Item 4.4 - Reso Auth Hire of a CalPERS Retired Annuitant with an Exception to the 180-Day Wait PeriodG��� F GWgY
{
C�h IN THE �pJ
DATE:
TO:
FROM:
CONTACT
SUBJECT:
Summary:
City of Poway
COUNCIL AGENDA REPORT
February 5, 2019
APPROVED
APPROVED AS AMENDED
❑
(SEE MINUTES)
DENIED
❑
REMOVED
❑
CONTINUED
RESOLUTION NO. �Ct. 0
Honorable Mayor and Members of the City Council
Tina White, City Manager , (�
Jodene Dunphy, Human Resources & Risk Management Director U�
(858) 668-4440 or Idunphy a?poway.org \J
Adoption of a Resolution Authorizing the Hire of a CaIPERS Retired
Annuitant with an Exception to the 180 -Day Wait Period in
Compliance with Government Code Sections 7522.56 and 21224
There is an urgent and critical need in the Finance Department to fill the Finance Manager position
on a temporary basis while the City recruits for a new Finance Manager. The City desires to hire
the recently retired Finance Manager on a temporary basis until the position is filled through an
extensive recruitment. Government Code Sections 7522.56 and 21224 allow for an agency to
request a waiver to the 180 -day waiting period before a retired annuitant may be re-employed by
an agency that contracts with CalPERS for retirement benefits.
Recommended Action:
Adopt the attached resolution authorizing the hire of retiree Andrew White on a temporary basis,
prior to the 180 -day waiting period following his retirement date in compliance with Government
Code Sections 7522.56 and 21224, while the City recruits for a Finance Manager.
Discussion:
In June 2018, as part of the Fiscal Year 2018-19 budget adoption, the City Council approved
funds to hire a second Finance Manager position to create an overlap period with the City's retiring
Finance Manager of 23 years, Andrew White, before he retired. The goal was to provide a smooth
transition of institutional knowledge and practices in a key position, given the City had just
experienced the retirement of the Interim Finance Director after working for the City of Poway for
almost thirty years.
After a thorough recruitment, the City hired a new Finance Manager on August 13, 2018, who
shadowed the retiring Finance Manager until his retirement date of January 12, 2019. On January
14, 2019, the newly hired Finance Manager gave his notice of resignation to work for another
municipality outside of San Diego County.
California Government Code Sections 7522.56 and 21224 authorize the City to re-employ a
retired CalPERS annuitant without reinstatement from retirement upon a finding that the retired
person has specialized skills needed to perform work of a limited duration. Under the law, a non -
safety retired annuitant is not eligible to be employed for a period of 180 days following the
retirement date unless the City Council certifies the nature of the employment and the
appointment is necessary to fill a critical need before 180 days has passed.
1 of 6 February 5, 2019, Item #4.4
CalPERS 180 -Day Wait Period Exception
February 5, 2019
Page 2
Mr. White has specialized skills after his 23 years as the Finance Manager with the City which are
needed over the next several months to: 1) assist with the mid -year financial review and year-end
forecast for the Fiscal Year 2018-19 budget; 2) assist with developing the City's Fiscal Year 2019-
20 budget; and 3) oversee and monitor the payroll and accounting functions of the Finance
Department. As such, the appointment of Andrew White, on a temporary basis while the City
recruits for a new Finance Manager, would be in compliance with Government Code Sections
7522.56 and 21224.
Along with the resolution, also attached is the entire employment agreement between the City of
Poway and a retired annuitant, outlining the terms of the temporary employment. Prior to the start
date of Mr. White's temporary employment with the City of Poway as retired annuitant, the City
must submit to CalPERS a copy of: 1) the approved and executed resolution; 2) the employment
agreement; 3) the publicly available salary schedule listing the comparable or vacant position,
and 4) the recruitment status for the vacant position pursuant to Government Code Section
21221(h) appointment, including a copy of or web link to the activated recruitment. Government
Code 21221(h) allows a retired annuitant to be hired on an interim basis during a recruitment as
long as all other provisions described in this report are followed.
Environmental Review:
This item is not subject to CEQA review.
