AGENDA
ITEM
11 OF CALET
AGENDA
CALEXICO California ITEM
WHERE CALIFORNIA AND MEXICO MEET
CITY COUNCIL
AGENDA STAFF REPORT
DATE: April 1, 2026
TO: Mayor and City Council
APPROVED BY: Benjamin Martinez, City Manager
PREPARED BY: Best Best & Krieger LLP, City Attorney
SUBJECT: Adopt Resolution No. 2026-_ _ Appointing Retired Annuitant as Interim Building Official During Recruitment and Approving Employment Agreement ============================================:
Staff Recommendation:
Staff recommends City Council approval of the Resolution regarding the retired annuitant appointment, and employment agreement approval, for the Interim Building Official.
Background and Discussion:
On March 23, 2026, the Building Official retired from the City of Calexico, leaving a vacancy in that critical position. The City has opened the recruitment for that position, but in the interim, it is critical to the continued operations of day to day building permit process that the position is filled in an interim basis during the recruitment.
Government Code Section 21221(h) permits the City Council to appoint a CaPERS retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours, inclusive of hours worked for other CaPERS employers during same period, in a fiscal year. Brian Hadley, is a retired annuitant with significant experience as a Building Official. Mr. Hadley was most recently Deputy City Manager (formally Director of Community Development) for the City of National City, and prior to this, served as the Building Official for the City of San Bernardino and the City of Coronado, and served nearly nine years as the Building and Safety Manager for the City of Buena Park. Thus, Mr. Hadley has the specialized skills necessary to perform the duties of the Building Official on an interim basis. Staff has worked with the City Attorney to ensure that applicable requirements for an appointment pursuant to Section 21221(h) have been met. Included in the Council's agenda packet is the Resolution to appoint Mr. Hadley as interim Building Official pursuant to Government Code Section 21221(h) and a proposed employment agreement.
Staff is recommending hiring Brian Hadley for a single limited term appointment to perform duties of the Building Official position while recruitment for a permanent Building Official is underway. Given the need for continuity and a highly trained professional to perform the duties of the Building Official, staff
recommends appointing Mr. Hadley under the provisions of Government Code section 21221(h) commencing on April 2, 2026 and ending on the date immediately preceding the date on which the regular appointee to the vacant position of Building Official commences his/her employment or, if earlier, the date that this appointment is terminated by the City or Mr. Hadley. As a CalPERS retired annuitant, Brian Hadley's hours working for the City, and any other CaPERS employer combined, cannot exceed 960-hours in the fiscal period from July 1 through June 30. Since the proposed appointment of Brian Hadley is to a vacancy, Government Code section 21221(h) requires that the appointment be made by the City Council.
Fiscal Impact:
Mr. Hadley will be paid an hourly rate of $41.50 per hour, which is no less than the minimum nor more than the maximum hourly rate paid to a person serving in the Building Official position. He will not be entitled to any additional compensation, overtime, benefits, paid leave or paid holidays. This position was already budgeted and as a retired annuitant, Mr. Hadley is not permitted to receive any benefits or additional payments beyond base hourly wages. Therefore, there will be some minimal savings based on benefits, including CaPERS contributions, which are not paid, in accordance with state law.
Alternatives
Council could choose to reject Staff's recommendation and provide alternative direction.
Conclusions and Recommendations
Based on the facts noted in this staff report and the documentation attached hereto, City staff recommends adoption of Resolution No. 2026- _appointing Brian Hadley as interim Building Official and approving the Employment Agreement.
Attachments):
Resolution No. 2026 -_ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CALEXICO, CALIFORNIA, APPOINTING BRIAN HADLEY AS THE BUILDING OFFICIAL ON
AN INTERIM BASIS AND APPROVING EMPLOYMENT AGREEMENT PURSUANT TO GOVERNMENT CODE SECTION 21221(H)
2. Employment Agreement
2 ATTACHMENT NO. 1
RESOLUTION NO. 2026-_
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALEXICO, CALIFORNIA,
APPOINTING BRIAN HADLEY AS THE BUILDING OFFICIAL ON AN INTERIM
BASIS AND APPROVING EMPLOYMENT AGREEMENT PURSUANT TO
GOVERNMENT CODE SECTION 21221(H)
WHEREAS, Government Code section 21221(h) permits the City Council of the City of Calexico ("City Council") to appoint a California Public Employees' Retirement System ("CalPERS") retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours in a fiscal year; and WHEREAS, the position of Building Official became vacant on March 23, 2026.
