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HomeMy WebLinkAbout10. Approve Third Amendment to teh General Manager's 2019 Employment Agreement Page 1 of 3 Item 10. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: MAY 5, 2022 SUBJECT: APPROVE A THI RD AMENDMENT TO GENERAL MANAGER ROGER S. BAILEY'S EMPLOYMENT AGREEMENT TO PROVIDE PAYMENT OF ANY ACCUMULATED PAI D TI ME OFF (PTO) THAT EXCEEDS THE CURRENT CAP OF TWICE HIS ANNUAL LIMIT, WHICH IS CURRENTLY480 HOURS, EFFECTIVE MAY5, 2022 SUBMITTED BY: INITIATING DEPARTMENT: TEJI O'MALLEY, HUMAN RESOURCES AND OFFICE OF THE GENERAL MANAGER - ORGANIZATIONAL DEVELOPMENT HUMAN RESOURCES MANAGER Roger S. Bailey General Manager ISSUE Board approval is required to amend the General Manager's employment agreement. BACKGROUND The current employment agreement between the District and General Manager, Roger S. Bailey, is for six years and allows for the Board to consider adjustments to his salary and/or other benefits in such amounts and to such extent as the Board may determine is appropriate. The Board has determined that extended absences by Mr. Bailey are not always feasible due to the operational demands of the District and during the past several years that has been demonstrated as he has consistently not been able to accumulate hours beyond the cap. Since July of 2020, Mr. Bailey had 120 hours that could not be added to his PTO bank due to the cap and his inability to take time off. Since the Board anticipates that this trend will continue for the indeterminate future, the Board has determined that an amendment to his employment contract is warranted. Due to the aforementioned and since this potential compensation is not considered pensionable because Mr. Bailey already exceeds the Internal Revenue Code (I RC) pensionable compensation cap and that this May 5, 2022 Regular Board Meeting Agenda Packet- Page 34 of 261 Page 2 of 3 benefit is afforded to all District employees with the exception of the Secretary of the District, effective May 5, 2022, the District shall provide the General Manager payment of any accumulated PTO that exceeds the current cap of twice his annual limit, which is currently 480 hours. The remaining provisions of the Employment Agreement remain unchanged. This change is incorporated into the attached proposed Third Amendment to the Employment Agreement (Attachment 1). ALTERNATIVES/CONSIDERATIONS Deny this amendment or proposed an alternative change. FINANCIAL IMPACTS The financial impact of this action is difficult to determine as Mr. Bailey will only get any payment once his PTO balance reaches the cap of 480 hours. COMMITTEE RECOMMENDATION This matter was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION Approve the proposed third amendment to General Manager Roger S. Bailey's November 21, 2019 employment agreement, effective May 5, 2022, to provide payment of any accumulated Personal Time Off (PTO)that exceeds the current cap of twice his annual limit, which is currently 480 hours. Strategic Plan Tie-In GOAL THREE: Fiscal Responsibility Strategy 2—Ensure integrity and transparency in financial management ATTACHMENTS: 1. Third Amendment to General Manager Agreement May 5, 2022 Regular Board Meeting Agenda Packet- Page 35 of 261 Page 3 of 3 Attachment 1 THIRD AMENDMENT TO EMPLOYMENT AGREEMENT This Third 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 6 W-Benefits. Effective May 5, 2022, the District shall provide the General Manager payment of any accumulated Paid Time Off(PTO) that exceeds the current cap of twice his annual limit, which is currently 480 hours. The remaining provisions of paragraph 6 of the Employment Agreement remain unchanged. The Board has determined that extended absences by Mr. Bailey are not always feasible due to the operational demands of the District and during the past several years that has been demonstrated as he has consistently not been able to accumulate hours beyond the cap. Since July of 2020, Mr. Bailey had 120 hours that could not be added to his PTO bank due to the cap and his inability to take time off. Since the Board anticipates that this trend will continue for the indeterminate future,the Board has determined that this amendment to his employment contract is warranted. Except as expressly stated in this Third Amendment, all other provisions of the current Employment Agreement 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 May 5, 2022: CENTRAL CONTRA COSTA SANITARY DISTRICT, a special district Dated: By: ROGER S. BAILEY General Manager Dated: By: DAVID R. WILLIAMS President, Board of Directors May 5, 2022 Regular Board Meeting Agenda Packet- Page 36 of 261