REPORT TO COUNCIL
SUBJECT
Title
Action on Resolution for an Exception to the 180 Day Waiting Period To Appoint Retired Annuitants 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
Steven Hance, Silicon Valley Power
Steven Hance was a Senior Electric Division Manager in the Silicon Valley Power Department (SVP). He retired on December 31, 2022. He was responsible for resource procurement, wholesale trading functions, joint power agency coordination and generation scheduling, stakeholder actions in the California Independent System Operator markets and bi-lateral market procurement along with related compliance and reporting activities.
The City would like to rehire Mr. Hance to provide continued assistance with multi-year and multi-stakeholder projects that stand in mid-process. Tasking new staff would be disadvantageous as some activities have an extremely steep learning curve and depth of knowledge required where there is no opportunity to delay. In particular, Steve would continue to provide institutional knowledge during negotiations with PG&E and the CAISO in relation to SVP’s interest in the Grizzly Hydroelectric Power plant and the resulting impact of the Camp Fire on the generation tie-lines, needed repairs, and any outlays from the Fire Trust. Steve has also been instrumental in supporting SVP’s position and interest in the current PG&E natural gas rate case which impacts SVP and NCPA generation units, and would continue to provide important perspective and data analysis until the rate case is finalized.
PG&E also recently announced its intention to spin off all non-nuclear generation into a subsidy named Pacific Generation. This would impact the Grizzly Power Plant and related FERC settlement agreements for which Steve is the leading subject matter expert. His support in assisting SVP to understand the impact of this PG&E action on SVP’s rights and property will be invaluable and his mentorship will support SVP’s future needs.
Steve’s vast institutional knowledge and extensive experience will greatly assist City staff with pending projects, the Department’s Strategic Plan, and projects to meet expected load growth resource requirements.
Mr. Hance will be appointed to a limited term as-needed temporary employee position as a retired annuitant. This position will perform duties comparable to the Senior Division Manager classification. This position will provide critical understanding and strategic consultation to the City as it relates to generation, natural gas wholesale rates, and other CAISO market impacts. Mr. Hance will work with the team to ensure the utility is prepared to meet the forecasted resource procurement needs resulting from load growth and stay compliant with state regulations. He will not participate in day-to-day administrative oversight of his former position. This employment arrangement would fall under the type 1 appointment (Govt. Code Section 21224) as Mr. Hance will be providing services to assist with limited duration special projects.
Ann Hatcher, Silicon Valley Power
Ann Hatcher was the Assistant Director-Resource Planning and Customer Engagement (Job Code 021) at SVP, and was responsible for resource procurement, customer interface, joint power agency coordination, integrated resource planning, resource scheduling, SVP’s various energy efficiency and rebate programs, stakeholder actions in the California Independent System Operator markets and bi-lateral market procurement along with related compliance and reporting activities.
Ann retired on December 22, 2022, and the City would like to rehire Ann to provide continued assistance with multi-year and multi-stakeholder projects that stand in mid-process. Tasking new staff would be disadvantageous as some activities have an extremely steep learning curve and depth of knowledge required where there is no opportunity to delay. Ann would continue to provide input during Renewable Generation CEQA process, help assist with the CEC’s Integrate Resource Plan and assist with SVP carbon free procurement to meet the City’s Climate Action Plan goals and the State of California greenhouse gas reduction goals.
Ann’s vast institutional knowledge and extensive experience will greatly assist City staff with the above projects and the challenges to meet resource requirements with the observed and expected load growth SVP is experiencing.
Ms. Hatcher will be appointed to a limited term as-needed temporary employee position as a retired annuitant. This position will perform duties comparable to the Assistant Director Resource Planning and Customer Engagement classification. This position will provide critical understanding and strategic consultation to the City as it relates to resource procurement to meet the City’s Climate Action Plan objectives, the CEC Integrated Resource Planning obligations and ongoing renewable generation CEQA process. Ms. Hatcher will work with the team to ensure the utility is prepared to meet the forecasted resource procurement needs resulting from load growth and stay compliant with state regulations. She will not participate in day-to-day administrative oversight of his former position. This employment arrangement would fall under the type 1 appointment (Govt. Code Section 21224) as Ms. Hatcher will be providing services to assist with limited duration special projects.
