February 21, 2023
City Attorney's Office
DATE: February 21, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Dave Aleshire, City Attorney
Michael Huston, Aleshire & Wynder
Subject:
Approval of Settlement Agreement and General Release
for Former Retired Annuitant, Jim Nantell
FINANCIAL IMPACT: The financial impact for this item is $71,659.90, which will be paid out of the following account string: General
Liability – claimant payments 50182316-400553.
PREVIOUS COUNCIL
ACTION:
NA
STATEMENT OF THE
ISSUE:
The City Attorney’s Office is requesting City Council
approval of a settlement agreement with former retired
annuitant employee, Jim Nantell, for release of all
potential employment-related claims, including those
related to CalPERS enforcement
RECOMMENDED ACTION:
APPROVE a Settlement Agreement and General
Release with former retired annuitant Jim Nantell; and
AUTHORIZE the city manager to execute the agreement
– City Attorney’s Office (Dave Aleshire 510-620- 6509).
AGENDA
REPORT
February 21, 2023
DISCUSSION:
In early 2022, CalPERS conducted an investigation of Mr. Nantell’s employment with the City. Following the investigation, CalPERS concluded his employment did not comply with retired annuitant hiring rules and regulations. Mr. Nantell appealed the determination, which initiated the administrative hearing process.
Early during this process, CalPERS indicated to Mr. Nantell that it would be willing to resolve the matter for far less than the $202,000 penalty they were seeking from Mr.
Nantell, and if this offer was accepted, they would not pursue his reinstatement from retirement. While neither the City nor Mr. Nantell admit to any liability or wrongdoing, Mr. Nantell and the City wish to settle claims to avoid potentially costly litigation and to facilitate resolution of the matter with CalPERS.
The City Attorney’s Office has prepared a settlement agreement with Mr. Nantell, whereby the City would pay him a lump sum amount of $71,659.90 in exchange for a release of all potential employment claims against the City, including those related to the above-referenced CalPERS enforcement matter.
DOCUMENTS ATTACHED:
Attachment 1 - Settlement Agreement and General Release