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STAFF REPORT
AGENDA ITEM: Resolution Authorizing the City Manager to Amend the Employment Terms for Brad Grant’s Employment as a Retired Annuitant to Assist with Specialized Duties of the Finance Director Position Pursuant to Government Code Section 21224
MEETING DATE: July 17, 2018
PREPARED BY: Jose Antonio Ramirez, City Manager
REVIEWED BY: Jose M. Sanchez, City Attorney
RECOMMENDATION:
Adopt Resolution No. 2018-____, authorizing the City Manager to amend the employment terms for Brad Grant’s employment as a retired annuitant to assist with specialized duties of the Finance Director position pursuant to Government Code section 21224.
BACKGROUND:
The City’s Assistant City Manager/Finance Director has been out on extended leave for the majority of time since April 13, 2017. In June of 2017, the City Manager reached out to Brad Grant as a potential source of help. Mr. Grant retired from the City of Merced in the position of Finance Director effective March 13, 2017. Pursuant to Resolution No. 2017-47, effective June 29, 2017, the City employed Mr. Grant to provide specialized assistance to the City as a retired annuitant while the Finance Director is out on leave.
Given Mr. Grant’s great help to the City, the City Manager and Mr. Grant have discussed a step increase, which would bring it closer, but still below, hourly rates for financial consultants. The attached Resolution would modify the terms of employment for Mr. Grant, and allow the City Manager to compensate Mr. Grant at Step E under the salary schedule for the position of Assistant City Manager/Finance Director.
California Government Code section 21244 authorizes a retired person to be employed by another PERS agency without reinstatement from retirement or loss or interruption of benefits provided by PERS in a limited number of situations. Resolution No. 2017-47, and the attached Resolution make the required findings in order to allow the City to employ Mr. Grant as a retired annuitant.
DISCUSSION:
Hiring of a Retired Annuitant
Pursuant to California Government Code section 21224: “A retired person may serve without reinstatement from retirement or loss or interruption of benefits provided by this system upon appointment by the appointing power of a state agency or public agency employer either during an emergency to prevent stoppage of public business or because the retired person has specialized skills needed in performing work of limited duration.”
The employment of Mr. Grant as a retired annuitant to assist with the duties of the Finance Director position and special projects is necessary because the City’s Assistant City Manager/Finance Director is currently on an authorized extended leave of absence.
The City is currently winding down its 2017/2018 Budget and is preparing its 2018/2019 Budget. The City is also involved in special projects, such as negotiating its tax sharing agreement with the County. Mr. Grant has provided assistance with these projects, and the City would like to continue using his services. The City currently does not have the staff necessary to prepare the City’s budget or to thoroughly analyze the City’s current financial condition. It is critical that the City employ a qualified individual to assess the City’s financial condition, prepare the City’s 2018/2019 Budget, and assist with special finance projects.
The attached Resolution is intended to move Mr. Grant’s salary from Step D to Step E under the salary schedule for the Assistant City Manager/Finance Director, as permitted by Government Code section 21224.
Employment Terms
The attached Resolution authorizes the City Manager to employ Mr. Grant as Interim Finance Director under the following conditions:
A. The employment cannot exceed nine-hundred sixty (960) hours per Fiscal Year;
B. 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. The current maximum base salary for the Assistant City Manager/Finance Director position is Nine Thousand Eight Hundred Ninety-Four Dollars ($9,894.00), and the hourly equivalent is Fifty-Seven Dollars and Eight Cents ($57.08) (Step E), and the current minimum base salary for this position is Eight Thousand One Hundred Forty Dollars ($8,140.00), and the hourly equivalent is Forty-Six Dollars and Ninety-Six Cents ($46.96) (Step A). Mr. Grant will receive the monthly salary equivalent to Step E under the salary schedule for the Assistant City Manager/Finance Director position. The hourly rate is currently Fifty-Seven Dollars and Eight Cents ($57.08). This amount will be adjusted pursuant to any salary schedule adjustments adopted by the City Council;
C. Mr. Grant has not, and will not, receive any other benefits, incentives, compensation in lieu of benefits or other forms of compensation in addition to his hourly pay rate; and