Scott Anderson, Silicon Valley Power
Mr. Anderson was a Principal Electric Estimator at SVP and retired on December 22, 2022. He will be rehired to assist with critical development project backlog, EV Charger electric service design guidelines, essential updates to SVP’s Underground Electric Standards (UG1000), and various special projects. Additionally, Mr. Anderson will continue efforts on the Capital Improvement Project to upgrade the Automated Utility Design (AUD) Software and Database to increase accuracy of the cost estimating engine for developer contributions. This employment arrangement would fall under the type 1 appointment (Govt. Code Section 21224) as Mr. Anderson will assist with limited duration special projects.
Kurt Anthony Tomaro
The SVP Operations Control group works 365 days a year, 24 hours a day. Typically, there are six Electric & Water System Operators (EWSO) and one Senior EWSO to staff this requirement. SVP had three of the six EWSO’s leave employment before the end of 2022. SVP has hired three replacements. Before an EWSO can work on shift by themselves, it is required that they have a North American Electric Reliability Corporation (NERC) certification to operate SVP’s high voltage systems, and a D1 certificate from the California Water Board to operate the City’s water system. It can take up to a year to train and certify a replacement for a retiring EWSO.
Because of the lengthy period required to certify and train new EWSO’s, the department needs to retain the services of two retired EWSO’s to fill shifts left vacant by their departure. Their experience and presence are crucial in bringing our new EWSO’s up to proficiency and maintaining the high level of safety required by the Operations Division.
Kurt Tomaro was an Electric & Water System Operator (Job Code 390R) at SVP. He retired on December 27, 2022. Mr. Tomaro is certified to operate and control the City of Santa Clara’s Electric and Water control systems. It is SVP’s desire to rehire him to assist with filling vacant shifts and helping to train and mentor our new EWSO’s while on shift on a part-time basis.
He will perform duties identical to the Electric & Water System Operator (Job Code 390R) classification. This employment arrangement would fall under the type 1 appointment (Govt. Code Section 21224) as Mr. Tomaro will be providing his specialized skills for a limited duration.
The recommended actions would certify the appointments of Mr. Hance, Ms. Hatcher, Mr. Anderson and Mr. Tomaro 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. The individuals 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, the individuals will be paid at the hourly rate for as-needed consultant position as follows:
|
Retired Annuitant |
Hourly Rate of Pay |
Fiscal Year Maximum Amount |
|
Steven Hance |
$128.93 |
$123,773 |
|
Ann Hatcher |
$144.56 |
$138,777 |
|
Scott Anderson |
$92.37 |
$88,675 |
|
Kurt Tomaro |
$102.85 |
$98,736 |
Retirees also do not receive any benefits. Sufficient appropriations are available in the Silicon Valley Power Department to fund these interim positions.
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 four Retired Annuitants to provide valuable service to the City post-retirement but within the first 180 days of their retirements; 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 Four Retired Annuitants 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 (S. Hance)
2. Hance, Steven - Offer Letter
3. Resolution for an Exception to the 180 Day Waiting Period To Appoint A Retired Annuitant To Serve as Temporary Extra Help (A. Hatcher)
4. Hatcher, Ann - Offer Letter
5. Resolution for an Exception to the 180 Day Waiting Period To Appoint A Retired Annuitant To Serve as Temporary Extra Help (S. Anderson)
6. Anderson, Scott - Offer Letter
7. Resolution for an Exception to the 180 Day Waiting Period To Appoint A Retired Annuitant To Serve as Temporary Extra Help (K. Tomaro)
8. Tomaro, Kurt - Offer Letter