Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
9 Public Hearing General Manager's Transition Agreement
AgendaItem#JL9kTRUCKEEDONNERIUtiIity_DistrictPUBLICHEARINGTo:BoardofDirectorsFrom:SteveC.GrossDate:May01,2019Subject:ConductaPublicHearingandConsiderationofAdoptingOrdinance2019-03,ApprovingtheGeneralManager’sTransitionAgreement1.WHYTHISMATTERISBEFORETHEBOARDEmployementcontractswiththeGeneralManagerarewithintheBoard’spervue.2.HISTORYTheBoardofDirector’scontractedwiththeGeneralManagerinJanuaryof2008,outliningtermsofemployment.SincethattimetheBoardhasamendedtheGeneralManager’scontracttwice,thelasttimein2015.WiththeeminentretirementofMichaelHolley,GeneralManager,scheduledforthethirdquarterof2020,acomprehensivesuccession/transitionplanwillberequiredtoprocureandretainanewGeneralManager.3.NEWINFORMATIONExecutivetransitionsareacomplexprocessthatrequiresdirectionandparticipationattheBoardlevel.ThissensitiveprocessallowsforaplethoraofopportunitieswithintheExecutiveTeam,Board,andstaff.Moreover,managingthedepartureoftheGeneralManagerrequires,contemplationofneedsfromthenextManager,recruitment,hiring,andtransition.AlloftheseaspectswillbeparamounttotheDistrictforthenextyearandbeyond.SuccessionplanningisakeyelementtothesuccessofaGeneralManager’stransition,andimplementingastrongprocess,transparency,andcommunityparticipation,willaddtotheoverallsuccessofthiskeycommunityposition.Furthermore,transitionagreementsarecontractsbetweentwopartiesthatmayoutlinerolesandresponsibilities,projectsanddeadlinestoensureatransitionofahighexecutiveisseamlessandfocusonelementsthatwillrequiremanagementofthetransition.IthasbeenidentifiedthatatransitionagreementwillbeusefulfortheremainingtermoftheGeneralManager’scontract.Theagreementsetsforththeconditionsandtermsofthetransition;aswellasageneralreleaseofemploymentattheconclusionofthecontract. Asatransitionagreementisanemploymentagreement,MichaelHolleyhasretainedthelawfirmofMeyersNavetorepresenthiminthenegotiationandpreparationofthetransitionagreement.Inparticular,CamillePating,ofMeyersNaveandGeneralCounsel,SteveGrosshaveworkedcollaborativelyonthetransitionagreementintheinterestofallpartiesinvolved.BecausethistransitionagreementprovidesforanadjustmenttoMr.Holley’scompensation,itmustbeapprovedandadoptedbyordinanceinaccordancewithCaliforniaPublicUtilitiesCodeSection16112.AssociatedwiththetransitionagreementisaconflictwaiverwithPorterSimonLawFirm,thiswaiverallowsforGeneralCouncil,SteveGross,tocompletelegalservicesregardingthetransitionagreementandparticipateinthetransition/successionplanningprocess.5.RECOMMENDATION1)ConductapublichearingregardingOrdinance2019-03,2)AuthorizetheBoardPresidenttosigntheConflictWaiverwithPorterSimonLawFirm;and3)AdoptOrdinance2019-03andAuthorizetheBoardPresidenttosigntheGeneralManager’sTransitionAgreement.frzMichaelD.HolleyGeneralManager LouisA.BasileDavidW.Wolfe*KelleyR.Carroll*tPeterH.Cuttitta*StephenC.Lieberman,BrianC.Hanley*DQRTERSIM0NDecniswpeCALwJamesL.Porter,Jr.*JamesE.SimonLAW0FFICESCertifiedSpecialistinEstateRavnR.Whitington*Planning,Trust&ProbateLaw(CaliforniaBoardofLegal.Specialization)*AlsolicensedinNevadaApril12,2019BobEllis,BoardPresidentTruckeeDonnerPublicUtilityDistrict11570DonnerPassRoadTruckee,CA96160Re:ConflictofInterestWaiver—TruckeeDonnerPublicUtilityDistrictNegotiationandImplementationofaTransition,RetirementandSeparationAgreementandGeneralReleaseandADEAReleaseDearBob:WehavebeenaskedbyMichaelHolley(“Holley”)andTruckeeDonnerPublicUtilityDistrict(the“District”)toworkwithMr.Holleyandhispersonallawyertoprepare,negotiateandadministeraTransition,RetirementandSeparationAgreementandaGeneralReleaseandADEARelease(“Agreements”)tobeenteredintobyandbetweentheDistrictandMr.Holley.InthecourseofpreparingandnegotiatingtheAgreements,PorterSimonwillberepresentingtheDistrictonly.Mr.Holleywillberepresentedbyhispersonalattorney.PorterSimoniscurrentlyprovidingMr.Holleywithlegalrepresentationintheformofestateplanningservices.Asyouareaware,PorterSimoncurrentlyrepresentstheDistrict,servingasitsGeneralCounsel,aswehaveformanydecades.InourcapacityasGeneralCounsel,weprovideongoinglegalservicesandrepresenttheDistrictinnumerousmatters.InthecourseofourrepresentationoftheDistrictwithrespecttotheAgreements,apotentialconflictofinterestmayarise.ConflictsofinterestinmatterssuchasthisaregovernedbyCaliforniaRulesofProfessionalConduct,Rule1.7,whichprovidesasfollows:(a)Alawyershallnot,withoutinformedwrittenconsentfromeachclientandcompliancewithparagraph(d),representaclientiftherepresentationisdirectlyadversetoanotherclientinthesameoraseparatematter.(b)Alawyershallnot,withoutinformedwrittenconsentfromeachaffectedclientandcompliancewithparagraph(d),representaclientifthereisasignificantriskthelawyer’srepresentationoftheclientwillbemateriallylimitedbythelawyer’sresponsibilitiestoorrelationshipswithanotherclient,aformerclientorathirdperson,orbythelawyer’sowninterests.{00821773.DOC1}TRUCKEE40200TruckeeAirportRoad,Truckee,California96I6Iphone(530)587-2002fax(530)587-I3I6TAHOECITY•RENO Page2of4April23,2019(c)Evenwhenasignificantriskrequiringalawyertocomplywithparagraph(b)isnotpresent,alawyershallnotrepresentaclientwithoutwrittendisclosureoftherelationshiptotheclientandcompliancewithparagraph(d)where:(1)thelawyerhas,orknowsthatanotherlawyerinthelawyer’sfirmhas,alegal,business,financial,professional,orpersonalrelationshipwithorresponsibilitytoapartyorwitnessinthesamematter;or(2)thelawyerknowsorreasonablyshouldknowthatanotherparty’slawyerisaspouse,parent,child,orsiblingofthelawyer,liveswiththelawyer,isaclientofthelawyeroranotherlawyerinthelawyer’sfirm,orhasanintimatepersonalrelationshipwiththelawyer.(d)Representationispermittedunderthisruleonlyifthelawyercomplieswithparagraphs(a),(b),and(c),and:(1)thelawyerreasonablybelievesthatthelawyerwillbeabletoprovidecompetentanddiligentrepresentationtoeachaffectedclient;(2)therepresentationisnotprohibitedbylaw;and(3)therepresentationdoesnotinvolvetheassertionofaclaimbyoneclientagainstanotherclientrepresentedbythelawyerinthesamelitigationorotherproceedingbeforeatribunal.(e)Forpurposesofthisrule,“matter”includesanyjudicialorotherproceeding,application,requestforarulingorotherdetermination,contract,transaction,claim,controversy,investigation,charge,accusation,arrest,orotherdeliberation,decision,oractionthatisfocusedontheinterestsofspecificpersons,oradiscreteandidentifiableclassofpersons.Underourethicalrules,wemayonlyrepresentclientswithconflictingorpotentiallyconflictinginterestsiftheclientsprovidewritten,informedconsenttowaivetheconflictafterdisclosureoftheactualandreasonablyforeseeableadverseconsequences.WebelievewewillbeabletoprovidecompetentanddiligentrepresentationtotheDistrictwithrespecttotheAgreementsandallothermattersandHolleywithrespecttotheestateplanningmatterincompliancewiththeethicalrules.ItisimportantthattheDistrictagreestokeepourfirmapprisedofanyotherpotentialoractualconflictsofinterestthatitbecomesawareofinthefuture.Nevertheless,ourrepresentationsassetforthinthisletterraisesissuesthattheDistrictshouldcarefullyconsider.Forexample,clientsaskedtowaiveconflictsofinterestsshouldconsider(i)whetherthereisanymaterialriskthattheirattorneywillbelesszealousoreagerontheirbehalfduetotheconflictsand(ii)whethertheirattorney’sindependentprofessional{00821773.DOC1} Page