00 exclusive of administrative
charges towards medical insurance. If the cost of coverage exceeds the amount
of the City contribution, the additional cost will be paid by the employee
through payroll deductions.
Section B: Dental Insurance
The City will contribute on behalf of each full-time employee a maximum of
$43. 67 exclusive of administrative charges to a dental insurance plan selected
by the City.
The City shall also establish a dental reimbursement trust fund for each
employee who is covered under the dental insurance program. The trust fund
shall be used to pay qualified dental expenses and co-payments which are not
paid either by the City provided dental insurance, or, any dual coverage
provided by an employee ' s spouse. The amount of reimbursements shall not
exceed $500 for each employee and/or dependents per year. The fund shall be
replenished each September 1st, unless the program is otherwise amended or
repealed by the action of the City Council. The payment of any dental
expenses pursuant to this section shall be further contingent upon the
fulfillment of requirements established by the City Manager.
Section C: Disability Insurance
The City will contribute on behalf of each full-time employee the cost of
premiums, ' associated with the provision of Long Term Disability Insurance,
with an elimination period of sixty days. The insurance plan shall be
selected and approved by the City Council. Specific benefits shall be defined
in the plan documents.
Section D: Retirement
The City will provide the California Public Employee ' s Retirement System 20 at
age 60 plan, to all eligible employees. The employee and the City shall make
contributions to the plan, as determined by the City Council.
Section E: Car Allowance
Department Heads shall receive a car allowance of $175. 00 per month. If an
employee receives a monthly allowance, he/she shall be entitled to 10 cents
per mile for local operating costs while on City business. Any employee who
uses their personal automobile for official business shall receive a
reimbursement in the amount of 25 cents per mile, provided they do not receive
a monthly car allowance. (This shall include part-time employees. ) When
traveling out of the area , on City business, the City will reimburse 25 cents
per mile for the use of a private vehicle or air transportation costs,
whichever is less. The payment of any mileage reimbursements or car allowance
shall be contingent upon the fulfillment of requirements established by the
City Manager.
Section F: Education Reimbursement
Full time employees shall be eligible to participate in an education
reimbursement program. The City shall only reimburse the employee for courses
undertaken which are job related. The employee must obtain prior
authorization from the City Manager and reimbursement will only be provided
upon submittal of proof of satisfactory completion of the courses undertaken
with a passing grade when applicable. The City will reimburse an amount equal
to one-half of the employees tuition and/or fees, however, the amount
reimbursed shall not exceed $500. 00 per year. The payment of any
reimbursements shall be contingent upon the fulfillment of reporting
requirements established by the City Manager.
Section G: This Resolution shall supersede any previous resolutions adopted
by the City Council which are in conflict.
PASSED, APPROVED AND ADOPTED this 9th day of September, 1985.
AYES:
L
NOES:
ABSENT:
Mayor
ATTEST:
City Clerk
RESOLUTION NO. - 85
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
--------------------------------------
AUTHORIZING PARTICIPATION IN THE
ABAG BENEFITS TRUST FOR THE PROVISION OF
DENTAL INSURANCE
WHEREAS, the City Council of the City of Dublin has
determined that dental insurance is a desirable benefit to provide
to full-time employees; and
WHEREAS, the City desires to provide this benefit in a
cost efficient manner; and
WHEREAS, the Association of Bay Area Governments (ABAG)
has established a Benefits Trust which allows member agencies to
pool their resources and obtain favorable rates; and
WHEREAS, the ABAG Benefits Trust will provide
comprehensive dental coverage at a competitive premium rate; and
WHEREAS, the Trust Administrators have indicated that
the members will amend the Trust Agreement to allow for equal
representation by the City of Dublin.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Dublin that the Mayor is hereby authorized to execute
the Trust Agreement for the Association of Bay Area Government
Benefits Trust.
BE IT FURTHER RESOLVED that Staff shall be authorized to
execute an application for Option 1 - Dental Insurance.
PASSED, APPROVED AND ADOPTED this 9th day of September,
1985.
AYES:
NOES:
ABSENT:
Mayor
ATTEST:
City Clerk
CITY OF DUBLIN
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APPLICATION TO JOIN THE
ABAG BENEFITS TRUST
Members and cooperating members of ABAG may join the ABAG Benefits
Trust (the Trust) to provide insurance and third-party benefits for their
employees. The Trust offers two options. Member jurisdictions may enroll in
either or both options.
OPTION 1
Under this option a member jurisdiction pools its current insurance
health, dental, and vision benefit programs with other ABAG Trust members. The
member jurisdiction becomes a Trust member upon execution of the Trust
Agreement. The Trust administrators, Equitable Benefit Insurance Services,
Inc., must arrange for transfer of the r ember's current insurance program(s) to
the Trust.
OPTION 2
A member jurisdiction electing this option will offer the ABAG PC
Plan as an option to its employees along with other benefit programs offered.
A member jurisdiction becomes a Trust member as soon as at least one of its
employees participates in the ABAG PC plan. Participation under this plan
requires a conmittment to dispense information, including but not limited to
brochures, about the ABAG PC plan to the member's employees.
The CITY OF DUBLIN hereby applies for membership in the ABAG Benefits
Trust. (Check all applicable spaces)
1. Option 1 - Trust sponsored program for
Medical
Dental
Vision
2. Option 2
This application will be reviewed by ABAG and the Trust
Administrators. It is understood that participation in the Trust does not
become effective until after execution of the Trust document.
By:
Title
SUMMARY OF PROVISIONS OF ABAG BENEFITS TRUST
This summary is not intended to be all inclusive but to point out the provisions
most likely of interest to the participants and beneficiaries in the ABAG Benefits
Trust (the Trust). Review of the entire Trust document is recommended.
1. MEMBERS.
In order to participate in the Trust, an entity must be a member or cooperating
member of ABAG. Non-participating members of ABAG may join the Trust on the
first day of any month.
2. WITHDRAWAL AND TERMINATION.
Trust members may withdraw from the Trust upon thirty days written notice to the
Board of Trustees and other Trust members. The Trust cannot be revoked by the
Trustors. It may be terminated by the majority of the Trust members upon thirty
days notice to all persons dealing with the Trust. Upon termination, after payment
of debts, the Trust assets shall be distributed to each Trust member on a pro rata
basis according to the extent of each member's contribution of funds since the
creation of the Trust.
