South Coast Air Quality Management District

PROPOSAL: 

Amend Salary Resolution to Add Terms and Conditions of Designated Deputy At-Will Employment

SYNOPSIS: 

The Board’s Personnel Committee brought to the Board in closed session recommendations regarding negotiations with Designated Deputies concerning terms and conditions of at-will employment, including compensation. Following that discussion, the Board directed the Executive Officer to prepare an amendment to the Salary Resolution to incorporate the basic terms and conditions of existing employment agreements with Designated Deputies, but eliminating the pay-for-performance provision and appointment end dates and making the Executive Officer responsible and accountable for making and ending Designated Deputy appointments. The Board also directed the Executive Officer to recommend salary adjustments that would appropriately compensate for elimination of pay-for-performance, recognize comparable public-sector salaries, and adjust pay differentials with respect to subordinates. The Salary Resolution amendment, including compensation adjustments, would apply to new appointments and to those Designated Deputies who voluntarily agree to give up existing contracts.

COMMITTEE: 

Not Applicable

RECOMMENDED ACTION:

1. Adopt the attached Resolution amending AQMD’s Salary Resolution to incorporate Terms and Conditions of At-Will Designated Deputy Appointments, including establishment of Designated Deputy salary levels.
   
   
2. Authorize the Executive Officer to enter into negotiations with Designated Deputies regarding voluntarily giving up existing contracts and becoming subject to the Salary Resolution Terms and Conditions of At-Will Designated Deputy Appointments. (Designated Deputies who chose not to give up existing contracts would remain under contract, with existing contract end dates and with no compensation adjustment.)

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In September 1987, the Board established an at-will Designated Deputy employment status for executive management staff who would serve on a contractual basis at the pleasure of the Executive Officer. In November 1988, the Board approved adding a pay-for-performance provision to Designated Deputy contracts that authorized the Executive Officer, with Board review, to grant compensation incentive awards of up to fifteen percent of salary based on meeting job performance standards.

Beginning in June 2002, the Board, based on Personnel Committee recommendations, has discussed in several closed sessions negotiations regarding the terms and conditions of employment, including compensation, with respect to Designated Deputies. Based on that discussion, in October the Board directed the Executive Officer to prepare an amendment to the Salary Resolution to incorporate the basic terms and conditions of existing employment agreements with Designated Deputies, but eliminating the pay-for-performance provision and contract end dates and making the Executive Officer responsible and accountable for making and ending Designated Deputy appointments without further Board action, based on Board-approved staffing and compensation levels. The Board also directed the Executive Officer to recommend salary adjustments that would appropriately compensate for elimination of pay-for-performance, recognize comparable public-sector salaries, and adjust pay differentials with respect to subordinates, for those Designated Deputies who voluntarily agree to give up existing contracts and become subject to the terms and conditions of the amended Salary Resolution.

Proposal and Resource Impact

The attached Salary Resolution Terms and Conditions of At-Will Designated Deputy Appointments would apply to all future Designated Deputy appointments and to those existing Designated Deputies who voluntarily agree to give up current contracts and become subject to the amended Salary Resolution. Current Designated Deputies who choose not to give up existing contracts would remain under current contracts, with existing contract end dates and with no salary adjustments. The fiscal year salary and retirement cost of the Executive Officer’s proposed compensation adjustments (shown in the attached proposed amendment to the Salary Resolution) would be dependent on which Designated Deputies choose to give up existing employment contracts. Were all to do so, the cost would be approximately $106,000, based on a July 1, 2002, effective date. Sufficient funds are available in the Fiscal Year 2002-03 Budget.

Attachments

Resolution
Salary Resolution Amendment

RESOLUTION NO. 02-

                    A Resolution of the South Coast Air Quality Management District Board amending AQMD’s Salary Resolution to adopt Terms and Conditions of At-Will Designated Deputy Appointments.

                    WHEREAS, the Governing Board of the South Coast Air Quality Management District exercises its duty to review and determine appropriate terms and conditions for at-will Designated Deputies, including compensation.

                    THEREFORE, BE IT RESOLVED that the Board of the South Coast Air Quality Management District, State of California, in regular session assembled on December 6, 2002, does hereby amend AQMD’s Salary Resolution to adopt Terms and Conditions of At-Will Designated Deputy Appointments, eliminating pay-for-performance and appointment end dates and making the Executive Officer responsible and accountable for making and ending Designated Deputy appointments, and, effective July 1, 2002, adopting new salaries for Designated Deputies who voluntarily give up existing contracts and become subject to the amended Salary Resolution Terms and Conditions of At-Will Designated Deputy Appointments.

