City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Human Resources
Meeting Date: February 12, 2024
Report #:2401-2521
TITLE
Adoption of a Resolution Certifying the Need for an Exception to the California Public Employees Retirement System (CalPERS) 180-day Waiting Period to Hire Matthew Raschke as a Retired Annuitant Extra Help Senior Engineer. CEQA status - Not a Project
RECOMMENDATION
Staff recommends that the City Council adopt a resolution certifying the need for an exception to the 180-day waiting period, set forth by CalPERS, to hire Matthew Raschke as a Retired Annuitant Extra Help Senior Engineer.
BACKGROUND
The Public Employees’ Pension Reform Act of 2013 (PEPRA) generally requires retired annuitants to be separated from employment for at least 180 days before returning to work for an employer in the same retirement system from which they receive a pension.1 An exception to this requirement may be made when the employer’s governing body certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed.2 The exception allows an employer to hire a retired annuitant to perform work of limited duration, such as to eliminate a backlog, work on limited term special projects, and perform work that is in excess of what regular staff can reasonably perform. PEPRA states that this appointment must be approved by the employer’s governing body in a public meeting as an action item. To secure a 180-day wait period exception, the employer must submit the approved resolution to CalPERS before the first day of re-employment.
ANALYSIS
The Public Works Department has been managing the design and construction of the Public Safety Building as part of the 2014 Council Infrastructure Plan.3 The Public Safety Building’s 1 Government Code section 7522.56 (f).
2 Government Code section 7522.56 (f)(1).
3 https://www.cityofpaloalto.org/Departments/Public-Works/Engineering-Services/Engineering-Projects/Public- Safety-Building-Project
construction is approximately 90% complete, but there are still many important tasks left to do, including commissioning, move-in, and fit-up of all the technical equipment and furniture. The senior engineer serving as project manager manages most of this work, which is conducted by and through contractors. The project manager also performs special coordination with the prime contractor.
Matthew Raschke served as the project manager for the Public Safety Building for over nine years. He gained detailed knowledge of the building’s design and has built positive working relationships with the Public Safety Building’s project design team and construction teams.
The Public Works Department requires the skills and experience of Matthew Raschke to complete special project work related to the Public Safety Building. Due to Raschke’s specialized knowledge of the Public Safety Building construction project, employing Matthew Raschke as a retired annuitant is the most effective option for completing construction-related work at this critical point.
Matthew Raschke has extensive knowledge of the Public Safety Building’s construction activities to date and will be highly advantageous to participate in processing construction change order requests and other tasks as part of the project close-out. If City Council adopts the recommended resolution, Matthew Raschke can be rehired in March 2024. The Public Safety Building construction project is set to be completed later this spring. However, close-out of the project may take an additional six to nine months. Staff expects to need Matthew Raschke to work part-time through the close-out of the project.
FISCAL/RESOURCE IMPACT
The cost of this retired annuitant hourly position will be funded by vacancy savings from vacant positions, including the employee’s previous full-time position, that are budgeted in the Capital Fund to work on capital projects such as the Public Safety Building Project (PE-15001). The Public Works Department will ensure vacancy savings are available in the Capital Fund to fund the cost of the hourly position for six to nine months while the Public Safety Building Project is completed.
STAKEHOLDER ENGAGEMENT
Staff in Human Resources and the Public Works Departments coordinated on the resolution to re-hire a highly knowledgeable retiree annuitant in compliance with CalPERS Public Employment Retirement Law. The employment agreement between Matthew Raschke and the City of Palo Alto is attached herein.
ENVIRONMENTAL REVIEW
Council approval of the resolution is exempt from California Environmental Quality Act (CEQA) because it can be seen with certainty that approving the resolution will not result in any environmental impacts.
ATTACHMENTS
Attachment A: Resolution No. 10147: A Resolution of the City Council for the City of Palo Alto Approving an Exception to the California Public Employees Retirement System 180-day Waiting Period to Hire Retired Annuitant Matthew Raschke
Attachment B: Employment Agreement – Raschke 2024
APPROVED BY: Sandra Blanch, Human Resources Director