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BOARD MEETING DATE: March 12, 1999 AGENDA NO. 6

PROPOSAL:

Approve Compensation Package for Designated Deputy

SYNOPSIS:

The Executive Officer has appointed Mohsen Nazemi as Assistant Deputy Executive Officer of Engineering & Compliance. This action is to approve the compensation package.

COMMITTEE:

None.

RECOMMENDED ACTION:

Approve the compensation packages for Mohsen Nazemi, as set forth below.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 1987, the District established an at-will form of employment whereby senior management employees serve at the pleasure of the Executive Officer under an Executive Management Agreement. As a part of the reorganization, I have asked Carol Coy to serve as Deputy Executive Officer for Engineering & Compliance and have selected Mohsen Nazemi for Assistant Deputy Executive Officer for Engineering & Compliance.

Mr. Nazemi is an accomplished professional who is very well-qualified for this position. He holds a Bachelor of Science and Master of Science degree in Chemical Engineering from California State University/Long Beach and University of California/Los Angeles. He is a California registered professional engineer as well as a certified Hazardous Materials Manager. After a year in the private sector working as a chemical engineer, Mr. Nazemi joined the District's Engineering Division in 1978. Over the past twenty years he has held progressively responsible engineering positions. He has served as a Senior Engineering Manager since 1990, focusing on numerous permitting and policy development assignments. As a Senior Manager he made significant contributions to a broad range of key air quality programs, such as:

• AQMD liaison in 1990-91 on state and federal permitting issues, including NSR, Titles I, II and V, and others;
• Manager of the ROG/VOC RECLAIM Enforcement Protocol and Manufacturer's Bubble rule development team (1991);
• Manager of the Toxics and Global Climate Change Strategies team (1992-93);
• Manager of the Refinery, Energy, and OCS team responsible for rule development, permitting, and compliance issues involving these industries (1994-98); and most recently
• Permit Streamlining Ombudsman and Senior Manager for Economic Development and Business Retention.

In addition to his noteworthy contributions to many of AQMD's programs, Mohsen has served on a number of interagency and academic committees and task forces. He currently is Chair of the statewide CAPCOA Engineering Managers Committee. He also has, since 1981, been an instructor in the University of California/Irvine certification program in Air Quality, Hazardous Materials Management, and Site Remediation. Among his many accomplishments, Mr. Nazemi was recognized as AQMD's Manager of the Year in 1995.

Proposal

The Executive Officer proposes to enter into an Executive Management Agreement with Mr. Nazemi for the position of Assistant Deputy Executive Officer, at an annual salary of $102,090, effective the first pay period following Board action, for a term ending July 31, 2002.

Fiscal Impacts

Sufficient funds for salaries and benefits are allocated in each year's budget. The proposed salary for Mr. Nazemi is consistent with the recommendations of a recent review of management salaries. In addition, adjustments to the designated deputy salary structure will be proposed as part of the FY 1999-00 budget. This will be to maintain salary equity within the designated deputy group by reflecting changes in responsibility under the recently revised organizational structure and salaries outside AQMD.

Attachments
Proposed Executive Management Agreement

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I. TERM OF AGREEMENT

1. District employs Designated Deputy, for the position of for the term approximately of three years, commencing , 19 and terminating .

2. Designated Deputy shall initially receive a base salary of $ and shall receive a percentage increase equivalent to the percentage increase for management class employees as approved by the Board. If the Board grants management employees more than one pay increase within a 12-month period, "equivalent to the percentage increase for management class employees" shall mean the same percentage increase granted the same number of pay periods apart as given to management employees. Designated Deputy shall be subject to the same furlough provisions under Salary Resolution Section 27d as management employees who are not designated deputies. The term "base salary" shall not include any benefits that the Designated Deputy shall receive under the terms of this agreement. In addition, the District shall provide a pay for performance plan. This plan would encompass performance expectations and a performance payment up to 12% for above-standard to outstanding performance as recommended by the Executive Officer with approval of the District Board. Said annual salary shall be less federal and state taxes which are also applicable to other employees of the District and shall be payable every two weeks commencing on the first applicable payday following Board approval of this Agreement.

