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Reso 1544 11/2018RESOLUTION NO. 1544 RESOLUTION OF THE BOARD OF DIRECTORS OF THE VALLECITOS WATER DISTRICT ADOPTING REVISIONS TO THE EMPLOYEE RECOGNITION PROGRAM INCLUDING A GAINSHARING INCENTIVE PLAN AS AN ORGANIZATIONAL ACHIEVEMENT AWARD WHEREAS, the District's Employee Handbook Section VI — Employee Benefits includes an Employee Recognition Program which recognizes employees in a variety of ways for their personal and team contributions in support of the District's Mission and Vision; WHEREAS, the Board of Directors wishes to recognize outstanding group performance in the pursuit of loss control and prevention; and, WHEREAS, the Board of Directors intends to revise the Employee Recognition Program recognizing such group performance demonstrated by employees of the District; and, WHEREAS, it is in the best interests of the District to adopt Organizational Achievement Awards; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Vallecitos Water District as follows: EMPLOYEE RECOGNITION PROGRAM. The Board of Directors does hereby approve and adopt the revisions to the Vallecitos Water District Employee Handbook Section VI — Employee Benefits, Employee Recognition Program, attached hereto as Exhibit "A" and incorporated herein by reference. A new gainsharing incentive plan is a type of an Organizational Achievement Award subject to the following conditions: SECTION 1. A gainsharing incentive plan provides monetary awards issued by the Board to all employees for their participation in cost savings measures that resulted in gainsharing funds. SECTION 2. Gainsharing funds are only available if/when the District receives a refund check (i.e. ACWA JPIA) and the funds are designated by the Board for gainsharing. SECTION 3. Designating funds as gainsharing requires Board approval and depends on other factors as determined by the Board, such as the overall financial health of the District. SECTION 4. Gainsharing funds would be divided between the District and employees in an amount determined by the Board with the employees' share paid as lump sum bonuses treated as taxable compensation for federal and state tax purposes, and such bonuses will not be included in "compensation earnable" for CaIPERS purposes. RESOLUTION NO. 1544 Page 2 SECTION 5. Gainsharing dividends would be offset by cost savings measures and paid by refunds received by the District; and, SECTION 6. All current employees would be eligible to receive gainsharing dividends provided they were employed during the period of the recognized cost savings measures. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Vallecitos Water District at a regular meeting held on the 7th day of November, 2018 by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: ELITHARP, EVANS, MARTIN, SANNELLA, HERNANDEZ Glenn Pruim, Secretary Board of Directors Vallecitos Water District James Her andez,,President Board of 'rectors Vallecitos Water District EXHIBIT A-1 S. EMPLOYEE RECOGNITION The District's Employee Recognition Program recognizes employees in a variety of ways for their personal and team contributions in support of the District's Mission and Vision. The program is designed to create a culture of employee recognition; improve the working environment and employee morale; motivate employees to be successful; and acknowledge achievements. The Board hosts an annual Employee Recognition Luncheon to present service awards and give each employee a token of appreciation. The way the Board chooses to recognize employees may change from time to time. Employees who receive certifications and other personal accomplishments (i.e. degrees or completion of certificate programs) may be recognized at a regular Board of Directors' meeting. Other types of awards include: Organizational Achievement Awards for cost savings measures (a Gainsharing Incentive Plan) and when the District receives state or local awards from external organizations; Individual Achievement Awards for significant personal accomplishments; Aqualades certificates for going above and beyond normal duties; Water Winner team celebrations for a group of employees; Ripples spot awards; and Waves peer awards. Refer to the Employee Recognition Program (Supplement 11) for more information. All awards of cash and gift cards are treated as taxable compensation for federal and state tax purposes. These awards do not meet the definition of special compensation and will not be included in compensation earnable for purposes of determining an employee's CaIPERS pension. EXHIBIT A-2 VWD Employee Handbook Supplement #11 Effective November 7, 2018 Vallecitos Water District EMPLOYEE RECOGNITION PROGRAM INTRODUCTION The District's Employee Recognition Program recognizes employees in a variety of ways for their personal and team contributions in the promotion of efficiency, initiative, and morale in support of the District's Mission and Vision. The program is designed to create a culture of employee recognition; improve the working environment and employee morale; motivate employees to be successful; and acknowledge achievements. This program is separate from other District policies including merit increases and reimbursement for certification renewals and exams. POLICY The Board of Directors hosts an annual Employee Recognition Luncheon to present service awards and give each employee a gift as a token of appreciation. The way the Board chooses to recognize employees may change from time to time. Employees who receive certifications and other individual achievements may be recognized at a regular Board meeting. Other forms of recognition are at the discretion of the District. The total cost of awards per year will not exceed $8,000 (excluding service awards). All employees are eligible to receive recognition awards unless otherwise indicated. An employee, supervisor, or manager cannot nominate a spouse, domestic partner, significant other, or family member who are also employed by the District. Lump sum bonuses and gift cards are taxed and treated as taxable compensation as required by IRS regulations. All other awards provided for herein are considered de minimis fringe and may be excluded from income. None of the awards set forth herein are considered special compensation items and may not be included in compensation earnable for purposes of determining an employee's CaIPERS pension benefits. Service Awards — certificates presented by the Board with gift cards in $25 increments for every 5 years of service. Individual Achievement Awards — lump sum bonuses of $100-$500 awarded by the General Manager (GM) for significant personal accomplishments including obtaining new job-related certifications, degrees or professional licenses, and state or local awards from external organizations (ex. employee or supervisor of the year). An employee may receive one individual achievement award per year. The GM has the sole discretion to determine if award criteria is met and the amount of the bonus up to the $500 maximum. Organizational Achievement Awards — lump sum monetary awards awarded by the Board with gainsharing funds (refer to District Resolution for more information), or when the District, specific department or function, receives state or local awards from external organizations (i.e. CSDA, CWEA, or CASA). EXHIBIT A-2 Employee Recognition Program Page2of2 Water Winners — a group of employees, usually in different departments, nominated by a supervisor or manager for working together to complete a special project (i.e. Water Academy) or other accomplishments. With GM approval, Human Resources will assist with the planning of a breakfast or lunch event and provide food from select local restaurants for an onsite team celebration. Aqualades — certificates from department managers when the public or other employees provide feedback on employees going 'above and beyond' normal job duties. The winner of a quarterly raffle receives a $50 gift card. Ripples — spot awards or small tokens of appreciation from supervisors or managers to employees such as gift cards, drink/food items, or other nominal gifts up to $10 per employee not to exceed $50 per month awarded by each supervisor or manager. Reimbursement for the cost of spot awards may be made through petty cash with appropriate approvals. Supervisors and managers must be aware of the appearance of favoritism and should distribute awards fairly amongst staff as warranted by performance. Waves — peer awards are compliments and thank you's from one employee to another, submitted in writing with supervisor verification. The winner of a quarterly raffle receives a $25 gift card. PROCEDURES Written nominations may be submitted via email to the employee's supervisor and/or Human Resources. Lump sum bonuses will be processed through standard payroll procedures. All gift card awards must be reported to payroll by supervisors or managers.