3. HEALTH, DENTAL, VISION AND LIFE BENEFIT.
All those Trust members with seven hundred or fewer participating employees may
secure coverage through the Trust. Those members with four hundred to seven
hundred participating employees may choose either to have their own trust or to be
part of the larger ABAG Trust. Those members with seven hundred or more
participating employees must have their own trust (i.e., they will not be pooled
with other members), though they will still receive the negotiated benefits (guaran-
teed administrative and insurance cost, flexible benefits design,etc.) of the ABAG
Trust.
4. CONTRIBUTIONS.
Contributions to the Trust on behalf of the participant employees, regardless of the
plans chosen, are to be made by the employers, even though employees may be
contributing a portion of the premium.
5. REPRESENTATIVES.
Each trust member will have two representatives to the Trust. One representative
will be a management representative selected by management. The second
representative will be a union or employee organization representative selected by
that organization. The representative's term of office is one year. They will meet
at least one time per year and will elect the Board of Trustees.
6. BOARD OF TRUSTEES.
After an initial period in which an ABAG Committee will act as interim trustees,
the Board of Trustees will be composed of eight members. Four members will be
elected by management and four members will be elected by labor. Each represen-
tative will have one vote on all matters except for the election of the Board of
Trustees when each representative will have one-half of the votes necessary to
elect the entire Board (or four votes).
The term of office for the Board of Trustees is two years with four members to be
elected each year. The Trustees will exercise decision-making powers concerning
the Trust including but not limited to the following delegable powers: (1) invest
funds, (2) receive contributions from trust members, (3) determine the benefit
plans to be offered through the Trust, (4) contract for services with insurance
administrators and ABAG, and (5) determine ali questions relating to eligibility for
benefits, payment of benefits and similar questions with the Trustees' decision
binding on all interested parties.
7. DEADLOCKS.
A majority vote is required for action by the Board of Trustees. Should a deadlock
occur, the matter will be submitted to an adjustment board to be composed of one
member selected by labor, one member selected by management, and one member
selected by ABAG. If the Adjustment Board refuses or is unable to resolve the
dispute, the matter shall be submitted to an arbitrator to be determined by the
Board of Trustees.
8. OFFICERS.
The Board of Trustees will select the officers of the Corporation who shall be a
chair, vice-chair, and secretary-treasurer. The Board shall meet at least one time
per calendar quarter.
9. INDEMNITY.
The liability of ABAG and its members, directors, officers and employees; the trust
members; the trustees; the representatives; and the unions or employee organiza-
tions, is strictly limited by the Trust to acts of gross negligence, recklessness or
intentional torts. The Trust is obligated to indemnify and defend the trustees as
well as ABAG and its members, directors, officers and employees; the representa-
tives and the unions or employee organizations in the event of a lawsuit.
ASSOCIATION OF BAY AREA GOVERNMENTS BENEFITS TRUST
This trust agreement effective as of c� t df by and between the
A
Association of Bay Area Governments (herein AG) and United Public Employees
Local 790 (herein Union), as trustors, and the Cities, Counties, and Special
Districts of
as trustees, and those entities who may hereafter become parties under the terms
of this Trust Agreement.
WHEREAS, the trustees (herein trust members) are all members or
cooperating members of ABAG who desire to provide insurance and third-party
coverage for their respective employees; and
WHEREAS, the members of ABAG face continuing obligations to pay
increasingly high rates for insurance coverage for their employees and therefore
deem it desirable to work together in order to identify and utilize all sources and
means to effect savings in the purchase of insurance and third-party coverage; and
WHEREAS, the purpose of this agreement and declaration of trust is to
provide for the establishment and maintenance of a trust for the purpose of
providing dental care, group life insurance, group health insurance and similar
third-party coverage and such other forms of group insurance for medical care,
hospitalization and incidental related benefits as are now or may in the future may
be desired by the trustees;
NOW THEREFORE, in consideration of the mutual promises and
undertakings of the parties hereto, it is agreed as follows:
-1-
ARTICLE I
NAME
This agreement and the trust evidenced hereby shall be referred to as the
Asssociation of Bay Area Governments Benefits Trust (herein ABAG Benefits
Trust).
ARTICLE II
TRUST FUND
This trust is established in order to effect all possible economies in the
purchase of insurance or similar third party coverage for the employees of the
trust members. The ABAG Benefits Trust exists under California law as a legal
entity wholly separate and apart from the members thereof and all existing and
future assets, debts, liabilities, and obligations of the ABAG Benefits Trust shall
now and forevermore be the assets, debts, liabilities, and obligations of the ABAG
Benefits Trust unless the ABAG Benefits Trust is dissolved in accordance with
Article X of this agreement. The ABAG Benefits Trust will provide education,
information and assistance to the trust members with regard to their insurance
programs and will cooperate with persons and organizations whose interests and
purposes are the provision of or distribution of health plan insurance coverage.
The trust fund shall consist of all employer and agency contributions and
investments and reinvestments thereof and all interest and income thereon and all
other contributions and receipts of every kind received by the trustees. No part of
this trust, by amendment or otherwise, shall be used for or diverted to purposes
other than to provide participants and beneficiaries with insurance benefits
pursuant to the terms of this agreement.
ARTICLE III
MEMBERSHIP OF THE TRUST
Section 1. Active Membership
The active membership of the ABAG Benefits Trust is composed of all (1)
ABAG members with fewer than seven hundred (700) participating employees who
choose to participate in purchasing health plan insurance coverage
by pooling with other trust members to provide such coverage through this trust,
(2) ABAG members with more than four hundred (400) participating employees who
choose to have their own programs with ABAG Benefits Trust sponsorship, (3)
ABAG members with more than seven hundred (700) participating employees who
choose to have ABAG Benefits Trust sponsorship of their programs.
Nonparticipating members of ABAG may become trust members on the first
day of any month.
Section 2. Term of Membership.
Membership in the ABAG Benefits Trust shall be for the year for which
insurance coverage or similar coverage is paid in the form of premium payment or
otherwise.
Section 3. Authority and Responsibility
The government of the ABAG Benefits Trust is vested in the membership.
The membership is the primary policy-making body of the ABAG Benefits Trust.
The membership shall elect the Board of Trustees and transact any other business
that may come before it.
Section 4. Membership Representation
Each trust member shall have one representative of management and one
representative from a participating union or employee organization until such time
as the membership decides otherwise by majority vote. Management shall appoint
its representative and labor shall appoint its representative. The membership body
shall consist of representatives of all trust members. No representative can
represent two (2) members simultaneously.