3of4April23,2019judgmentcouldbeaffectedbythoseofanotherclient.TheDistrictshouldalsoconsiderwhetherthereisanymaterialriskthatwehaveacquiredorwillacquireanyknowledgeoftheDistrict’sconfidentialbusinessaffairswhichifinadvertentlydisclosedwouldbedetrimentaltotheDistrict.WedonotbelievethatthereisamaterialriskofanyoftheforegoinginourrepresentationoftheDistrictwithrespecttopreparationandnegotiationoftheAgreementsandHolleyintheestateplanningmatter.Ifatanytimeduringthecourseofthisfirm’srepresentationoftheDistrictwithrespecttotheAgreements,theDistrictbelievesthatourrepresentationofitmaybedetrimentaltoitsinterests,weaskthattheDistrictagreetonotifyusimmediatelysothatwemaydiscontinuesuchrepresentationoftheDistrictwithrespecttotheAgreements.IntheeventthattheDistrictdecidestoterminatesuchrepresentation,wereservetherighttocontinuerepresentingMr.HolleyontheestateplanningmatterandtheDistrictonothermatterstotheextentallowableunderourattorneyethicalrules.Regardlessofwhetheranyactualconflictofinterestarises,wewillnotbeabletodiscloseanyconfidentialand/orprivilegedinformationthatweacquireinourrepresentationoftheDistricttoMr.Holleyoranyconfidentialand/orprivilegedinformationthatweacquireinourrepresentationofMr.HolleytotheDistrict.WesuggestthattheDistrictconsultanindependentattorneytodiscussthepotentialconflictofinterestinvolvedhereandtherisksandconsequencesfortheDistrictarisingtherefrom.Accordingly,iftheDistrictreasonablybelievesthatitisinitsbestintereststowaivethepotentialconflictofinterestdescribedherein,thenpleasesignandreturntousacopyofthisletteracknowledgingandagreeingthat:1.TheDistricthasbeenadvisedofourfirm’sintenttoworkwithMr.HolleyandhislawyerwithrespecttotheAgreementsandourrepresentationofMr.Holleyintheestateplanningmatter,andhasbeenfurtheradvisedthataconflictofinterestmayariseinthisfirm’srepresentationoftheDistrictandMr.Holley;2.TheDistricthasbeenadvisedthatshouldaconflictofinterestdevelopbetweentheDistrictandMr.Holleythatcannotberesolvedbymutualagreement,thisfirmhasreservedtherightbywrittenagreementwiththeDistricttocontinuerepresentationofHolleyintheestateplanningmatterandtheDistrictonothermatters,notrelatedtotheconflictedmatter;3.TheDistricthasbeenadvisedthatithastherighttoseek,andthatitshouldseek,independentcounselregardingthepotentialconflictofinterestidentifiedinthisletter;and4.HavingbeenadvisedinthisletterofthepotentialconflictofinterestbetweenMr.HolleyandtheDistrict,theDistrictneverthelessagreestowaivethepotentialconflictofinterestreferencedinthisletterandconsentstothisfirm’snegotiations{00821773.DOC1} Page4of4April23,2019withMr.Holleyandhispersonalattorneyinconnectionwiththematterreferencedinthisletter.Thankyouverymuchforaddressingtheseconcerns.ShouldtheDistricthaveanyquestionsorconcernsregardingthisletter,pleasediscussthemwithusbeforesigningandreturningthisletter.Sincerelyyours,PORTERSIMONProfessionalCorporationSTEVENC.GROSSgross@portersimon.comCONSENTTruckeeDonnerPublicUtilityDistrictacknowledgesreceiptoftheconflictofwaiverdisclosureandagreestowaivethepotentialconflictofinterestassetforthabove.TRUCKEEDONNERPUBLICUTILITYDISTRICTDate:___________,2019___________________BobEllis,BoardPresident{00821773.DOC1} OrdinanceNo.2019-03rTRUCKEEDONNERb1icUtiIity_DistrictGENERALMANAGEREFFECTINGTHEEMPLOYMENTAGREEMENTFORTHEWHEREAS,theBoardofDirectorsemploysaGeneralManagertomanagethedaybydayaffairsoftheDistrict;WHEREAS,theBoardofDirectorsexecutedanEmploymentAgreementwiththeGeneralManagerthatexpiresonJuly31,2020;WHEREAS,theBoardofDirectorswishestoenterintoatransitionagreementwiththeGeneralManagerthroughtheendoftheemploymentcontractandsubsequentretirement.THEREFORE,BEITENACTED,bytheBoardofDirectorsoftheDistrictthateffectivethirtydaysfromthedateofpassageofthisOrdinancethefollowingactionsoccur:1.ThisOrdinanceapprovestheTransitionAgreementwhichamendatheEmploymentAgreement.ThetransitionagreementisincludedasExhibit“A”.2.ThattheDistrictClerkisdirectedtopublishthisordinanceinaccordancewiththelawsoftheStateofCalifornia.PASSEDANDADOPTEDbytheBoardofDirectorsoftheTruckeeDonnerPublicUtilityDistrictataregularmeetingthereofdulycalledandheldwithinsaidDistrictonthefirstdayofMay2019bythefollowingrollcallvote:AYES:NOES:ABSTAIN:ABSENT:TRUCKEEDONNERPUBLICUTILITYDISTRICTByBobEllis,PresidentoftheBoardATTEST:ShannaD.Kuhiemier,CMC,DistrictClerk Exhibit“A” TRANSITION,RETIREMENTANDSEPARATIONAGREEMENTTHISTRANSITION,RETIREMENTandSEPARATIONAGREEMENT(hereafter“AGREEMENT”)ismadebyandbetweenMichaelHOLLEY(“Mr.HOLLEY”)andtheTRUCKEEDONNERPUBLICUTILITYDISTRICT(“TDPUD”or“DISTRICT”).RECITALSI.Mr.HOLLEYbecameemployedbytheDISTRICTonapproximatelyJanuary14,2Q08;andiscurrentlyemployedpursuanttoTDPUDEmploymentAgreement—GeneralManager(“EmploymentAgreement”)contractdateciMarch17,2010,andAmendmentNo.1andAmendmentNo.2,whichareattachedheretoasExhibitA;and2.Mr.HOLLEYservesasTDPUDQeneralManager,apositionoftheDISTRICTreportingdirectlytotheTDPUDBOARDofDirectors(“BOARD”).HeperformsallthedutiesandresponsibilitiesoftheGeneralManagerandsomedutiesoftheWaterUtilityManager,aswellasotherdutiesasdirectedbytheBOARD;and3.Mr.HOLLEY’sEmploymentAgreementwithTDPUDexpiresonJuly31,2020.Mr.HOLLEYdesirestoleaveTDPUDemploymentthroughretirementaftertheexpirationofhisEmploymentAgreement;and4.TDPUDandMr.HOLLEYdesiretoputanypastdisagreementsbehindthemandtoworktogetherproductively,toensureasuccessfulsuccessionprocessforthehiringandonboardingofanewGeneralManagertosucceedMr.HOLLEY,preferablybyJuly31,2020,andnolaterthanSeptember2020;and5.Toensureanorderlytransition,TDPUDandMr.HOLLEYdesiretoenterintothisAGREEMENTtoconfirmandclarifythetermsoftheirrelationshipthroughJuly 312020,ortheactualdateofhiringofanewGeneralManagertosucceedMr.HOLLEY(afterJuly31,2020andnolaterthanSeptember2020),whichevercomesfirst;and6.TDPUDandMr.HOLLEYfurtherdesiretoenterintothisAgreementinordertoconfirmandclarifythetermsoftheirrelationshipinordertoachieveamutuallyamicableseparation,onoraboutJuly31,2020andnolaterthanOctober1,2020.NOW,THEREFORE,THEPARTIESAGREEASFOLLOWS:TERMS1.TRANSITIONPERIOD.A.ResponsibilitiesofGeneralManagerlWaterUtilityManageri.UptoandincludingJuly31,2020,oradateasmutuallydetermined...bytheParties,(“TransitionPeriod”)Mr.HOLLEYwillcontinuetoperformhisdutiesandresponsibilitiesassetforthintheEmploymentAgreement,Section2.(ExhibitA).AsfurtherdescribedinSection240oftheTDPUDCode,theBOARDhas.delegatedcertainspecificauthorityandresponsibilitytoMr.HOLLEY,andincarryingoutsuchdutieshewilladheretopolicydeterminationsoftheBOARD.Thespecificauthorityandresponsibilitysodelegatedincludes,amongothers,matterspertainingtotheorganizationandoperationoftheDISTRICT,staffing,finances,reporting,andpublicandcustomerrelations.ii.ResponsibilityforPersonnelMattersandOperationalMatters.Subjecttopolicyformulationanddirectionbythe2 BOARDMr.HOLLEYshallplan,direct,coordinate,andreviewtheactivitiesoftheDISTRICT’swaterandelectricutilitiesoperationsandworkforces.Mr.HOLLEYwillcontinuetohaveresponsibilityforpersonnelmatters,includingmanagingpaidstaff,hiring,promotion,salarysettingandadjustmentswithinrangesestablishedbytheBOARD,discipline,evaluationandotherrelatedpersonneldecisions.iii.Mr.HOLLEYwillmakepersonneldecisionsduringthetransitionperiodinvolvingpositionsunderhismanagement,includingbutnotlimitedtotheWaterUtilityManager,theITDepartmentHead,linemanpositionsandanyotherrelevantpositions,asneededtopromote,retainandhirestaff,andotherrelateddecisions,forthebenefitoftheDISTRICT,allsubjecttopolicydeterminationsoftheBOARD.iv.BOARDMeetingsandReporting.Mr.HOLLEYwillcontinuetoattendBOARDmeetingsandwillkeeptheBOARDinformedaboutallrelevantmatters.B.RecruitmentAndOnboardingOfNewGeneralManagerMr.HOLLEYwillparticipateintheselectionprocessforanewGeneralManagerbybeingpresent,butnotquestioningapplicantsorvoting,duringinterviewsofapplicantsconductedbythefullBOARD.3 ii.Mr.HOLLEYwill,ifmutuallyagreeduponbytheParties,assisttheBOARDbyperformingotherRecruitmentreIateUtasks.iii.Mr.HOLLEYwill,ifmutuallyagreeduponbytheParties,participatetofacilitateonboardingofthenewGeneralManager,andMr.HOLLEYwoulddelayhisdeparturefromTDPUDafterJuly31,2020uptoOctober1,2020.C.TransitionRelatedCostsandExpenses.I.Mr.HOLLEYwillbereimbursedbyTDPUDfortransitionrelatedlegallees,costsandexpensespertainingtothenegotiationandpreparation-.