HomeMy WebLinkAbout04. Approve salary adjustment for General Manager and 4th Amendment to Employment Agreement Page 1 of 3
Item 4.
CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: AUGUST 16, 2018
SUBJECT: APPROVE SALARY ADJUSTMENT FOR GENERAL MANAGER ROGER S.
BAILEYAND FOURTH AMENDMENT TO THE JULY 11, 2013 EMPLOYMENT
AGREEMENT, EFFECTIVE AUGUST 1, 2018
SUBMITTED BY: INITIATING DEPARTMENT:
TEJI O'MALLEY, HUMAN RESOURCES OPERATIONS - POD - HUMAN RESOURCES
MANAGER
Deputy General Mgr.Ann Sasaki
for General Manager Roger S. Bailey
ISSUE
Board approval is required to amend the General Manager's employment agreement.
BACKGROUND
The employment contract between the District and Mr. 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 is
warranted based upon his performance and after comparison with General Manager salaries and benefits
at other agencies.
Additionally, the contract is being amended to increase the maximum allowable accumulation of Mr. Bailey's
paid time off from fifty(50) days to sixty (60) days, which represents twice his yearly annual accrual of thirty
(30) days.
August 16, 2018 Regular Board Meeting Agenda Packet- Page 51 of 149
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The increase in yearly annual accrual from twenty-five (25)days to thirty(30) days was effective August 19,
2015. However, the maximum accumulation was inadvertently left unchanged. This amendment is being
done in order to maintain the intent in the original employment agreement, which allowed for a maximum
accumulation of twice his annual accrual.
Effective August 1, 2018, the following amendments are proposed to Mr. Bailey's contract:
• Increase the salary by 3.6% from $271,428 to $281,199 annually. This reflects the change in both
Consumer Price Index(CPI)for all Urban Consumers (San Francisco/Oakland/San Jose) and the
CPI for the State of California during the most recently completed February to February time period.
• Increase the maximum allowable accumulation of paid time off from fifty(50)days to sixty(60)days,
which represents twice the yearly annual accrual of thirty(30)days, which became effective August
19, 2015.
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 $271,428 to $281,199, resulting in an annual cost of$11,579,
which includes salary as well as any incremental costs in benefits.
COMMITTEE RECOMMENDATION
This matter was not reviewed by a Board Committee.
RECOMMENDED BOARD ACTION
Approve (1)salary adjustment for General Manager Roger S. Bailey and (2) Fourth Amendment to Mr.
Bailey's July 11, 2013 employment agreement, effective August 1, 2018.
Stratedc Plan Tie-In
GOAL FOUR: Develop and retain a highly trained and innovative workforce
Strategy 1 - Ensure adequate staffing and training to meet current and future operational levels
ATTACHMENTS:
1. Proposed Fourth Amendment to Employment Agreement
August 16, 2018 Regular Board Meeting Agenda Packet- Page 52 of 149
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FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT
This Fourth Amendment to the current Employment Agreement dated July 11, 2013
between the Central Contra Costa Sanitary District ("District"), a special district organized
pursuant to the California Sanitary District Act of 1923, 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:
Parairaph 6, Salary.
Effective August 1,2018,the District shall increase the General Manager's salary by 3.6%,
which is the Consumer Price Index (CPI) for all Urban Consumers (San
Francisco/Oakland/San Jose) change during the most recently completed February to
February time period, for a salary of $281,199 per year, or a total of$23,433 per month.
The remaining provisions of paragraph 6 of the Employment Agreement remain
unchanged.
Paragraph 7(a),Benefits.
Effective August 1 2018, the District shall increase the maximum allowable accumulation
of the General Manager's paid time off from fifty (50) days to sixty (60) days, which
represents twice his yearly annual accrual of thirty (30) days, which became effective
August 19, 2015. The remaining provisions of paragraph 7(a) of the Employment
Agreement remain unchanged.
Except as expressly stated in this Fourth Amendment, all other provisions of the current
Employment Agreement, First Amendment, Second Amendment, and Third Amendment remain
in full force and effect. This Fourth Amendment represents all of the agreements between the
Parties related to this Fourth 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 16, 2018:
CENTRAL CONTRA COSTA
SANITARY DISTRICT, a special district
Dated: By:
ROGER S. BAILEY
General Manager
Dated: By:
JAMES A. NEJEDLY
President, Board of Directors
August 16, 2018 Regular Board Meeting Agenda Packet- Page 53 of 149