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HomeMy WebLinkAbout13. Approve salary adjustment and one-time lump-sum payment to General Manager Page 1 of 3 Item 13. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: AUGUST 20, 2020 SUBJECT: APPROVE PROPOSED 2.9 PERCENT SALARY INCREASE FOR GENERAL MANAGER ROGER S. BAILEYAS SET FORTH IN THE FIRST AMENDMENT TO HIS NOVEMBER 21, 2019 EMPLOYMENT AGREEMENT, EFFECTIVE AUGUST 20, 2020, AND AONE-TIME LUMP-SUM PAYMENT OF $12,493 (EQUIVALENT TO 80 HOURS OF UNACCRUABLE PAID TIME OFF) SUBMITTED BY: INITIATING DEPARTMENT: TEJI O'MALLEY, HUMAN RESOURCES OPERATIONS - POD - HUMAN RESOURCES MANAGER REVIEWED BY: ANN SASAKI, DEPUTY GENERAL MANAGER ISSUE Board approval is required to amend the General Manager's employment agreement. BACKGROUND The current employment contract between the District and General Manager, Roger S. Bailey, is for six years and allows for the Board to consider adjustments to his salary or other benefits in such amounts and to such extent as the Board may determine is appropriate. During the course of each fiscal year, the Board coordinates with the General Manager and sets a list of goals for him to execute. As part of his annual performance review, the Board assesses these goals and their associated initiatives to determine their status and success. The Board has concluded that the General Manager exceeded the expectations set for him for FY 2019-20. At the end of this thorough process, taking into consideration Mr. Bailey's exceptional performance and accomplishments, the Board has determined that it is appropriate to adjust his salary. Additionally, the Board has determined to offer Mr. Bailey a one-time lump sum payment equivalent to eighty (80) hours. This one-time payment is to compensate him for the fact that any extended absences away from the District during this time would be difficult to accomplish due to the COVI D-19 pandemic, the recent turnover in the organization due to the retirement of the Deputy General Manager, and the future hiring of a new Director of Operations. As Mr. Bailey does not accrue any Paid Time off (PTO) hours beyond twice his annual limit, this payment is to compensate him for hours he is unable to take as vacation from the District and is unable to accrue for future use. Mr. Bailey has not been able to accrue approximately 160 hours since August of 2019. For the aforementioned reasons, including the COVI D-19 August 20, 2020 Regular Board Meeting Agenda Packet- Page 88 of 200 Page 2 of 3 pandemic, the Board anticipates that this trend will continue for the indeterminate future. It is proposed that, effective August 20, 2020, Mr. Bailey's annual salary be increased from $324,816 to $334,235, which reflects an increase of 2.9% percent. This salary adjustment mirrors the cost of living adjustment (COLA) increase that was given to all represented and unrepresented District employees in 2020. The one-time lump sum payment of 80 hours is equivalent to $12,493. All changes are incorporated in the attached proposed First Amendment to the Employment Agreement (Attachment 1). ALTERNATIVES/CONSIDERATIONS Deny the salary adjustment and/or the one-time lump sum payment for Mr. Bailey or propose alternative changes. FINANCIAL IMPACTS Mr. Bailey's annual salary will increase from $324,816 to $334,235, resulting in an annual cost of$9,555, which includes salary as well as any incremental costs in benefits. The one-time lump sum payment is $12,493. COMMITTEE RECOMMENDATION This matter was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION Approve proposed 2.9 percent salary increase for General Manager Roger S. Bailey as set forth in the First Amendment to his November 21, 2019 Employment Agreement, effective August 20, 2020, and a one-time lump-sum payment of$12,493. Strategic Plan Tie-In GOAL FOUR: Workforce Development Strategy 1—Proactively plan for future operational staffing needs ATTACHMENTS: 1. Proposed FirstAmendment August 20, 2020 Regular Board Meeting Agenda Packet- Page 89 of 200 Page 3 of 3 FIRST AMENDMENT TO EMPLOYMENT AGREEMENT This First Amendment to the current Employment Agreement dated November 21, 2019 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 12 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 an amendment to the following provision of that Agreement: Paragraph 5, Salary. Effective August 20, 2020, the District shall increase the General Manager's salary by 2.9%, 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 $334,235 per year, or a total of$27,852 per month. The remaining provisions of paragraph 5 of the Employment Agreement remain unchanged. Additionally, the Board has determined to offer Mr. Bailey a one-time lump sum payment equivalent to eighty (80) hours. This one-time payment is to compensate him for the fact that any extended absences away from the District during this time would be difficult to accomplish due to the COVID-19 pandemic, the recent turnover in the organization due to the retirement of the Deputy General Manager, and the future hiring of a new Director of Operations. As Mr. Bailey does not accrue any Paid Time off(PTO) hours beyond twice his annual limit, this payment is to compensate him for hours he is unable to take as vacation from the District and is unable to accrue for future use. Mr. Bailey has not been able to accrue approximately 160 hours since August of 2019. For the aforementioned reasons, including the COVID-19 pandemic, the Board anticipates that this trend will continue for the indeterminate future. Except as expressly stated in this First Amendment, all other provisions of the current Employment Agreement remain in full force and effect. This First Amendment represents all of the agreements between the Parties related to this First 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 20, 2020: CENTRAL CONTRA COSTA SANITARY DISTRICT, a special district Dated: By: ROGER S. BAILEY General Manager Dated: By: MICHAEL R. MCGILL President, Board of Directors August 20, 2020 Regular Board Meeting Agenda Packet- Page 90 of 200