PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: December 3, 2024
Submitted by: Carole Wayman
From: Mayor Jeremy B. Yamaguchi
Agenda Item No: 1.1
Subject:
Resolution Appointing an Interim City Administrator and Approving the Retired Annuitant Employment Agreement with the City
Financial Impact:
Fiscal Impact:
The City Administrator is a regularly allocated position within the City's budget. The costs associated with an Interim City Administrator can be covered in the current year's FY 2024-25 budget.
Summary:
The City Council has expressed a desire to appoint (Appointee) to serve as Interim City Administrator effective December 3, 2024. It is estimated that it may take up to six additional months to complete the recruitment and hiring process.
The City Council considered candidates for the Interim City Administrator position, and ultimately selected Appointee to perform the duties of City Administrator during the completion of the recruitment process, and to prevent stoppage of vital city services.
The attached form of resolution and employment agreement will officially appoint appointee as the City Administrator on an interim basis. The interim appointment complies with Government Code Sections 7522.56 and 21221(h), which allows retired annuitants of the California Public Employees' Retirement System (CaIPERS) to work in a limited term appointment under specific rules.
In accordance with CaIPERS requirements, the hourly rate shall be $ 152.41 per hour, which is the current salary for the City Administrator position. Furthermore, as required by CaIPERS rules, no other benefits will be provided. The proposed Employment Agreement specifies that the appointee serves at the pleasure of the City Council until the soonest of the following occurs: (1) June 3, 2025, (2) upon appointment of a permanent City Administrator, (3) until the appointee works his/her 960th hour for any CaIPERS agency during the 2024-2025 or 2025- 2026 fiscal years, or (4) upon earlier termination of the employment by either the appointee or the City.
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Recommendation:
Recommended Action: It is recommended that the City Council:
1. Adopt Resolution R-2024-86, approving the appointment of an Interim City Administrator; and
2. Approve the Retired Annuitant Employment Agreement.
Strategic Plan Statement:
There is no strategic plan goal associated with this item.
Fiscal Impact Summary:
The City Administrator is a regularly allocated position within the City's budget. The costs associated with an Interim City Administrator can be covered in the current year's FY 2024-25 budget.
Attachments
Resolution No. R-2024-86.docx
Retired Annuitant Employment Agreement 12-3-24.docx
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RESOLUTION NO. R-2024 —86
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PLACENTIA, CALIFORNIA APPOINTING
AS INTERIM CITY ADMINISTRATOR
AND APPROVING THE RETIRED ANNUITANT EMPLOYMENT
AGREEMENT
RECITALS
WHEREAS Government Code section 21221(h) of the Public Employees' Retirement Law permits the governing body to appoint a CaIPERS retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours in a fiscal year; and,
WHEREAS the City Council desires to appoint ("Appointee") as an interim appointment retired annuitant to the vacant position of City Administrator for the City of Placentia under Gov. Code section 21221(h), effective December 3, 2024; and, WHEREAS, under Government Code section 21221(h), the City can appoint a retired annuitant of CaIPERS to work in a vacant position during the recruitment to permanently fill the vacancy or during an emergency to prevent stoppage of public business; and,
WHEREAS, the City Council has authorized the search and recruitment for a permanent appointment on November 19, 2024; and,
WHEREAS this appointment pursuant to Gov. Code section 21221(h) shall only be made once and therefore will end on the soonest of: (1) June 3, 2025, or (2) upon appointment of a permanent City Administrator, or (3) until Appointee works his/her 960th hour for any CaIPERS agency during the 2024- 2025 or 2025-2026 fiscal years, or (4) upon termination of this employment by Appointee or the City; and, WHEREAS consistent with the Government Code, compensation shall be $152.41 per hour which is within the current established salary range for City Administrator and will not include any benefits, nor accrued vacation or leave time, or any other form of compensation in addition to this hourly pay rate; and,
WHEREAS the City Council and Appointee certify that Appointee has not and will not receive a "golden handshake" agreement, as described in Government Code 20903, or any other retirement -related incentive.
NOW, THEREFORE, BE IT RESOLVED:
1. That the City Council of the City of Placentia authorizes and approves the form of Retired Annuitant Employment Agreement for the position of Interim City Administrator between the City of Placentia and Appointee, in substantial form as the agreement attached hereto as Exhibit 1;
2. The City Council finds that the appointment of Appointee to the Interim City Administrator position, commencing on December 3, 2024, is necessary to fill a critically needed position for the City of Placentia because of the need for his specialized skills during the recruitment of a permanent city administrator.
