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Business Affairs and Human Resources June 20, 2019

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Business Affairs and Human Resources June 20, 2019 BUSINESS AFFAIRS AND HUMAN RESOURCES JUNE 20, 2019 TAB DESCRIPTION ACTION 1 CHIEF EXECUTIVE OFFICER COMPENSATION Motion to approve BOISE STATE UNIVERSITY 2 Multi-Year Employment Agreement – Head Women’s Motion to approve Basketball Coach IDAHO STATE UNIVERSITY 3 Multi-Year Employment Agreement – Head Men’s Motion to approve Basketball Coach BAHR – SECTION I i BUSINESS AFFAIRS AND HUMAN RESOURCES JUNE 20, 2019 SUBJECT Chief Executive Officer Salaries REFERENCE June 2018 The Idaho State Board of Education (Board) approved Chief Executive Officer salaries. APPLICABLE STATUTES, RULE OR POLICY Idaho State Board of Education Governing Policies & Procedures, Section I.E.2.d. and e. Idaho Code §33-102A ALIGNMENT WITH STRATEGIC PLAN Chief Executive Officer salary adjustments are a non-strategic Board governance agenda item. BACKGROUND/DISCUSSION Per a March 22, 2019 guidance memo from the Division of Financial Management (DFM) and Division of Human Resources, “[p]ay increases for [agency] directors will be determined by the Governor. For those reporting to a Board or Commission, the governing board shall make a recommendation in a letter to the Governor for his review by May 6, 2019.” Idaho Code §33-102A provides that [t]he state board of education is hereby authorized to appoint an executive officer of the state board who … shall receive such salary as fixed by the state board.” The Board’s recommended salary change for its Executive Director was sent to DFM on April 23, 2019. Pursuant to Board Policy I.E.2.d., the administrator of the Division of Career Technical Education, the administrator of the Division of Vocational Rehabilitation, and the general manager of Idaho Public Television “are evaluated by the Executive Director annually, who makes recommendations to the Board with respect to compensation and employment.” The Board’s Executive Director has completed annual performance evaluations for these agency heads and transmitted salary recommendations to DFM on or before May 2, 2019. The Executive Director’s salary recommendations for these positions were based on the evaluations and the individual agencies’ DFM-approved compensation plans for FY2020. On June 4, 2019, the Governor’s Office notified all directors and agency heads that they will receive a 3% ongoing salary increase. Agency heads’ salaries are entered into the state payroll system based on the equivalent hourly amount. The Board’s consideration of salary changes at this time will allow for any approved changes to be entered into the state payroll system prior to the start of the payroll fiscal year. BAHR – SECTION I TAB 1 Page 1 BUSINESS AFFAIRS AND HUMAN RESOURCES JUNE 20, 2019 IMPACT Approval of the proposed salaries will allow staff to enter the salaries for FY2020 into the state payroll system. ATTACHMENTS Attachment 1 - Governor’s Memo to Agency Directors on CEC Attachment 2 – First Amendment to Contract - LCSC President Pemberton Attachment 3 – Second Amendment to Contract - ISU President Satterlee STAFF COMMENTS AND RECOMMENDATIONS Staff recommends approval of the hourly rates and equivalent salaries listed below. BOARD ACTION I move to approve an hourly rate of $76.57 (annual salary of $159,266) for Matt Freeman as Executive Director of the State Board of Education, effective June 16, 2019. Moved by __________ Seconded by __________ Carried Yes _____ No _____ AND I move to approve an hourly rate of $55.80 (annual salary of $116,064) for Jane Donnellan as Administrator of the Division of Vocational Rehabilitation, effective June 16, 2019. Moved by __________ Seconded by __________ Carried Yes _____ No _____ AND I move to approve an hourly rate of $56.06 (annual salary of $116,605) for Ron Pisaneschi as General Manager of Idaho Public Television, effective June 16, 2019. Moved by __________ Seconded by __________ Carried Yes _____ No _____ AND I move to approve an hourly rate of $59.38 (annual salary of $123,510) for Dwight Johnson as Administrator of the Division of Career Technical Education, effective June 16, 2019. Moved by __________ Seconded by __________ Carried Yes _____ No _____ BAHR – SECTION I TAB 1 Page 2 BUSINESS AFFAIRS AND HUMAN RESOURCES JUNE 20, 2019 AND I move to approve the first amendment to Cynthia Pemberton’s contract as President of Lewis-Clark State College to set the annual salary at $240,000, effective July 1, 2019. Moved by __________ Seconded by __________ Carried Yes _____ No _____ AND I move to approve the second amendment to Kevin Satterlee’s contract as President of Idaho State University to set the annual salary at $400,000, effective June 16, 2019. Moved by __________ Seconded by __________ Carried Yes _____ No _____ BAHR – SECTION I TAB 1 Page 3 ATTACHMENT 1 June 4, 2019 Dear Directors and Agency Heads, Governor Little's FY20 budget recommendation included a 3-percent Change in Employee Compensation (CEC) for permanent state employees. The