07 Staff Report - 180 Day Wait Period - Paul Horvat with attachments
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: 9/5/2023 ITEM NO: 7
DATE: August 25, 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 Paul Horvat as the Temporary Emergency Services Coordinator in the
Town Manager’s Office
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 Paul Horvat as the temporary
Emergency Services Coordinator in the Town Manager’s Office (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.
There are two types of retired annuitant appointments for public agency employers: extra help
and vacant (interim) position. This appointment to the temporary Emergency Services
Coordinator position is classified as an extra help retired annuitant appointment. A retired
annuitant may be appointed as an extra help retired annuitant if hired to perform work of
limited duration, such as elimination of a backlog, special project work, or to perform work
exceeding regular staff work. 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
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 Paul Horvat as the Temporary Emergency Services Coordinator DATE: August 25, 2023
BACKGROUND (continued):
than 960 hours in a CalPERS fiscal year. The CalPERS fiscal year begins on July 1 and ends on
June 30.
DISCUSSION:
The Town opened the recruitment for the temporary, unbenefited position of Emergency
Services Coordinator on February 6, 2023. Mr. Horvat applied for the position and participated
in the interview process, resulting in his selection by the Town Manager’s Office as the
preferred candidate.
Mr. Horvat is currently employed as Emergency Services Manager with the City of Santa Cruz,
and has expressed his intent to retire from the City. His last day of work will occur on
September 19, 2023, resulting in a CalPERS retirement effective date of September 20, 2023.
The Emergency Services Coordinator role is essential to the Town’s emergency operations
functions. The position is responsible for the planning, development, and implementation of
disaster response and training activities for the Town of Los Gatos, including staff training and
community education programs. The position is also responsible for maintaining oversight and
coordination of the Town's Emergency Operations Center (EOC), and assists in the development
of emergency response procedures, facilitates training for EOC staff and volunteers, and
complies with State and federal emergency response and disaster mitigation programs. The
Emergency Services Coordinator also functions as a liaison between the Town and other
governmental agencies.
To allow for this continued critical function, staff is requesting that Paul Horvat be appointed to
the position of temporary Emergency Services Coordinator as soon as possible, on or after the
effective date of his retirement with the City of Santa Cruz. In order for this to happen, Town
staff must submit the resolution certification package and a copy of the retiree’s employment
agreement or personnel appointment document to CalPERS before Mr. Horvat’s first day of
employment, which is tentatively set for September 20, 2023.
CONCLUSION:
Staff recommends that the Town Council adopt a Resolution to waive the CalPERS 180-day wait
period and appoint Paul Horvat to the temporary Emergency Services Coordinator 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 Paul Horvat as the Temporary Emergency Services Coordinator DATE: August 25, 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 Town Manager’s Office, and the cost of staff time is already
accounted for in the adopted 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 Paul Horvat as
the Temporary Emergency Services Coordinator
2. Conditional Offer for Paul Horvat
This Page Intentionally Left Blank
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
Gov. Code sections 7522.56 & 21224
September 5, 2023
WHEREAS, in compliance with Government (Gov.) Code section 7522.56 of the
Public Employees’ Retirement Law, the Town Council must provide CalPERS this
certification resolution when hiring a retiree before 180 days has passed since their
retirement date; and
WHEREAS, Paul Horvat will retire from the City of Santa Cruz in the position of Emergency
Services Manager effective September 20, 2023; and
WHEREAS, Gov. Code section 7522.56 requires that post-retirement employment
commence no earlier than 180 days after the retirement date, which is March 18, 2024 without
this certification resolution; and
WHEREAS, Gov. 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 Town Council, the Town of Los Gatos and Paul Horvat certify that
Pau Horvat has not and will not receive a Golden Handshake or any other retirement-
related incentive; and
WHEREAS, the Town Council hereby appoints Paul Horvat as an extra help retired
annuitant to perform the duties of the Emergency Services Coordinator for the Town of Los
Gatos under Gov. Code section 21224, effective September 20, 2023; and
WHEREAS, the entire employment agreement, contract or appointment document
between Paul Horvat and the Town of Los Gatos has been reviewed by this body and is attached
herein; 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 for all CalPERS
employers; and