3. Designated Deputy shall participate in the San Bernardino County Employees' Retirement Association. District shall contribute the same percentage of Designated Deputy's base salary on behalf of Designated Deputy to the San Bernardino County Employees' Retirement Association as it contributes for management employees. The District's obligation to contribute for Designated Deputy's retirement shall be for the term of this Agreement unless Agreement is terminated by either party.

4. The receipt of benefits customarily given to regular employees does not create a property interest for Designated Deputy in his/her job. Designated Deputy shall be entitled to receive the following additional fringe benefits for the term of this Agreement based upon the conditions as set forth below. In no event shall the District's liability exceed the actual cost to the District of the benefits described herein.

1. Health Insurance. Designated Deputy may choose to participate in any health insurance plan offered by the District and is subject to all of the terms and conditions of the insurance contract with the provider chosen. Designated Deputy may choose "family" coverage and District agrees to pay a maximum monthly contribution sufficient to permit Designated Deputy to have "family" coverage, without necessitating employee contribution, in accordance with prevailing District policy for management employees.

2. Dental and Vision Care Insurance. Designated Deputy may choose to participate in any dental and/or vision care plan offered by the District and is subject to all of the terms and conditions of the insurance contract with the provider chosen. During the term of this Agreement the District agrees to pay the premium costs for the dental and/or vision care plans chosen in accordance with prevailing District policy for management employees.

3. Life Insurance. Designated Deputy is covered by two (2) life insurance policies: (1) A $5,000 life insurance policy; and (2) a $50,000 combination life insurance and dismemberment policy. The District agrees to pay the premium costs for these plans during the term of this Agreement. In addition, the Designated Deputy shall receive $245,000 worth of life insurance of the Designated Deputy's choice, provided the Designated Deputy passes any requirements so stated by the insurance company. The premium to be paid by the District for the additional life insurance shall not exceed $250 per month. In the event the Designated Deputy elects a life insurance program which may be portable, such policy or policies will be deemed portable to the Designated Deputy upon termination or retirement from District service.

4. Flexible Benefit Plan. Designated Deputy is eligible to participate in the District's Flexible Benefit Plan which provides IRS-approved select supplemental benefits and options and core medical, vision, and dental plan benefits. During the term of this Agreement the District shall fund a total contribution equal to that provided to other management participants.

5. Short-term and Long-term Disability Insurance. Designated Deputy is covered by a short-term disability plan during the term of this Agreement which is self-funded by the District provided that he/she has served at least one year as a management employee. This plan provides Designated Deputy with up to twelve months of full salary in the event of a non-work-related illness or injury. Prior to being eligible for full pay under this plan, Designated Deputy must use all of his/her accrued sick leave, vacation, compensatory time, and other leave time. In addition to this short-term disability plan, Designated Deputy may also apply for State Disability Insurance (SDI) benefits. SDI must be integrated with the short-term disability benefits. Designated Deputy shall be covered at no cost to himself/herself by the same long-term disability policy as that which covers management employees.

6. Sick Leave. Designated Deputy shall accrue sick leave at the same rate as the management class of employees during the term of this Agreement and this sick leave shall accrue until this Agreement is terminated. Any District sick leave accrued as of the date of execution of this Agreement shall be carried forward under this Agreement. Upon leaving the service of the District for any reason, the Designated Deputy shall receive payment of 50% of all hours based upon his/her hourly rate up to a maximum of 720 hours.

7. Holidays. Designated Deputy shall receive twelve paid holidays per year during the term of this Agreement. Designated Deputy shall be paid ten hours per holiday, unless Designated Deputy is not participatory in the 4/10 Program, in which case Designated Deputy shall be paid eight hours per holiday. Two of these holidays shall be considered floating holidays where ten (or eight, as the case may be) hours may be used in lieu of celebrating Admission Day or Lincoln's Birthday. Designated Deputy shall be subject to the same usage and expiration rules for floating holidays as management employees. The other ten paid holidays are:
   
   

   Independence Day	Christmas
   Labor Day	New Year's Day
   Veteran's Day	Martin Luther King's Birthday
   Thanksgiving	Washington's Birthday
   Day after Thanksgiving	Memorial Day

8. Vacation. Designated Deputy shall be entitled to 182 hours of paid vacation per year during the term of this Agreement. Designated Deputy shall be subject to the same vacation sell-back and carryover provisions as other management employees (pursuant to the District's Salary Resolution).

