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
Philip Waterhouse was a Senior Electric Meter Technician (Job Code 729) in the Electric Department. During his tenure, he helped develop the Electric Meter Shop into the successful organization it is today to work with the Advanced Metering Infrastructure (AMI), utility service delivery EUSERC standards, and periodic customer switchgear inspection plans. He retired with the City on December 23, 2021, and the City would like to rehire him to assist with complex meter installation projects for customers and for the Advance Metering Initiative on a part-time basis.
Mr. Waterhouse’s vast institutional knowledge and extensive experience with all varieties of SVP used meters, along with the interface to the billing requirements, will greatly assist City staff with the Advanced Metering initiative, maintenance of customer meters, maintenance of customer switchgear, and projects to meet expected new development. He will also be available to mentor newer employees.
Mr. Waterhouse 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 Electric Meter Technician (Job Code 729) classification. This position will provide critical planning, process development and physical project completion as the City recruits to fill a vacancy in the Electric Meter Shop. 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. Waterhouse will be providing technical assistance while the Electric Meter Technician vacancy is recruited.
Mark Balderston was an Electric Utility Electrician Technician (Job Code 890) in the Electric Department. He retired with the City on December 18, 2021, and the City would like to rehire him to assist with critical relay projects, workload backlog, and training on a part-time basis. Mr. Balderston worked as a crew lead and provided essential support in the construction and maintenance of various substation groups.
Mr. Balderston’s extensive institutional knowledge and experience is essential to assist with critical relay projects. Projects include NERC compliance work and testing for a bus differential upgrade and various relay replacements on the Silicon Valley Power network.
Mr. Balderston will be appointed to a limited term as-needed temporary employee position as a retired annuitant. This position will perform duties comparable to the Electric Utility Electrician Technician (Job Code 890) classification. This position will provide critical support to complex protective relay work and training for Silicon Valley Power employees. This employment arrangement would fall under the type 1 appointment (Govt. Code Section 21224) as Mr. Balderston will be providing support to special projects and assist with the work backlog.
The recommended action would certify that the appointment of Mr. Waterhouse and Mr. Balderston 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. Waterhouse and Mr. Balderston 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. Waterhouse will be paid at the hourly rate for as-needed consultant position of $91.18. Mr. Balderston will be paid at the hourly rate for as-needed consultant position of $84.76. Retirees also do not receive any benefits. Sufficient appropriations are available in the Electric Utility 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 $87,533 for Mr. Waterhouse and $81,370 for Mr. Balderston.
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 Senior Electric Meter Technician and Electric Utility Electrician Technician 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 Two 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: Deanna J. Santana, 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 (P. Waterhouse)
2. Philip Waterhouse Offer Letter
3. Resolution for an Exception to the 180 Day Waiting Period To Appoint A Retired Annuitant To Serve as Temporary Extra Help (M. Balderston)
4. Mark Balderston Offer Letter