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Home My WebLink About16 GM Employment Agreement Agenda Item # 16 Public �. :. ACTION To: Board of Directors From: Kim Harris Date: June 04, 2014 Subject: Consideration of an Ordinance Extending the General Manager's Employment Agreement 1. WHY THIS MATTER IS BEFORE THE BOARD Only the Board can modify the General Manager's employment agreement. 2. HISTORY The District and the General Manager entered into a employment agreement on December 31, 2007 for a three-year term. In March 2010, the employment agreement was renewed and extended to June 30, 2015. The Section 7 of the agreement, Retirement, was amended and approved by Ordinance on November 15, 2012. The employment agreement states that the Board and General Manager "may mutually agree to extend or renew this Agreement" and that "the Parties shall commence negotiations" in 2014 to determine whether they would like to extend or renew the Agreement. 3. NEW INFORMATION The Board met on December 4, 2013 to review the General Manager's 2013 performance year accomplishments and provide direction as to his 2014 performance year goals. On December 18, 2013, the Board appointed labor negotiators Ron Hemig and Jeff Bender to review the General Manager contract. Two meetings were held with the labor negotiators, Michael Holley and Kim Harris, Human Resources/Risk Manager on January 30 and February 3, 2014. Also, two follow-up sessions were held with the Board on February 5 and March 19, 2014. Based on those discussions, the parties reached a tentative agreement regarding the amendment to the contract. A copy of the proposed Amendment No. 2 is included as Attachment 1. Changes to the General Manager's compensation must be done through an ordinance. A draft ordinance is included as Attachment 2. The proposed changes to the General Manager's employment contract include: • Term: Extend the term of the contract to July 31, 2020 • Base Salary will increase 8.5% on July 1, 2015 • Upon the contract's signed execution, the General Manager's vacation accrual will increase to 25 days per year • Amend the existing contract language in section 7D to reflect that the 5% extra duties lump sum payment to the General Manager during July is considered Management Incentive Pay as it relates to the CalPERS compensation definition • Contract language will be updated to reflect changes in State law arising from the City of Bell employment issues; and • All other contract requirements shall stay in effect 4. FISCAL IMPACT The cost of the 8.5% salary increase is $18,341. 5. RECOMMENDATION Approve an Ordinance 2014-04 extending the General Manager's Employment Agreement. Kim Harris Michael D. Holley Human Resource Manager General Manager Attachment 1 I AMENDMENT No. 2 To TRUCKEE DONNER PUBLIC UTILITY DISTRICT EMPLOYMENT AGREEMENT GENERAL MANAGER This Amendment No. 2 to the Truckee Donner Public Utility District Employment Agreement General Manager is made and entered into this day of May, 2014, by and between the Truckee Donner Public Utility District, (hereinafter called "Employer" or "District") and Michael D. Holley, (hereinafter called"Employee" or"Holley") as follows: WHEREAS,the Employer and Employee desire to amend the Truckee Donner Public Utility District Employment Agreement General Manager entered into between them on March 17, 2010 and amended by Amendment No.1 To Truckee Donner Public Utility District Employment Agreement General Manager on November 15, 2012 ("Agreement"); and - — WHEREAS,-the District's Board of Directors approved the terms and conditions set forth in this Amendment No. 2 through the adoption of Ordinance No. 2014-02 during its regular meeting on June 4, 2014 NOW THEREFORE,the Employer and Employee agree as follows: The Agreement is amended to include the following provisions, which shall supersede any conflicting provisions in the Agreement. 1. The term of this Agreement shall be extended so as to continue through July 31, 2020. 2. On July 1, 2015 the Base Salary shall increase 8.5%. 3. On the date that this Amendment No.2 is fully executed by the Parties,the Employee's vacation accrual shall increase to 25 days per year. For the calendar year 2014, Employee's vacation accrual shall be prorated based an annual accrual of 25 days per year. 4. Section 7.C.of the Agreement, as set forth in Amendment No. 1, is amended in its entirety to state as follows: "C. For and in consideration of Employee's performance of duties as the Employer's Water Utility Manager, in addition to the performance of the other duties described in Section 2, above, Employer shall annually make a lump sum contribution to Employee's Supplemental Income Plan equal to five percent (5%) of Employee's Base Salary. Each annual lump sum contribution shall be made during July,with the first contribution being {00418250.DOCX 211 made in July 2010. Each annual lump sum contribution shall be calculated as five percent(5%) of Employee's Base Salary at the time the contribution is made. The lump sum payment described in this Section shall be considered to be Management Incentive Pay as it relates to CALPERS's definition of compensation. Employer shall continue to make the lump sum contribution described herein for so long as Employee continues to perform the duties of Employer's Water Utility Manager and thereafter until the first to occur of either (1)the expiration of six(6) months after the date that Employer fills the position of Water Utility Manager with a different employee, or(2) the expiration or termination of this Agreement." 