Section 5. Regular Meetings
The membership shall meet at least once annually at a time and place to be
determined by the Board of Trustees.
Section 6. Special Meetings
Special meetings of the membership may be called by the chair of the
Board. The chair shall call a special meeting if petitioned, in writing, to do so, by
at least a majority of the Board of Trustees or 30% of the membership. The chair
-3-
shall call a special meeting for the purpose of the removal of directors and election
of their replacements if petitioned, in writing, to do so by 5% of the membership.
Section 7. Written Notice of Meetings
Written notice stating the time and place of any regular meeting of the
membership shall be mailed to each representative at least 30 days prior to the
meeting. Special meetings shall require at least 10 days prior notice. Notice for
either regular or special meetings shall at no time exceed 90 days. If either the
regular or special meeting is a meeting at which the Board of Trustees are to be
elected, the notice shall include the names of the nominees. For special meetings,
notice must state the general nature of the meeting and no other business may be
transacted.
Section 8. Expenses
Expenses of the representatives of members shall not be reimbursed from
the ABAG Benefits Trust funds.
Section 9. Voting
. Each representative of a member shall have one vote on any issue before
any meeting of the membership, with the exception of the election of the Board of
Trustees when each representative shall have the number of votes equal to one-half
(y2) of the total number of Board members to be elected. There shall be no proxy
voting. To constitute a quorum at any meeting, there must be present at least half
of the management representatives and at least half of the union or employee
organization representatives. If no quorum is present, a meeting may be called to
order, and a meeting may be continued, but no action may be taken until a quorum
is present. If a quorum is not present for a scheduled election, the Board of
Trustees presently in office shall remain in office until the next annual meeting
and be continually vested with the authority to conduct the business of the ABAG
Benefits Trust until that time.
Majority vote is required to take action at any meeting.
-4-
Section 10. Representatives' Term of Office
The term of each office of each representative of a trust member shall be
one year and shall begin immediately upon appointment.
Section 11. Filling of Vacancies
If any representative of a trust member fails to attend two consecutive
meetings of the membership without reasonable cause, the chair shall cause an
inquiry to be made of the trust member and recommend that a new representative
be appointed.
ARTICLE IV
RIGHTS AND LIABILITIES
Except as expressly herein provided, neither employer contributions nor the
trust fund shall in any manner be liable for, or subject to, the debts, contracts, or
liabilities of ABAG; any Board member, member jurisdiction, employer, officer,
agent or employee of ABAG; any union or employee organization; or any trustee
except in his capacity as trustee.
Section 1. Rights of Beneficiaries and Assignment
No participant or employee nor any relative, dependent or beneficiary of
any participant or employee, shall have any right to any assets of the ABAG
Benefits Trust except as otherwise required by law or in accordance with this
agreement as determined by the Board of Trustees. No participant or employee
shall have the option to receive any part of the employer contributions hereunder
rather than the benefits payable under the trust agreement, nor may any
participant or employee receive a cash consideration in lieu of such benefits upon
his/her withdrawal through severance, other employment or otherwise. No
participant; employee; relative, dependent, or beneficiary of any participant or
employee shall have the right to sell, transfer, anticipate, assign, hypothecate or
otherwise dispose of his/her insurance benefits and the Board of Trustees shall not
recognize or be required to recognize any such sale, transfer, anticipation,
assignment, hypothecation, or other disposition; and such benefits, right or interest
shall not be subject in any manner to voluntary transfer, or to transfer by operation
of law or otherwise, and shall be exempt from the claims of creditors or other
-5-
claimants and from all orders, decrees, garnishments, sequestrations, executions or
other legal or equitable process or proceedings to the fullest extent permissible by
law.
Any person objecting to any action or omission hereunder shall advise the
Board of Trustees in writing of the objection within sixty (60) days after first
obtaining actual or constructive knowledge of the facts on which the objection is
based, and must bring any legal action within one (1) year after obtaining such
knowledge. Unless timely objection is properly made, the objection shall be
deemed waived, and there shall be no further proceedings or any legal action with
respect thereto unless the Board of Trustees agrees otherwise. If timely objection
is made, the Board of Trustees shall reconsider the matter and its decision on
reconsideration shall be final and binding unless it is made in bad faith.
Section 2. Liability of Parties
Except as expressly set forth in this agreement, neither an employer nor an
ABAG, nor a Board member, member jurisdiction, officer, employee or agent
thereof, nor a union or employee organization nor any representatives thereof, nor
a Trustee or representative shall be liable or responsible for:
(a) the validity of this agreement; (b) any debts, obligations or liabilities of the
ABAG Benefits Trust; (c) any action or inaction of the Board of Trustees, on
agency principles or otherwise; or (d) the failure or inability of the ABAG Benefits
Trust to pay benefits.
Section 3. Employer-Employee Relationship Not Affected
Nothing in this agreement shall give any employee the right to be retained
in the employment of any employer and any employer-employee relationship
relating to this trust shall continue in the same manner as though this trust had not
been executed.
Section 4. Payments During Incapacity
Notwithstanding any other provisions hereof, if in the judgment of the Board
of Trustees any mental, physical or other incapacity prevents a person entitled to
benefits from properly handling his own affairs, then until any benefit to which
he/she is entitled has been claimed by a legally appointed representative, that
-6-
benefit may, in the discretion of the Board of Trustees either be held for his/her
benefit or paid to any one or more persons or institutions responsible for providing
for his/her care and maintenance. The participant or beneficiary affected shall
promptly be sent notice of any such action.
ARTICLE V
EMPLOYER CONTRIBUTIONS
Payments into this trust fund shall be due and payable at the principal office
of the ABAG Benefits Trust, or at another place designated by the Board of
Trustees, and in such amounts, installments and at such time as required by the
Board of Trustees. All payments shall be for the purchase of insurance or other
costs related thereto, and may be increased yearly on the anniversary date of the
ABAG Benefits Trust.
ARTICLE VI
BOARD OF TRUSTEES
Section 1. Interin Board of Trustees.
The interim Board of Trustees shall consist of the nine members of ABAG's
Finance and Personnel Committee. The term of office of the interim Trustees
shall expire on the date of execution of this agreement by four (4) ABAG members.
Section 2. Number and Appointment of Board of Trustees.
The ABAG Benefits Trust shall be administered by a Board of Trustees
consisting of eight (8) trustees. The membership on the Board will be composed of
both: (1) trust members purchasing insurance through the ABAG Benefits Trust and
(2) members with ABAG Benefits Trust sponsorship of their individual programs.
