HomeMy WebLinkAboutOCSD 19-12RESOLUTION NO. OCSD 19-12
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
ORANGE COUNTY SANITATION DISTRICT APPROVING
SALARY INCREASES AND SALARY RANGE ADJUSTMENTS
FOR THE GENERAL MANAGER FOR FISCAL YEAR
2019/2020, FISCAL YEAR 2020/2021, AND FISCAL YEAR
2021/2022.
WHEREAS, the General Manager provides organizational leadership, strategic
direction, and District oversight for Orange County Sanitation District (OCSD); and
WHEREAS, the General Manager serves in an at-will employment capacity, which
may be terminated at any time by the Board with or without cause; and
WHEREAS, it is OCSD's philosophy to compensate employee classifications
competitively, which currently can be achieved through alignment with the salary market;
and
WHEREAS, the July 1, 2018, At-Will Agreement with the General Manager
provides that, "District's Steering Committee shall meet with General Manager in August
of each year during the term of this Agreement to review and evaluate his performance
over the prior year. The Steering Committee shall make its recommendation(s) to the
Board concerning adjustment to the compensation and/or benefits paid or provided to
General Manager, to be effective in July of the year of review. After consideration of the
recommendation(s) of the Steering Committee, the Board shall determine and approve
the compensation, including benefits, payable to General Manager, which generally
becomes effective July of the fiscal year of the review"; and
WHEREAS, the Steering Committee commenced its review of the General
Manager's performance in June 2019, finalized its review and made its recommendation
to the Board on September 25, 2019.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER:
1. That the At-Will Agreement with the General Manager (Attached hereto as
Exhibit 1) setting forth the terms and conditions of his employment, including
a salary increase in the first pay period of July 2019, consisting of a 3.0%
salary range adjustment and corresponding salary increase and 2.5% merit
increase as determined by the Board of Directors, not to exceed 5.5% total,
is hereby approved to be effective retroactively to the first pay period of July
2019;
2. A salary increase in the first pay period of July 2020, consisting of a 3.0%
OCSD 19-12-1
salary range adjustment and corresponding salary increase and up to 2.5%
merit increase to be determined by the Board of Directors based on job
performance, not to exceed 5.5% total;
3. A salary increase in the first pay period of July 2021, consisting of a 3.0%
salary range adjustment and corresponding salary increase and up to 2.5%
merit increase to be determined by the Board of Directors based on job
performance, not to exceed 5.5% total; AND
4. That the Board Chair, or his designee, is authorized to implement the changes
to salary range and salary items approved herein.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
September 25, 2019.
ATIEST:
OCSD 19-12-2
STATE OF CALIFORNIA )
) SS
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation
District, do hereby certify that the foregoing Resolution No. OCSD 19-12 was passed and
adopted at a regular meeting of said Board on the 25 th day of September 2019 , by the
following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Avery ; Beamish (Alternate); Bernste in; Berry
(Alternate); Chaffee; Collacott; Ferryman ; Kim ; K r ing;
Massa-Lavitt; R. Murphy; Nguyen ; O'Neill (Alternate);
Shawver; Shea ; Silva ; F . Smith ; Wanke; and Withers
Iglesias
Harper (Alternate)
B . Jones (Alternate); M . Murphy; Parker and Pete rson
IN WITNESS WHEREOF , I have hereunto set my hand and affixed the official seal
of Orange County Sanitation District this 25th day of September 2019 .
