Benefits Resolution Update FEBRUARY 2019
Purpose and Goals of Proposed Resolution Purpose: Non-statutory benefits (those not required by a law) provided to employees must be approved by the Commission Streamline Policies ◦ Ensure correct application ◦ Compliance ◦ Establish appropriate authority Ensure Polices and Practices Align Improve on Processes for Efficiency
3 Main Changes ◦ Integrate Benefit Information Held in Prior Part-Time policy into Benefit Policies ◦ Integrate Professional Certification Pay into Standard Compensation Management ◦ Integrate HRA policy into the Medical Benefits policy
Part-Time Benefits Grant PUD offers Part-Time employment in very limited situations Current Part-Time policy has not been updated since 2004 ◦ Affordable Care Act ◦ Washington State Sick Leave ◦ Paid Family & Medical Leave
Integration of Part-Time Benefits PRIOR PART-TIME POLICY UPDATED BENEFITS POLICIES Separate Policies exist for administering Grant Policy outlines benefits for regular, part -time PUD Discretionary Benefits, including: employees, including: ◦ Paid Holiday and Floating Holidays ◦ Holiday and Floating Holidays ◦ Personal Leave Plan ◦ Personal Leave ◦ Medical Plans, Dental and Vision Insurance ◦ Medical, Dental and Vision ◦ Short-Term Disability and Supplemental Leave ◦ Short-term Disability Bank ◦ Deferred Compensation ◦ Deferred Compensation This policy will be eliminated . These policies are being updated to include Part-Time status
Professional Certification Pay Past Practice: ◦ Recognize employees with additional pay for passing certifications that required intensive study to pass an examination and ongoing education to maintain ◦ CPA, Professional Engineer, Etc. ◦ The HR department was tasked with regular maintenance of this program ◦ Gathering certification renewals
Cert Pay - Proposed Change Supervisor will make adjustments to pay for certifications: ◦ That meet already established standards for certification requirements ◦ Relate to the work that the individual is currently doing ◦ Through already established practices for pay increases ◦ No additional tracking by HR ◦ No longer a separate line item on pay stub, just regular pay rate
HRA Policy Integration ◦ Health Reimbursement Accounts are considered “qualified medical plans” under the Affordable Care Act ◦ Because of this classification, this benefit is better defined under Grant PUD’s policy for Medical, Dental and Vision ◦ Additionally, outdated language for administering the HRA has been removed to align with current practices.
Smaller Changes Personal Leave Policy ◦ Grants authority to CXOs to approve extension of use of PL in a given year ◦ Extends use of PL not used in prior year to be used within first 90 days of the new year (up from 30) Power Production Premium ◦ Update the Hydro Premium Pay Policy title Power Production
Smaller Changes (cont). Retiree Subsidy ◦ Changes reimbursement process to a monthly processing time Other Misc. Changes to Policies ◦ Grammar ◦ Authority Levels ◦ Nomenclature
Recommendation Approve Resolution to: Streamline Policies ◦ Ensure correct application ◦ Compliance ◦ Establish appropriate authority Ensure Polices and Practices Align Improve on Processes for Efficiency
Q4 2018 BUDGET TO ACTUALS February 12, 2019 2/12/2019 1
Grant PUD | BUDGET TO ACTUALS Q4 2018 2018 YEAR-END DIRECTS OVERVIEW % of YEP 2018 Year-End Favorable / 2018 Budget 2018 YTD Annual YEP Variance $ Variance Projection Unfavorable Budget % Direct O&M $ 45,428,210 $ 45,653,586 100% $ 45,653,586 $ 225,376 0% Unfavorable Direct Labor $ 68,628,539 $ 69,317,162 101% $ 69,317,162 $ 688,623 1% Unfavorable Direct Capital $ 109,482,965 $ 99,573,736 91% $ 99,573,736 $ (9,909,229) -9% Favorable 2018 Directs Total $ 223,539,714 $ 214,544,483 96% $ 214,544,483 $ (8,995,231) -4% Favorable At Year End O&M and Labor both slightly exceeded the budget target. At the end of 2018 Q3 O&M was running at 64% of total 2018 budget and Labor was at 72% of total 2018 budget. During Q4, the spending, as well as year end accrual adjustments, moved Direct O&M and Labor to 100% and 101%, respectively. Capital was at 61% of total 2018 budget spending as of 2018 Q3. By year end, that figure increased to 91%. Net direct charges (O&M, Labor, Capital) came in less than the 2018 budget by $9M, which was due entirely to lower than planned Capital spending. 2/12/2019 2