3. The Mayor is authorized and directed to execute the Retired Annuitant Employment Agreement for and on behalf of the City of Placentia, in substantial form as attached hereto, and to execute Resolution R-2024-86
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any other necessary documents to effectuate the terms of the Employment Agreement, in a form approved by the City Attorney.
PASSED, ADOPTED AND APPROVED THIS 3rd DAY OF DECEMBER 2024.
Jeremy B. Yamaguchi, Mayor
ATTEST:
Robert S. Mckinnell, City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing resolution was adopted at a regular meeting of the City Council of the City of Placentia held on the 3rd day of December 2024 by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABS ENT:Councilmembers:
ABSTAIN:Councilmembers:
Robert S. Mckinnell, City Clerk
APPROVED AS TO FORM:
Christian Bettenhausen, City Attorney
EXHIBIT(S):
1 — Retired Annuitant Employment Agreement
Resolution R-2024-86
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Resolution R-2024-86
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RETIRED ANNUITANT EMPLOYMENT AGREEMENT
For the Position Of
INTERIM CITY ADMINISTRATOR
This Employment Agreement ("Agreement") is made and entered into this day of , 2024, by and between the CITY OF PLACENTIA ("CITY"), a California Charter city, and ("ANNUITANT"), an individual, on the
following terms and conditions:
RECITALS
CITY desires to employ the services of ANNUITANT as its Interim City Administrator, temporarily, to carry out the duties and responsibilities of City Administrator as provided for by the City's Charter and Municipal Code, in consideration of and subject to the terms, conditions, and benefits set forth in this Agreement.
ANNUITANT desires to accept employment as Interim City Administrator in consideration of and subject to the terms, conditions, and benefits set forth in this Agreement.
CITY has commenced an open recruitment to permanently fill the vacant position of City Administrator. During the recruitment period, the CITY has an immediate need for an Interim City Administrator, a position involving specialized skills and training, and which is critically necessary for the ongoing duties and functions of the CITY.
ANNUITANT, affirms that he/she has the necessary skills required by the City by virtue of his/her significant experience serving as a City Manager in other cities.
ANNUITANT represents that he/she is a retired annuitant of CaIPERS within the meaning of Government Code §§ 7522.56 and 21221(h) and acknowledges that Annuitant's compensation is statutorily limited as provided in Government Code § 21221(h).
ANNUITANT represents that, as of the effective date of this Agreement, ANNUITANT has not worked for another CaIPERS state or contracting agency as a retired annuitant during the CITY's 2024-2025 fiscal year, and that ANNUITANT therefore acknowledges that he/she is restricted to working no more than 960 hours for CITY, a state agency or other CaIPERS contracting agencies (collectively "CaIPERS Agencies") in a fiscal year, and that his/her compensation is statutorily limited as provided in Government Code § 21221(h). ANNUITANT represents that he/she has not received unemployment compensation from any CaIPERS agencies during the 12 -month period preceding the effective date of this Agreement. ANNUITANT further represents that his/her CaIPERS retirement date became effective prior to the 180 -day period preceding the effective date of this Agreement; that ANNUITANT has not received a retirement incentive upon retirement within the meaning of Government Code § 7522.56(g), and that ANNUITANT has attained normal retirement age within the meaning of Government Code § 21220.5.
I.
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OPERATIVE PROVISIONS
In consideration of the promises and covenants contained herein, the parties agree as follows:
1. Position and Duties.
1.1 Position. ANNUITANT accepts employment with CITY as its Interim City Administrator and shall perform all functions, duties and services set forth in Section 1.4 (Duties) of this Agreement. ANNUITANT shall provide service at the direction and under the supervision of the City Council. It is the intent of the parties that ANNUITANT, as the Interim City Administrator, shall keep the City Council fully apprised of all significant ongoing operations of CITY. Toward that end, ANNUITANT shall report directly to the City Council and will periodically, or as may be otherwise specifically requested by the City Council, provide status reports to the City Council on his activities and those of CITY.
1.2 Term. This Agreement shall become effective and executed both by ANNUITANT and CITY's Mayor, which date shall be the date first referenced above. ANNUITANT shall commence the performance of the required duties as the Interim City Administrator on , 2024, or at such later date as the parties hereto shall agree in writing ("Commencement Date"). This Agreement shall expire as of the first of the following to occur: (i) 5:00 p.m. on June 3, 2025; (ii) upon the employment commencement date of a permanent City Administrator employed by CITY; (iii) upon ANNUITANT working ANNUITANT's 960th hour during the 2023-2024 or 2024-2025 fiscal years, including hours worked for other CaIPERS agencies during such fiscal years; or (iii) upon termination of the Agreement by either ANNUITANT or CITY as provided in Section 4 (Termination) of this Agreement.
