HomeMy WebLinkAbout06. Approve a lump-sum payment to the General Manager's 401(a) Deferred Compensation Account Plan Page 1 of 3
Item 6.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: SEPTEMBER 16, 2021
SUBJECT: APPROVE PROPOSED DISTRICT CONTRIBUTION OF $33,423.50
TO GENERAL MANAGER ROGER S. BAILEY'S 401(A) DEFERRED
COMPENSATION PLAN ACCOUNT, WHICH IS EQUIVALENT TO 10
PERCENT OF MR. BAI LEY'S CURRENT SALARY, AS SET FORTH I N
THE SECOND AMENDMENT TO HIS NOVEMBER 21, 2019 EMPLOYMENT
AGREEMENT, EFFECTIVE SEPTEMBER 16, 2021
SUBMITTED BY: INITIATING DEPARTMENT:
TEJI OWALLEY, HUMAN RESOURCES OFFICE OF THE GENERAL MANAGER -
MANAGER HUMAN RESOURCES
Roger S. Bailey
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 2020-21. At the end of this thorough
process, taking into consideration Mr. Bailey's performance and accomplishments, the Board has
determined that it is appropriate to compensate him via a contribution to his 401(a) deferred compensation
plan equivalent to 10 percent of his base salary, equivalent to a lump sum amount of $33,423.50.
All changes are incorporated in the proposed Second Amendment to the Employment Agreement
September 16, 2021 Regular Board Meeting Agenda Packet- Page 41 of 85
Page 2 of 3
provided as Attachment 1.
ALTERNATIVES/CONSIDERATIONS
Deny the lump sum contribution to Mr. Bailey's 401(a) Deferred Compensation Plan account or propose
alternative changes.
FINANCIAL IMPACTS
This action will result in a one time payment in the amount of$33,423.50.
COMMITTEE RECOMMENDATION
This matter was not reviewed by a Board Committee.
RECOMMENDED BOARD ACTION
Approve proposed District contribution of $33,423.50 to General Manager Roger S. Bailey's 401(a)
Deferred Compensation plan account, which is equivalent to 10 percent of Mr. Bailey's current salary, as
set forth in the Second Amendment to the November 21, 2019 Employment Agreement, effective
September 16, 2021.
Strategic Plan re-In
GOAL FOUR: Workforce Development
Strategy 1—Proactively plan for future operational staffing needs
ATTACHMENTS:
1. Proposed Second Amendment
September 16, 2021 Regular Board Meeting Agenda Packet- Page 42 of 85
Page 3 of 3
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
This Second 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 September 16, 2021, the District shall make a one-time contribution of
$33,423.50, on behalf of Mr. Bailey, to the Central Contra Costa Sanitary District
Money Purchase Plan, a qualified plan under Internal Revenue Code Section 401(a),
equivalent to 10% of Mr. Bailey's current gross annual base salary. The remaining
provisions of paragraph 5 of the Employment Agreement remain unchanged.
Except as expressly stated in this Second Amendment, all other provisions of the
current Employment Agreement remain in full force and effect. This Second 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
September 16, 2021:
CENTRAL CONTRA COSTA
SANITARY DISTRICT,a special district
Dated: By:
ROGER S. BAILEY
General Manager
Dated: By:
TAD J. PILECKI
President, Board of Directors
September 16, 2021 Regular Board Meeting Agenda Packet- Page 43 of 85