Agenda packet — Modesto City Council, June 10, 2025 (part 4 of 7)

services.

Fleet Replacement:

IFB Vehicle
#
Description Dept. Year of
Vehicle
Meter
(hours)
Repair
Cost
2425-50 70050
Wirtgen 2000 W
1200FT Pavement
PW. Street
Maintenance 2000 4291 $534,698
This equipment is used in the grinding and removal of asphalt and concrete and levelling of asphalt and concrete surfaces in preparation for placement of new asphalt and concrete to the finished grade in the restoration and maintenance of City roadways DISCUSSION:

Invitation for Bid (IFB) 2425-50– One (1) Wirtgen W120Fi-FCS Pavement Grinder On April 16, 2023, the City Manager authorized the Purchasing Manager to solicit the procurement for a Wirtgen W120Fi-FCS Pavement Grinder. On April 12, 2022, Sourcewell solicited a bid for the State of Minnesota local government unit and service cooperative issued Request for Proposal (RFP) No.060122 for Roadway Paving Equipment on the Sourcewell Procurement Portal and New York State Contract Reporter website, DJC Oregon, and Oklahoman, and the Biddingo Merx.

On June 1, 2022, proposals were opened at the Sourcewell Procurement Portal. 18 proposals were received, and the proposals were based on the Sourcewell intent to award one or more contracts to highest scored proposers offering the best overall quality, selection of equipment, products, and services and price. Eight (8) contracts were awarded for this commodity which includes the Winder America as the manufacturer but procured through the dealer Nixion-Egli Equipment Company. Based on the ranking of the proposals offering the Roadway Paving Equipment, City staff recommends awarding to Wirtgen America, Inc to purchase One (1) Wirtgen W120Fi-FCS Pavement Grinder for an amount not to exceed $797,910.

IFB-2425-31 – One (1) Vactor 2100i Fan Truck
On October 24, 2024, the City Manager authorized the Purchasing Manager to solicit the procurement for Vactor 2100i Fan Truck (Jet/Vac). On October 12, 2021, Sourcewell solicited a bid for the State of Minnesota local government unit. Furthermore, the service cooperative issued RFP No.101221 under Contract No 101221-VTR for Sewer Vacuum, Hydro-Excavation, and Municipal Pumping Equipment with Related Accessories and Supplies on the Sourcewell Procurement Portal and New York State Contract Reporter website, DJC Oregon, and Oklahoman.

On October 12, 2021, proposals were opened at Sourcewell Procurement Portal. 22 proposals were received. The proposals were based on the Sourcewell intent to award one or more contracts to responsive and responsible proposers offering the best overall quality, selection of equipment, products, services and price. Nine (9) Contracts were awarded for this commodity which includes the Sewer Vacuum, Hydro-Excavation, and Municipal Pumping Equipment with Related Accessories and Supplies. Scores were based on the highest scored proposer offering the Sewer Vacuum, Hydro-Excavation, and Municipal Pumping Equipment with Related Accessories and Supplies based on conformance to RFP, pricing, financial viability and #14..
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City Council, June 10, 2025
Purchase of Fleet Addition and Replacement – Grinder and Truck

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marketplace value, ability to sell and deliver service, marketing plan, value added attributes, warranty, depth and breadth of offered equipment, and products, or service. City staff recommends awarding to Vactor Manufacturing, a division of Federal Signal, for the purchase for one (1) Vactor 2100i Fan Truck an amount not to exceed $745,310.

Sourcewell and the public agencies are cooperative agreements that streamline the procurement process by developing Request for Proposals (RFP)’s for national competitive solicitations that meet or exceed local requirements. The competitive process is continually refined to best meet agency needs and allows Sourcewell and public agencies to offer exceptional products from nationally acclaimed vendors.

Modesto Municipal Code Section 8-3.203 generally requires all purchases that meet or exceed $100,000 for material, equipment or contractual services to be formally bid. However, exceptions to the formal bidding process are granted in MMC 8-3.204(d) “Where the Purchasing Manager, in her discretion, determines that a process other than the formal bid procedure set for in Section 8-3.203 will result in a procurement for the City at the lowest possible cost commensurate with the desired quality.” In addition, MMC 8-3.202(h) encourages the Purchasing Manager to join with the State of California or other units of government in cooperative purchasing plans when the best cost savings interest of the City would be served.

By utilizing Sourcewell and the public agencies bidding process, the City is complying with the requirements defined under this code for the one (1) Wirtgen W120Fi-FCS Pavement Grinder and one (1) Vactor 2100i Fan Truck.

For all vehicles and equipment, City staff recommends applying a change order of up to 15% in case any market changes occur between the timeframe of when the order is placed with the vendor and when the production of the vehicle is completed. With current inflation, and the volatile vehicle market, City staff will ensure any price increases requested by the vendor align with the market change based on using the Commodities Research Unit indexes which focuses on indexes related to steel.

With the new California Air Resource Board (CARB) zero-emission regulations, as described in the Advanced Clean Fleets Regulation for State and Local Government Agency Fleet Requirements, § Section 2013(c)4, State and Local Government Fleet Applicability, Definitions, and General Requirements, California Vehicle Code (CVC) Section 165, emergency vehicles are exempt under the current regulation to convert from internal combustion engines (ICE) to zero-emission vehicles. Public Works is currently developing the City’s fleet migration to Zero Emission Vehicles to comply with the State regulations in reducing reliance on internal combustion engines. However, there are no known equivalent zero emission vehicles that will perform the services required for the one (1) Wirtgen W120Fi-FCS Pavement Grinder and one (1) Vactor 2100i Fan Truck, which is an exemption under the state mandate if no identified zero emission manufacturers produce the specified equipment.

FISCAL IMPACT:

Sufficient funds for the one (1) Wirtgen W120Fi-FCS Pavement Grinder are budgeted in Fiscal Year 2024-25 in the Fleet Replacement Fund based on replacement funds collected through the Fleet Internal Service Fund (ISF) charges. The one (1) addition for the and one (1) Vactor 2100i Fan Truck for the Utilites Department will be funded from the Sewer Fund. #14..
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City Council, June 10, 2025
Purchase of Fleet Addition and Replacement – Grinder and Truck

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Below is a summary of the Fleet Addition and Replacement:

IFB No. Type of Fleet
Original
Amount
Change
Order
Amount not
to Exceed
2425-50
One (1) Wirtgen W120Fi-FCS
Pavement Grinder $ 797,910 $ 119,688 $ 917,598
2425-31 One (1) Vactor 2100i Fan Truck $ 745,310 $ 111,798 $ 857,108 Grand Total $ 1,543,220 $ 231,486 $ 1,774,706
COMMITTEE RECOMMENDATION:

This item was presented at the Fiscal Year 2024-25 Finance Committee Budget Workshops to capture the City vehicle replacements for Fiscal Year (FY) 2024-25 which included the one (1) Wirtgen W120Fi-FCS Pavement Grinder. In addition, during the FY 2024-25 Finance Committee Budget Workshops the addition of the one (1) Vactor 2100i Fan Truck was captured as part of the addition identified by the Utilities Department Sewer Collection Division.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Competitive Bidding Process from Sourcewell to Wirtgen America, Inc., Antioch, TN under the authorized dealer, Nixion-Egli Equipment Company, Tracy, CA for the purchase of one (1) Wirtgen W120Fi-FCS Pavement Grinder for an amount not to exceed $797,910; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order; and authorizing the Purchasing Manager or her designee to execute any Change Orders not to exceed 15% of the total purchase price.

Resolution approving the Competitive Bidding Process from Sourcewell to Vactor Manufacturing, Streator, IL under the authorized dealer, Owen Equipment, Fairfield, CA for the purchase of one (1) Vactor 2100i Fan Truck for an amount not to exceed $745,310; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order; and authorizing the Purchasing Manager or her designee to execute any Change Orders not to exceed 15% of the total purchase price.

Approved by:

DeAnna Christensen, Director of Finance
Bill Sandhu, Public Works Director
Joseph P. Lopez, City Manager
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City Council, June 10, 2025
Purchase of Fleet Addition and Replacement – Grinder and Truck

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Attachments:

1. Resolution (2)

2. Quote – Nixion-Egli - (1) Wirtgen W120Fi-FCS Pavement Grinder

3. RFP Scoring Abstract- (1) Wirtgen W120Fi-FCS Pavement Grinder

4. Quote – Owen Equipment - (1) Vactor 2100i Fan Truck

5. RFP Scoring Abstract- (1) Vactor 2100i Fan Truck
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06/10/2025/FIN/DLove/Item X 1 2025-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-

RESOLUTION APPROVING THE COMPETITIVE BIDDING PROCESS FROM SOURCEWELL TO WIRTGEN AMERICA, INC., ANTIOCH, TN UNDER THE

AUTHORIZED DEALER, NIXION-EGLI EQUIPMENT COMPANY, TRACY, CA FOR THE PURCHASE OF ONE (1) WIRTGEN W120FI-FCS PAVEMENT GRINDER FOR AN AMOUNT NOT TO EXCEED $797,910; AND

AUTHORIZING THE PURCHASING MANAGER, OR HER DESIGNEE, TO ISSUE THE PURCHASE ORDER; AND AUTHORIZING THE PURCHASING

MANAGER OR HER DESIGNEE TO EXECUTE ANY CHANGE ORDERS NOT TO EXCEED 15% OF THE TOTAL PURCHASE PRICE
WHEREAS, the Public Works Fleet Division provides the maintenance for all City vehicles and equipment; and
WHEREAS, new and replacement vehicles need to be added to the City’s Fleet inventory due to the operational needs of City departments and when these vehicles are added to the fleet, they are also added to the Fleet Replacement list to prepare for future replacement; and
WHEREAS, on April 16, 2023, the City Manager authorized the Purchasing Manager to solicit the procurement for Wirtgen W120Fi-FCS Pavement Grinder; and WHEREAS, on April 12, 2022, Sourcewell solicited a bid for the State of Minnesota local government unit and service cooperative issued Request for Proposal (RFP) No.060122 under Roadway Paving Equipment on the Sourcewell Procurement Portal and New York State Contract Reporter website, DJC Oregon, and Oklahoman, and the Biddingo Merx; and
WHEREAS, on June 1, 2022, proposals were opened at Sourcewell Procurement Portal; and
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06/10/2025/FIN/DLove/Item X 2 2025-XX
WHEREAS, 18 proposals were received and based on the Sourcewell intent to award one or more contracts to highest scored proposers offering the best overall quality, selection of equipment, products, and services and price; and WHEREAS, eight (8) contracts were awarded for this commodity which includes the Winder America as the manufacturer but procured through the dealer Nixion-Egli Equipment Company; and
WHEREAS, based on the ranking of the proposals offering the Roadway Paving Equipment, City staff recommends to award to Wirtgen America, Inc to purchase One (1) Wirtgen W120Fi-FCS Pavement Grinder for an amount not to exceed $797,910; and WHEREAS, Sourcewell is a cooperative agreement to streamline the procurement process by developing Request for Proposals (RFPs) for national competitive solicitations that meet or exceed local requirements; and
WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases that meet or exceed $100,000 for material, equipment, or contractual services to be formally bid; However, exceptions to the formal bidding process are granted in MMC 8-3.204(d) “Where the Purchasing Manager, in her discretion, determines that a process other than the formal bid procedure set for in Section 8-3.203 will result in a procurement for the City at the lowest possible cost commensurate with the desired quality.”; and
WHEREAS, MMC 8-3.202(h) encourages the Purchasing Manager to join with the State of California or other units of government in cooperative purchasing plans when the best cost savings interest of the City would be served; and #14..
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06/10/2025/FIN/DLove/Item X 3 2025-XX
WHEREAS, by utilizing the Sourcewell bidding process, the City is complying with the requirements defined under this code for the purchase of one (1) Wirtgen W120Fi-FCS Pavement Grinder.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Competitive Bidding Process from Sourcewell to Wirtgen America, Inc., Antioch, TN under the authorized dealer, Nixion-Egli Equipment Company, Tracy, CA for the purchase of one (1) Wirtgen W120Fi-FCS Pavement Grinder for an amount not to exceed $797,910.

BE IT FURTHER RESOLVED, that the Purchasing Manager, or her designee, is hereby authorized to issue the Purchase Order.

BE IT FURTHER RESOLVED, that the Purchasing Manager, or her designee, is hereby authorized to execute any change orders not to exceed 15% of the total purchase price.
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06/10/2025/FIN/DLove/Item X 4 2025-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 10th day of June, 2025, by Councilmember _____, who moved its adoption, which motion being duly seconded by Councilmember _____, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: _____________________________

DIANE NAYARES-PEREZ, CMC,
City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ________________________________
JOSE M. SANCHEZ, City Attorney
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06/10/2025/FIN/DLove/Item X 1 2025-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-

RESOLUTION APPROVING THE COMPETITIVE BIDDING PROCESS FROM

SOURCEWELL TO VACTOR MANUFACTURING, STREATOR, IL UNDER

THE AUTHORIZED DEALER, OWEN EQUIPMENT, FAIRFIELD, CA, FOR THE PURCHASE OF ONE (1) VACTOR 2100I FAN TRUCK FOR AN AMOUNT NOT TO EXCEED $745,310; AND AUTHORIZING THE PURCHASING
MANAGER, OR HER DESIGNEE, TO ISSUE THE PURCHASE ORDER; AND

AUTHORIZING THE PURCHASING MANAGER OR HER DESIGNEE TO
EXECUTE ANY CHANGE ORDERS NOT TO EXCEED 15% OF THE TOTAL

PURCHASE PRICE
WHEREAS, the Public Works Fleet Division provides the maintenance for all City vehicles and equipment; and
WHEREAS, new and replacement vehicles need to be added to the City’s Fleet inventory due to the operational needs of City departments and when these vehicles are added to the fleet, they are also added to the Fleet Replacement list to prepare for future replacement; and
WHEREAS, on October 24, 2024, the City Manager authorized the Purchasing Manager to solicit the procurement for Vactor 2100i Fan Truck (Jet/Vac); and WHEREAS, on October 12, 2021, Sourcewell solicited a bid for the State of Minnesota local government unit and service cooperative issued RFP No.101221 under Contract No 101221-VTR for Sewer Vacuum, Hydro-Excavation, and Municipal Pumping Equipment with Related Accessories and Supplies on the Sourcewell Procurement Portal and New York State Contract Reporter website, DJC Oregon, and Oklahoman; and
WHEREAS, on October 12, 2021, proposals were opened at Sourcewell Procurement Portal; and
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06/10/2025/FIN/DLove/Item X 2 2025-XX
WHEREAS, 22 proposals received and based on the Sourcewell intent to award one or more contracts to responsive and responsible proposers offering the best overall quality, selection of equipment, products, services and price; and WHEREAS, Nine (9) Contracts were awarded for this commodity which includes the Sewer Vacuum, Hydro-Excavation, and Municipal Pumping Equipment with Related Accessories and Supplies; and
WHEREAS, based on the highest scored proposer offering the Sewer Vacuum, Hydro-Excavation, and Municipal Pumping Equipment with Related Accessories and Supplies based on conformance to RFP, pricing, financial viability & marketplace value, ability to sell and deliver service, marketing plan, value added attributes, warranty, depth and breadth of offered equipment, and products, or service; and WHEREAS, City staff recommends to award to Vactor Manufacturing, a division of Federal Signal, for the purchase for one (1) Vactor 2100i Fan Truck an amount not to exceed $745,310; and
WHEREAS, Sourcewell is a cooperative agreement to streamline the procurement process by developing Request for Proposals (RFP)’s for national competitive solicitations that meet or exceed local requirements; and WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases that meet or exceed $100,000 for material, equipment, or contractual services to be formally bid; However, exceptions to the formal bidding process are granted in MMC 8-3.204(d) “Where the Purchasing Manager, in her discretion, determines that a process other than the formal bid procedure set for in Section 8-3.203 will result in a #14..
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06/10/2025/FIN/DLove/Item X 3 2025-XX
procurement for the City at the lowest possible cost commensurate with the desired quality.”; and
WHEREAS, MMC 8-3.202(h) encourages the Purchasing Manager to join with the State of California or other units of government in cooperative purchasing plans when the best cost savings interest of the City would be served; and WHEREAS, by utilizing the Sourcewell bidding process, the City is complying with the requirements defined under this code for the purchase of one (1) Vactor 2100i Fan Truck.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Competitive Bidding Process from Sourcewell to Vactor Manufacturing, Streator, IL under the authorized dealer, Owen Equipment, Fairfield, CA for the purchase of one (1) Vactor 2100i Fan Truck for an amount not to exceed $745,310.

BE IT FURTHER RESOLVED, that the Purchasing Manager, or her designee, is hereby authorized to issue the Purchase Order.

BE IT FURTHER RESOLVED, that the Purchasing Manager, or her designee, is hereby authorized to execute any change orders not to exceed 15% of the total purchase price.
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06/10/2025/FIN/DLove/Item X 4 2025-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 10th day of June, 2025, by Councilmember _____, who moved its adoption, which motion being duly seconded by Councilmember _____, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: _____________________________

DIANE NAYARES-PEREZ, CMC,
City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ________________________________
JOSE M. SANCHEZ, City Attorney
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www.nixonegli.com
SO. CALIFORNIA: 2044 South Vineyard Avenue, Ontario, CA 91761 • (909) 930-1822 • FAX (909) 923-2356 NO. CALIFORNIA: 800 East Grant Line Road, Tracy, CA 95376 • (209) 830-8600 • FAX (209) 830-8884 NEVADA: 2750 Marion Drive, Las Vegas, NV 89115 • (702) 342-8100 • FAX (909) 947-6014 City of Modesto May 12, 2025
501 N Jefferson St Quote Number- 101337
Modesto, CA 95354
Attention- John Spar City of Modesto County Sourcewell ID: 21208 Reference- Wirtgen W120 FCS Wirtgen Sourcewell ID: 060122-WAI Nixon-Egli Stock #: 221270 (Subject to Prior Sale)

We are pleased to quote you One Wirtgen W120Fi -FCS equipped as follows:

Standard Unit:
 Engine: 6-CYLINDER DIESEL ENGINE TYPE John Deere 6090TD-S5-PVR  Engine power 2,100 min-1: 260 kW / 349 HP / 354 PS
 Maximum power at 1,900 - 2,000 min-1: 265 kW / 355 HP / 360 PS  Exhaust standard: EU Stage V / US EPA Tier 4f
 Standard milling width: 3 ft 11 in / 1200 mm
 Electro-hydraulically opening engine cowling
 Radiator with temperature-dependent fan speed
 Highly effective noise insulation throughout the engine compartment  Automatic engine speed adjustment depending on machine load  Elastically mounted engine station with low vibration and low noise  Right-hand side of the milling drum housing can be easily opened for maintenance or drum change  Hydraulically operated rear scraper with mechanical locking  Hydraulically foldable discharge conveyor with two swing speeds, including adjustable conveyor speed for precise loading  Digital milling depth indicator on machine control panel  LEVEL PRO ACTIVE leveling system right and left
 RAPID SLOPE cross-slope sensor for LEVEL PRO ACTIVE leveling system  Precise machine height adjustment in increments of 1 or 5 mm via the machine's main control panel  Automatic water management
 Hydraulically extendable operator's platform for optimum view of the working area  Slender machine design permits unobstructed view of the milled edge as well as the working area in front of the milling drum on the right
 Conveniently accessible ladder/footstep to the operator's platform with night-time lighting and especially low bottom edge of the latter/footstep
 Robust anti-vandalism protection for the controls
 Reversing horn with clearly audible signal
 Illuminated control panel / nighttime design
 Scraper height indicator on control panel
 Dual-speed hydraulic height adjustment of front and rear track units  ISC - intelligent track speed control including hydraulic four-track drive  Reversing with the milling drum rotating. Simple and fast maneuvering  Equipped with extremely wear-resistant 2-piece polyurethane track pads  Large tool package
 Generously sized water and diesel tanks
 Comprehensive safety package with several EMERGENCY STOP switches  "Welcome-and-Go-Home-Light" feature including LED lighting in the area of the operator's platform #14..
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www.nixonegli.com
SO. CALIFORNIA: 2044 South Vineyard Avenue, Ontario, CA 91761 • (909) 930-1822 • FAX (909) 923-2356 NO. CALIFORNIA: 800 East Grant Line Road, Tracy, CA 95376 • (209) 830-8600 • FAX (209) 830-8884 NEVADA: 2750 Marion Drive, Las Vegas, NV 89115 • (702) 342-8100 • FAX (909) 947-6014 Options Included in Pricing Below:
 Canopy
 Overload Sensor
 VCS (Vacuum Cutting System)
 Milling Drum Rotation Device
 5 Camera Kit
 FCS Drum Housing
 Hydraulic Pick Extractor
 High Pressure Washdown System
 2’ FCS Drum

Machine Total: $732,867.41

8.875% Sales Tax: $65,041.98
Sales Price Total: $797,909.39
Pricing is valid for unit in stock only. If a new unit is it be ordered pricing is subject to change.

Machine Total includes Sourcewell pricing with the applicable 18% discount, plus dealer items such as: PDI/DMV Registration/Start Up Training/ Inbound freight from manufacture
The prices quoted are subject to any and all applicable tariffs, taxes, duties or fees imposed by local, state, or federal authorities. In the event that any such tariffs, duties, taxes, or fees are introduced or adjusted after the date of this quotation, it will be applied to the final invoice. Nixon-Egli Equipment Company reserves the right to revise the quoted prices to account for changes in tariffs or other applicable charges prior to finalization of the contract or invoice.

Thank you for the opportunity to quote your equipment needs. Should you have any further questions, please feel free to contact me.

Sincerely,
NIXON-EGLI EQUIPMENT CO.

Sean Hines
Sean Hines (510) 318-2799
Municipal Area Manager
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Astec Industries BOMAG Americas, Inc.

Broce Manufacturing
Company, Inc.

Calder Brothers
Corporation dba Mauldin
Paving Products Caterpillar, Inc. CemenTech, Inc. Diamond Steel Co.

Dynapac North America,
LLC Etnyre International
Possible Points
Conformance to RFP
Requirements 50 42 42 34 40 43 38 37 37
Pricing 400 333 344 295 296 325 323 338 304
Financial Viability and
Marketplace Success 75 65 61 51 67 56 54 64 58
Ability to Sell and Deliver
Service 100 85 84 77 92 84 67 85 85
Marketing Plan 50 40 41 37 41 43 34 41 39
Value Added Attributes 75 61 64 53 67 66 57 62 56
Warranty 50 42 42 39 41 43 35 43 39
Depth and Breadth of Offered
Equipment, Products, or
Services 200 163 167 161 167 151 137 173 163
Total Points 1,000 831 845 747 811 811 745 843 781
Rank Order 5 1 13.5 7.5 7.5 15 3 10
Falcon Equipment
Holdings, LLC LeeBoy Mazio Attachments, LLC Sakai America, Inc.

SB Manufacturing, Inc. dba
Superior Broom
Stepp Manufacturing
Company, Inc. ThorWorks Industries Weiler, Inc. Wirtgen America, Inc.

