HOSPITAL PAY FLAP REVIVED; ADMINISTRATOR ACCUSES BOARD OF BREAKING CONTRACT OVER BENEFITS.

Byline: Karen Maeshiro Daily News Staff Writer

Reigniting the feud over his six-figure salary, Antelope Valley Hospital Administrator Bob Harenski is accusing hospital directors of breach of contract and is refusing to pay back $100,000 they say he was overpaid last year for a retirement plan.

In a letter sent by his attorney to the hospital board president Wednesday, Harenski claims that the board failed to review his salary, establish criteria for or pay him his bonus, and adopt a supplemental retirement plan by certain deadlines set up in the contract adopted six months ago.

``Part of the problem is that when this contract was negotiated, the idea was it was going to put an end to a lot of the acrimony that was generated by certain members of the board,'' said Harenski's attorney, Michael Faber. ``Mr. Harenski has been living up to the letter and spirit of the contract, but the hospital, in particular two members of the board, have continued to violate both the letter and spirit of the contract, and make it very difficult for Mr. Harenski to do his job.''

Harenski's claims were made in a letter sent by Faber by fax to hospital board Chairman Dr. John Manning before the board's special meeting Wednesday.

Faber's letter also says the Dec. 21 settlement in which Harenski agreed to repay $100,513 over a four-year period for overpayment last year for a retirement plan in exchange for a new contract is no longer valid.

In the letter, Harenski demands that biweekly deductions of nearly $1,000 from his paycheck stop and that the hospital refund to him the money previously deducted.

``The contract says it supercedes all prior agreements. Our position is because the contract makes no exception for a prior settlement agreement, (the settlement agreement) becomes invalid,'' Faber said.

The letter also demands that the hospital perform its contractual obligations by July 23 or Harenski will likely ask that the dispute be handed over to an independent arbitrator.

The board at Wednesday's meeting was scheduled to consider supplemental retirement benefits for Harenski and five vice presidents, and bonus pay for the vice presidents.

The board decided it was ``not appropriate'' at this time to have any additional retirement plan for Harenski or additional compensation for the administrative staff, Manning said.

As for Harenski's letter, Manning would only say, ``I disagree with the interpretation.''

Directors Steve Fox and Deborah Rice, the two board members to whom Faber referred and who have been persistent critics of Harenski's salary arrangements, could not be reached Thursday for comment.

The board has scheduled another special meeting today at noon to discuss Harenski's personnel evaluation, possible litigation, and an incentive bonus for the embattled administrator.

According to Faber's letter, Harenski's compensation was to have been reviewed by March 30; criteria on which to base his bonus was to have been determined by Jan. 30, after which a bonus was to be paid by June 30; and the board also was to have considered no later than March 15 adoption of a supplemental retirement program for Harenski, the letter said.

The retirement plan overpayment revolves around a change of retirement plans in 1996 for Harenski and four other administrators. In Harenski's situation, money was taken out of an old retirement plan and given to him an an annuity in a one-time payment of $150,000, board members said.

Harenski and the board disagree as to what was the proper way to continue funding his retirement plan. Harenski says the board agreed in 1996 to have a portion of the $150,000 carried on in subsequent years with an increase in his base pay to calculate future benefits. The board says that was never the intent.

Harenski's four-year contract could pay him up to $379,419 a year, less than the $536,000 he made in 1997. It provides a base pay of $285,000 annually, with an incentive plan that would award him a bonus of up to 20 percent if the hospital meets goals set by the board, and a $1,200 a month car allowance.

In addition, he will get six weeks of vacation, 12 sick days and 10 holidays. He is allowed to cash in half of the vacation and sick days, for a total of $23,019.

SALARY HISTORY

Antelope Valley Hospital Administrator Bob Harenski's salary history:

Date Amount % increase

Jan. 4, 1993 $180,000 -

June 26, 1994 $195,660 8.7

March 31, 1996 $213,257 9.0

Nov. 24, 1996$279,147 31.0

Nov. 24, 1996 $363,000 30.0 (x)

March 30, 1997 $384,779 5.7

Dec. 17, 1997 $285,000 -26.0

(x) Related to termination of retirement plan.

CAPTION(S):

Box

BOX: SALARY HISTORY (See text)