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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Appointment of Interim Director of Finance
1. Resolution Appointing Michele Flynn as Interim Director of Finance Pursuant to Government Code Sections 7522.56 and 21221(h) and Approving Employment Agreement
COUNCIL ACTION
Item Type: Action Item
Approved for June 25, 2024 calendar
EXECUTIVE SUMMARY
Staff seeks the Council’s approval of CalPERS retired annuitant, and former Director of Finance, Michele Flynn to serve as Interim Finance Director. 2{{section.number}}e
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RECOMMENDATION
That the Council approve the appointment of Michele Flynn as the Interim Director of Finance pursuant to Government Code Sections 7522.56 and 21221(h) and approve an employment agreement.
ANALYSIS
Effective June 26, 2024, there will be a vacancy in the Director of Finance position as the Director of Finance and Information Technology will be returning to exclusively head the Information Technology Department. The City Manager intends to appoint Michele Flynn, the City’s former Director of Finance, as the Interim Director effective June 26, 2024 while the City conducts a recruitment for a new Director of Finance. Ms. Flynn served as the City’s Finance Director from July 30, 2019 through December 9, 2021 and worked for the City of Glendale in progressively responsible finance and audit positions for almost 22 years.
Ms. Flynn is a CalPERS retiree and would be employed by the City as a retired annuitant under CalPERS regulations. The California Government Code regulates compensation for retired annuitants and defines specific rules for appointment. Specifically, the appointment of a retiree to a vacant position must comply with Government Code Section 21221(h). In accordance with this section, the appointment of a retired annuitant to an executive level position is permissible if it is made during the recruitment for a permanent appointment to the position and it is approved by the governing body of the employer in a public meeting and not on a consent calendar.
Further, compensation during the appointment cannot be less than the minimum nor exceed the maximum hourly equivalent of the monthly base salary paid to other employees performing comparable duties as listed in the publicly available pay schedule for the agency. Additionally, the retired annuitant must not receive any benefit, incentive, compensation in lieu of benefits, or other form of compensation in addition to the hourly pay rate. The salary range for Director of Finance listed on the City's publicly available pay schedule lists a minimum hourly rate of $78.90 per hour and the maximum hourly rate of $117.79 per hour. The City will pay Ms. Flynn at the rate of $117.79 per hour.
In addition, Government Code Sections 21221(h) and 7522.56 limit retired annuitant hours to 960 in a fiscal year for all retired annuitant positions with any CalPERS employers. Government Code Section 20220 also requires the enrollment of a retired annuitant in CalPERS solely for recordkeeping purposes and the reporting of retired annuitant hours within 30 days of the end of a pay period.
Staff recommends making this appointment effective June 26, 2024 based on the specialized skills possessed by Michele Flynn and allowing her to serve the City as its Interim Director of Finance until the appointment of a permanent Director or until Ms.
Flynn works for 960 hours in a fiscal year, whichever comes first, unless earlier terminated by either Ms. Flynn or the City. Staff recommends approval of an employment agreement with Ms. Flynn documenting the terms of employment and compliance with the applicable provisions of the PERS law including Government Code Sections 7522.56, 20220 and 3{{section.number}}e
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20221.
STAKEHOLDERS/OUTREACH
Not applicable
FISCAL IMPACT
Ms. Flynn will serve a maximum of 960 hours at an hourly rate of $117.79, which totals $113,078.40. No other costs associated with benefits will accrue under Ms. Flynn’s employment agreement. The Finance Department can absorb this cost.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This action involves an administrative activity not subject to the California Environmental Quality Act.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
1. Council can choose not to appoint Ms. Flynn as Interim Director of Finance, but then the City will be working without a Director of Finance.
ADMINISTRATIVE ACTION
Submitted by:
Michael J. Garcia, City Attorney
Prepared by:
Michael J. Garcia, City Attorney
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
1. Employment Agreement