The proportion of members under category (1) to members under category (2) as
defined in the preceeding sentence on the Board of Trustees shall be determined by
the membership.
Four (4) members of the Board of Trustees shall be elected by management
representatives and four (4) members of the Board of Trustees shall be elected by
the union or employee organization or representatives.
-7-
In the event that there are fewer than eight (8) trust members, the Board
shall consist of one representative of each trust member, with parity between
management and labor to be effected whenever possible.
Section 3. Term of Office
One-half of the trustees elected by management and one-half of the
trustees elected by labor shall serve for an initial one (1) year term and one-half of
the trustees elected by management and one-half of the trustees elected by labor
shall serve for an initial (2) year term, with those serving the one (1) and two (2)
year terms to be selected by lot.
Thereafter the trustees shall serve for two (2) year terms providing his/her
city, county, or special district remains a current and active ABAG Benefits Trust
member.
Vacancies on the Board of Trustees shall be filled by appointment of the
chair subject to ratification of the Board at the next meeting. Any such
appointment shall be only until the expiration of the term of the vacated
trusteeship.
Section 4. Resignation of Trustees
A Board member may resign at any time by serving written notice of his/her
resignation specifying the date when resignation shall take effect upon the chair of
the Board of Trustees at least thirty (30) days prior to the date on which such
resignation is effective with the exception of the interim trustees who shall resign
without notice upon the termination of their appointment to office as provided in
Section 1 of this Article. If the Board member represents a city, county, agency or
special district which is no longer an active member of the ABAG Benefits Trust,
he/she must resign, effective thirty (30) days after the effective date of
nonparticipation.
Section 5. Powers Granted to the Trustees
The powers granted herein to the Trustees are in addition to, and not a
limitation of, all powers granted to Trustees by common law, statute and other
provisions of this trust agreement; are exercisable from time to time and are not
powers to be exhausted by their exercise on one or more occasions; and are
-8-
exercisable in the sole discretion of the trustees. Unless specifically limited by
law or by this agreement, the trustees shall have the power to administer the
ABAG Benefits Trust and do all acts which they consider to be in the best interest
of the ABAG Benefits Trust or its participants or beneficiaries, and to exercise any
and all of the following powers:
A. To enforce, abandon, compromise, settle, release, or defend against,
or have adjudicated by legal proceedings, arbitration or compromise any claim or
demand whatsoever arising out of or which may exist against the ABAG Benefits
Trust.
B. To enter into and enforce contracts in the name of the ABAG Benefits
Trust or the Board of Trustees.
C. To establish and accumulate such funds as the Board of Trustees
deems appropriate to provide for maintenance and administration of the ABAG
Benefits Trust.
D. To receive contributions from the trust members under the terms of
this agreement, and to receive any other income.
E. To employ such executive, consultant, administrative, clerical,
secretarial and legal personnel and other employees and assistants as they deem
necessary or desirable to proper administration of the ABAG Benefits Trust, and to
pay the compensation and necessary expenses of such personnel and assistants out
of the trust fund.
F. To incur and pay out of the ABAG Benefits Trust any expenses
reasonably incidental to the administration of the ABAG Benefits Trust.
G. To invest and reinvest, from time to time, funds not required for
current expenditures and charges, in the manner permitted by Section 53601 of the
California Government Code, and to establish such reserves as it deems
appropriate.
H. To adopt and revise reasonable rules and regulations for administration
of the ABAG Benefits Trust, which are not inconsistent with the terms and intent
of this agreement.
I. To determine what Benefit Plans shall be provided hereunder and
determine, or specifically designate the individuals entitled to determine, the
eligibility of employees, participants and beneficiaries for benefits and the amount
in kind of benefits for which they are eligible, which determination shall be final
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and binding upon the employees, participants, beneficiaries and the parties hereto.
The Board of Trustees may from time to time amend any or all of the provisions of
any Benefit Plan by a majority vote provided that all trust members are informed
of such changes in writing thirty (30) days before the effective date.
I To interpret, or specifically designate the individuals entitled to
interpret, the terms of this agreement, which interpretation, so long as it is
reasonable and in good faith, shall be binding upon the employees, participants,
beneficiaries and the parties hereto.
K. To provide benefits, if desired, through one or more contracts with
insurance companies or other organizations legally qualified to enter into such
contracts; determine the content of any such insurance contracts and benefit
levels; negotiate and enter into such contracts, select underwriters and procure
insurance policies; continually monitor the insurance coverage; modify, renew, or
cancel any such contracts or policies; and claim all rights and benefits granted to
the Board of Trustees or the ABAG Benefits Trust by any such contract or policy.
The Board of Trustees shall exercise all powers granted to the policyholders under
any such contract(s), except and until it relinquishes them in writing.
Nothing in the ABAG Benefits Trust shall be construed as making any
insurance company or organization with which the trust contracts a party to this
agreement or as imposing any obligations on it; its obligations shall be only such as
are contained in the contract or other agreement between it and the Board of
Trustees.
L. To delegate to any consultant, administrator, insurance company or
institution, individual or entity, the performance of any of the duties of the
trustees. Any entity to which any duties of the trustees are delegated shall have
the status of fiduciary in the performance of such duties.
M. To sue or be sued on behalf of the ABAG Benefits Trust and to be the
only necessary party plaintiff or defendant in any such action.
N. To establish and maintain an office for the ABAG Benefits Trust.
O. To purchase on behalf of the ABAG Benefits Trust, errors and
omissions policies, or any other type of insurance or reinsurance policies, to
protect the funds of the ABAG Benefits Trust and the trustees in the performance
of their duties. No bond or other security shall be required of the Trustees.
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P. To delegate administrative functions to an administrator who maybe
an independent contractor with his/her own office and staff, or alternatively, the
trustees may engage the services of an administrator and delegate any of the
following functions they may deem proper:
1. Establish and maintain an office;
2. Establish written procedures concerning collection of assets or income
and payment of debts or expenses in connection with trust administration; and
3. Set forth and interpret the rules and regulations for the administration
of the insurance program and the benefits provided under it, including:
a.questions relating to the eligibility of employees to become
participants;
b. the amount and kind of payments to be made to persons entitled to
benefits;
c. the rights of participants and beneficiaries; and
d. similar or related questions.
Q. The administrator shall be a fiduciary and maybe an employee of
another trust or entity, an employee of ABAG, a trustee, or an independent
contractor. The duties of the administrator shall be specified in a written contract
with the ABAG Benefits Trust.
