CITY OF
LONG
January 18, 2022
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
Department of Human Resources
411 West Ocean Boulevard, 10th Floor Long Beach, CA 90802 (562) 570-6621
R-25
Adopt a Resolution approving the appointment of David Nakamoto, retired annuitant, as an interim appointment to a vacant position during recruitment for a permanent replacement in the Financial Management Department pursuant to Government Code 21221 (h) and an exception to the 180-day waiting period for Public Agencies pursuant to Government Code 7522.56 and 21224. (Citywide)
DISCUSSION
On January 1, 2013, the Public Employees' Pension Reform Act added Sections 21221 (h), 7522.56, and 7522.57 to the Government Code, which set forth post-retirement employment requirements applicable to all retirees who are employed by CalPERS employers on or after January 1, 2013. This change added the requirement that the retiree is appointed into the interim appointment during recruitment for a permanent appointment, and the retiree may only be appointed to the position once. This change also added the requirement that all retirees must wait 180 days after their retirement date before they are eligible to begin post-retirement employment with a Cal PERS agency. An exception to the 180-day wait period can be made if a public agency certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed. The appointment must be approved by the governing body of the employer in a public meeting and may not be placed on a consent calendar.
The Financial Management Department hereby requests City Council approval to hire Mr.
David Nakamoto, former City Treasurer in the Financial Management Department, as the Interim City Treasurer, effective January 19, 2022, for a limited duration. Mr. David Nakamoto will be responsible for the City's cash, investment, and financing activities. He will manage the Treasury Bureau and address a variety of financing issues, including refunding of existing bonds, issuing new debt, public-private partnership opportunities, capital lease financings, special project services, and other challenges. He will effectively coordinate and direct the City of Long Beach's (City) counterparties including commercial bankers, investment bankers, municipal advisors, bond counsels, bond insurers, credit rating agencies, bond holders, investment advisors, and other professional consultants. He will provide liquidity of funds to meet all disbursement requirements, implement investment strategies consistent with the principles of safety and liquidity in compliance with State Government Code and City Investment Policy and obtain a reasonable return. Bringing Mr. Nakamoto back as a retired annuitant will provide for continuity of operations for a limited term; high-level management and strategic planning guidance; and, an orderly transfer of knowledge to help the City as it recruits and appoints the next City Treasurer.
HONORABLE MAYOR AND CITY COUNCIL
January 18, 2022
Page2
Mr. Nakamoto began serving as City Treasurer over 15 years ago and helped the City meet and overcome numerous financial challenges. He has a comprehensive understanding of the City's Treasury operations, a wealth of historical knowledge, and the experience to seamlessly step back into the City Treasurer role in the wake of the unexpected resignation by his recently promoted successor (for an even more attractive position with a nearby university). The department will prioritize filling the vacancy for his position, but his continued involvement until the position is filled is imperative.
Since Mr. Nakamoto's proposed start date is less than the required 180-day waiting period subsequent to his retirement on December 30, 2021, City Council approval to hire Mr.
Nakamoto is required. The approved rate of pay will be $82.553 per hour. This amount represents the hourly rate he received upon retirement and is within the minimum and maximum compensation paid to other employees performing comparable duties as listed in the City's publicly available pay schedule and will be funded through vacancy savings in the Financial Management Department.
This matter was reviewed by Principal Deputy City Attorney Gary J. Anderson and Revenue Management Officer Geraldine Alejo on December 30, 2021.
TIMING CONSIDERATIONS
City Council action is requested on January 18, 2022, to ensure minimal impact to the Financial Management Department and the City's treasury operations.
