City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Human Resources
Meeting Date: February 9, 2026
Report #:2601-5789
TITLE
Approve a resolution for an exception to the CalPERS 180-day waiting period to appoint retired annuitant Aaron Miller; CEQA Status - Not a Project
RECOMMENDATION
Staff recommends that the City Council adopt a resolution, pursuant to Government Code sections 7522.56 and 21224, approving an exception to the 180-day waiting period, set forth by the California Public Employee Retirement System (CalPERS), to allow the appointment of retired annuitant Aaron Miller to a temporary, part-time assignment to perform special-project work of limited duration at the Regional Water Quality Control Plant, following completion of the required 60-day bona fide separation from service.
BACKGROUND
The Regional Water Quality Control Plant (RWQCP) is undergoing a significant and complex rebuild to modernize aging infrastructure (six major projects active) and ensure continued regulatory compliance and service reliability. Aaron Miller, former Assistant Plant Manager with 34 years of experience, overseeing the Maintenance Department, retired on December 31, 2025. Mr. Miller possesses unique, long-tenured knowledge of the plant’s underground piping systems, mechanical infrastructure, and long-term maintenance strategies. His historical knowledge is critical during this temporary transitional period.
CalPERS generally requires a 180-day waiting period post-retirement before a retiree may return to work as a retired annuitant. Exceptions may be made if the governing body adopts a resolution to waive the waiting period for separation and reviews the employment agreement.
The waiver allows an employer to hire a retired annuitant to perform work of limited duration.
ANALYSIS
The RWQCP rebuild is a complex, multi-year modernization effort that involves multiple concurrent projects and ongoing interfaces between new construction and legacy systems. Mr.
Miller’s retirement has created a gap in specialized expertise that is needed to maintain continuity and reduce operational and compliance risk during this critical phase of the work.
The City is requesting approval of an exception to the 180-day waiting period pursuant to Government Code sections 7522.56 and 21224 to allow Mr. Miller to perform defined, limited- duration Extra Help.
Rehiring Mr. Miller as a retired annuitant during this limited duration will provide the City with immediate access to his specialized expertise and support continuity in the integration of capital projects with existing infrastructure. His work will focus on defined project-based activities tied to commissioning, turnover knowledge transfer, and operational readiness, including:
•Support capital project integration and operational reliability where new systems interface with legacy infrastructure.
•Enhance regulatory readiness through operational readiness reviews at key milestones.
Readiness reviews will be completed prior to substantial completion and at turnover milestones to support operational continuity and risk mitigation •Accelerate onboarding and strengthening staff capacity through structured training and knowledge transfer.
•Improve the transition of capital projects from construction to operations by supporting commissioning close-out activities, such as completion of Operation and Maintenance manuals, as-built documentation, spare parts verification, CMMS data loading, and asset hierarchy development.
The Public Employees’ Pension Reform Act of 2013 (PEPRA) and the CalPERS Public Employees’ Retirement Law govern post-retirement employment for CalPERS retirees. Under Government Code sections 7522.56 and 21224, a retiree may only be employed in a designated Extra Help position to perform work of limited duration, such as eliminating a backlog, completing special projects, or addressing temporary workload demands that exceed the capacity of regular staff.
This appointment is not intended to fill a vacant ongoing position, but to perform defined, project-based work.
Mr. Miller’s employment as a retired annuitant will comply with all CalPERS Extra Help requirements, including:
•Limited duration and project-based scope;
•Designation in a retired-annuitant Extra Help position; •No retirement incentives or additional benefits, severance, or prearranged employment agreement;
•Adherence to the 60-day bona fide separation period prior to reemployment when a member retires prior to their normal retirement age; and •Adherence to the 960-hour annual limit and appropriate rate of pay.
An anticipated duration is not to exceed two years (subject to earlier completion of project milestones) - reflecting the expected timeline for completion of major RWQCP capital projects and the associated knowledge-transfer activities.
Given the complexity and regulatory sensitivity of the RWQCP modernization, retaining Mr.
Miller for a defined, limited-duration period provides a strategic, cost-effective, and compliant solution to support project success, strengthen staff capability, and preserve critical institutional knowledge during a pivotal time for the plant.
FISCAL/RESOURCE IMPACT
Expenses associated with the limited term retired annuitant will be funded through vacancy savings in the Wastewater Treatment Fund (Fund 526). Additionally, this assignment will not impact partner agencies, as the cost will be absorbed within existing appropriations that were already included in the approved operating budget.
If the Retired Annuitant assignment extends beyond the anticipated not to exceed two year period or vacancy savings become insufficient, staff will evaluate available funding within the Wastewater Treatment Fund and return to the City Council for any necessary budget amendment or authorization.
STAKEHOLDER ENGAGEMENT
Staff in Human Resources and the Public Works Departments collaborated to ensure compliance with CalPERS post-retirement employment provisions and the Public Employees’ Retirement Law. The employment agreement between Aaron Miller 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 for 180-Day Exception for Aaron Miller Attachment B: Employment Agreement for Aaron Miller
APPROVED BY:
Sandra Blanch, Human Resources Director