May 16, 2023
Human Resources
DATE: May 16, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Nickie Mastay, Deputy City Manager
Sharrone Taylor, Interim Director of Human Resources
Subject:
Appointment of a Retired Annuitant to Perform Critically Needed Special Project Work in the Finance Department
FINANCIAL IMPACT: There is no new fiscal impact or budget action necessary resulting from the recommended appointment. The
proposed expenditures will be funded by salary savings
in the respective department’s approved FY 2022-2023
budgets – (Finance Department Part-Time Budget
01171115-400006).
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
City Council approval is requested to appoint retired
annuitant Delmy Cuellar prior to the end of the CalPERS required 180-day waiting period following her retirement.
RECOMMENDED ACTION:
APPROVE the appointment of Delmy Cuellar as extra
help/special project retired annuitant for a limited term, special project role not to exceed one year; and ADOPT
the resolution approving the 180-day wait period
exception – Human Resources Department (Nickie
Mastay/Sharrone Taylor 510-620-6602).
AGENDA
REPORT
May 16, 2023
DISCUSSION:
The City Manager’s Office recently petitioned Human Resources to hire a retired employee to provide extra help/special project finance services work for a limited term not to exceed one (1) year.
Ms. Cuellar retired as the Director of Finance on March 31, 2023, after sixteen years of service to the City. The City is currently recruiting for the Director of Finance vacancy, and the day-to-day operations of this position are being handled by the Deputy City Manager and Deputy Director of Finance until the vacancy is filled. (Ms. Cuellar would not be serving as Interim Director of Finance.)
Ms. Cuellar’s experience and expertise are critically needed for the Finance Department to complete several major ongoing projects, including the Corrective Action Plan required by the State Auditor, the Fiscal Year 2023-2024 budget, and implementation of Trak-It software. Ms. Cuellar will provide management assistance with these special projects, which are all critical to meeting the Finance Department’s obligations.
The requirements for retired annuitant appointments are based on California Public Employee Retirement Law (PERL) and federal tax law for post-retirement services provided by a retired annuitant. These laws allow employment of a retired annuitant in two (2) specific circumstances — (1) to provide "extra help"; or (2) to work in a vacant position on an interim basis during the recruitment process. Extra help appointments include when the retired annuitant is hired to perform work of limited duration, such as elimination of a backlog, special project work, or to perform work exceeding regular staff work. Additional restrictions for extra help appointments include:
The retired annuitant must provide services of limited duration; Compensation may be no more than another employee would receive for similar work; and
The annuitant’s work must not exceed 960 hours in any fiscal year.
CalPERS retired annuitants are generally prohibited from returning to work for a CalPERS employer within 180 days of their retirement. However, Government Code section 7522.56(f) provides for several exceptions from this general rule. One exception is when the employer “certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting.” Such an appointment must be approved as an item of business not on the consent calendar.
The requested return date for Ms. Cuellar is less than 180 days after her retirement date, and therefore her appointment must fall within one of the exceptions under Government Code section 7522.56(f) in order to comply with CalPERS rules. City staff believes that Ms. Cuellar’s appointment meets the critical necessity exception, which requires a City Council resolution. Therefore, City staff is requesting that City Council
May 16, 2023
adopt a resolution certifying the critical need for Ms. Cuellar’s appointment to perform extra help/special project Finance Department work such that she can work for the City as a retired annuitant before 180 days have passed since her retirement.
ANALYSIS:
Ms. Cuellar possesses specialized skills required to perform the extra help/ special project work needed by the Finance Department and will perform the aforementioned services for a limited duration not to exceed one (1) year total. The extra help/ special project work which she will perform is essential to maintaining the basic ongoing Finance Department operations. Specifically, her professional expertise is required for the following special projects: responding to a state audit, implementing new City-wide software that is used for a critical function in Finance (Measure U), providing City financial information and analysis to be used in negotiations with two bargaining groups, beginning implementation of a class and comp study, and initiating budget preparation for the upcoming fiscal year.
In accordance with applicable laws, Ms. Cuellar will be compensated hourly at $95.90 per hour consistent with the Project Manager III position, the position which includes duties most comparable to those specific tasks that will be performed by Ms. Cuellar.
The current hourly compensation range for the position of Project Manager III is $60.24 per hour to $95.90 per hour. She will not receive any other benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate. Her work schedule will be approximately 15-20 hours per week.
Accordingly, City staff believes Ms. Cuellar’s appointment meets both the independent statutory basis for employing a retired annuitant to provide extra help and the statutory exception to the 180-day waiting period for critically needed positions.
RECOMMENDATION:
City Staff recommends the City Council:
1. Adopt the Resolution approving an exception to the 180-day waiting period for Delmy Cuellar; and
2. Approve the employment agreement between the City and Ms. Cuellar, and authorize the City Manager to execute.
DOCUMENTS ATTACHED:
Attachment 1 – 180-Day Wait Period Resolution for Delmy Cuellar Attachment 2 – Employment Agreement