WHEREAS, the compensation paid to retirees cannot exceed the maximum monthly base
salary paid to other employees performing comparable duties, divided by 173.333 to equal the
hourly rate; and Page 1 of 2
ATTACHMENT 1
WHEREAS, the maximum monthly base salary for this position is $20,631.47 and the
hourly equivalent is $119.03; and
WHEREAS, the hourly rate paid to Paul Horvat will be $60.00; and
WHEREAS, Paul Horvat has not and will not receive any other benefit, incentive,
compensation in lieu of benefit or other form of compensation in addition to this hourly pay
rate; and
THEREFORE, BE IT RESOLVED THAT the Town Council hereby certifies the nature of the
appointment of Paul Horvat as described herein and detailed in the attached employment
appointment document and that this appointment is necessary to fill the critically needed
position of Emergency Services Coordinator for the Town of Los Gatos by September 20, 2023
because the Emergency Services Coordinator role is essential to the implementation of the
Town’s disaster response program and the Emergency Operations Center function.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the 5th day of September, 2023, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE:
Page 2 of 2
July 21, 2023
Paul Horvat
ClvicCENTBI. 110 E. �N SrRfEr Los GAim, CA 95030 www.losgatosca.gov
Sent via email:
Dear Paul,
114 heather Court
Santa Cruz, CA 95065
TOWN OF Los GATOS Human
Resources Department (408) 399·5718 FAX: ( 408)395-8640
Congratulations! The Town of Los Gatos is pleased to e,ctend to you a conditional offer of employment for the position of Emergency Services Coordinator(Temporary/Hourly) with the Town Manager's Office.
Employment Status: At will, un-benefited, temporary/hourly
Employment Term: Two (2) years
Start Date: TBD
Hourly Pay Rate: $60.00 per hour
Job Title: Emergency Services Coordinator (Temporary/hourly)
Supervisor: Katy Nomura, Assistant Town Manager
Department: Town Manager's Office
This offer of employment is subject to the following:
1.Background Check: You must pass a Department of Justice Criminal Records Check according to
guidelines established by the Town of Los Gatos. Fingerprinting is administered by the Los
Gatos Saratoga Recreation Center. You must complete a verification of education and employment
survey. A reference check will also be conducted with the references provided.
2.CalPERS Requirements: If you plan to retire before your tenure in this position, then all CalPERS
ATTACHMENT 2
requirements must be met prior to your start date. This includes the Town's submission of a
request for an exception to the CalPERS 180-day waiting period requirement via a Council
resolution submitted to CalPERS. The timing of the resolution submission and your start date
will be based on the following:
A.If you are retiring at or higher than your normal retirement age, then the Council
resolution can be submitted following your successful passage of the background
check, and your start date can be any time following submission, on a date
agreed upon by you and the Town.
B.If you retire under your highest normal retirement age, then you will be subject to
CalPERS' bona fide separation requirements: the Council resolution cannot be
submitted prior to your retirement date, and your start date must be at least 60
days following your retirement date.
Conditional Offer of Employment -Paul Horvat
Emergency Services Coordinator (Temporary/Hourly)
Page2 o/2
Please also be aware of the following information related to your employment as an
hourly/unbenefited employee:
•You are limited to working no more than 1,000 hours in a fiscal year. If you qualify as a
retired annuitant, you are limited to working no more than 960 hours in a fiscal year. The
Town's fiscal year runs from July 1 through June 30.
•Your employment may be terminated at any time and is not subject to appeal. • You are a
non-exempt employee and therefore covered by the provisions of the Fair Labor Standards Act
(FLSA). For FLSA overtime purposes, your work period begins at midnight on Sunday and ends
seven consecutive days later at 11:59 p.m. on Saturday.
During your first week of employment, you will participate in an orientation session with a
member of the Human Resources staff. At your orientation with Human Resources, you will be
required to provide documents that establish both identity and employment eligibility to work in
the United States, as required by the U.S. Department of Homeland Security Form 1-9. More
information about this process and your orientation will be emailed to you once the background
process has been successfully completed.
To accept this conditional offer of emplbyment, please sign below and return the signed copy of
this letter via email or in person no later than 5:00 p.m. on Wednesday, July 26, 2023. If you
have any questions, please contact Mary Blekh, Human Resources Technician, at (408) 399-5739
or mblekh@losgatosca.gov.
We are excited to welcome you to the Town of Los Gatos community and the Town Manager's
Office. We are confident that you will enjoy the exceptional employees, beautiful community,
and challenges of this position!
Sincerely,
ATTACHMENT 2
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