HomeMy WebLinkAboutStaff Report 5.E 04/01/2019LU�t
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DATE: April 1, 2019
TO:
FROM:
Honorable Mayor and Members of the City Council through City Manager
Eric W. Danly, City Attorney
SUBJECT: Adoption of 180 -Day Wait Period Exception Resolution Required by CalPERS
for Appointment of Cynthia Kasten as the City's Interim Human Resources
Director
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution for 180 -Day Wait Period
Exception as required by CalPERS for appointment of Cynthia Kasten as the City's Interim
Human Resources Director
BACKGROUND
CalPERS, which administers the Public Employee Retirement Law ("PERL"), requires that
legislative bodies appointing certain CalPERS annuitants (retirees) to interim positions take
action to certify that the appointment is consistent with the PERL requirements for hiring
annuitants. For appointment of annuitants to vacant, unique management positions during a
recruitment, Sections 7522.56 and 21221(h) of the-PERL require an open appointment to fill the
vacancy, and limit annuitants to being appointed only once for the vacancy.
DISCUSSION
Former Human Resources Director Amy Reeve resigned her position with the City of Petaluma
effective March 14, 2019 to accept the position of the City of Santa Rosa Human Resources
Director, The City's Human Resources Director position has been vacant since Ms. Reeve's
departure. The City has numerous pending Human Resources matters, including bargaining and
other matters, and the City's new City Manager, Peggy Flynn, only recently assumed her duties
effective February 25. It is essential that the City retain the services of an experienced Human
Resources Director to carry on City Human Resource functions during the recruitment for a
permanent successor to Ms. Reeve. Cynthia Kasten, who has agreed to serve as the City's
Interim Human Resources Director, retired from the position of Human Resources Director for
the City of Napa in 2010, and brings an extensive background in municipal human resources to
support Petaluma human resources functions during the recruitment for a new Human Resources
Director.
FINANCIAL IMPACTS
In accordance with the employment agreement attached as Exhibit A to the resolution included
with this report, Ms. Kasten will work 35 hours per week from her start date on April 2, 2019
through a 3 to 4 month period expiring no later than August 1, 2019 Her hourly rate will be
$78.06 per hour. Accordingly, the full cost to the City of the temporary appointment would be
approximately $43,713.60, excluding reimbursed expenses such as mileage.
ATTACHMENTS
Attachment 1, Resolution and employment agreement.
Resolution No. 2019 -XXX N.C.S.
Resolution of the City Council of the City of Petaluma for
180 -Day Wait Period Exception
(Government Code Sections 7522.56 and 21221(h))
WHEREAS, in compliance with Government Code section 7522.56 the City of Petaluma must
provide Ca1PERS this certification resolution when hiring a retiree before 180 days has passed since his
or her retirement date; and
WHEREAS, Cynthia Kasten, Ca1PERS ID 7994215724, retired from the City of Napa in the
position of Human Resources Director, effective September 1, 2010; and
WHEREAS, Government Code section 7522.56 requires that post-retirement employment
commence no earlier than 180 days after the retirement date, which is (date of 181" day after retirement)
without this certification resolution; and
WHEREAS, Government Code section 7522.56 provides that this exception to the 180 -day wait
period shall not apply if the retiree accepts any retirement -related incentive; and
WHEREAS, the City Council of the City of Petaluma and Cynthia Kasten certify.that Cynthia
Kasten has not and will not receive a Golden Handshake or any other retirement -related incentive; and
WHEREAS, the Petaluma City Council hereby appoints Cynthia Kasten as an interim
appointment retired annuitant to the vacant position of Human Resources Director for the City of
Petaluma under Government Code section 21221(h), effective April 2, 2019; and
WHEREAS, an appointment under Government Code section 21221(h) requires an active,
publicly posted recruitment for a permanent replacement; and
WHEREAS, the current status of this recruitment is open and active; and
WHEREAS, this section 21221(h) appointment shall only be made once and therefore will end
on August 1, 2019; and
WHEREAS, the entire employment agreement, contract or appointment document between
Cynthia Kasten and the the City of Petaluma has been reviewed by this body and is attached and made a
part of this resolution as Exhibit A; and
WHEREAS, no matters, issues, terms or conditions related to this employment and appointment
have been or will be placed on a consent calendar; and
WHEREAS, the employment shall be limited to 960 hours per fiscal year; and
WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the
maximum monthly base salary paid to other employees performing comparable duties, divided by
173.333 to equal the hourly rate; and
Resolution No. 2019 -XXX N.C.S. Page 1
WHEREAS, the maximum base salary for this position is $162,355.23 and the hourly equivalent
is $78.06 per hour, and the minimum base salary for this position is $125,107.42 and the hourly
equivalent is $60.15 per hour; and
WHEREAS, the hourly rate paid to Cynthia Kasten will be $78.06 per hour;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PETALUMA, as follows:
1. The City Council hereby declares the above recitals to be true and correct and incorporated
into this resolution as findings of the City Council.
