Loading...
Item 9 - Approving a CalPERS 180-day Waiting Period Exception to Hire a Retired AnnuitantJanuary 17, 2023, Item #9 DATE: TO: FROM: CONTACT: SUBJECT: Summary: AG EN DA REPORT City of Poway CITY COUNCIL January 17, 2023 Honorable Mayor and Members of the City Council Jodene Dunphy, Director of Human Resources and Risk Management Jodene Dunphy, Director of Human Resources and Risk Management (858) 668-4413 jdunphy@poway.org Approving a Cal PERS 180-day Waiting Period Exception to Hire a Retired Annuitant The City of Poway is in the process of recruiting for the Director of Finance position. The City desires to hire a retired annuitant on a temporary basis while recruiting for the position. Government Code Sections 7522.56 and 21221 (h) allow for an agency to request a waiver to the 180-day waiting period, by way of City Council approval, before a retired annuitant may be employed in a Director level position by an agency that contracts with Cal PERS for retirement benefits. Recommended Action: It is recommended the City Council approve the resolution waiving the 180-day waiting period to hire a retired annuitant pursuant to Government Code Sections 7522.56 and 21221 (h). Discussion: California Government Code Sections 7522.56 and 21221 (h) authorize the City to employ a retired Cal PERS 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 by a CalPERS contracting agency 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 critically needed position before 180 days has passed. Tim McDermott has more than twenty-nine years of public sector finance experience. He retired from the City of Santee on September 23, 2022, after twenty-one years as the Director of Finance/City Treasurer. Prior to the City of Santee, he worked for the City of Temecula, including seven years as the Assistant Director of Finance. Before he was working in government, he worked for two public accounting firms primarily performing audits of government agencies. Based on a long and successful career in finance serving public agencies, Mr. McDermott has the specialized knowledge and skills needed to temporarily step into the role of Director of Finance with the City of Poway. Along with the resolution, also attached is the employment agreement between the City of Poway and 1 of7 January 17, 2023, Item #9 Mr. McDermott, which outlines the terms of the temporary employment. To comply with the Government Code and hire Mr. McDermott as a retired annuitant, the City must submit to CalPERS a copy of: 1) an approved and executed resolution; 2) the employment agreement; and 3) the publicly available salary schedule listing the comparable or vacant position. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The total estimated cost to hire Tim McDermott as a retired annuitant for the position of Interim Director of Finance is anticipated not to exceed $90,000 and will be paid out of salary savings from the current Director of Finance vacancy in the Finance department budget. Public Notification: None. Attachments: A. Resolution approving the 180-day waiting period exception to hire a retired annuitant pursuant to Government Code Sections 7522.56 and 21221 (h) Reviewed/Approved By: Wendy Kaserman Assistant City Manager 2 of7 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch~ City Manager January 17, 2023, Item #9 RESOLUTION NO. 23-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 21221(h) WHEREAS, in compliance with Government Code section 7522.56 of the Public Employees' Retirement Law, the Poway City Council must provide CalPERS this certification resolution when hiring a retiree before 180 days has passed since their retirement date; WHEREAS, Tim McDermott retired from the City of Santee in the position of Director of Finance/City Treasurer, effective September 23, 2022; WHEREAS, Tim McDermott previously held the position of Director of Finance/City Treasurer with the City of Santee for twenty-one years; WHEREAS, Government Code section 7522.56 requires that post-retirement employment commence no earlier than 180 days after the retirement date, which is March 23, 2023 without this certification resolution; WHEREAS, Government Code section 7522.56 provides that this exception to the 180-day wait period shall not apply if the retiree accepts any retirement-related incentive; WHEREAS, the Poway City Council, the City of Poway and Tim McDermott certify that Tim McDermott has not and will not receive a Golden Handshake or any other retirement-related incentive; WHEREAS, an appointment under Government Code section 21221 (h) requires the retiree is appointed into the interim appointment during recruitment for a permanent appointment; WHEREAS, the governing body has authorized the search for a permanent appointment in December 2022; WHEREAS, the Poway City Council hereby appoints Tim McDermott