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3140 Del Webb Avenue NE <br />Salem, OR 97303-4165 <br />503-588-2424 Fax 588-0209 <br />E-mail: che~riots.org <br />December 2, 1997 <br />~i~1.P•Yi~LO~ <br />MEMORANDUM <br />T`O: Board of Directors <br />F Ma Lorensen~F~a~ Resources Mana er <br />ROM. ry , 9 <br />SUBJECT: InfoRnation Regarcling Performance Based Merit Pay Awards <br />Due to the ailegations which have been recently raised, I took the liberly of having <br />our legal counsel, Akin Blitz, formally respond to the issue of whether or not <br />perFormance based merit pay awards are prohibited under ORS 267.130. This <br />statute reads as follows: <br />Additional compensation prohibited. No officer or employee of the <br />district shall offer, solicit or accept money or any other thing of value as a <br />consideration, in addition to the salary paid the officer or employee by the <br />district, for service performed within the scope of the official duties of the <br />officer or employee. <br />Our legal counsel concluded that the merit payment to R.G. in lieu of COLA was . <br />lawful. See his attached opinion. <br />Attachment <br />47 <br />