Legislature appropriated funding for a 3-percent CEC with instructions that a portion of that amount be used to provide no less than $550 per year increase for permanent state employees. The purpose of this memo is to inform you that all Directors and Agency Heads will receive a 3- percent ongoing salary increase, which encompasses a $550 per year increase, effective July 1, 2019. Please work with DHR and DFM to finalize the increase. Next year, we will request the agencies that have been asked to fill out the Governor's objectives and key results to include their agency's key results when submitting CEC recommendations. Please let your policy contact in the Governor's Office know if you have questions. Thank you for your leadership in helping Governor Little carry out his vision of making Idaho the place where our children and grandchildren choose to stay. Zach Hauge Chief of Staff BAHR - SECTION I TAB 1 Page 1 ATTACHMENT 2 First Amendment to the Employment Agreement for President Lewis-Clark State College This First Amendment to the Employment Agreement for President Lewis-Clark State College (“First Amendment”) is made between the Idaho State Board of Education, as the Board of Trustees of Lewis-Clark State College ("Board"), and Dr. Cynthia Lee A. Pemberton ("President") and is effective July 1, 2019. 1. The Employment Agreement has an effective date of April 5, 2018. 2. All terms of the Employment Agreement remain unchanged with the exception of Paragraph 4. Paragraph 4.a. is hereby deleted and replaced with the following: 4. Salary a. For all services rendered under this Agreement, the President’s annual salary of two hundred and twenty-five thousand dollars ($225,000) shall be increased by a three percent (3%) change in employee compensation (CEC) equal to $6,750 plus an equity adjustment in the amount of $8,250, for a total base compensation of two hundred and forty thousand dollars ($240,000) payable solely from Institutional funds. IN WITNESS WHEREOF, Debbie Critchfield, President of the Board, and Dr. Cynthia Lee A. Pemberton, President of Lewis-Clark State College, have executed this First Amendment. Dr. Debbie Critchfield, President Dr. Cynthia Lee A. Pemberton, President Idaho State Board of Education Lewis-Clark State College Date Date BAHR - SECTION I TAB 1 Page 1 ATTACHMENT 3 Second Amendment to the Employment Agreement for President Idaho State University This Second Amendment to the Employment Agreement for President Idaho State University (“Second Amendment”) is made between the Idaho State Board of Education, as the Board of Trustees of Idaho State University ("Board"), and Kevin Satterlee ("President") and is effective June 16, 2019 (“Effective Date”). 1. The Employment Agreement has an effective date of May 4, 2018 and was amended by a First Amendment to the Employee Agreement, effective October 18, 2018 (“First Amendment”). 2. The Employment Agreement and the First Amendment are collectively referred to herein as the “Agreement.” 3. All terms of the Agreement remain unchanged with the exception of Paragraph 4. Paragraph 4.a. is hereby deleted and replaced with the following: 4. Salary a. For all services rendered under this Agreement, the President’s annual salary of three $370,000 shall be increased by a three percent (3%) change in employee compensation (CEC) equal to $11,100 plus an equity adjustment in the amount of $18,900 for a total base compensation of four hundred thousand dollars ($400,000) payable solely from Institutional funds. IN WITNESS WHEREOF, Debbie Critchfield, President of the Board, and Kevin Satterlee, President of Idaho State University, have executed this Second Amendment. Debbie Critchfield, President Kevin Satterlee, President Idaho State Board of Education Idaho State University Date Date BAHR - SECTION I TAB 1 Page 1 BUSINESS AFFAIRS AND HUMAN RESOURCES JUNE 20, 2019 BOISE STATE UNIVERSITY SUBJECT New Multi-year contract for Gordon Presnell, Head Women’s Basketball Coach REFERENCE February 2011 The Idaho State Board of Education (Board) approved a two-year employment agreement with Head Women’s Basketball Coach Gordon Presnell. December 2014 The Board approved a five-year employment agreement with Coach Presnell. August 2016 The Board approved a new three-year employment agreement with Coach Presnell. August 2017 The Board approved a new five-year rolling employment agreement with Coach Presnell. December 2018 The Board approved an amendment to the 2017 employment agreement with Coach Presnell regarding incentive pay. APPLICABLE STATUTE, RULE, OR POLICY Idaho State Board of Education Governing Policies & Procedures, Section II.H. ALIGNMENT WITH STRATEGIC PLAN Multi-year coach contracts are a non-strategic, Board governance agenda item. BACKGROUND/DISCUSSION Boise State University (BSU) is seeking to renew and extend a contract for its Head Women’s Basketball Coach, Gordon Presnell. In August 2017, the Board approved a four (4) year and seven (7) month employment extension contract with Coach Presnell, terminating March 31, 2022.
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