as an interim appointment retired annuitant to the vacant position of Director of Finance for the City of Poway under Government Code section 21221 (h), effective January 18, 2023; WHEREAS, this Government Code section 21221(h) appointment shall only be made once and therefore will end on July 18, 2023; WHEREAS, the entire employment agreement between Tim McDermott and the City of Poway has been reviewed by this body and is attached hereto as Exhibit A; WHEREAS, no matters, issues, terms or conditions related to this employment and appointment have been or will be placed on a consent calendar; WHEREAS, the employment shall be limited to 960 hours per fiscal year for all CalPERS employers; WHEREAS, the compensation paid to retirees cannot be less than the minimum nor 3 of7 ATTACHMENT A January 17, 2023, Item #9 exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; WHEREAS, per the current Management/Confidential Salary Schedule, attached hereto as Exhibit B, the minimum monthly base salary for this position is $12,710 and the hourly equivalent is $73.3313, and the maximum monthly base salary for this position is $17,795 and the hourly equivalent is $102.6635; WHEREAS, the hourly rate paid to Tim McDermott will be $100.00; and WHEREAS, Tim McDermott 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. NOW, THEREFORE, BE IT RESOLVED THAT the Poway City Council hereby certifies the nature of the employment of Tim McDermott as described herein and detailed in the attached employment agreement and that this appointment is necessary to fill the critically needed position of Director of Finance for the City of Poway by January 18, 2023 because Mr. McDermott has specialized skills after serving as a Director of Finance with the City of Santee for twenty-one years which are needed over the next several months to address the financial matters of the City of Poway. PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 17th day of January 2023 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 4 of7 January 17, 2023, Item #9 EXHIBIT A CITY OF POWAY Retired Annuitant -Employment Agreement Government Code (GC) sections 7522.56 and 21221(h) 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 21221(h), shall acquire no service credit or retirement rights unless they reinstate 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 Tim McDermott has been appointed to serve as Interim Director of Finance on an as-needed, interim basis, beginning January 18, 2023, in order to address the financial matters of the City. 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. Tim McDermott will immediately notify the City of Poway should they 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 an Interim Director ofFinance from $73.3313 to $102.6635. For the term of this agreement, Tim McDermott will be compensated at an hourly rate of $100.00, 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). In accordance with these provisions, Tim McDermott has not received unemployment insurance compensation during the 12-month period preceding this appointment. __ (Initials) 5 of7 January 17, 2023, Item #9 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)l) Resolution #23-__ approved on January 17, 2023 (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 meeting the required waiting periods may jeopardize the retiree's retirement benefits and/or require reinstatement from retirement. Tim McDermott did not receive a retirement incentive upon retirement. Mr. McDermott retired from public service effective September 23, 2022. Based upon an effective date of January 18, 2023, the terms of this appointment are in compliance with the 180-day statutory requirements. __ (Initials) VI. Acknowledgement and Agreement l, Tim McDermott, Retired Annuitant, accept a limited appointment as a Interim Director of Finance 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 Date Approved By: Director of Human Resources/Risk Management Date City of Poway City Manager Date City of Poway 6 of7 January 17, 2023, Item #9 EXHIBIT B City of Poway Management/ Confidential Salary Schedule Effective Sectember 20, 2022 Classification Title I Approx. Monthly I Salarv Ran•e City Manager 22,664 lr.,nHn 1 Cvomn> At-WHI Min-Max Min Assistant City Manager 13,346 -18,684 76.9976 Director of Community Services 12,710-17,795 73.3313 Director of Development Services 12,710-17,795 73.3313 Director of Finance 12,710-17,795 73.3313 Director of Human Resources & Risk Management 12,710 -17,795 73.3313 Director of Public Works 12,710-17,795 73.3313 Fire Chief 12,710-17,795 73.3313 Classification Title I Grade I Approx. Monthly I Step 1 Salarv Ran~• Grouc 2A Exemct At-Will Assistant Director of Public Works Utilities 731 9,937 -12,080 57,3277 Assistant Director of Public Works Operations 731 9,937 -12,080 57.3277 