---ofthisAgreement.Paymentoftransitionrelatedlegalfees,costsand.-..expenseswillbeduesevendaysafterMr.HOLLEYexecutestheGeneralReleaseandADEARelease(ExhibitB)describedinsection4AofthisAgreement,providedthathedoesn’trevokesuchReleasewithintheseven-dayperiod.2.MODIFICATIONSTOEMPLOYMENTAGREEMENTTERMS.A.Basesalary-COLA(ExhibitA,Section3).InrecognitionofMr.HOLLEY’sservicetotheTDPUDandinconsiderationofthetermsherein,beginningonJuly1,2019andfortheremainderofhisEmployment,TDPUDagrees,toprovideMr.HOLLEYwithafixedCOLAattherateof5.0%tobeappliedinJulyofeachyear.B.OutsideActivities(ExhibitA,Section14).ThissectionshallexemptanyoutsideactivitiesthatMr.HOLLEYmayengageinrelatedtoservingasaFaithleaderinanyreligiousorganization,providedthatsuchactivitiesdonotinterfereorconflictwithhisresponsibilitiesunderthisAgreementandtheEmploymentAgreement.4 3.RETIREMENTANDSEPARATIONAGREEMENTTERMS.A.LastDayofEmploymentTofacilitatetransition,Mr.HOLLEYwillretireandseparatefromtheTDPUDonJuly31,2020,unlessthePartiesmutuallyagreeuponalaterdatewhichwouldnotbelaterthanOctober1,2020.B.PaymentofAccrued,UnirisedLeaveBalances.OnthedateofMr.HOLLEY’sactualretirementandseparationfromTDPUD,TDPUDwillpaytoMr.HOLLEYallaccruedbutunusedleavebalancesthenowed,lessapplicablefederal,stateandlocalwithholding.C.AllothertermsoftheEmploymentAgreementshallremainineffectuntilhisretirementandseparation.4.ADDITIONALTERMSOFSEPARATIONA.GeneralReleaseandADEARelease.BasedupontheforegoingconsiderationitisexpresslyunderstoodandintendedbythePartiesthat,uponhisseparationonJuly31,2020,oranotherdatetobemutuallydeterminedbytheParties,Mr.HOLLEYwillexecuteacomprehensive,generalreleaseofanyandallpotentialclaimsincludingwithoutlimitation,AgeDiscriminationinEmploymentAct(“ADEA”)(‘GeneralReleaseandADEARelease”)againstTDPUD,andallrelatedParties.WithrespecttosuchGeneralReleaseclaimsundertheADEA,suchclaimswillbereleasedintheGeneralReleaseandADEAReleasewhichisattachedheretoasExhibitB.B.ContingentUponBOARDApproval.Mr.HOLLEYacknowledgesthatthisAgreementiscontingentuponapprovalbytheBOARD,andthisAgreementwillnotbecomeeffectiveabsentsuchapproval.5 CsParticipationinDraftingofAgreementSEachpartyhashadtheopportunitytoparticipateindraftingtheAgreement.Anyterms,conditionsorprovisionsoftheAgreementshaltnotbeconstruedagainstonepartyandinfavorofanotherbyvirtueofwhoactualtydraftedorcirculatedtheAgreement.D.Attorney’sFeesandVenue.TheprevailingpartyinanyactiontoenforceorinterpretthisAgreement,shallbeentitledtorecoveritsreasonablecosts,attorneys’feesandexperts’feesincurredtherein.AnycourtactionshallonlybecommencedandmaintainedintheSuperiorCourtinandfortheCountyofNevada,StateofCalifornia..E.ThePartiesacknowledgethattheyhavebeenrepresentedbycounselinthenegotiationandpreparationofthisAgreement,carefullyreviewedtheAgreementandknowwhatitcontainsandhaveenteredintothisAgreementvoluntarily,withoutcoercionandbasedontheirownjudgmentandnotinrelianceonanyrepresentationorpromisesmadebytheotherpartyotherthanthosecontainedherein.F.Mr.HOLLEYassumesfullresponsibilitytostateandfederaltaxingauthoritiesforanytaxconsequencesarisingoutofpaymentsmadeorbenefitsprovidedtohimunderthisAgreement.G.ThePartiesagreethattheywillnotmakeanyfalseorotherwisedefamatorystatementsabouteachother.AstotheTDPUD,thisincludesitspastandpresentBOARD,BOARDmembers,directors,departments,predecessors,successors,subsidiaries,relatedentities,managers,agentsandassigns.ThePartiesagreethatanybreachofthetermsandconditionssetforthinthissectionisamaterialbreachofthisAgreement,suchthattheotherPartywillbeirreparablyharmedasamatteroflawandwillbeentitledtopursueitslegalandequitableremedies,includingwithoutlimitationthe6 righttorecovermoneydamagesandseekinjunctiverelief,plusreasonableattorneys’fees,withoutlimitinganyotherremedyitmayhaveatlaworequity.ThePartiesagreetoexecutealldocumentsandperformallactsnecessarytoeffectuatethetermsandpurposesofthisAgreement.ThePartiesagreetoexecuteincounterparts,withthesameforceandeffectasifexecutedinasingle,completedocument.DATED::•__________________________MichaelHOLLEYDATED:__________________________ _______ _ _______ _ _____TruckeeDonnerPublicUtilityDISTRICT(TDPUD)APPROVEDASTOFORM:Dated:,2Q19By:_Dated:*,20193219325.17 TRUCKEEDONNERPUBLICUTILITYDISTRICTEMPLOYMENTAGREEMENTGENERALMANAGER{00i58388DOC3) IntroductionSection1:Section2:Section3:Section4:Section5:,Section6:Section7:.Section8:.Sectiçn9:.Section10:.Section11:Section12:Section13:Section14:Section15:Section16:Section17:Section18:Section19:Term,At-WillEmployment,ResidenceandEytensionorRenewalDutiesandAuthorityBaseSalaryInsuranceBenefitsVacation,AdministrativeDays,andSickLeaveandHolidaysAutomobileRetirementGeneralBusinessExpenscsTerminationSeverancePayResignationPerformanceEvaluationHoursofWorkOutsideActivitiesIndemnificationBondingOtherTernisandConditionsofEmploymentNoticesGeneralProvisionsP.’P.’P.2P.2P.2.3P.3P....P.3-4P.4P.5P.SP.SP.6P.6P.6P.7P.7P.7P.8-9EMPWYMENTAGREEMENTTADLEOFCONTENTSP.’{OO158388.EOC EmploymentAgreementIntroductionThisAgreementmadeandenteredintothis___DayofMarch,2010,byandbetweentheTruokeeDonnerPublicUtilityDistrict,(hereinaftercalledEmployer”or.“District”)andMichaelD.Holley,(hereinaftercalled“Employee”or“Holley”)anindividualwhohastheeducation,training,andexperienceinutilitymanagement,andbothofwhomagreeasfollows:Section1:Term,At-WillEmployment,ResidenceandExtensionorRenewalA.ThetermofthisAgreementshallbeforaperiodoffive(5)yearsbeginningonJuly1,2010andendingonJune30,2015.Allcompensation,benefitsandrequirementsofthisAgreementshallremainineffectuntiltheexpirationofthetermofthisAgreementorsoonerintheeventthatEmployeevoluntarilyresignsoristerminated.IntheeventthattheEmployeeisterminated,asdefinedinSection9ofthisAgreement,theEmployeeshallbeentitledtoallcQmpensationincludingsalaandaccedvacationpaidinlumpsumplusseverancepayinaccordanceSection10ofthisAgreement.C,,,B.TheEmployerandEmployeeagreethatEmployee’semploymentwithEmployerpursuanttothisAgreementis“at-will”,meaningthateithertheEmployerorEmployeemayterminatethisAgreementatanytime,foranyreasonornoreason,inaccordance.:withthetermsofthisAgreement,.C.DuringthetermofthisAgreement,EmployeeagreesthatatalltimesheshallresidewithinthephysicalboundaryoftheEmployer’selectricandorwaterSphereofInfluence..,..DAttheendofthetermofthisAgreement,thePartiesmaymutuallyagreetoextendorrenewthisAgreement.DuringJuly2014,thePartiesshallcommencenegotiationstodeterminewhethertheywouldliketoextendorrenewthisAgreementand.thetermsandconditionsofsuchrenewedorextendedagreement.Section2:DutiesandAuthorityAEmployeragreestoemployEmployeeasEmployer’sGeneralManagertoperformthefunctionsanddutiesofQeneralManagerasdirectedbytheEmployer’sBoardofDirectors,asmaybedelegatedtotheGeneralManagerbytheBoardofDirectorsandasaresetforthintheEmployer’spolicies,whichmaybeamendedbytheEmployer’sBoardofDirectorsfromtime4o-timeandtoperformotherlegallypermissibleandproperdutiesandfunctions..