REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Approving an Exception to the CalPERS 180-Day Waiting Period for Work After Retirement for Brice McQueen, Senior Management Analyst in the Department of Finance
Report
BACKGROUND
CalPERS rules generally prohibit hiring retired annuitants to permanent or regular staff positions without reinstatement from retirement, and require a minimum “waiting period” of 180 days following retirement. However, there are some limited exceptions to that prohibition allowed by Government Code section 7522.56. Section 21221(h) of the Government Code allow a retiree to serve without reinstatement from retirement for a single interim appointment to a vacant managerial, executive or other unique position. Similarly, Government Code section 21224 allows agencies to hire retirees to perform work of limited duration, such as the elimination of backlogs, limited term special project work, or to do work in excess of what regular permanent staff can do. To waive the 180-day waiting period, a public agency must adopt a resolution certifying the nature of the employment and that the appointment is necessary to fill a critically needed position before the 180 days has passed.
Finance Department Senior Management Analyst, Brice McQueen, recently submitted his resignation and retirement effective December 30, 2017. Brice is the department’s exclusive analyst for the Redevelopment Successor Agency (RSA), and there are several actions related to redevelopment that need to be completed over the coming six months, including an oversight board meeting in late January. Brice carries many years of knowledge and experience related to the RSA (and former Redevelopment Agency). Therefore, it is in the best interest of the City to hire him to perform limited services to meet this unique and limited duration need. He has agreed to continue in a Casual Management capacity to carry out this function.
EXISTING POLICY
CalPERS rules (Government Code Sections 21221(h), 21224 and 75222.56) require the City Council to approve and make specific findings in order to hire a retiree.
Council Policy 7.3.1 Legislative Management - Goals and Policies, Goal 7.3D also provides that the City will strive to maintain a quality work force, consistent with state and federal laws, City Charter, and adopted policies in order to assure that City services are provided in an effective, efficient, and high quality manner. Approving the appointment of Mr. McQueen will allow the City to comply with state law and further its internal goal of providing effective, high quality service to the Community.
ENVIRONMENTAL REVIEW
This action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment and section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
The City is required to comply with CalPERS rules pertaining to rehiring CalPERS retirees. CalPERS retirees cannot be hired into vacant permanent or regular staff positions sooner than 180 days following the retirement date unless the Council approves a limited duration interim appointment to a position that requires the unique expertise of a retiree to efficiently and effectively perform specialized work, such as high-level managerial vacancies.
Mr. McQueen has been the lead on managing and administering the RDA and subsequently the RSA for the past 20 years. At its January meeting, the RSA Oversight Board will consider several critical actions, including approving the Recognized Obligation Payment Schedule for the coming year, considering actions related to properties owned by the RDA, and addressing environmental clean-up costs. Mr. McQueen’s experience and institutional knowledge is critical to the timely and efficient preparation for and conduct of this meeting, as well as other RSA action needed in early 2018.
Mr. McQueen’s appointment as a Casual Manager in the Finance Department, effective January 3, 2018, meeting the CalPERS requirements (Government Code section 21221(h)) for hiring a retired annuitant for the following reasons:
- The Senior Management Analyst in Finance assigned to the RSA is a key management position that requires specialized skill and experience in administration of the RSA.
- Mr. McQueen has extensive experience with the City (30 years) and has been the primary employee assigned to manage the City’s Redevelopment Agency and Redevelopment Successor Agency for approximately 20 years. He has been the primary employee assigned to support implementation of the Redevelopment Dissolution Act (Act) as related to the administration of the dissolution process. His expertise is needed for a temporary period to unwind the former Redevelopment Agency’s financial obligations through the management of audits, budgets, payment schedules and the administration of other legal requirements imposed by the Act. Additionally, his continued detailed downtown expertise is also needed for environmental remediation issues, debt management, property transfers, and modification of the former Town Center development agreement.
- Mr. McQueen’s notice of retirement did not provide sufficient time to fill his former position or train an existing employee to assume the redevelopment responsibilities by the time a key RSA Oversight Board meeting is held in early 2018.
- McQueen’s temporary appointment as a Casual Manager is therefore key to ensure continuity of RSA operations until current staff can develop base levels of knowledge needed to support the redevelopment function.
- Continued support of an analyst to support administration of the RSA is critical.
- Mr. McQueen will be a CalPERS retiree with less than 180 days between his retirement effective date and the effective date of his appointment. The resolution regarding his appointment includes approval of an exception to the 180-day waiting period because his skills and experience are needed to effectively and efficiently maintain RSA operations for a limited duration and Mr. McQueen’s unique qualifications to fill that role.
- This will be a single appointment to of a limited duration, focusing on the RSA Oversight Board meetings and RSA actions necessary in the first quarter of 2018 and continuing only until a new staff member is able to reasonably assume RSA responsibilities, no longer than one year.
- Mr. McQueen will work in the classification of Casual Management 2 and will be compensated at a rate of $62.5740 per hour which is in the published pay range of Senior Management Analyst.
- Mr. McQueen will not receive any other form of compensation, benefits or incentives.
FISCAL IMPACT
The fiscal impact from this appointment can be absorbed within the Department of Finance’s Operating Budget through salary savings from several vacant positions, including the Senior Management Analyst.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
ALTERNATIVES
1. Adopt a resolution approving the exception to the CalPERS 180-day wait period and appointment of Brice McQueen to the Casual Management 2 position (Government Code Sections 21221(h), 21224 and 7522.56).
2. Do not adopt a resolution approving the exception to the CalPERS 180-day wait period and the appointment of Brice McQueen to the Casual Management 2 position.
RECOMMENDATION
Recommendation
Alternative 1: Adopt a resolution approving the exception to the CalPERS 180-day wait period and appointment of Brice McQueen to the Casual Management 2 position (Government Code Sections 21221(h), 21224 and 7522.56).
ATTACHMENTS
1. Resolution
Staff
Prepared by: Timothy J. Kirby, Director of Finance
Reviewed by: Teri Silva, Interim Assistant City Manager
Approved by: Kent Steffens, Interim City Manager