Assistant Director of Finance Operations 731 9,937 · 12,080 57.3277 City Clerk 681 8,778 -10,670 50.6411 City Engineer 780 11,139-13,540 64.2668 City Planner 731 9,937 -12,080 57.3277 Deputy Fire Chief 780 11,139-13,540 64,2668 Deputy Fire Marshal 620 7,503 -9,121 43,2917 Finance Manager 681 8,778 -10,670 50,6411 Fire Battalion Chief (not at-will/2912 hrs/yr) 570 9,285 -11,286 38.2636 Parks and Trails Area Manager 560 6,470 -7,865 37.3303 Principal Engineer -Utilities 731 9,937 -12,080 57.3277 Public Works Operations Manager 681 8,778 -10,670 50.6411 Recreation Area Manager 560 6,470 -7,865 37.3303 Recreation Area Mana~er {Y-Rated) 681 8,778 -10,670 50.6411 Revenue and Operations Manager 681 8,778 -10,670 50.6411 Water Treatment Plant Manager 681 8,778 -10,670 50.6411 Group 2B Exemct Accountant 481 5,326 -6,475 30,7255 Associate Civil Engineer 602 7,261 -8,826 41.8893 Associate Planner 521 5,902 -7,174 34.0517 Community Outreach Coordinator 571 6,678 -8,117 38.5265 Deputy City Clerk 571 6,678 -8,117 38.5265 GIS Analyst 531 6,050 -7,354 34,9030 Information Technology Analyst 531 6,050 -7,354 34,9030 Network & Computer Systems Analyst 550 6,312 -7,673 36.4198 Management Analyst 531 6,050 -7,354 34.9030 Network & Computer Systems Administrator 631 7,744 -9,413 44.6789 Revenue and Operations Supervisor 571 6,678 -8,117 38.5265 Senior Accountant 561 6,515-7,919 37.5868 Senior Civil Engineer 682 8,871 -10,782 51.1773 Senior Code Compliance Officer 501 5,618 -6,829 32.4109 Senior Fire Safety Inspector 541 6,201 -7,537 35,7756 Senior Human Resources Analyst 571 6,678-8,117 38.5265 Senior Management Analyst 571 6,678-8,117 38.5265 Senior Planner 581 6,845 -8,320 39.4897 Special Projects Engineer 571 6,678 -8,117 38.5265 Utilities Administrator 631 7,744 -9,413 44.6789 Water Utilities Distribution Supervisor 640 7,884 -9,583 45.4833 Group 3 Non-Exempt Assistant Engineer 531 6,050 -7,354 34,9030 Assistant Planner 491 5,481 -6,662 31.6204 Code Compliance Officer 461 5,090 -6,186 29.3627 Construction Maintenance Supervisor 501 5,618 -6,829 32.4109 Facilities Maintenance and Special Districts Supervisor 501 5,618-6,829 32.4109 Fire Safety Inspector 461 5,090 -6,186 29.3627 Fleet Maintenance Supervisor 521 5,902 -7,174 34.0517 Management Assistant 491 5,481 -6,662 31.6204 Parks Maintenance Supervisor 480 5,310 -6,455 30.6387 Senior Accounting Technician 460 5,054 -6,144 29.1623 Utility Systems Supervisor 650 8,081 -9,822 46.6204 Wastewater Utilities Suoervisor 620 7,504-9,121 43.2917 Group 4 Non-Exemct Accounting Technician II 360 3,948 -4,799 22.7815 Administrative Assistant Ill 331 3,692 -4,488 21.3002 Executive Assistant to the City Manager 451 4,965 -6,035 28.6465 Human Resources Technician I 412 4,498 -5,468 25.9523 Human Resources Technician II 451 4,965 -6,035 28.6465 Senior Administrative Assistant-Confidential 380 4,148 -5,042 23.9348 7of7 Hourly I Step 2 I Step 3 I 60.1939 63.2037 60.1939 63.2037 60.1939 63.2037 53.1732 55.8319 67.4801 70.8541 60.1939 63.2037 67.4801 70.8541 45.4563 47.7291 53.1732 55.8319 40.1767 42.1856 39.1968 41.1567 60.1939 63.2037 53.1732 55.8319 39.1968 41.1567 53.1732 55.8319 53.1732 55.8319 53.1732 55.8319 32.2616 33.8747 43.9837 46.1827 35.7528 37.5413 40.4510 42.4745 40.4510 42.4745 36.6466 38.4798 36.6466 38.4798 38.2411 40.1535 36.6466 38.4798 46.9109 49,2574 40.4510 42.4745 39.4644 41.4385 53.7360 56.4230 34.0300 35.7324 37.5628 39.4418 40.4510 42.4745 40.4510 42.4745 41.4623 43.5364 40.4510 42.4745 46,9109 49.2574 47.7575 50.1454 36.6466 38.4798 33,2000 34.8609 30,8295 32.3718 34,0300 35.7324 34,0300 35.7324 30,8295 32.3718 35.7528 37.5413 33.2000 34.8609 32.1708 33.7797 30.6206 32.1520 48.9514 51.3990 45.4563 47.7291 23.9206 25.1167 22.3643 23.4831 30.0776 31.5822 27.2488 28.6119 30.0776 31.5822 25.1318 26.3887 Step 4 I 66.3639 66.3639 66.3639 58.6235 74.3968 66.3639 74.3968 50.1156 58.6235 44.2948 43.2145 66.3639 58.6235 43.2145 58.6235 58.6235 58.6235 35.5684 48.4920 39.4178 44.5975 44.5975 40.4032 40.4032 42.1601 40.4032 51.7195 44.5975 43.5098 59.2440 37.5184 41.4133 44.5975 44.5975 45,7124 44.5975 51.7195 52,6527 40.4032 36.6033 33.9898 37.5184 37.5184 33.9898 39.4178 36.6033 35.4678 33.7587 53.9690 50.1156 26,3725 24,6570 33.1608 30.0420 33.1608 27.7073 Max 107.7966 102.6635 102.6635 102.6635 102.6635 102.6635 102.6635 Step 5 69.6909 69.6909 69.6909 61.5582 78.1167 69.6909 78.1167 52.6213 61.5582 46.5096 45.3752 69.6909 61.5582 45.3752 61.5582 61.5582 61.5582 37.3547 50.9165 41.3896 46.8285 46.8285 42.4243 42.4243 44.2678 42.4243 54.3067 46,8285 45,6863 62.2062 39,3952 43.4849 46.8285 46.8285 47.9992 46.8285 54.3067 55.2853 42.4243 38.4343 35.6900 39.3952 39.3952 35.6900 41.3896 38,4343 37,2409 35,4464 56,6674 52.6213 27.6911 25.8903 34.8195 31.5448 34,8195 29,0926 Appro,·o.-d ;il ;i rcguW.r meeting of the Po\\nyCilyColIDCil on 9/20/1022