{00158388.00C3} BInadditiontothedutiessetforthimmediatelyaboveinSection2.AEmplQyeeshallperformsomeofthedutiesofEmployers’WaterUtilityManager.Section3:BaseSalaryA.EmployeragreestopayEmployeeanannualBaseSalaryofOneHundredEightyEightThousandOneHundredDollars($188,100.00),B,BeginningonDecember1,2010,EmployeragreestopayEmployeeanannualBaseSalaryofOneHundredNinetyNineThousandThreeHundredEightySixDollars($199,386.00)C.BeginningonJanuary1,2011andoneachJanuary1thereafter,duringthetermofthisAgreement,EmployershallincreaseordecreasetheBaseSalarybythepercentagechangeintheConsumerPriceIndexforAllUrbanConsumers(CPI-U,u.S.CityAverage,allitems,l98284l00,notseasonallyadjusted),overthepreviousconsecutiveI2monthperiodendingOctober31.D.BaseSalaryshallbepayableininstallmentsatthesametimethatetheremployeesoftheEmployerarepaid.Section4;InsuranceBenefitsA.TheEmployeragreestoprovidetheEmployeewiththesamemedical,dental,visionandlifeinsuranceasareprovidedtootheremployeesofEmployerinaccordancewithEmployer’spolicies.Section5:Vacation,AdministrativeDays,SickLeaveandHolidaysA.Duringeachofthefive(5)yearsofthisAgreement,Employeeshallaccruefifteen(15)daysofvacationleave.B.TheEmployeeshallannuallyaccrueeight(8)daysofAdministrativeLeaveinaccordancewithEmployer’spolicy.C.Employeeshallannuallyaccruetwelve(12)daysofsickleaveattherateofone(1)daypermonthinaccordancewithEmployer’spolicy.AccruedwwsedsickleavedayscanbeconverteduponretirementforadditionalservicetimeforCa1PERSretirementbenefitsinaccordancewiththeEmployer’sagreementwithCaIPER$andCaIPERS’policy.D.TheEmployeeshallannuallyreceiveeleven(11)daysofpaidholidaysinaccordancewithEmployer’spolicy.(001583850CC3) (.E.TheEmployeeisentitledtoaccrueallunusedvacation,withoutlimit,andintheeventtheEmployee’semploymentisterminated,eithervoluntarilyorinvoluntarily,theEmployeeshallbecompensatedforallaccruedunusedvacationtime.Section6:Automobile.A.InaccordancewiththeJmpIoyer’sVehicleUsePolicy,theEmployershallprovideEmployeewithavehicleforworkrelateduseandcommutingtoandfromwork.Employershallberesponsiblefor.payingforliability,propertydamage,andcomprehensiveinsurance,andfortheoperation,maintenance,repairoftheveiicle.Employeeshallberesponsibleforpayingappropriatetaxesonthecostofcommuting.Section7:RetIrementA.TheEmployeragreestoenrolltheEmployeeintotheCaIPERSretirementsystem..inaccordancewiththeEmployer’sagreementwithCa1PERSandtomakecontributionsontheEmployee’sbehalfinaccordancewiththeEmployer’spolicy.B.InadditiontotheEmployer’spaymenttotheCa1PERSretirementplanreferenced/above,Employeragreestoenrollthe.Employee.intotheEmployer’sSection457or401(...deferredcompensationplanandtomakematchingcontributionontheEmployee’sbehalfiptothreepercent(3%)inaccordancewiththeEmployer’spolicyC,TheEmployeragreestomakeaonepercent(1%)ofbaseannualcontributiontotheEmployee’s457BPlanonJanuary1,ofeachyear.i:.ForandinconsiderationofEmployee’sperformanceofdutiesastheEmployer’sWaterUtilityManager,inadditiontotheperformanceoftheotherdutiesdescribedinSection2,above,EmployershallannuallymakealumpsumcontributiontoEmployee’sSupplementalIncomePlanequaltofivepercent(5%)ofEmployee’sBaseSalary,1aohannuallumpsumcontributionshallbemadeduringJuly,withthefirstcontributionbeingmadeinJuly2010.Eachannuallumpsumcontributionshallbecalculatedasfivepercent(5%)ofEmployee’sBaseSalaryatthetimethecontributionismade.Section8:GeneralBusinessExpensesA.Employeragreestoreasonablybudgetforandtopayforprofessionalduesandsubscriptions.oftheEmployeenecessaryforcontinuationandfullparticipationinnational,regionat,state,andlocalassociations,andorganizationsnecessaryanddesirablefortheEmployee’scontinuedprofessionalparticipation,growth,andadvancement,andfqrthegoodoftheEmployer...:(OO15838SDOC3)3 B.EmployeragreestoreasonablybudgetforandtopayfortravelandsubsistenceexpensesofEmployeefOrprofessionalandofficialtravel,meetings,andoccasionstoadequatelycontinuetheprofessionaldevelopmentofEmployeeandtopursuenecessaryofficialfunctionsforEmployer,andsuchothernational,regional,state,andlocalgovernmentalgroupsandcommitteesinwhichEmployeesçrvesasamemberSC,EmployeragreestoreasonablybudgetforandtopayfortravelandsubsistenceexpensesofEmployeeforshortcourses,institutes,andseminarsthatarenecessaryfortheEmployee’sprofessionaldevelopmentandforthegoodoftheEmployerp.J3mplQyerrecognizesthatcertainexpensesofanonpersonalbutjobrelatednatureareincurredbyEmployee,andagreestoreimburseortopaysaidgeneralexpenses.E.TheEmployeracknowledgesthevalueofhavingEmployeeparticipatearidbedirectlyinvolvedinlocalcivicclubsororganizations.Accordingly,Employershallpayforthereasonablemembershipfeesand/orduestoenabletheEmployeetobecomeanactivememberinlocalcivicclubsororganizations.F.TheEmployershallprovideEmployeewithacomputer,software,fax/modem,cellphoneandpagerrequiredfortheEmployeetoperformthejobandtomaintaincommunication..G.TheEmployershallprovideEmployeewithanannualallowanceoffiveHundredDollars($500,00)forthepurchaseofEmployee’spersonalprotectiveequipmentortools.Section9:TerminationForthepurposeofthisAgreement,terminationshalloccurwhen:A.Aquorumof•theEmployer’sBoardofDirectorsvotestoterminatetheemploymentofEmployeeatadulynoticedmeeting.B.IftheEmployerreducesthebasesalary,compensationoranyotherfinancialbenefitoftheEmployeeinamannerthatdiffersmateriallyfromsimilarreductionsthataffectotheremployeesoftheEmployer,suchactionshallberegardedasatermination.C.IftheEmployeeresignsfollowinganoffertoacceptresignation,whetherformalorinformal,byarepresentativeofamajorityoftheEmployer’sBoardofDirectorsauthorizedtoactonbehalfoftheBoardofDirectors,thentheEmployeemaydeclareaterminationasofthedateoftheoffertoacceptresignation.D.BreachofthisAgreementdeclaredbyeitherpartywithathirty(30)daycure,.periodforeitherEmployeeorEmployer.Writtennoticeofabreachofcontractshallbe(providedinaccordancewiththeprovisionsofSection18.{00f58388.DOC3}4 Section10:SeverancePay•A,Severanceshall.bepaidtotheEmp1oyewhenemploymentisterminatedasdefinedinSection9.B.IftheEmployeeisterminated,theEmployershallprovideEmployeeaseverancepaymentequaltotwelve(12)month’sEmployee’sbasesalaryatthecurrentrateofpayatthetimeofterminationandpaythepremiumsformedical,dental,visionandlifeinsuranceasprovidedinSection4foraperiodoftwelve(12)monthsfollowingthetermination.ThisseverancepaymentshallbepaidinalumpsumunlessotherwiseagreedtobytheEmployerandtheEmployee.C,TheEmployeeshallalsobecompensatedforallaccruedvacationtime,allpaidholidays,andproratedadministrativedaysduringthetwelve(12)monthperiodfollowintermination.0.IftheEmployeeisterminatedbecauseofaviolationofanyoftheEmployer’spolicies,forareasonthatconstitutesgroundsfordisciplinepursuanttotheEmployer’spoliciesorconvictionofafelony,thentheEmployerisnotobligatedtopaytheimployeetheseverancepaymentortheinsuroncepremiumsassetforthinSectionslO.BadIOC..