TO: AC Transit Board of Directors
FROM: Diane Shaw, President of the Board of Directors
SUBJECT: General Manager/Chief Executive Officer’s Employment Agreement
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider approving and authorizing the Board President to sign an Employment Agreement with the newly-appointed General Manager/Chief Executive Officer.
Staff Contact:
Linda A. Nemeroff, Board Administrative Officer/District Secretary
Body
STRATEGIC IMPORTANCE:
Goal - High-Performing Workforce
Initiative - Employee Recruitment, Training and Retention
Having a knowledgeable and capable General Manager/Chief Executive Officer to lead the District is essential for ensuring efficient operations, strategic planning, and financial sustainability within a transit agency. They also help foster positive relationships with stakeholders, drive innovation, and maintain regulatory compliance, ultimately improving service quality and customer satisfaction.
BUDGETARY/FISCAL IMPACT:
Negotiated compensation and benefits pursuant to the attached agreement. Funding for the position is included in the FY 2024-25 Operating Budget for the General Manager’s Office.
BACKGROUND/RATIONALE:
In January of this year, the Board retained the services of an executive search firm to assist in filling a Board Officer vacancy for the position of General Manager/Chief Executive Officer. After an extensive recruitment and interview process, the Board selected a top candidate and its negotiating team consisting of James Ross with Renne Public Law Group and Gregg Moser of K&A began negotiations.
On April 30, 2025, the Board reported out an action taken in closed session to appoint Chief Operating Officer Salvador Llamas as the District’s new General Manager/Chief Executive Officer effective May 15, 2025. The parties have reached agreement on the terms of employment which are set forth in the attached agreement. Under the Brown Act, prior to taking final action, the Board must orally report a summary of the compensation paid in the form of fringe benefits to a local agency executive, as defined in subdivision (d) of Section 3511.1, during an open meeting at which final action is to be taken. In addition, action must be taken at a regular meeting and cannot be on the consent calendar.
ADVANTAGES/DISADVANTAGES:
This report does not recommend a course of action with notable advantages/disadvantages.
ALTERNATIVES ANALYSIS:
There are no practical alternatives to the course of action outlined in this report as the Board considered alternatives during the recruitment and selection process.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Board Policy 160 - Board Officers: Employment Agreements, Performance Evaluations, and Leave Notification
ATTACHMENTS:
1. General Manager/Chief Executive Officer’s Employment Agreement
Prepared by:
Linda A. Nemeroff, Board Administrative Officer/District Secretary
Approved/Reviewed by:
Linda A. Nemeroff, Board Administrative Officer/District Secretary
James Ross, Renne Public Law Group (Agreement only)