Increases in district provided medical insurance prompted a change in the Paradise Irrigation District’s collection policy.
PID Board of Directors are given $100 per board meeting per month, which isn’t enough to cover insurance premiums. For instance, if a director chose the classic plan for a single employee, the district’s share is $628, while the employee’s share is $152.
A director would still owe $52 after covering the bulk of the payment with board meeting compensation. There are also plans for couples and families with $171 and $420 premiums, respectively.
Board members are also compensated for committee meetings but that compensation cannot exceed $600 per month.
District General Manager George Barber said he doesn’t want district staff to be responsible for chasing down directors who may have missed a payment.
Division 1 Director Ken Hunt said he was concerned about a City of Bell-like situation where directors were perceived to be getting extra money from the district.
Treasure Kevin Phillips pointed out that it looks like the district is footing the bill for unpaid premiums.
“(It looks like) we’re giving you guys a free loan to keep your health insurance going until you can get back on your feet so you can pay your premiums,” he said.
To correct that impression, Hunt suggested that directors pay their extra balance at the beginning of the year. However, Division 3 Director Larry Duncan said he would have a hard time coming up with enough money to cover 12 months worth of payments at the beginning of the year.
He suggested possibly using a direct debit approach that would draw the funds directly from a director’s bank account.
That suggestion hit a snag when Division 2 Director Bill Kellogg said he didn’t like debit cards and wasn’t much interested in giving the district direct access to his account either.
“I’m in business for myself and there’s time where I’m just skidding along trying to cover all my checks,” he said.
Kellogg said he would rather simply pay the bill as if it were any other bill.
“I’m a big guy. I don’t need the assistance of the district to pay my bills,” he said.
Barber said there have been awkward instances in the past where staff had to collect outstanding payments from previous directors.
Division 4 Director Sep Carola said he would like to see a report at the end of the month ensuring all directors have paid their premiums, similar to how monthly checks are presented to the board.
Kellogg, however, maintained he was not going to sign up for direct debit or pay his balance at the beginning of the year. He would simply pay the monthly shortage, he said.
“I will not abide by whatever you pass on this because to me, this is my own personal business,” he said.
Hunt compared the situation to a retiree not paying premiums and wanted to know the procedure.
Phillips said the matter would go to the Association of California Water Agencies for possible cancelation of the insurance.
Hunt noted that the policy isn’t about any current board member, but to protect the district in the future after current board members have left there posts.
Public member Jon Remalia suggested the balance payment be due one month in advance, with non-payments going before the board.
Public member Barry Bunte said the board shouldn’t be paid at all for serving.
“If you stood for election of this job in order to earn health insurance, that’s a fraud on the people,” he said. “You’re volunteers and you shouldn’t get paid for what you are doing.”
He said the district is struggling for dollars and directors giving up their meeting compensation is a show of good faith to the public.
The board voted 4-1 with Kellogg dissenting to have the payments due a month in advance and to have any unpaid balance go before the board.