WHEREAS, the City Council desires to appoint Brian Hadley as an interim appointment retired annuitant to the vacant position of Building Official for the City of Calexico under Gov. Code section 21221(h), effective April 2, 2026; and WHEREAS, the City Council, the City and Brian Hadley certify that Brian Hadley has not and will not receive a Golden Handshake or any other retirement-related incentive; and
WHEREAS, pending the recruitment, selection and employment of a Building Official, the City desires to appoint Brian Hadley as interim Building Official, pursuant to the authority provided under Government Code section 21221(h), to oversee the day to day operation of the building permit process including; coordinating and supervising the current building functions and building/rehabilitation inspection; providing interpretations of and recommendations for codes, plans and ordinances relating to building inspection and codes; providing assistance to the City Planner on Building Division matters; and related work as required; and
WHEREAS, an appointment under Government Code Section 21221(h) requires an active, publicly posted recruitment for a permanent replacement; and opened on Mars, 7, 2026 anstals of thier posted as open since are al 2026, and applications are being accepted; and
WHEREAS, this Section 21221(h) appointment shall only be made once and therefore will end on the date immediately preceding the date on which the permanent replacement for the vacant position of Building Official for the City of Calexico commences his or her employment or, if earlier, the date that this appointment is terminated by the City of Calexico or Brian Hadley; and WHEREAS, the City Council has reviewed a proposed employment agreement by and between Brian Hadley and the City of Calexico and it is attached hereto; 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, it is understood by Brian Hadley and the City that the combined total hours to be served by Brian Hadley in any fiscal year for all CaPERS employers combined shall not exceed the 960 hour limitation set forth in California Government Code section 21221(h) and section 7522.56(d); 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 173.333 to equal the hourly rate; and WHEREAS, the minimum hourly rate for this position is $34.38 and the maximum hourly rate is $41.79; and
WHEREAS, the hourly rate paid to Brian Hadley will be $41.50 which is within the range for the position as set forth on the publicly approved salary schedule; and WHEREAS, Brian Hadley 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 by the City Council of the City of Calexico, California, as follows:
SECTION 1. As required by Government Code sections 7522.56 and 21221(h), the City Council makes the following findings:
(A) All facts set forth in the Recitals to this Resolution are true and correct and incorporated herein by reference.
(B) Brian Hadley has the specialized skills needed to pertorm the work required of the Building Official until a permanent Building Official is appointed and thereafter begins his or her service.
(C) It is in the best interests of the City of Calexico to enter into an employment agreement with and to appoint Brian Hadley as interim Building Official for the City of Calexico pursuant to the authority provided under Government Code section 21221(h).
SECTION 2. Brian Hadley is hereby appointed as interim Building Official of the City of Calexico in accordance with Government Code section 21221(h) and with the - 2-
provisions of the Employment Agreement on file with the City Clerk.
SECTION 3. The Employment Agreement with Brian Hadley is hereby approved by the City Council of the City of Calexico, effective April 2, 2026, and the City Manager is authorized to execute the agreement with such technical amendments as may be deemed appropriate by the City Manager and City Attorney consistent with the applicable law.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Calexico, California, at a regular meeting held on this 1st day of April, 2026.
AYES:
NOES:
ABSENT:
ABSTAIN:
Victor Legaspi, Mayor
ATTEST:
Veronica L. Alvarado, City Clerk
APPROVED AS TO FORM:
Mitchell A. Driskill, City Attorney
- 3-
ATTACHMENT NO. 2
CITY OF CALEXICO
INTERIM BUILDING OFFICIAL
EMPLOYMENT AGREEMENT
This Employment Agreement ("Agreement") is by and between the City of Calexico ("City"), a California municipal corporation, and Brian Hadley ("Retiree"), an individual, on the terms and conditions contained herein. City and Retiree are sometimes referred to in this Agreement individually as "Party" and collectively as "Parties."
RECITALS
A. City desires to employ the services of Retiree as its Building Official on an interim basis to carry out the duties and responsibilities of the Building Official position as provided for by the Municipal Code, the Building Official job description and applicable state law, in consideration of and subject to the terms, conditions, and benefits set forth in this Agreement.