re
e Board of Directors
Orange County Sanitation District
OCSD 19-12-3
Pay Grade
EM37 Annual $
Monthly $
Hourly $
Pay Grade
EM37 Annual $
Monthly $
Hourly $
Pay Grade
EM37 Annual $
Monthly $
Hourly $
Pay Grade
EM37 Annual $
Monthly $
Hourly $
General Manager Salary Schedule
Orange County Sanitation District
Classification and Compensation Plan
GENERAL MANAGER, FY 2018-19
Step 1 Step2 Step 3
255,778 $ 268,861 $ 282,610
21,315 $ 22,405 $ 23,551
122.97 $ 129.26 $ 135.87
Step4
$ 297,066
$ 24,755
$ 142.82
Proposed Salary Range Adjustment
GENERAL MANAGER, Proposed FY 2019-20
Step 1 Step2 Step3 Step4
263,453 $ 276,931 $ 291,096 $ 305,968
21,954 $ 23,078 $ 24,258 $ 25,497
126.66 $ 133.14 $ 139.95 $ 147.10
Proposed Salary Range Adjustment
GENERAL MANAGER, Proposed FY 2020-21
Step 1 Step2 Step3 Step4
271,357 $ 285,230 $ 299,832 $ 315,141
22,613 $ 23,769 $ 24,986 $ 26,262
130.46 $ 137.13 $ 144.15 $ 151.51
Proposed Salary Range Adjustment
GENERAL MANAGER, Proposed FY 2021-22
Step 1 Step 2 Step3 Step4
279,490 $ 293,779 $ 308,818 $ 324,605
23,291 $ 24,482 $ 25,735 $ 27,050
134.37 $ 141.24 $ 148.47 $ 156.06
Current
Step 5
$ 312,250
$ 26,021
$ 150.12
3.0%
Step5
$ 321,610
$ 26,801
$ 154.62
3.0%
Step5
$ 331,261
$ 27,605
$ 159.26
3.0%
Step 5
$ 341,203
$ 28,434
$ 164.04
AT-WILL EMPLOYMENT AGREEMENT
James D. Herberg
General Manager
ORANGE COUNTY SANITATION DISTRICT
THIS AT-WILL EMPLOYMENT AGREEMENT ("Agreement") is entered into, to be
effective the 1st day of July, 2019, by and between:
AND
ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as
"District";
JAMES D. HERBERG, sometimes hereinafter referred to as "General
Manager"; collectively referred to herein as ("the Parties")
RECITALS
WHEREAS, District desires to continue to employ James D. Herberg ("Mr. Herberg"),
as General Manager of District, pursuant to the terms and conditions as set forth in this
Agreement; and
WHEREAS, Mr. Herberg, by virtue of his education, training and experience, is fully
qualified to fill the position of General Manager and desires to continue to serve the District
as its General Manager, pursuant to the terms and conditions of this Agreement; and
WHEREAS, per Resolution No. 19-XX adopted on September 25, 2019, the District's
Board of Directors has approved and authorized the Board Chair to execute this "At-Will
Employment Agreement" to include a base building salary increase of 5.5% of his current
salary.
WHEREAS, at the beginning of negotiations of a new Employment Agreement, the
parties agreed that any salary changes agreed to would take effect retroactively to the first pay
period of July 2019, which is the first pay period in the current fiscal year.
NOW, THEREFORE, the Parties hereto agree as follows:
Sectjon 1: District hereby continues to employ Mr. Herberg to serve as General Manager
of the Orange County Sanitation District, commencing on the effective date hereof, and continuing
until termination by either Party, as provided in this Agreement.
In that capacity, Mr. Herberg agrees to perform the functions and duties of General
Manager, the administrative head of the District, as prescribed by the laws of the State of
California, and by the rules, regulations, decisions, and directions of the Board of Directors of
District (hereinafter referred to as "Board"). The General Manager's duties may involve
expenditures of time in excess of the regularly established workday or in excess of a forty-hour
work week and may also include time outside normal office hours (including attendance at
Board and Committee meetings). General Manager is classified as an exempt employee under
the Fair Labor Standards Act ("FLSA") and shall not be entitled to any additional compensation
for hours worked in excess of forty in a work week.
Sectjon 2: Mr. Herberg shall be employed in an "at-will" capacity serving at the sole
pleasure of the Board. Either party to this Agreement may terminate the Agreement at any time
for any reason with or without cause, and without hearing, upon 30 days' notice to the other
party. Mr. Herberg is advised and acknowledges that he has none of the termination rights of a
Regular employee of the District. Except as expressly provided herein, and as a condition of
employment, Mr. Herberg knowingly, willingly and voluntarily gives up, waives, and disclaims
any and all rights he may have, express or implied, to any notice and/or hearing before or after
termination, and/or to any continued employment with the District after termination.
As an "at-will" employee, Mr. Herberg understands that he may be subject to termination
with or without cause at the sole discretion of the Board, notwithstanding that the other
provisions of the District's Personnel Policies and Procedures Manual (hereinafter referred to as
"Manual") apply to Mr. Herberg. If the District terminates employment without cause, Mr. Herberg shall
be given a thirty (30) day Notice of Termination and severance pay in an amount equal to six (6)
months of his then current annual base salary upon Mr. Herberg's execution of a valid written release
of legal claims.
If the District terminates this Agreement (thereby terminating Mr. Herberg's employment) without
cause, and Mr. Herberg executes a valid written release of legal claims, the severance pay is
considered a cash settlement related to the termination of Mr. Herberg and waiver of legal claims and
shall be fully reimbursed to the District by Mr. Herberg if Mr. Herberg is convicted of a crime involving
an abuse of his office or position. Abuse of office or position shall have the meaning set forth in
Government Code 53243.4, as may be amended, of either (1) an abuse of public authority, including,
but not limited to, waste, fraud and violation of the law under color of authority, or (2) a crime against
public justice, including, but, not limited to, a crime described in Title 7 (commencing with Section 92
of Part 1 of the Penal Code). Mr. Herberg shall reimburse such severance pay to the District no later
than six (6) months after such conviction. If Mr. Herberg terminates his employment with 30 days'
notice, the Board shall have the right to accept his resignation effective the date notice is given. Such
decision to accept his resignation earlier shall not be considered a termination without cause and shall
not entitle Mr. Herberg to receive the severance pay noted above.
