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APPROVE HIRING ROBERT HAYES AS A RETIRED ANNUITANT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Authorizing the City Manager to employ retired annuitant Robert Hayes in a temporary part-time position as a Senior Building Inspector; and
2. Authorizing the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the resolution.
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Summary
Assembly Bill 340, the Public Employee Pension Reform Act of 2013 (“PEPRA”), went into effect on January 1, 2013. PEPRA includes California Government Code (CGC) Section 7522.56, which requires public agency retirees to wait 180 days after retirement before returning to work for any public agency. This waiting period can be waived if the City Council determines it is critical to fill a specific position. It is recommended that Council adopt the proposed resolution to document the criticality of the work and necessity of retired annuitant services to complete work for the public.
DISCUSSION
Background
Temporary staffing solutions, such as staffing agencies, are utilized by many different departments within the City of Stockton. However, the utilization of temporary staffing agencies does not always provide qualified candidates for critical and highly specialized positions such as Senior Building Inspector.
Long-time employee, Robert Hayes, retired as the City’s only Senior Building Inspector on November 2, 2018. While preparing to conduct the recruitment for a new Senior Building Inspector, staff researched the options to maintain much-needed capacity until new inspection staff is hired.
The Senior Building Inspector position is critical to the Building and Life Safety Division because it is the most experienced and knowledgeable of all the inspector positions. The senior inspector can inspect any project type and is typically assigned to large development projects (e.g., Amazon) that require seasoned professionals to manage the frequent inspection requests. These requests include the ability to perform the most complex inspections such as building structure, electrical systems, and fire-rated construction. The Senior Building Inspector is also critical to the development of other inspectors through their training and mentoring. Additionally, the senior inspector is responsible for inspection assignments and route planning for the inspection team to ensure that all customers can be served daily.
Robert Hayes, as the Senior Building Inspector, was responsible for managing the inspections for all large logistics development projects such as the new Amazon warehouse building, Norcal Logistics Center, and the Anchor Village veteran’s housing project; amongst others. Managing the inspections includes ensuring that inspections can be performed on a sometimes-daily basis, coordinating overtime inspections as necessary to keep the project on schedule, and monitoring the project schedule to ensure projects are on track for final occupancy.
Present Situation
The City is currently a member of the California Public Employees' Retirement System (CalPERS) and therefore must follow all applicable California codes therein, specifically CGC §7522.56 [Conditions and Limitations on Service After Retirement]. Per CGC §7522.56
(c) A person who retires from a public employer may serve without reinstatement from retirement or loss or interruption of benefits provided by the retirement system upon appointment by the appointing power of a public employer either during an emergency to prevent stoppage of public business or because the retired person has skills needed to perform work of limited duration.
(d) Appointments of the person authorized under this section shall not exceed a total for all employers in that public retirement system of 960 hours or other equivalent limit, in a calendar or fiscal year, depending on the administrator of the system. The rate of pay for the employment shall not be less than the minimum, nor exceed the maximum, paid by the employer to other employees performing comparable duties, divided by 173.333 to equal an hourly rate. A retired person whose employment without reinstatement is authorized by this section shall acquire no service credit or retirement rights under this section with respect to the employment unless he or she reinstates from retirement.
(e) (1) Notwithstanding subdivision (c), any retired person shall not be eligible to serve or be employed by a public employer if, during the 12month period prior to an appointment described in this section, the retired person received any unemployment insurance compensation arising out of prior employment subject to this section with a public employer. A retiree shall certify in writing to the employer upon accepting an offer of employment that he or she is in compliance with this requirement.
(f)(1), “A retired person shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement unless he or she meets one of the following conditions: The employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting. The appointment may not be placed on a consent calendar.”
(g) A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement and subdivision (f) shall not apply.
To this end, Robert Hayes has not and will not receive unemployment insurance compensation nor has he received or will receive a retirement incentive. Therefore, all requirements of government code 7522.56 have been met.
Robert Hayes retired as the Senior Building Inspector from the City of Stockton on November 2, 2018, after 14 years of service. Through his tenure with the City, Mr. Hayes has developed an extensive knowledge of past practices, City of Stockton Codes, Building Codes, and their applications specific to the City of Stockton. He also serves as the only senior building inspector for the City and therefore provides experienced training to his less tenured colleagues. His knowledge uniquely qualifies him to be the Senior Building Inspector on a part-time basis. Robert’s knowledge of complex building codes, their application to City projects and ability to train newer staff is especially helpful to address the complexities of the type of workload of the Building and Life Safety Division of Community Development; such as the development of new complex logistical warehousing facilities.
If approved by City Council, the City will seek approval from CalPERS to employ Hayes, as a retired annuitant, while actively recruiting to fill the position permanently. CalPERS requires a resolution from the governing entity, the employment agreement, publicly available salary schedule, and status of the recruitment before employment begins. The Personnel Action Form (CS-23) reflects Hayes conditions of employment (Exhibit 1 to the Resolution). As required by the California Government Code, all requirements of §7522.56 will be met.
FINANCIAL SUMMARY
The employment shall be limited to 960 hours per fiscal year and compensation paid cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties. The maximum base salary for this position is $6,612.81, and the hourly equivalent is $38.15; which will be paid to Mr. Hayes if approved.
There is sufficient budget from salary savings in the FY 2018-19 Development Services Fund Building Division account (048-1830-530) to cover the total cost of a retired annuitant at the $38.15 hourly rate for up to a maximum of 960 hours. The total potential cost is estimated at $52,000 for salary and all related required position costs. No other incentive, compensation in lieu of benefit, or another form of compensation in addition to this hourly pay rate will be granted to the employee.