Possible Points
Conformance to RFP
Requirements 50 40 42 26 38 41 40 44 39
Pricing 400 324 338 233 307 335 328 330 334
Financial Viability and
Marketplace Success 75 61 63 21 54 58 63 60 55
Ability to Sell and Deliver
Service 100 80 84 53 79 77 76 85 85
Marketing Plan 50 44 41 25 36 40 40 42 37
Value Added Attributes 75 60 65 35 55 52 55 59 62
Warranty 50 43 43 23 41 41 40 43 42
Depth and Breadth of Offered
Equipment, Products, or
Services 200 136 168 106 137 126 134 169 167
Total Points 1,000 788 844 522 747 770 776 832 821
Rank Order 9 2 16 13.5 12 11 4 6
Greg Grunig, MS, Procurement Lead Analyst Brandon Town, CPSM, CPSD, Procurement Analyst Michael Muñoz, CPPB, Procurement Analyst Craig West, Procurement Analyst Proposal Evaluation
Roadway Paving Equipment RFP #060122

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2100i
Quote Number:-2025-79534
Date:- 02-13-2025

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Team Member :- John Abramowski
Tel : -
Presents a
Proposal Summary
2100i
Truck Mounted Single Engine
Combination Sewer Cleaner
For
City of Modesto
Sourcewell Contract # #101221-VTR
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2100i
Quote Number:-2025-79534
Date:- 02-13-2025

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Team Member :- John Abramowski
Tel : -
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2100i
Quote Number:-2025-79534
Date:- 02-13-2025

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Team Member :- John
Abramowski
Tel : -
BASIC
MODEL
Vacuum System
Model Type
Water Flow
Chassis Source
Controls
Single Engine - Dual Stage Fan
Combo

60.0 Customer
Debris Body Capacity (cu.yd.)
Water Capacity
Water Pressure
Water Tank Material
Blower High Temp Shutdown

12.0 1300
2500
Aluminum
false

CHASSIS
PAFT370A-2025-E Tandem Axle- 2025 Freightliner 114SD SBA 6x4- 370 HP- Auto- 66- 000 GVWR- GHG

STANDARD FEATURES
011iSTD Aluminum Fenders
012iSTD Mud Flaps
016iSTD Color Coded Sealed Electrical System
019iASTD Intuitouch Electronic Package
020iSTD Double Acting Hoist Cylinder
025iASTD Handgun Assembly
026iSTD Ex-Ten Steel Cylindrical Debris Tank
030iSTD Flexible Hose Guide
032iSTD (3) Nozzles with Carbide Inserts w/Rack
045iSTD Suction Tube Storage
046iSTD 1" Nozzle Pipe
048iSTD 10' Leader Hose
1001iSTD Flat Rear Door w/Hydraulic Locks
1005iSTD Dual Stainless Steel Float Shut Off System
3019iSTD Digital Water Pressure Gauge
4006iSTD Front Joystick Boom Control
4010iSTD Boom Hose Storage
4017iSTD Boom Out of Position Message and Alarm
5010iSTD Rodder System Accumulator - Jack Hammer on/off Control w/ manual valve
5011iSTD 3"Y -Strainer @ Water Pump
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2100i
Quote Number:-2025-79534
Date:- 02-13-2025

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Team Member :- John
Abramowski
Tel : -
5015iSTD Midship Handgun Coupling
5019iSTD Chassis Engine Cooling Package
5022iSTD Side Mounted Water Pump
6005iDSTD Digital Hose Footage Counter
6007iSTD Hose Reel Manual Hyd Extend/Retract
6009iSTD Hose Reel Chain Cover
6017iSTD Hydraulic Tank Shutoff Valves
6019iSTD Rodder Pump Drain Valves
6020iBSTD Hydraulic Extending 15" - Rotating Hose Reel - 1" x800' Capacity 7001iSTD Tachometer/Chassis Engine w/Hourmeter
7003iSTD Water Pump Hour Meter
7004iSTD PTO Hour Meter
7005iSTD Hydraulic Oil Temp Alarm
009iSTD Under Engine Toolbox
1023iSTD Lube Manifold, with Lube Chart
1024iSTD Debris Body Vacuum Relief System
1031iSTD Debris Deflector Plate
1033iSTD 60" Dump Height
1041iSTD Debris Body-Up Message and Alarm
2001iSTD Low Water Indicator On Screen w/Alarm and Water Pump Flow Indicator
2011iSTD 3" Y -Strainer at Passenger Side Fill with 25' Fill Hose 2022iSTD Additional Water Tank Sight Gauge
2023iSTD Liquid Float Level Indicator
3002iASTD Single Engine Dual Stage Fan
8000iSTD Circuit Breakers
8025iSTD LED Lights- Clearance- Back-up- Stop- Tail & Turn 9002iSTD Tow Hooks- Front and Rear
9003iSTD Electronic Back-Up Alarm
i110STD Module Paint- DuPont Imron Elite - Wet on Wet
S390ASTD 8" Vacuum Pipe Package
S560STD Emergency Flare Kit
S590STD Fire Extinguisher 5 Lbs.
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2100i
Quote Number:-2025-79534
Date:- 02-13-2025

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Team Member :- John
Abramowski
Tel : -
BOOM
4011iB Bellypack Wireless Controls with hose reel controls- 2-way communications- and LCD Display
4015i 180 deg. 10ft Telescoping Boom
4022iA Telescopic Boom Elbow- Hard Hat Style

DEBRIS BODY
1015iBFSTD Fixed Rear Door Pipe Rack -8" Pipe
1016iSTD "Subframe Mounted -2 Pipe Rack -8"
1003i Debris Body Flushout
1005iA S.S Float Ball Cage for Float Shut Off System
1014i Centrifugal Separators (Cyclones)
1015i Folding Pipe Rack - Curbside -8" Pipe
1015iA Folding Pipe Rack - Streetside -8" Pipe
1022i Rear Door Splash Shield
3021i Digital Debris Body Level Indicator Tied to Vacuum Relief 4020i Anti Splash Valve- Body Inlet

REAR DOOR
1008iA 6" Rear Door Knife Valve w/Camloc w/Port -6:00 position 1009iD Full Rear Door Swinging Screen

HOSE REEL
6003iC 800' x 1" Piranha Sewer Hose2500 PSI in lieu of STD 6004iD Rodder Hose Pinch Roller
6014i High Pressure Hose Reel
6025iE Hose Wind Guide (Dual Roller)- Auto- Power Indexing 8030i Hose Reel Wrapped for Delivery

WATER TANKS
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2016i Additional Water- 1300 Gal Total
3020i Digital Water Level Indicator
5015i Handgun Couplers- Front and Rear

MISCELLANEOUS
8024i Amber Lights for Flashing Light Package
9023iA Safety Cone Storage Rack - Post Style
CM-PAFT370A-2025-01 Chassis Modifications - 2025 Freightliner PAFT370A

LIGHTING
8001iM Rear Directional Control- LED Arrowstick
8002iA Wireless- Waterproof- Rechargable- Handheld- LED Spot Light w/12V Charger
8004iD Rear Mounted- LED Beacon Light
8020iH 10 Light Package- 10 Federal Signal Strobe Lights- LED 8027i LED Mid-Ship Turn Signals
8029i Worklights (2)- LED- Rear Door
8029iA Worklight- LED- Operators Station
8029iB Worklight- LED- Hose Reel Manhole
8029iC Worklight- LED- Passenger Side
9021iA Camera System- Front and Rear
PAINT
Cab Paint Color
Module Paint Color
White
White
i124STD Vactor 2100i Body Decal- Standard
V-LOGO-APPL. Vactor Logos - Applied

TOOLBOX
9070iA Toolbox- Front Bumper Mounted- 16 x 12 x 18 w/(2) LED Side Markers
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9070iB Long Handle Tool Storage
9071iE Toolbox- Behind Cab - 16w 30h x 96d
9072iA Toolbox- Driver Side Chassis Frame- 60w x 24h x 24d 9073iA Toolbox- Passenger Side Chassis Frame- 30w x 18h x 24d

WATER ACCESSORIES
5016i Additional Rodder System Accumulator (Manual Operation) 5021iC Hydro Excavation Kit - Includes Lances w/ Shield- NozzlesStorage Tray- and Vacuum Tube

WATER SYSTEM
5001iA 60 GPM/2500 PSI Jet Rodder pump
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Sourcewell discounted pricing has been discounted at 3% from vehicle price Sale price for Vactor 2100i Fan….………………….…………….…….….….……….…….$684,555.00 Sales Tax @ 8.8750%, CA…………………………….……………………..……..………..$60,754.26 Total Price FOB City of Modesto...…..…………….……………….……….…..….……..…$745,309.26 Registration and training included

THE PROPERTY HEREIN IS GUARANTEED BY MANUFACTURER'S WARRANTY ONLY AND SELLER MAKES NO WARRANTY

EXPRESSED OR IMPLIED, OF MERCHANTABILITY OR OTHERWISE, OR OF FITNESS FOR ANY PARTICULAR PURPOSE, THAT EXTENDS BEYOND THE ABOVE DESCRIPTION OF THE EQUIPMENT.

NOTE: Price is good for 90 days. Cost increases due to the addition of Government mandated safety or environmental devices incurred after the date of this proposal, will be charged to you at our cost. Proof of such costs, if any, will be documented.

TAXES: SALES TAX applicable at time of delivery will be shown on our invoice. FEDERAL EXCISE TAXES, if applicable, will require payment unless a properly executed Exemption Certificate is submitted.

DELIVERY: 12-14 Months ARO TERMS: Net 10 or Approved Lease Let me know if you need any additional information. I can provide you with a bid spec if you need it. I would welcome the opportunity to set up a demo to show you guys just how easy it is to use our unit. If you have any questions, please give me a call at (510)604-9970.

Sincerely,
Chad Medina
Chad Medina
Territory Account Manager
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PROPOSAL NOTES:

1. Multiple unit orders will be identical to signed proposal. Changes or deviations to any unit of a multiple unit order will require a new signed proposal.

2. Chassis specifications and data codes for customer supplied chassis must be submitted to and approved by Vactor prior to submittal of customer purchase order

3. All prices quoted are in US Dollars unless otherwise noted.

4. This proposal incorporates, and is subject to, Vactor’s standard terms and conditions attached hereto and made a part hereof.

Signed By: Date:
_\s1___________________ \d1____________________
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DomesticSales Terms and Conditions
ORDERS: All orders are subject to acceptance by VactorManufacturing, Inc. or Guzzler Manufacturing, Inc. (hereafter referred to as Vactor). Orders for products not normally carried in stock or requiring special engineering or manufacturing is in every case subject to approval by Vactor's Management.

PRICES: All orders are subject to current prices in effect at the time of order acknowledgement. F.O.B. Point: Unless otherwise stated, all prices listed are F.O.B. factory.  Vactor reserves the right to increase the order price set forth in this Proposal Summary at any time before delivery to Buyer to reflect any increase in Vactor's costs to manufacture or deliver the ordered product due to any factor beyond the reasonable control of Vactor.  Vactor shall provide Buyer with prompt electronic notice of any such price increase.  Buyer shall have five days from receipt of such notice to cancel its order, absent which Buyer shall be deemed to have consented to the price increase.

PAYMENT TERMS: The company's payment terms are due upon receipt, unless otherwise stated. However, until such time as Vactor receives full payment, Vactor shall maintain a purchase money security interest in the product.

CANCELLATION: Orders cannot be cancelled except upon terms that will compensate Vactor for any loss or damage sustained. Such loss will be a minimum of 10% of the purchase price.

SHIPMENT: All proposals are based on continuous and uninterrupted delivery of the order upon completion, unless specifications distinctly state otherwise. In the event that agreement is reached for Vactor to store completed items, they will be immediately invoiced to the customer and become due and payable. Storage shall be at the risk of the customer and Vactor shall be liable only for ordinary care of the property.

STORAGE CHARGES: Vactor shall charge the customer at current rates for handling and storing customer's property (e.g. truck chassis) held for more than thirty (30) days after notification of availability for shipment. All customer's property, or third party's property, that is stored by Vactor is at the customer's or other party's risk. Vactor is not liable for any loss or damage thereto caused by fire, water, corrosion, theft, negligence, or any caused beyond its reasonable control.

PERFORMANCE: Vactor shall not be liable for failure to complete the contract in accordance with its terms if failure is due to wars, strikes, fires, floods, accidents, delays in transportation or other causes beyond its reasonable control.

EXPERIMENTAL WORK: Work performed at customer's request such as sketches, drawings, design, testing, fabrication and materials shall be charged at current rates.

SKETCHES, ENGINEERING DRAWINGS, MODELS and all preparatory work created or furnished by Vactor, shall remain its exclusive property; and no use of same shall be made nor may ideas obtained therefrom be used except with the consent of and on terms acceptable to Vactor.

TAXES: Buyer's final cost shall include all applicable sales and use taxes, including all sales and use taxes attributable to any changes made to Buyer's initial order placed hereunder or to any changes to applicable sales and use tax laws.

However, Vactor Manufacturing, Inc. shall be responsible for Federal Excise Tax(F.E.T.) unless it is separately stated on the invoice and added to the selling price. If F.E.T. is not separately stated on the invoice it has not been included in the price and Vactor will pay any F.E.T. due itself and bear the cost of the tax. Any refunds or adjustments to the F.E.T. in such cases belong to Vactor.
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PRODUCT IMPROVEMENTS: Vactor reserves the right to change manufacturing specifications and procedure in accordance with its product improvement policy.

MOUNTING PRICES: Mounting prices assume normally factory installation on a truck chassis suitable for the unit purchased. Relocation of batteries, fuel tanks, mufflers, air tanks, etc. will be an additional charge, billed at the standard factory labor rate.

WARRANTY: Vactor warrants its products to be free from defects in material and workmanship for a period of 12 months, subject to the limitations and conditions set forth in its current published warranty. Other than those expressly stated herein. THERE ARE NOT OTHER WARRANTIES OF ANY KIND EXPRESS OR IMPLIED, AND SPECIFICALLY

EXCLUDED BUT NOT BY WAY OF LIMITATION, ARE THE IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE AND MECHANTABILITY.

IT IS UNDERSTOOD AND AGREED THE VACTOR'S LIABILITY WHETHER IN CONTRACT, IN TORT, UNDER ANY

WARRANTY IN NEGLIGENCE OROTHERWISE SHALL NOT EXCEED THE RETURN OF THE AMOUNT OF THE

PURCHASE PRICE PAID BY THE PURCHASER AND UNDER NO CIRCUMSTANCES SHALL VACTOR BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES. THE PRICES STATED FOR THE EQUIPMENT IS A CONSIDERATION IN LIMITING VACTOR'S LIABILITY. NO ACTION REGARDLESS OF FORM,

ARISING OUT OF THE TRANSACTION OF THE AGREEMENT MAY BE BROUGHT BY PURCHASER MORE THAN ONE YEAR AFTER THE CAUSE OF ACTION HAS OCCURRED.

VACTOR'S MAXIMUM LIABILITY SHALL NOT EXCEED AND BUYER'S REMEDY IS LIMITED TO EITHER (I) REPAIR

OR REPLACEMENT OF THE DEFECTIVE PART OF PRODUCT, OR AT VACTOR'S OPTION (II) RETURN OF THE

PRODUCT AND REFUND OF THE PURCHASE PRICE AND SUCH REMEDY SHALL BE BUYER'S ENTIRE ANDEXCLUSIVE REMEDY.

CHOICE OF LAW: These Terms and Conditions shall be construed according to the laws of the State of Illinois. Failure at any time by Vactor to exercise any of its rights under this agreement shall not constitute a waiver-thereof nor prejudice Vactor's right to enforce it thereafter.

COMPLETE AGREEMENT: These terms and conditions, contain the complete and final agreement between the parties hereto and no other agreement in any way modifying any of these terms and conditions will be binding on Vactor unless in writing and agreed to by an authorized representative of Vactor. All proposed terms included in Buyer's purchase order or other standard contracting documents are expressly rejected.

I agree with the above terms and conditions:
\s1___________________
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Team Member :- John
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Date: _\d1______________
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Aries Industries, Inc. Badger Daylighting CUES, Inc. Deep Trekker DuCo, LLC (VacͲCon, Inc.) Elgin Sweeper Co. (Vactor
Manufacturing, a Division
of Federal Signal) GapVax, Inc. Garsite Progress, LLC Gradall Industries, Inc. Holland Pump Company Hurco Technologies, Inc.

Possible Points
Conformance to RFP
Requirements 50 44 42 43 39 42 41 39
Pricing 400 340 346 340 305 307 340 338
Financial Viability and
Marketplace Success 75 66 64 64 54 66 56 60
Ability to Sell and Deliver
Service 100 89 84 80 76 84 70 67
Marketing Plan 50 45 41 42 39 41 38 40
Value Added Attributes 75 67 63 67 54 59 61 56
Warranty 50 41 41 39 40 40 41 40
Depth and Breadth of
Offered Equipment,
Products, or Services 200 179 170 161 144 159 159 144
Total Points 1,000 871 851 836 751 798 806 784Rank Order 1 3 414 8 611 Kaiser Premier, LLC Park Pumps & Controls RingͲOͲMatic
Sewer Equipment Co. of
America Stetco Group, LLC Super Products, LLC
Texas Underground, Inc.
dba Pipehunter, Inc.

Thompson Pump and
Manufacturing Company,
Inc.

Visual Imaging Resources,
LLC dba VIR Proteus
Wachs Utility Products
(Illinois Tool Works)
WasteWater Solutions,
LLC
Possible Points
Conformance to RFP
Requirements 50 40 33 41 44 38 40 39 43 40
Pricing 400 311 238 333 341 328 311 279 310 314
Financial Viability and
Marketplace Success 75 58 49 60 68 56 63 60 64 64
Ability to Sell and Deliver
Service 100 75 58 82 86 68 78 71 84 77
Marketing Plan 50 41 24 40 44 40 40 39 42 36
Value Added Attributes 75 55 48 61 69 53 59 53 68 61Warranty 50 40 37 40 41 39 40 40 40 38 Depth and Breadth of
Offered Equipment,Products, or Services 200 150 145 178 173 135 160 165 148 158 Total Points 1,000 770 632 835 866 757 791 746 799 788
Rank Order 12 16 5 213 9157 10
Greg Grunig, Procurement Lead Analyst Carol Jackson, Procurement Analyst Craig West, Procurement Analyst Nick Scholer, Procurement Analyst Sewer Vacuum, HydroͲExcavation, and Municipal Pumping Equipment with Related Accessories and Supplies RFP #101221 Proposal Evaluation

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CITY OF MODESTO

CITY COUNCIL REPORT
DATE OF MEETING:

June 10, 2025
Date: May 13, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Christina Alger, Director of Human Resources
SUBJECT: Employment after Retirement Review Final Report CONTACT: Dawn Kelley, Human Resources Manager, [email protected], 209-577-5490
DESCRIPTION:

Consider accepting the Final Report of the Employment after Retirement Review conducted by California Public Employees’ Retirement System (CalPERS). (Funding Source: Various Funds) STRATEGIC PLAN ELEMENT:

This item supports the 2025-2026 Strategic Plan’s focus of Governance and Service Delivery under Goal H: Achieve Financial Sustainability.

BACKGROUND:

All City of Modesto qualified employees are required to participate in the City of Modesto Safety (Police and Fire) or Miscellaneous (all other) Plans, agent multi-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers.

Benefit provisions under the Plans are established by the State statute and City resolution. At any point of time, CalPERS can perform audits on the City’s Plans to ensure we are following the applicable laws and resolution.

In March 2024, the City was informed by CalPERS that the Office of Audit Services (OFAS) would be performing a review of the City’s use of Retired Annuitants. The objective of the review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code sections 21220.5, 21221, 21224, and 7522.56 and Title 2 of the California Code of Regulations sections 579.25 and 586.2.

OFAS selected a sample of twenty-five (25) public agencies who reported active RA appointments. OFAS performed procedures to determine whether the agencies properly employed and reported RA appointments, work hours, and payroll information to CalPERS in accordance with employment after retirement requirements. The review covered the period of January 1, 2020 through December 31, 2023. They sampled six (6) RA from City of Modesto. #15..
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City Council Report, June 10, 2025
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On September 10, 2024, the City was provided a draft report of the results of this audit. OFAS reported four (4) areas of findings- 1) Two (2) RA’s did not comply with unemployment insurance compensation certification (certify in writing they had not received unemployment benefits in the 12 months prior to becoming an RA); 2) One (1) RA whose position was not supported with documentation to support the initial hiring of the RA; 3) One (1) RA the City did not provide sufficient documentation to demonstrate the RA’s work was consistent with extra help purposes; 4) One (1) RA hours were inaccurately reported when an RA reported working overtime in errorthe time sheet correction was not reported to CalPERS; one (1) RA hours were reported inaccurately and the RA exceeded the maximum number of hours allowed to work during a fiscal year.

City of Modesto was given the opportunity to respond to the draft report. Human Resources and the Payroll Division in the Finance Department drafted the response. We agreed with finding 1) and provided documentation that had already been corrected and includes unemployment insurance compensation certification at the time of the RA initial appointment date. We also agreed with finding 4) and provided information that additional staffing within the payroll division is needed and additional training will occur to ensure timely audits of works hours and pay rates to ensure accurate reporting. We disagreed with findings 2) and 3) and submitted information within CalPERS Publication 33 to support our need for the specialized skillset of a Police Officer as extra help and specialized skillset related to recreation and golf courses within the City of Modesto.

DISCUSSION:

The final audit report was received by the City in November 2024. OFAS reported that all 25 agencies reviewed did not employ RAs in compliance with employment after retirement provisions in various areas.

OFAS Employer Compliance Review Final report included the four (4) areas of findings for City of Modesto, all as stated within the draft report. The final report is attached to this item for review.

The report identified the common causes for the non-compliances identified above, for all agencies, were due to agencies not having a clear understanding and knowledge of all employment after retirement requirements, inadequate processes to obtain and maintain documentation to support RA hiring needs, clerical errors and employer system issues and limitations impacting accurate reporting of required RA information.

The final report states any issue identified within the report will be forwarded to the appropriate division and includes a recommendation that employers work with CalPERS Employer Account Management to resolve any working after-retirement findings noted and identify all impacted retirees.

FISCAL IMPACT:

There is no fiscal impact to the action of accepting the CalPERS Office of Audit Services Employer after Retirement Review final report.
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COMMITTEE RECOMMENDATION:

This item was taken to the Audit Committee on April 23, 2025, and the Committee recommended forwarding this item to Council for acceptance.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Motion accepting the Final Report of the Employment after Retirement Review conducted by California Public Employees’ Retirement System (CalPERS).

Approved by:

Christina Alger, Director of Human Resources
Joseph P. Lopez, City Manager
Attachments:

1. CalPERS Office of Audit Services Employer after Retirement Review Final Report. #15..
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Employment After Retirement
Review
CalPERS Office of Audit Services
Employer Compliance Review
Job Number: P23-002
November 2024
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California Public Employees’ Retirement System
Office of Audit Services
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-0422 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov Memorandum
November 7, 2024
To: CALPERS PUBLIC AGENCY AND GOVERNING BODIES PER ATTACHMENT From: BELIZ CHAPPUIE, Division Chief
Office of Audit Services
Subject: Employment After Retirement Review
Enclosed is the Office of Audit Services (OFAS) final report on the results of our Employment After Retirement Review and includes the results for 25 public agencies (employers) reviewed.

The observations identified and the details of the impacted employees have been shared with each employer through a draft report. Employers’ responses have been summarized in their respective final reports included in the appendix to this report. Employers’ full responses to the draft reports have been forwarded to the appropriate CalPERS division and are also on file at OFAS and are available upon request.

In accordance with our resolution policy, we have referred the issues identified in the report to the appropriate division at CalPERS. Employers should work with the division to address the recommendations specified in our report. It was our pleasure to work with each employer, and we appreciate their time and assistance during this review.

Attachment
cc: Risk and Audit Committee Members
Marcie Frost, Chief Executive Officer, CalPERS
Kim Malm, Deputy Executive Officer, CSS, CalPERS
Brad Hanson, Division Chief, EAMD, CalPERS
Heather Porter, Assistant Division Chief, EAMD, CalPERS Gregery Lake, Staff Services Manager II, EAMD, CalPERS
Courtney McGourty, Staff Services Manager I, EAMD, CalPERS Andrew Harris, Staff Services Manager I, EAMD, CalPERS
LaCretia Bratcher, Administrative Assistant II, MAMD, CalPERS #15..
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Table of Contents
Objective........................................................................................................................ 2 Scope ............................................................................................................................. 2 Background ................................................................................................................... 2 Results in Brief.............................................................................................................. 3 Retired Annuitant Requirements Not Met .................................................................... 3 Appointments Not Reported ........................................................................................ 4 Retired Annuitants Received Additional Compensation............................................... 4 Work Hours and Payrate Non-Compliance.................................................................. 5 Bona Fide Separation Not Demonstrated.................................................................... 5 Written Unemployment Insurance Compensation Certification Non-Compliance ........ 6 Other Matters................................................................................................................. 7 Conclusion................................................................................................................... 10 Appendix A – Employer Final Reports ...................................................................... 11 #15..
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Employment After Retirement Review

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Objective
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

Scope
OFAS selected a sample of 25 public agencies (employers) who reported Active RA appointments and performed procedures to determine whether the employers properly employed and reported RA appointments, work hours, and payroll information to CalPERS in accordance with employment after retirement requirements. Our review covered the period of January 1, 2020, through December 31, 2023.

Unless otherwise specified, OFAS did not review employer compliance with the Public Employees’ Retirement Law (PERL) with regard to any areas outside of the scope described herein, including, but not limited to, independent contractors and third-party employees, contribution amounts and rates, disability and industrial disability retirement, unemployment insurance benefits, retirement benefit calculations, and other requirements not specified in the scope.

Background
An RA is a retired person who works as an at-will employee of a CalPERS employer with certain employment restrictions and without reinstatement from retirement or loss or interruption of benefits. For public agency employers, RA appointments are typically either “extra help” appointments during an emergency to prevent stoppage of public business or because the retired person has specialized skills needed in performing work of limited duration, or “vacant position” appointments that are interim appointments to a vacant position during recruitment for a permanent appointment and deemed by the employer’s governing body to require specialized skills or during an emergency to prevent stoppage of public business. These types of RA appointments are governed by GC sections 21220.5, 21221, 21224, and 7522.56, which provide the following employment after retirement conditions and requirements:

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person shall not be eligible to be employed for a period of 180 days following the date of retirement unless they meet one of the following conditions:
o Employer certifies the nature of employment, and the RA appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the employer’s governing body in a public meeting.
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o 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.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

A retired person’s compensation shall not be less than the minimum or exceed the maximum monthly base salary paid by the employer to other employees performing comparable duties as listed on a publicly available pay schedule divided by 173.333 to equal an hourly rate.

A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing their compliance to the employer upon accepting an offer.

Results in Brief
OFAS completed the review of 25 employers and included their individual final reports in Appendix A. The review identified that all 25 employers (100 percent) did not employ RAs in compliance with employment after retirement provisions in accordance with GC sections 21220.5, 21221 subdivision (h), 21224, and 7522.56 and CCR sections 579.25 and 586.2. Specifically, we noted the following observations.

Retired Annuitant Requirements Not Met
A total of 18 employers (72 percent) could not demonstrate that RA positions and appointment types complied with employment after retirement requirements, had RA appointments that did not meet all interim vacant appointment requirements and/or did not report the correct RA appointment start date. The following instances were noted:

Retired Annuitant Position or Appointment Type Not Supported o Fourteen employers could not demonstrate that their RA positions were required to perform work during an emergency to prevent public business stoppage or skills needed for a limited duration. For example, an employer employed an RA as a Consultant Specialist since December 17, 2012; however, the employer did not provide documentation, such as hiring justification, duty statements, or other documentation, to support and #15..
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identify the emergency occurring at the time of hire, or the retiree’s skills needed in performing work of limited duration.
o Four employers could not demonstrate their RA appointments were an extra help type. For example, an employer hired an RA as a Chief District Attorney Investigator and considered the RA’s work as extra help.

However, the employer could not provide sufficient documentation to demonstrate the RA’s work was consistent with extra help purposes.

Employer records indicated the RA was hired due to a vacancy when the prior Chief District Attorney Investigator resigned, and the RA performed all the duties of the existing permanent Chief District Attorney Investigator position. The projected end date of the RA’s work was until the recruitment and hiring was completed for the permanent position. However, the RA remained in the position after the permanent position was filled.

Ineligible Interim Vacant Appointment – Six employers hired retirees to work in interim vacant positions. However, the employers did not obtain their governing board’s approval of the interim vacant appointment and/or did not have active recruitment for the permanent position while the RA occupied the vacant position.

For example, an employer hired an RA as a Water Systems Supervisor - RA.

Employer records indicated the RA was hired to provide oversight of water systems operations until the recruitment of a permanent Water Systems Supervisor was completed to fill the vacant position. However, the employer was unable to provide documentation to demonstrate that the RA’s interim appointment was approved by their governing board. Additionally, the employer did not have continuous, active recruitment to fill the permanent position during the entire time the RA occupied the position.

Incorrect Appointment Start Date – Three employers incorrectly reported RA appointment start dates. For example, an employer reported an appointment date of April 22, 2019 for an RA. However, employer records indicated the RA’s correct appointment start date was April 8, 2019.

Appointments Not Reported
A total of six employers (24 percent) did not report appointments for RAs. The employers did not enroll the retirees upon hire and report the retirees’ hours worked and associated payrates. For example, an employer hired a retiree as a Temporary Police Officer, effective March 2, 2020 and employer records indicated the retiree worked a total of 904 hours during fiscal year 2020-21. However, the employer did not enroll the retiree as an RA or report the retiree’s hours worked and associated payrates.

Retired Annuitants Received Additional Compensation
A total of seven employers (28 percent) provided additional compensation or benefits to RAs, including shift differential pay, Staff Psychiatrist Emergency/Inpatient Services pay, Emergency Treatment Services/Inpatient Treatment Facility Differential pay, #15..
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COVID Retention Pay and sick leave. For example, an employer compensated an RA for shift differential pay in the total amount of $947.28 during a sampled pay period.

Work Hours and Payrate Non-Compliance
A total of 20 employers (80 percent) were not compliant with RA work hours and payrate requirements for one or more reasons noted below.

Work Hours and Payrates Not Reported – Sixteen employers did not report RA work hours and associated payrates or reported inaccurate work hours and payrates. In addition, three employers employed RAs whose total work hours exceeded 960 in a fiscal year and inaccurately reported their hours worked. For example, an employer reported a total of 832.50 work hours during fiscal year 2022-23. However, employer records indicated the RA worked a total of 1,070.50 hours.

Payrate Non-Compliance – Six employers reported RA payrates that were less than the minimum payrate or exceeded the maximum payrate for a position performing comparable duties. For example, an employer paid and reported an hourly payrate of $65 for an RA who was hired as a Temporary Employee in the Senior Public Works Inspector position. However, the payrate was for a Temporary Employee, which was higher than the maximum hourly payrate of $51.70 for a Senior Public Works Inspector position.

Payrate Not Supported – Four employers could not support the RA payrates reported. The employers did not have documentation to support the RAs’ work duties, such as a duty statement or other supporting documentation. As a result, the employers could not demonstrate the RAs’ payrates were consistent with a payrate for a position performing comparable duties.

Actual Hours Worked Not Supported – Two employers could not support reported RA hours worked because they did not require the RAs to complete timesheets for actual hours worked.

Bona Fide Separation Not Demonstrated
A total of five employers (20 percent) were unable to demonstrate that their RAs had a bona fide separation in service. The employers employed RAs who were under their normal retirement age and did not adhere to a separation in service of at least 60 calendar days between the retiree’s date of retirement and the first day of work. Number of days ranged from 0 to 35 days after the date of retirement. In addition, three employers had a predetermined agreement to return to work with RAs who were under their normal retirement age.
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Written Unemployment Insurance Compensation Certification Non-Compliance A total of 20 employers (80 percent) did not obtain written certification from the RAs to indicate that they did not receive unemployment insurance compensation for prior RA employment during the 12-month period before their RA appointment with the employer.

Common causes for the non-compliances identified above were due to employers not having a clear understanding and knowledge of all employment after retirement requirements, inadequate processes to obtain and maintain documentation to support RA hiring needs, clerical errors, and employer system issues and limitations impacting accurate reporting of required RA information.

Employers should ensure retirees are employed, enrolled, and reported in compliance with employment after retirement provisions in accordance with GC sections 21220.5, 21221, 21224, and 7522.56 and CCR sections 579.25 and 586.2. Employers should work with CalPERS Employer Account Management Division to resolve any working after-retirement violations noted and identify all impacted retirees. Additionally, for all impacted retirees identified, the employer should ensure all RA appointments, payrates, and work hours are reported accurately and make adjustments as necessary to any impacted retiree accounts in accordance with GC section 20160.

Figure 1 on page 7 identifies the Employment After Retirement Review observations and the percentage of non-compliant employers. Table 1 on page 9 lists employers reviewed, associated observations, other matters noted, and the Appendix page number for each employer’s final report.
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Employment After Retirement Review

Page 7 ends

Figure 1 – Observations and Percentage of Non-Compliant Employers Other Matters
OFAS identified the following other matters for 22 employers that were outside the scope of this review (see Table 1 on page 9).

Duration of RA Employment – Twenty-two employers hired RAs whose length of employment indicated that they may not have been performing work during an emergency to prevent stoppage of public business, for a limited duration, or in connection with an interim appointment to a vacant position. The noted durations of RA employment ranged from 5 to 22 years, in which most of the RAs’ appointments with the employers are Active.

Appointment Not Reported – One employer hired an RA that occurred outside of our review period and did not report the appointment to CalPERS. The employer hired a retiree in a part-time capacity, effective March 8, 2010 and did not enroll the retiree as an RA until May 16, 2018.

Pay Schedule Non-Compliance – Three employers did not maintain publicly available pay schedules that were in compliance with GC section 20636 and CCR section 570.5.

Permanent Separation Not Reported – An employer maintained an Active appointment for an RA and did not report a permanent separation date.

Incorrect Appointment Start Date – Six employers reported incorrect RA appointment start dates for RAs hired prior to the issuance of Circular Letter 200-002-14, dated January 14, 2014. For example, an employer hired a retiree on January 4, 2010. However, the employer reported the RA’s appointment start date as May 16, 2018.
72%
24%
28%
80%
20%
80%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Retired Annuitant Requirements Not Met
Appointments Not Reported
Retired Annuitants Received Additional Compensation
Work Hours and Payrate Non-Compliance
Bona Fide Separation Not Demonstrated
Written Unemployment Insurance Compensation
Certification Non-Compliance
Employment After Retirement Review Observations
#15..
- 606 -
Employment After Retirement Review

Page 8 ends

Incorrect Member Category – An employer incorrectly reported the member category for an RA employed as a Deputy Sheriff as Miscellaneous and should have reported the member category as Safety-Sheriff.

Invalid Appointment – An employer reported an invalid appointment for an RA. The employer created an RA appointment in myCalPERS, effective April 25, 2009 and did not delete the appointment for the RA who did not perform any work and earn wages.

These matters were discussed with the employers and also included in the employers’ reports. OFAS encourages employers to work with CalPERS to ensure compliance with the PERL.
#15..
- 607 -
Employment After Retirement Review

Page 9 ends

Table 1 – Summary of Employer Observations and Other Matters No. Employer Observation
Type
Other
Matters
Appendix
Page
Number
1 Bolinas Fire Protection District A, C, D X A-1
2 Chester Public Utility District A, C, D, F X A-7
3 City of Berkeley A, B, D, F X A-14
4 City of El Monte A, D, F X A-20
5 City of Hayward B, C, D, E, F X A-26
6 City of Livermore A, D, F X A-32
7 City of Modesto A, D, F X A-38
8 City of Sacramento A, D, E, F X A-44
9 City of San Mateo A X A-50
10 City of Signal Hill A, D, F - A-54
11 City of Tustin D, E X A-58
12 County of Butte C, D, F X A-63
13 County of El Dorado A, D, E, F X A-68
14 County of Napa F X A-73
15 County of Placer F X A-77
16 County of Riverside B, C, D X A-81
17 County of Santa Clara A, B, E, F X A-86
18 County of Solano A X A-92
19 County of Yolo A, C, D, F X A-96
20 Garden Valley Fire Protection District A, B, D, F X A-101 21 Kensington Community Services District A, D, F - A-106 22 Mammoth Lakes Fire District A, C, D, F X A-114
23 Oakland City Housing Authority A, D, F - A-120
24 Santa Clara County Central Fire Protection District D, F X A-126 25 West Almanor Community Services District A, B, D, F X A-131 Tickmark Legend:

A - Retired Annuitant Requirements Not Met
B - Appointments Not Reported
C - Retired Annuitants Received Additional Compensation D - Work Hours and Payrate Non-Compliance
E - Bona Fide Separation Not Demonstrated
F - Unemployment Insurance Compensation Certification Non-Compliance X - Other Matters Identified
#15..
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Employment After Retirement Review

Page 10 ends

Conclusion
Based on the information reviewed, OFAS identified instances of non-compliance with the GC sections 21220.5, 21221 subdivision (h), 21224, and 7522.56 and CCR sections 579.25 and 586.2. Areas of non-compliance included RA requirements not met, appointments not reported, incorrect reporting of and non-compliance with RA work hours and payrates, non-bona fide separation issues, and employers not obtaining written certification of RA unemployment insurance compensation.

The review was conducted in accordance with the International Standards for the Professional Practice of Internal Auditing. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions. Sample testing procedures provide reasonable, but not absolute, assurance that the employer complied with the specified provisions of the PERL, and the CalPERS contract subject to this review. The results outlined in this report are based on information made available or otherwise obtained at the time this report was prepared. This report does not constitute a final determination with regard to the results noted within the report. The appropriate CalPERS divisions will notify the employers of the final determinations and provide appeal rights, if applicable, at that time.

Respectfully submitted,
Original signed by Beliz Chappuie

BELIZ CHAPPUIE, CPA, MBA, CISA
Division Chief, Office of Audit Services
Staff: Cindie Lor, Assistant Division Chief
Michael Obad, Senior Program Auditor
Jennifer Luu Java, Staff Management Auditor
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Employment After Retirement Review

Page 11 ends

Appendix A – Employer Final Reports
#15..
- 610 -

BOLINAS FIRE PROTECTION DISTRICT
Employment After Retirement Page A-1
Objective and Scope
CalPERS ID Job Number Contract Date
7937611265 2P23-001 October 14, 2002
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

An RA is a retired person who works as an at-will employee of a CalPERS employer with certain employment restrictions and without reinstatement from retirement or loss or interruption of benefits. For public agency employers, RA appointments are typically either “extra help” appointments during an emergency to prevent stoppage of public business or because the retired person has specialized skills needed in performing work of limited duration, or “vacant position” appointments that are interim appointments to a vacant position during recruitment for a permanent appointment and deemed by the employer’s governing body to require specialized skills or during an emergency to prevent stoppage of public business. These types of RA appointments are governed by GC sections 21220.5, 21221, 21224, and 7522.56, which provide the following employment after retirement conditions and requirements:

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

BOLINAS FIRE PROTECTION DISTRICT
Employment After Retirement Page A-2
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

OFAS’ review included procedures to determine whether the employer properly employed retirees and reported RA appointments, work hours, and payroll information to CalPERS in accordance with employment after retirement requirements. The review was limited to the examination of a sample of RA records for the period of January 1, 2020, through December 31, 2023. Unless otherwise specified, OFAS did not review employer compliance with the Public Employees’ Retirement Law (PERL) with regard to any areas outside of the scope described herein, including, but not limited to, independent contractors and third-party employees, contribution amounts and rates, disability and industrial disability retirement, unemployment insurance benefits, retirement benefit calculations, and other requirements not specified in the scope.

Results in Brief
No. Area Observations
1 Additional
Compensation or
Benefits
The Employer provided additional compensation and benefits to one sampled RA. Specifically, the Employer compensated the RA for shift differential pay, such as overnight standby pay, night driver stipend, and night duty officer stipend, in the total amount of $947.28 during pay period ended December 24, 2023. In addition, shift differential pay was identified in the RA’s hourly payrate during all pay periods in fiscal year 2022-23. As a result, the Employer's employment of the RA was not compliant with employment after retirement restrictions.

GC sections 21221 and 21224 state a retired person shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate of pay. The Employer was not aware RAs cannot be paid special compensation in addition to their regular hourly rate of pay. #15..
- 612 -

BOLINAS FIRE PROTECTION DISTRICT
Employment After Retirement Page A-3
No. Area Observations
2 Work Hours
Exceeded 960
and Not
Reported
The Employer employed an RA whose total work hours exceeded 960 in a fiscal year and were not accurately reported. The Employer reported a total of 832.50 work hours during the fiscal year 2022-23. However, the Employer did not accurately report all hours worked for the fiscal year 2022-23, and Employer records indicated the RA worked a total of 1,070.50 hours during the reported period, which included shift differential-related hours, as noted in Observation 1. Furthermore, the Employer did not report the RA position to CalPERS as an RA position performing services in support of an emergency under the Governor’s Executive Order to allow the suspension of the 960-hour limitation. As a result, the Employer's employment of the RA was not compliant with
employment after retirement restrictions.

GC sections 21221, 21224, and 7522.56 state that an RA shall not work more than 960 hours each fiscal year for all employers.

GC section 21220 states that if an employer fails to enroll or report the payrate and number of hours worked of a retiree employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the employer may be assessed a fee per retired member per month until the information is reported. The Employer believed they complied with reporting requirements by reporting only regular hours worked.
3 RA Appointment
Type Not
Supported
The Employer could not demonstrate the RA appointment was an extra help type for one sampled RA. Specifically, the Employer hired the RA as an Assistant Chief, effective April 22, 2019, and considered the RA’s work as extra help. However, the Employer did not provide sufficient documentation to demonstrate the RA’s work was consistent with extra help purposes. According to the Employer, the RA previously worked as a volunteer Assistant Chief and was hired as Assistant Chief when the previous Assistant Chief was promoted to Fire Chief. The RA’s duties were consistent with Assistant Chief duties, which included tasks specializing in representing the District, coordinating District training, recruiting for the Disaster Council, and coordinating the District Wildland Fire Protection and Inspection program. The Employer’s employment agreements with the RA noted employment periods for
March 25, 2019 to December 31, 2019 and July 24, 2020 to July 2021. However, the RA is currently actively employed as the Assistant Chief. As a result, the Employer could not support the RA’s appointment type was compliant with employment after retirement requirements.
#15..
- 613 -

BOLINAS FIRE PROTECTION DISTRICT
Employment After Retirement Page A-4
No. Area Observations
GC sections 21224 and 7522.56 state a retired person may serve without reinstatement from retirement or loss or interruption of benefits upon appointment by the appointing power of an employer either during an emergency to prevent stoppage of public business or because the retired person has specialized skills needed in performing work of limited duration. GC section 21221, subdivision (h), states that a retired person may be employed upon interim appointment by an employer’s governing body during recruitment for a permanent appointment and deemed by the governing body to require specialized skills or during an emergency to prevent stoppage of public business; and a retired person shall only be appointed once to this vacant position. Additionally, Circular Letter 200-002-14 states RAs should neither be considered a permanent solution to business needs nor should RAs be allowed to work indefinitely; limited duration work does not mean an indefinite appointment to a permanent part-time position and an RA appointment should have a beginning date and an end date; and interim appointments are generally used for single or unique positions such managerial and executive positions, thus the employment terms must specify an end date. The Employer explained they did not have an adequate understanding of employment after retirement requirements.
4 Appointment
Start Date Not
Correctly
Reported
The Employer did not report the correct appointment start date for one sampled RA. Specifically, the Employer reported an
appointment start date of April 22, 2019 for the RA. However, Employer records indicated the appointment start date should have been reported as April 8, 2019, which was the RA’s first day worked. The Employer should ensure appointment start dates are accurately reported.

GC section 20221, subdivision (b) requires employers to provide additional information concerning any member that CalPERS may require in the administration of the California Public Employees’ Retirement System. The Guide requires employers to report information for each employee’s appointment, including the appointment date, and to validate that the information reported is accurate. The Employer explained the incorrect reporting was due to an oversight.

BOLINAS FIRE PROTECTION DISTRICT
Employment After Retirement Page A-5
Employer Account Management Division to resolve any working after retirement violations noted and identify all impacted retirees. Additionally, for all impacted retirees identified, the Employer should ensure all RA appointments, payrates, and work hours are reported accurately, and make adjustments as necessary to any impacted retiree accounts in accordance with GC section 20160.

GC: § 20120, § 20121, § 20122, § 20160, § 21202, § 21220, § 21220.5, § 21221, § 21224 and § 7522.56
CCR: § 579.25 and § 586.2
Other Matters
OFAS identified one other matter that was outside the scope of this review. This matter was discussed with the Employer. OFAS encourages the Employer to work with CalPERS to ensure compliance with the PERL.

No. Area Description
1 Duration of RA
Employment
The Employer hired one RA whose length of employment
indicated that they may not have been performing work during an emergency to prevent stoppage of public business, of limited duration, or in connection with an interim appointment to a vacant position. The duration of the RA employment with the Employer was five years.

Conclusion
OFAS limited this review to the areas specified in the objective and scope section of this report. The review was conducted in accordance with the International Standards for the Professional Practice of Internal Auditing. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions. Sample testing procedures provide reasonable, but not absolute, assurance that the Employer complied with the specified provisions of the PERL, and the CalPERS contract subject to this review. The results outlined in this report are based on information made available or otherwise obtained at the time this report was prepared. This report does not constitute a final determination with regard to the results noted within the report. The appropriate CalPERS divisions will notify the Employer of the final determinations and provide appeal rights, if applicable, at that time. #15..
- 615 -

BOLINAS FIRE PROTECTION DISTRICT
Employment After Retirement Page A-6
Summarized Response
The Employer did not agree or disagree with the Observations 1, 2, 3 or 4. For Observation 1, the Employer indicated they were advised by a CalPERS representative that stipends would not violate the prohibition of additional compensation. For Observation 2, the Employer believed that only regular hours were reportable and subject to the annual limits for RAs. For Observation 3, the Employer explained that the RA had specialized skills needed to perform the work of a limited duration hire and they extended the duration of the work period due to the COVID-19 statewide emergency. The Employer acknowledged that limited duration work does not mean an indefinite appointment to a permanent part-time position and intends to come into compliance. For Observation 4, the Employer stated the observation is due to a clerical error.

OFAS reviewed the Employer’s explanation and concluded the Observations will remain in the report.
#15..
- 616 -

CHESTER PUBLIC UTILITY DISTRICT
Employment After Retirement Page A-7
Objective and Scope
CalPERS ID Job Number Contract Date
6929609618 2P23-002 January 1, 1991
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

An RA is a retired person who works as an at-will employee of a CalPERS employer with certain employment restrictions and without reinstatement from retirement or loss or interruption of benefits. For public agency employers, RA appointments are typically either "extra help" appointments during an emergency to prevent stoppage of public business or because the retired person has specialized skills needed in performing work of limited duration, or "vacant position" appointments that are interim appointments to a vacant position during recruitment for a permanent appointment and deemed by the employer's governing body to require specialized skills or during an emergency to prevent stoppage of public business. These types of RA appointments are governed by GC sections 21220.5, 21221, 21224, and 7522.56, which provide the following employment after retirement conditions and requirements:

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person shall not be eligible to be employed for a period of 180 days following the date of retirement unless they meet one of the following conditions:
o Employer certifies the nature of employment, and the RA appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the employer's governing body in a public meeting.
o 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.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

A retired person's compensation shall not be less than the minimum or exceed the maximum monthly base salary paid by the employer to other employees performing comparable duties as listed on a publicly available pay schedule divided by 173.333 to equal an hourly rate.
#15..
- 617 -

CHESTER PUBLIC UTILITY DISTRICT
Employment After Retirement Page A-8
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

OFAS' review included procedures to determine whether the employer properly employed retirees and reported RA appointments, work hours, and payroll information to CalPERS in accordance with employment after retirement requirements. The review was limited to the examination of a sample of RA records for the period of January 1, 2020, through December 31, 2023. Unless otherwise specified, OFAS did not review employer compliance with the Public Employees' Retirement Law (PERL) with regard to any areas outside of the scope described herein, including, but not limited to, independent contractors and third-party employees, contribution amounts and rates, disability and industrial disability retirement, unemployment insurance benefits, retirement benefit calculations, and other requirements not specified in the scope.

Results in Brief
No. Area Observations
1 RA Position Not
Supported
The Employer could not demonstrate the RA position was required for performing work during an emergency to prevent stoppage of public business or that skills were needed for a limited duration for three sampled RAs. For example, for one RA, the Employer employed the RA, effective May 21, 2018. However, Employer hiring and RA documents available did not identify the RA's position title. Additionally, the Employer could not provide documentation, such as hiring justification or other documentation, and to support and identify the work required of the RA and the emergency occurring at the time of hire, or the retiree's skills needed in performing work of limited duration. As a result, the Employer's employment of the RAs was not compliant with employment after retirement requirements.
#15..
- 618 -

CHESTER PUBLIC UTILITY DISTRICT
Employment After Retirement Page A-9
No. Area Observations
GC sections 21224 and 7522.56 state that a retiree may serve without reinstatement from retirement or loss or interruption of benefits upon appointment by an employer either during an emergency to prevent stoppage of public business or because the retiree has specialized skills needed in performing work of limited duration. The Employer could not locate supporting documentation related to the hiring needs of the RAs.
2 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance
compensation requirements for five sampled RAs. Specifically, the Employer did not obtain certification from the RAs that they did not receive unemployment benefits for prior RA employment during the 12-month period before their RA appointment with the Employer.

As a result, the Employer was not compliant with employment after retirement requirements.

For one RA, the Employer reported an hourly payrate of $25 in pay period ending September 24, 2022, for the RA
working as a Fire Chief RA. However, the Employer did not have a publicly available pay schedule identifying the
payrate for positions performing comparable duties to
support the payrate reported for the RA.

For one RA, the Employer reported an hourly payrate of $45 in pay period ending December 31, 2022. The Employer
could not identify the correct pay schedule for positions performing comparable duties because Employer records
inconsistently identified the RA's position as either a Per Diem Paramedic or an Emergency Medical Technician
(EMT) Paramedic. The pay schedule for all fire staff
positions, such as Firefighter/Engineer EMT up to the Fire #15..
- 619 -

CHESTER PUBLIC UTILITY DISTRICT
Employment After Retirement Page A-10
No. Area Observations
Captain/Paramedic, listed hourly pay ranges between
$15.94 to $27.62.

For one RA, the Employer reported an hourly payrate of $13 for pay periods ending July 18, 2021 and October 24, 2020, and $14 for pay periods ending March 13, 2021 and
March 27, 2021, for performing duties of an EMT. However, the EMT pay schedule identifies the hourly payrate range as $15.94 to $18.

Therefore, the Employer could not demonstrate the reported payrate for one RA did not exceed the maximum payrate for a comparable position, and the reported payrates for two RAs were less than the minimum payrate or exceeded the maximum payrate for positions performing comparable duties. As a result, the Employer could not demonstrate that the RAs' payrate was compliant with employment after retirement requirements.

For one RA, the Employer compensated the RA an
additional four percent of base pay for holding a D2 Water Certification in pay period ending June 3, 2023. Additionally, the Employer paid the RA an additional $4 hourly payrate while being on-call during pay periods ending July 2, 2022, August 13, 2022, and February 11, 2023.

For two RAs, the Employer paid shift differential pay in pay periods ending September 24, 2022 and August 1, 2020,
respectively.
#15..
- 620 -

CHESTER PUBLIC UTILITY DISTRICT
Employment After Retirement Page A-11
No. Area Observations
As a result, the Employer's employment of the RAs was not compliant with employment after retirement restrictions.

GC sections 21221 and 21224 state a retired person shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate of pay. The Employer does not consider the increased payrates as additional compensation or benefits as these are payrates that are equivalent to those performing comparable duties.
5 Ineligible Interim
Vacant
Appointment
The Employer employed an RA in an interim vacant position that was not appointed and approved by the Employer's governing body. Specifically, the Employer's General Manager hired and appointed the RA as Interim Fire Chief on March 26, 2022. The General Manager announced the new Interim Fire Chief to the governing body on March 29, 2022. However, the Employer's governing body did not appoint or approve the hiring of the Fire Chief. As a result, the Employer's RA appointment was not compliant with employment after retirement requirements.

GC section 21221 subdivision (h) states that a retired person may be employed upon interim appointment by an employer's governing body during recruitment for a permanent appointment and deemed by the governing body to require specialized skills or during an emergency to prevent stoppage of public business; and a retired person shall only be appointed once to this vacant position. The Employer was not aware that interim vacant RA positions must be appointed and approved by the governing body.
6 Actual Hours
Worked Not
Supported
The Employer could not support the reported hours worked for two sampled RAs. The following instances were noted:

For one RA, the Employer reported a total of 48 hours
worked in fiscal year 2022-23, for pay periods ending
December 17, 2022 and December 31, 2022. However,
Employer timesheet records did not indicate the RA worked in pay period ending December 31, 2022.

For one RA, the Employer reported a total of 441.5 hours worked in fiscal year 2022-23. Specifically, the Employer reported 65 and 304.5 hours worked in pay periods ending September 10, 2022 and September 24, 2022, respectively.

Employer payroll records indicated the RA was paid for
369.5 hours for the period September 8, 2022 through
September 23, 2022. However, the Employer could not
#15..
- 621 -

CHESTER PUBLIC UTILITY DISTRICT
Employment After Retirement Page A-12
No. Area Observations
provide timesheets to support the RA's actual hours worked for each respective pay period.

As a result, the Employer could not demonstrate that the RAs’ reported work hours were compliant with employment after retirement requirements.

Recommendation and Criteria
The Employer should ensure retirees are employed, enrolled, and reported in compliance with employment after retirement provisions in accordance with GC sections 21220.5, 21221, 21224, and 7522.56 and CCR sections 579.25 and 586.2. The Employer should work with CalPERS Employer Account Management Division to resolve any working after retirement violations noted and identify all impacted retirees. Additionally, for all impacted retirees identified, the Employer should ensure all RA appointments, payrates, and work hours are reported accurately, and make adjustments as necessary to any impacted retiree accounts in accordance with GC section 20160.

GC: § 20120, § 20121, § 20122, § 20160, § 21202, § 21220, § 21220.5, § 21221, § 21224 and § 7522.56
CCR: § 579.25 and § 586.2
Other Matters
OFAS identified two other matters that were outside the scope of this review. These matters were discussed with the Employer. OFAS encourages the Employer to work with CalPERS to ensure compliance with the PERL.

CHESTER PUBLIC UTILITY DISTRICT
Employment After Retirement Page A-13
No. Area Description
2 No Publicly
Available Pay
Schedule
The Employer did not have a publicly available pay schedule for one sample RA. The Employer hired the RA as a Fire Chief.

However, the Employer did not have a publicly available pay schedule that listed the payrate for the Fire Chief position.

Summarized Response
The Employer did not agree or disagree with the Observations noted in the report. For Observation 1, the Employer acknowledged they were unaware that they must demonstrate the specific need for the RA appointment, and they will ensure this requirement is met for future hires. For Observation 2, the Employer acknowledged they were unaware of the requirements regarding obtaining written certification, and they will ensure this requirement is met for future hires. For Observation 3, the Employer acknowledged the payrates reported were not identified on a publicly available pay schedule. For Observation 4, the Employer did not consider the compensation to be additional compensation or benefits. For Observation 5, the Employer acknowledged they were unaware that the governing body must appoint and approve an interim vacant RA position and will ensure this requirement is met for future interim vacant appointments. For Observation 6, the Employer did not provide a response for one RA, stating that the work hours were reported as earned. The Employer provided additional documentation for consideration. OFAS reviewed the Employer’s explanation and additional documentation provided and concluded the Observations will remain in the report. #15..
- 623 -

CITY OF BERKELEY
Employment After Retirement Page A-14
Objective and Scope
CalPERS ID Job Number Contract Date
4652939061 2P23-003 March 1, 1942
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

CITY OF BERKELEY
Employment After Retirement Page A-15
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

23. However, Employer records indicated the RA worked a total of 809 hours. As a result, the Employer was not compliant with employment after retirement requirements.

CITY OF BERKELEY
Employment After Retirement Page A-16
No. Area Observations
2 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance
compensation requirements for five sampled RAs. Specifically, the Employer did not obtain certification from the RA’s that they did not receive unemployment benefits for prior RA employment during the 12-month period before their RA appointment with the Employer.

As a result, the Employer was not compliant with employment after retirement requirements.

GC section 7522.56, subdivision (e), states that a retiree shall certify in writing to the employer upon accepting an offer of employment that the retiree had not received unemployment benefit insurance for prior RA employment during the 12-month period prior to an appointment. The Employer was not aware of the requirement to verify unemployment benefits for RA appointments. 3 Payrate NonCompliance The Employer reported a payrate that was not consistent with a payrate for a position performing comparable duties for one sampled RA. The Employer reported an hourly payrate of $100.44 in pay period ending December 23, 2023, for the RA working as an Assistant Fire Chief. However, the Employer’s salary schedule, effective for fiscal year 2022-23, listed the Assistant Fire Chief position with a maximum hourly payrate of $99.45. Therefore, the Employer reported an hourly payrate that exceeded the payrate for the position performing comparable duties. As a result, the Employer was not compliant with employment after retirement requirements.

GC sections 21221 and 21224 state compensation for an RA appointment shall not exceed the maximum monthly base salary paid to other employees performing comparable duties as listed on a publicly available pay schedule divided by 173.333 to equal an hourly rate. In addition, GC section 7522.56 states the rate of pay for RAs shall not be less than the minimum nor exceed the maximum paid by the employer to employees performing
comparable duties. The Employer stated the Assistant Fire Chief’s salary schedule did not reflect the corresponding payrate increases that had been approved for the RA positions.
4 RA Position Not
Supported
The Employer could not demonstrate the RA position was required for performing work during an emergency to prevent stoppage of public business, or skills needed of limited duration for five sampled RA positions. For example, the Employer employed one RA as an Assistant Fire Chief, effective March 23, 2020, and considered the RA’s work as extra help. However, the Employer did not provide documentation, such as hiring justification or other #15..
- 626 -

CITY OF BERKELEY
Employment After Retirement Page A-17
No. Area Observations
documentation, to support and identify the emergency occurring at the time of hire, or the retiree’s skills needed in performing work of limited duration. As a result, the Employer’s employment of the RAs was not compliant with employment after retirement
requirements.

GC sections 21224 and 7522.56 state that a retiree may serve without reinstatement from retirement or loss or interruption of benefits upon appointment by the appointing power of an employer either during an emergency to prevent stoppage of public business or because the retired person has specialized skills needed in performing work of limited duration. The Employer was not aware of employment after retirement requirements for hiring RAs for extra help or interim vacant positions.
5 Appointment Not
Reported
The Employer did not report an appointment for one sampled RA.

Specifically, when the retiree retired from their concurrent employment with another CalPERS employer, the Employer did not enroll the retiree as RA or report the retiree’s hours worked and associated payrates. The Employer hired employee on
June 13, 2018, as a part-time Recreation Leader, an excluded position, and therefore, did not enrolled the employee as a CalPERS member. While employed with the Employer, the
employee had active membership with another CalPERS employer and subsequently retired from their employment with the other CalPERS employer on September 1, 2018, and became a retiree.

The Employer did not enroll the retiree as an RA and report their hours worked and associated payrates. Employer records
indicated the retiree worked 2.25 hours in the sampled pay period ending March 30, 2024.

CITY OF BERKELEY
Employment After Retirement Page A-18
Employer Account Management Division to resolve any working after retirement violations noted and identify all impacted retirees. Additionally, for all impacted retirees identified, the Employer should ensure all RA appointments, payrates, and work hours are reported accurately, and make adjustments as necessary to any impacted retiree accounts in accordance with GC section 20160.

GC: § 20120, § 20121, § 20122, § 20160, § 21202, § 21220, § 21220.5, § 21221, § 21224 and § 7522.56
CCR: § 579.25 and § 586.2
Other Matters
OFAS identified three other matters that were outside the scope of this review. These matters were discussed with the Employer. OFAS encourages the Employer to work with CalPERS to ensure compliance with the PERL.

No. Area Description
1 Duration of RA
Employment
The Employer hired four RAs whose length of employment
indicated that they may not have been performing work during an emergency to prevent stoppage of public business, or of limited duration, or in connection with an interim appointment to a vacant position. The duration of the RA employment with the Employer ranged from 11 to 15 years.
2 Incorrect
Appointment Start
Dates
The Employer reported an incorrect appointment start date for two RAs. Specifically, the RAs were hired as Reserve Police Officers on June 7, 2009 and January 23, 2011, respectively.

However, the Employer reported the two RAs’ appointment start dates as July 1, 2011. According to CalPERS Circular Letter 200-002-14, dated January 14, 2014, employers must enroll retirees in the myCalPERS system.
3 Pay Schedule
Non-Compliance
The Employer’s pay schedule was not in compliance with pay schedule requirements. The Employe’s salary schedule for nonbenefitted and benefitted employees for fiscal year 2022-23 did not identify an effective date for five sampled RAs.

CITY OF BERKELEY
Employment After Retirement Page A-19
report. The appropriate CalPERS divisions will notify the Employer of the final determinations and provide appeal rights, if applicable, at that time.

Summarized Response
The Employer disagreed with Observations 1, 2, 3, 4 and 5. The Employer explained they conducted an internal analysis and found that documentation of compliance with applicable CalPERS requirements has historically been handled primarily by each City department. This historical practice has resulted in different levels of record keeping about the terms of each RA’s hiring and their continued employment; however, the Employer determined that in operational terms, RAs were not working in excess of 960 hours in any fiscal year and that their return to the City was temporary in nature, with no guaranteed period of re-employment.

In addition, the Employer stated the Governor's Office issued a series of Executive Orders during the pandemic that relaxed various procedural and operational requirements under CalPERS and employment after retirement requirements. The Employer stated their intention to update their RA hiring and employment practices to be compliant with employment after retirement requirements. OFAS reviewed the Employer’s response and concluded the Observations will remain as stated.
#15..
- 629 -

CITY OF EL MONTE
Employment After Retirement Page A-20
Objective and Scope
CalPERS ID Job Number Contract Date
6241013965 2P23-004 July 1, 1946
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

CITY OF EL MONTE
Employment After Retirement Page A-21
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

However, the Employer did not provide documentation, such as hiring justification or other documentation to support and identify the emergency occurring at the time of hire, or the retiree’s skill needed in performing work of limited duration. As a result, the Employer’s employment of the RAs were not compliant with employment after retirement requirements.

GC sections 21224 and 7522.56 state a retired person may serve without reinstatement from retirement or loss or interruption of benefits upon appointment by an employer either during an #15..
- 631 -

CITY OF EL MONTE
Employment After Retirement Page A-22
No. Area Observations
emergency to prevent stoppage of public business or because the retired person has skills needed in performing work of limited duration. The Employer could not locate supporting documentation from the unit that initially hired the RA.
2 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance
compensation requirements for five sampled RAs. Specifically, the employer did not obtain written certification from the RAs that they did not receive unemployment benefits for prior RA employment during the 12-month period prior to their RA appointment with the Employer. As a result, the Employer was not compliant with employment after retirement requirements.

GC section 7522.56, subdivision (e), states that a retiree shall certify in writing to the employer upon accepting an offer of employment that the retiree had not received unemployment benefit insurance for prior RA employment during the 12-month period prior to an appointment. The Employer hired the RAs immediately after their retirement and was not aware that the written certification was required.
3 Work Hours and
Payrate Not
Reported
The Employer did not accurately report hours worked and associated payrates for four sampled RAs. Specifically, the Employer did not report all regular hours worked for four sampled RAs. For example, the Employer reported 376 hours worked for fiscal year 2022-23 for one RA. However, Employer records indicated the RA worked a total of 440.50 hours. The Employer did not accurately report the RA’s hours worked and associated payrates for the pay periods ending March 15, 2023,
March 31, 2023, April 15, 2023, and June 15, 2023. As a result, the Employer was not compliant with working after retirement requirements.

CITY OF EL MONTE
Employment After Retirement Page A-23
No. Area Observations
4 Ineligible Interim
Vacant
Appointment
The Employer employed an RA in an interim vacant position that did not meet all interim vacant requirements. Specifically, the Employer did not obtain their governing board’s approval of the interim vacant appointment and did not have active recruitment for the permanent position during the entire time the RA occupied the vacant position. The Employer hired the RA as a Water Systems Supervisor - RA, effective October 7, 2020. Employer records indicated the RA was hired to provide oversight of water systems operations until the recruitment of a permanent Water Systems Supervisor was completed to fill the vacant position. However, the Employer was unable to provide documentation to demonstrate the RA’s interim appointment was approved by their governing board.

Additionally, the Employer did not have continuous, active recruitment to fill the permanent position during the entire time the RA occupied the position. Employer records indicated recruitment for the Water Systems Supervisor position was open during August 31, 2020 and closed October 18, 2020. Recruitment for the permanent position was not opened for active recruitment again until December 20, 2021. As a result, the Employer's RA appointment was not compliant with employment after retirement requirements.

GC: § 20120, § 20121, § 20122, § 20160, § 21202, § 21220, § 21220.5, § 21221, § 21224 and § 7522.56
#15..
- 633 -

CITY OF EL MONTE
Employment After Retirement Page A-24
CCR: § 579.25 and § 586.2
Other Matters
OFAS identified three other matters that were outside the scope of this review. These matters were discussed with the Employer. OFAS encourages the Employer to work with CalPERS to ensure compliance with the PERL.

No. Area Description
1 Duration of RA
Employment
The Employer hired two RAs whose length of employment
indicated that they may not have been performing work during an emergency to prevent stoppage of public business, or limited duration, or in connection with an interim appointment to a vacant position. The duration of the RAs’ employment with the Employer was approximately 6 to 14 years.
2 Incorrect
Appointment Date
The Employer reported an incorrect appointment date for one sampled RA. The RA retired December 30, 2009 and the
Employer hired the retiree as a Police Investigator starting January 4, 2010. However, the Employer reported the RA’s appointment start date as May 16, 2018. According to CalPERS Circular Letter 200-002-14, dated January 14, 2014, employers must enroll retirees in the myCalPERS system.
3 Appointment Not
Reported
The Employer did not report an appointment to CalPERS for one sampled RA. The RA retired February 6, 2009 and Employer records indicated the retiree was hired in a part-time capacity as a Background Investigator, effective March 8, 2010. However, the Employer did report the appointment at the time of hire and did not enroll the retiree as an RA until May 16, 2018. Additionally, the Employer could not demonstrate if the retiree’s position, effective March 8, 2010, was an RA position.

CITY OF EL MONTE
Employment After Retirement Page A-25
Summarized Response
The Employer did not agree or disagree with the Observations 1, 2 and 4 and disagreed with Observation 3. For Observation 3, the Employer provided additional information and stated the data initially provided to support the RA’s hours worked was inaccurate. OFAS reviewed the additional information and concluded the Observations will remain as stated. #15..
- 635 -

CITY OF HAYWARD
Employment After Retirement Page A-26
Objective and Scope
CalPERS ID Job Number Contract Date
4829348799 2P23-005 October 1, 1950
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

CITY OF HAYWARD
Employment After Retirement Page A-27
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Bona Fide
Separation Not
Demonstrated
The Employer employed an RA that did not have a bona fide separation in service. The RA retired effective December 17, 2014, and was under the normal retirement age based on the retiree’s retirement benefit formula. The Employer employed the RA effective January 12, 2015, which was 25 days after their retirement date and did not adhere to the 60-day bona fide separation requirement. As a result, the Employer's employment of the RA was not compliant with employment after retirement restrictions.

CITY OF HAYWARD
Employment After Retirement Page A-28
No. Area Observations
member’s retirement and the first day of work for the employer as a retired person. The Employer stated their current Human Resources staff were unable to locate documentation support why the RA returned to work before the 60-day requirement.
2 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree complied with unemployment insurance compensation requirements for four sampled RAs. Specifically, the Employer did not obtain certification from the RAs that they did not receive unemployment benefits for prior RA employment during the 12- month period prior to their RA appointment with the Employer. As a result, the Employer was not compliant with employment after retirement requirements.

GC section 7522.56, subdivision (e), states that a retiree shall certify in writing to the employer upon accepting an offer of employment that the retiree had not received unemployment benefit insurance for prior RA employment during the 12-month period prior to an appointment. The Employer was unaware an RA must certify in writing that they did not receive any unemployment benefits in the last 12 months before employment.
3 Work Hours and
Payrate Not
Reported
The Employer did not accurately report hours worked and associated payrates for one sampled RA. Specifically, the Employer enrolled the RA effective October 19, 2021 and reported a total of 912 hours worked for fiscal year 2022-23. However, Employer records indicated the RA worked a total of 914 hours and adjustments to the RA’s hours worked throughout the fiscal year were not accurately reported. In addition, the Employer did not report hours worked for the pay period ending May 7, 2023, through the end of the fiscal year. As a result, the Employer was not compliant with the requirements for working after retirement.

CITY OF HAYWARD
Employment After Retirement Page A-29
No. Area Observations
RA or report the retiree’s hours worked and associated payrates during fiscal year 2020-21. As a result, the Employer’s employment of the RA was not compliant with employment after retirement requirements.

GC section 21220 states if an employer fails to enroll or report the payrate and number of hours worked of a retiree employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the employer may be assessed a fee per retired member per month until the information is reported. The Employer stated the retiree was hired during the emergency onset of COVID and it was an oversight that the retiree was not enrolled as an RA. 5 Predetermined
Agreement to
Return to Work
The Employer employed an RA that had a predetermined
agreement to return to work. Specifically, the RA retired with the Employer effective December 17, 2014, and was hired as an RA, effective January 12, 2015, to work as a Temporary Police Sergeant. Employer records indicated the RA had a predetermined agreement with the Employer to return to work after retirement, dated December 10, 2014. Therefore, in addition to the issue noted in Observation 1, the Employer’s hiring of the RA did not meet the bona fide separation requirements. As a result, the Employer's employment of the RA was not compliant with employment after retirement restrictions.

GC sections 21221 and 21224 state a retired person shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate of pay. The Employer explained that the cash in-lieu of medical benefit was incorrectly provided to the RA due to an administrative #15..
- 639 -

CITY OF HAYWARD
Employment After Retirement Page A-30
No. Area Observations
error. The compensation was corrected by deducting the amount from the RA’s final check during the course of the audit. 7 Payrate NonCompliance The Employer reported a payrate that was not consistent with a payrate for a position performing comparable duties for one sampled RA and could not demonstrate the reported payrate was comparable to a payrate for a position performing comparable duties for one sampled RA. Specifically, the following was noted:

For one RA, the Employer reported an hourly payrate of
$82.06 for pay period ended October 22, 2023, for the RA working as a Police Sergeant. However, the Employer
explained the RA’s duties was comparable to a Police
Programs Analyst position, which has an hourly payrate
range of $54.66 to $66.41. Therefore, the Employer paid the RA a payrate that exceeded the maximum payrate for a
position performing comparable duties.

For one RA, the Employer reported an hourly payrate of
$82.06 for pay period ended October 8, 2023, for the RA working as a Police Sergeant. However, the Employer
records identified the RA’s duties was comparable to a
District Attorney Liaison, a position not identified in the Employer’s Salary Plan, effective June 19, 2023, as a fulltime equivalent position with a pay range. Therefore, the Employer could not demonstrate the reported payrate for the RA was comparable to a payrate for a position
performing comparable duties.

As a result, the Employer was not compliant with employment after retirement requirements.

GC sections 21221 and 21224 state that RA compensation shall not exceed the maximum monthly base salary paid to other employees performing comparable duties as listed on a publicly available pay schedule. In addition, GC section 7522.56 states the rate of pay for RAs shall not be less than the minimum or maximum paid by the employer to employees performing comparable duties.

The Employer was not aware the RA’s payrate should be
comparable to a payrate for a position performing comparable work or duties.

#15..
- 640 -

CITY OF HAYWARD
Employment After Retirement Page A-31
Recommendation and Criteria
The Employer should ensure retirees are employed, enrolled, and reported in compliance with employment after retirement provisions in accordance with GC sections 21220.5, 21221, 21224, and 7522.56 and CCR sections 579.25 and 586.2. The Employer should work with CalPERS Employer Account Management Division to resolve any working after retirement violations noted and identify all impacted retirees. Additionally, for all impacted retirees identified, the Employer should ensure all RA appointments, payrates, and work hours are reported accurately, and make adjustments as necessary to any impacted retiree accounts in accordance with GC section 20160.

Summarized Response
The Employer agreed with the Observations noted in the report. #15..
- 641 -

CITY OF LIVERMORE
Employment After Retirement Page A-32
Objective and Scope
CalPERS ID Job Number Contract Date
1440106162 2P23-006 January 1, 1952
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

CITY OF LIVERMORE
Employment After Retirement Page A-33
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance
compensation requirements for six sampled RAs. Specifically, the Employer did not obtain certification from the RAs that they did not receive unemployment benefits for prior RA employment during the 12-month period prior to their RA appointment with the Employer. As a result, the Employer was not compliant with employment after retirement requirements.

CITY OF LIVERMORE
Employment After Retirement Page A-34
No. Area Observations
hiring and was not aware of the requirement to obtain written certification.
2 Payrate NonCompliance The Employer reported a payrate that was not compliant with payrate requirements for two sampled RAs and could not support the reported payrate for three sampled RAs. The following instances were noted:

For two RAs, the Employer reported payrates that were not compliant with payrate requirements. Specifically, the
reported payrate was not consistent with a payrate for a position performing comparable duties. For example, for one RA, the Employer reported an hourly payrate of $50 for pay period ending June 18, 2023 for the RA working as a
Special Projects Coordinator to perform Principal Planner work for the Community Development Department. The
Employer used the Special Projects Coordinator position as a temporary classification for RAs to perform project or program support functions requiring specialized knowledge, skills, or abilities. The Employer hired the RA effective January 23, 2017 and determined the RA’s pay based on
their assigned duties. However, the reported payrate was not consistent with the hourly payrate for the Principal Planner position, which ranged from $63.47 to $79.34.

For three RAs, the Employer could not support the reported payrate. Specifically, the reported payrates did not agree to the actual payrate paid to the RAs. For example, for one RA, the Employer reported an hourly payrate of $70 for pay period ended June 18, 2023; however, Employer records
indicated the RA was paid an hourly payrate of $88.

As a result, the Employer could not demonstrate the RAs’ payrates were in compliance with the employment after retirement requirements.

The Employer explained their practice was to use the Special Projects Coordinator position as a general classification to hire #15..
- 644 -

CITY OF LIVERMORE
Employment After Retirement Page A-35
No. Area Observations
RAs and determine the associated RA payrate based on the RA’s specific duties assigned.
3 Work Hours and
Payrate Not
Reported
The Employer did not accurately report hours worked and associated payrates for one sampled RA. The Employer reported a total of 488.50 hours worked in fiscal year 2022-23 for the RA.

However, Employer records indicated the RA worked a total of 488 hours. Specifically, the Employer reported 22 hours worked for the pay periods ended March 12, 2023, and April 9, 2023. However, Employer records indicated the RA worked 24 hours and 19.5 hours, respectively. As a result, the Employer was not compliant with working after retirement requirements.

GC section 21220 states if an employer fails to enroll or report the payrate and number of hours worked of a retiree employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the employer may be assessed a fee per retired member per month until the information is reported. The Employer could not locate original records and obtained revised timesheets from the RA during the course of the review.
4 RA Position Not
Supported
The Employer could not demonstrate the RA position was required for performing work during an emergency to prevent stoppage of public business, or skills needed of limited duration for four sampled RAs. The Employer employed the RAs as Special
Projects Coordinators. However, the Employer did not provide documentation, such as hiring justification or other documentation, to support and identify the emergency occurring, or the retirees’ skills needed in performing work of limited duration. As a result, the Employer could not demonstrate the RAs’ positions were compliant with employment after retirement requirements.

The Employer did not provide an explanation as to why the RA positions could not be supported.

CITY OF LIVERMORE
Employment After Retirement Page A-36
noted and identify all impacted retirees. Additionally, for all impacted retirees identified, the Employer should ensure all RA appointments, payrates, and work hours are reported accurately, and make adjustments as necessary to any impacted retiree accounts in accordance with GC section 20160.

Summarized Response
The Employer did not agree or disagree with Observations 1 and 3 and disagreed with Observations 2, 4 and 5. For Observations 1 and 3, the Employer explained they have taken actions to resolve the Observations. For Observation 2, the Employer explained the sampled RAs did not perform all duties of the comparable positions and their payrates reflected their reduced duties as RAs. For Observation 4, the Employer explained the hiring requisitions provided during the audit indicated the RAs work to be performed and the anticipated employment duration, and they were not aware of requirements specifying the maximum duration an RA can be employed. However, OFAS noted that the RAs’ employment continued #15..
- 646 -

CITY OF LIVERMORE
Employment After Retirement Page A-37
beyond the employment duration noted on the requisitions. For Observation 5, OFAS reviewed the information provided by the Employer and removed the Observation from the report.

Observations 1 through 4 will remain as stated.
#15..
- 647 -

CITY OF MODESTO
Employment After Retirement Page A-38
Objective and Scope
CalPERS ID Job Number Contract Date
3490544689 2P23-007 August 1, 1946
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

CITY OF MODESTO
Employment After Retirement Page A-39
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance
compensation requirements for two sampled RAs. Specifically, the Employer did not obtain written certification from the RAs, at the time of hire, that they did not receive unemployment benefits for prior RA employment during the 12-month period before their RA appointment with the Employer. As a result, the Employer was not compliant with employment after retirement requirements.

CITY OF MODESTO
Employment After Retirement Page A-40
No. Area Observations
appointment dates for the sampled RAs; however, the Employer has corrected the written certification practice to support current RA appointments.
2 RA Position Not
Supported
The Employer could not demonstrate that the RA position, at the time of hire, was required for performing work during an emergency to prevent stoppage of public business or skills needed for a limited duration for one sampled RA. Specifically, the Employer employed an RA as a Police Officer, effective August 4, 2020. Employer records were available to identify the skills needed for limited duration for the RA’s extra help position, effective July 1, 2023.

However, the Employer did not provide supporting documentation, such as hiring justification, special help agreement, or other documentation, to support and identify the emergency occurring at the time of hire, or the retiree’s skills needed in performing work of limited duration, to support the initial hiring of the RA, effective August 4, 2020. As a result, the Employer could not demonstrate the RA’s position at the time of hire was compliant with employment after retirement requirements.

The Employer’s previous process for hiring RAs did not include a request for hiring departments to justify their need for the RA position. However, the Employer stated they have since updated their hiring process to create RA contracts identifying the retiree’s skills needed for a limited duration beginning the calendar year 2021.
3 RA Appointment
Type Not
Supported
The Employer could not demonstrate the RA appointment was an extra help type for one sampled RA. Specifically, the Employer did not provide sufficient documentation to demonstrate the RA’s work was consistent with extra help purposes. The RA previously worked for the Employer as the Deputy Director of Cultural and Enterprise Services and retired on December 31, 2007.

Subsequently, the Employer hired the retiree as an RA into the same position, effective April 3, 2018. A review of Employer records indicated the RA was hired to manage golf courses and facilities, negotiate contracts, and develop operating budgets. The Employer stated the RA position was to assist the Director of Parks, Recreation, and Neighborhoods. However, the duties described were consistent with responsibilities for the permanent Deputy Director of Cultural and Enterprise Services position. In #15..
- 650 -

CITY OF MODESTO
Employment After Retirement Page A-41
No. Area Observations
addition, the Employer stated there is no intention of filling the Deputy Director of Cultural and Enterprise Services position with a regular, permanent employee. As a result, the Employer could not support the RA’s appointment type was compliant with employment after retirement requirements.

GC sections 21224 and 7522.56 state a retired person may serve without reinstatement from retirement or loss or interruption of benefits upon appointment by the appointing power of an employer either during an emergency to prevent stoppage of public business or because the retired person has specialized skills needed in performing work of limited duration. GC section 21221, subdivision (h), states that a retired person may be employed upon interim appointment by an employer’s governing body during recruitment for a permanent appointment and deemed by the governing body to require specialized skills or during an emergency to prevent stoppage of public business; and a retired person shall only be appointed once to this vacant position. Additionally, Circular Letter 200-002-14 states RAs should neither be considered a permanent solution to business needs nor should RAs be allowed to work indefinitely; limited duration work does not mean an indefinite appointment to a permanent part-time position and an RA appointment should have a beginning date and an end date; and interim appointments are generally used for single or unique positions such managerial and executive positions, thus the employment terms must specify an end date. The Employer believed the RA provided extra help services in the Cultural and Enterprise Services Division.
4 Work Hour NonCompliance The Employer did not accurately report hours worked for one sampled RA and employed one RA whose total work hours
exceeded 960 in a fiscal year. The following instances were noted:

For one RA, the Employer reported a total of 531.50 hours worked for fiscal year 2022-23. However, Employer records indicated the RA worked 526.50 hours for the fiscal year.

Specifically, for the pay period ended February 27, 2023, the Employer reported 27 hours, Employer records indicated the RA worked 22 hours, and the RA was compensated for
27 hours due to incorrectly coding five hours as overtime.

For one RA, the Employer reported a total of 968.70 hours worked for the fiscal year 2022-23. Employer records
indicated the RA worked a total of 969 hours for the fiscal year. The RA’s hours worked exceeded the 960-hours
#15..
- 651 -

CITY OF MODESTO
Employment After Retirement Page A-42
No. Area Observations
limitation restriction. The Employer did not report the RA position to CalPERS as an RA position performing services in support of an emergency under the Governor’s Executive Order to allow the suspension of the 960-hour limitation.

As a result, the Employer’s employment of the RA was not compliant with employment after retirement requirements and restrictions.

CITY OF MODESTO
Employment After Retirement Page A-43
No. Area Description
position. The duration of the RA employment with the Employer was six years.

Summarized Response
The Employer agreed with Observations 1 and 4 and disagreed with Observation 2 and 3. For Observation 2, the Employer referenced CalPERS Publication 33, which allows them to hire RAs in extra help positions and utilizing their specialized skills. For Observation 3, the Employer also referenced CalPERS Publication 33 and explained the RA was qualified for an extra help position. OFAS reviewed the Employer's responses and concluded that the Observations will remain as stated.
#15..
- 653 -

CITY OF SACRAMENTO
Employment After Retirement Page A-44
Objective and Scope
CalPERS ID Job Number Contract Date
7903930500 2P23-008 January 29, 1977
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

CITY OF SACRAMENTO
Employment After Retirement Page A-45
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Bona Fide
Separation Not
Demonstrated
The Employer employed an RA that did not have a bona fide separation in service. The RA retired effective September 5, 2015, and was under the normal retirement age based on the retiree’s retirement benefit formula. The Employer employed the RA effective October 5, 2015, which was 30 days after their retirement date, and did not adhere to the 60-day bona fide separation requirement. As a result, the Employer's employment of the RA was not compliant with employment after retirement restrictions.

CITY OF SACRAMENTO
Employment After Retirement Page A-46
No. Area Observations
retired person. The Employer was unaware the RA’s highest normal retirement age was higher than what they believed it to be. 2 RA Position Not
Supported
The Employer could not demonstrate the RA position at the time of hire was required for performing work during an emergency to prevent stoppage of public business, or skills needed of a limited duration for two sampled RA positions. For example, the Employer employed an RA as Reserved Police Officer I, effective October 5, 2015. However, the Employer did not provide supporting
documentation, such as initial hiring justification or other documentation at the time the RA was hired, to support and identify the emergency occurring at the time of hire or the retiree’s skills needed in performing work of limited duration. As a result, the Employer could not demonstrate the RAs positions at the time of hire were compliant with employment after retirement
requirements.

The Employer stated they previously did not have RA hiring justification documentation; however, beginning 2020, a process was implemented to document hiring justification for RA positions. 3 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support six sampled retirees complied with unemployment insurance
compensation requirements. Specifically, the Employer did not obtain certification from the RAs that they did not receive unemployment benefits for prior RA employment during the 12- month period prior to their RA appointment with the Employer. As a result, the Employer was not compliant with employment after retirement requirements.

CITY OF SACRAMENTO
Employment After Retirement Page A-47
No. Area Observations
demonstrate the payrate was consistent with a payrate for a position performing comparable duties. Prior to retirement, the RA was employed as an Assistant City Manager for the Employer and was hired soon after retirement as an RA, effective
December 18, 2018. According to the Employer, the Temporary Staff Aide position was a general position title used and the comparable position and payrate was the Assistant City Manager.

The Employer provided a letter to CalPERS dated May 17, 2019 that described the RA’s duties were to assist in higher-level projects, like providing oversight of the C3 City project. However, the duties of a permanent Assistant City Manager position included other executive level duties outside of providing oversight of higher-level projects. The Employer was unable to provide a duty statement for the RA to demonstrate the RA’s duties were comparable to Assistant City Manager duties to support the payrate reported for the RA. As a result, the Employer could not demonstrate compliance with the employment after retirement requirements.

The Employer believed the letter to CalPERS stating the RA's duties was sufficient to support duties were comparable to the Assistant City Manager position. In addition, the Employer believed the use of the Temporary Staff Aide as a "holding position" until a permanent classification was established was allowable but have since removed the Temporary Staff Aide position from their salary schedule.

CITY OF SACRAMENTO
Employment After Retirement Page A-48
GC: § 20120, § 20121, § 20122, § 20160, § 21202, § 21220, § 21220.5, § 21221, § 21224 and § 7522.56
CCR: § 579.25 and § 586.2
Other Matters
OFAS identified two other matters that were outside the scope of this review. These matters were discussed with the Employer. OFAS encourages the Employer to work with CalPERS to ensure compliance with the PERL.

No. Area Description
1 Duration of RA
Employment
The Employer hired three RAs whose length of employment indicated that they may not have been performing work during an emergency to prevent stoppage of public business, of limited duration, or in connection with an interim appointment to a vacant position. The RAs’ employment with the Employer ranged from 9 to 12 years.
2 Incorrect
Appointment Start
Date
The Employer reported an incorrect appointment date for one sampled RA. The Employer hired the RA as a Reserved Police Sergeant on May 1, 2013. However, the Employer reported the RA’s appointment start date as May 12, 2013.

Summarized Response
The Employer agreed with Observations 1 and 3 and disagreed with Observations 2 and 4. For Observation 2, the Employer explained that their process to document RA position need and eligibility began in 2020 and provided additional documentation for one RA indicating the RA was assigned to work with the Employer’s Department of Utilities in 2017. However, based on our review, the documentation was not sufficient to support the RA position during the initial hire in 2013. For Observation 4, the Employer indicated they were advised by a CalPERS representative that the RA’s appointment met employment after retirement requirements. The Employer explained the RA’s Temporary Staff Aide position duties as a project executive over various executive projects were the same duties performed prior to retirement. Additionally, the #15..
- 658 -

CITY OF SACRAMENTO
Employment After Retirement Page A-49
Employer explained the project executive role historically is not filled by someone below the Assistant City Manager classification and that the RA would not have been able to complete all duties of the Assistant City Manager position due to being limited to 960 hours per fiscal year.

However, based on our review, the Employer’s hiring documents did not identify the RA’s duties as a Temporary Staff Aid, such as a duty statement for the RA, to demonstrate the RA’s Temporary Staff Aid duties were comparable to the Assistant City Manager duties to support the RA’s reported payrate. OFAS concluded Observations 2 and 4 will remain as stated in the report.
#15..
- 659 -

CITY OF SAN MATEO
Employment After Retirement Page A-50
Objective and Scope
CalPERS ID Job Number Contract Date
3416548531 2P23-009 January 1, 1942
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

CITY OF SAN MATEO
Employment After Retirement Page A-51
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 RA Appointment
Type Not
Supported
The Employer could not demonstrate the RA appointment was an extra help type for one sampled RA. Specifically, the Employer hired the RA as a Per Diem Code Enforcement Manager, effective November 14, 2022, and considered the RA’s work as extra help.

However, the Employer could not provide sufficient documentation to demonstrate the RA’s work was consistent with extra help purposes. Employer records indicated the RA was hired into an interim vacant position to perform day-to-day functions of the Code Enforcement Division that were consistent with the duties of a Code Enforcement Manager. In addition, the RA’s appointment for the interim vacant position term end date of April 17, 2023 was extended two times due to unsuccessful recruitment attempts, in which the current employment term does not have a specified end date. As a result, the Employer could not support the RA’s #15..
- 661 -

CITY OF SAN MATEO
Employment After Retirement Page A-52
No. Area Observations
appointment type was compliant with employment after retirement requirements.

GC sections 21224 and 7522.56 state a retired person may serve without reinstatement from retirement or loss or interruption of benefits upon appointment by the appointing power of an employer either during an emergency to prevent stoppage of public business or because the retired person has specialized skills needed in performing work of limited duration. GC section 21221, subdivision (h), states that a retired person may be employed upon interim appointment by an employer’s governing body during recruitment for a permanent appointment and deemed by the governing body to require specialized skills or during an emergency to prevent stoppage of public business; and a retired person shall only be appointed once to this vacant position. Additionally, Circular Letter 200-002-14 states RAs should neither be considered a permanent solution to business needs nor should RAs be allowed to work indefinitely; limited duration work does not mean an indefinite appointment to a permanent part-time position and an RA appointment should have a beginning date and an end date; and interim appointments are generally used for single or unique positions such managerial and executive positions and the employment terms must specify an end date. The Employer explained that the Code Enforcement Manager position is critically needed, and due to unsuccessful recruitment attempts, the Employer needed to extend the RA’s appointment until a
permanent replacement was hired. Additionally, the Employer stated the RA’s appointment was incorrectly identified as extra help instead of interim vacant.

GC: § 20120, § 20121, § 20122, § 20160, § 21202, § 21220, § 21220.5, § 21221, § 21224 and § 7522.56
CCR: § 579.25 and § 586.2
#15..
- 662 -

CITY OF SAN MATEO
Employment After Retirement Page A-53
Other Matters
OFAS identified one other matter that was outside the scope of this review. This matter was discussed with the Employer. OFAS encourages the Employer to work with CalPERS to ensure compliance with the PERL.

Summarized Response
The Employer agreed with the Observation noted in the report. #15..
- 663 -

CITY OF SIGNAL HILL
Employment After Retirement Page A-54
Objective and Scope
CalPERS ID Job Number Contract Date
3841226254 2P23-010 May 1, 1948
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

CITY OF SIGNAL HILL
Employment After Retirement Page A-55
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Work Hours and
Payrate Not
Reported
The Employer did not accurately report the hours worked and associated payrates for three sampled RAs. Specifically, the Employer did not report all regular hours worked for three sampled RAs. For example, for one RA, the Employer reported a total of 892 hours for fiscal year 2022-23. Employer records indicated the RA worked a total of 932 hours. The Employer reported 20 hours worked for pay period ending December 16, 2022; however, the Employer’s payroll records indicated the RA worked and was paid for 60 hours. As a result, the Employer was not compliant with working after retirement requirements.

CITY OF SIGNAL HILL
Employment After Retirement Page A-56
No. Area Observations
per month until the information is reported. The Employer explained the error was due to limited staffing during the holidays. 2 Ineligible Interim
Vacant
Appointment
The Employer employed an RA in an interim vacant position which was not approved by their governing board. The Employer hired the RA to work as an interim Human Resources Manager until the permanent position could be filled. The RA worked for the Employer from December 12, 2022 through May 9, 2023.

However, the Employer was unable to provide documentation to demonstrate the RA’s interim appointment was approved by their governing board. As a result, the Employer's RA appointment was not compliant with employment after retirement requirements.

GC section 21221 subdivision (h) states that a retired person may be employed upon interim appointment by an employer’s
governing body during recruitment for a permanent appointment and deemed by the governing body to require specialized skills or during an emergency to prevent stoppage of public business; and a retired person shall only be appointed once to this vacant position. The Employer explained the administrative positions responsible for obtaining approval from the Board were all vacant at the time the RA was hired.
3 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance
compensation requirements for one sampled RA. Specifically, the Employer did not obtain certification from the RA that they did not receive unemployment benefits for prior RA employment during the 12-month period before their RA appointment with the Employer. As a result, the Employer was not compliant with employment after retirement requirements.

CITY OF SIGNAL HILL
Employment After Retirement Page A-57
noted and identify all impacted retirees. Additionally, for all impacted retirees identified, the Employer should ensure all RA appointments, payrates, and work hours are reported accurately, and make adjustments as necessary to any impacted retiree accounts in accordance with GC section 20160.

GC: § 20120, § 20121, § 20122, § 20160, § 21202, § 21220, § 21220.5, § 21221, § 21224 and § 7522.56
CCR: § 579.25 and § 586.2
Conclusion
OFAS limited this review to the areas specified in the objective and scope section of this report. The review was conducted in accordance with the International Standards for the Professional Practice of Internal Auditing. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions. Sample testing procedures provide reasonable, but not absolute, assurance that the Employer complied with the specified provisions of the PERL, and the CalPERS contract subject to this review. The results outlined in this report are based on information made available or otherwise obtained at the time this report was prepared. This report does not constitute a final determination with regard to the results noted within the report. The appropriate CalPERS divisions will notify the Employer of the final determinations and provide appeal rights, if applicable, at that time.

Summarized Response
The Employer did not agree or disagree with the Observations. #15..
- 667 -

CITY OF TUSTIN
Employment After Retirement Page A-58
Objective and Scope
CalPERS ID Job Number Contract Date
5687245261 2P23-011 August 1, 1967
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

CITY OF TUSTIN
Employment After Retirement Page A-59
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Bona Fide
Separation Not
Demonstrated
The Employer employed two RAs that did not have a bona fide separation in service. For example, one sampled RA retired effective December 28, 2015, and was under the normal retirement age based on the retiree’s retirement benefit formula. The Employer employed the RA effective December 28, 2015, which was on the same day as their retirement date and did not adhere to the 60-day bona fide separation requirement. As a result, the Employer's employment of the RAs was not compliant with employment after retirement restrictions.

CITY OF TUSTIN
Employment After Retirement Page A-60
No. Area Observations
member’s retirement and the first day of work for the employer as a retired person. The Employer was not aware the employee had a local miscellaneous retirement formula, which had a higher normal retirement age.
2 Predetermined
Agreement to
Return to Work
The Employer employed two RAs that had a predetermined
agreement to return to work. For example, for one RA, the RA retired December 28, 2015 and Employer records included a signed agreement between the Employer and RA, dated
December 7, 2015, which noted the RA’s request to continue employment as an RA as a Master Reserve Officer, effective December 27, 2015. Therefore, the RA did not meet the bona fide separation requirement, as noted in Observation 1. As a result, the Employer's employment of the RA was not compliant with
employment after retirement restrictions.

GC section 21220.5 states that a retired person who has not attained the normal retirement age shall have a bona fide separation in service before working after retirement. CCR section 586.2 defines bona fide separation in service to include no predetermined agreement between the employer and the member prior to retirement to return to work for the employer after retirement. The Employer explained the predetermined agreement was submitted to ensure the department followed CCR guidelines, which mandate Peace Officers to work continuously or undergo another 6-month background investigation.
3 Payrate NonCompliance The Employer reported a payrate that was not consistent with a payrate for a position performing comparable duties for one sampled RA. The Employer reported an hourly payrate of $65 for pay period ended June 4, 2023 for the RA who was hired as a Temporary Employee in the Senior Public Works Inspector position. However, the Employer paid the RA the payrate for a Temporary Employee, which was higher than the maximum hourly payrate of $51.70 for a Senior Public Works Inspector. Therefore, the Employer paid the RA a payrate that exceeded the maximum payrate for a position performing comparable duties. As a result, the Employer was not compliant with employment after retirement requirements.

CITY OF TUSTIN
Employment After Retirement Page A-61
No. Area Observations
the employer to employees performing comparable duties. The Employer explained that the RA possessed a unique skill set that was not easily categorized within existing job classifications, and the RA was hired to perform duties that did not align with a specific classification listed on the Employer's salary schedule.

No. Area Description
1 Duration of RA
Employment
The Employer hired five RAs whose length of employment
indicated that they may not have been performing work during an emergency to prevent stoppage of public business, or of limited duration, or in connection with an interim appointment to a vacant position. The duration of the RA employment with the Employer ranged from four to eight years.

CITY OF TUSTIN
Employment After Retirement Page A-62
report does not constitute a final determination with regard to the results noted within the report. The appropriate CalPERS divisions will notify the Employer of the final determinations and provide appeal rights, if applicable, at that time.

Summarized Response
The Employer agreed with Observations 1 and 2 and disagreed with Observation 3. For Observation 3, the Employer explained the RA was hired into the Temporary Employee position and was assigned to perform new types of inspections that existing staff did not have expertise or experience in performing; and therefore, the RA’s work did not fully correspond with other classifications’ work and was not equivalent to the work performed by a Senior Public Works Inspector. OFAS reviewed the information and noted that the Employer’s hiring documents identified the RA’s position as a Senior Public Works Inspector; and therefore, Observation 3 will remain as stated.
#15..
- 672 -

COUNTY OF BUTTE
Employment After Retirement Page A-63
Objective and Scope
CalPERS ID Job Number Contract Date
7607918484 2P23-012 April 1, 1945
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

COUNTY OF BUTTE
Employment After Retirement Page A-64
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Work Hours and
Payrate Not
Reported
The Employer did not accurately report hours worked and associated payrates for five sampled RAs. Specifically, the Employer did not report all regular hours worked for five sampled RAs and overtime hours worked for three sampled RAs. For example, for one RA, the Employer reported a total of 1,050 work hours for fiscal year 2022-23. However, Employer records indicated the RA worked a total of 1,560 hours for fiscal year 2022-23. The Employer did not report hours worked and
associated payrates from the pay period ended July 22, 2022 to October 28, 2022, and pay periods ended March 3, 2023 and April 14, 2023. In addition, the Employer did not report the RA’s overtime hours worked and associated payrate for pay period ended July 8, 2022. As a result, the Employer was not compliant with working after retirement requirements. Three of the RA positions were reported by the Employer to CalPERS as RA #15..
- 674 -

COUNTY OF BUTTE
Employment After Retirement Page A-65
No. Area Observations
positions performing services in support of an emergency associated with a Governor Executive Order, allowing the suspension of the 960-hour limitation.

GC section 21220 states if an employer fails to enroll or report the payrate and number of hours worked of a retiree employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the employer may be assessed a fee per retired member per month until the information is reported. The Employer stated the misreporting of hours worked was due to a system error as a result of implementing a new payroll system.
2 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance
compensation requirements for two sampled RAs. Specifically, the employer did not obtain written certification from the RAs that they did not receive unemployment benefits for prior RA employment during the 12-month period before their RA appointment with the Employer. As a result, the Employer was not compliant with employment after retirement requirements.

GC section 7522.56, subdivision (e), states that a retiree shall certify in writing to the employer upon accepting an offer of employment that the retiree had not received unemployment benefit insurance for prior RA employment during the 12-month period prior to an appointment. The Employer was not aware of the certification requirement at the time they hired the RAs and have subsequently implemented use of CalPERS’ checklist for hiring RAs to obtain the certification.
3 Additional
Compensation or
Benefits
The Employer provided additional compensation and benefits to one sampled RA. Specifically, the Employer compensated the RA for sick leave in the amounts of $384.30, $384.30, and $153.72 during pay periods ended January 21, 2022, February 18, 2022, and March 18, 2022, respectively. As a result, the Employer's employment of the RA was not compliant with employment after retirement restrictions.

GC sections 21221 and 21224 state a retired person shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate of pay. The Employer explained that their new Enterprise Resource Planning System inadvertently set-up their Extra Help RAs with the wrong earnings code, causing the RA to be incorrectly eligible for sick leave.
#15..
- 675 -

COUNTY OF BUTTE
Employment After Retirement Page A-66
Recommendation and Criteria
The Employer should ensure retirees are employed, enrolled, and reported in compliance with employment after retirement provisions in accordance with GC sections 21220.5, 21221, 21224, and 7522.56 and CCR sections 579.25 and 586.2. The Employer should work with CalPERS Employer Account Management Division to resolve any working after retirement violations noted and identify all impacted retirees. Additionally, for all impacted retirees identified, the Employer should ensure all RA appointments, payrates, and work hours are reported accurately, and make adjustments as necessary to any impacted retiree accounts in accordance with GC section 20160.

COUNTY OF BUTTE
Employment After Retirement Page A-67
report. The appropriate CalPERS divisions will notify the Employer of the final determinations and provide appeal rights, if applicable, at that time.

Summarized Response
The Employer did not provide a response to the report.
#15..
- 677 -

COUNTY OF EL DORADO
Employment After Retirement Page A-68
Objective and Scope
CalPERS ID Job Number Contract Date
4797218318 2P23-013 January 1, 1965
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

COUNTY OF EL DORADO
Employment After Retirement Page A-69
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Bona Fide
Separation Not
Demonstrated
The Employer employed an RA that did not have a bona fide separation in service. The sampled RA retired effective February 3, 2019, and was under the normal retirement age based on the retiree’s retirement benefit formula. The Employer employed the RA effective March 11, 2019, which was 35 days following the day after their retirement date and did not adhere to the 60-day bona fide separation requirement. As a result, the Employer's employment of the RA was not compliant with employment after retirement restrictions.

COUNTY OF EL DORADO
Employment After Retirement Page A-70
No. Area Observations
first day of work for the employer as a retired person. The Employer was not aware of the RA’s highest normal retirement.
2 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance compensation requirements for five sampled RAs. Specifically, the Employer did not obtain certification from the RAs that they did not receive unemployment benefits for prior RA employment during the 12-month period prior to their RA appointment with the Employer. As a result, the Employer was not compliant with employment after retirement requirements.

GC section 7522.56, subdivision (e), states that a retiree shall certify in writing to the employer upon accepting an offer of employment that the retiree had not received unemployment benefit insurance for prior RA employment during the 12-month period prior to an appointment. The Employer was not aware of the requirement to obtain written certification of the RA not receiving unemployment insurance.
3 RA Position Not
Supported
The Employer could not demonstrate that the RA position was required for performing work during an emergency to prevent stoppage of public business, or that skills were needed for a limited duration for two sampled RAs. Specifically, the Employer employed the RAs as an Extra Help Deputy Probation Officer I (A), effective September 17, 2016, and as an Investigator (D.A.), effective January 3, 2012, respectively. However, the Employer did not provide documentation, such as hiring justification, duty statements, or other documentation, to support and identify the emergency occurring at the time of hire, or the retiree’s skills needed in performing work of limited duration. As a result, the Employer’s employment of the RAs was not compliant with employment after retirement requirements.

For one RA, the Employer enrolled the RA effective
April 2, 2016 and reported a total of 670.25 hours for fiscal #15..
- 680 -

COUNTY OF EL DORADO
Employment After Retirement Page A-71
No. Area Observations
year 2022-23. However, Employer records indicated the RA worked a total of 694.75 hours and the Employer did not report the RA’s overtime hours for six pay periods during the fiscal year. For example, the Employer did not report six overtime hours for the sampled pay period June 17, 2023 to June 30, 2023 and the RA’s actual earnings of $3,278.55 did not match the reported amount of $2,920.89.

For one RA, the Employer enrolled the RA effective
February 2, 2022, and reported a total of 808 hours for fiscal year 2022-23. However, Employer records indicated the RA worked a total of 883 hours. The Employer did not report the RA’s hours worked for two pay periods during fiscal year 2022-23.

As a result, the Employer was not compliant with working after retirement requirements.

GC: § 20120, § 20121, § 20122, § 20160, § 21202, § 21220, § 21220.5, § 21221, § 21224 and § 7522.56
CCR: § 579.25 and § 586.2
#15..
- 681 -

COUNTY OF EL DORADO
Employment After Retirement Page A-72
Other Matters
OFAS identified two other matters that were outside the scope of this review. These matters were discussed with the Employer. OFAS encourages the Employer to work with CalPERS to ensure compliance with the PERL.

No. Area Description
1 Duration of RA
Employment
The Employer hired four RAs whose length of employment
indicated that they may not have been performing work during an emergency to prevent stoppage of public business, or of limited duration, or in connection with an interim appointment to a vacant position. The duration of the RAs employment with the Employer ranged from 5 to 11 years.
2 Invalid
Appointment
The Employer reported an invalid appointment for one sampled RA. The Employer created an RA appointment in myCalPERS effective April 25, 2009 to April 26, 2009 for the RA who did not earn wages or provide services.

Summarized Response
The Employer agreed with the Observations noted in the report. #15..
- 682 -

COUNTY OF NAPA
Employment After Retirement Page A-73
Objective and Scope
CalPERS ID Job Number Contract Date
2830167653 2P23-014 July 1, 1949
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

COUNTY OF NAPA
Employment After Retirement Page A-74
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance
compensation requirements for one sampled RA. Specifically, the Employer did not obtain certification from the RA that they did not receive unemployment benefits for prior RA employment during the 12-month period before their RA appointment with the Employer.

As a result, the Employer was not compliant with employment after retirement requirements.

COUNTY OF NAPA
Employment After Retirement Page A-75
No. Area Observations
The Employer implemented the unemployment benefit
compensation certification after the Public Employees’ Pension Reform Act in 2013.

COUNTY OF NAPA
Employment After Retirement Page A-76
report. The appropriate CalPERS divisions will notify the Employer of the final determinations and provide appeal rights, if applicable, at that time.

Summarized Response
The Employer disagreed with the Observation and explained the RA was hired before the requirement to obtain written certification from the RA. OFAS reviewed the response and noted effective January 1, 2005, GC section 21224 was amended to preclude an RA from returning to employment if, during the 12-month period prior to the appointment, the RA received unemployment insurance based on employment as an RA. The Employer’s response acknowledged documentation was not available to demonstrate this requirement was met for the RA when hired in 2009. Therefore, the Observation will remain as stated. #15..
- 686 -

COUNTY OF PLACER
Employment After Retirement Page A-77
Objective and Scope
CalPERS ID Job Number Contract Date
7176552336 2P23-015 January 1, 1949
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

COUNTY OF PLACER
Employment After Retirement Page A-78
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retirees were in compliance with unemployment insurance compensation requirements for five sampled RAs. Specifically, the Employer did not obtain written certification from the RAs that they did not receive unemployment benefits for prior RA employment during the 12-month period prior to their RA appointment with the Employer. As a result, the Employer was not compliant with employment after retirement requirements.

GC section 7522.56 subdivision (e), states that a retiree shall certify in writing to the employer upon accepting an offer of employment that the retiree had not received unemployment benefit insurance for prior RA employment during the 12-month period prior to an appointment. The Employer was not aware of the #15..
- 688 -

COUNTY OF PLACER
Employment After Retirement Page A-79
No. Area Observations
requirement to obtain written certification of the RA not receiving unemployment insurance.

No. Area Description
1 Duration of RA
Employment
The Employer hired four RAs whose length of employment
indicated that they may not have been performing work during an emergency to prevent stoppage of public business, or of limited duration, or in connection with an interim appointment to a vacant position. The duration of the RA employments with the Employer ranged from 9 to 22 years.
2 Incorrect
Appointment Date
The Employer reported an incorrect appointment date for one sampled RA. The RA retired August 27, 2006 and the Employer hired the retiree as a RA Deputy Sheriff I, effective
October 2, 2006. However, the Employer reported the RA’s appointment start date as February 3, 2007. According to CalPERS Circular Letter 200-002-14, dated January 14, 2014, employers must enroll retirees in the myCalPERS system.

COUNTY OF PLACER
Employment After Retirement Page A-80
findings and conclusions. Sample testing procedures provide reasonable, but not absolute, assurance that the Employer complied with the specified provisions of the PERL, and the CalPERS contract subject to this review. The results outlined in this report are based on information made available or otherwise obtained at the time this report was prepared. This report does not constitute a final determination with regard to the results noted within the report. The appropriate CalPERS divisions will notify the Employer of the final determinations and provide appeal rights, if applicable, at that time.

Summarized Response
The Employer did not indicate agreement or disagreement with Observations 1 and 2. For Observation 1, the Employer explained they verbally ask RAs if any unemployment benefits were received and going forward, they will ensure RA certification is obtained. For Observation 2, OFAS reviewed additional documentation provided by the Employer and removed the Observation from the report. Observation 1 will remain as stated. #15..
- 690 -

COUNTY OF RIVERSIDE
Employment After Retirement Page A-81
Objective and Scope
CalPERS ID Job Number Contract Date
5982690295 2P23-016 April 1, 1945
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

COUNTY OF RIVERSIDE
Employment After Retirement Page A-82
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Appointments
Not Reported
The Employer did not report appointments for two sampled retirees. Specifically, when the retirees retired from their employment with another CalPERS employer, the Employer did not enroll the retirees as RAs or report the retirees’ hours worked and associated payrates. For example, the Employer hired the employee on May 8, 1988 as a Per Diem Psychiatrist II, an excluded position, and therefore, was not enrolled as a CalPERS member. While employed with the Employer, the employee had concurrent employment with another CalPERS employer and subsequently retired from their employment with the other CalPERS employer on July 30, 2010 and became a retiree. The Employer did not enroll the retiree as an RA and report their hours worked and associated payrates. Employer records indicated the retiree worked 480 hours in fiscal year 2022-23.
#15..
- 692 -

COUNTY OF RIVERSIDE
Employment After Retirement Page A-83
No. Area Observations
GC section 21220 states if an employer fails to enroll or report the payrate and number of hours worked of a retiree employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the employer may be assessed a fee per retired member per month until the information is reported. The Employer did not understand the process for reporting retirees working in excluded positions. In addition, the Employer explained that CalPERS had advised them in 2018 that retirees working in excluded positions were not subject to employment after retirement requirements and that CalPERS was reviewing the issue and the direction could change.
2 Work Hours and
Payrate Not
Reported
The Employer did not report hours worked for one sampled RA.

Specifically, the Employer paid the RA 56 and 7 hours of COVID Emergency Sick Leave in pay periods ending December 30, 2020 and January 13, 2021, respectively, and 7 hours of Supplemental Sick Leave in pay period ending April 21, 2021; however, the Employer did not report the hours paid in myCalPERS. As a result, the Employer was not compliant with working after retirement requirements.

For one RA, the Employer paid shift differential pay in addition to an hourly payrate during multiple pay periods from January 1, 2020 to February 22, 2023. For example, the RA was paid Staff Psychiatrist Emergency/Inpatient
Services pay and Emergency Treatment Services/Inpatient Treatment Facility Differential pay in the amounts of $2.40 and $42 per hour, respectively, in addition to an hourly payrate in pay period ending February 22, 2023.

For two RAs, the Employer paid COVID Retention Pay in
addition to an hourly payrate in pay period ending
May 3, 2023.
#15..
- 693 -

COUNTY OF RIVERSIDE
Employment After Retirement Page A-84
No. Area Observations
As a result, the Employer's employment of the RAs was not compliant with employment after retirement restrictions.

GC sections 21221 and 21224 state a retired person shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate of pay. The Employer explained they thought COVID Retention pay was allowed based on the circumstances at the time and the payment of shift differential pay was due to an oversight and inadequate training.

No. Area Description
1 Duration of RA
Employment
The Employer hired four RAs whose length of employment
indicated that they may not have been performing work during an emergency to prevent stoppage of public business, or of limited duration, or in connection with an interim appointment to a vacant position. The duration of the RA employments with the Employer ranged from four to six years.
2 Permanent
Separation Not
Reported
The Employer did not report a permanent separation date for one sample RA. The Employer reported the RA appointment as
Active; however, the RA separated from employment with the Employer effective October 5, 2023.
#15..
- 694 -

COUNTY OF RIVERSIDE
Employment After Retirement Page A-85
Conclusion
OFAS limited this review to the areas specified in the objective and scope section of this report. The review was conducted in accordance with the International Standards for the Professional Practice of Internal Auditing. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions. Sample testing procedures provide reasonable, but not absolute, assurance that the Employer complied with the specified provisions of the PERL, and the CalPERS contract subject to this review. The results outlined in this report are based on information made available or otherwise obtained at the time this report was prepared. This report does not constitute a final determination with regard to the results noted within the report. The appropriate CalPERS divisions will notify the Employer of the final determinations and provide appeal rights, if applicable, at that time.

Summarized Response
The Employer disagreed with Observation 1, agreed with Observation 2, and partially agreed with Observation 3. For Observation 1, the Employer explained they were following guidance provided by CalPERS. For Observation 3, the Employer disagreed with the Covid Retention Payments and explained they were following guidance provided by the Department of Healthcare Services. OFAS reviewed the information and determined Observations 1 and 3 will remain as stated.
#15..
- 695 -

COUNTY OF SANTA CLARA
Employment After Retirement Page A-86
Objective and Scope
CalPERS ID Job Number Contract Date
2402960317 2P23-017 July 1, 1945
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

COUNTY OF SANTA CLARA
Employment After Retirement Page A-87
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Any retiree employment found to be in violation of employment after retirement laws and regulations is considered unlawful employment. This may result in retiree reinstatement from retirement, reimbursement to CalPERS of retirement allowances received during the period of unlawful employment, payment of employer and member contributions with interest for the period of unlawful employment, and reimbursement of CalPERS administrative expenses incurred. In addition, employers may be assessed a fee of two hundred dollars ($200) per retired member per month if they do not report RA appointments, and their associated payrates and hours worked to CalPERS as required by GC section 21220. OFAS’ review included procedures to determine whether the employer properly employed retirees and reported RA appointments, work hours, and payroll information to CalPERS in accordance with employment after retirement requirements. The review was limited to the examination of a sample of RA records for the period of January 1, 2020, through December 31, 2023. Unless otherwise specified, OFAS did not review employer compliance with the Public Employees’ Retirement Law (PERL) with regard to any areas outside of the scope described herein, including, but not limited to, independent contractors and third-party employees, contribution amounts and rates, disability and industrial disability retirement, unemployment insurance benefits, retirement benefit calculations, and other requirements not specified in the scope. Results in Brief
No. Area Observations
1 Bona Fide
Separation Not
Demonstrated
The Employer employed an RA that did not have a bona fide separation in service. The sampled RA retired effective December 31, 2022, and was under the normal retirement age based on the retiree's retirement benefit formula. The Employer employed the RA effective January 9, 2023, which was 9 days following the day after their retirement date and did not adhere to the 60-day bona fide separation requirement. As a result, the Employer's employment of the RA was not compliant with
employment after retirement restrictions.

COUNTY OF SANTA CLARA
Employment After Retirement Page A-88
No. Area Observations
member’s retirement and the first day of work for the employer as a retired person. The Employer was unaware that the Bona Fide Separation requirement applied to the RA’s highest normal retirement age.
2 Predetermined
Agreement to
Return to Work
The Employer employed an RA that had a predetermined
agreement to return to work. The sampled RA retired effective December 31, 2022, and did not meet the bona fide separation requirement as noted in Observation 1. Employer records indicated the RA submitted an employment application on November 7, 2022 and the Employer approved the hiring of the RA for the Supervising Probation Officer – Extra Help position on December 20, 2022. As a result, the Employer's employment of the RA was not compliant with employment after retirement restrictions.

GC section 21220.5 states that a retired person who has not attained the normal retirement age shall have a bona fide separation in service before working after retirement. CCR section 586.2 defines bona fide separation in service to include no predetermined agreement between the employer and the member prior to retirement to return to work for the employer after retirement. The Employer stated they were not aware of the employee’s retirement prior to approving the application and did not agree the application was a predetermined agreement. 3 Appointments
Not Reported
The Employer did not report appointments for two sampled retirees. Specifically, the Employer did not enroll the retirees upon hire and did not report the retirees’ hours worked and associated payrates. For example, the Employer hired one retiree as an Intermittent Librarian II, effective November 7, 2001 to January 16, 2021, and did not enroll the RA. Employer records indicated the Employer paid the RA an hourly pay of $38.83 and earnings totaling $439.96 for the sampled pay period ending May 3, 2020.

COUNTY OF SANTA CLARA
Employment After Retirement Page A-89
No. Area Observations
Insurance
Compensation
Certification
Employer did not obtain certification from the RAs that they did not receive unemployment benefits for prior RA employment during the 12-month period before their RA appointment with the Employer.

As a result, the Employer was not compliant with employment after retirement requirements.

Review of Employer records indicated a justification for the RA’s retroactive pay increase effective January 1, 2014; however, the Employer could not provide sufficient documentation, such as duty statement specific to the RA’s position, or other hiring documentation, to support and identify the emergency occurring at the time of hire, or the retiree’s skills needed in performing work of limited duration. As a result, the Employer could not demonstrate the RAs positions were compliant with employment after retirement requirements.

The Employer stated historical documents could not be provided during the review to demonstrate compliance with employment after retirement requirements or restrictions.

