HomeMy WebLinkAbout05.c. Approve 5% salary adjustment and second amendment to Employment Agreement for General Manager Roger S. Bailey Central Contra Costa Sanitary District , 5 ,c
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: August 18, 2016
Subject: APPROVE SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
FOR GENERAL MANAGER ROGER S. BAILEY, EFFECTIVE
AUGUST 18, 2016
Submitted By: Initiating Dept./Div.:
Ann Sasaki, Operations Department/
General Manager Human Resources
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
Roger S. Baileyl
General Manager
ISSUE: Board approval is required for any salary adjustment that exceeds the
adjustment in the current California Consumer Price Index (CPI)-Urban Wage Earners
and Clerical Workers (currently 3%) 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 a 6.6 percent increase in August 2015.
Effective August 18, 2016, the Board proposes the following amendments to Mr.
Bailey's contract:
• Increase annual salary from $250,000 to $262,500 (equivalent to 5 percent,
which exceeds the 3% California CPI)
• Terminate the car allowance of$500 per month
The car allowance implemented in 2015 was meant to simplify mileage cost
reimbursement for the General Manager. However, Contra Costa County
Employees' Retirement Association (CCCERA) ruled that the $500 per month
was considered pensionable compensation. It was not the Board's intention for
the compensation to be pensionable, so the car allowance will be terminated
effective August 18, 2016 and the General Manager will revert to actual mileage
reimbursement.
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POSITION PAPER
Board Meeting Date: August 18, 2016
Subject-- APPROVE SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
FOR GENERAL MANAGER ROGER S. BAILEY, EFFECTIVE AUGUST 18,
2016
All other provisions of the employment contract remain unchanged.
ALTERNATIVES/CONSIDERATIONS: Deny the salary adjustment and proposed
contract amendment for Mr. Bailey or propose alternative adjustments.
FINANCIAL IMPACTS: Mr. Bailey's annual salary will increase by 5% from $250,000 to
$262,500. In lieu of the $500 per month car allowance, Mr. Bailey will receive actual
mileage reimbursement.
COMMITTEE RECOMMENDATION: This item was not reviewed by a Board
Committee; rather, it was discussed by the Board in closed session.
RECOMMENDED BOARD ACTION: Approve the second amendment to General
Manager Roger Bailey's employment agreement, approving a salary adjustment of 5%
and terminating the car allowance effective August 18, 2016.
Attached Supporting Document.
1. Proposed Second Amendment to Employment Agreement
N:\ADMINSUP\ADMIN\DIST-SEC\Position Papers\2016\PP-Increase for Roger Bailey 8-18-16.doc
ATTACHMENT 1
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
This Second 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 6, Salary.
Effective August 18, 2016,the District shall increase the General Manager's salary by 5%,
for a salary of$262,500 per year,or a total of$21,875 per month. The remaining provisions
of paragraph 6 of the Employment Agreement remain unchanged.
Paragraph 7,Benefits.
Effective August 18,2016,the car allowance of$500 per month is terminated. The General
Manager will receive reimbursement for actual mileage in accordance with District policy
and procedures.
Except as expressly stated in this Second Amendment, all other provisions of the current
Employment Agreement and First Amendment remain in full force and effect. This Second
Amendment represents all of the agreements between the parties related to this Second Amendment,
and this 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 18, 2016:
CENTRAL CONTRA COSTA
SANITARY DISTRICT, a special district
Dated: By:
ROGER S. BAILEY
General Manager
Dated: By•
TAD J. PILECKI
President, Board of Directors