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Home My WebLink About10. Approve salary adjustment and other amendments to employment agreement for General Manager Page 1 of 3 Item 10. CENTRAL SAN BOARD OF DIRECTORS ' POSITION PAPER MEETING DATE: SEPTEMBER 7, 2017 SUBJECT: APPROVE 3.4 PERCENT SALARY ADJUSTMENT (FROM $262,500 TO $271,428 PER YEAR)AND OTHER AMENDMENTS TO EMPLOYMENT AGREEMENT FOR GENERAL MANAGER ROGER S. BAILEY, EFFECTIVE RETROACTIVELY TO AUGUST 18, 2017 SUBMITTED BY: INITIATING DEPARTMENT: TEJI O'MALLEY HUMAN RESOURCES OPERATIONS - POD - HUMAN RESOURCES MANAGER Roger S. Bailey General Manager ISSUE Board approval is required for any salary adjustment that exceeds the adjustment in the California Consumer Price I ndex (CP I)-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. Attached is the proposed 3rd Amendment to the original Employment Agreement. BACKGROUND The employment contract between the District and Roger S. Bailey states, "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. September 7, 2017 Regular Board Meeting Agenda Packet- Page 130 of 294 Page 2 of 3 Effective retroactively from August 18, 2017, the Board proposes the following amendments to Mr. Bailey's contract: • Increase annual salary from $262,499.95 to $271,428 (equivalent to 3.4 percent, which exceeds the 2.8-percent California CPI, is consistent with the 3.4 percent Bay Area CPI, and is less than the 4.4 percent District-wide wage adjustment). • Increase paid time off from 30 to 35 days per year and increase paid time off accumulation cap to twice his annual accrual for a maximum of 70 days. All other provisions of the employment contract would remain unchanged. ALTERNATIVES/CONSIDERATIONS Deny the salary adjustment and proposed contract amendments for Mr. Bailey or propose alternative adjustments. FINANCIAL IMPACTS Mr. Bailey's annual salary will increase from $262,499.95 to $271,428, resulting in an annual cost of $8,928.05. 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 Roger S. Bailey's July 11, 2013 Employment Agreement, effective retroactively from August 18, 2017. ATTACHMENTS: 1. Third Amendment to General Manager Bailey Employment Agreement September 7, 2017 Regular Board Meeting Agenda Packet- Page 131 of 294 Page 3 of 3 THIRD AMENDMENT TO EMPLOYMENT AGREEMENT This Third 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, 2017, the District shall increase the General Manager's salary by 3.4%, which is the Consumer Price Index (CPI) for all Urban Consumers (San Francisco/Oakland/San Jose) during the most recently completed February to February time period, for a salary of $271,428 per year, or a total of $22,619 per month. The remaining provisions of paragraph 6 of the Employment Agreement remain unchanged. Paragraph 7(a),Benefits. Effective August 18,2017,the District agrees to provide paid time off(PTO)of thirty-five (35)days per year, accrued month to month over that year with an annual accrual limit of seventy(70) days. Except as expressly stated in this Third Amendment, all other provisions of the current Employment Agreement, First Amendment, and Second Amendment remain in full force and effect. This Third Amendment represents all of the agreements between the parties related to this Third 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, 2017: CENTRAL CONTRA COSTA SANITARY DISTRICT, a special district Dated: By: - ROGER S. BAILEY General Manager Dated: By: - PAUL H. CAUSEY President,Board of Directors September 7, 2017 Regular Board Meeting Agenda Packet- Page 132 of 294