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PROPOSAL:

Approve Compensation Package for Designated Deputies

SYNOPSIS:

The Executive Management Agreements of three Designated Deputies expire October 29, 1999. This action is to approve the compensation package for Deputy Executive Officer Carol A. Coy, Deputy Executive Officer Dr. Chung S. Liu, and Chief Financial Officer Patrick Pearce.

COMMITTEE:

None.

RECOMMENDED ACTION:

Approve the compensation package for Carol A. Coy, Dr. Chung S. Liu, and Patrick H. Pearce, 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 [ except Executive Officer and General Counsel who serve at the pleasure of the Governing Board pursuant to statute (H&S Sec. 40480(b) and 40483, respectively)] under an Executive Management Agreement. The executive management agreements between the District and three Designated Deputies--Carol A. Coy, Dr. Chung S. Liu, and Patrick H. Pearce -- expire October 28, 1999, extended from the original expiration date of July 31, 1999. It is proposed that the compensation adjustment proposed herein be effective August 1, 1999 (i.e., original expiration date).

Each of these individuals has performed in an outstanding manner, as follows:

Carol A. Coy

Carol Coy has been with the AQMD for over 17 years, serving in a series of progressively responsible positions. Prior to her appointment as Deputy Executive Officer for Engineering and Compliance in March, she served as Assistant Deputy Executive Officer for Stationary Source Compliance, responsible for Major Source, RECLAIM, and Title V rule development, permitting, and compliance. Ms. Coy’s responsibilities have expanded substantially over the past year due to management changes. During the three years of her current contract, she has continued to make significant contributions to a broad range of key air quality programs. These contributions are characterized by thorough technical work, detailed understanding of AQMD programs, and forging effective collaborative efforts by community, industry, and staff representatives. Ms. Coy’s recent accomplishments include:

• Effective coordination with labor representatives and individual staff members to develop assignments that re-establish meaningful field compliance presence through careful geographic "community-based" deployment of inspectors.

• Effective leadership to respond to Governing Board direction to work with the harbor community and industry representatives to better understand the particulate emissions situation in this area and to work together to craft a lasting solution to the longstanding problem. As part of this effort she chaired the joint community and industry Particulate Monitoring Advisory Committee formed in the Fall of 1996, coordinated staff work on LAXT coke enclosure applications and associated public workshops in the community, and led development of the recently adopted Rule 1158 revisions which provide the blueprint for the phase-out of open coke storage by the end of 2002.

• Effective oversight of rule development activities including the 1998 Regulation III amendments to better align fee schedules with AQMD cost to deliver services, Rule 1118 which instituted refinery flare monitoring, and several revisions to the RECLAIM rules to increase flexibility and reduce facility compliance costs.

• Delivery of timely major source inspection activities and compliance reports including the comprehensive three-year RECLAIM audit report to the Governing Board and State Legislature.

Dr. Chung S. Liu

As Deputy Executive Officer for Science and Technology Advancement, Dr. Liu is responsible for the Technology Advancement Office, administering the Clean Fuels Program and the Carl Moyer Air Quality Standards Attainment Program, directing staff support for the Mobile Source Air Pollution Reduction Program (MSRC), and leads the District's efforts in ambient monitoring, source testing, and laboratory analysis. Dr. Liu has been with the AQMD for over 18 years in progressively more responsible positions. Prior to his appointment as Deputy Executive Officer, he was the Assistant Deputy Executive Officer for Technology Advancement, Director of Planning and Policy, and Director of Applied Science and Technology.

Dr. Liu has helped keep the AQMD at the forefront of the leading edge of clean air technologies with major emphasis on fuel cell technologies, electric vehicles and electric hybrid vehicles, off-road equipment/vehicles, diesel alternatives, and clean fuels infrastructure development. Dr. Liu played a significant role in securing the reauthorization of the Clean Fuels Program (SB-98). He has led the District's effort in promoting clean fuel alternatives among local transit districts, school districts and truck fleet.