5. A new Section 1O.E. is added to the Agreement and states as follows: "E. All payments required under Sections 10. B. and C. are subject to and shall be interpreted to comply with the limitations set forth in Government Code Section 53260. Further, in the event the General Manager is convicted of a crime involving an abuse of office or position, the General Manager shall reimburse the District for any paid leave or cash settlement(including payments made pursuant to Sections 10.8. and C.) as provided by Government Code Sections 53243-53243.4." Except as expressly stated herein, all other terms and conditions of the Agreement shall remain unchanged and in full force and effect. Date Date Employer: Employee: Tony Laliotis Michael D. Holley President of the Board Truckee Donner Public Utility District {00418250.DOCX 212 Attachment 2 TRUCK- ll _ II I� ,D O . Ordinance No. 2014 - 02 EFFECTING THE EMPLOYMENT AGREEMENT FOR THE GENERAL MANAGER WHEREAS, the Board of Directors employs a General Manager to manage the day by day affairs of the District; WHEREAS, the Board of Directors executed an Employ" Ot Agreement with the General Manager that expires on June 30, 2015; WHEREAS, the Board of Directors is satisfied with th;e General Manager's accomplishments and successful performance during the term of the existing"agreement; ti i:r � � WHEREAS, the Board wishes to extend the feyrkn,,, of the"l, General ManagerEmployment Agreement for a period of five years, from July 1, 2015�throuLght'July 31, 2020; THEREFORE, BE IT ENACTED by the Board of Directors District that effective thirty days from the date of passage of this ordinancc,the1fiollowing actions occur: 1. The General Manager's Employment Agreem,ehtjiarm shall lbe July 1, 2015 through July 31, 2020 6 1, F, ±, ,� jfr TI Ili 2. That the Distri'et Clerk is direc�ed to publish this ordinance in accordance with the laws of the State of California ;, ki PASSED AND ADOPTED, by the 8d&d of rDi�pptors'of the Truckee Donner Public Utility District at a regular rT'eeting„thereof'dIl'lIuiy called and"leld''within said District on the fourth day of June 2014 by,:,tPe.following roll call'vote. n NOES„ t ABSENT t, ABSTAINS � 1 TRUCKEE DONNER,P1,QBLIC UTILITY DISTRICT y Tony Laliotis, President of the Board ATTEST: Michael D. Holley, Clerk of the Board Attachment 2 TRUCKEE II`I ONNER I� Public Utility District Ordinance No. 2014 - 04 EFFECTING THE EMPLOYMENT AGREEMENT FOR THE GENERAL MANAGER A WHEREAS, the Board of Directors employs a General Manager to manage tfiay b=day affs of the District; WHEREAS, the Board of Directors executed an Employment Agreementw'tGeneral Manager that expires on June 30, 2015; vg WHEREAS, the Board of Directors is satisfied with the G _eraI_7lanag&'s accomplishments and successful performance during the term of the existing agreement', WHEREAS, the Board wishes to extend the term of th K eneral nWr Employment Agreement for a period of five years, from July 1, 2015 through July 31, 20d4kh WHEREAS, the Board wishes to amend the terms of the General Manager Employment Agreement as outlined in Amendment No. 2 Iff THEREFORE, BE IT ENACTED by the bard of-D_rectaf of the District that effective thirty days from the date of passage of this ordinance the`f�tJlowip0ctio_ ur: 1. The General Manager's Emoyrn nt A ,eem term shall be July 1, 2015 through July 31, 2020 2. Amendment No. 2 of the Ger_er {11lange ployment Agreement shall be approved 115 3. That the District ClerAlt d, ted t � lish this ordinance in accordance with the laws of the State of California. M, PASSED AND,ANO b-the Board of Directors of the Truckee Donner Public Utility District at a regular meeti.zo, her of dummy lled and held within said District on the fourth day of June 2014 by the following rol 11 vo AYES W NOES & A6 E 1T: ABST1_�I: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By Tony Laliotis, President of the Board ATTEST: Michael D. Holley, Clerk of the Board CRATr Contractors Association of Truckee Tahoe June 3, 2014 The Honorable Tony Laliotis President, Board of Directors Truckee Donner Public Utility District 11570 Donner Pass Road Truckee, CA 96161 RE: June 4 Meeting—Agenda Item 16— Consideration of an Ordinance Extending the General Manager's Employment Agreement Dear President Laliotis and Directors: The Contractors Association of Truckee Tahoe is a regional trade association composed of 334 member companies representing