Grant PUD | BUDGET TO ACTUALS Q4 2018 2018 YEAR-END DIRECT O&M BY FUNCTIONAL AREA Direct O&M by Group 2018 Direct O&M YTD % of YEP 2018 Year End YEP Variance Favorable / Department Functional Area 2018 Budget 2018 YTD Annual Variance Projection $ Unfavorable Budget % AA0000 Board of Commission $ 60,000 $ 46,092 77% $ 46,092 $ (13,908) -23% Favorable BA0000 General Manager $ 722,046 $ 708,575 98% $ 708,575 $ (13,471) -2% Favorable CA0000 Attorney $ 536,790 $ 884,133 165% $ 884,133 $ 347,343 65% Unfavorable DA0000 Chief Customer Officer $ 5,122,701 $ 4,370,521 85% $ 4,370,521 $ (752,180) -15% Favorable EA0000 Chief Operating Officer $ 27,192,148 $ 28,356,815 104% $ 28,356,815 $ 1,164,667 4% Unfavorable FA0000 Chief Financial Officer $ 11,794,525 $ 11,237,203 95% $ 11,237,203 $ (557,322) -5% Favorable GA0000 Merchant Wholesale Telecom $ - $ 50,247 UNB $ 50,247 $ 50,247 N/A Unfavorable $ 45,428,210 $ 45,653,586 100% $ 45,653,586 $ 225,376 0% Unfavorable At Year End total Direct O&M spending for 2018 is 0.5% over the total 2018 budget of $45.4M. In the Q3 report, total Direct O&M spending was at 64% of the total 2018 budget. The two areas that exceeded their Direct O&M budget were the Attorney with the highest percentage variance and the Chief Operating Officer with the largest dollar variance. 2/12/2019 3
Grant PUD | BUDGET TO ACTUALS Q4 2018 2018 YEAR-END LABOR BY FUNCTIONAL AREA 2018 Full Time Regular 2018 Full Time Equivalent 2018 Overtime 2018 FTR 2018 FTR YTD 2018 FTE 2018 FTE YTD % of 2018 OT 2018 OT YEP YTD % of Functional Area Budget YTD Variance Budget YEP Annual Budget Annual Board of Commission - - - - - N/A $ - $ - N/A General Manager 4 4 - - 1.55 UNB $ - $ - N/A Attorney 2 2 - - - N/A $ - $ - N/A Chief Customer Officer 58 56 (2) 7.41 8.95 121% $ 91,476 $ 202,874 222% Chief Operating Officer 437 422 (15) 40.00 47.36 118% $ 3,978,319 $ 5,143,284 129% Chief Financial Officer 118 108 (10) 7.60 7.49 99% $ 312,523 $ 390,474 125% Merchant Wholesale Telecom - - - N/A $ - $ - N/A 619 592 (27) 55.01 65.35 119% $ 4,382,318 $ 5,736,632 131% Note: FTR and FTE figures as of 11/13/2018 Year End, as of latest available on Nov. 13, 2018, count of 592 FTR is below the budgeted figure of 619. At the Q3 review, the expectation was for a total FTR count of 610 by year end. From the Q3 data to Q4 data, the FTR count had dropped by 5. FTE is a cumulative figure and reflects seasonal recreation and other maintenance. At Year End the FTE utilization was 19% over the 2018 budget and is likely due to partially cover insufficient FTR. Overtime finished 2018 at 31% or $1.35M over budget. Overtime is both event- dependent and used to partially cover insufficient FTR. 2/12/2019 4
Grant PUD | BUDGET TO ACTUALS Q4 2018 2018 YEAR–END DIRECT LABOR BY FUNCTIONAL AREA Direct Labor by Group 2018 Direct Labor YTD % of 2018 Labor 2018 Labor YEP Variance YEP Favorable / Functional Area Annual 2018 Labor YEP Budget YTD Q4 $ Variance % Unfavorable Budget Department AA0000 Board of Commission $ 194,787 $ 192,174 99% $ 192,174 $ (2,613) -1% Favorable BA0000 General Manager $ 660,087 $ 737,872 112% $ 737,872 $ 77,785 12% Unfavorable CA0000 Attorney $ 335,304 $ 372,677 111% $ 372,677 $ 37,373 11% Unfavorable DA0000 Chief Customer Officer $ 6,656,050 $ 5,729,050 86% $ 5,729,050 $ (927,000) -14% Favorable EA0000 Chief Operating Officer $ 49,153,583 $ 51,117,369 104% $ 51,117,369 $ 1,963,786 4% Unfavorable FA0000 Chief Financial Officer $ 11,628,728 $ 10,917,700 94% $ 10,917,700 $ (711,029) -6% Favorable GA0000 Merchant Wholesale Telecom $ - $ 250,321 N/A $ 250,321 $ 250,321 N/A Unfavorable $ 68,628,539 $ 69,317,162 101% $ 69,317,162 $ 688,623 1% Unfavorable At Year End total Direct Labor spending for 2018 is 1% over the total 2018 budget of $68.6M. In the Q3 report, total Direct Labor spending was at 72% of the total 2018 budget. The two areas that exceeded their Direct Labor budget were the General Manager with the highest percentage variance and the Chief Operating Officer with the largest dollar variance. 2/12/2019 5
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