COUNTY OF SANTA CLARA
Employment After Retirement Page A-90
Employer should ensure all RA appointments, payrates, and work hours are reported accurately, and make adjustments as necessary to any impacted retiree accounts in accordance with GC section 20160.

Summarized Response
The Employer disagreed with Observations 1 through 5. For Observation 1, the Employer explained they understood the RA’s normal retirement age to be applicable to their safety membership, in which the RA retired under, and should not be the age applicable to the RA’s miscellaneous membership. For Observation 2, the Employer explained the RA’s hiring was not finalized until after their retirement date and that they did not intentionally plan to have an agreement to hire the RA prior to retirement. For Observation 3, the Employer explained that when one RA was hired in 2001 there was no statutory requirement to report the RA and they were not informed when employees retired under another CalPERS employer. For Observation 4, the Employer clarified that they were aware of the unemployment benefits certification requirement. For Observation 5, the Employer stated that although historical #15..
- 700 -

COUNTY OF SANTA CLARA
Employment After Retirement Page A-91
documents could not be provided, the Employer demonstrated the RA possessed the needed skills for the position at the time of hire through interviews with department heads and managers involved. OFAS reviewed the information and updated the Employer’s explanation noted for Observations 1, 3, 4, and 5; however, the Observations will remain as stated in the report.
#15..
- 701 -

COUNTY OF SOLANO
Employment After Retirement Page A-92
Objective and Scope
CalPERS ID Job Number Contract Date
7688821115 2P23-018 July 1, 1945
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

COUNTY OF SOLANO
Employment After Retirement Page A-93
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 RA Appointment
Type Not
Supported
The Employer could not demonstrate the RA appointment was an extra help type for one sampled RA. Specifically, the Employer hired the RA as a Chief District Attorney Investigator, effective September 19, 2022, and considered the RA’s work as extra help.

However, the Employer could not provide sufficient documentation to demonstrate the RA’s work was consistent with extra help purposes. Review of Employer records indicated the RA was hired as Chief District Attorney Investigator due to a vacancy when the prior Chief District Attorney Investigator resigned, and the RA performed all the duties of the existing permanent Chief District Attorney Investigator position. The projected end date of the RA’s work was until the recruitment and hiring was completed for the permanent position. However, the RA remained in the position after the permanent position was filled. As a result, the Employer #15..
- 703 -

COUNTY OF SOLANO
Employment After Retirement Page A-94
No. Area Observations
could not support the RA’s appointment type was compliant with employment after retirement requirements.

GC sections 21224 and 7522.56 state a retired person may serve without reinstatement from retirement or loss or interruption of benefits upon appointment by the appointing power of an employer either during an emergency to prevent stoppage of public business or because the retired person has specialized skills needed in performing work of limited duration. GC section 21221, subdivision (h), states that a retired person may be employed upon interim appointment by an employer’s governing body during recruitment for a permanent appointment and deemed by the governing body to require specialized skills or during an emergency to prevent stoppage of public business; and a retired person shall only be appointed once to this vacant position. Additionally, Circular Letter 200-002-14 states RAs should neither be considered a permanent solution to business needs nor should RAs be allowed to work indefinitely; limited duration work does not mean an indefinite appointment to a permanent part-time position and an RA appointment should have a beginning date and an end date; and interim appointments are generally used for single or unique positions such managerial and executive positions, thus the employment terms must specify an end date. The Employer believed their documentation was sufficient to demonstrate the RA appointment was extra help.

COUNTY OF SOLANO
Employment After Retirement Page A-95
No. Area Description
1 Duration of RA
Employment
The Employer hired one RA whose length of employment
indicated that they may not have been performing work during an emergency to prevent stoppage of public business, or of limited duration, or in connection with an interim appointment to a vacant position. The duration of the RA employment with the Employer was six years.

Summarized Response
The Employer disagreed with the Observation and explained the RA did not assume full responsibilities of the vacant position because the RA worked part-time and continued to work in an extra help capacity after the full-time position was filled. OFAS reviewed the Employer’s explanation and concluded the Observation will remain as stated. #15..
- 705 -

COUNTY OF YOLO
Employment After Retirement Page A-96
Objective and Scope
CalPERS ID Job Number Contract Date
6380137448 2P23-019 January 1, 1960
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

COUNTY OF YOLO
Employment After Retirement Page A-97
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Additional
Compensation or
Benefits
The Employer provided additional compensation and benefits to one sampled RA. Specifically, the Employer compensated the RA for sick leave in the amounts of $420.10, $442.24, and $464.36 during pay periods ended September 10, 2022,
December 31, 2022, and February 25, 2023, respectively. As a result, the Employer's employment of the RA was not compliant with employment after retirement restrictions.

GC sections 21221 and 21224 state a retired person shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate of pay. The Employer explained that the position was processed as an extra help position and not as an RA position which caused the time keeping system to inadvertently allocate sick hours to the RA.

In addition, the RA was not aware sick leave pay is not allowed. #15..
- 707 -

COUNTY OF YOLO
Employment After Retirement Page A-98
No. Area Observations
2 RA Position Not
Supported
The Employer could not demonstrate the RA position was required for performing work during an emergency to prevent stoppage of public business, or skills needed of limited duration for six sampled RAs. For example, the Employer employed an RA as a Consultant Specialist, effective December 17, 2012. However, the Employer did not provide documentation, such as hiring justification, duty statements, or other documentation, to support and identify the emergency occurring at the time of hire, or the retiree’s skills needed in performing work of limited duration. As a result, the Employer’s employment of the RAs were not compliant with employment after retirement requirements.

The Employer’s hiring process did not include a request for hiring departments to justify their need for RA positions and the Employer was unaware of RA employment requirements.
3 Payrate Not
Supported
The Employer could not support the payrates reported for three sampled RAs. For example, for one RA, the Employer did not have documentation to support the RA’s work duties as a Consulting Specialist, such as a duty statement. Therefore, the Employer could not demonstrate the RA’s hourly payrate of $91.93 reported for pay period ended May 20, 2023, did not exceed the maximum payrate for a position performing comparable duties. As a result, the Employer could not demonstrate the RA’s payrate was compliant with employment after retirement requirements.

COUNTY OF YOLO
Employment After Retirement Page A-99
No. Area Observations
Compensation
Certification
12-month period prior to their RA appointment with the Employer.

As a result, the Employer was not compliant with employment after retirement requirements.

GC section 7522.56, subdivision (e), states that a retiree shall certify in writing to the employer upon accepting an offer of employment that the retiree had not received unemployment benefit insurance for prior RA employment during the 12-month period prior to an appointment. The Employer was not aware of the requirement to obtain written certification of the RA not receiving unemployment insurance.
5 Ineligible Interim
Vacant
Appointment
The Employer employed an RA in an interim vacant position which was not approved by their governing board. Specifically, the Employer appointed the RA into an Interim County Librarian position effective September 25, 2022. The RA’s personnel files and the Employer’s website indicated the RA was hired into an interim County Librarian position. Once recruitment was completed to fill the vacant position, the Employer moved the RA into an extra help position as a Consulting Specialist. However, the Employer was unable to provide supporting documentation to demonstrate the RA’s interim appointment was approved by their governing board. As a result, the Employer's RA appointment was not compliant with employment after retirement requirements.

GC section 21221, subdivision (h), states that a retiree may be employed upon interim appointment by an employer’s governing body to a vacant position during recruitment for a permanent appointment and deemed by the governing body to require specialized skills or during an emergency to prevent stoppage of public business; and shall only be appointed once to this vacant position. The Employer was not aware that the RA’s appointment required approval by their governing board. Recommendation and Criteria The Employer should ensure retirees are employed, enrolled, and reported in compliance with employment after retirement provisions in accordance with GC sections 21220.5, 21221, 21224, and 7522.56 and CCR sections 579.25 and 586.2. The Employer should work with CalPERS Employer Account Management Division to resolve any working after retirement violations noted and identify all impacted retirees. Additionally, for all impacted retirees identified, the Employer should ensure all RA appointments, payrates, and work hours are reported accurately, and make adjustments as necessary to any impacted retiree accounts in accordance with GC section 20160.
#15..
- 709 -

COUNTY OF YOLO
Employment After Retirement Page A-100
GC: § 20120, § 20121, § 20122, § 20160, § 21202, § 21220, § 21220.5, § 21221, § 21224 and § 7522.56
CCR: § 579.25 and § 586.2
Other Matters
OFAS identified two other matters that were outside the scope of this review. These matters were discussed with the Employer. OFAS encourages the Employer to work with CalPERS to ensure compliance with the PERL.

No. Area Description
1 Duration of RA
Employment
The Employer hired four RAs whose length of employment
indicated that they may not have been performing work during an emergency to prevent stoppage of public business, or of limited duration, or in connection with an interim appointment to a vacant position. The duration of the RA employments with the Employer ranged from 6 to 17 years. 2 Incorrect
Appointment Date
The Employer reported an incorrect appointment date for one sampled RA. The RA retired October 1, 2006 and the Employer hired the retiree as a District Attorney Investigator II on October 2, 2006. However, the Employer reported the RA’s appointment start date as July 3, 2011. According to CalPERS Circular Letter 200-002-14, dated January 14, 2014, employers must enroll retirees in the myCalPERS system.

Summarized Response
The Employer agreed with the Observations noted in the report. #15..
- 710 -

GARDEN VALLEY FIRE PROTECTION DISTRICT
Employment After Retirement Page A-101
Objective and Scope
CalPERS ID Job Number Contract Date
7037972648 2P23-020 December 21, 1996
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

GARDEN VALLEY FIRE PROTECTION DISTRICT
Employment After Retirement Page A-102
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

The Employer explained the RAs were hired as volunteers; however, the Employer did not have documentation to support the RAs were volunteers. Additionally, the Employer did not provide supporting documentation, such as hiring justification or other documentation to support and identify the emergency occurring at the time of hire, or the retiree’s skill needed in performing work of limited duration. As a result, the Employer could not demonstrate the RAs positions were compliant with employment after retirement requirements.
#15..
- 712 -

GARDEN VALLEY FIRE PROTECTION DISTRICT
Employment After Retirement Page A-103
No. Area Observations
GC sections 21224 and 7522.56 state that a retiree may serve without reinstatement from retirement or loss or interruption of benefits upon appointment by an employer either during an emergency to prevent stoppage of public business or because the retiree has the skills needed in performing work of limited duration.

The Employer explained that hiring documentation are not maintained for volunteers and they were directed by their county office to report the RA appointments for insurance purposes. 2 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance
compensation requirements for two sampled RAs. Specifically, the Employer did not obtain certification from the RAs that they did not receive unemployment benefits for prior RA employment during the 12-month period prior to their RA appointment with the Employer.

As a result, the Employer was not compliant with employment after retirement requirements.

GC section 7522.56, subdivision (e), states that a retiree shall certify in writing to the employer upon accepting an offer of employment that the retiree had not received unemployment benefit insurance for prior RA employment during the 12-month period prior to an appointment. The Employer stated they were unaware the written certification was a requirement for hiring RAs and their County Office directed them to report the RA
appointments.
3 Work Hours and
Payrate Not
Reported
The Employer did not accurately report hours worked and associated payrates for two sampled RAs. For example, for one RA, the Employer did not report hours worked. However, Employer records indicated the RA worked a total of 414 hours. The Employer did not report the RA’s hours worked and associated payrates for the pay periods ending August 14, 2020 and August 28, 2020. As a result, the Employer was not compliant with working after retirement requirements.

GC sections 21221, 21224, and 7522.56 state that an RA shall not work more than 960 hours each fiscal year for all employers.

GARDEN VALLEY FIRE PROTECTION DISTRICT
Employment After Retirement Page A-104
No. Area Observations
4 Appointments
Not Reported
The Employer did not report appointments for four sampled retirees. Specifically, the Employer could not provide
documentation to demonstrate the retirees should not be enrolled as RAs. The Employer explained the retirees were hired as volunteers; however, the Employer did not have documentation to support the RAs were volunteers. Review of Employer records noted the following:

For one retiree, the Employer hired the retiree on
May 8, 2010 as a Planning Specialist. Employer records
indicated the retiree was compensated for working 75 hours from October 26, 2019 to November 1, 2019.

For three retirees, the Employer’s records indicated the retirees were compensated for hours worked. Employer
payroll records for the period of January 24, 2020 to
April 9, 2024 identified the retirees worked and received compensation. The Employer was unable to provide
documentation to identify the associate hours worked for the compensation indicated on their payroll records for the RAs.

GC section 21220 states if an employer fails to enroll or report the payrate and number of hours worked of a retiree employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the employer may be assessed a fee per retired member per month until the information is reported. The Employer stated the one retiree was not employed with the Employer and was employed with another California agency and the other retirees were volunteers.
5 Appointment
Start Date Not
Correctly
Reported
The Employer did not report the correct appointment start date for one sampled RA. The Employer reported an appointment start date of October 1, 2014 for the RA. However, Employer records indicated the appointment start date should have been reported as August 3, 2014, which was the RA’s first day worked.

GC section 20221, subdivision (b) requires employers to provide additional information concerning any member that CalPERS may require in the administration of the California Public Employees’ Retirement System. The Public Agency and Schools Reference Guide requires employers to report information for each employee’s appointment, including the appointment date, and to validate that the information reported is accurate. The Employer stated the retiree was hired as a volunteer and was not aware the appointment start date was incorrectly reported.
#15..
- 714 -

GARDEN VALLEY FIRE PROTECTION DISTRICT
Employment After Retirement Page A-105
Recommendation and Criteria
The Employer should ensure retirees are employed, enrolled, and reported in compliance with employment after retirement provisions in accordance with GC sections 21220.5, 21221, 21224, and 7522.56 and CCR sections 579.25 and 586.2. The Employer should work with CalPERS Employer Account Management Division to resolve any working after retirement violations noted and identify all impacted retirees. Additionally, for all impacted retirees identified, the Employer should ensure all RA appointments, payrates, and work hours are reported accurately, and make adjustments as necessary to any impacted retiree accounts in accordance with GC section 20160.

No. Area Description
1 Duration of RA
Employment
The Employer hired five RAs whose length of employment
indicated that they may not have been performing work during an emergency to prevent stoppage of public business, or of limited duration, or in connection with an interim appointment to a vacant position. The RA’s employment with the Employer ranged from 6 to over 10 years.

Summarized Response
The Employer did not provide a response to the report.
#15..
- 715 -

KENSINGTON COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-106
Objective and Scope
CalPERS ID Job Number Contract Date
7381511111 2P23-022 January 1, 1971
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

KENSINGTON COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-107
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Work Hours and
Payrates NonCompliance
The Employer did not accurately report hours worked and associated payrates for three sampled RAs. Specifically, the Employer did not report all regular hours worked. For example, the Employer reported 922 hours worked for fiscal year 2022-23 for one RA. However, Employer records indicated the RA worked a total of 938.50 hours. The Employer did not accurately report the RA’s hours worked and associated payrates for the pay period ending January 15, 2023. As a result, the Employer was not compliant with working after retirement requirements.

KENSINGTON COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-108
No. Area Observations
per month until the information is reported. The Employer explained the incorrect reporting was due to an error.
2 Appointments
Not Reported
Correctly
The Employer did not correctly report the appointments for three sampled RAs. The following instances were noted:

For two RAs, the Employer did not report the correct
appointment start date. For example, for one RA, the
Employer reported an appointment start date effective
August 24, 2021. However, Employer records indicated the appointment start date should have been reported as
August 23, 2021, which was the RA’s first day worked.

For one RA, the Employer did not report the correct
appointment end date and did not report payroll. The
Employer hired the RA into the General Manager position and reported the RA’s appointment term as April 1, 2020 to December 31, 2020. However, Employer records indicated
the RA worked 15 hours for the pay period ending January 31, 2021. Additionally, the Employer did not report the RA's payrate and hours worked for all associated periods worked.

GC section 20221, subdivision (b) requires employers to provide additional information concerning any member that CalPERS may require in the administration of the California Public Employees’ Retirement System. The Public Agencies and Schools Reference Guide requires employers to report information for each employee’s appointment, including the appointment date, and to validate that the information reported is accurate. The Employer explained they misunderstood appointment reporting requirements.

Additionally, GC section 21220 states if an employer fails to enroll or report the payrate and number of hours worked of a retiree employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the employer may be assessed a fee per retired member per month until the information is reported. The Employer explained they misunderstood the employment after retirement requirements.
3 Ineligible Interim
Vacant
Appointment
The Employer employed an RA in an interim vacant position that did not meet all interim vacant requirements. The Employer appointed the RA as the Chief of Police, effective May 11, 2020; however, the Employer was unable to provide supporting
documentation to demonstrate the Employer was actively recruiting to fill the permanent position for the duration of the RA was in the position. As a result, the Employer's RA appointment was not compliant with employment after retirement requirements. #15..
- 718 -

KENSINGTON COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-109
No. Area Observations
GC section 21221 subdivision (h) states that a retired person may be employed upon interim appointment by an employer’s
governing body during recruitment for a permanent appointment and deemed by the governing body to require specialized skills or during an emergency to prevent stoppage of public business; and shall only be appointed once to this vacant position. The Employer stated they did not advertise recruitment for the position; however, they were actively recruiting a former police chief to fill the permanent position.
4 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance
compensation requirements for four sampled RAs. Specifically, the Employer did not obtain written certification from the RAs that they did not receive unemployment benefits for prior RA employment during the 12-month period before their RA appointment with the Employer. As a result, the Employer was not compliant with employment after retirement requirements.

GC section 7522.56, subdivision (e), states that a retiree shall certify in writing to the employer upon accepting an offer of employment that the retiree had not received unemployment benefit insurance for prior RA employment during the 12-month period prior to an appointment. The Employer explained it was an oversight they did not obtain written certification.
5 RA Position Not
Supported
The Employer could not demonstrate that the RA position was required for performing work during an emergency to prevent stoppage of public business, or skills needed for a limited duration for one sampled RA. The Employer employed the RA as an
Accountant, effective July 17, 2020. However, the Employer did not provide documentation such as hiring justification or other documentation to support and identify the emergency occurring at the time of hire, or the retiree’s skills needed in performing work of limited duration. As a result, the Employer’s employment of the RA was not compliant with employment after retirement requirements.

KENSINGTON COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-110
No. Area Observations
6 RA Positions
and Payrates
Not Supported
The Employer could not demonstrate the RA positions for three sampled RAs and associated payrates for two sampled RAs were compliant with employment after retirement requirements.

According to the Employer, the General Manager position is a permanent part-time position that is difficult to fill with a permanent employee. The following instances were noted for the Employer’s employment of the RAs in the General Manager position.

RA #1: The Employer could not demonstrate the
employment of the RA met all interim vacant requirements and reported a payrate that exceeded the maximum payrate for the comparable position. The Employer employed the RA in an interim vacant General Manager position and their governing body approved the RA’s employment agreement
on August 12, 2021 for the term of August 23, 2021 through February 25, 2022. Employer records indicated the RA was hired into the General Manager position due to the
departure of the prior General Manager. However, the
Employer did not provide documentation to support the RA had the skills required for the General Manager position.

Additionally, Employer records indicated the RA worked 29 hours for the pay period ending July 15, 2022, which was after the employment term end date. Additionally, the
Employer reported an hourly payrate of $105 for pay period ended July 15, 2022, which exceeded the maximum hourly
payrate of $86.21 for the General Manager position listed on the salary schedule, effective July 1, 2022.

RA #2: The Employer did not report an initial appointment for the RA, could not demonstrate the RA’s position for the subsequent appointment was an extra help type, and
reported a payrate that exceeded the maximum payrate for the comparable position. Employer records indicated the Employer previously hired the RA to work as the General Manager from June 12, 2017 to June 11, 2020; however,
the Employer did not report the RA’s appointment to
CalPERS. Additionally, the Employer rehired the RA as the General Manager, effective May 16, 2022, when the position became vacant, while the Employer recruited to fill the permanent position. The Employer considered the RA’s
work as extra help. However, the Employer did not provide sufficient documentation to demonstrate the RA’s work was consistent with extra help purposes. The RA’s duties were consistent with the permanent General Manager duties,
which included implementing policies at the direction of the #15..
- 720 -

KENSINGTON COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-111
No. Area Observations
Board, advising the Board on delivery of services and best practices to achieve an effective organization, and oversight of major projects. In addition, the Employer’s governing body approved the RA’s employment agreement on
May 12, 2022, for the term of May 16, 2022 through
October 31, 2022.The Employer subsequently extended the RA’s employment end date to January 31, 2023 and the RA separated from the position on February 16, 2023.

Furthermore, the Employer reported an hourly payrate of $105 for pay period ended February 15, 2023, which
exceeded the maximum hourly payrate of $86.21 for the
General Manager position listed on the salary schedule, effective July 1, 2022.

RA #3: The Employer could not demonstrate the RA
position was an extra help type. The Employer hired the RA into the Interim General Manager position, and their
governing body approved the RA’s employment agreement
on February 9, 2023, for the term of February 13, 2023
through December 31, 2023. Subsequently, the Employer
amended the employment agreement to change the RA’s
employment term end date to be until the permanent
General Manager position is filled. The Employer considered the RA’s work as extra help. However, the Employer
incorrectly reported the RA’s appointment type as Earnings Limit and the Employer did not provide sufficient
documentation to demonstrate that the RA’s work was
consistent with extra help purposes. Employer records
indicated the RA was hired into the vacant position to
perform duties comparable to the permanent General
Manager position, while the Employer recruited to fill the permanent position. Additionally, the Employer did not
provide documentation to support the RA had the skills
required for the General Manager position.

As a result, the Employer’s employment of the RAs and reported payrates were not compliant with employment after retirement requirements.

KENSINGTON COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-112
No. Area Observations
employer to employees performing comparable duties.

Furthermore, Circular Letter 200-002-14 states RAs should neither be considered a permanent solution to business needs nor should RAs be allowed to work indefinitely; limited duration work does not mean an indefinite appointment to a permanent part-time position and an RA appointment should have a beginning date and an end date; and interim appointments are generally used for single or unique positions such managerial and executive positions, thus the employment terms must specify an end date. The Employer explained it was a misunderstanding of the requirements and that the excessive payrate was an oversight.

KENSINGTON COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-113
assurance that the Employer complied with the specified provisions of the PERL, and the CalPERS contract subject to this review. The results outlined in this report are based on information made available or otherwise obtained at the time this report was prepared. This report does not constitute a final determination with regard to the results noted within the report. The appropriate CalPERS divisions will notify the Employer of the final determinations and provide appeal rights, if applicable, at that time.