Dr. Liu was instrumental in establishing the District's Carl Moyer Air Quality Standards Attainment Program, and directed the successful completion of the project solicitation, evaluation and award for the first year of the program, including 21 projects with a total award of $11.3 million, achieving overall 6,741 tons of NOx emission reduction at a cost-effectiveness of $2,191 per ton. He has already initiated an effort in securing an additional $9.5 million from state agencies and issuing bid requests for the second year of the program. Dr. Liu serves as the co-chair of the District's BACT Scientific Review Committee and played a key role in approval of LAER standards for low NOx gas turbines and providing certification of near-ambient continuous emission monitoring systems.

Dr. Liu has also directed the District's air quality monitoring efforts, including MATES II, PAMS network implementation and fine particulate monitoring systems, and has overseen special monitoring and sample analysis in harbor areas, airports, and downwind from industry complexes in addressing community concerns.

Patrick H. Pearce

Mr. Pearce has been with the AQMD for over 20 years in progressively more responsible positions. He is a Certified Government Financial Manager. In his capacity as the AQMD’s Chief Financial Officer, Mr. Pearce is responsible for the AQMD’s full range of financial activities, including development and monitoring of the annual and three-year budgets, accounting, payroll, contracts, purchasing and receiving, customer service, cash management, grants administration, investments and debt issuance, and fiscal and performance audits. Following is a summary of some of Finance’s most recent accomplishments under Mr. Pearce’s direction.

An unqualified opinion (the highest possible) on its Financial Statements; the establishment of AQMD’s Treasury Management program including the development of its annual Investment Policy; revisions to the AQMD Procurement Policy and Procedure, streamlining business practices and reducing cost to procure services and supplies; reducing AQMD debt through the defeasance of bonds with the proceeds from the sale of the former headquarters building; completion of the biennial AB 2766 audit program for FYs 1993-94 and 1994-95; oversight of the AQMD’s triennial Performance Audit and special audit by the State Auditor; completion of the FY 1997-98 Fee Structure Study; and the ongoing migration and implementation of a new finance system.

In addition to his management of finance, Mr. Pearce presently serves as one of the Executive Officer’s representatives on the Labor/Management Committee, Deferred Compensation Committee, and the Fee Review Committee. Mr. Pearce also staffs the Governing Board’s Finance Committee and Investment Oversight Committee and is the district representative on the CAPCOA Fiscal Officers Committee. Mr. Pearce is a member of the Government Finance Officers Association and the Association of Government Accountants.

Proposal

The Executive Officer proposes to enter into the following Executive Management Agreements:

• with Carol A. Coy for the position of Deputy Executive Officer/Engineering & Compliance at an annual salary of $109,448, effective August 1, 1999, for a term ending July 31, 2002;

• with Dr. Chung S. Liu for the position of Deputy Executive Officer/Science & Technology Advancement at an annual salary of $109,448, effective August 1, 1999, for a term ending July 31, 2002; and

• with Patrick H. Pearce for the position of Deputy Executive Officer/Chief Financial Officer at an annual salary of $109,448, effective August 1, 1999, for a term ending July 31, 2002.

The salaries recommended above include the 3% cost of living adjustment being proposed for all Management and Confidential employees for FY 99-00. While all three of these individuals have had outstanding performance and their existing contracts have provided for the possibility of a performance payment of 0-12%, I am not recommending a performance payment at this time due to the agency's overall financial situation and other considerations. Future cost of living adjustments will be according to the standard Designated Deputy provision and equivalent to Management employees.

Fiscal Impacts

Sufficient funds for salaries and benefits are allocated in the current year's budget and will be allocated in future years' budgets. The proposed salaries are consistent with salaries previously approved by the Board and recommendations from a consultant report on management salaries conducted last year. This action will also maintain salary equity within the designated deputy group by reflecting changes in responsibility under the recently revised organizational structure.

Attachments

Proposed Executive Management Agreements

/ / /

EXECUTIVE MANAGEMENT AGREEMENT
between

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
and
DESIGNATED DEPUTY

Carol A. Coy

Deputy Executive Officer/Engineering & Compliance

AGREEMENT made this 8th day of October, 1999, by and between SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT, a governmental agency with the primary purpose to reduce air pollution in Southern California for the Los Angeles, San Bernardino, Riverside, and Orange counties, with its principal office at 21865 E. Copley Dr., Diamond Bar, California, herein referred to as "District" or "Employer" interchangeably and CAROL A. COY, herein referred to as "Designated Deputy."