SALARY RESOLUTION

CHAPTER III
TERMS AND CONDITIONS OF AT-WILL DESIGNATED DEPUTY APPOINTMENTS

ARTICLE 1
GENERAL PROVISIONS

The following sets forth all obligations, rights, and privileges the District owes Designated Deputies and which Designated Deputies owe the District as a result of the employment relationship.

The District Board, under authority granted in Health and Safety Code Sections 40481 and 40482, has delegated to the Executive Officer the role of appointing authority over Designated Deputies. As a result of that delegated authority, Designated Deputies serve at the pleasure of the Executive Officer, who has the authority to appoint and terminate the services of Designated Deputies.

Designated Deputies agree, in accepting their appointments, that they have relinquished any property right in their positions, except as provided under the Constitution and the laws of the State of California and of the United States of America. They also agree that their sole rights to employment exist under these Terms and Conditions of At-Will Designated Deputy Appointments.

The provisions of the District’s Personnel Rules do not apply to Designated Deputies unless specifically referenced in this Salary Resolution.

ARTICLE 2
DESIGNATED DEPUTY SALARIES

Section 55. SALARY
Designated Deputy base salaries are listed in Chapter III, Article 7, of this document.

Designated Deputies shall receive the same percentage increase as approved by the Board for management employees. The term "base salary" shall not include any benefits that the Designated Deputy shall receive under the terms of this Salary Resolution. Said base salary shall be less federal and state taxes and other customary payroll withholdings which are also applicable to other employees of the District and shall be payable every two weeks commencing on the first applicable payday following appointment.

ARTICLE 3
BENEFITS

Section 56. FRINGE BENEFITS
Designated Deputies shall be entitled to receive the following additional fringe benefits 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. The receipt of benefits customarily given to regular employees does not create a property interest for Designated Deputies in their jobs.
 

	a.	Retirement. Designated Deputies shall participate in the San Bernardino County Employees' Retirement Association. The 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
	b.	Health Insurance. Designated Deputies participate in the same health insurance program offered by the District to management employees and are subject to all of the terms and conditions of the insurance contract with the provider chosen. Designated Deputies may choose "family" coverage and the District agrees to pay a maximum monthly contribution sufficient to permit Designated Deputies to have "family" coverage without necessitating employee contribution, in accordance with prevailing District policy for management employees.
	c.	Dental and Vision Care Insurance. Designated Deputies participate in the same dental and vision care program offered by the District to management employees and are subject to all of the terms and conditions of the insurance contract with the provider chosen. 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.
	d.	Life Insurance. Designated Deputies are covered by the following District-paid life insurance policies: (1) A $5,000 life insurance policy; (2) a $50,000 combination life insurance and dismemberment policy; and (3) $245,000 coverage at the Designated Deputy's option of either universal life insurance or a combination of term life and accidental death and dismemberment insurance, under plans provided to Designated Deputies. All plans are subject to the Designated Deputy passing any requirements of the insurance company. The premium to be paid by the District for the additional life insurance, i.e., (3) above, 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.
	e.	Flexible Benefit Plan. Designated Deputies are 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, in accordance with prevailing District policy for management employees.
	f.	Short-term and Long-term Disability Insurance. Designated Deputies are covered, at no cost to themselves, by the same short-term disability plan (management salary continuance plan) and long-term disability policy that apply to management employees.
	g.	Sick Leave. Designated Deputies shall accrue sick leave at the same rate as management employees. Any District sick leave accrued as of the date of appointment shall be carried forward. Upon leaving the service of the District for any reason, Designated Deputies shall receive payment of 50% of all hours based upon their hourly rate up to a maximum of 720 hours.
	h.	Holidays. Designated Deputies shall receive the same paid holidays per year and shall be subject to the same holiday provisions as management employees.
	i.	Vacation. Designated Deputies shall be entitled to 182 hours of paid vacation per year and shall be subject to the same vacation sell-back and carryover provisions as management employees (pursuant to this Salary Resolution).
	j.	Jury Duty or Witness Leave. Designated Deputies are subject to the same jury duty and witness leave provisions as management employees.
	k.	Bereavement Leave. Designated Deputies are subject to the same bereavement leave provisions as management employees.
	l.	Other
		(1)	Tuition Reimbursement. Designated Deputies are eligible to receive reimbursement for attending courses which are related to their 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 Deputies shall be entitled to be reimbursed for use of their 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. Designated Deputies required to serve in the military shall be paid in accordance with California Military and Veterans' Code Section 395 et seq.
		(4)	Deferred Compensation. Designated Deputies are eligible to participate in the District's deferred compensation plan. The District shall fund a contribution equal to three times the Designated Deputy's contribution to a combined maximum permitted by law, and, in addition, shall fund a contribution equal to three times the Designated Deputy’s contribution as permitted under the pre-retirement "catch-up" provision of the law.
		(5)	Memberships and Licenses. Designated Deputies shall be reimbursed for the cost of professional memberships and licenses and, for those Designated Deputies functioning as attorneys, of required annual bar dues, in accordance with the District policy for non-Designated Deputy management employees and attorneys.
		(6)	Personal Time. Customarily, overtime is inherent in an executive manager's position. Designated Deputies will be accorded reasonable flexibility in absenting themselves from the office for brief intervals, not to exceed one-half of their assigned work day per occasion, if personal reasons so require. Designated Deputies will be granted compensatory, but not paid, time, on an hour-for-hour basis, for five or more hours of overtime worked in a single day. Annual sell-back of and termination pay for accrued compensatory time will be in accordance with prevailing District policy for management employees.
		(7)	Physical Examinations. The District will contribute toward the cost of an annual physical examination for Designated Deputies in accordance with prevailing District policy for management employees.
	m.	Designated Deputies shall receive any benefits, including those specified in Paragraphs a. through l. above, which are provided to the majority of the District's management employees.