9. Jury Duty or Witness Leave. If Designated Deputy is required to be absent for jury duty, the District will pay Designated Deputy the difference between any fees received for jury duty and Designated Deputy's full salary for the same period of time as the District pays management employees. If Designated Deputy is required to be absent to be a witness for which he/she has been subpoenaed to appear as a witness, which subpoena was properly issued by a court legally empowered to issue such subpoena, the District will pay Designated Deputy the difference between any fees received for appearing as a witness and Designated Deputy's full salary.

10. Bereavement Leave. Designated Deputy is entitled to three working days per occasion during the term of this Agreement, upon the death of his/her father, mother, stepfather, stepmother, father-in-law, mother-in-law, sister, brother, spouse, child or stepchild, grandmother, grandfather, or grandchild.

11. Other

1. Tuition Reimbursement. Designated Deputy is eligible to receive reimbursement for attending courses which are related to Designated Deputy's career development and are of benefit to the District. The Appointing Authority shall be the sole judge of whether or not a course is eligible for reimbursement. This reimbursement will be in accordance with prevailing District policy for management employees.
2. Mileage Reimbursement. Designated Deputy shall be entitled to be reimbursed for use of his/her private automobile when used for District business after presenting a claim for such use for District business. The rate of reimbursement shall be in accordance with prevailing District policy for management employees.
3. Military Leave. If Designated Deputy is required to serve in the military, he/she shall be paid in accordance with California Military and Veterans' Code Section 395 et seq.
4. Deferred Compensation. On a voluntary basis, Designated Deputy is eligible to participate in the District's deferred compensation plan. Designated Deputy may exercise a right to increase his/her deferred compensation deduction as set forth in the Executive Management Agreement if the Designated Deputy does so in accordance with the rules of the administrator of the deferred compensation plan to take effect on an allowable pay period pursuant to said rules. (This might result in the Designated Deputy maximizing the employer contribution match for the calendar year.) During the term of this Agreement, the District shall fund a contribution equal to three times the Designated Deputy's contribution to a combined maximum permitted by law. Designated Deputy may defer a minimum of $10 per biweekly pay period up to the maximum permitted by this contract and the law per calendar year. Designated Deputy can also defer up to $15,000 per year during the last three calendar years of plan participation prior to retirement from District service, provided Designated Deputy has not deferred the maximum allowed from the date he or she became eligible for participation in the plan (catch-up provision).
5. Memberships and Licenses. Designated Deputy shall be reimbursed for the cost of professional memberships and licenses to a maximum of $300 per fiscal year during the term of this Agreement. In lieu of this $300 reimbursement, Designated Deputies functioning as attorneys shall be entitled to reimbursement of required annual bar dues in accordance with the District policy for non-Designated Deputy attorneys.
6. Personal Time. Customarily, overtime is inherent in an executive manager's position. Designated Deputy will be accorded reasonable flexibility in absenting himself/herself from the office for brief intervals, not to exceed one-half the Deputy's assigned work day per occasion, if personal reasons so require. There may be some circumstances when the accumulation and use of compensatory time is allowable. This will be utilized in accordance with prevailing District policy for management employees.
7. Physical Examinations. The District will contribute a maximum of $300 toward the cost of an annual physical examination for Designated Deputy. Designated Deputy may elect to carry over this entire benefit for one year and be eligible for a maximum of $600 for one biennial physical examination, or carry over this entire benefit for two years and be eligible for a maximum of $900 for one triennial physical examination. Designated Deputy may choose one of the following options:

1. Physical exam by a physician of Designated Deputy's choice. If Designated Deputy participates in the Blue Shield Plan, the bills must first be submitted to Blue Shield for adjustment. Designated Deputy may choose to use his/her own physician and pay for these services.
2. Physical exam by the District's medical services provider.
3. Physical exam and health assessment conducted by a health appraisal center.
4. Physical exam conducted by Kaiser (no District reimbursement will be provided for this option since there is no cost either to the District or to the Designated Deputy for having a physical exam at Kaiser).
5. Physical exam conducted by Health Net (District to reimburse Designated Deputy for applicable copayment).

12. During the term of this Agreement, the Designated Deputy shall receive any benefits, including those specified in Paragraphs D (1) through D (11), which are provided to the majority of the District's management employees.

II. DUTIES OF DESIGNATED DEPUTY

See attached Position Description.

 III. APPLICABILITY OF PROVISIONS OF THE ADMINISTRATIVE CODE

Designated Deputy shall be subject to all provisions of the District Administrative Code set forth herein below.

A. Section 40 - Code of Ethics
B. Section 50 - Affirmative Action Committee
C. Section 60 - Sexual Harassment
D. Section 100 - District Vehicle Policy
E. Section 120 - Traveling Expenses
F. Section 160 - Claims Procedures
G. Section 161 - Involuntary Relocation Expense

IV. TERMINATION

1. Designated Deputy may be terminated from his/her employment with District by the Appointing Authority upon the happening of any of the following:

1. The death of Designated Deputy;
2. The inability of Designated Deputy for any reason, other than that which applies to long-term disability as described in paragraph I.D.5. hereinabove, to perform his/her duties under this Employment Agreement for a period of ninety (90) consecutive calendar days during the term of this Agreement;
3. The failure of Designated Deputy to carry out any of the major duties of his/her position as listed in Section II above. In such event, District will provide employee with ninety (90) days' notice of termination;
4. The decision of District to terminate Designated Deputy for any reason not specifically prohibited by state or federal law other than those reasons set forth in IV.A.(1) through (3) and IV.A.(5) through (11);
5. Any act of proven fraud or dishonesty on the part of Designated Deputy;
6. The decision of Designated Deputy to terminate his/her employment;
7. Violation of Administrative Code Section 40, Code of Ethics, Section 40.1, Solicitation of Gifts;
8. Failure to meet the goals and objectives established in this Agreement in a timely manner;
9. Conviction of a criminal act involving moral turpitude or dishonesty;
10. Use and/or possession of illegal drugs or controlled substances on District property or District time;
11. Being under the influence of alcohol, illegal drugs or controlled substances on District property or District time.

The above provision does not create a property interest for Designated Deputy.

2. Severance. In consideration of Appointing Authority having the right to terminate Designated Deputy pursuant to Paragraph A(4), if Designated Deputy is terminated by the District pursuant to Paragraph A(4) or Designated Deputy terminates his/her employment because the Appointing Authority decides to significantly change Designated Deputy's job responsibilities as defined in Section II, Duties of Designated Deputy (a change in organizational structure or reporting relationship, in and of itself, does not constitute a significant change of Designated Deputy's job responsibilities as defined herein and in Section II, Duties of Designated Deputies), or to reduce Designated Deputy's salary or other financial benefits by a greater percentage than an applicable across-the-board reduction for the majority of management employees, and such decision by Appointing Authority is in writing, Designated Deputy shall be entitled to receive three months of severance pay; however, at such time as Designated Deputy has completed five years of service with the District, he/she shall be entitled to receive six months of severance pay.
   