Sectjoo 3: The term of this Agreement shall commence on the effective date above and
continue for an indefinite duration, until terminated by either Party pursuant to Section 2 above, or
unless terminated or amended as provided herein.
Sectjoo 4: As compensation for the services to be performed hereunder, upon the effective
date of this Agreement, District agrees to pay General Manager an annual base salary for services
rendered of three hundred six thousand one hundred ninety-six dollars ($306, 196), subject to all
applicable deductions and withholdings of any and all sums required by then current state, federal or
local law, along with deductions of applicable sums the General Manager is obligated to pay because
of participation in plans and programs described in this Agreement, and paid biweekly in accordance
with the District's established accounting and payroll practices at the same time and in the same
manner as other employees of the District. No increase in salary may exceed the compensation
permitted by the applicable salary range for the classification established by duly adopted Resolution
of the Board.
For Years Two and Three of the employment contract, compensation will adjust as follows:
1. A salary increase in the first pay period of July 2020, consisting of a 3.0% salary range
adjustment and corresponding salary increase and up to 2.5% merit increase to be
determined by the Board of Directors based on job performance, not to exceed 5.5% total;
2. A salary increase in the first pay period of July 2021, consisting of a 3.0% salary range
adjustment and corresponding salary increase and up to 2.5% merit increase to be
determined by the Board of Directors based on job performance, not to exceed 5.5% total.
Sectjoo 5: For the period of this Agreement, District shall provide Mr. Herberg w~h a fixed
benefit package that includes the following:
Personal Leave -accrued based on years of service for all paid hours, including
hours actually worked and hours in a paid-leave payroll status, on a biweekly
basis in accordance with the Manual. Personal leave accruals shall not exceed
four hundred forty (440) hours as of December 31 of each year. Any hours in
excess of said limit, will be paid to Mr. Herberg in January in an amount equal to
the hourly rate of compensation.
• Administrative Leave -40 hours per fiscal year, granted and not eligible for
annual cash out.
• Investment Incentive Salary (llS) -6% of base salary applied on a biweekly fiscal
year basis, and a flat amount of one thousand two hundred fifty dollars ($1,250)
annually.
• Deferred Compensation -OCSD-paid annual allocation for 2019, 2020, and
2021 of $11,000 allocated on a biweekly calendar year basis.
• Car Allowance -OCSD-paid annual allocation of $8,400.
• Added Medical Allowance -OCSD-paid annual allocation for 2019, 2020, and
2021 of six thousand dollars ($6,000).
Mr. Herberg's benefit package also shall include benefits consistent with the Manual for:
holiday pay; medical, dental, vision and life insurance at three times base salary; long-term and
short-term disability insurance; and employee assistance program. Additionally, Mr. Herberg's
benefit package shall include executive disability insurance benefits, consistent with those
provided to OCSD managers.
These benefits shall remain in full force and effect unless and until replaced by an amendment
to this Agreement, signed by Mr. Herberg and approved by the Board, which amendment shall include
the effective date thereof.
Sectjon 6: District's Steering Committee shall meet with General Manager in August of
each year during the term of this Agreement to review and evaluate his performance over the
prior year. The Steering Committee shall make its recommendation(s) to the Board concerning
adjustment to the compensation and/or benefits paid or provided to General Manager, to be
effective in July of the year of review. After consideration of the recommendation(s) of the
Steering Committee, the Board shall determine and approve the compensation, including
benefits, payable to General Manager, which generally becomes effective July of the fiscal year
of the review. Failure of the District to review and evaluate the performance of the General
Manager pursuant to this section shall not affect the right of the District to terminate the General
Manager's employment and shall not be considered a breach of this Agreement.
Sectjon 7: Mr. Herberg shall be a Participant Member in the Orange County Employees
Retirement System ("OCERS"). District shall pay the required employer's contribution and 0%
of Mr. Herberg's required contribution towards membership in OCERS.
Sectjon 8: District shall reimburse General Manager for all expenses paid by him and
incurred for non-personal, job-related District business that are reasonably necessary to the
General Manager's service to the District. The District agrees to either pay such expenses in
advance or to reimburse the expenses, so long as the expenses are incurred and submitted
according to the criteria established by District's budget and/or normal expense reimbursement
procedures pursuant to applicable policy Resolutions. To be eligible for reimbursement, all
expenses must be supported by documentation meeting the District's policies and requirements
and must be submitted within time limits established by the District. Such reimbursement shall
not be considered a benefit.
