08 Staff Report.180 Day Wait Period Amended Resolution - Paul Horvat
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: 9/19/2023 ITEM NO: 9
DATE: September 14, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Rescind Resolution 2023-047 and 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:
Rescind Resolution 2023-047 and 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.
On September 5, 2023, the Town Council adopted a resolution 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.
PAGE 2 OF 2 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: September 14, 2023
DISCUSSION:
Upon submitting the documentation to CalPERS, CalPERS recommended clarifying in the
resolution that Mr. Horvat’s duties would most closely align with a subset of the Community
Outreach Coordinator duties and to use the Community Outreach Coordinator pay rates for the
comparable maximum base salary. The amended resolution reflects these changes.
CONCLUSION:
Due to the clarification requested, staff recommends that the Town Council rescind the prior
Resolution 2023-047 and adopt an amended resolution to waive the CalPERS 180-day wait
period and appoint Paul Horvat as the temporary Emergency Services Coordinator in the Town
Manager’s Office.
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 Amended Resolution for a 180-Day Wait Period Exception and Appointment of Paul
Horvat as the Temporary Emergency Services Coordinator
2. Conditional Offer Letter
3. Final Offer Letter