FISCAL IMPACT
The total annual cost is estimated to not exceed $85,314. The estimated cost is based on 960 hours over the Cal PERS fiscal year ending June 30th, at a salary rate of $82.553 per hour plus Medicare and FICA. The actual costs will be based on hours worked and not expected to exceed 960 hours over the Cal PERS fiscal year. The cost will be funded from vacancy savings in the General Fund Group in the Financial Management Department. This recommendation has no staffing impact beyond the normal scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
l!t.R~
HUMAN RESOURCES DIRECTOR
ATTACHMENT- RESOLUTION
APPROVED:
~~7~
THOMAS 8. MODICA
CITY MANAGER
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OFFICE OF THE CITY ATTORNEY CHARLES PARKIN, City Attorney 411 West Ocean Boulevard, 9th Floor Long Beach, CA 90802-4664 RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH APPROVING THE INTERIM
APPOINTMENT PER GOVERNMENT CODE SECTION
21221(h) AND THE EXCEPTION TO THE 180-DAY WAIT
PERIOD GOVERNMENT CODE SECTIONS 7522.56 AND
21224, FOR RETIRED ANNUITANT DAVID NAKAMOTO
WHEREAS, Government Code Section 21221(h) of the Public Employees’ Retirement Law permits the governing body to appoint a 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, in compliance with Government Code Section 7522.56 of the Public Employees’ Retirement Law, the City of Long Beach must provide CalPERS this certification resolution when hiring a retiree before 180 days has passed since their retirement date; and
WHEREAS, DAVID NAKAMOTO, CalPERS ID, 4943406177, retired from the City of Long Beach in the position of City Treasurer, effective December 30, 2021; and
WHEREAS, Government Code Section 7522.56 requires that post- retirement employment commence no earlier than 180 days after the retirement date, which is June 28, 2022, 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 ///
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OFFICE OF THE CITY ATTORNEY CHARLES PARKIN, City Attorney 411 West Ocean Boulevard, 9th Floor Long Beach, CA 90802-4664 WHEREAS, the City Council, the City Manager, the City of Long Beach and David Nakamoto, certify that David Nakamoto, has not and will not receive a Golden Handshake or any other retirement-related incentive; and WHEREAS, the City Manager with City Council approval hereby appoints David Nakamoto, as an interim appointment retired annuitant to the vacant position of City Treasurer for the City of Long Beach under Government Code Section 21224 and Section 21221(h), effective January 19, 2022; and
WHEREAS, an appointment under Government Code section 21221(h) requires the retiree is appointed into the interim appointment during recruitment for a permanent appointment; and
WHEREAS, the governing body has authorized the search for a permanent appointment; and
WHEREAS, this Government Code Section 21221(h) appointment shall only be made once and therefore will end once a permanent appointment is hired; and WHEREAS, the appointment letter between David Nakamoto and the City of Long Beach has been reviewed by this body and 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, the employment shall be limited to 960 hours per fiscal year for all CalPERS employers; 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 maximum base salary for this position is $30,000 monthly and the hourly equivalent is $173.077, and the minimum base salary for this position is $4,000 monthly and the hourly equivalent is $23.077; and WHEREAS, the hourly rate paid to David Nakamoto as a retired annuitant will be $82.553; and
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OFFICE OF THE CITY ATTORNEY CHARLES PARKIN, City Attorney 411 West Ocean Boulevard, 9th Floor Long Beach, CA 90802-4664 WHEREAS, David Nakamoto 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, the City Council of the City of Long Beach resolves as follows:
Section 1. The City Council hereby certifies the nature of the appointment of David Nakamoto as described herein and detailed in the attached appointment letter and that this appointment is necessary to fill the critically needed position of Interim City Treasurer, for the City of Long Beach effective January 19, 2022, to manage the Treasury Bureau and address a variety of financing issues, including refunding of existing bonds, issuing new debt, public-private partnership opportunities, capital lease financings, special project services, and other challenges. He will be responsible for the City’s cash, investment, and financing activities. He will effectively coordinate and direct the City’s counterparties including commercial bankers, investment bankers, municipal advisors, bond counsels, bond insurers, credit rating agencies, bond holders, investment advisors, and other professional consultants. He will provide liquidity of funds to meet all disbursement requirements, implement investment strategies consistent with the principles of safety and liquidity in compliance with State Government Code and City of Long Beach Investment Policy and obtain a reasonable return. The compensation for retired annuitant David Nakamoto will be $82.553.
Section 2. David Nakamoto began serving as City Treasurer over fifteen years ago and helped the City meet and overcome numerous financial challenges. He has a comprehensive understanding of the City of Long Beach’s Treasury operations, a wealth of historical knowledge, and the experience to seamlessly step back into the City Treasurer role. Bringing Mr. Nakamoto back as a retired annuitant will provide for continuity of operations for a limited term; a high-level management and strategic planning guidance; and an orderly transfer of knowledge to help the City as it recruits and appoints the next City Treasurer.
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OFFICE OF THE CITY ATTORNEY CHARLES PARKIN, City Attorney 411 West Ocean Boulevard, 9th Floor Long Beach, CA 90802-4664 Section 3. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution.
I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of , 20 , by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
City Clerk
CITY OF
LONG
Office of the City Manager
411 West Ocean Boulevard, 10 th Floor
(562) 570-6711
January 19, 2022
David Nakamoto
Dear David Nakamoto:
It is my pleasure to make you a conditional offer of employment as Interim City Treasurer, pending City Council approval. Your appointment as a PERS retired annuitant will be effective January 19, 2022 at an hourly rate of $82.553.
As a PERS retired annuitant, you are limited to 960 hours during the PERS fiscal year Uuly 1 through June 30). You are also limited to one interim appointment as City Treasurer.
I look forward to your continued support leading the Treasury Bureau.
Sincerely,
Thomas B. Modica
City Manager
Acknowledgment: ____________ _
Date