REPORT TO COUNCIL
SUBJECT
Title
Action on Resolution for an Exception to the 180 Day Waiting Period To Appoint a Retired Annuitant To Serve as Temporary Extra Help (Government Code Sections 7522.56 and 21224)
Report
COUNCIL PILLAR
Manage Strategically Our Workforce Capacity and Resources
BACKGROUND
Generally, the Public Employment Retirement Law (PERL) requires that retired annuitants serve a 180-day wait period before working in a retired annuitant position. However, the PERL also provides for exceptions to this waiting period if certain criteria are met and the governing body of the public agency adopts a non-consent calendar resolution at a public meeting approving the appointment as a critically needed position before the 180 days has passed. The adoption of the resolution allows the employer to hire a retired annuitant to perform work of a limited duration, such as specialized work and limited term complex projects.
There are two types of post-retirement appointments possible under Govt. Code Section 7522.56: 1) Extra help retired annuitants hired to perform work of limited duration such as special projects (Govt. Code Section 21224); and 2) Appointment to a vacant position on an interim basis while a permanent replacement is being recruited (an active recruitment must be in place for this type of appointment, and the appointment must end when the replacement is hired, Govt. Code Section 21221(h)).
DISCUSSION
Greg Bych was a Risk Manager (Job Code 700) in the Human Resources Department. He retired on October 21, 2022. During his tenure, he led and managed a full array of risk management activities including general liability, EBIX, insurance and Workers Compensation. He provided guidance to departments throughout the City and advised management on matters related to risk and liability and implemented best practices.
Mr. Bych’s extensive experience with risk management activities, will greatly assist City staff while it conducts a recruitment to fill the vacant position. Mr. Bych will be available to cross train staff.
Mr. Bych will be appointed to a limited term as-needed temporary employee position as a retired annuitant. This position will perform duties comparable to the Risk Manager (Job Code 700) classification. This position will provide guidance on risk management activities as the City recruits to fill the Risk Manager position. He will not participate in day-to-day administrative oversight of his former position. This employment arrangement would fall under the type 2 appointment (Govt. Code Section 21224) as Mr. Bych will be providing technical assistance while the City conducts a Risk Manager recruitment.
The recommended action would certify that the appointment of Mr. Bych meet the requirements as defined in Govt. Code Sections 7522.56 and 21224, specifically:
1. Appointment is necessary to perform critically needed duties prior to the expiration of the 180-day wait period;
2. Mr. Bych have not received a Golden Handshake or any other form of retirement-related incentive;
3. Adoption of resolution was not placed on consent calendar;
4. Employment will be limited to 960 hours/fiscal year; and
5. Compensation will be within the posted salary range in the publicly available salary schedule.
ENVIRONMENTAL REVIEW
The 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)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The Public Employees’ Pension Reform Act (PEPRA) sets forth limitations for compensating retired annuitants. All retirees must be paid hourly, at no less than the minimum, nor more than the maximum, paid to employees doing similar work. Based on the CalPERS formula for setting retired annuitant pay rates, Mr. Bych will be paid at the hourly rate for as-needed consultant position of $96.69. Retirees also do not receive any benefits. Sufficient appropriations are available in the Human Resources Department to fund this interim position. This temporary extra help assignment will not exceed 960 hours per fiscal year, for a total maximum amount of approximately $93,000 for Mr. Bych.
COORDINATION
This report has been coordinated with the City Attorney’s Office and the Finance Department.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov.
ALTERNATIVES
1. Adopt the attached Resolutions to permit the Risk Manager to provide valuable service to the City post-retirement but within the first 180 days of his retirement; or
2. Direct Staff to return with other options.
RECOMMENDATION
Recommendation
Alternative 1: Adopt the attached Resolutions for an Exception to the 180 Day Waiting Period To Appoint One Retired Annuitant To Serve as Temporary Extra Help (Government Code Sections 7522.56 and 21224).
Staff
Reviewed by: Aracely Azevedo, Director of Human Resources
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Resolution for an Exception to the 180 Day Waiting Period To Appoint A Retired Annuitant To Serve as Temporary Extra Help (G. Bych)
2. Greg Bych Offer Letter