HomeMy WebLinkAbout09. Approve a salary increase and contract extension for the General Manager effective September 1, 2022 Page 1 of 3 Item 9. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: SEPTEMBER 1, 2022 SUBJECT: APPROVE PROPOSED SALARY INCREASE OF TEN PERCENT FOR GENERAL MANAGER ROGER S. BAILEY, INCLUDINGA CONTRACT EXTENSION THROUGH NOVEMBER 22, 2028, AS SET FORTH IN THE FOURTH AMENDMENT TO HIS NOVEMBER 21, 2019 EMPLOYMENT AGREEMENT, EFFECTIVE SEPTEMBER 1, 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 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 2021-22. At the end of this thorough process, it is proposed that the following amendments become effective September 1, 2022: • Mr. Bailey's annual salary be increased from $334,235.20 to $367,658.72, which reflects an increase of ten percent. • The duration of his contract be extended by three years to November 22, 2028. September 1, 2022 Regular Board Meeting Agenda Packet- Page 35 of 86 Page 2 of 3 All changes are incorporated in the attached proposed Fourth Amendment to the Employment Agreement. ALTERNATIVES/CONSIDERATIONS Deny the salary adjustment and contract extension or propose alternative changes. FINANCIAL IMPACTS Mr. Bailey's annual salary will increase from $334,235.20 to $367,658.72, resulting in an annual cost of $33,908.16, 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 a proposed ten percent salary increase for General Manager Roger S. Bailey, including a contract extension through November 22, 2028, as set forth in the Fourth Amendment to the November 21, 2019 Employment Agreement, effective September 1, 2022. ATTACHMENTS: 1. Proposed Fourth Amendment September 1, 2022 Regular Board Meeting Agenda Packet- Page 36 of 86 Page 3 of 3 FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT This Fourth 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 provisions of that Agreement: Paragraph 2, Term. The term of this Agreement shall be extended to November 22, 2028. Paragraph 5, Salary. Effective September 1, 2022, the District shall increase the General Manager's salary by 10%, for a salary of $367,658.72 per year, or a total of $30,638.23 per month. The remaining provisions of paragraph 5 of the Employment Agreement remain unchanged. Paragraph 11, Termination. In light of the proposed amendment to the Term under Paragraph 2, the District's existing severance obligation (to pay the General Manager in an amount equal to six (6)months of base monthly salary if terminating without cause and without notice) shall be extended to the last six years of this Agreement. Except as expressly stated in this Fourth Amendment, all other provisions of the current Employment Agreement 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 September 1, 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 September 1, 2022 Regular Board Meeting Agenda Packet- Page 37 of 86