Salary Adjustment Agreement - PDF

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					              SACRAMENTO METROPOLITAN AIR QUALITY
                     MANAGEMENT DISTRICT



                                   For Agenda of: October 26, 2006



To:           Board of Directors

From:         Jeff Starsky, Chair
              Sacramento Metropolitan Air Quality Management District

Subject:      Salary Adjustment and First Amendment to Employment
              Agreement with the Air Pollution Control Officer/Executive
              Director



Recommendations:

        Approve the attached resolution granting a salary adjustment for the
        Air Pollution Control Officer/Executive Director of 5%, retroactive
        to August, 2006. The 5% salary adjustment will increase Mr. Greene’s
        salary from $12,079.08 per month to $12,682.86 per month (or
        annually from $144,948.96 to $152,194.32);

        Approve amendments to the District’s Employment Agreement with
        Larry Greene, Air Pollution Control Officer/ Executive Director;

        Authorize the Chairperson to execute the amended agreement on
        behalf of the Board of Directors.



Background:

The District retains Larry Greene as its Air Pollution Control Officer/
Executive Director pursuant to a three-year Employment Agreement
entered into on July 26, 2004 through July 31, 2007. Under this
Agreement, starting in August of 2006, the District Board may grant annual
Board of Directors
October 26, 2006
Page 2



salary increases of up to 5%. The Board may use performance, the District’s
financial condition or any other relative criteria to establish future salary
increases.

In addition, Mr. Greene wishes to clarify provisions in his Employment
Agreement (attached) regarding his health insurance and transportation
allowance and to make other revisions necessitated by the change in Board
structure from a 9-member Board to a 14-member Board.

Discussion:

The salary increase is based upon Mr. Greene’s exceptional performance
over the past year. Some of the highlights are:

      Implementing a contract with the Tree Foundation and UCD to study
      the potential for tree planting as a SIP strategy.
      Securing a high level of visibility for the potential of quantifying the
      Blueprint and other smart growth land use decisions to be quantified
      as SIP strategies.
      Working toward the development of a remote sensing program.
      A strategy for dealing with particulate emissions which includes a
      voucher based wood stove program and the development of several
      rule efforts over the next several years.
      The development of required agriculture related rules.
      The continued development of the 8-Hour SIP.
      Completed the asbestos mapping effort with the State Geologist.
      Development of a comprehensive Environmental Justice Program.
      Development of a District Climate Change Program.
Board of Directors
October 26, 2006
Page 3



The following changes/clarifications would be made to the Employment
Agreement:

1.    Amendments to various provisions

      The Board of Directors previously determined that Mr. Greene's title
      should be revised to be "Air Pollution Control Officer/Executive
      Director," since he interacts with entities that do not understand the
      role and authority of an APCO and "Executive Director" is a more
      universally understood title. The contract language will be revised to
      reflect this change in title. No change in duties or responsibilities is
      proposed.

2.    Amendments to Section 2.4.2 (Vote requirements)

      a.    Existing Language: Section 2.4.2 subsection ii. currently reads
            as follows:

            "If the Board determines by a five-ninths vote to terminate
            the APCO, it must notify the APCO of this determination in
            writing."

      b.    Discussion:

            The contract amendment will delete the requirement for a five-
            ninths vote and replace it with a requirement for an eight-
            fourteenths vote so that it is consistent with the Board’s new
            membership.

3.    Amendments to Section 2.4.3 (Vote requirements)

      a.    Existing language: Section 2.4.3 currently reads as follows:
Board of Directors
October 26, 2006
Page 4

            "The District Board may terminate this Agreement for any
            other reason by a six-ninths vote of the Board. If the Board
            terminates Larry Greene under this section, it will pay him a
            lump sum cash payment equal to accrued vacation balances plus
            six (6) months aggregate salary.

            The Board will also pay the amount specified in paragraph
            2.6.2.i. for the same six month period, or until Mr. Greene finds
            other employment, whichever occurs first."

      b.    Discussion:

            The contract amendment will delete the requirement for a six-
            ninths vote and replace it with a requirement for a nine-
            fourteenths vote so that it is consistent with the Board’s new
            membership.

4.    Amendments to Section 2.6.2, subsection i (Cafeteria Plan).

      a.    Existing Language: Section 2.6.2, subsection i. currently reads
            as follows:

            "Insurance: The District will pay $550.00 for the
            cafeteria plan offered to other District Management
            Employees. Mr. Greene may use the $550.00 to cover
            the costs of the cafeteria plan, or may opt to forego any
            plan benefits (except dental benefits), and collect the
            remaining portion of the $550.00 in cash. If Mr. Greene
            elects to forego health insurance, he must provide proof
            that he maintains alternative health insurance coverage.
            The $550.00 amount will be automatically increased to
            equal any increases in the health care contribution paid
            to other District employees."
Board of Directors
October 26, 2006
Page 5

      b.    Proposed Revision: This contract amendment deletes the
            existing language in its entirety and replaces it with the
            following:

            "Insurance: Mr. Greene will be entitled to the same
            cafeteria plan benefits offered to other District
            Management Employees hired as of July 26, 2004 and will
            meet any obligations (such as proof of insurance) imposed
            on the employees."

      c.    Discussion:

            In July, 2005, the District increased the cafeteria plan
            to $740 (with family), but decreased the “cash out” limit
            from $550 to $490 for existing employees. This
            amendment will clarify that Mr. Greene is subject to the
            same cash out as all other employees and will ensure that
            his future cafeteria plan benefits and obligations track
            any revisions made to the plan for all other District
            employees.

