City Council Staff Report Page 1 of 3 June 23, 2026
Staff Report
Agenda Item No. 6.4
DATE: June 23, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Kris Kokotaylo, City Attorney
SUBJECT: Adopt a Resolution Approving First Amendment to Employment Agreement with Farooq Azim to Serve as Extra Help to the City Engineer
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution approving the First Amended Employment Agreement with Farooq Azim to continue to provide services to fill the critically needed position of extra help to the City Engineer.
STRATEGIC PLAN ALIGNMENT
This item is not directly related to the strategic plan.
BACKGROUND
Farooq Azim (“Azim”) retired from the City in the position of City Engineer, effective October 6, 2025. Government Code Section 7522.56(f) requires a 180-day waiting period before a retired annuitant can be employed by a CalPERS agency unless the nature of the employment meets one of the statutory exceptions and is approved via resolution by the governing body. Thus, under state law, annuitant Azim could not be employed by the City prior to April 4, 2026, unless an exception applied. Government Code Section 7522.56(f)(1) permits the legislative body of a public employer to employ an annuitant upon making specified findings certifying the nature of the employment and finding that the appointment is necessary to fill a critically needed position before 180 days have passed.
On October 14, 2025, the City Council adopted Resolution No. 2025-138 approving an exception to the 180-day waiting period for post-retirement employment of Farooq Azim to fill the critically needed position of extra help to the City Engineer and making the necessary findings pursuant to California Government Code Sections 7522.56(f)(1) and 21224, as discussed above.
The terms of the Employment Agreement state that the term is limited to June 30, 2026, and that the hourly rate is $115.03. Such terms are in conformance with CalPERS Agenda Item No. 6.4
City Council Staff Report Page 2 of 3 June 23, 2026
regulations.
The current Resolution would extend the term of the current employment agreement with Azim from June 30, 2026, to December 31, 2026, as staff has found that the need for extra help identified in the original resolution remains.
DISCUSSION
By and through adoption of Resolution No. 2025-138 on October 14, 2025, the City Council found Azim’s appointment qualified for an exception under Government Code section 7522.56(f) permitting employment before the expiration of the 180 days. Further, Council’s adoption of Resolution No. 2025-138 made the specific findings regarding the hiring of a retired annuitant subject to CalPERS regulations, as outlined in Government Code Section 21224.
As a CalPERS extra-help retired annuitant, Azim is eligible for this exemption based on his role performing work of limited duration (no more than 960 hours per fiscal year), including eliminating backlogs, limited-term special project work, and/or work in excess of what regular permanent staff can do. In this instance, the limited-term special project relates to assisting with the following projects, as well as other projects as assigned, for which Azim is uniquely qualified from his years of experience working for the City:
• Transitioning all Land Development Projects and Clean Water Program responsibilities to the new City Engineer;
• Closing out other land development or CIP projects;
• Continuing the project manager (PM) role for the BART At-Grade Pedestrian Crossing during permitting prior to the start of construction and transferring other UP improvements;
• Coordinating the relocation of Verizon’s fiber optic line in UP’s right of way, which is to begin on October 6, 2025;
• Reviewing and approving the improvement plans and Parcel Map for the Lazuli Landing development and helping resolve staging for this project; • Helping resolve the several outstanding items for Lennar development, including alignment of Decoto Road/9th Street, CPUC easement, angled parking, approval of submittals for the storm drain system, and discussions regarding a fiber optic line to the Corp Yard; and
• Helping close out the Sea Breeze Park improvements associated with Nuvera Homes.
The current Resolution would extend the term of the employment agreement with Azim from June 30, 2026, to December 31, 2026, as staff has determined that additional help is still needed to facilitate the transition of duties to the newly hired City Engineer. Other than the duration of the employment, the terms remain unchanged. The hourly rate remains $115.03 and is limited to a total of 1,200 hours in conformance with CalPERS regulations.
Agenda Item No. 6.4
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FISCAL IMPACT
Sufficient funding is available within the Adopted Budget to fund this amendment to the retired annuitant Employment Agreement with Farooq Azim due to the vacancies within the Public Works Department.
RECOMMENDATION
Staff recommends that the City Council adopt a Resolution approving the First Amendment to the Employment Agreement with Farooq Azim to serve as Extra Help to the City Engineer.
Prepared by: Erica Gonzalez
Submitted by: Kristopher Kokotaylo, City Attorney
Attachments
1. Draft Resolution
2. Exhibit A – Annuitant Agreement