     WHEREAS, the District is a governmental agency organized and formed pursuant to the laws of the State of California; and

     WHEREAS, the District desires to secure the services of Designated Deputy as Deputy Executive Officer/Engineering & Compliance to serve at the pleasure of the Appointing Authority for the term of this Agreement; and

     WHEREAS, the Appointing Authority is defined as Executive Officer; and

     WHEREAS, the Designated Deputy agrees and consents that he/she has relinquished any property right which Designated Deputy may have had as a result of personnel policies, rules, or regulations of the District, except those provided under the Constitution and laws of the State of California and the United States of America, in return for the consideration set forth below; and

     WHEREAS, Health and Safety Code Section 40481 specifically provides for Designated Deputy to serve at the pleasure of the District Board; and

     WHEREAS, Health and Safety Code Section 40482 provides that the District Board may delegate such authority as it deems appropriate to the Appointing Authority; and

     WHEREAS, the District Board has delegated its authority to terminate the services of Designated Deputy; and

     WHEREAS, the Designated Deputy understands and consents that he/she is serving at the pleasure of the Appointing Authority of the District; the sole rights to employment of Designated Deputy exist under this Agreement and resolution adopting this Agreement; and

     WHEREAS, the District intends that this Agreement sets forth all obligations, rights, and privileges it may owe to Designated Deputy and which Designated Deputy may owe to the District as a result of the employment relationship;

     NOW, THEREFORE, in consideration of the mutual promises herein contained, District and Designated Deputy agree as follows:

I. TERM OF AGREEMENT

1. A. District employs Designated Deputy, for the position of Deputy Executive Officer/ Engineering & Compliance for the term approximately of three years, commencing August 1, 1999 and terminating July 31, 2002.

2. Designated Deputy shall initially receive a base salary of $109,448 and shall receive a percentage increase equivalent to the percentage increase for management class employees as approved by the Board in succeeding years. 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.

3. 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

a) 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.

b) 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.

c) 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.

d) 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).

e) 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.

f) 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.

g) 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 8th day of October, 1999.

 

SOUTH COAST AIR QUALITY DESIGNATED DEPUTY	MANAGEMENT DISTRICT
By:____________________________ Barry R. Wallerstein, D.Env. Executive Officer	By:____________________________ CAROL A. COY

APPROVED AS TO FORM:
Peter M. Greenwald, General Counsel

By_____________________________

EXECUTIVE MANAGEMENT AGREEMENT
between

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
and
DESIGNATED DEPUTY

Chung S. Liu
Deputy Executive Officer, Science & Technology Advancement

     AGREEMENT made this 8th day of October, 1999, by and between SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT, a governmental agency with the primary purpose to reduce air pollution in Southern California for the Los Angeles, San Bernardino, Riverside, and Orange counties, with its principal office at 21865 E. Copley Dr., Diamond Bar, California, herein referred to as "District" or "Employer" interchangeably and CHUNG S. LIU, herein referred to as "Designated Deputy."

     WHEREAS, the District is a governmental agency organized and formed pursuant to the laws of the State of California; and

     WHEREAS, the District desires to secure the services of Designated Deputy as Deputy Executive Officer/Science & Technology Advancement to serve at the pleasure of the Appointing Authority for the term of this Agreement; and

     WHEREAS, the Appointing Authority is defined as Executive Officer; and

     WHEREAS, the Designated Deputy agrees and consents that he/she has relinquished any property right which Designated Deputy may have had as a result of personnel policies, rules, or regulations of the District, except those provided under the Constitution and laws of the State of California and the United States of America, in return for the consideration set forth below; and

     WHEREAS, Health and Safety Code Section 40481 specifically provides for Designated Deputy to serve at the pleasure of the District Board; and

     WHEREAS, Health and Safety Code Section 40482 provides that the District Board may delegate such authority as it deems appropriate to the Appointing Authority; and

     WHEREAS, the District Board has delegated its authority to terminate the services of Designated Deputy; and

     WHEREAS, the Designated Deputy understands and consents that he/she is serving at the pleasure of the Appointing Authority of the District; the sole rights to employment of Designated Deputy exist under this Agreement and resolution adopting this Agreement; and

     WHEREAS, the District intends that this Agreement sets forth all obligations, rights, and privileges it may owe to Designated Deputy and which Designated Deputy may owe to the District as a result of the employment relationship;

     NOW, THEREFORE, in consideration of the mutual promises herein contained, District and Designated Deputy agree as follows:

I. TERM OF AGREEMENT

1. District employs Designated Deputy, for the position of Deputy Executive Officer/ Science & Technology Advancement for the term approximately of three years, commencing August 1, 1999 and terminating July 31, 2002.