R. To adopt a budget and expense funds within the limits of budgeted
income.
S. To obtain and hold copyrights and patents.
T. To borrow money to carry out the purposes of the ABAG Benefits
Trust and to pledge, assign or hypothecate any of the trust assets to secure such
loan.
U. To accept, compromise, arbitrate or otherwise settle any obligation,
liability or claim involving the ABAG Benefits Trust, including, but not by way of
limitation, any claim for contributions or other sums payable hereto; and to
enforce or contest any other obligation, liability or claim by appropriate legal
proceedings if, in its sole discretion, it is in the interest of the ABAG Benefits
Trust to do so; and to assign any such claim and allow the assignee to institute
legal or arbitration proceedings in its own name to enforce collection.
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V. To require any interested party to furnish any reasonable information,
data, and documents pertinent in administering the ABAG Benefits Trust and
verifying the accuracy of contributions.
W. To publish, file and distribute any reports required by law.
X. To construe any of the terms or provisions of the ABAG Benefits Trust
or Benefit Plan, and any such construction shall be binding on all interested parties.
Y. To determine all questions relating to eligibility for benefits, payment
of benefits and similar questions, and its decisions on such questions shall be
binding on all interested parties, except as may be otherwise specifically provided
herein or in regulations duly adopted by the Board of Trustees.
Section 5. Deadlocks
A deadlock shall be deemed to have occurred with respect to any matter
voted upon by the Board of Trustees which results in a tie vote.
In the event of a deadlock, the matter shall be submitted to an Adjustment
Board upon the request of any trustee. The Adjustment Board shall be composed of
one member selected by management, one member selected by labor and one
member selected by ABAG. The decision of the Adjustment Board shall be final
and binding upon the Trustees, parties and beneficiaries of the ABAG Benefits
Trust.
In the event the Adjustment Board refuses, fails or is incapable of resolving
the matter, the matter shall be submitted to arbitration. The Board of Trustees
shall agree upon a person to serve as arbitrator. The arbitrator shall determine
procedures to be followed.
All costs incurred by the Board of Trustees, including attorney's fees, in
conjunction with the dispute shall be paid by the ABAG Benefits Trust.
The decision of the arbitrator shall be final and binding upon the Trustees,
parties and beneficiaries of the ABAG Benefits Trust.
Section 6. Limitation on Liability of Trustees
Trusts of this type are somewhat novel, and their management presents
problems concerning which there has been only limited experience. Also,
individuals serving as trustees hereunder are usually obligated to do so by virtue of
their regular employment. For these reasons, the parties desire to limit the
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obligations of the trustees, to limit their potential liability whether for breach of
the ABAG Benefits Trust or other improper or inadequate performance of their
duties, and to hold them harmless against any liabilities hereunder, all to the
fullest extent permitted by law.
Therefore, a trustee's responsibility shall be only to exercise good faith in
the execution of his trust, and a trustee shall not be liable for any action or
omission to act, including a breach of trust, so long as it is not committed in bad
faith, intentionally or with reckless indifference to the participants' interests.
Specifically, but without limiting the generality of the foregoing, no trustee shall
incur any liability:
(a) In acting upon any papers, documents, data or information believed by
him/her to be genuine and accurate and to be made, executed, delivered or
assembled by the proper parties;
(b) For any act concerning which he/she relies upon the opinion of legal
counsel;
(c) For the act of any agent, employee, consultant or attorney selected
with reasonable care;
(d) For any act or omission of another trustee in which he/she does not
join.
Furthermore, the ABAG Benefits Trust shall exonerate, defend, reimburse
and hold harmless the trustees, individually and collectively, against any and all
liabilities and expenses arising out of any act or omission to act in the performance
of their duties and obligations hereunder, except (as to the individual trustee or
trustees directly involved) for liabilities or expenses arising out of acts or
omissions committed in bad faith, intentionally, or with reckless indifference to
the participants' interests.
If any of the foregoing provisions should be held by a court of competent
jurisdiction to go beyond whatever is permissible by law, these provisions shall
nevertheless be given effect insofar as the law permits, it being the intention that
any invalid provisions be severable from the others.
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ARTICLE VII
ADMINISTRATION ACCOUNTING INCOME AND AUDITING OF TRUST FUND
Section 1. Administration
The Association of Bay Area Governments, a Joint Powers Agency pursuant
to Government Code Sections 6500 et seq., is hereby appointed and employed to
administer and execute this agreement for the parties. In carrying out such
administration, ABAG shall receive an administration fee which is limited to and
shall not exceed an amount which reasonably relates its duties as administrator.
Section 2. Administrative Office
The administrative office shall be the ABAG offices at 101 8th Street,
Oakland, CA, unless changed by the Board of Trustees.
Section 3. Disbursal of Funds
Funds of the ABAG Benefits Trust shall be disbursed only upon proper
authorization of the Trust. Such proper authorization shall mean that a motion to
disburse funds was duly passed at a meeting of the Board of Trustees or
membership of the ABAG Benefits Trust, except that the Secretary-Treasurer may
make timely payments as required by a contract lawfully entered into by the ABAG
Benefits Trust.
Section 4. Investment of Funds
Investment of funds of the ABAG Benefits Trust may be made pursuant to
Section 53601 of the California Government Code.
Section 5. Audit of Funds
An audit of the funds of the ABAG Benefits Trust shall be made in
accordance with Section 26909 of the California Government Code. The cost of
such audit shall be a charge upon and paid by the ABAG Benefits Trust.
Section 6. Accounting and Audit Reports
The Secretary-Treasurer shall submit accounting and audit reports to each
member of the ABAG Benefits Trust.
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Section 7. Income of Trust
Each fiscal year the ABAG Benefits Trust shall set, by majority vote, the
annual amount for the carrying out of the purposes of this agreement. The total
and complete liability for the activities of the ABAG Benefits Trust of any trust
member is limited to that member's contribution set forth in this agreement.
Section 8. Cooperation with Board of Trustees
Whenever requested by the Board of Trustees, a trust member will distribute
to all participants currently in its employ such information as the Board of
Trustees deems necessary to carry out its obligations, in the manner specified by
the Board of Trustees.
Section 9. Return of Contributions
Contributions made to the ABAG Benefits Trust as a result of a mistake of
fact may be returned if repayment is made or demanded before the applicable
statute of limitation expires. If a contribution is made on behalf of a person for
whom contributions are not required, the ABAG Benefits Trust's sole obligation
with respect thereto shall be to return the erroneous contribution, subject to the
time limitation set forth herein. The ABAG Benefits Trust shall not be obligated
to provide benefits dependent upon such erroneous contributions, and may recover
from any trust member any losses resulting from benefits paid as a result of the
trust member's error by assigning to it any rights of recovery against the recipient.