   
1. Severance pay shall include payment of full salary, payment of life, health, dental, and other District-paid insurance premiums, and payment for retirement contribution. Severance pay shall not include accrual of sick leave and/or vacation or any other benefits during the severance pay period. Designated Deputy may elect to receive severance compensation in one lump sum or, with the District’s consent, in biweekly payments throughout the severance period. In the event Designated Deputy elects to receive a lump sum payment of severance he or she will receive a lump sum payment equal to the contribution the District would have made on behalf of the Designated Deputy for insurance and retirement for the term of the severance period. Any lump sum payment for severance pay will be paid with the Designated Deputy’s final paycheck or, if not practicable to the District, on the subsequent pay day. Should the Designated Deputy elect to receive severance pay in biweekly payments, and the District consents thereto, the District will pay contributions for insurance and retirement benefits directly to the insurance and retirement benefit providers. The District shall not incur any liability for interest to Designated Deputy on severance pay when the Designated Deputy exercises the option to accept biweekly severance payment for the severance pay period.

2. A Designated Deputy may take, in a lump sum at the time of his/her termination, payment for any unused vacation, sick leave, and/or other leave time paid to management employees at termination. However, if Designated Deputy elects to receive, and the District agrees to permit Designated Deputy to receive, severance pay in biweekly payments for the severance pay period all such unused vacation, sick leave, and/or other leave time will be paid in a lump sum to Designated Deputy at the end of the severance period. The District shall not incur any liability to Designated Deputy for interest on such accrued vacation, sick leave, and/or other leave time that is not paid to Designated Deputy until the end of the severance pay period.

3. Severance is in recognition of past service since the District has decided to terminate or not to renew Designated Deputy's contract. Severance shall not apply to any Designated Deputy who is terminated for reasons set forth in Paragraphs 1, 2, 3, 5, 6 (except as set forth herein), 7, 8, 9, 10, and 11.

4. If Designated Deputy has five or more years of service with the District and is entitled to receive severance pay, he/she also shall be entitled to request out-placement services. If Designated Deputy elects to receive severance payments throughout the severance period, Designated Deputy may request outplacement services at any time during the severance period. District will pay for these services in an amount not to exceed ten percent of Designated Deputy's annual salary. The Designated Deputy may select the outplacement firm, which shall be an established firm whose business is to secure positions in the Designated Deputy’s employment field. The Designated Deputy’s selection of an outplacement firm is subject to approval by the District. Any payment made by the District in accordance with this contract will be made directly to the outplacement firm.

V. ENTERING INTO SUBSEQUENT NEW AGREEMENTS

The decision to enter into any subsequent new agreement shall be left to the sole discretion of the District. The execution of this contract does not create an obligation of the District to renew it.

Should either party desire to negotiate an extension or modification of this Agreement, the party shall give written notice to the other party by no later than three month(s) prior to the expiration of the Agreement. Appointing Authority or his/her designated representative shall meet with Designated Deputy or his/her designated representative for the purpose of renegotiating this Agreement. Should the parties fail to reach a written agreement, this Agreement shall expire on its termination date unless extended by mutual agreement in writing of Appointing Authority or his/her designated representative and Designated Deputy or his/her designated representative.

If the District fails to enter into a new Agreement, Designated Deputy will receive severance pay in accordance with paragraph IV.B. hereinabove unless the failure to enter into a new Agreement is caused by Designated Deputy's refusal to agree to the District's proposed terms and conditions of a new employment agreement, the terms of which are at least equal to or better than the terms and conditions of this or any extension of this Agreement.

VI. MISCELLANEOUS

1. The Appointing Authority acknowledges that he/she has the necessary capacity and authority to enter into this Agreement on behalf of the District. The Designated Deputy acknowledges that he/she has the necessary capacity and authority to enter into this Agreement on behalf of himself/herself.

2. This Agreement constitutes the sole and entire Agreement between the District and Designated Deputy and supersedes all previous representations, understandings, and/or agreements, whether oral or written, between District and Designated Deputy.

3. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver of any such provision, nor prevent such party thereafter from enforcing such provision or any other provisions of this Agreement. The rights granted both parties herein are cumulative and the election of one shall not constitute a waiver of such party's right to assert all other legal remedies available under the circumstances.

4. The provisions of this Agreement are severable, and if any provision of this Agreement shall be held to be invalid or otherwise unenforceable, in whole or in part, the remainder of the provisions, or enforceable parts thereof, shall not be affected thereby.