Sectjon 9: During the period of this Agreement, it is agreed that General Manager shall
devote his fulltime, skills, labor and attention to said employment. At no time may General
Manager undertake outside activities consisting of consultant work, speaking engagements,
writing, lecturing, or other similar professional activities for money or other consideration without
prior approval of District's Steering Committee. However, the expenditure of reasonable amount
of time for educational, charitable, or professional activities shall not be deemed a breach of
this Agreement if those activities do not conflict or materially interfere with the services
required under this Agreement, and shall not require the prior written consent of the Steering
Committee.
This Agreement shall not be interpreted to prohibit General Manager from making
passive personal investments or conducting private business affairs, provided those activities
are not deemed to be a conflict of interest by state law nor do they conflict or materially interfere
with the services required under this Agreement.
Sectjon 1 O: The Board has the sole discretion to determine whether the District shall pay
General Manager pending an investigation into any alleged misconduct by General Manager. In
the event that the District's Board determines, in its sole discretion, that it is inthe best interest
of the District for General Manager to be placed on paid administrative leave pending such an
investigation, General Manager shall fully reimburse any salary provided for that purpose if the
misconduct for which the General Manager was under investigation results in the General
Manager being convicted of a crime involving an abuse of his office or position as defined in
Section 2 of this Agreement. General Manager shall reimburse such salary to the District no
later than six months after such conviction.
Sectjon 11: In the event that the District provides funds for the legal criminal defense of
General Manager, General Manager shall fully reimburse said funds to the District if the
General Manager is convicted of a crime involving an abuse of his/her office or position as
defined in Section 2 of this Agreement. General Manager shall reimburse such criminal legal
defense fees to the District no later than six months after such conviction.
Section 12: The terms and conditions of employment for General Manager, including
other employment benefits for the General Manager that are not specifically provided for in this
Agreement, shall be governed by the Manual, to the extent that amendments to the Manual
made after the effective date of this Agreement are not inconsistent with the provisions of this
Agreement. In the event of any such inconsistency or conflict, the provisions of this Agreement
shall govern.
Section 13: This Agreement supersedes any and all other prior agreements, either
oral or in writing, between the Parties hereto with respect to the employment of Mr. Herberg by
District, and contains all of the covenants and agreements between the Parties with respect to
that employment in any manner whatsoever. Each Party to this Agreement acknowledges that
no representation, inducement, promise, or agreement, orally or otherwise, has been made by
any Party, or anyone acting on behalf of any Party, which is not embodied herein, and that no
other agreement, statement, or promise not contained in this Agreement or Employment shall
be valid or binding on ether Party.
Sectjon 14: Any notices to be given hereunder by e~her Party to the other shall be in
writing and may be transmitted by personal delivery, or by mail, registered or certified, postage
prepaid, with return receipt requested. Mailed notices shall be addressed to the Parties at the
addresses maintained in the personnel records of District, but each Party may change that
address by written notice in accordance with this Section. Notices delivered personally shall be
deemed communicated as of the date of actual receipt; mailed notices shall be deemed
communicated as of the date of mailing.
Sectjon 15: Any modifications of this Agreement will be effective only if set forth in
writing and signed by the Parties.
Sectjon 16: The failure of either Party to insist on strict compliance with any of the
terms, covenants, or conditions of this Agreement by the other Party, shall not be deemed a
waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or
power at any one time or times be deemed a waiver or relinquishment of that right or power for
all or any other times.
Sectjon 17: If any provision of this Agreement is held by a court of competent jurisdiction
to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in
full force without being impaired or invalidated in any way.
Section 18: This Agreement shall be governed by and construed in accordance with
the laws of the State of California and all applicable ordinances, policies and resolutions.
Sectjon 19: General Manager acknowledges that he has had the opportunity and has
conducted an independent review of the financial and legal effects of this Agreement. General
Manager acknowledges that he has made an independent judgment upon the financial and
legal effects of the Agreement and has not relied upon representation of the District, its elected
or appointed officers and officials, agents or employees other than those expressly set forth in
this Agreement. General Manager acknowledges that he has been advised to obtain, and has
availed himself of, legal advice with respect to the terms and provisions of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this At-Will Employment
Agreement as follows.
APPROVED AS TO FORM:
BRADLEY R. HOGIN
GENERAL COUNSEL
Bradley R. Hogin
"DISTRICT"
ORANGE COUNTY SANITATION DISTRICT
"GENERAL MANAGER"
James D. Herberg Date
"CHAIR, BOARD OF DIRECTORS"
David John Shawver Date