Section 10. Payments and Delinquent Charges
The Board of Trustees shall establish procedures for the collection and
receipt of all contributions payable to the ABAG Benefits Trust, including due
dates and delinquency dates.
Section 11. Recordkeeping Requirements
Each trust member shall maintain records relating to employment for which
contributions are payable hereunder sufficient (1) to determine whether it has
satisfied all obligations to the ABAG Benefits Trust and (2) to enable the ABAG
Benefits Trust to comply with all applicable laws. All such records shall be
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available for inspection by the Board of Trustees or its agents during the trust
member's regular business hours.
Section 12. Records and Reports
The Board of Trustees shall keep on file at the principal administrative
office, and in such other places as may be necessary to make available all pertinent
information to persons entitled thereto, a copy of this agreement and the Benefit
Plan(s).
Section 13. Execution of Instruments
Any two (2) Board members may execute any other instruments, contracts
or other documents on behalf of the ABAG Benefits Trust. The authority to
execute documents may be delegated by the Board in the manner provided for
delegation of any of its powers. Any interested party may rely on any documents
so executed as having been duly authorized by the Board of Trustees and executed
in accordance with the terms with the ABAG Benefits Trust.
ARTICLE VIII
OFFICERS
Section 1. Authority
The officers of the ABAG Benefits Trust shall be chair, vice-chair, and
secretary-treasurer, to be elected from the membership of the Board of Trustees.
One of said offices shall always be held by a union representative and one of said
offices shall always be held by a management representative. The Board of
Trustees may provide for such additional officers as it deems appropriate.
Section 2. Election
(a) The officers shall be elected by the Board at the first meeting it holds
after July 1 of each year.
(b) The term of office of each officer shall be for one year, commencing
immediately upon the close of the board meeting at which they are elected and
ending at the close of the meeting at which their successors are elected.
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Section 3. Qualifications for Office
Each of the officers shall be a member of the Board of Trustees. Any
officer who ceases to meet this requirement during the term of office may
continue to hold office for the remainder of the unexpired term with the approval
of the Board of Trustees.
Section 4. Filling of Vacancies
Should the office of chair become vacant, the vice-chair shall assume the
office of chair for the remainder of the unexpired term, as well as serving the term
as vice-chair. In such case, the vice-chair shall not succeed to the office of chair
for the unexpired term, although the vice-chair shall perform all of the duties of
that office for the remainder of the year. The Board of Trustees may, at its
discretion, elect a second vice-chair pro tempore who shall perform the duties of
the vice-chair for the remainder of the year.
Section 5. Duties of Offices
The chair shall preside at all meetings of the membership and of the Board
of Trustees and shall perform any other duties as may be prescribed by the
membership or the Board. The secretary-treasurer shall take minutes of all
meetings of the membership and of the Board and shall invest and disburse funds
pursuant to Board direction. The duties of the vice-chair shall be determined by
the chair or as may be prescribed by the membership or the Board of Trustees.
Section 6. Committees
The Board of Trustees may designate such committees as it deems
necessary. The chair shall appoint individuals to those committees subject to the
approval of the Board of Trustees.
Section 7. Staff
The Board of Trustees shall appoint or contract for such staff as it deems
necessary and shall determine the appropriate salaries and expenses relative
thereto, if any.
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ARTICLE IX
PROCEDURE OF BOARD OF TRUSTEES
Section 1. Regular Meetings
Regular meetings of the Board of Trustees shall be held at a common place
determined by the Board. All trustees shall be notified of the time and place of
the meeting at least ten(10) days prior to the date of the meeting. Such meetings
shall be held not less than one time in each calendar quarter unless otherwise
determined by the Board. Majority vote is required to take action at a regular
meeting.
Section 2. Special Meetings
Special meetings of the Board of Trustees may be called by the chair. The
chair shall call a special meeting if so petitioned by at least three Trustees. Three
kinds of special meetings of the Board may be called by the chair: a) by
conference call. The chair shall notify all members of the Board at least twenty-
four(24) hours prior to a conference call meeting. b) by postcard. The chair shall
call for a vote related to a specific subject matter. The trustees will be given
ten(10) days in which to return the postcard ballot. c) by regular special meeting.
The chair shall all notify all members of the Board of the time, place, and subject
matter of the special meeting at least forty-eight(48) hours prior to the date of the
meeting.
The Board shall have the power to take any action at any special meeting
which it might take at a regular meeting, except that the notice of the special
meeting must specify the matters to be considered at such meeting and only those
matters specified in the notice may be considered or acted upon.
Majority vote of the Board of Trustees will be required to take action at any
special meeting.
Section 3. Expenses
The trustees shall serve without compensation. They shall be reimbursed for
their reasonable expenses properly and actually incurred in attending meetings or
performing duties hereunder from the ABAG Benefits Trust funds. Expense claims
shall be submitted within sixty (60) days from the time of the service in order to be
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considered an outstanding obligation of the ABAG Benefits Trust. Claims
submitted more than sixty (60) days from the time of the service may be
considered an outstanding obligation under special circumstances upon approval by
majority vote of the Board of Trustees. Under no circumstances shall claims
submitted more than one (1) year from the time of the service be honored.
Section 4. Voting/Quorem
Each member of the Board of Trustees shall have one vote on any issue
before any meeting of the Board, if present at the meeting when the vote is taken.
There shall be no proxy voting. To constitute a quoruem, there must be present at
least one-half of the management-elected trustees and at least one-half of the
Union-elected trustees. If less than a quorum is present, a meeting may be
continued but no action may be taken until a quorum is present.
ARTICLE X
GENERAL PROVISIONS
Section 1. Trustees' Authority
No party dealing with the trustees, or any of them, shall be obligated to see
to the application of any monies or property of the ABAG Benefits Trust, or to see
that the terms of this agreement have been complied with, or to inquire as to the
necessity or expediency of any act of the trustees.
Section 2. Instruments Executed by the Trustees
Every instrument executed by the Board of Trustees or by its direction shall
be conclusive in favor of every person who relies on it, that: a) at the time of the
delivery of the instrument, this agreement was in full force and effect; b) the
instrument was executed in accordance with the terms and conditions of this
agreement; and c) the Board was duly authorized to execute the instrument or to
direct its execution.