B. Retiree desires to accept employment as the Building Official on an interim basis in consideration of and subject to the terms, conditions, and benefits set forth in this Agreement.
C. Retiree's employment is authorized by Government Code sections 7522.56 and 21221(h), which permit the City Council to appoint a California Public Employees' Retirement System ("CalPERS") retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provide that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits, so long as it is a single appointment that does not exceed 960 hours in a fiscal year, inclusive of all hours worked for all other CalPERS employers, unless an exception applies.
D. Retiree represents that he is a retired annuitant of CaPERS within the meaning of Government Code Sections 7522.56 and 21221(h) and acknowledges that his compensation is statutorily limited as provided in Government Code Section 21221(h). With the execution of this Agreement, Retiree affirms that he has not received unemployment compensation based on employment with any CalPERS Agencies during the 12-month period preceding the effective date of this Agreement.
E. The City has determined that it is necessary to hire Retiree, a CalPERS retiree, because the position of Building Official requires specialized skills, and Retiree, by virtue of his significant experience as a building official, has those specialized skills.
OPERATIVE PROVISIONS
In consideration of the promises and covenants contained herein, the Parties agree as follows:
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1. Position and Duties.
1.1 Position. Retiree accepts employment with City as its Building Official on an interim basis and shall perform all functions, duties and services set forth in Section 1.4 [Duties] of this Agreement. Retiree shall provide service at the direction and under the supervision of the Planning and Building Director and City Manager. Retiree shall report directly to the Planning and Building Director.
1.2 Term. This Agreement shall become effective on April 2, 2026, unless a later date is agreed on by the Parties. This Agreement shall expire upon whichever of the following events occurs first: (i) the day before the employment commencement date of a regular Building Official; or (ii) upon termination of this Agreement by either Retiree or City as provided in Section 4 [Termination] of this Agreement.
1.3 At-Will. Retiree acknowledges that he is an at-will, temporary employee of City who shall serve at the pleasure of the City Manager at all times during the period of his service hereunder. Nothing in this Agreement is intended to, or does, confer upon Retiree any right to any property interest in continued employment, or any due process right to a hearing before or after a decision by the City Manager to terminate his employment, except as is expressly provided in Section 1.2 [Term] or Section 4 [Termination] of this Agreement. Further, nothing contained in this Agreement shall in any way prevent, limit or otherwise interfere with the right of City to terminate the services of Retiree, as provided in Section 1.2 [Term] or Section 4 [Termination| of this Agreement.
1.4 Duties. Retiree shall perform those duties and have those responsibilities that are required of the Building Official under the job description, the City's Municipal Code and state law, as well as those legal and proper duties assigned by the Planning and Building Director.
1.5 Hours of Work. Retiree shall devote the time necessary to adequately perform his duties as interim Building Official. Retiree will generally be required to work the normal business hours of City Hall, and may be required to work after normal business hours. To avoid overtime, the Planning and Building Director may require Retiree to flex his hours/schedule to avoid working over 40 hours in work week. However in no event shall Retiree be required to work in excess of 960 hours per fiscal year in any City position, including hours worked for other CaPERS agencies during such fiscal years, unless an exception applies. Retiree will be paid on an hourly basis, in accordance with applicable law, and as set forth below.
1.6 Devotion to City Business. Retiree shall not engage in any business, educational, professional, charitable, or other activities that would conflict or materially interfere with performance of his duties, except as may be specifically authorized in writing by the City Manager.
Compensation.
2.1 Rate of Pay. For all services performed by Retiree as the Building Official on an interim basis under this Agreement, City shall pay Retiree compensation at the rate of Forty-One 81211.00100\44841334.1
Dollars and Fifty cents ($41.50) per hour, according to the payroll schedule in place for City employees paid bi-weekly subject to the limitations provided below.
2.1.1 Compliance with CalPERS requirements. It is the intent of the Parties to compensate Retiree only to the extent permitted under Government Code section 21221(h) and corresponding CaPERS regulations and policy statements. The Rate of Pay set forth above is based on the salary limitations codified in Government Code sections 7522.56 and 21221(h) and is not less than the minimum, nor in excess of the maximum, monthly rate of pay paid by the City to other employees performing comparable duties (divided by 173.333 to equal an hourly rate) as listed on the City's publicly available pay schedule. Such compensation shall be Retiree's sole compensation for his services under this Agreement, unless otherwise required by federal or state law.
