Title
Authorize the Chair of the Monterey County Board of Supervisors to execute Amendment No. 1 to the Employment Agreement for the Chief Executive Officer, Harry Weis to raise the base salary by 3.5% to $377,775, for a total maximum annual contract amount of $491,108 (including potential 30% incentive bonus if awarded); of which the employee will contribute 7% to CalPERS.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
A. Authorize the Chair of the Monterey County Board of Supervisors to execute Amendment No. 1 to the Employment Agreement for the Chief Executive Officer, Harry Weis to raise the base salary by 3.5% to $377,775, for a total maximum annual contract amount of $491,108 (including potential 30% incentive bonus if awarded); of which the employee will contribute 7% to CalPERS.
SUMMARY/DISCUSSION:
On or about March 31, 2009 the Board of Supervisors approved and authorized the Board Chair to sign an employment agreement with a new Natividad Medical Center (NMC), Chief Executive Officer (CEO). On March 31, 2009, Supervisor Louis R. Calcagno, of the Monterey County Board of Supervisors, signed an employment agreement for CEO Harry Weis for a salary of $365,000, plus a potential bonus of $109,500, for a total value of $474,500. The employment contract was also reviewed and approved as to form and legality by the Office of County Counsel. The term of employment began May 1, 2009. The contract states that the agreement may be renewed from time to time, if the parties mutually agree to do so, until terminated pursuant to the agreement.
In October 2013, the County began the process for all employees to pay the full 7% PERS employee retirement contribution and it was mostly completed in November. County executives, including those at NMC, were requested to implement the same employee contribution to PERS as all other employees. Countywide, the process includes a 3.5% wage increase and corresponding payroll deduction of the 7% employee contribution to CalPERS. At this time, NMC requests that the Monterey County Board of Supervisors authorize the Chair of the Board to execute Amendment No. 1 to the employment agreement for CEO Harry Weis raising the base salary by 3.5% to $377,775, plus a potential bonus of $113,333, for a total value of $491,108, which was included in the Fiscal Year 2014 budget. CEO Harry Weis agrees to contribute the full 7% employee contribution to CalPERS, as do other "Y" unit employees. This Amendment No. 1 was recently approved as to legality and form by the Office of County Counsel. The original Agreement is attached as Exhibit A.
The NMC CEO and the NMC HR Administrator understand that all future amendments to the CEO's employment agreement will be brought before the Board of Supervisors for approval.
OTHER AGENCY INVOLVEMENT:
The Office of County Counsel reviewed and approved as to legality and form the Employment Agreement in 2009 and recently approved Amendment No. 1.
FINANCING:
The cost of the original CEO Employment Agreement was included in the Fiscal Year 2009 budget and all budget years to date. The cost of this agreement is $365,000 plus a potential bonus of $109,500, for a total value of $474,500. The new base salary pursuant to Amendment No. 1 is $377,775 plus a potential bonus of $113,333, for a total value of $491,108, which was included in the Fiscal Year 2014 budget. Natividad Medical Center is experiencing a small loss in the current FY year to date and if this continues it could have an impact on the General Fund.
________________________________________
Janine Bouyea
NMC Human Resources Administrator
Prepared by: AKB/akb
(831) 755-5363
Title: Deputy County Counsel
Date: April 25, 2014
Attachments: Employment Agreement & Amendment 1 for CEO Harry Weis; and Resolution.
Attachments are not on file with the Clerk of the Board