Staff Report – Item 6
To: The Governing Board
From: Inder Khalsa, Assistant General Counsel
Item 6: Amendment No. 2 to the Employment Agreement for Executive Director Date: 1/19/2023
RECOMMENDATION
Adopt Resolution Approving Amendment No. 2 to the Employment Agreement for Executive Director between Pioneer Community Energy (“Pioneer”) and Don Eckert.
BACKGROUND
Pioneer and Don Eckert executed an Employment Agreement on July 13, 2020. Pursuant to Section 5 and Section 7 of the Employment Agreement, a performance evaluation and compensation review is to be conducted on at least an annual basis. The performance evaluation and compensation review commenced in December. The Board of Directors met with the designated negotiator, Chair Dowdin-Calvillo, following the performance evaluation to provide direction on a compensation increase.
ANALYSIS & DISCUSSION
Amendment No. 2 to the Employment Agreement for Executive Director proposes the following changes:
1. Increases the Executive Director salary from $292,187.50 to $315,562.50 per year, retroactive to December 15, 2022, when the performance evaluation and compensation review commenced.
STRATEGIC PLAN
Strategic Priority 3: Employer of Choice
FISCAL IMPACT
Adequate budget appropriations exist in the budget to fund the increased salary of $23,375.
ATTACHMENTS
1. Resolution Approving Amendment No. 2 to the Employment Agreement for Executive Director
10NEER
COMMUNITY ENERGY
Before the Governing Board of
Pioneer Community Energy
In the matter of: Resolution Approving
Amendment No. 2 to the Employment
Agreement for Executive Director
Resolution No.:
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held January 19, 2023, by the following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
Chair of the Governing Board
Attest:
Secretary
WHEREAS, on July 13, 2020, Pioneer Community Energy and Donald Eckert entered into an Employment Agreement for Executive Director; and
WHEREAS, the parties desire to amend the Employment Agreement to provide for an increase in the Executive Director salary effective on December 15, 2022.
BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:
1. The above recitals are true and correct.
2. The Governing Board hereby approves Amendment No. 2 to the Employment Agreement for Executive Director, as attached to this Resolution as Exhibit A.
3. This Resolution shall take effect immediately upon its adoption.
Exhibit A: Amendment No. 2 to Employment Agreement for Executive Director AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT FOR
EXECUTIVE DIRECTOR
The Employment Agreement, dated May 28, 2020, between Pioneer Community Energy (Pioneer) and Donald Eckert, an individual, (Employee), as amended by Amendment No. 1 dated November 18, 2021, is now amended by this Amendment No. 2, dated January 19, 2023.
A. Pioneer and Employee entered into an Employment Agreement (Agreement), as identified above, providing for the employment of Employee as Executive Director of Pioneer, commencing on July 13, 2020. The Agreement was amended by Amendment No. 1 on November 18, 2021.
B. The parties desire to amend the Agreement with this Amendment No. 2 to provide for a 3% cost of living adjustment (COLA) effective July 4, 2022, to provide for a 5% merit increase effective December 15, 2022, to remove the provision allowing COLA increases as approved for all employees, to increase Pioneer’s annual contribution to Employee’s deferred compensation plan to $22,500.
NOW, THEREFORE, the parties desire to amend the Agreement as follows:
1. Section 5, titled “SALARY,” is amended to read as follows:
“SALARY.
Pioneer agrees to pay Employee a salary of $316,000 per year effective on December 15, 2022, the date the Board commenced the public employee performance evaluation. This amount includes a 3% COLA increase as approved for all employees effective July 4, 2022, and a 5% merit increase effective December 15, 2022. For the 2022 year, Pioneer will pay to Employee $3,978.25, representing the retroactive 3% COLA increase from July 4, 2022 to December 15, 2022.
Annual salary adjustments will be based on Employee's performance evaluations and achievement of goals and objectives agreed upon with the Pioneer Board as described below. Salary is payable in accordance with Pioneer's standard payroll schedule (biweekly).
The applicable law and Pioneer policies, ordinances and resolutions relevant to managers and division directors, will control on all elements of payment and accrual of compensation, and as they may be amended from time to time.”
2. Section 6, titled “SUPPLEMENTAL BENEFITS,” is amended by amending the “Retirement Plan” subsection to read as follows:
“Retirement Plan. Pioneer provides a qualified 401a deferred compensation plan and a 457b deferred compensation plan. In 2023, the annual contribution by Pioneer will be $22,500. The annual contribution will escalate consistent with increases allowed by IRS Code. -2-
Contributions shall be made on each pay-day. Employee may at his election make contributions to a 457b plan up to the IRS limit. Employee’s retirement benefit will be the maximum annual amount allowed by the IRS Code for a 457b plan (not including any catch-up provision amounts), contributed by Pioneer into a 401a plan.
All actions taken by Pioneer relating to benefits for management employees in general shall be considered actions granting the same benefits to or imposing the same restrictions on Employee”
IN WITNESS WHEREOF, the parties have executed this Amendment No. 2.
Employee
____________________________
Pioneer Community Energy
________________________________
Chair, Board of Directors
DATE: __________________________
ATTEST:
____________________________
Board Clerk
Don Eckert
DATE: _____________________
APPROVED AS TO FORM:
____________________________
Inder Khalsa
General Counsel