(.Section11:ResignationA.•IntheeventthattheEmployeevoluntarilyresignshispositionwiththeEmployer,theEmployeeshallprovideaminimumofthirty(30)daysnoticeunlessthepartiesagreeotherwiseSection10,SeverancePay,doesnotapplywhenEmployeevoluntarilyresigns,orretires...Section12:PerformanceEvaluationA.Employer’sBoardofDirectorsshallannuallyestablishperformancegoalsandobjectivesforthecomingyearandreviewthepastperformanceoftheEmployeenolaterthanJanuary31ofeachyear;subjecttoaprocess,form,criteria,andformatfortheevaluationwhichshallbemutuallyagreeduponbytheEmployer’sBoardofDirectorsandEmployeeaTheprocessataminimumshallincludetheopportunityforbothpartiesto:(1)Establishgoalsandobjectivesforthecomingyear,(2)prepareawrittenevaluation,(3)meetanddiscusstheevaluation,and(4)presentawrittensummaryoftheevaluationresults.ThefinalwrittenevaluationshouldbecompletedanddeliveredtotheEmployeewithinthirty(30)daysoftheevaluationmeeting.{00158388.0003)5 Section13:hoursofWorkA.Employeeshalldevotehisfull4imeeffortsandsuchtimeasisreqiiiredtoperformhisdutiesasEmployer’sGeneralManager.EmployeeshallgenerallymaintainofficehoursMondaythroughFridayfrom8atmto5pin.Section14:OutsideActivitiesA,TheemploymentprovidedforbythisAgreementshallbetheEmployee’ssoleemployment.RecognizingthatcertainoutsideconsultingorteachingopportunitiesprovideindirectbenefitstotheEmployerandthecommunity,theEmployeemayelect,withBoardapproval,toacceptlimitedteaching,consulting,and,otherbusinessopportunitieswiththeunderstandingthatsucharrangementsshallnotconstituteinterferencewith,nor,aconflictofinterestwithhisresponsibilitiesunderthisAgreement.Section15:IndemnificationA.BeyondthatrequiredunderFederal,StateorLocalLaw,Employershalldefend,saveharmlessandindemnifyEmployeeagainstanytort,professionalliabilityclaimor.demandor.otherlegalaction,whethergroundlessorotherwise,arisingout.ofanallegedactoromissionoccurringintheperformanceofEmployee’sdutiesasGeneralManagerorresultingfromtheexerciseofjudgmentordiscretioninconnectionwiththeperformanceofprogramdutiesorresponsibilities,unlesstheactoromissioninvolvedwillfulorwantonconduct.TheEmployeemayrequestandtheEmployershallnotunreasonablyrefusetoprovideindependentlegalrepresentationatEmployer’sexpenseandEmployermaynotunreasonablywithholdapproval.Iegalrepresentation,providedbyEmployerforEmployee,shallextenduntilafinaldeterminationofthelegalactionincludinganyappealsbroughtbyeitherparty.TheEmployershallindemnifyemployeeagainstanyandalllosses,damages,judgments,interest,settlements,fines,coirtcostsandotherreasonablecostsandexpensesoflegalproceedingsincludingattorneysfees,andanyotherliabilitiesincurredby,imposedupon,orsufferedbysuchEmployeeinconnectionwithorresultingfromanyclaim,action,suit,orproceeding,actualorthreatened,arisingoutoforinconnectionwiththeperformanceofhisduties,AnysettlementofanyclaimmustbemadewithpriorapprovaloftheEmployerinorderforindemnification,asprovidedinthisSection,tobeavailable.B.EmployeerecognizesthatEmployershallhavetherighttocompromiseandunlesstheEmployeeisapartytothesuitwhichEmployeeshallhaveavetoauthorityoverthesettlement,settleanyclaimorsuit;unless,saidcompromiseorsettlementisofapersonalnaturetoEmployee.Further,EmployeragreestopayallreasonablelitigationexpensesofEmployeethroughoutthependeneyofanylitigationtowhichtheEmployeeisaparty,witnessoradvisortotheEmployer.SuchexpensepaymentsshallcontinuebeyondEmployeesservicetotheEmployeraslongaslitigationispending.{00158388.DOC3}6 I••••Section16:BondingA.BmployershallbearthefullcostofanyfidelityorotherbondsrequiredoftheEmployeeunderanylaworby1aw.Section17:OtherTermsandConditionsofEmploymentA.TheEmployer,onlyuponagreementwithEmployee,shallfixanysuchothertermsandconditionsofemployment,asitmaydeterminefromtimetotime,relatingtotheperformanceoftheEmployee,providedsuchtermsandconditionsarenotinconsistentwithorinconflictwiththeprovisionsofthisAgreement,theEmployer’spolicies,oranyotherlaw.B.ExceptasotherwiseprovidedinthisAgreement,asagreedtcbyEmployerandEmployeeorrequiredbyapplicablelaw,theEmployee.shallbeentitledtothesamebenefitsthatareenjoyedbyothermanagementemployeesofEmployerinaccordancewithEmployer’spolicies.Section 1$:Noticesp..,.::..•A,NoticepursuanttothisAgreementshallbevenbydepositinginthe.custodyof•(..;theUnitedStatesPostalService,postageprepaid,addressedasfollows:EMPLOYER:PresidentoftheBoardofDirectors.TruekeeDoimerPublicUtilityDistrictP.O.Box30911570DonnerPassRoadTruckee,CA96160EMPLOYEE:Michael0,HolleyI0526BuckhornRidgeCt.Tnickee,CA96161B.Alternatively,noticerequiredpursuanttothisAgreementmaybepersonallyservedinthesamemannerasisapplicabletociviljudicialpractice.NoticeshallbedeemedgivenasofthedateofpersonalserviceorasthedateofdepositofsuchwrittennoticeinthecourseoftransmissionintheUnitedStatesPostalService.{00158388DOC317 Section19:GeneralProvisionsA.Integration.ThisAgreementsetsforthandestablishestheentireunderstandingbetweentheEmployerandtheEmployeerelatingtotheemploymentoftheEmployeebytheEmployer.AnypriordiscussionsorrepresentationsbyorbetweenthepartiesaremergedintoandrenderednullandvoidbythisAgreement.ThisAgreementmayoniybeamendedbymutualwrittenagreementofbothparties.SuchamendmentsshallbeincorporatedandmadeapartofthisAgreement.8.BindingEffectThisAgreementshallbebindingontheEmployerandtheEmployeeaswellastheirheirs,assigns,executors,personalrepresentativesandsuccessorsininterest.C,EffectiveDate.ThisAgreementshallbecomeeffectiveonMy1,2010.AnyotheremploymentagreementbetweenEmployerandEmployeeineffectpriortoandasofJuly1,2010shalltenninateandbeofnofurtherforceoreffectasofJuly1,2010whenthisAgreementbecomeseffective.(D.Severability.TheinvalidityorpartialinvalidityofanyportionofthisAgreementwillnotaffectthevalidityofanyotherprovision.IntheeventthatanyprovisionofthisAgreementisheldtobeinvalid,theremainingprovisionsshallbedeemedtobeinfullforceandeffectasiftheyhavebeenexecutedbybothpartiessubsequenttotheexpungementorjudicialmodificationoftheinvalidprovision.B.Venue.AnyactiontointerpretorenforcethisAgreementshallbecommencedandmaintainedintheCountyofNevadainCalifornia.F,Choiceoflaw.ThisAgreementshallbegovernedbythelawsofCalifornia.G.Attorneyfees.TheprevailingpartyinanyactiontointerpretorenforcethisAgreementshallbeentitledtoreasonableattorneyfees,costandexpenseinadditiontoanyotherrelieftowhichtheCpartymaybeentitled.OO158388.DOC3} (H.AlternateDisputeReso1utionBothpartiesagreetomediateanydisputeorclaimarisingbetweenthemoutofthis.Agreementwhichcannotbeadjustedbyandbetweenthembeforeresortingtocourtaction.Mediationfees,ifany,shouldbedividedbetweenthepartiesIfeitherpartycommencesacourtactionagainsttheother,basedonadisputeorclaimtowhichthisparagraphapplieswithoutfirstattcmptingtorcsolvethematterthroughmediation,thepartycommencingthccurtactionshallnotbeentitledtorecoverattQmeyfees,eveniftheywouldotherwisebeavailableinanysuchcourtaction.I.Counterparts..ThisAgreementmaybeexecutedinoneormorecounterparts,eachofwhichshallbedeemedanoriginal,butallofwhichtogethershallconstituteoneandthesameinstrumentandeachpartymaydeliveritsexecutedcounterparttotheotherpartyviafacsimileoremail.J.Waiver.NowaiverofanybreachçfanycovenantorprovisioninthisAgreementshallbedeemedawaiverofaiiyothercovenantorprovisioninthisAgreementandnowaivershallbevalidunlessinwritingandexeoutcdbythewaivingparty.K.Re-OpenerThePartiesagreetonegotiateingoodfaithforanamendmenttoormodificationofthisAgreementintheeventthat:(1)Employee’sdutieswithrespecttoperformanceofthedutiesoflEmployer’sWaterUtilityManagerasdescribedinSection2.B.,above,aresubstantiallymodifiedoreliminated;or(2)theEmployersignificantlychangesthemedical,dental,visionandlifeinsurancebenefitsprovidedtoitsemployees,includingEmployee.Signedthisdate;March17,2010...Employer:Employee:MichaelD.HolleyPresidentoftheBoardTruokeeDonnerPublicUtilityDistrict{QO15838B,DOQ3.9 