Summarized Response
The Employer agreed with Observations 2 and 4, and disagreed with Observations 1, 3, 5, and

6. For Observation 1, the Employer agreed the hours worked by the RAs were misreported but disagreed the reported payrates were incorrect because the RAs were paid payrates consistent with their comparable positions. OFAS reviewed the information and as noted in our Recommendation above, the Employer should work with CalPERS Employer Account Management Division to resolve the Observations to ensure all RA appointments, payrates, and work hours are reported accurately. For Observation 3, the Employer explained they were actively recruiting for the Police Chief position and a public notice of recruitment was inefficient for their small district; therefore, their recruitment was limited to specific eligible candidates and possible internal recruitment. For Observation 5, the Employer explained that the RA’s appointment began shortly after the onset of the Covid-19 pandemic, which severely impacted the Employer in all areas. For Observation 6, the Employer stated the General Manager position should not be subject to CalPERS’ post-retirement employment requirements given that their CalPERS’ contract only covers local safety police membership classifications, and the position is a miscellaneous classification. In addition, the Employer explained that the RAs being vetted and appointed by their governing body should be sufficient to support the RAs possessed the skills necessary for the General Manager position. OFAS reviewed the information and concluded the Observations will remain as stated. #15..
- 723 -

MAMMOTH LAKES FIRE DISTRICT
Employment After Retirement Page A-114
Objective and Scope
CalPERS ID Job Number Contract Date
4455680287 2P23-023 February 1, 1974
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

MAMMOTH LAKES FIRE DISTRICT
Employment After Retirement Page A-115
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Additional
Compensation or
Benefits
The Employer provided additional compensation and benefits to one sampled RA. Specifically, the Employer compensated the RA for 16 hours of sick leave during pay period ending
November 27, 2022, and 24 hours of sick leave during pay period ending December 25, 2022. The RA also accrued sick leave during fiscal year 2022-23. As a result, the Employer's employment of the RA was not compliant with employment after retirement
restrictions.

MAMMOTH LAKES FIRE DISTRICT
Employment After Retirement Page A-116
No. Area Observations
2 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance
compensation requirements for one sampled RA. Specifically, the Employer did not obtain written certification from the RA that they did not receive unemployment benefits for prior RA employment during the 12-month period before their RA appointment with the Employer. As a result, the Employer was not compliant with employment after retirement requirements.

However, Employer records indicated the RA worked a total of 910 hours. The Employer did not report the RA’s hours worked and associated payrates for pay periods ending February 19, 2023, March 19, 2023, April 16, 2023, June 11, 2023, and June 30, 2023 and incorrectly reported sick leave hours as hours worked for pay periods ending November 27, 2022 and December 25, 2022.

Additionally, for pay period ending September 3, 2023, the Employer reported 165 hours worked and earnings of $12,058.20; however, the Employer did not correctly report overtime earnings for the associated 65 overtime hours reported to support the RA’s actual earnings of $14,433.30 for the pay period. As a result, the Employer was not compliant with working after retirement requirements.

MAMMOTH LAKES FIRE DISTRICT
Employment After Retirement Page A-117
No. Area Observations
Temporary Communication Specialist – The Employer hired the RA to work as a Temporary Communication Specialist, during January 29, 2018 to July 1, 2020, and as a
Temporary Communication Specialist/Information
Technology (IT) Specialist, during April 17, 2022 to October 2, 2022. The Employer considered the RA’s work in these positions as extra help. However, the Employer’s
employment agreements with the RA did not identify the
RA’s duties and the Employer did not provide
documentation, such as hiring justifications, duty
statements, or other documentation, to support and identify the emergency occurring at the time of hire, or the retiree’s skills needed in performing work of limited duration to demonstrate the RA’s work was consistent with extra help purposes. Additionally, the Employer’s employment
agreements with the RA indicated the RA would be
compensated at Captain pay converted from 56-hour to 40- hour work week. However, without documentation to support and identify the RA’s duties as Temporary Communication Specialist and Temporary Communication Specialist/IT
Specialist, the Employer could not demonstrate the RA’s duties were comparable to duties of a Captain to support the RA’s payrate.

Temporary Division Chief – The Employer hired the RA to work as a Temporary Division Chief during the following employment durations:
o March 4, 2020 to April 16, 2022 – The Employer’s
employment agreement did not identify the RA’s
duties or the need behind the RA’s position. The
Employer explained that the RA was hired as
Temporary Division Chief to fill an interim vacant
Division Chief position when the prior Division Chief
became Acting Fire Chief. The Employer reported the
RA’s position to CalPERS as a position working
under an executive order of the Governor. However,
the Employer did not provide documentation to
demonstrate the RA’s interim appointment was
approved by their governing body and support
recruitment to fill the permanent position.
o January 1, 2023 to current – The Employer’s
employment agreement did not identify the RA’s
duties or the need behind the RA’s position. The
#15..
- 727 -

MAMMOTH LAKES FIRE DISTRICT
Employment After Retirement Page A-118
No. Area Observations
Employer explained that the RA was hired as
Temporary Division Chief to fill a newly created
position to oversee a grant-funded Wildland Program
because they did not have current staff qualified to fill the position or cover the workload. Additionally, a
review of the duties for the permanent Division Chief
position identified that managing grants was only 1 of
23 roles and responsibilities identified for the position.

The Employer was unable to provide documentation
to demonstrate the RA’s duties were comparable to
the full duties of a Division Chief position to support the payrate reported for the RA.

As a result, the Employer’s RA appointments were not compliant with employment after retirement requirements.

GC sections 21224 and 7522.56 state that a retiree may serve without reinstatement from retirement or loss or interruption of benefits upon appointment by an employer either during an emergency to prevent stoppage of public business or because the retiree has specialized skills needed in performing work of limited duration. GC section 21221 subdivision (h) states that a retired person may be employed upon interim appointment by an
employer’s governing body during recruitment for a permanent appointment and deemed by the governing body to require specialized skills or during an emergency to prevent stoppage of public business; and a retired person shall only be appointed once to this vacant position. Additionally, Circular Letter 200-002-14 states RAs should neither be considered a permanent solution to business needs nor should RAs be allowed to work indefinitely; limited duration work does not mean an indefinite appointment to a permanent part-time position and an RA appointment should have a beginning date and an end date; and interim appointments are generally used for single or unique positions such managerial and executive positions; thus the employment terms must specify an end date. The Employer was not aware of the employment after retirement laws or restrictions regarding extra help and interim vacant RA positions.

MAMMOTH LAKES FIRE DISTRICT
Employment After Retirement Page A-119
noted and identify all impacted retirees. Additionally, for all impacted retirees identified, the Employer should ensure all RA appointments, payrates, and work hours are reported accurately, and make adjustments as necessary to any impacted retiree accounts in accordance with GC section 20160.

No. Area Description
1 Duration of RA
Employment
The Employer hired one RA whose length of employment
indicated that they may not have been performing work during an emergency to prevent stoppage of public business, or of limited duration, or in connection with an interim appointment to a vacant position. The duration of the RA’s employment with the Employer was six years.

Summarized Response
The Employer agreed with the Observations noted in the report. #15..
- 729 -

OAKLAND CITY HOUSING AUTHORITY
Employment After Retirement Page A-120
Objective and Scope
CalPERS ID Job Number Contract Date
3818887468 2P23-024 July 1, 1980
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

OAKLAND CITY HOUSING AUTHORITY
Employment After Retirement Page A-121
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Payrate NonCompliance The Employer reported a payrate that did not agree to the actual payrate paid for one sampled RA and reported a payrate that was not consistent with a payrate for a position performing comparable duties for two sampled RAs. The following examples were noted:

For one RA, the Employer reported a payrate that did not agree with the actual payrate paid to the RA. The Employer reported an hourly payrate of $106.32, or a monthly payrate of $18,429.62, in the pay periods ending July 17, 2022 and July 31, 2022 for the RA working as a Special Advisor to the Executive Director. However, employer records indicated the RA was paid an hourly payrate of $212.65 during pay periods ending July 17, 2022 and July 31, 2022. The
Employer’s Senior and Middle Management Pay Schedule,
effective July 1, 2022, listed the Special Advisor to the #15..
- 731 -

OAKLAND CITY HOUSING AUTHORITY
Employment After Retirement Page A-122
No. Area Observations
Executive Director with an hourly payrate range of $97.18 to $112.70, or monthly payrate range of $16,845 to $19,535.

For one RA, the Employer reported a payrate that was not consistent with a payrate for a position performing
comparable duties. The Employer reported a monthly
payrate of $10,189.29 or hourly payrate of $58.78 for the pay period ending October 28, 2022 for the RA working in an Accounting Officer III position. Employer records
indicated the RA was paid at an hourly payrate of $58.78.

However, per the Senior and Middle Management Salary
Schedule, effective July 1, 2022, the comparable
Accounting Officer III position listed an hourly payrate range of $62.31 to $72.26, or a monthly payrate range of $10,801 to $12,525.

As a result, the Employer’s reported payrates for the RAs were not compliant with employment after retirement requirements.

GC sections 21221 and 21224 state compensation for an RA appointment shall not exceed the maximum monthly base salary paid to other employees performing comparable duties as listed on a publicly available pay schedule divided by 173.333 to equal an hourly rate. In addition, GC section 7522.56 states the rate of pay for RAs shall not be less than the minimum or maximum paid by the employer to employees performing comparable duties. The Employer stated the reported payrate for one RA was based on the disclosed payrate per the personnel action form and for the two other RAs, their payrate included a COLA adjustment or temporary agency fee.
2 Ineligible Interim
Vacant
Appointment
The Employer employed an RA in an interim vacant position which was not approved by their governing body. Specifically, the Employer appointed the RA into a Chief of Police position, effective March 13, 2021. The Employer hired the RA for the interim vacant position due to an urgent need for continued leadership within the Police Department until a replacement has been on-boarded and provided a highly skilled knowledge-based transference of critical policies and procedures. However, the Employer was unable to provide supporting documentation to demonstrate the RA’s appointment was approved by their governing body. As a result, the Employer's RA appointment was not compliant with
employment after retirement requirements.
#15..
- 732 -

OAKLAND CITY HOUSING AUTHORITY
Employment After Retirement Page A-123
No. Area Observations
GC section 21221 subdivision (h) states that a retired person may be employed upon interim appointment by an employer’s
governing body during recruitment for a permanent appointment and deemed by the governing body to require specialized skills or during an emergency to prevent stoppage of public business; and a retired person shall only be appointed once to this vacant position. The Employer was not aware an interim vacant RA appointment must be approved by their governing body.
3 RA Position Not
Supported
The Employer could not demonstrate the RA position was required for performing work during an emergency to prevent stoppage of public business, or skills needed of limited duration for two sampled RAs. Specifically, the Employer employed the RAs as Special Advisor to the Executive Director, effective June 27, 2022, and as temporary independent contractor working as an
Accounting Officer II, effective May 25, 2022, respectively.

However, the Employer did not provide supporting documentation, such as hiring justification or other documentation, to support and identify the emergency occurring at the time of hire, or the retiree’s skills needed in performing work of limited duration. As a result, the Employer’s employment of the RAs was not compliant with employment after retirement requirements.

As a result, the Employer was not compliant with employment after retirement requirements.

OAKLAND CITY HOUSING AUTHORITY
Employment After Retirement Page A-124
No. Area Observations
period prior to an appointment. The Employer was unaware that the RAs must certify they did not receive unemployment benefits prior to their RA employment.
5 Actual Hours
Worked Not
Supported
The Employer could not support reported hours worked for one RA. The Employer reported 960 work hours for fiscal year 2022-23.

However, the Employer did not require the RA to complete timesheets and was unable to support the RA’s actual hours worked. As a result, the Employer could not demonstrate the RA’s reported work hours were compliant with employment after retirement requirements.

GC sections 21221, 21224, and 7522.56 state that an RA shall not work more than 960 hours each fiscal year for all employers.

GC section 21220 states if an employer fails to enroll or report the payrate and number of hours worked of a retiree employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the employer may be assessed a fee per retired member per month until the information is reported. The Employer stated no daily timesheets were completed by the RA because the position is tracked as a salaried position in their HRIS system for ease of administration.
6 Work Hours and
Payrate Not
Reported
The Employer did not accurately report hours worked and associated payrates for one RA. Specifically, the Employer did not report all regular hours worked for one RA. The Employer reported 888 hours for fiscal year 2022-23. However, Employer records indicated the RA worked a total of 933 hours. The Employer did not accurately report the RA’s hours worked and associated payrates for the pay periods ending May 7, 2023 and May 10, 2023. As a result, the Employer was not compliant with working after retirement requirements.

GC sections 21221, 21224, and 7522.56 state that an RA shall not work more than 960 hours each fiscal year for all employers.

OAKLAND CITY HOUSING AUTHORITY
Employment After Retirement Page A-125
Recommendation and Criteria
The Employer should ensure retirees are employed, enrolled, and reported in compliance with employment after retirement provisions in accordance with GC sections 21220.5, 21221, 21224, and 7522.56 and CCR sections 579.25 and 586.2. The Employer should work with CalPERS Employer Account Management Division to resolve any working after retirement violations noted and identify all impacted retirees. Additionally, for all impacted retirees identified, the Employer should ensure all RA appointments, payrates, and work hours are reported accurately, and make adjustments as necessary to any impacted retiree accounts in accordance with GC section 20160.

Summarized Response
The Employer agreed with the Observations noted in the report. #15..
- 735 -

SANTA CLARA COUNTY CENTRAL FIRE PROTECTION

DISTRICT
Employment After Retirement Page A-126
Objective and Scope
CalPERS ID Job Number Contract Date
5486958840 2P23-025 July 1, 1953
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

SANTA CLARA COUNTY CENTRAL FIRE PROTECTION

DISTRICT
Employment After Retirement Page A-127
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance
compensation requirements for five sampled RAs. Specifically, the Employer did not obtain written certification from the RAs that they did not receive unemployment benefits for prior RA employment during the 12-month period before their RA appointment with the Employer. As a result, the Employer was not compliant with employment after retirement requirements.

SANTA CLARA COUNTY CENTRAL FIRE PROTECTION

DISTRICT
Employment After Retirement Page A-128
No. Area Observations
period prior to an appointment. The Employer stated they were not aware of the requirement to obtain written certification of the RA not receiving unemployment compensation.
2 Payrate Not
Supported
The Employer could not support the reported payrate for one sampled RA. The Employer reported an hourly payrate of $129.38 for pay period ended December 24, 2023 for the RA working in a Director of Business Services position as extra help to assist the Support Services Division. However, the Employer could not demonstrate the payrate was consistent with a payrate for a position performing comparable duties. Prior to the RA’s work assisting the Support Services Division, the Employer initially hired the RA, effective September 11, 2017, as extra help to assist the Director of Business Services in preparing public works documents and contracts and managing associated bidding processes.

Employer records indicated the RA was compensated at a payrate for the Director of Business Services position because it was the only position that prepared contracts and managed the bidding process. When the RA was assigned to assist the Support Services Division beginning June 20, 2019, the Employer continued to compensate the RA at a payrate for the Director of Business Services position to provide project management for major capital improvement projects. However, the RA’s assigned project management duties were not consistent with the Director of Business Services position duties and the duties for the permanent Director of Business Services position included other executivelevel duties outside of the RA’s extra help duties. The Employer was unable to demonstrate the RA’s project management duties were comparable to the Director of Business Services duties to support the payrate reported for the RA. As a result, the Employer could not demonstrate compliance with employment after
retirement requirements.

The Employer stated the RA worked as extra help to both the Director of Business Services and Director of Support Services and believed the payrate did not have to change.
#15..
- 738 -

SANTA CLARA COUNTY CENTRAL FIRE PROTECTION

DISTRICT
Employment After Retirement Page A-129
No. Area Observations
3 Work Hours
Exceeded 960
The Employer employed an RA whose total work hours exceeded 960 in a fiscal year. Specifically, the Employer reported a total of 971 hours worked for fiscal year 2022-23 for the RA. Employer records indicated the RA worked 971 hours during fiscal year 2022-23. In addition, the Employer received notice from CalPERS that the RA was nearing the 960-hour limitation. The Employer did not report the RA position to CalPERS as an RA position performing services in support of an emergency under the Governor’s Executive Order to allow the suspension of the 960- hour limitation. As a result, the Employer's employment of the RA was not compliant with employment after retirement restrictions.

GC sections 21221, 21224, and 7522.56 state that an RA shall not work more than 960 hours each fiscal year for all employers. GC section 21220 states that if an employer fails to enroll or report the payrate and number of hours worked of a retiree employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the employer may be assessed a fee per retired member per month until the information is reported. The Employer stated they did not know the RA had exceeded the hours limit because they tracked hours by pay period timeframes, rather than by fiscal year.

SANTA CLARA COUNTY CENTRAL FIRE PROTECTION

DISTRICT
Employment After Retirement Page A-130
No. Area Description
1 Duration of RA
Employment
The Employer hired an RA whose length of employment indicated that they may not have been performing work during an
emergency to prevent stoppage of public business, or of limited duration, or in connection with an interim appointment to a vacant position. The duration of the RA’s employment with the Employer was approximately 6.5 years.

Summarized Response
The Employer agreed with Observation 1, disagreed with Observation 2, and did not agree or disagree with Observation 3. For Observation 2, the Employer stated the RA was performing the duties of the Director of Business Services and was compensated at the Director of Business Services’ rate of pay. For Observation 3, the Employer stated they will keep RAs below 900 hours each fiscal year moving forward. OFAS reviewed the disagreement for Observation 2 and concluded the Observation will remain as stated. #15..
- 740 -

WEST ALMANOR COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-131
Objective and Scope
CalPERS ID Job Number Contract Date
7186647253 2P23-026 September 1, 1994
The objective of the Office of Audit Services (OFAS) review was to determine whether public agencies employed retired annuitants (RA) in compliance with employment after retirement provisions in accordance with Government Code (GC) sections 21220.5, 21221 subdivisions (g) and (h), 21224, and 7522.56 and Title 2 of California Code of Regulations (CCR) sections 579.25 and 586.2.

A retired person who has not attained the normal retirement age shall have a bona fide separation in service to be eligible to be employed.

A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed for a period of 180 days following the date of retirement.

A retired person shall not exceed a total of 960 work hours in a fiscal year for all employment with all CalPERS employers.

WEST ALMANOR COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-132
A retired person appointed to an RA position shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.

A retired person shall not be eligible to be employed by a CalPERS employer if, during the 12-month period prior to an appointment, the RA received unemployment insurance compensation for prior RA employment. An RA shall certify in writing to the employer of their compliance upon accepting an offer.

Results in Brief
No. Area Observations
1 Non-Compliance
with
Unemployment
Insurance
Compensation
Certification
The Employer did not obtain written certification to support the retiree was in compliance with unemployment insurance
compensation requirements for one sampled RA. Specifically, the Employer did not obtain certification from the RAs that they did not receive unemployment benefits for prior RA employment during the 12-month period prior to their RA appointment with the Employer.

As a result, the Employer was not compliant with employment after retirement requirements.

WEST ALMANOR COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-133
No. Area Observations
unemployment insurance compensation certification requirements and, therefore, did not obtain written certification from the retiree. 2 RA Position Not
Supported
The Employer could not demonstrate that the RA position was required for performing work during an emergency to prevent stoppage of public business, or that skills were needed for a limited duration for one sampled RA position. Specifically, the Employer employed the RA in the following positions:

Firefighter/Emergency Medical Technician (EMT), effective September 18, 2016
Captain/EMT, effective July 1, 2021
Captain/EMT/Duty Officer, effective December 27, 2021
Captain/Lead Duty Officer, effective January 1, 2022
Captain/Duty Officer, effective May 22, 2022
The Employer provided Personnel Action Forms identifying the RA’s various positions held and duty statements; however, the Employer did not provide documentation, such as hiring
justification, board minutes, or other documentation to support and identify the emergency occurring at the time of hire, or the retiree’s skills needed in performing work of limited duration. As a result, the Employer’s employment of the RA was not compliant with
employment after retirement requirements.

The Employer was not aware of the requirements for employment after retirement or restrictions regarding extra help positions. 3 Payrate Not
Supported
The Employer could not support the payrate reported for one sampled RA. The Employer reported a monthly payrate of
$6,825.87 in pay period ending February 12, 2022 for the RA working as a Captain/Lead Duty Officer. However, Employer records indicated the RA was paid a full-time equivalent monthly payrate of $7,041.65 ($40.63 per hour), which exceeded the RA’s reported payrate and authorized monthly payrate of $6,500 ($37.50 per hour). Additionally, the Employer determined the payrate based on the experience of the retiree and did not have a publicly available pay schedule identifying payrates for positions performing comparable duties. As a result, the Employer could not
#15..
- 743 -

WEST ALMANOR COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-134
No. Area Observations
demonstrate that the RA’s payrate was compliant with employment after retirement requirements.

The RA hours worked for fiscal year 2021-22 exceeded 960 hours. The Employer reported a total of 301 work hours for the period July 18, 2021 through September 11, 2021;
however, Employer records indicated the RA received
compensation for a total of 1,375 hours during the reported period. The Employer did not report the RA position to
CalPERS as an RA position performing services in support of an emergency under the Governor’s Executive Order to allow the suspension of the 960-hour limitation.

The Employer did not accurately report hours worked for the RA in fiscal year 2022-23. The Employer reported a total of 153.61 work hours for fiscal year 2022-23; however,
Employer records indicated the RA worked a total of 839 hours in the fiscal year.

As a result, the Employer’s employment of the RA was not compliant with employment after retirement restrictions.

GC sections 21221, 21224, and 7522.56 state that an RA shall not work more than 960 hours each fiscal year for all employer.

WEST ALMANOR COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-135
No. Area Observations
hours were not reported. Additionally, the Employer was not aware of the process of reporting RA positions working under an emergency Executive Order to CalPERS.
5 Appointments
Not Reported
The Employer did not report appointments for four sampled retirees. Specifically, the Employer did not enroll the retirees upon hire and did not report the retirees’ hours worked and associated payrates. For example, the Employer hired the retiree as a Firefighter, effective February 12, 2022, and the retiree was paid $9,768.72 for 312 hours for the sampled pay period ending February 26, 2022.

No. Area Description
1 Duration of RA
Employment
The Employer hired one RA whose length of employment
indicated that they may not have been performing work during an emergency to prevent stoppage of public business, or of limited duration. The duration of the RA employment with the Employer was 7.5 years.
#15..
- 745 -

WEST ALMANOR COMMUNITY SERVICES DISTRICT
Employment After Retirement Page A-136
No. Area Description
2 No Pay Schedule The Employer does not maintain publicly available pay schedules in compliance with the GC section 20636 and CCR section 570.5.

Summarized Response
The Employer agreed with the Observations noted in the report. #15..
- 746 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

June 10, 2025
Date: April 23, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Dameon D. Booker, Chief Information Officer
SUBJECT: Purchase Agreement with Nynox Solutions for an AI Powered Search Engine CONTACT: Dameon D. Booker, Chief Information Officer,
[email protected], 209-571-5229
DESCRIPTION:

Consider approving an Agreement with Nynox Solutions, Princeton, NJ, to implement and support an AI-powered search engine for a total amount not to exceed $255,000 over three (3) years. (Funding Source: Information Technology Fund)
STRATEGIC PLAN ELEMENT:

This item advances the City of Modesto 2025–2026 Strategic Plan Area: to improve digital services and accessibility by enhancing user experience and access to information across City platforms.

BACKGROUND:

In 2024, City of Modesto staff identified a critical need to modernize the City's website search experience. The current solution produces 4,000–8,000 results per query across more than 22,000 pages and 3,000 PDFs, leading to irrelevant and unhelpful results.

To address this, staff contacted three (3) vendors to evaluate next-generation search capabilities:
 OpenAI did not respond to the City's outreach after multiple attempts.  Oracle proposed a licensing and hosting plan requiring third-party training/maintenance support estimated at $100,000 annually, excluding setup.  Nynox Solutions provided the most responsive and cost-effective proposal, including setup and training.

Nynox’s SmartSearch platform dynamically adapts to evolving content, offers Artificial Intelligence (AI) powered contextual results, and aligns with the City’s digital transformation goals.
#16..
- 747 -
City Council, June 10, 2025
Purchase Agreement with Nynox Solutions for an AI Powered Search Engine

Page 2 of 3 ends

Modesto City CouncilJune 10, 2025

Modesto City Council
June 10, 2025