ARTICLE 4
DUTIES OF DESIGNATED DEPUTY

Section 57. Duties of Designated Deputies are described in the Designated Deputy class specification.

ARTICLE 5
APPLICABILITY OF PROVISIONS OF THE ADMINISTRATIVE CODE

Section 58. Designated Deputies 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

ARTICLE 6
TERMINATION

Section 59. Designated Deputies may be terminated from their employment with the District by the Appointing Authority for any of the following: 

1. The death of a Designated Deputy;
   
   
2. The inability of a Designated Deputy for any reason, other than that which applies to long-term disability as described in Section 56 f., to perform his/her duties for a period of 90 consecutive calendar days;
   
   
3. The failure of a Designated Deputy to carry out any of the major duties of his/her position as listed in the Designated Deputy class specification. In such event, District will provide employee with 90 days' notice of termination;
   
   
4. The decision of District to terminate a Designated Deputy for no reason or for any reason not specifically prohibited by state or federal law other than those reasons set forth in Section 59 a. through c. and e. through k.;
   
   
5. Any act of proven fraud or dishonesty on the part of a 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 established goals and objectives 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 Deputies.

Section 60. SEVERANCE. In consideration of the Appointing Authority having the right to terminate Designated Deputies pursuant to Section 59 above, if a Designated Deputy is terminated by the District pursuant to Section 59 d. above or a Designated Deputy terminates his/her employment because the Appointing Authority decides to significantly change the Designated Deputy's job responsibilities as defined in the Designated Deputy class specification (a change in organizational structure or reporting relationship, in and of itself, does not constitute a significant change of a Designated Deputy's job responsibilities as defined in the Designated Deputy class specification), or either the Appointing Authority or the District Board decides to reduce a 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 the Appointing Authority or District Board is in writing, or the same salary increase approved for management employees is not granted to a Designated Deputy as provided for in Article 2, Section 55 above, or the terms of granting severance are amended by the District Board, the Designated Deputy shall be entitled to receive three months of severance pay; however, at such time as a 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 Deputies 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 a Designated Deputy elects to receive a lump sum payment of severance he/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 a 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 a Designated Deputy elects to receive, and the District agrees to permit the 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 the Designated Deputy at the end of the severance period. The District shall not incur any liability to Designated Deputies for interest on such accrued vacation, sick leave, and/or other leave time that is not paid to such Designated Deputies until the end of the severance pay period.
   
   
3. Severance is in recognition of past service since the District has decided to terminate the services of the Designated Deputy. Severance shall not apply to any Designated Deputy who is terminated for reasons set forth in Section 59 a, b, c, e, f (except as set forth herein), g, h, i, j, and k.
   
   
4. If a 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 a Designated Deputy elects to receive severance payments throughout the severance period, the Designated Deputy may request outplacement services at any time during the severance period. The District will pay for these services in an amount not to exceed ten percent of the 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.

ARTICLE 7
DESIGNATED DEPUTY ANNUAL SALARIES

(Effective July 1, 2002)
 

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