HomeMy WebLinkAbout9 GM Compensation Agenda Item # 9
DistrictPublic Utility
ACTION
To: Board of Directors
From: Michael D. Holley
Date: March 04, 2009
Subject: Adopt an Ordinance to Adjust the General Manager's Compensation
1. WHY THIS MATTER IS BEFORE THE BOARD
This matter involves adoption of an ordinance modifying the compensation of the
General Manager. Only the Board of Directors can adopt or modify a District
Ordinance.
2. HISTORY
The salary for the General Manager was set in the Employment Agreement with
Michael Holley dated December 31, 2007. The contract states that consideration shall
be given on an annual basis to increase compensation. District Code states that the
Board will annually appraise the General Manager's performance and set the
compensation level. The General Manger's performance evaluation was performed on
February 4, 2009.
The Board of Directors set parameters and appointed the Board President to
negotiate a compensation adjustment with the General Manager.
The Board President and the General Manager have negotiated a 4% salary increase
and 1% District contribution to the 457B Deferred Compensation Plan which is
consistent with the parameter set by the Board. These percentages equate to annual
salary of$188,100 and $1,881 457B contribution.
Law requires that the General Manager's compensation be set by an ordinance after a
public hearing.
3. NEW INFORMATION
Notice of the public hearing was advertised in the Sierra Sun and the hearing was held
earlier in this meeting.
The Board can now adopt an ordinance setting the General Manager's compensation.
A draft ordinance is attached.
4. FISCAL IMPACT
The General Manager's salary adjustment is included in the FY09 budget.
5. RECOMMENDATION
Approve the adjustment to the General Manager's compensation and authorize the
President of the Board to sign the ordinance.
Michael D. Holley
General Manager
.E DONNER
Public Utility District
Ordinance No. 2009 - xx
EFFECTING A COMPENSATION ADJUSTMENT 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 Employment Agreement with the General Manager on
December 31, 2007;
WHEREAS,the Employment Agreement states that consideration shall be given on an annual basis to
increase compensation; and
WHEREAS, the Board of Directors deems it appropriate for the General Manager to receive a
compensation adjustment;
NOW,THEREFORE, BE IT ENACTED by the Board of Directors of the District that effective thirty days
from the date of passage of this ordinance the following actions occur:
1. That the salary of the General Manager is set at$188,100 effective March 4, 2009
2. That the District shall contribute 1% of base salary to the General Manager's 457E Deferred
Compensation Plan
3. That the District Clerk is directed to publish this ordinance in accordance with the laws of the
State of California.
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at a
regular meeting thereof duly called and held within said District on the fourth day of March 2009 by the
following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
J. Ron Hemig, President of the Board
ATTEST:
Michael D. Holley, Clerk of the Board
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 March, 2009,
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 December 31, 2007 ("Agreement"); and
WHEREAS, the District's Board of Directors approved the terms and conditions
set for the in this Amendment No. 2 during its regular meeting on March 4, 2009.
NOW THEREFORE, the Employer and Employee agree as follows:
1. Section 3.A. of the Agreement is amended to read as follows:
Base Salary: Employer agrees to pay Employee an annual base salary of One
Hundred Eighty-eight Thousand One Hundred Dollars ($188,100), payable in
installments at the same time that other employees of the Employer are paid.
2. Add Section 7.C:
The District agrees to make an additional annual contribution of one-percent
(1%o) of base salary to the employee's 457B Plan.
3. Except as expressly stated herein, all other terms and conditions of the
agreement shall remain unchanged and in full force and effect.
Employer: Employee:
J. Ron Hemig Michael D. Holley
President of the Board
Truckee Donner Public Utility District