Fiscal Impact:
The hourly rate for Mr. White will be $61.55 and is reflected on the City Council approved and
publicly adopted salary schedule for Finance Manager. It is anticipated that Mr. White will work
between 20 and 40 hours per week and will not exceed 960 hours in the fiscal year. The total
estimated cost will not exceed $30,000 and will be paid out of salary savings in the adopted Fiscal
Year 2018-19 budget due to the vacant Finance Manager position.
Public Notification:
None.
Attachments:
A. Resolution for a 180 -Day Wait Period Exception
B. Agreement for Temporary Employment as a Retired Annuitant between the City of
Poway and Andrew White
Reviewed/Approved By: Reviewed By: Approved By:
Wendy Kaserman Alan Fenstermacher Tina M. White
Assistant City Manager City Attorney City Manager
2 of 6 February 5, 2019, Item #4.4
RESOLUTION 19-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA,
FOR A 180 -DAY WAITING PERIOD EXCEPTION TO HIRE A RETIRED ANNUITANT PURSUANT TO
GOVERNMENT CODES SECTIONS 7522.56 AND 21224
WHEREAS, in compliance with Government Code section 7522.56 the Poway City Council
must provide CaIPERS this certification resolution when hiring a retiree before 180 days have
passed since his or her retirement date; and
WHEREAS, Andrew White retired from the City of Poway in the position of Finance
Manager, effective January 12, 2019; and
WHEREAS, section 7522.56 requires that post-retirement employment commence no earlier
than 180 days after the retirement date, which is July 21, 2019, without this certification resolution;
and
WHEREAS, section 7522.56 provides that this exception to the 180 -day wait period shall not
apply if the retiree accepts any retirement -related incentive; and
WHEREAS, the Poway City Council, the City of Poway and Andrew White certify that
Andrew White has not and will not receive a Golden Handshake or any other retirement -related
incentive: and
WHEREAS, the Poway City Council hereby appoints Andrew White as an extra help retired
annuitant to perform the duties of the Finance Manager for the City of Poway under Government
Code section 21224, effective February 11, 2019; and
WHEREAS, the entire employment agreement between Andrew White and the City of
Poway has been reviewed by this body and is attached herein; and
WHEREAS, no matters, issues, terms or conditions related to this employment and
appointment have been or will be placed on a consent calendar; and
WHEREAS, the employment shall be limited to 960 hours per fiscal year; and
WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed
the maximum monthly base salary paid to other employees performing comparable duties, divided
by 173.33 to equal the hourly rate; and
WHEREAS, the maximum base salary for this position is $10,670 monthly and the hourly
equivalent is $61.5589, and the minimum base salary for this position is $8,778 monthly and the
hourly equivalent is $50.6433; and
WHEREAS, the hourly rate paid to Andrew White will be $61.5589; and
WHEREAS, Andrew White has not and will not receive any other benefit, incentive,
compensation in lieu of benefit or other form of compensation in addition to this hourly pay rate; and
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Poway hereby
certifies the nature of the employment of Andrew White as described herein and detailed in the
3 of 6 ATTACHMENT A February 5, 2019, Item #4.4
Resolution No. 19 -
Page 2
attached employment agreement and that this appointment is necessary to fill the critically needed
position of Finance Manager for the City of Poway by February 11, 2019, because the Finance
Manager is instrumental and key to ensuring the City's fiscal health by assisting with the mid -year
financial review and year-end forecast for the Fiscal Year 2018-19 budget; developing the City's
Fiscal Year 2019-20 budget; and overseeing and monitoring critical functions.
PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway, California,
at a regular meeting this 5th day of February 2019.
Steve Vaus, Mayor
ATTEST:
A. Kay Vinson, Interim City Clerk
STATE OF CALIFORNIA )
)SS
COUNTY OF SAN DIEGO )
I, A. Kay Vinson , Interim City Clerk of the City of Poway, California, do hereby certify under
penalty of perjury that the foregoing Resolution No. 19-*** was duly adopted by the City Council at a
meeting of said City Council held on the 5th day of February 2019, and that it was so adopted by
the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
A. Kay Vinson, Interim City Clerk
City of Poway
4 of 6 February 5, 2019, Item #4.4
(ED
CITY OF POWAY
Retired Annuitant — Employment Agreement
Government Code (GC) sections 7522.56 and 21224 permit employees who retire and receive
CalPERS retirement benefits to accept limited, post-retirement, employment without reinstatement
or loss or interruption of benefits. A retired person (Retired Annuitant), whose employment without
reinstatement is authorized by Government Code Sections 7522.56 and 21224, shall acquire no
service credit or retirement rights unless he/she reinstates from retirement.
