Former San Bernardino County Chief Executive Officer Leonard X. Hernandez negotiated a severance package so generous that it allows him to remain on the payroll for up to another year or more, continue to accrue vacation and sick time, and even receive a raise.
Hernandez, a resident of Chino, resigned Aug. 10 after three years as CEO, amid allegations he was having an inappropriate relationship. But in a news release issued by the county at the time, Hernandez was quoted as saying his departure was due to “an urgent family health issue that requires my immediate and undivided attention.”
According to the nine-page separation agreement obtained by the Southern California News Group, Hernandez will remain on the county payroll through Nov. 22, 2024, or until his accrued vacation, holiday, and administrative leave time is exhausted, whichever comes first. Until he officially departs, Hernandez will continue to accrue additional leave time and receive one across-the-board 3% wage increase on Feb. 24, 2024, which will increase the size of his eventual pension.
Eyebrow-raising raise
Todd Maddison, director of research for the government accountability website Transparent California, said in an email Friday that public separation agreements — like any public benefit — typically are more generous than what is offered in the private sector.
But allowing Hernandez to receive a 3% raise in February raised his eyebrows.
“How wacko is that?” Maddison said. “In private industry, I think the standard was usually that such raises only applied to active employees, meaning you had to be working, on vacation, or taking some form of temporary leave to apply.”
County spokesman David Wert said the agreement was in accordance with the county’s regular payroll practices that apply to any departing employee.
The agreement, however, notes that Hernandez’s benefits exceed what he was otherwise entitled to receive on separation from employment, and that the benefits were provided as “consideration in exchange for executing this agreement.”
Retirement pay
Additionally, the county will continue to make contributions to the San Bernardino County Employees Retirement Association on Hernandez’s behalf for as long as he remains on the county payroll. Once Hernandez concludes his employment, the county will contribute 80% of the cash value of Hernandez’s accrued sick time, not to exceed 1,500 hours, to his retirement medical trust fund.
Hernandez, who was earning a base salary of $391,768 at the time of his resignation, also will continue to receive annual medical, dental and life insurance benefits from the county totaling nearly $221,000.
County officials said Hernandez has 741.5 hours of accrued vacation time, 212 hours of accrued holiday time, and 144 hours of accrued administrative leave he has to use within the next 14 months. Meanwhile, he will continue accruing, on a biweekly basis, 7.3 hours of sick time, 12.3 hours of vacation time, and from now through 2024 upwards of 288 hours of holiday time and 160 hours of administrative leave in 2024.
Wert noted that the agreement makes it clear that if Hernandez accepts employment elsewhere before his leave time is exhausted, his remaining leave will be cashed out and he will no longer accrue additional leave time, pension time, or receive the across-the board-pay increase, nor will he continue to receive employer-paid benefits from the county.
Additional terms
Hernandez has agreed not to seek employment, reinstatement or re-employment with the county ever again, and the county will not contest unemployment benefits should Hernandez apply for them, according to the agreement.
The agreement also absolves the county from any and all claims of wrongdoing or liability to Hernandez, and Hernandez has agreed not to make any public or private statements, comments or communications disparaging the county or that reveal confidential or other communications with the Board of Supervisors or county management and staff.
Additionally, the agreement calls for Hernandez to make himself available to cooperate with the county in connection with any legal matters that may arise
County protected
Mary Jane Olhasso, the county’s former assistant executive officer and a CPA who retired in 2019, said the agreement, by all appearances, serves a two-fold purpose: to allow Hernandez more paid time with the county in order to increase his retirement package, and to insulate the county from liability.
“This agreement looks to me well-written and protects the county,” Olhasso said in a telephone interview. “They agreed to leave him on the payroll so he could accumulate more quarters for the retirement system, and it protected the county pretty well.”
Rise to power
Hernandez was appointed CEO in September 2020. Prior to that he served as the county’s chief operating officer, deputy executive officer, interim museum director, county librarian and head of the Fontana library system. During a stopover in Riverside County, Hernandez served as the city of Riverside’s director of libraries. His contract as CEO was extended through 2028 in April 2022.
Even before Hernandez ascended to power as the county’s top administrator, many of his fellow department heads and administrators grew wary of his management style, resulting in an exodus of dozens of administrators and executive staff in the past three years, according to some of those former employees who asked to not be identified.
Among those departing was Olhasso, who said she retired in 2019 over Hernandez’s management style.
“I would have stayed longer had it not been for the contention generated by this individual,” she said.