1.3 At -Will. ANNUITANT acknowledges that ANNUITANT is an at -will, temporary employee of CITY who shall always serve at the pleasure of the City Council during the period of his service hereunder. The terms of CITY's personnel rules, policies, regulations, procedures, ordinances, and resolutions regarding City Administrative Personnel (collectively "Personnel Policies") , as they may be amended or supplemented from time to time, shall not apply to ANNUITANT, and nothing in this Agreement is intended to, or does, confer upon ANNUITANT any right to any property interest in continued employment, or any due process right to a hearing before or after a decision by the City Council to terminate his employment, except as is expressly provided in Section 1.2 (Term) or Section 4 (Termination) of this Agreement. Nothing contained in this Agreement shall in any way prevent, limit or otherwise interfere with the right of CITY to terminate the services of ANNUITANT, as provided in Section 1.2 (Term) or Section 4 (Termination).
Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of ANNUITANT to resign at any time from this position with CITY, subject only to the provisions set forth in Section 1.2 (Term) or Section 4 (Termination) of this Agreement.
This at -will employment Agreement shall be expressly subject to the rights and obligations of CITY and ANNUITANT, as set forth in Section 1.2 (Term) or Section 4 (Termination) below.
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1.4 Duties. ANNUITANT shall serve as the Interim City Administrator and shall for the Term of the Agreement be vested with the powers, duties and responsibilities of the City Administrator as set forth in the City's Charter and the City's Municipal Code, the terms of which are incorporated herein by reference. ANNUITANT shall provide service at the direction and under the supervision of the City Council. It is the intent of the parties that the Interim City Administrator shall keep the City Council fully apprised of all significant ongoing operations of CITY. Toward that end, ANNUITANT shall report directly to the City Council and will periodically, or as otherwise specifically requested by the City Council, provide status reports to the City Council on his/her activities and those of CITY. It is the intent of the City Council for the Interim City Administrator to function as the chief executive officer of CITY's organization. Without additional compensation, ANNUITANT shall provide such other services as are customary and appropriate to the position of Interim City Administrator, with such additional services assigned from time to time by the City Council as may be consistent with California law and the City Charter. ANNUITANT shall devote his/her best efforts and full-time attention to the performance of these duties, except as may be specifically agreed to by the City Council and ANNUNITANT.
1.5 Hours of Work. ANNUITANT shall devote the time necessary to adequately perform his duties as Interim City Administrator. The parties anticipate that ANNUITANT will work a sufficient number of hours per week allocated between regular business hours and hours outside of regular business hours including, without limitation, attendance at regular and special City Council meetings, attendance at activities of Directed Organizations (as defined below), and attendance at such community events and CITY functions as the Council may direct. Toward that end, ANNUITANT shall be allowed reasonable flexibility in setting ANNUITANT's own office hours, provided the schedule of such hours provides a significant presence at City Hall, reasonable availability to the City Council, CITY staff, and members of the community during regular CITY business hours and for the performance of ANNUITANT's duties and of CITY business. However, in no event shall ANNUITANT be required to work more than 960 hours per fiscal year for CITY, including hours worked for other CaIPERS Agencies during the 2023-2024 or 2024-2025 fiscal years. The position of Interim City Administrator shall be deemed an exempt position under California wage and hour law.
1.6 Reimbursements. The CITY shall reimburse ANNUITANT for reasonable and necessary travel, subsistence and other business expenses incurred by ANNUITANT in the performance of his duties. All reimbursements shall be subject to and in accordance with California law and applicable CITY reimbursement policies. Further, to the degree it may be specifically directed by the City Council, the Council desires ANNUITANT to be reasonably active in statewide, regional and/or local organizations which the Council deems to be necessary towards maintaining and contributing to the advancement of CITY's interests and standing ("Directed Organizations").
1.7 Other Activity. In accordance with Government Code § 1126, during the period of his employment, ANNUITANT shall not accept, without the express prior written consent of the City Council, any other employment or engage, directly or indirectly, in any other business, commercial, or professional activity (except as permitted under Section 1.6 3 1108
[Reimbursements]), whether or not to pecuniary advantage, that is or may be competitive with CITY, that might cause a conflict of interest with CITY, or that otherwise might interfere with the business or operation of CITY or the satisfactory performance of ANNUITANT's duties as Interim City Administrator.