2. Designated Deputy shall initially receive a base salary of $109,448 and shall receive a percentage increase equivalent to the percentage increase for management class employees as approved by the Board in succeeding years. 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

   a) 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.

   b) 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.

   c) 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.

   d) 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).

   e) 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.

   f) 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.

   g) 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. A. 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 8th day of October, 1999.

SOUTH COAST AIR QUALITY  MANAGEMENT DISTRICT	DESIGNATED DEPUTY
By:____________________________  Barry R. Wallerstein, D.Env. Executive Officer	By:____________________________ Chung L. Liu, Ph.D.

APPROVED AS TO FORM:
Peter M. Greenwald, General Counsel

By_____________________________

EXECUTIVE MANAGEMENT AGREEMENT
between

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
and
DESIGNATED DEPUTY

Patrick H. Pearce
Deputy Executive Officer/Chief Financial Officer

     AGREEMENT made this 8th day of October, 1999, by and between SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT, a governmental agency with the primary purpose to reduce air pollution in Southern California for the Los Angeles, San Bernardino, Riverside, and Orange counties, with its principal office at 21865 E. Copley Dr., Diamond Bar, California, herein referred to as "District" or "Employer" interchangeably and PATRICK H. PEARCE, herein referred to as "Designated Deputy."

     WHEREAS, the District is a governmental agency organized and formed pursuant to the laws of the State of California; and

     WHEREAS, the District desires to secure the services of Designated Deputy as Deputy Executive Officer/Chief Financial Officer to serve at the pleasure of the Appointing Authority for the term of this Agreement; and

     WHEREAS, the Appointing Authority is defined as Executive Officer; and

     WHEREAS, the Designated Deputy agrees and consents that he/she has relinquished any property right which Designated Deputy may have had as a result of personnel policies, rules, or regulations of the District, except those provided under the Constitution and laws of the State of California and the United States of America, in return for the consideration set forth below; and

     WHEREAS, Health and Safety Code Section 40481 specifically provides for Designated Deputy to serve at the pleasure of the District Board; and

     WHEREAS, Health and Safety Code Section 40482 provides that the District Board may delegate such authority as it deems appropriate to the Appointing Authority; and

     WHEREAS, Health and Safety Code Section 40532 authorizes a subordinate of the Designated Deputy to pay, in favor of the persons entitled, claims which have been legally examined, allowed, and ordered paid by the District Board, and the Designated Deputy has a fiduciary duty to the District to safeguard the agency’s assets; and

     WHEREAS, the District Board has delegated its authority to terminate the services of Designated Deputy; and

     WHEREAS, the Designated Deputy understands and consents that he/she is serving at the pleasure of the Appointing Authority of the District; the sole rights to employment of Designated Deputy exist under this Agreement and resolution adopting this Agreement; and

     WHEREAS, the District intends that this Agreement sets forth all obligations, rights, and privileges it may owe to Designated Deputy and which Designated Deputy may owe to the District as a result of the employment relationship;

     NOW, THEREFORE, in consideration of the mutual promises herein contained, District and Designated Deputy agree as follows:

I. TERM OF AGREEMENT

1. District employs Designated Deputy, for the position of Deputy Executive Officer/ Chief Financial Officer for the term approximately of three years, commencing August 1, 1999 and terminating July 31, 2002.

2. Designated Deputy shall initially receive a base salary of $109,448 and shall receive a percentage increase equivalent to the percentage increase for management class employees as approved by the Board in succeeding years. 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

   a) 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.

   b) 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.

   c) 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.

   d) 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).

   e) 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.

   f) 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.

   g) 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 8th day of October, 1999.

 

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT	DESIGNATED DEPUTY
By:____________________________  Barry R. Wallerstein, D.Env.  Executive Officer	By:____________________________ PATRICK H. PEARCE

APPROVED AS TO FORM:
Peter M. Greenwald, General Counsel

By_____________________________

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