the broad spectrum of the building industry. Many of our members are construction customers and utility ratepayers of the District. The appearance of the General Manager's Employment Agreement on the June 4 agenda took us by surprise. Although the General Manager's agreement was agendized on numerous occasions as closed session items earlier this year, there were no details provided in the minutes to enlighten us (i.e. "no reportable action"). It also is a shame that we did not have a chance to sit down and discuss this with you before the June 4 agenda came out. We try to follow a "no surprises" policy with agencies and appreciate the courtesy given by a heads-up before significant action is proposed. This sentiment is the same expressed by CATT in March 2010 when the General Manager's agreement was before you then. Please consider three requests from this Association: 1) Defer your decision on the General Manager's Employment Agreement. The delay would be to the next TDPUD Board meeting. 2) Schedule a meeting between three CATT members and two TDPUD Board members. The purpose of the meeting is to receive explanation why the agreement was negotiated a year before renewal, justification for the salary and vacation increases, and overview of the benefits package. Also, please explain why there are two closed session items on the same agenda related to the General Manager. These two items are #19 and #21. 1 found GC Section 54957.6 but could not find GC section 54957 (e). Suggested day/time for this meeting is next Thursday, June 12, at 4:00 PM. 3) Please email a copy of the current contract so I can email that to our members who will be attending the requested meeting. Thank you for listening. We look forward to your favorable decision on these requests. Don't hesitate to contact me if you have any questions (530-550-9999 or pat@ca-tt.com). Sincerely, CONTRACTORS ASSOCIATION OF TRUCKEE TAHOE Ov Pat Davison Executive Director 12313 Soaring Way, Suite 1 G ® Truckee CA 96161 ® 530-550-9999 fax 530-550-9998 • info@ca-tt.com Barbara Cahill From: Pat Davison <pat@ca-tt.com> Sent: Tuesday,June 3, 2014 1:11 PM To: Tony Laliotis; Bob Ellis;Jeff Bender;Joe Aguera; Ron Hemig Cc: Barbara Cahill; Michael Holley; Mitch Clarin Subject: CATT Letter for tomorrow night Attachments: CATT letter re defer-GM Agmt 6-3-14 - Copy.pdf President Laliotis and Directors—attached is CATT's letter asking for a delay of decision on the extension of the General Manager's agreement and proposing a date to meet next Thursday afternoon,June 12. Please note I have cc'ed this email to Michael Holley, Barbara Cahill, and CATT Local Government Affairs Chairman Mitch Clarin. I'll be at your meeting tomorrow night but out of town this Thursday and Friday. Thanks for considering our request. Pat Pat Davison Executive Director Contractors Association of Truckee Tahoe 12313 Soaring Way, Suite 1G, Truckee, CA 96161 phone 530-550-9999 fax 530-550-9998 www.ca-tt.com pat(a)ca-tt.com 1 Truckee Donner Public Utility District Board of Directors Joseph R. Aguera Jeff Bender J. Ron Hemig Mitch Clarin John Hillstrom Pat Davison Tony Laliotis Contractors Association of Truckee Tahoe General Manager 12313 Soaring Way, Suite 1 G Michael D. Holley Truckee CA 96161 RE:Consideration of an Ordinance Extending the General Manager's Employment Agreement March 18, 2010 Dear Mr. Clarin, Ms. Davison and CATT members: Thank you for your letter dated March 17, 2010 wherein you requested the TDPUD Board of Directors delay making a decision on the General Manager's Employment Agreement at the March 17, 2010 Board meeting. The Board appreciates CATT's interest and involvement in this issue. We did however decide not to postpone voting on this item due to scheduling issues and negotiation momentum. An immense amount of time and effort went into this item before the vote last night. All positive momentum that favored the TDPUD and Its ratepayers with respect to this issue could have been lost if such a delay was to occur. While we are aware CATT members knew this issue had been discussed in closed session over a period of many weeks prior to it being placed on the agenda for public consideration, we are sensitive to your belief that CATT did not have much time to consider this formal item. Nevertheless, I am personally grateful to have had the opportunity to speak with each of you individually, and come to CATT's LGAC meeting earlier this week to discuss this item in depth and answer your questions. Additionally, 1 would like to offer my time along with General Manager Holley's-to meet with you, CATT's LGAC committee, or other members to discuss the issues raised in your letter or any other issues within the purview of the TDPUD. Again, thank you for your interest and participation. The TDPUD and its Board of Directors greatly appreciates public input regarding issues related to the TDPUD. Please do not hesitate to contact me. Very truly yours, Jeff Bender, President TDPUD Board of Directors