Section 3. Limitations on Liability of Employers
No employer; ABAG; ABAG member jurisdiction, officer, Board member,
employee, or agent; representative; or union or employee organization shall be
-19-
liable in any respect for any of the obligations or acts of the trustees because such
trustees are in any way associated with same.
Section 4. Designation of Trustees on Legal Documents
The name of the ABAG Benefits Trust may be used to designate the trustees
collectively, and all instruments may be effected by the Board of Trustees in such
name.
Section 5. Applicable Agreements
The rights and duties of all parties, including any employers, employees,
participants, beneficiaries, ABAG, unions, employee organizations and the trustees
shall be governed by the provisions of this agreement and by any insurance policies
or contracts procured or executed pursuant to this agreement.
Section 6. Liability Limited
In the event the trustees select an insurance carrier to provide benefits, no
participant or beneficiary shall have any right or claim of benefits, except under
the policy or policies, or contract or contracts, procured or entered into with the
insurance carrier to provide such benefits, unless expressly stated otherwise. In
the event the insurance carrier has been selected with reasonable care, the
trustees; the representatives; ABAG, its Board members, member jurisdictions,
officers, employees and agents; any union or employee organization, shall not be
liable for the failure or omission by the carrier for any reason to pay any benefits
under the policy, other than the failure of the trustees to pay the required premium
notwithstanding the availability of funds for such purpose.
Section 7. Notice
Any notice required to be given under the terms of this agreement shall be
deemed to have been duly served if delivered personally to the person to be
notified in writing or if mailed in a sealed envelope, postage prepaid, to such
person at his/her last known address as shown on the records of the ABAG Benefits
Trust.
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Section 8. Nonreversion of Trust Funds
Neither all nor any part of the trust funds shall revert to any trust member
or be recovered by any trust member or be used for or diverted to purposes other
than the exclusive benefits of participants and beneficiaries, or for the payment of
the expenses of the ABAG Benefits Trust as herein authorized.
Section 9. Cost and Expenses of Suits
The cost and expense of any suit or proceeding brought against the ABAG
Benefits Trust or against the trustees, or any of them (including reasonable
attorneys' fees), in any manner arising on, of, or under this agreement, shall be paid
from the ABAG Benefits Trust; provided that if in any proceeding brought against a
fiduciary on behalf of the ABAG Benefits Trust to recover from said fiduciary for
damages or loss sustained by the ABAG Benefits Trust on account of alleged breach
of fiduciary duty, judgment shall be against said fiduciary, then the court in which
proceeding is maintained shall include in such judgment as damages recoverable by
the ABAG Benefits Trust, any attorneys' fees, cost of suit, and expenses incurred
and paid out of the ABAG Benefits Trust.
Section 10. Governing Law
All questions pertaining to this agreement and its validity, administration,
and construction shall be determined in accordance with the applicable provisions
of California law.
Section 11. Severability
If any provision of this agreement, the rules or regulations made pursuant
hereto, or any step in the administration of the ABAG Benefits Trust is held to be
illegal or invalid for any reason, such illegality or invalidity shall not affect the
remaining portions of this agreement, or the rules and regulations, unless such
illegality or invalidity prevents accomplishment of the objectives and purposes of
this agreement. In the event of any such holding, the parties will immediately
commence negotiations to remedy any such defect or defects.
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Section 12. Indemnification
The ABAG Benefits Trust shall indemnify, keep and hold harmless ABAG, its
members, directors, officers, employees and agents, a union or employee
organization, and the Trustees and arepresentatives against all suits or claims that
may be based on the nonpayment of benefits or on any injury to persons or property
that may occur or may be alleged to have occurred in the course of performance
under this agreement, whether or not it is claimed that the injury was caused
through a negligent act or omission of the ABAG Benefits Trust; Trustees;
representatives; ABAG, its members, directors, officers, employees or agents; or a
union or employee organization; and the Trust shall, at its own expense defend any
and all such actions and pay all charges of attorneys and all costs and other
expenses arising therefrom or in connection therewith; and if judgment shall be
rendered against the ABAG Benefits Trust; the Trustees; the representatives;
ABAG, its members, officers, directors, employees, or agents; or a union or
employee organization, in any such action the ABAG Benefits Trust shall at its own
expense, satisfy any discharge the same. No indemnification is made under this
section or elsewhere in this agreement for the willful misconduct by the ABAG
Benefits Trust; the Trustees; the representatives; ABAG, its members, officers,
directors, employees or agents; or a union or employee organization.
ARTICLE X
AMENDMENTS AND TERMINATION
Section 1. Amendments
The provisions of this agreement may be modified or amended at any time,
and from time to time, by a two-thirds vote of the membership, provided notice of
the proposed amendments shall be mailed to each member at least ten(10) days
prior to the meeting, or at any membership meeting by unanimous vote of the
membership.
Section 2. Term
This agreement shall commence on the date here and above first written.
The trust established hereunder is irrevocable. However, the majority of the trust
members may terminate this agreement at any time, provided all parties dealing
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with it and all trust members have been notified in writing at least thirty (30) days
in advance.
Section 3. Withdrawal
Any trust member may withdraw from this agreement in writing at any time
effective no earlier than thirty (30) days after such notice has been given to the
Board of Trustees and each current member of the ABAG Benefits Trust. No
return of funds already paid to the ABAG Benefits Trust shall be made by the trust
when a member withdraws.
Section 4. Termination
In the event this trust is terminated by its members as herein allowed, the
trustees, after all debts have been paid and property sold, shall distribute to each
trust member on the effective date of dissolution, the balance of the assets of the
ABAG Benefits Trust on a pro rata basis according to the extent of each member's
contribution of funds hereunder since the creation of the ABAG Benefits Trust.
Section 5. Assignment
No party to this agreement may sublet, assign or transfer any interest in it
without written consent of all of the parties hereto.
IN WITNESS WHEREOF, the parties have caused this agreement to be signed
in their behalf by their duly authorized representatives on the day and year first
above written.
Trustors:
Approved as to Legal Form ASSOCIA N OF BA AR G ENTS
and Content
Gvtiy�G� �� by
�{ Kenneth K. Moy Revan A.F. Tranter, Executive Director
L ABAG Legal Counsel
Approved as to Legal Form UNITED PUBLIC EMPLOYEES LOCAL 790
and Content
by
Union Legal Counsel 121aul Varacalli, Executive Director
-23-
Trustees:
by
by
by
by
by
by
by
by
by
by
by
by
-24-
DEFINITIONS
A. The term "employer" means any ABAG member providing insurance
coverage for its employees either by the purchase of insurance through the
ABAG Benefits Trust or through a separate program with ABAG Benefits
Trust sponsorship.