2. Compensation.
2.1 Rate of Pay. For all services performed by ANNUITANT as the Interim City Administrator under this Agreement, CITY shall pay ANNUITANT compensation at the rate of $152.41 per hour according to the current payroll schedule for the City Administrator, paid bi-weekly subject to the limitations provided below.
2.1.1 Compliance with CaIPERS requirements. It is the intent of the parties to compensate ANNUITANT only to the extent permitted under Government Code § 21221(h) and corresponding CaIPERS regulations, including but not limited to 7522.56(d), and policy statements. The Rate of Pay is within the established salary range for City Administrator ($152.41 per hour). ANNUITANT acknowledges that ANNUITANT will be compensated at the rate of $152.41 per hour and will not receive any benefits, incentives, compensation in -lieu of benefits or any other form of compensation.
2.1.2 Recordation and Reporting of Hours Worked. ANNUITANT will comply with all applicable CaIPERS regulations governing employment after retirement, including the recordation and reporting of all hours worked for CITY to CaIPERS as may be required.
CITY shall assist in any such reporting obligations to CaIPERS. Additionally, ANNUITANT shall keep CITY continually apprised of any hours worked by ANNUITANT for other CaIPERS Agencies during the term of this Agreement.
2.2 Benefits.
2.2.1 No Benefits. Pursuant to Government Code §21221(h) and related CaIPERS regulations and policy statements, ANNUITANT shall not receive from CITY any benefits CITY commonly provides to its employees, including without limitation health, dental, or vision insurance coverage, life insurance, employee assistance programs, and similar benefits.
3. Vacation and Leave.
3.1 No Leave. ANNUITANT and CITY agree that ANNUITANT, in accordance with Government Code §21221(h) and related CaIPERS regulations and policy statements, shall not be provided or accrue any personal time off, vacation, sick leave, administrative lease, paid holidays or similar leave benefits.
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4. Termination.
4.1 By CITY. This Agreement may be terminated by CITY for any reason thirty (30) days after providing written notice to ANNUITANT of such termination. CITY 's only obligation in the event of such termination will be payment to ANNUITANT of all compensation then due and owing as set forth in Section 2.1 (Rate of Pay) up to and including the effective date of termination. However, this Agreement may be terminated immediately if necessitated by changes to Cal PERS statutory or regulatory requirements.
4.2 By ANNUITANT. This Agreement may be terminated by ANNUITANT for any reason thirty (30) days after providing written notice to CITY of such termination. CITY shall have the option, in its complete discretion, to make ANNUITANT's termination effective at any time prior to the end of such period, provided CITY pays ANNUITANT all compensation as set forth in Section 2.1 [Rate of Pay] then due and owing him through the last day actually worked.
4.3. No Notice for Expiration. Nothing in this Section 4 (Termination) shall be construed to require either party to give advance written notice for the Agreement to expire as set forth in Section 1.2 (Term).
4.4 Termination Obligations. ANNUITANT agrees that all property, including, without limitation, all equipment, tangible Proprietary Information (as defined below), documents, records, notes, contracts, and computer-generated materials furnished to or prepared by him incident to his employment belongs to CITY and shall be returned promptly to CITY upon termination of ANNUITANT's employment. ANNUITANT's obligations under this subsection shall survive the termination of his employment and the expiration of this Agreement.
5. Proprietary Information.
"Proprietary Information" is all information and any idea pertaining in any manner to the business of CITY (or any CITY affiliate), its employees, clients, consultants, or business associates, which was produced by any employee of CITY during his/her employment or otherwise produced or acquired by or on behalf of CITY. Proprietary Information shall include, without limitation, trade secrets, product ideas, inventions, processes, formulae, data, know-how, software and other computer programs, copyrightable material, marketing plans, strategies, sales, financial reports, forecasts, and customer lists. All Proprietary Information not generally known outside of CITY' s organization, and all Proprietary Information so known only through improper means, shall be deemed "Confidential Information." During ANNUITANT's employment by CITY, ANNUITANT shall use Proprietary Information, and shall disclose Confidential Information, only for the benefit of CITY and as is, or may be, necessary to perform his job responsibilities under this Agreement. Following termination, ANNUITANT shall not use any Proprietary Information and shall not disclose any Confidential Information, except with the express written consent of CITY. ANNUITANT's obligations under this Section shall survive the termination of his employment and the expiration of this Agreement. 5 1110
6. Conflict of Interest.
ANNUITANT represents and warrants to CITY that he presently has no interest, and represents that he will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or interfere in any way with performance of his services under this Agreement.
