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m m ofc absence shall be deducted from the salary accrued at the beginning of the leave of absence, or if the amount of the accrued salary is not sufficient to cover the entire amount of the premium, the balance shall be paid in cash by the employee prior to start of the leave. N o recommendation has been made with respect to continuation of health insurance coverage and payment of premiums during absences due to sickness or accident. There would not appear to be much question about continuing the insurance and paying the premiums during the time the employee is On sick leave with pa y. However, there may be cases where an employee remains incapacitated after accumulated sick leave has been exhausted. There are three different situations which might be considered: 1. Illness continuing after exhaustion of accumulated sick leave. 2 . Effects of industrial accident continuing after exhaustion of accumulated sick leave before compensation starts under industrial accident insurance. 3 . Same as 2 except compensation being paid. Decisions are desirable relative to whether the health coverage is to be continued as long as permitted, and who w ill pay the premiums for coverage of the employee and for dependents. LEAVES FOR M ILITA R Y SERVICE It is understood that there are certain obligations established by law in the case of military service under the Selective Service A c t, so that special rules may be necessary in connection with leaves of absence for this purpose. It is suggested that counsel be requested to advise in this regard. E X C EP TIO N S It is recommended that the rules relative to pay during absences not be considered to apply to those employees who do not receive overtime pay, namely: Assistant to the Manager, Secretary to the Manager, Superintendent, and Engineer. The Chief Accountant is under annual contract. /s/ W . C . RENSHAW President Luce appointed Directors Espinoza, Werner and Pico as a committee to study the matter and make recommendations to the Board. Attorney McNdmee noted that there were a few items in the memorandum that might involve legal questions and <£ked that he be allowed to meet with the committee. Director Gedance noted that there were also some questions as regards group insurance which he felt he could help the committee w ith. President Luce then appointed Director Gedance and Attorney MeNamee as members of the committee. Director Espinoza suggested that it might be well to have some of the employees meet with the committee to discuss the working conditions. It was agreed that it would be a good idea after the committee had familiarized itself with the matter. President Luce suggested that the committee might be able to obtain rules and regulations concerning working conditions from other local utilities which could be studied and compared. The committee agreed to do this and to report back to the Board with its recommendations at the next meeting.