HomeMy WebLinkAbout03.h. Approve salary adjustment for General Manager and amend Employment ContractCentral Contra Costa Sanitary District 3 ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 5, 2015 subject. APPROVE SALARY ADJUSTMENT AND AMENDMENTS TO EMPLOYMENT AGREEMENT FOR GENERAL MANAGER ROGER S. BAILEY, EFFECTIVE RETROACTIVELY TO AUGUST 19, 2015 Submitted By: Initiating Dept. /Div.: Teji O'Malley, Human Resources Operations Department/ Manager Human Resources REVIEWED AND RECOMMENDED FOR BOARD ACTION. I %.J( • Roger S. Bail General Manager ISSUE: Board approval is required for any salary adjustment that exceeds the adjustment in the California Consumer Price Index (CPI) -Urban Wage Earners and Clerical Workers for any employees that are not represented by a union or recognized employee organization and considered a local agency executive. Board approval is also required to amend the General Manager's Employment Agreement. BACKGROUND: The employment contract between the District and Mr. Bailey states that "The Board annually will consider adjustment of the General Manager's annual salary in such amounts and to such extent as the Board may determine is desirable on the basis of its annual review and evaluation of the General Manager." The Board recently concluded Mr. Bailey's annual review and determined that a salary adjustment and other contract amendments are warranted based upon his performance and in comparison with General Manager salaries and benefits at other agencies. Mr. Bailey's last salary adjustment was 2.4 percent in August 2014. Effective retroactively to August 19, 2015, the Board proposes the following amendments to Mr. Bailey's contract: • Extend the term of the agreement to August 18, 2019 • Increase annual salary from $234,496.08 to $250,000 (equivalent to 6.6 percent, which exceeds the 1.4- percent California CPI) • Increase paid time off from 25 to 30 days per year • Provide a car allowance of $500 per month in lieu of mileage reimbursement All other provisions of the employment contract remain unchanged. ALTERNATIVES /CONSIDERATIONS: Deny the salary adjustment and proposed contract amendments for Mr. Bailey or propose alternative adjustments. N:\ADMINSUP\ADMIN \DIST- SEC \Position Papers\2015 \PP- Increase for Roger Bailey 11- 05- 15.doc Page 1 of 2 POSITION PAPER Board Meeting Date: November 5, 2015 Subject: APPROVE SALARY ADJUSTMENT AND AMENDMENTS TO EMPLOYMENT AGREEMENT FOR GENERAL MANAGER ROGER S. BAILEY, EFFECTIVE RETROACTIVELY TO AUGUST 19, 2015 FINANCIAL IMPACTS: Mr. Bailey's annual salary will increase from $234,496.08 to $250,000. Additionally, he will receive a car allowance of $500 per month in lieu of mileage reimbursement. COMMITTEE RECOMMENDATION: This matter was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION: Approve (1) salary adjustment in excess of the California CPI for General Manager Roger S. Bailey, and (2) amendments.to Mr. Bailey's July 11, 2013 Employment Agreement, effective retroactively to August 19, 2015. Attached Supporting Document: 1. Proposed Amendment to Employment Agreement N:\ADMINSUP\ADMIN \DIST- SEC \Position Papers\2015 \PP- Increase for Roger Bailey 11- 05- 15.doc ATTACHMENT 1 AMENDMENT TO EMPLOYMENT AGREEMENT This Amendment to the current Employment Agreement dated July 11, 2013 between the Central Contra Costa Sanitary District, a special district organized pursuant to the California Sanitary District Act of 1923 ( "District ") and Roger S. Bailey ( "General Manager ") is entered pursuant to paragraph 14 of that Agreement. The General Manager and the District are hereinafter collectively referred to as "the Parties." This Amendment to the Employment Agreement between the Parties contains amendments to the following provisions of that Agreement: Paragraph 2, Term. Under the current Employment Agreement, the General Manager's term ends on August 18, 2016, unless otherwise terminated as provided for in that agreement. By this amendment, that term shall be extended to August 18, 2019, unless otherwise terminated as provided for in that agreement. The remaining provisions of paragraph 2 of the Employment Agreement remain unchanged. Paragraph 6, Salary. Effective retroactively to August 19, 2015, the District shall pay the General Manager a salary of $250,000 per year, or a total of $20,833.33 per month. The remaining provisions of paragraph 6 of the Employment Agreement remain unchanged. Paragraph 7(a), Benefits. Effective retroactively to August 19, 2015, the District agrees to provide paid time off of thirty (30) days per year, accrued month to month over that year. The remaining provisions of paragraph 7(a) of the Employment Agreement remain unchanged. Paragraph 7, Benefits. Effective retroactively to August 19, 2015, in addition to the benefits currently set forth in paragraph 7 of the Employment Agreement, the District agrees to provide a car allowance of $500 per month, which also shall be in lieu of reimbursement for mileage expenses. Except as expressly stated in this Amendment, all other provisions of the current Employment Agreement remain in full force and effect. This Amendment represents all of the agreements between the parties related to this Amendment, and this Amendment may only be modified or amended by an instrument in writing executed by both parties. IN WITNESS THEREOF, the parties have executed this agreement to be effective August 19, 2015: CENTRAL CONTRA COSTA SANITARY DISTRICT, a special district Dated: By: ROGER S. BAILEY General Manager Dated: By: MICHAEL R. McGILL, P.E. President, Board of Directors -2- 11629883.1