OrdinanceNo2010-01EFFECTINGTHEEMPLOYMENTAGREEMENTFORTHEGENERALMANAGERWHEREAS,theBoardofDirectorsemploysaGeneralManagertomanagethedaybydayaffairsoftheDistrict;WHEREAS,theBoardofDirectorsexecutedanEmploymentAgreementwiththeGeneratManagerthatexpiresonDecember31,2010;WHEREAS,theBoardofDirectorsissatisfiedwiththeGeneralManager’saccomplishmentsandsuccessfulperformanceduringthetermoftheexistingagreement;WHEREAS,theBoardofDirectorsrecognizesthattheGeneralManagerhastakenontheresponsibilitiesoftheWaterUtilityManager;WHEREAStheBoardwishestoextendthetermoftheGeneralManagerEmploymentAgreementforaperiodoffiveyears,fromJuly1,2010throughJune30,2015;THEREFORE,BEITENACTEDbytheBoardofDirectorsoftheDistrictthateffectivethirtydaysfromthedateofpassageofthisordinancethefollowingactionsoccur:1.TheGeneralManager’sEmploymentAgreementtermshallbeJuly1,2010throughJune3O,20152.ThattheDistrictClerkIsdirectedtopublishthisordinanceinaccordancewiththelawsoftheStateofCalifornia..PASSEDANDADOPTEDbytheBoardofDirectorsofthe.TruckeeDonnerPublicUtilityDistrictataregularmeetingthereofdulycalledandheldwithinsaidDistrictontheseventeenthdayofMarch2010bythefollowingrollcallvote:AYES:DirectorsAguera,Bender,Hemig,andHilistromNOES:NoneABSTAIN:DirectorLatiotisTRUCJPONNERPUBLICUTILITYDISTRiCTByJeffBd-PresldentoftheBoardAIrEST:,-a1MichaelD.Hotley,ClerkoftTTIBoarU AMENDMENTNo.I.ToTRUCKEEDONNERPUBLiCUTILITYDISTRICTEMPLOYMENTAGREEMENTGENERALMANAGERThisAmendmentNo.ItotheTruckeeDonnerPublicUtilityDistrictEmploymentAgreementGeneralManagerismadeandenteredintothisfifteenthdayofNovember,2012,byandbetweentheTruckeeDonnerPublicUtilityDistrict,(hereinaftercalled“Employer”or“District”)andMichaelD.Holley,(hereinaftercalled“Employee”or“Holtey”)asfollows:WHEREAS,theEmployerandEmployeedesiretoamendtheTruckeeDonnerPiiblicljtilityDistrictEmploymentAgreementGeneralManagerenteredintobetweenthemonMarch17,2010(“Agreement”);andWHEREAS,theDistricVsBoardofDirectorsapprovedthetermsandconditionssetforthinthisAmendmentNo.IthroughtheadoptionofOrdinanceNo.2012-03duringitsspecialmeetingonNovember15,2012.NOWTHEREFORIEtheEmployerandEmployeeagreeasfollows:Section7oftheAgreement,Retirement,isamendedinitsentiretytoreadasfollows:A.TheEmployeragreestoenrolltheEmployeeintotheCaIPERSretirementsysteminaccordancewiththeEmployer’sagreementwithCaIPERS.BeginningonJanuary1,2013,Employeeshallpay50%of“normalcost”oftheplan,upto8%ofpensionablewages.8.TheEmployeeshallreceiveacontributionequalto2.64%ofEmployee’sBaseSalaryatthetimetheconstitutionismadeintoaflexiblespendingbenefit.ThisamountwillnotbereportabletoCaIPERSaswages,andcanbeusedattheemployee’sdiscretion.C.ForandinconsiderationofEmployee’sperformanceofdutiesastheEmployer’sWaterUtilityManager,inadditiontotheperformanceoftheotherdutiesdescribedinSection2,above,EmployershallannuallymakealumpsumcontributiontoEmployee’sSupplementalIncomePlanequaltofivepercent(5%)ofEmployee’sBaseSalary.EachannuallumpsumcontributionshallbemadeduringJuly,withthefirstcontributionbeingmadeinJuly2010.Eachannuallumpsumcontributionshallbecalculatedasfivepercent(5%)ofEmployee’sBaseSalaryatthetimethecontributionismade.Exceptasexpresslystatedherein,allothertermsandconditionsoftheagreementshallremainunchangedandinfullforceandeffect.Employer:Employee:.,,TonyLaliotisMichaelD.HolleyPresidentoftheBoardTruckeeDonnerPublicUtIlityDistrict OrdinanceNo2012-03EFFECTiNGTHEEMPLOYMENTAGREEMENTFORTHEGENERALMANAGERWHEREAS,theBoardofDirectorsemploysaGeneralManagertomanagethedaybydayaffairsoftheDistrict;WHEREAS,theBoardofDirectorsexecutedanmpIoymentAgreementwiththeGeneralManagerthatexpiresonJune30,2015;WHEREAS,theBoardofDirectorswishtocomplywithprovisionsofAB340,mandatingemployeestopay50%ofthe“formatcosts’oftheirCaIPERSpensionablewages.THEREFORE,BEITENACTEDbytheBoardofDirectorsoftheDistrictthateffectivethirtydaysfromthedateofpassageofthisOrdinancethefollowingactionsoccur:,ITheGeneralManagersEmploymentAgreementtermshattberevisedtoreflectthatbeginningJanuary1,2013;theemployeeshallpay50%ofthe‘1normalcost”oftheplan,upto8%ofpensionablewages.Theemployeeshallreceiveacontributionequalto2.64%ofhisBaseSalaryatthetimethecontributionismadeintoaflexiblespendingbenefit.ThecontractamendmentisincludedasExhibit“A’.2.ThattheDistrictClerkisdirectedtopublishthisordinanceinaccordancewiththelawsoftheStateofCalifornia.PASSEDANDADOPTEDbytheBoardofDirectorsoftheTruckeeDonnerPublicUtilityDistrictataregularmeetingthereofdulycalledandheldwithinsaidDistrictonthefifteenthdayofNovember2012bythefottowingrollcallvote:AYES:DirectorsAguera,Bender,HemigandLaliotisNOES:NoneABSTAIN:NoneABSENT:NoneTRUCKEEDONNERPUBLICUTILITYDISTRICTBy/%TonyLaliotis,PresidentoftheBoardATTEST:.MichaelDHalley,ClerkoftheBoard AMENDMENTNo.2ToTRUCKEEDONNERPUBLICUTILITYDISTRICTEMPLOYMEN’i’AOREEM1ENTGENERALMANAGERThisAmendmentNo2totheTruckeeDormerPublicUtilityDistrictEmploymentAgreementGeneraiManagerismadeandenteredintothisfourthdayofJune,2014,byandbetweentheTruckeeDonnerPublicUtilityDistrict,(hereinaftercalled“Employer”or“District”)andMichaelD.Hoiley,(hereinafiercalled“E;nploye&’or“Holley”)asfollows:W.HERUAS,theEmployerandEmployeedesiretoamendtheTruckeeI)onnerPublicUtilityl)istrictEmploymentAgreementGeneralManagerenteredintobetweenthemonMarch17,2010andamendedbyAmendn;entNo.1toTruckeeDonnerPublicUtilityDistrictEmploymentAgreementGeneralManageronNovember15,2012(“Agreement”);andWHEREAS,theDistrict’sBoardofDirectorsapprovedthetermsandconditionssetforthinthisAmendmentNo.2throughtheadoptionofOrdinanceNo,2014-04duringitsregularmeetingonJune4,2014.NOWTHEREFORE,theEmployerandEmployeeagreeasfollows:TheAgreementisamendedtoincludethefollowingprovisions,whichshall.supersedcanyconflictingprovisionsintheAgreement.1ThetennofthisAgreementshallbeextendedsoastocontinuethroughJuly31,2020.2OnJuly1,2015theBaseSalaryshallincrease8.5%.3.OnthedatethatthisAmendmentNo.2isfullyexecutedbytheParties,theEmployee’svacationaccrualshallinoreaseto25daysperyear.Forthecalendaryear2014,Employee’svacationaccrualshallbeproratedbasedmannualaccrualof25daysperyear.4.Section7.C,oftheAgreement,assetforthinAinenchnentNo.I,isamendedinitsentiretytostateasfollows:“C.ForandinconsiderationofEmployee’sperformanceofdutiesastheEmployer’sWaterUtilityManager,inadditiontotheperformanceoftheotherdutiesdescribedhiSection2,above,EmployershallannuallymakealumpsumcontributiontoEmployee’sSupplementalIncomePlanequaltofivepercent(5%)ofEmployee’sBaseSalary.EachannuallumpsumcontributionshallbemadeduringJuly,withthefirstcontributionbeingmadeinJuly2010.Eachannuallumpsumcontributionshallbeca].culatedasfiveGMAmendment2. percent(5%)ofEmployee’sBaseSalaryattheLimethecontributionismade.iThelumpsumpaymentdescribedinthisSectionshallbeconsideredtobeManagementIncentivePayasitrelatestoCALPERS’sdefinitionofcompensation.EmployershallcontinuetomakethelumpsumcontributiondescribedhereinforsolongasEmployeecontinuestoperformthedutiesofEmployer’sWaterUtilityManagerandthereafteruntilthefirsttooccurofeither(I)theexpirationofsix(6)monthsafterthedatethatEmployerfillsthepositionofWaterUtilityManagerwithadifferentemployee,or(2)theexpirationcrtenninatio;iofthIsAgreement.”5.AnewSectionlOB.isaddedtotheAgreementandstatesasfollows;“E.AllPaYmentsrequiredunderSections10.B.andC.aresubjecttoandshallbeinterpretedtocomplywiththelimitationssetforthinGovenunentCodeSection53260.Further,intheeventtheGeneralManagerisconvictedofacrimeinvolvinganabuseofofficeorposition,theGeneralManagershal.lreimburetheDistrictforanypaidleaveoicashsettlement(includingpaymentsmadepursuanttoSections1O.B.andC.)asprovidedbyGovernmentCodeSections53243—53243.4.”Exceptasexpresslystatedherein,allothertermsandconditionsoftheAgreementshallremainunchangedandinfullforceandeffect.June4,2014June4,2014I)ateDateEmployer;Employee;,--—I1Z)TonyLaliotisMichaelI).HolleyPresidentoftheBoardTruckeeDormerPublicUtilityDistrictGMAmendment2.2 .iTRUCKEDONNERt:UtihtyDistrtcti....