B. The term "employee" means any person on whose account an employer is
obligated to make contributions to the ABAG Benefits Trust or provide
insurance coverage through an ABAG sponsored program or any person
formerly employed by an employer who is receiving retirement benefits.
C. The term "benefits" means those payments or services to which the
participants and beneficiaries are or may become entitled.
D. The term "participants" means a person who is or may become eligible to
receive the benefits provided.
E. The term "beneficiary" means a participant or person designated by a
participant, or designated by the terms of the trust agreement who is or
may become entitled to a benefit thereunder.
F. The term "fiduciary" means the trustees and all persons appointed by them
or engaged by them who: 1) exercise any discretionary authority or
discretionary control respecting the management or disposition of the trust
funds; 2) render any investment advice for a fee or other compensation; or
3) exercise any discretionary authority or responsibility for administration
of the insurance coverage to be provided as specified in this agreement.
G. The term "trust agreement" means this agreement and any changes,
amendments, or modifications thereto.
H. The term "trust" or "trust fund" shall mean the entire trust estate which is
created, held and established pursuant to the terms of this agreement and
shall include all investments, money or other assets held by the trustees
under this agreement.
I. The term "contributions" shall mean contributions made or to be made to
the trust fund by an employer or member.
J. The term "trustee" or 'Board of Trustees" shall mean each and every person
designated as a trustee in accordance with the terms of this agreement,
which persons shall be appointed to administer the ABAG Benefits Trust.
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K. The term 'Benefit Plan" shall mean each schedule of benefits and eligibility
rules therefor from time to time available through the ABAG Benefits Trust
upon payment of such contributions as the Board of Trustees may specify.
Each such Benefit Plan is incorporated by reference as part of this trust
agreement and made part hereof. .
L. The term "Fiscal Year" shall mean the fiscal year of the ABAG Benefits
Trust, as determined by the Board of Trustees.
M. The term "representative" shall mean each and every person appointed to
represent a trust member in accordance with the terms of this agreement at
the ABAG Benefits Trust meetings and for all Trust-related business.
N. The term "labor" shall refer to a union or employee organization.
ABAG K-2
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ASSOCIATION OF BAY AREA GOVERNMENTS BENEFITS TRUST
TRUSTEE SIGNATURE PAGE
TRUSTEE: by:
Name/Title
EBP EQUITABLE BENEFIT INSURANCE SERVICES, INC.
An Affiliate of Employee Benefit Plans, Inc.—Minneapolis,Minnesota
2855 Mitchell Drive, Suite l50
Walnut Creek, California 94598
Phone(415) 945-0588
July 2, 1985
Mr. Paul S. Rankin
Administrative Assistant
CITY CP DUBLIN
P.O. Box 2340
Dublin, CA 94568
RE: ABAG BENEFITS TRUST - DENTAL COVERAGE
Dear Paul:
The Association of Bay Area Governients (ABAG) Benefits Trust will
provide the attached plan of dental benefits.
The following rates would be effective until July 1, 1986:
Employee $ 14.03
Employee + 1 $ 30.12
Employee + 2 or More $ 41.12
If orthodontia coverage is added the cost would be the same amount as
charged by your current carrier.
If you have any questions, please feel free to call.
Since ly,
J. SCOTT TERPSTRA
Vice President
JST/ts
Enclosure
DESCRIPTION CF COVERAGE
Individual Deductible $25. per calendar year
Family Deductible $75. per calendar year
Preventive Service Paid at 100%*
Basic Services Paid at 80%*
Major Services Paid at 50%*
Maximum $1,000 per calendar year
orthodontia 50%*
Lifetime Maximum $1,000
* The above percentages are paid at the Usual, Customary, and Reasonable
(UCR) level, which is based on the average rates charged by dentists in
the area.
Preventive Services Include:
1) Cleaning and scaling of teeth, but not more often than every
six months.
2) Fluoride application to a child's teeth, once each calendar year.
3) Space maintainers and their fitting.
Basic Services Include:
1) A11 necessary services required for diagnosis, subject to the following:
a. .full mouth X-rays are eligible only once each three years.
b. bitewing X-rays are eligible only once each six months.
c. diagnostic oral examination is eligible only once each six months.
2) Emergency treatment for the relief of dental pain.
3) Extraction of one or more teeth, cutting procedures in the mouth,
treatment of fractures and dislocations of the jaw, but not including
additional charges for the removal of stitches, or post-operative
examination.
4) Treatment of the gums and tissues suporting the teeth.
5) Root canals and other endodontic treatment.
6) General anesthetics when administered in conjunction with covered
oral surgery, periodontics or correction of a fracture of dislocation of
the jaw.
7) Injectable antibiotics administered by a dentist or physician.
Description of Coverage Cont.
Page 2
Major Services Include:
1) Fillings and crowns necessary to restore structure of the teeth broken
down by injury or decay, subject to the following:
a. Charge for a crown or gold filling, will be limited to the charge
for a silver, porcelain, or other filling unless the tooth cannot be
restored with another filling naterial.
b. Replacement of a crown or gold filling is eligible only if the crown
or filling is more than five years old.
2) Full or partial dentures, fixed bridges or addition of teeth thereto, if
required due to a loss of natural teeth while covered by this plan, or
to replace an existing appliance which is more than five years old.
3) Charges for repair or rebasing of dentures, which have not been replaced
by a new denture.
EBP EQUITABLE BENEFIT INSURANCE SERVICES, INC.
An Affiliate of Employee Benefit Plans, Inc.—Minneapolis,Minnesota
2855 Mitchell Drive, Suite 150
Walnut Creek, California 94598
Phone (415) 945-0588
August 13, 1985
MR. PAUL S. RANKIN
Administrative Assistant
CITY OF DUBLIN
P.O. Box 2340
Dublin, CA 94568
RE: ABAG BENEFITS TRUST
Dear Paul:
Enclosed are the following items:
1) Summary of Provisions of ABAG Benefits Trust.
2) Trust document.
3) Application to Join the ABAG Benefits Trust.
If you have any further questions, or if you mould like me to visit with
yourself or all the employees, please let me know.
Sincerely,
J. SCOTT TERPSTRA
Vice President
JST/ts
Enclosure