5.    Amendments to section 2.6.2, subsection vii (Transportation
      allowance)

      a.    Existing Language: Section 2.6.2, subsection vii. currently
            reads as follows:

            "District will pay Mr. Greene a transportation allowance
            of $400 per month. He may use the allowance to offset
            the cost of any form of alternative transportation, or
            for the purchase, lease, operation and maintenance of a
            vehicle for his use in conducting District business. If Mr.
            Greene purchases a vehicle, he will be responsible for
Board of Directors
October 26, 2006
Page 6

            paying liability, property damage, and comprehensive
            insurance coverage for the vehicle and will further be
            responsible for all expenses attendant to the purchase,
            operation, maintenance, repair, and regular replacement
            of the vehicle."

      b.     Proposed Language: This contract amendment adds the
            following language to the end of section 2.6.2, subsection vii.:

            “Notwithstanding the foregoing, Mr. Greene will be
            entitled to the same mileage reimbursement for out-of-
            county travel that District Management Employees
            receive."

      c.    Discussion:

            In addition to the language cited above, section 2.6.2,
            subsection viii. of the contract states that Mr. Greene is
            entitled to "all benefits received by management
            employees that are greater than provided in the
            Agreement, unless otherwise specified." All management
            employees are entitled to receive a mileage
            reimbursement for miles traveled on District business.
            Since the transportation allowance did not specifically
            address mileage, the District staff has always
            interpreted this second provision as allowing Mr. Greene
            to receive the mileage allowance paid to management.
            Recently, staff has raised the concern that outside
            auditors might disagree with this interpretation of the
            contract, arguing that the statement in subsection vii
            that Mr. Greene is responsible for all expenses
            “attendant to…operation,” includes mileage.
Board of Directors
October 26, 2006
Page 7

             The proposed language will clarify that Mr. Greene is
             entitled to mileage. Allowing a mileage payment is also
             consistent with the transportation allowance and mileage
             benefits he received in Yolo-Solano and with the benefits
             allowed by Sacramento City and County for employees
             that receive transportation allowances.

6.    New Section 2.10 (Effective Dates)

      a.     Proposed language: A new section 2.10 will be added to the
             contract to address the effective dates of the various
             amendments:

             The effective date of the amendments to the Cafeteria Plan in
             Section 2.6.2, subsection i is July 1, 2005. The effective date
             of the amendments to the Transportation Allowance in Section
             2.6.2, subsection vii is July 26, 2004 (the date the contract was
             originally signed). The effective date of the amendments to
             section 2.4.2 and 2.4.3 is the date the Board approves the
             contract amendment.

      b.     Discussion:

             This amendment ties the effective date on the cafeteria plan
             to the effective date applicable to all employees. It also allows
             the mileage payment amendment to relate back to the first
             date of the contract, since the amendment simply confirms
             prior interpretations of the contract.

Conclusion

As a result of the positive performance appraisal given to Mr. Greene by the
District Board of Directors, it is recommended that Mr. Greene’s overall job
Board of Directors
October 26, 2006
Page 8



performance be rated excellent, and that he be granted a salary adjustment
of 5% retroactive to August 1, 2006.

In addition, it is recommended that the Board approve the proposed
amendments to the Employment Agreement for Mr. Greene.




                                           _______________________
                                           Jeff Starsky, Chairperson
                                           Board of Directors
                                           Sacramento Metropolitan Air
                                           Quality Management District
                   AQMD RESOLUTION NO. ______



      BE IT RESOLVED AND ORDERED that the Chairperson of the Board

of Directors is hereby authorized and directed to execute an Amendment to

the Employment Agreement, dated July 26, 2004, between the Sacramento

Metropolitan Air Quality Management District and Larry Greene, in the form

hereto attached, authorizing a 5% salary increase and making other

amendments to the July 2004 Employment Agreement, and to do and

perform everything necessary to carry out the purpose of this Resolution.



      ON A MOTION by Director _____________, seconded by Director

_______________, the foregoing Resolution was passed and adopted by

the Board of Directors of the Sacramento Metropolitan Air Quality

Management District, this 26th day of October, 2006, by the following vote,

to wit:




                                      _________________________
                                      Chairperson, Board of Directors
                                      Sacramento Metropolitan Air
                                      Quality Management District



(SEAL)

ATTEST:_____________________
          Clerk of the Board

				
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