‘.:j...:.OrdinanceNo2014-04EFFECTINGTHEEMPLOYMENTAGREEMENTFORTHEGENERALMANAGERWHEREAS,theBoardofDirectorsemploysaGeneralManagertomanagethedaybydayaffairsoftheDistrict;WHEREAS,theBoardofDirectorsexecutedanEmploymentAgreementwiththeGeneralManagerthatexpiresonJune30,2015;WHEREAS,theBoardofDirectorsissatisfiedwiththeGeneralManagersaccomplishmentsandsuccessfulperformanceduringthetermoftheexistingagreement;WHRAS,theBoardwishestoextendthetermoftheGeneralManagerEmploymentAgreementforaperiodoffiveyears,frcmJuly1,2015throughJiIy3’l,2Q20;SSWHEREAS,theBoardwishestoamendthetermsoftheGeneralManagerEmploymentAgreementasoutlinedinAmendmentNo.2;5SS•:S:S.::::THEREFORE,BEITENACTEDbytheBoardof-DirectorsoftheDistrictthateffectivethirtydaysfromS.thedateofpassageofthisordinancethefollowingactionsoccur::I.TheGeneralManager’sEmploymentAgreementtermshallbeJuly1,2015throughJuly312020S2.AmendmentNo.2oftheG.neralManagersEmploymentAgreementshallbeapproved..3.ThattheDistrictClerkisdirectedtopublishthisorciinanceinaccordancewiththelawsoftheStateofQalifornia,PASSEDANDADOPTEDbytheBoardofDirectorsoftheTruckeeDonnerPublicUtilityDistrictataregularmeetingthereofdulycalledandheldwithinsaidlistrictonthefourthdayofJune2014bythefollowingrollcallvote:AYES:DirectorsAguera,Ellis,HemigandLaltotisNOES:NoneABSENT:EirectorBenderABSTAIN:NoneTRUCKEEDQNNERPUBLICUTILITYtISTRlCTS.By7::_—-TonyLaliotis,PresidentoftheBoardATTEST:..---.MichaelD.HoNey,ClerkoftheBoard EXHIBITBTOHOLLEY-TDPUI)AGREEMENTGENERALRELEASEandADEARELEASEGENERALRELEASEANDADEARELEASEtGeneralRelease.InconsiderationoftheforegoingconsiderationdescribedintheAgreement,Mr.HOLLEY,forhimself,hisheirs,executors,assignsands.icçessors,fullyandforeverreleases,dischargesandcovenantsnottosueorotherwiseinstituteinanyway,activelyparticipateinorvoluntarilyassistintheparticipationofanylegaloradministrativeproceedingsagainstTDPUD,including,withoutlimitation,itspastandpresentBoard,Boardmembers,directors,departments,predecessors,subsidiaries,relatedentities,employees,managers,attorneys,agentsandassignswithrespecttoanymattêr.arisingoutof,connectedwithorrelatedinanywaytoMr.HOLLEY’semploymentwithanäretirementandseparationfrom.TDPUD,includinganyandallliabilities,claims,demands,contracts,debts,obligationsandcausesofactionofeverynature,kindanddescription,inlaw,equity,orotherwise,whetherornotnowknownorascertained,whichheretoforedoormayexist.2.Mr.HOLLEYunderstandsandexpresslyagreesthatthisAgreementextendstoallclaimsofeverynatureandkind,knownorunknown,suspectedorunsuspected,past,presentorfuture,arisingfromorattributabletoMr.HOLLEY’semploymentwithandretirementandseparationfrgmtheTDPUD.Mr.HOLLEYacknowledgesthatanyandallrightsgrantedtohimunderSection1542oftheCaliforniaCivilCodeoranyanalogousstateorfederallaworregulationisherebyexpresslywaived.Mr.HOLLEYrecognizesandacknowledgesthatfactorswhichhaveinducedhimtoenterintothisAgreementmightturnouttobeincorrectordifferentfrom1 EXHIBITBTOHOLLEY-TDPUDAGREEMENTGENERALRELEASEandADEARELEASEwhathehadpreviouslyanticipated,andMr.HOLLEYexpresslyassumesalloftherisksofthiswaiverofQafiforniaCivilCodeSection1542.SaidSection1542oftheCaliforniaCivilCode,readsasfollows:Ageneralreleasedoesnotextendtoclaimsthatthecreditororreleasingpartydoesnotknoworsuspecttoexistinhisorherfavoratthetimeofexecutingthereleaseandthat,ifknownbyhimorher,wouldhavemateriallyaffectedhisorhersettlementwiththedebtororreleasedparty.3NoAdmissionofLiability.Infurtherconsiderationoftheforegoing,Mr.HOLLEYagrees,acknowledgesandrecognizesthatthisAgreementisa“nofault”settlementofanypotentialclatms,thatnoclaimshavecurrentlybeenorwillbefiledandthatnothingcontainedinthisAgreementshallconstituteorbetreatedasanadmissionofliabilityorwrongdoingbytheTDPUD(includingitspastandpresentBoard,Boardmembers,directors,departments,predecessors,successors,subsidiaries,relatedentities,employees,managers,attorneys,agentsandassigns),whichliabilityorwrongdoingisexpresslydenied.;::4.SigningofDocumentation.Thepartiesagreetocooperatefullytoachieveabindingsettlementinthismatter,including,withoutlimitation,signinganydocumentationrequiredbyanyCourtoradministrativeagency.5.EffectofLawsuitorClaim.ShouldMr.HOLLEYinitiatealawsuitoradministrativeclaimseekingdamagesoranyotherreliefcoveredbytheAgreement,the2 EXHIBITBTOHOLLEY-TDPUDAGREEMENTGENERALRELEASEandADEARELEASETDPUDmayrescindthisAgreementandrecoveranyamountspaidpursuanttotheAgreement.6InvalidityofAnyTerm,ConditionorProvision.Intheeventthatanyterm,conditionorprovisionofthisAgreementshallbeheldbyacourtofcompetentjurisdictiontobeinvalidoragainstpublicpolicy,thatterm,conditionorprovisionshallbedeemedtobedeleted,andtheremainingterms,conditionsandprovisionsshallcontinueinfullforceandeffect7ValidityofAgreementunderCaliforniaLawThevalidity,interpretationandperformanceofthisAgreementshallbeconstri.eçiandinterpretedaccordingtothelawsoftheStateofCalifornia8.WarrantyandRepresentationtoMakeReleasesandAgreements.Mr.HOLLEYrepresentsandwarrantsthathehasfullpowertomakethereleasesandagreementscontainedherein.Mr.HOLLEYexpresslyrepresentsandwarrantsthathehasnotassigned,encumberedorinanymannertransferredalloranyportionoftheclaimscoveredbythereleases.andagreementscontainedherein.Mr.HOLLEYacknowledgesandagreesthatthiswarrantyandrepresentationisanessentialandmaterialtermoftheAgreement.9.ModificationstoAgreement.ThepartiesacknowledgethatthisAgreementconstitutesthesoleandentireagreementofthepartiesinthismatter,thatanymodificationsmayonlybeeffectedbyawritingsignedbyallaffectedparties,andthatthisGeneralReleaseandADEAReleasesupersedesanypriorwrittenororalagreementconcerningthesubjectmatterofitsprovisions.Thepartiesagreethatthere3 EXHIBITBTOHOLLEY-TDPUDAGREEMENTGENERALRELEASEandADEARELEASEarenorepresentations,agreements,arrangementsorunderstandings,eitherwrittenororal,betweenoramongthepartiesrelatingtothesubjectmatterofthisAgreementwhicharenotfullyexpressedherein.10.ADEARelease.TheAgreementconstitutesacomprehensive,generalreleaseofanyandallclaims(includingwithoutlimitationAgeDiscriminationinEmploymentAct(“ADEA”))againsttheTDPUD,itspastandpresentBoard,Boardmembers,directors,departments,predecessors,successors,subsidiaries,relatedentities,managers,agentsandassignsAssetforthintheADEA,29USCSection626(f)(1),MrHOLLEYherebyacknowledgesthefollowing(1)ThatthisADEAReleaseiswritterninamannercalculatedtobeunderstoodbyMrHOLLEYandthatMrHOLLEYinfactunderstandstheADEARelease;-...