5. The rights and obligations of District under this Agreement shall be binding upon the successors and assigns of the District.

6. Whenever the masculine gender is used in this Agreement, it shall be understood to refer to the feminine, and whenever the feminine gender is used in this Agreement, it shall be understood to refer to the masculine, unless specifically noted otherwise.

7. No modification, termination or attempted waiver shall be valid unless in writing, and signed by the party against whom such modification, termination or waiver is sought to be enforced.

8. This Agreement shall be interpreted in accordance with and under the laws of the State of California.

Executed at Diamond Bar, California on the day of , 19.

DEFINITION: Under administrative direction of the Executive Officer, plans, organizes, coordinates, and directs multiple directorate or directorate functions within the District; directs the development of strategies, programs, and policies to meet the District's overall goals and objectives; and does other work as required.

CLASSIFICATION STANDARDS: Incumbents in this multiple-position management class are appointed by and report to either the Governing Board, or the Executive Officer or other Designated Deputy, and serve on a contractual basis at the pleasure of the Governing Board or the Executive Officer. Positions in the Designated Deputy class are characterized by the management responsibility for attaining overall District goals and objectives and the cost-effective operation of multiple directorate or directorate functions. Positions exercise significant executive and administrative judgment and are accountable for successfully directing the design and implementation of programs that will further the overall air quality management objectives of the District. Additionally, positions are characterized by responsibility for reviewing and evaluating Districtwide strategies, policies, and procedures and for making recommendations to the Executive Officer or other Designated Deputy. Positions in the class are assigned working titles by the Executive Officer that are descriptive of the Designated Deputy's area of assignment.

EXAMPLES OF DUTIES:

• Plans, organizes, and directs the operations and activities of assigned directorate functions in accordance with established District goals and objectives; coordinates activities with other District functions and outside agencies; and assures proper controls for complying with legislative and regulatory requirements and professional practice.

• Directs, through subordinate management staff, the development and implementation of policies and procedures that are consistent with the District's mission and objectives and that comply with state and federal laws.

• Assigns responsibilities and establishes lines of authority; evaluates the effectiveness of programs and management personnel and makes recommendations to the Executive Officer or other Designated Deputy.

• Ensures that operations and activities assigned to directorate units are consistent with legal mandates and with generally accepted practices.

• Serves as a technical expert and represents the District or directorate before the District Board, hearing bodies, professional groups, environmental and business representatives, and the general public.

• Represents the District in interacting with public- and private-sector officials, community groups, and the general public on a variety of issues that impact the District.

• Consults with and advises District Board Members and the Executive Officer or other Designated Deputy on legislative matters and other issues as required.

• Directs the preparation of reports, contracts, grant proposals, technical papers, District documents, and correspondence.

• Directs the preparation and monitors directorate budgets and makes recommendations on resource allocations and fixed asset purchases.

• When assigned, acts on behalf of the Executive Officer or other Designated Deputy.

MINIMUM REQUIREMENTS

EXPERIENCE:

Training and experience which would demonstrate the knowledge, skills and abilities to plan, organize and direct the development of policies, programs or regulations of the area of assignment; knowledge of administrative techniques and practices necessary for the solution of daily operational problems in personnel, work flow, and organization; knowledge of effective management principles and their application; knowledge of budget design, development and control.

Ability to develop and accomplish through management or supervisory staff established goals and objectives; establish effective working relations with District staff, public and private sector representatives and community groups; communicate effectively both orally and in writing.

Evidence of the required knowledge, skills and abilities may be demonstrated, in part, by graduation from an accredited college or university preferably with a major emphasis in an academic discipline related to the area of assignment and five years of progressively responsible management experience which would demonstrate the requisite knowledge, skills and abilities of the area of assignment OR three years of experience in one of the District's manager classes which demonstrates the knowledge and abilities to manage the area of assignment.

SUBSTITUTION: A Master's degree in an academic discipline related to the area of assignment may substitute for one year of the managerial, administrative or direct supervisory experience.

LICENSE: Possession of a valid California Class C Driver License may be required for some positions in the class.

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