2.1.2 Recordation and Reporting of Hours Worked. Retiree will comply with all applicable CaPERS regulations governing employment after retirement, including the recordation and reporting of all hours worked for the City to CalPERS, as may be required. City shall assist in any such reporting obligations to CaPERS. Additionally, Retiree shall keep City continually apprised of any hours worked by Retiree for other CaPERS agencies during the term of this Agreement.
2.2 Benefits.
2.2.1 No Benefits. Pursuant to Government Code section 21221(h) and related CaPERS regulations and policy statements, Retiree shall not receive from City any benefits City commonly provides to its employees, including without limitation, health, dental, or vision insurance coverage, life insurance, deferred compensation, disability insurance, unemployment insurance, mobile device stipend, vehicle allowance, gym programs, employee assistance programs, and similar benefits, unless required by federal or state law.
2.3 Reimbursement. City shall reimburse Retiree for authorized, reasonable and necessary travel expenses incurred by Retiree in the performance of his duties pursuant to this Agreement. Retiree shall document and claim said reimbursement for such travel in the manner and on the forms required by the City. All reimbursements shall be for actual expenses and shall be subject to, and in accordance with, California and federal law and City's adopted reimbursement policies. Such reimbursements are not required to be reported to CaPERS. Other than as specifically provided herein, Retiree shall receive no other compensation or reimbursements for expenses incurred in the performance of his duties pursuant to this Agreement.
3. Vacation and Leave.
3.1 No Leave. Retiree and City agree that Retiree, in accordance with Government Code section 21221(h) and related CalPERS regulations and policy statements, shall not be provided or accrue any personal time off, vacation, sick leave, management time off, paid holidays or similar leave benefits, unless required by federal or state law. California sick leave requirements do not apply to a CaPERS retiree, including Retiree, pursuant to Labor Code section 245.5(a)(5). 81211.00100\44841334.1
4. Termination.
4.1 By City. This Agreement may be terminated by City upon providing written notice to Retiree of such termination. City's only obligation in the event of such termination will be payment to Retiree of all compensation then due and owing as set forth in Section 2.1 [Rate of Pay] up to and including the effective date of termination. However, this Agreement may be terminated immediately if necessitated by changes to CaPERS statutory or regulatory requirements, or if doing so will preclude a violation of Government Code sections 7522.56 or 21221(h).
4.2 By Retiree. This Agreement may be terminated by Retiree for any reason fourteen (14) days after providing written notice to City of such termination. City shall have the option, in its complete discretion, to make Retiree's termination effective at any time prior to the end of such period, provided City pays Retiree all compensation as set forth in Section 2.1 [Rate of Pay] then due and owing to him through the last day actually worked.
4.3 No Notice for Expiration. Nothing in this Section 4 [Termination] shall be construed to require either party to give advance written notice in order for the Agreement to expire as set forth in Section 1.2 [Term].
4.4 Termination Obligations. Retiree agrees that all property, including, without limitation, all equipment, tangible Proprietary Information (as defined below), documents, records, notes, contracts, and computer-generated materials furnished to or prepared by him incident to his employment belongs to City and shall be returned promptly to City upon termination of Retiree's employment. Retiree's obligations under this subsection shall survive the termination of his employment and the expiration of this Agreement.
5. Confidential Information.
"Confidential Information" shall include, but not be limited to, all information or material that Retiree learns of or obtains during his employment with City as interim Building Official that is or was confidential or privileged by virtue of it having been discussed or presented in a duly- noticed closed session meeting of the City Council, or otherwise privileged and/or confidential under applicable law, including but not limited to personnel information, information pertaining to on-going or potential litigation, information learned in the context of the attorney-client relationship with the City Attorney or special counsel to the City. Confidential Information as defined includes, but is not limited to, all data, materials, products, technology, computer programs, specifications, manuals, business plans, software, marketing plans, financial information, internal processes and procedures, and other information disclosed or submitted, orally, in writing, or by any other media, to Retiree by City. Nothing herein shall require City to disclose any of its information to Retiree.
During his employment with City as interim Building Official, Retiree shall use and disclose Confidential Information only for the benefit of City and as is, or may be, necessary to perform his job responsibilities under this Agreement. Following the termination of this Agreement, Retiree shall not use or disclose any Confidential Information, except with the express 81211.00100\44841334.1
written consent of City. Retiree's obligations under this Section shall survive the termination of his employment and the expiration of this Agreement.