I. Conditions of Limited Appointment
Post-retirement service must be attributable to either an emergency event (to prevent stoppage of
public business) or the Retired Annuitant has skills needed to perform work of limited duration (GC
7522.56.c).
II. Length of Appointment
Retired Annuitants are restricted to working a maximum of 960 hours within a fiscal year (GC
7522.56.d) and both the City and the Retired Annuitant are responsible for tracking hours of
employment. Andrew White has been appointed to serve as a Finance Manager on an, as -needed,
interim basis, beginning February 11, 2019 and ending no later than the completion of the
recruitment and filling of the vacant Finance Manager position.
Employing a retiree in excess of the 960 hours limit per fiscal year may jeopardize the retiree's
retirement benefits and/or require reinstatement from retirement.
Andrew White will immediately notify the City of Poway should he perform work as a Retired
Annuitant for any other CalPERS member agency during the term of this agreement.
_(Initials)
III. Compensation
The rate of pay for these services shall be no less than the minimum and no more than the
maximum rate of pay for other employees performing comparable functions (GC 7522.56.d).
Based upon the approved Salary Schedule for classifications within the Management/Confidential
Group, the City's hourly rate of pay for a Finance Manager ranges from $50.6433 to $61.5589. For
the term of this agreement, Andrew White will be compensated at an hourly rate of $61.5589, which
is within the approved, allowable pay range for this position.
Retired Annuitants are not eligible for any other benefit, incentive, compensation in lieu of benefit
or other form of compensation in addition to this hour pay rate including holidays, sick leave,
vacation or any employee leave or benefit program.
IV. Unemployment Insurance Compensation
Retired Annuitants are ineligible to serve or be employed by a public employer if, during the 12 -
month period prior to an appointment, the Retired Annuitant received any unemployment insurance
compensation arising out of prior employment with a public employer (GC 7522.56.e.1).
Furthermore, a Retired Annuitant that accepts employment, and has received unemployment
insurance compensation within the 12 -month period preceding employment, must terminate
employment effective the last day of the current payroll period. The Retired Annuitant shall not be
eligible for reappointment for a period of 12 months following the termination date (GC
7522.56.e.2).
5 of 6 ATTACHMENT B February 5, 2019, Item #4.4
In accordance with these provisions, Andrew White has not received unemployment insurance
compensation during the 12 -month period preceding this appointment. (Initial)
V. 180 -Day Rule
A Retired Annuitant is not eligible to be employed for a period of 180 days following the date of
retirement, unless one of the following conditions is satisfied for a local government agency:
The City of Poway certifies the nature of the employment and that the appointment is
necessary to fill a critically needed position before 180 days have passed and the
appointment has been approved by the governing body of the employer in a public meeting.
The appointment may not be placed on a consent calendar. (GC 7522.56 (f)1) Resolution
# approved on (if applicable.)
The retiree is a public safety officer or firefighter hired to perform a function or functions
regularly performed by a public safety officer or firefighter. (GC 7522.56(f)4)
Additionally, a Retired Annuitant who accepted a retirement incentive upon retirement shall not be
eligible for employment for a period of 180 days following the date of retirement and the provisions
of GC 7522.56(f) shall not apply. (GC 7522.56(g))
Hiring a retiree prior to their meeting the required waiting periods may jeopardize the retiree's
retirement benefits and/or require reinstatement from retirement.
Andrew White retired from public service effective January
of February 11, 2019, the terms of this appointment are in
requirements. (Initials)
VI. Acknowledgement and Agreement
12, 2019. Based upon an effective date
compliance with the 180 -day statutory
I, Andrew White, Retired Annuitant, accept a limited appointment as a Finance Manager with the
City of Poway. By signing this agreement, I acknowledge that I am in compliance with the statutory
provisions contained herein, and I further agree to maintain compliance for the duration of this
agreement.
Retired Annuitant
Approved By:
Date
Director of Human Resources/Risk Management Date
City of Poway
City Manager
City of Poway
Date
6 of 6 February 5, 2019, Item #4.4