2. The City Council hereby certifies the nature of the employment of Cynthia Kasten as
described herein and detailed in the attached employment agreement and that this
appointment is necessary to fill the critically needed position of Human Resources Director
for the City of Petaluma by April 2. 2019, because there are numerous important pending
human resources matters requiring the attention of a Human Resources Director to assist the
City's newly -appointed City Manager, including bargaining issues and other pending human
resource matters.
Attachments: Exhibit A, Employment Agreement
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the 15' day of April, 2019, form:
by the following vote:
City Attorney
AYES: Mayor Barrett, Vice Mayor McDonnell, Council Members Healy, Kearney, King,
Miller and Fischer
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
Mayor
Resolution No, 2019 -XXX N.C.S. Page 2
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POST OFFICE, Box E,1
$ $ PETALUMA, CA 94953-0061
Term Barrelt March 7, 2019
hla}nr •
D'Lyndn Fischer
' Mike Henly Cyndi hasten
Gabe Kearney
Dare King 308 Ashlar Drive
KeVhi n4enonne!( Napa, CA 94558
Knihy Miller
L`ouncihnomhers n �•fffiii"`""��`
Dear Ms, sten:
On behalf of the City of Petaluma, t am pleased to offer you this limited duration
retired annuitant assignment of Interim Human Resources Director in the Human
Resources Department, Your start date will be Monday,. April 1, 2019, This
assignment is expected to last between three and four months but will end no later
than August 1, 2019, Your salary will be $78.06 per !tour. You will be assigned
to a 35 -horn' work week. In addition, the City will pay you a daily mileage
allowance of $32 for every day that you.retluu home fibin the work assignluent,
This is based on the 2019 IRS rate of $,58 per mile, multiplied by 54.4 miles,
rounded up to the nearest dollar, and represents the round-trip distance fi-om 308
Ashlar Drive in Napa to the City of Petaluma City Hall, This position is exempt,
and therefore is not eligible for overtime under Fair Labor Standards Act
regulations,
Retired annuitants are not eligible for fringe benefits, Your employment status as
a retired annuitant is at -will and is not subject to the provisions of the Personnel
System Rules and Regulations, nor is it covered by a bargaining unit agreement
with the City of Petaluma. As an at -will employee, you have no guarantee or
expectation of continued employment. At the City's sole discretion, ibis
appointment may be terminated by die City at any time without prior notice. In
such event, you will be .entitled to no compensation beyond that earned prior to
the teunination becoming effective. Final determination on any aspect of your
employment will come directly from me, as City Manager,
California law prohibits appointment of a retired annuitant by a Ca1PERS
employer if, during the 12 -month period before an appointment, you r.cceived
unemployment insurance compensation for prior retired annuitant employment
Hinnall Resoul. -V with any Ca1PERS employer, By accepting employment, your signature on this
l t„such S11.001letter also serves as certification that you comply with this requirement.
Mahon, CA 94952
Phone (707),775-4534 As a retired annuitant, if is your responsibility to ensure your employment
Par (707) 927-1911 complies with California retirement law during the entire course of your
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h,n„a,a�awacesQ employment. A Guide to CALPERS Employment After Retirement dated
cl.perala,aa.aa.,,.c Febiva►y 2019 describes the potential consequences if you are found to be in
violation of California retirement law.
Rlsk diauagemenl DhIlslon
Phone (707) 776.3780
Pas (707) 206-6035
Page 1 of 2
"Mandatory reinstatement from retirement, retroactive to the date the unlawful
employment occurred. If reinstated, you will be required to reimburse CaIPHRS the
amount of retirement allowaiiec you received during the period of unlawful employment,
In addition, through Your employer, you will pay member contributions plus ,interest
owed retroactive to your reinstatement date. Reinstatement could n . iake you ineligible for
any health benefit entitlement,
ement, Golden Handshake service credit, or reciprocity benefit
you may have fron) your current retirement."
As an annuitant, you arc encouraged to consult with CaIPERS -representatives and/or legal
counsel or other advisers as appropriate to ensure the proposed eniployihejit complies with
applicable retirement laws and regulations.
The City of Petaluma does not participate in Social Security; however, you will be subject to the
Medicare premium of 1,45%.
You will be required to show specified documentation as proof of identity and proof of
authorization to work in the United States. Please refer to the i-9 form in your new hire
paperwork for'flist of acceptable documents,
'Please signify your acceptance of this of -Ter of employment by signing and returning this letter to
the Human Resources Office. I look forward to working with yowl
Since :el
Peggy Flynn
City Manager
CONDITION OF ACCEPTANCE OF TIMS E, MPLOYME NT
In view of 'an annuitant's responsibility to comply with applicable retirement laws and '
regulations and to the maxinivaii extent permitted by law, 1, for myself and my heirs and assigns
fully release mid discharge and agree to indenwffy, defend and hold harmless the City and its
officials, officers, employees, agents and volunteers concernhig any and all liability arising from
any non-compliance of my refixed annuitant employment with applicable retirement laws or
regulations.
As evidonce'd by my signature, I do fully accept the terms and conditions of employment, as
outlined above, with the City of Petaluma and certify that I have not received unemployment
insurance compensation during the last twelve-month period for prior retired annuitant
employment with any CalPERS employer,
t
Cyxidi,kas-ten Date
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