7.

CONSIDER AMENDMENT NO. 2 TO GENERAL MANAGER’S EMPLOYMENT AGREEMENT

Meeting Date:

From:

David C. Laredo,

Program/

Salaries & Wages

General Counsel

Line Item No.:

Account No. 7110

Reviewed By:

Rick Dickhaut

Cost Estimate:

$5,000 General Counsel Approval:Staff note was provided for review Committee Recommendation:The Administrative Committee reviewed this item on January 18, 2007 and recommended approval. CEQA Compliance: N/A SUMMARY: This matter enables the Board of Directors to adjust the General Manager’s compensation in accord with the terms and conditions of the existing employment agreement. The effect shall be the payment of a one-time compensation adjustment, in the amount of five thousand ($5,000) dollars, in lieu of increased salary.

RECOMMENDATION:  The Board should consider whether or not to approve Revised Amendment Number Two (attached hereto as Exhibit  7-A.).

BACKGROUND:  The District employs its General Manager pursuant to an Agreement for Employment (Agreement) entered into on June 21, 2004, as amended by Amendment Number One effective June 30, 2006.  The Agreement and Amendment Number One set forth terms and conditions for employment, with an expiration date of June 30, 2008.  No later than February 28, 2008, renewal of that Agreement is to be discussed; the Board is required to decide on renewal within 30 days thereafter.  This matter shall not modify those dates.

The terms of the Agreement and Amendment Number One call for the Board to review the General Manager’s 12-month performance effective July 1, 2006 and to determine thereon whether the General Manager shall receive an increased salary or one-time compensation adjustment, or combination of both, in an amount determined by the Board.  This matter implements that decision, effective July 1, 2006 by adoption of Revised Amendment Number Two.  Revised Amendment Number Two incorporates by reference the original Agreement for Employment and Amendment Number One.  Based upon the determination that the General Manager met or exceeded established objectives and expectations during the 12-month performance evaluation ending June 30, 2006, Revised Amendment Number Two effects a one-time compensation adjustment for the General Manager, in lieu of increased salary, in the amount of five thousand (\$5,000) dollars.

Effective July 1, 2007, the Board shall again review the General Manager’s 12-month performance evaluation for the period ending June 30, 2007.  At that time, the Board shall determine the extent to which the General Manager has met or exceeded established objectives and expectations, and shall determine whether he shall receive an increased salary or one-time compensation adjustment, or combination of both, in an amount to be then determined by the Board of Directors.

EXHIBITS

7-A      Revised Amendment Number Two Agreement for Employment of General Manager

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