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Staff Report - 180 Day Wait Period - Sean Rose PREPARED BY: Salina Flores Human Resources Director Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 08/15/2023 ITEM NO: 10 DATE: August 7, 2023 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Adopt a Resolution for the California Public Employees’ Retirement System Retirement Plan to Waive the 180-Day Retiree Rehire Wait Period and to Appoint Sean Rose as the Temporary Capital Projects Manager in the Parks and Public Works Department RECOMMENDATION: Adopt a Resolution for the California Public Employees’ Retirement System Retirement Plan to waive the 180-day retiree rehire wait period and to appoint Sean Rose as the temporary Capital Projects Manager in the Parks and Public Works Department (Attachment 1). BACKGROUND: The Town has an existing agreement with the California Public Employees’ Retirement System (CalPERS) to provide its retirement program to employees. The CalPERS retirement program is governed by Public Employees’ Retirement Law (PERL). PERL contains the rules and regulations that a contracting agency must adhere to related to the hire of a CalPERS retiree, referred to as a retired annuitant. PERL requires that a non-safety retired annuitant may not work for a CalPERS contracting agency unless the retired annuitant has been retired for at least 180 days (Gov. Code section 7522.56). In lieu of the 180-day wait period, an agency’s governing body may approve a resolution to waive the 180 days. PERL also requires that if a retired annuitant will be rehired into a vacant position while a recruitment for a permanent replacement is taking place, the governing body must approve a resolution appointing the retired annuitant as an interim employee [Gov. Code section 21224]. PAGE 2 OF 3 SUBJECT: Adopt a Resolution for the California Public Employees’ Retirement System Retirement Plan to Waive the 180-Day Retiree Rehire Wait Period and to Appoint Sean Rose as the Temporary Capital Projects Manager. DATE: August 7, 2023 DISCUSSION: Sean Rose is currently employed as Public Works Director/Town Engineer with the Town of Woodside and has been tentatively selected for the position of Capital Projects Manager for the Parks and Public Works Department. Recently, Mr. Rose provided his notice of intent to retire from The Town of Woodside with his last day of work to occur on September 4, 2023, resulting in a CalPERS retirement effective date of September 5, 2023. The Town opened the recruitment for the temporary unbenefited position of Capital Projects Manager on May 22, 2023. The recruitment timeline to hire this position typically spans approximately three months. The Capital Projects Manager role is essential to the continued operation of the Parks and Public Works Department and its engineering functions. The incumbent is responsible for assisting in the design and construction management of two critical projects and overall administration of the Town’s Capital Improvement Program (CIP): The Los Gatos Creek Trail Highway 9 Connector Project (CIP No. 832-4505) and the Highway 17 Bicycle and Pedestrian Bridge (CIP No. 818-0803). To allow for this continued critical function, staff is requesting that Sean Rose be appointed to the position of temporary Capital Projects Manager as soon as possible following the effective date of his retirement with the Town of Woodside. In order for that to happen, the Town Council must adopt a CalPERS resolution, declaring the Town’s intent to appoint Mr. Rose to the position prior to the required 180-day wait period, and the resolution must subsequently be submitted to CalPERS. A retired annuitant may be appointed to an interim position provided that there is an open recruitment to fill the vacancy. The rate of pay may not be less than or more than the current approved salary range for the vacant position. Also, a retired annuitant may not work more than 960 hours in a CalPERS fiscal year. The CalPERS fiscal year begins July 1 and ends on June 30. The tentative first day of employment as a retired annuitant for Mr. Rose is September 6, 2023, subject to Town Council’s approval of the executed resolution and its subsequent submittal to CalPERS. CONCLUSION: Staff recommends that the Town Council adopt a Resolution to waive the CalPERS 180-day wait period and appoint Sean Rose to the temporary Capital Projects Manager position. PAGE 3 OF 3 SUBJECT: Adopt a Resolution for the California Public Employees’ Retirement System Retirement Plan to Waive the 180-Day Retiree Rehire Wait Period and to Appoint Sean Rose as the Temporary Capital Projects Manager. DATE: August 7, 2023 FISCAL IMPACT: It is anticipated that the hire of a retired annuitant will result in overall budget savings, given that the retiree will not be eligible for benefits related to permanent employment except the Town’s contribution to Medicare. This position is funded through the Parks and Public Works Department, and the salary is paid via reimbursement from project related funds. There is no impact to the General Fund from this position and the cost of staff time is already accounted for in the project budget. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachments: 1. CalPERS Resolution for a 180-Day Wait Period Exception and Appointment of Sean Rose as the Temporary Projects Capital Manager 2. Conditional Offer for Sean Rose