6. Conflict Of Interest.
To the extent that Retiree has an interest, direct or indirect, financial or otherwise, which would materially conflict, as shall be determined by the City Attorney, in any manner or interfere in any way with the performance of services under this Agreement, Retiree shall notify the City Manager of the conflict in advance of, and shall refrain from participating in, any action to be taken by the City on such matter.
7. General Provisions.
7.1 Recitals. The recitals, inclusive of all facts and representations, are incorporated into this Agreement as if set forth in the Operative Provisions.
7.2 Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be effective upon delivery by hand or three (3) business days after deposit in the United States mail, postage prepaid, certified or registered, and addressed to City at the address below, and or at the last known address maintained in Retiree's personnel file. Retiree agrees to notify City in writing of any change in his address during his employment with City. Notice of change of address shall be effective only when accomplished in accordance with this Section.
CITY: City of Calexico
608 Heber Avenue
Attn: City Manager
RETIREE: Brian Hadley
[ADDRESS ON FILE]
7.3 Indemnification. Subject to, in accordance with, and to the extent provided by the California Government Claims Act [Government Code Section 810 et seq.], City will indemnify, defend, and hold Retiree harmless from and against any action, demand, suit, monetary judgment or other legal or administrative proceeding, and any liability, injury, loss or other damages, arising out of any act oi omission occurring during Retiree's tenure as interim Building Official, except that this provision shall not apply with respect to any intentional tort or crime committed by Retiree, or any actions outside the course and scope of his employment as interim Building Official. City shall obtain and keep in full force and effect liability insurance, or risk pool coverage, including errors and omissions coverage on a "per occurrence" basis, in sufficient amounts to ensure fulfillment of this hold harmless and indemnification clause.
7.4 Integration. This Agreement is intended to be the final, complete, and exclusive statement of the terms of Retiree's employment by City. This Agreement supersedes all other prior and contemporaneous agreements and statements, whether written or oral, express or implied, pertaining in any manner to the employment of Retiree, and it may not be contradicted by evidence 81211.00100\44841334.1
of any prior or contemporaneous statements or agreements. To the extent that the practices, policies, or procedures of City, now or in the future, apply to Retiree and are inconsistent with the terms of this Agreement, the provisions of this Agreement shall control.
7.5 Amendments. This Agreement may not be amended except in a written document signed by Retiree, approved by the City Council and signed by an authorized representative of the
7.6 Waiver. Failure to exercise any right under this Agreement shall not constitute a waiver of such right.
7.7 Assignment. Retiree shall not assign any rights or obligations under this Agreement. City may, upon prior written notice to Retiree, assign its rights and obligations hereunder.
Severability. If a court or arbitrator holds any provision of this Agreement to be invalid, unenforceable, or void, the remainder of this Agreement shall remain in full force and effect.
7.9 Attorneys' Fees. In any legal action, arbitration, or other proceeding brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, with venue proper only in Imperial County, State of California.
Interpretation. This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. By way of example and not in limitation, this Agreement shall not be construed in favor of the party receiving a benefit nor against the party responsible for any particular language in this Agreement. Captions are used for reference purposes only and should be ignored in the interpretation of the Agreement. This Agreement may be altered, amended or modified only by an instrument in writing, executed by the Parties to this Agreement and by no other means. Each party waives their future right to claim, contest or assert that this Agreement was modified, cancelled superseded or changed by any oral agreement, course of conduct, waiver or estoppel.
Acknowledgment. Retiree acknowledges that he has had the opportunity to consult legal counsel in regard to this Agreement, that he has read and understands this Agreement, that he is fully aware of its legal effect, and that he has entered into it freely and voluntarily and based on his own judgment and not on any representations or promises other than those contained in this Agreement.
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IN WITNESS WHEREOF, City has caused this Agreement to be signed and executed on its behalf by its City Manager and duly attested to by its City Clerk, and Retiree has signed and executed this Agreement, effective as of the date first indicated above.
RETIREE CITY OF CALEXICO
Brian Hadley Benjamin Martinez.
ATTEST: APPROVED AS TO FORM:
Veronica L. Alvarado, City Clerk Best Best & Krieger LLP City Attorney
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