(2)ThatthisADEAReleasespecificallyreferstoandwaivesrightsorclaimsarisingundertheADEA;:(3)ThatthisADEAReleaseappliesonlytoclaimsarisinguptoandincludingthedatethatMrHOLLEYsignsthisADEARelease,(4)ThatinexchangeforthisADEARelease,Mr.HOLLEYreceivedvaluebeyondthattowhichheisalreadyentitled;(5)ThattheTDPUDhasadvisedMr.HOLLEYinwritingtoconsultwithanattorneybeforeexecutingthisADEARelease;and4 EXHIBITBTOHOLLEY-TDPUDAGREEMENTGENERALRELEASEandADEARELEASE(6)ThatMr.HOLLEYhasbeenprovidedwithanadequateperiodoftimetoreviewthisADEARelease.Mr.HOLLEYunderstandsandacknowledgesthathehasbeengivenatleast21daystoconsiderhisreleaseofclaimsundertheADEA,andinanyeventthatheexpresslywaivesthis21daynoticeprovision.Mr.HOLLEYacknowledgesthathehassevendaysfromthedateheexecutesthisGeneralReleaseandADEAReleasetorevokehisreleaseundertheADEA,provided,however,thatanysuchrevocationmustbecommunicatedinwritingtoStevenGross,Esq.,grossortersimon.comwithintheseven-dayrevocationperiodandfurther,ifMr.HOLLEYexerciseshisrighttorevokehisreleaseofADEAclaims,theTDPUD.mayinitssolediscretionrescindanypartoftheAgreement,andrecoverallconsiderationpaidthereunderIIParticipationinDraftingofAgreementEachpartyhashadtheopportunitytoparticipateindraftingtheAgreementAnyterms,conditionsorprovisionsoftheAgreementshallnotbeconstruedagainstonepartyandinfavorofanotherbyvirtueofwhoactuallydraftedorcirculatedtheAgreement12.ThepartiesagreetoexecutealldocumentsandperformallactsnecessarytoeffectuatethetermsandpurposesofthisAgreement.13.Thepartiesagreetoexecuteincounterparts,withthesameforceandeffectasifexecutedinasingle,completedocument.14Attorney’sFeesandVenue.TheprevailingpartyinanyactiontoenforceorinterpretthisAgreement,shallbeentitledtorecoveritsreasonablecosts,attorneys’.5 EXHIBITBTOHOLLEY-TDPUDAGREEMENTGENERALRELEASEandADEARELEASEfeesandexperts’feesincurredtherein.AnycourtactionshallonlybecommencedandmaintainedintheSuperiorCourtinandfortheCountyofNevada,StateofCalifornia.•15.ThepartiesacknowledgethattheyhavebeenrepresentedbycounselinthenegotiationandpreparationofthisAgreement,carefullyreviewedtheAgreementandknowwhatitcontainsandhaveenteredintothisAgreementvoluntarily,withoutçorcionandbasedontheirownjudgmentandnotinrelianceonanyrepresentationorpromisesmadebytheotherpartyotherthanthosecontainedherein...,16.Mr.HolleyassumesfullresponsibilitytostateandfederaltaxingauthoritiesforanytaxconsequencesarisingoutofpaymentsmadeorbenefitsprovidedtohimunderthisAgreement.17.Thepartiesagreethattheywillçtmakeanyfalseorotherwisedefamatorystatementsabouteachother.AstotheTDPUD,thisincludesitspastandpresentBoard,Boardmembers,directors,departments,predecessors,successors,subsidiaries,relatedentities,managersagentsandassignsThepartiesagreethatanybreachofthetermsandconditionssetforthinthissectionisamaterialbreachofthisAgreement,suchthattheotherpartywillbeirreparablyharmedasamatteroflawandwillbeentitledtopursueitslegalandequitableremedies,includingwithoutlimitationtherighttorecovermoneydamagesandseekinjunctiverelief,plusreasonableattorneys’fees,withoutlimitinganyotherremedyitmayhaveatlaworequity.18.Mr.HolleyacknowledgesthatbyreasonofhispositionwiththeTDPUD,hehashadaccesstotradesecrets,proprietaryinformationandconfidentialinformation6 EXHIBITBTOHOLLEY-TDPUDAGREEMENTGENERALRELEASEandADEARELEASEpertainingtotheTDPUDBoard,Boardmembers,directors,departments,predecessors,successors,subsidiaries,relatedentities,managers,agentsandassignsandtheTDPUD’scustomers,contractorsandvendors(collectively“ConfidentialInformation”).ForpurposesofthisAgreement,“ConfidentialInformation”includeswithoutlimitation,passwords,keysandothersecurityinformationwhichmayormaynotbeencrypted;personalinformationaboutpastandpresentelectedandappointedofficialandemployeesoftheTDPUD,suchasaddresses,telephonenumbers,emailaddresses;personnelfiles,evaluationandactionrelatedtopersonnetmatters,suchasapplicationsforemployment,hiring,promotions,separations,disciplinaryactions;requestsforandutilizationofleavesofabsences,healthandotherbenefits;personalhealthinformation(includinginformationsubjecttotheHealthInsurancePortabilityandAccountabilityAct(HIPAA));andinformationrelatedtopastandpresentnegotiationsandbargainingpositionsoftheTDPUDwiththeTDPUD’scontractors,vendorsandrepresentedandunrepresentedemployeesandtheirbargainingrepresentativesForpurposesofthisAgreement,:”ConfidentialInformation”doesnotincludeinformation:(I)thatisorbecomesgenerallyavailabletothepublicotherthanasaresultofdisclosurebyMr.HolleyoranypartytowhomMr.Holleyhasdisclosedsuchinformation,exceptforinformationthatisorbecomesgenerallyavailabletothepublicthroughdisclosurebyMr.HolleyoranypartytowhomMr.HolleyhasdisclosedsuchinformationinthecourseandscopeofMr.Holley’semploymentbytheDistrict;(ii)thatisobtainedbyMr.Holleyonanon-confidentialbasisfromathirdpartyentitledtodisclosesuchinformation.7 EXHIBITBTOHOLLEY-TDPUDAGREEMENTGENERALRELEASEandADEARELEASEa.Mr.Holleyrepresents,warrantsandpromisesthathehasreturnedtotheTDPUDalldocumentsandrecordscontainingConfidentialInformationoranyothertangibleConfidentialInformationinhispossession,custody,orcontrol,andhehasnotmadeorkeptanyhardorcomputerizedcopies,notes,abstracts,summaries,lists,tapesorotherrecordofanytypeofConfidentialInformation.ForpurposesofthisAgreement,theterm“document”meansanywritten,computerized,typewritten,printed,orrecordedmaterialwhatsoever,including,butnotlimitedto,notes,lists,memoranda,letters,reports,businessrecordspublications,datacompilations,andcomputerdiskettesandfilesb.Mr.Holleyrepresents,warrantsandpromiseshehasnotusedandwillnotuseforhisownbenefit,ordivulgetoany..otherperson,firm,corporation,orotherentity,anyoftheConfidentialInformationwhichhehasobtainedorlearnedasaresultofheremploymentrelationshipwiththeDistrict,exceptinthecourseandscopeofhisemploymentbytheTDPUD.c.Mr.Holleyacknowledgesandagrees(I)thatanyviolationofthisSectionwouldcauseimmediateirreparabledamagetotheTDPUDanditsBoard,Boardmembers,directors,departments,predecessors,successors,subsidiaries,relatedentities,managers,agentsandassignsand(ii)thatdeterminingtheamountofdamagecausedtotheTDPUDanditsBoard,Boardmembers,directors,departments,predecessors,successors,subsidiaries,relatedentities,managers,agentsandassignsbyanysuchviolationwouldbeextremelydifficultorimpossible.Mr.HolleythereforeagreesthattheTDPUDanditsBoard,Boardmembers,directors,departments,8 EXHIBITBTOHOLLEY-TDPUDAGREEMENTGENERALRELEASEandADEARELEASEpredecessors,successors,subsidiaries,relatedentities,managers,agentsandassignsremediesatlawareinadequate,andMr.Holleyconsentstotheissuanceofinjunctivereliefafterproperjudicialproceedings,including,butnotlimitedto,atemporaryrestrainingorder,apreliminaryinjunction,andapermanentinjunction,byacourtofappropriatejurisdictioninordertorestrainanyactualorthreatenedviolationofthisparagraphwithoutlimitinganyremedytheTDPUDanditsBoard,Boardmembers,directors,departments,predecessors,successors,subsidiaries,relatedentities,managers,agentsandassignsmayhaveatlaworinequity..DATED_____________________MichaelHolleyDATED:______________________TruckeeDonnerPublicUtilityDistrict(TDPUD)•APPROVEDASTOFORM:Dated:,2019By:_Dated:_,2019By:_321641L19