Reso 1303-04/2008RESOLUTION NO. 1303
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLECITOS WATER DISTRICT APPROVING THE
POLICY FOR CELLULAR TELEPHONE ALLOWANCE
WHEREAS, the Board of Directors wish to establish a policy and procedure for
the assignment of and allowance for cellular telephones ("cell phones") that replaces the
current practice of providing employees with District owned cell phones.
WHEREAS, the District has identified a business need for eligible employees to
use a cell phone for certain business communications. To meet this business need, the
District will provide a cell phone allowance to eligible employees, and assign District-
owned phones to District inspectors and duty personnel.
WHEREAS, the Policy for Cellular Telephone Allowance is as follows:
~T -District-Owned Cell Phones
The District will provide District-owned cell phones to District inspectors and duty
personnel. Inspectors will use District cell phones assigned to them during the course
of the business day, and leave the cell phones on District premises before leaving work.
Duty personnel will take possession of the District-owned cell phone during the span of
assigned duty only. Otherwise, the District-owned duty phone will be maintained on
District premises. The District will also make available to HazMat and Emergency
personnel "On-Demand" phones that will be maintained on District premises. On-
Demand phones have no monthly access charge associated with them, but incur per-
minute charges when used. The District is responsible for procuring District-owned cell
phones, maintaining and paying monthly access charges.
§2 -Eli iq_bility for Allowance
Management staff are automatically eligible for an allowance under this policy. All other
employees will be eligible on a case-by-case determination by the manager of the
employee's department depending on the nature of work the employee performs, and
the need to maintain contact with the employee during work hours and non-work hours
is best accomplished by using a cell phone. Eligibility is not based on job title.
Employees meeting the following criteria will generally be considered eligible:
• Facilities and critical systems employees subject to after hours call out;
• Emergency responders (Incident Command System command staff and general
staff, primary and first alternates only);
• Employees who spend a considerable amount of time out of the office on District
business;
This Cellular Telephone Allowance Policy is not intended to apply to PC wireless
broadband cards (air cards). The District will continue to be responsible for both the
initial and recurring costs associated with air cards for those employees requiring
remote connectivity from a laptop to the Internet. Air cards, like laptops and PCs, are
Resolution No. 1303 Page 2
considered to be District property. As such, all payments for the initial purchase and the
monthly service will be made by the District directly to the vendor. Eligibility for an air
card is determined by the manager of the department.
This policy is intended to accommodate changes and advances in wireless handheld
communication technology, and to limit the number of eligible employees to those
where a business necessity exists.
$3 -Standard Equipment and Service Plans:
The Information Technology Department is responsible for establishing standards for
cell phones that need to communicate with the District's email system. Eligible
employees are responsible for selecting their own service provider and paying all
service charges. Verizon is the service currently utilized by the District.
The allowance is established with consideration to bath the cost of monthly service
plans as well as the amortized cost of standard equipment. The monthly allowance for
cell phones is $45. In exceptional cases, as determined by the manager of a
department, or in the case of a manager, that manager's supervisor, an employee may
be eligible for reimbursement for additional costs responsibly incurred as a result of
infrequent, unanticipated spikes in business use. Reimbursement for these additional
costs will be based on substantiating documentation provided by the employee. The
request must be made in writing to the manager of the department and contain sufficient
substantiation to justify an exception to the policy. The decision of the department
manager will be final.
The allowance will be provided to employees through the payroll system, coinciding with
the first pay period of the month following the month of use.
~4 -Usage and Responsibility
Eligible employees are responsible for purchasing their own cell phone, establishing a
service plan, and paying the monthly statement for their service plan. When an
employee is first determined to be eligible, the employee may receive a one time
reimbursement of the cost of the cell phone, not to exceed $50, upon submission of a
receipt for the purchase. Additional accessories not part of the phone purchase, such as
Bluetooth, are not reimbursable even if the total amount is within the one-time
reimbursement limit.
Employees must retain an active cell phone while receiving an allowance. The phone
number must be supplied to Administration within five working days of activation. Since
the employee owns the cell phone, there is no restriction on personal use. The IRS,
however, considers the allowance a taxable benefit to the employee. As such, the
allowance is reportable to the IRS by the District and the employee. The allowance is
not an increase in base pay and will not be included in calculations of salary increases
or retirement benefits.
Lost or stolen cell phones, as well as problems with the service or equipment, should be
reported to the service provider.
Resolution No. 1303 Paae 3
Employees shall not drive a motor vehicle while using a cell phone unless the device is
enabled to allow hands-free listening and talking, and is used in that manner while
driving.
~5 -Responsibility far Contract Cancellation Fees
If the District makes a decision that results in the need to end a cell phone contract, it
will bear the cost of any fees associated with early cancellation. An example of this
would be a supervisor making a change in an employee's duties and the new duties no
longer requiring a cell phone for District business. If the employee decides not to retain
the cell phone contract for personal use, the District would be responsible for any early
cancellation fees on the contract.
If a personal decision by the employee results in the need to end the cell phone
contract, the employee will bear the cost of any fees associated with early cancellation.
For example, if an employee quits and no longer wants to retain the current cell phone
contract far personal use, the employee would be responsible for any early cancellation
fees on the contract.
~6 -Authorization
The department manager must authorize an allowance, obtain approval from the
General Manager, and provide the approved authorization to Payroll and Administration.
PASSED AND ADOPTED by the Board of Directors of the Vallecitos Water District at a
special meeting held on this 30t" day of April, 2008, by the following roll call vote:
AYES: FERGUSON, GENTRY, HANNAN, POLT~, SHELL
NOES:
ABSENT:
ABSTAIN: ~ .
Timothy ~ Shell, President
Board of Directors
ATTEST: Vallecitos Water District