DATE: February 11, 2025
DEPARTMENT: HUMAN RESOURCES
FROM: Marina Horta-Gallegos, Director
BY: Patricia Peñaloza, Human Resources Manager
TITLE: EXCEPTION TO THE CALPERS 180-DAY WAIT PERIOD
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing an exception to the 180-day wait period for hiring retired CalPERS member David B. Gonzalves as Interim Assistant Community Development Director.
EXECUTIVE SUMMARY:
Assistant Community Development Director (ACDD) David B. Gonzalves has announced he will retire on March 12, 2025. Pursuant to Government Code sections 7522.56 and 21221(h), the City Council may authorize an exception to the 180-day wait period for hiring a retired annuitant by Resolution. Staff recommend the Council grant the 180-day exemption to allow so that Mr. Gonzalves may temporarily perform the duties as Interim ACDD.
BACKGROUND:
The Public Employees’ Pension Reform Act of 2013 (PEPRA) made substantial changes to the public employee pension laws in California. One of those changes required 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. An exception may be made if the governing body approves a resolution to waive the waiting period for separation. The waiver allows an employer to hire a retired annuitant to perform work requiring specific skills for a period of limited duration during the recruitment for a permanent position.
The Community Development Department currently has a vacancy at the Assistant Community Development Department Director level and anticipates another vacancy with the upcoming retirement of Mr. Gonzalves. To ensure continuity during the recruitment process to fill both vacancies, the City requires a qualified person to temporarily perform the duties of Assistant Community Development Director on a limited basis. Mr. Gonzalves will retire on March 12, 2025, after which time he will be appointed Interim Assistant Community Development Director until no later than December 31, 2025.
As a retired annuitant, Mr. Gonzalves will be limited to no more than 960 work hours per fiscal year.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
No.
STRATEGIC PLAN INITIATIVE:
The proposed action meets the Effective and Culturally Responsive Government Council goal.
DEPARTMENTAL COORDINATION:
The Human Resources Department coordinated with the Community Development Department.
FISCAL AND SUSTAINABILITY IMPACT:
No impact on the approved fiscal year operating budget is anticipated.
Fund
Appropriation
Appropriation
Name
Total Appropriation
Amount for recommendation
FY 24-25 Operating Budget Page
Last Budget Action (Date, Resolution)*
n/a
n/a
n/a
n/a
n/a
n/a
n/a
* The FY 24-25 Adopted Budget was adopted on June 11, 2024.
ATTACHMENTS:
Resolution
Exhibit A - Classification – Salary Schedule
Exhibit B - Appointment Letter
RESOLUTION NO. _________ (N.C.S.)
A RESOLUTION APPROVING EXCEPTION TO THE 180-DAY WAITING PERIOD TO HIRE A CALPERS RETIRED ANNUITANT IN ACCORDANCE WITH GOVERNMENT CODE SECTIONS 7522.56 and 21221(h) WHEREAS, in compliance with Government Code Section 7522.56, the City of Salinas must provide CalPERS this certification resolution when hiring a retiree before 180 days has passed since his or her retirement date; and WHEREAS, David B. Gonzalves, CalPERS ID 5399155096, will retire from the City of Salinas, Community Development Department, from the position of Assistant Community Development Director, effective March 12, 2025; and WHEREAS, Section 7522.56 requires that post-retirement employment commence no earlier than 180 days after the retirement date, which is September 9, 2025, without this certification; and WHEREAS, Section 7522.56 provides that this exception to the 180-day waiting period shall not apply if the retiree accepts any retirement-related incentive; and WHEREAS, the City Council, the City of Salinas and David B. Gonzalves certify that David B. Gonzalves has not and will not receive a Golden Handshake or any other retirement related incentive; and WHEREAS, an appointment under Gov. Code section 21221(H) requires the retiree is appointed into the interim appointment during recruitment for a permanent appointment; and WHEREAS, the City of Salinas has commenced the search for a permanent appointment on (date); and WHEREAS, the City Council hereby appoints David B. Gonzalves as an interim appointment retired annuitant to the vacant position of Assistant Community Development Director, for the City of Salinas Community Development Department under Government Code Sections 7522.56 and 21221(h), effective March 17, 2025; and WHEREAS, this Government Code section 21221(h) appointment shall only be made once and therefore will end on December 31, 2025; and WHEREAS, the entire employment agreement, contract or appointment document between David B. Gonzalves and the City of Salinas has been reviewed by this body and is attached herein; and WHEREAS, no matters, issues, terms or conditions related to this employment and appointment have been or will be placed on a consent calendar; and WHEREAS, the employment shall be limited to 960 hours per fiscal year for all CalPERS employers; and WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and WHEREAS, the maximum monthly base salary for this position currently is $15,322 and the hourly equivalent is $88.3933, and the minimum monthly base salary for this position currently is $12,004 and the hourly equivalent is $69.2542; and WHEREAS, the hourly rate paid to David B. Gonzalves will be $84.1892; and WHEREAS, David B. Gonzalves has not and will not receive any other benefit, incentive, compensation in lieu of benefit or other form of compensation in addition to this hourly pay rate; and NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby certifies the nature of the appointment of David B. Gonzalves as described herein and detailed in the attached appointment document and that his appointment is necessary to fill the critically needed position of Assistant Community Development Director for the City of Salinas by March 17, 2025, and through December 31, 2025.
PASSED AND APPROVED this 11th day of February, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
Exhibit A – Classification Salary Schedule
Page | 3
Page | 1
CITY OF SALINASCOUNCIL STAFF REPORTCITY OF SALINASCOUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT