STAFF REPORT
Meeting Date:
September 22, 2026
CONSENT
CALENDAR
17 SUBJECT: CALPERS RESOLUTIONS IN COMPLIANCE WITH RETIRED ANNUITANT
RULES - APPOINTMENTS OF INTERIM POSITIONS
RECOMMENDATION: It is recommended that the City Council:
1. Adopt the following Resolutions:
a. “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH,
CALIFORNIA, APPOINTING CAROL JACOBS AS INTERIM ASSISTANT CITY
MANAGER FINDING THE SAME IS NOT A PROJECT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT”;
b. “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH,
CALIFORNIA, APPOINTING MARK TRESTIK AS INTERIM DEPUTY DIRECTOR OF
PUBLIC WORKS AND UTILITIES AND FINDING THE SAME IS NOT A PROJECT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT”;
c. “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH,
CALIFORNIA, RATIFYING THE APPOINTMENT OF STEVE MONTANO AS
INTERIM FINANCE MANAGER AND FINDING THE SAME IS NOT A PROJECT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT;” and
2. Find that the proposed action does not constitute a “project” under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15378(b)(2) & (5) because the action involves administrative organizational activities that will not result in a direct or reasonably foreseeable physical change in the environment.
SUMMARY OF THE MATTER
The roles of Assistant City Manager and Deputy Director of Public Works were vacated by former City employees. The City is currently in the process of recruiting for a permanent appointment to these provisions. Pursuant to Government Code Section 21221(h), the City Council may appoint CalPERS retirees to these positions provided certain requirements are met. All of the requirements are satisfied, and City staff is recommending that the City Council appoint Carol Jacobs as Interim Assistant City Manager and Mark Trestik as Interim Deputy Director of Public Works and Utilities while the City goes through the process of hiring permanent directors in these roles.
Further, a resolution ratifying the past appointment of Steve Montano as Interim Finance Manager is also proposed. All of the substantive requirements of Government Code Section 21221(h) were complied with during Steve Montano’s appointment, and this resolution ensures the appointment is properly memorialized.
DISCUSSION
CALPERS RESOLUTIONS IN COMPLIANCE WITH RETIRED ANNUITANT RULES -
APPOINTMENTS OF INTERIM POSITIONS
September 22, 2026
Government Code Section 21221(h) allows the City Council to appoint by resolution a retiree (without loss or interruption to their retirement benefits) to fill a vacant managerial or executive position requiring a specialized or needed skill on an interim basis during recruitment for permanent appointments. The interim position shall be for a limited duration and be a one-time appointment. The retiree can only be appointed once, the compensation for the interim appointment shall not exceed the maximum monthly base salary paid to other employees performing comparable duties as listed on a publicly available pay schedule for the vacant position divided by 173.333 to equal an hourly rate. The retiree appointed to a vacant position pursuant to this subdivision shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate and shall not work more than 960 hours each fiscal year.
In order to ensure continued efficient operations, City staff is recommending that the City Council appoint CalPERS retirees Carol Jacobs and Mark Trestik to the positions of Interim Assistant City Manager and Interim Deputy Director of Public Works and Utilities. While the Interim Assistant City Manager position requires a wide range of managerial expertise and specialized skill across multiple City departments, Ms.
Jacobs position will have an emphasis on the City’s Human Resources and Risk Management department.
These interim appointees have demonstrated the unique skillset, leadership, and managerial know-how to efficiently perform the duties of the vacant positions during this limited time role. The City is actively recruiting for Assistant City Manager job and is currently fine tuning its recruitment for Deputy Director of Public Works and Utilities as the previous recruitment was not successful.
Previously, CalPERS retiree Steve Montano served as the City’s Interim Finance Manager between February 3, 2026, through June 9, 2026. Mr. Montano filled a vacant managerial or executive position requiring a specialized or needed skills on an interim basis during recruitment for the Finance Manager position. The interim position was for a limited duration and there was only a single appointment. The compensation for the interim appointment did not exceed the maximum monthly base salary paid to other employees performing comparable duties as listed on a publicly available pay schedule for the vacant position divided by 173.333 to equal an hourly rate. Mr. Montano did not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate and he did not work more than 960 hours.
FINANCIAL ANALYSIS
Funding for these positions was included in the Fiscal Year 2025/2026 and Fiscal Year 2026/2027 budgets.
These positions are funded by the salary savings from the vacant positions being filled. The compensation for the appointed retirees is set by statute for a defined hourly rate (based on the City’s approved salary schedule for the position being filled). No other benefits or compensation are allowed to be paid in excess of the hourly rate.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a “project” under the California Environmental Quality Act ("CEQA") and the CEQA Guidelines because this is a continuing personnel-related action and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the
CALPERS RESOLUTIONS IN COMPLIANCE WITH RETIRED ANNUITANT RULES -
APPOINTMENTS OF INTERIM POSITIONS
September 22, 2026
environment. Accordingly, this action does not constitute a "project" that requires environmental review (CEQA Guidelines § 15378(b)(2)&(5).
CALPERS RESOLUTIONS IN COMPLIANCE WITH RETIRED ANNUITANT RULES -
APPOINTMENTS OF INTERIM POSITIONS
September 22, 2026
ATTACHMENTS
1. Resolution Appointing Interim Assistant City Manager
2. Resolution Appointing Interim Deputy Director of Public Works and Utilities
3. Resolution Ratifying Appointment of Interim Finance Manager Submitted By: Megan Garibaldi Approved: .David A Kiff
Megan Garibaldi, City Attorney Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Patrick Donegan, Assistant City Attorney