7. General Provisions.
7.1 Recitals. The recitals, inclusive of all facts and representations, are incorporated into this Agreement as if set forth in the Operative Provisions.
7.2 Vehicle Operation. ANNUITANT shall operate any vehicle used in connection with the performance of his duties as Interim City Administrator in a safe manner and otherwise in observance of all established traffic safety laws and ordinances and shall maintain a valid California automobile's driver's license during the period of employment.
7.3 Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be effective upon delivery by hand or three (3) business days after deposit in the United States mail, postage prepaid, certified or registered, and addressed to CITY at the address below, and or at the last known address maintained in ANNUITANT's file. ANNUITANT agrees to notify CITY in writing of any change in his/her address during his/her employment with CITY. Notice of change of address shall be effective only when accomplished in accordance with this Section.
City's Notice Address:
401 E. Chapman Avenue,
Placentia CA 92870
Attn: Mayor and City Council
Interim City Administrator's Address:
[Deliver to last updated address in personnel file]
7.4 Indemnification. Subject to, in accordance with, and to the extent provided by the California Government Claims Act [Government Code §810 et seq.], CITY will indemnify, defend, and hold ANNUITANT harmless from and against any action, demand, suit, monetary judgment or other legal or administrative proceeding, and any liability, injury, loss or other damages, arising out of any negligent act or omission occurring as a result of ANNUITANT's tenure as the CITY's Interim City Administrator.
7.5 Bonding. CITY shall bear the full cost of any fidelity or other bonds required of the Interim City Administrator under any law or ordinance. 6 7.6 Integration. This Agreement is intended to be the final, complete, and exclusive statement of the terms of ANNUITANT 's employment by CITY. This Agreement supersedes all other prior and contemporaneous agreements and statements, whether written or oral, express or implied, pertaining in any manner to the employment of ANNUITANT, and it may not be contradicted by evidence of any prior or contemporaneous statements or agreements. To the extent that the practices, policies, or procedures of CITY, now or in the future, apply to ANNUITANT and are inconsistent with the terms of this Agreement, the provisions of this Agreement shall control.
7.7 Amendments. This Agreement may not be amended except in a written document signed by ANNUITANT, approved by the City Council and signed by CITY's Mayor.
7.8 Waiver. Failure to exercise any right under this Agreement shall not constitute a waiver of such right.
7.9 Assignment. ANNUITANT shall not assign any rights or obligations under this Agreement. CITY may, upon prior written notice to ANNUITANT, assign its rights and obligations hereunder.
7.10 Severability. If a court or arbitrator holds any provision of this Agreement to be invalid, unenforceable, or void, the remainder of this Agreement shall remain in full force and effect.
7.11 Attorneys' Fees. In any legal action, arbitration, or other proceeding brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs.
7.12 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, with venue proper only in Orange County, State of California.
7.13 Interpretation. This Agreement shall be construed, according to its fair meaning, and not in favor of or against any party. By way of example and not in limitation, this Agreement shall not be construed in favor of the party receiving a benefit nor against the party responsible for any language in this Agreement. Captions are used for reference purposes only and should be ignored in the interpretation of the Agreement. This Agreement may be altered, amended or modified only by an instrument in writing, executed by the parties to this Agreement and by no other means. Each party waives 7 1112
their future right to claim, contest or assert that this Agreement was modified, cancelled superseded or changed by any oral agreement, course of conduct, waiver or estoppel.
7.14 Acknowledgment. ANNUITANT acknowledges that he has had the opportunity to consult legal counsel regarding this Agreement, that he has read and understands this Agreement, that he is fully aware of its legal effect, and that he has entered into it freely and voluntarily and based on his own judgment and not on any representations or promises other than those contained in this Agreement.
IN WITNESS WHEREOF, CITY has caused this Agreement to be signed and executed on its behalf by its Mayor and duly attested to by its City Clerk, and ANNUITANT has signed and executed this Agreement, as of the date first indicated above.
INTERIM CITY ADMINISTRATOR
("ANNUITANT")
8 CITY OF PLACENTIA,
A California Charter City and municipal
corporation,
By:
Mayor
Attest:
By:
City Clerk
Approved as to form:
By:
City Attorney
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