D. Mr. Grant will serve at the pleasure of the City Manager.
ATTACHMENTS:
1. Resolution No. 2018-
RESOLUTION NO. 2018-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON AUTHORIZING THE CITY MANAGER TO AMEND THE EMPLOYMENT TERMS FOR BRAD GRANT’S EMPLOYMENT AS A RETIRED ANNUITANT TO ASSIST WITH SPECIALIZED DUTIES OF THE FINANCE DIRECTOR POSITION PURSUANT TO GOVERNMENT CODE SECTION 21224
WHEREAS, the financial health of a city requires continued analysis and monitoring. Recent changes, such as the announced increases by CalPERS in the upcoming years, making it important to continue to analyze and properly forecast the City of Livingston’s (the “City”) finances; and
WHEREAS, the City’s Assistant City Manager/Finance Director has been out on extended leave for the majority of time since April 13, 2017; and
WHEREAS, in June of 2017, the City Manager reached out to Brad Grant (CalPERS ID 6734819322) as a potential source of help. Mr. Grant retired from the City of Merced in the position of Finance Director effective March 13, 2017; and
WHEREAS, pursuant to Resolution No. 2017-47, effective June 29, 2017, the City employed Mr. Grant to provide specialized assistance to the City as a retired annuitant while the Finance Director is out on leave; and
WHEREAS, the City is currently winding down its 2017/2018 Budget and is preparing its 2018/2019 Budget. The City is also involved in special projects, such as negotiating its tax sharing agreement with the County. Mr. Grant has provided assistance with these projects and the City would like to continue using his services; and
WHEREAS, the City currently does not have the staff necessary to prepare the City’s budget or to thoroughly analyze the City’s current financial condition. It is critical that the City employ a qualified individual to assess the City’s financial condition, prepare the City’s 2018/2019 Budget, and assist with special finance projects; and
WHEREAS, California Government Code section 21224 allows a retired person to “serve without reinstatement from retirement or loss or interruption of benefits provided by this system upon appointment by the appointing power of a state agency or public agency employer either during an emergency to prevent stoppage of public business or because the retired person has specialized skills needed in performing work of limited duration;” and
WHEREAS, the City Council hereby desires for the City to continue to employ Mr. Grant as an extra help retired annuitant to perform the duties of the Finance Director for the City of Livingston under Government Code section 21224; and
WHEREAS, this Resolution is intended to move Mr. Grant’s salary from Step D to Step E under the salary schedule for the Assistant City Manager/Finance Director as permitted by Government Code section 21224; and
WHEREAS, no matters, issues, terms or conditions related to this employment and appointment have been or will be placed on a consent calendar.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livingston as follows:
1. The recitals of this Resolution and Resolution 2017-47 are true and correct and are incorporated herein as findings.
2. Pursuant to Government Code section 21224, the employment of Brad Grant as a retired annuitant to assist the City with special projects and duties of the Finance Director position is necessary because the City’s Assistant City Manager/Finance Director is currently on extended leave, creating the immediate need for assistance in the Finance Department. The City Council finds that the position of Finance Director requires a person with specialized skills in government finance. The City currently does not have anybody on staff with the required skills to properly and thoroughly analyze the City’s 2017/2018 ending budget and finalize the
City’s 2018/2019 Budget, or fulfill the other duties of a Finance Director. Mr. Grant possesses those skills and would be able to temporarily assist the City. Mr. Grant’s employment with the City shall terminate on or before the Assistant City Manager/Finance Director’s return to employment.
3. Pursuant to Government Code section 21224, the employment of Brad Grant as a retired annuitant to assist the City with special help and duties of the Finance Director is necessary to prevent stoppage of public business. The City Council hereby finds that going without proper analysis of the City’s financial condition is an emergency that could result in stoppage of City operations. The City cannot operate or follow all financial legal requirements without a proper budget. Mr. Grant would assist the City in meeting its financial accounting and reporting obligations in order to prevent the stoppage of City operations.
4. The City Council authorizes the continued employment of Brad Grant to provide specialized financial assistance under the following conditions:
A. The employment cannot exceed nine-hundred sixty (960) hours per Fiscal Year;
B. 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. The current maximum base salary for the Assistant City Manager/Finance Director position is Nine Thousand Eight Hundred Ninety-Four Dollars
($9,894.00), and the hourly equivalent is Fifty-Seven Dollars and Eight Cents ($57.08) (Step E), and the current minimum base salary for this position is Eight Thousand One Hundred Forty Dollars ($8,140.00), and the hourly equivalent is Forty-Six Dollars and Ninety-Six Cents ($46.96) (Step A). Mr. Grant will receive the monthly salary equivalent to Step E under the salary schedule for the Assistant City Manager/Finance Director position. The hourly rate is currently Fifty-Seven Dollars and Eight Cents ($57.08). This amount will be adjusted pursuant to any salary schedule adjustments adopted by the City Council;
C. Mr. Grant has not, and will not, receive any other benefits, incentives, or
compensation in lieu of benefits or other forms of compensation in addition to his hourly pay rate; and D. Mr. Grant will serve at the pleasure of the City Manager.
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5. This Resolution shall take effect immediately after adoption by the City Council.
Passed and adopted this 17th day of July, 2018, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________
Jim Soria, Mayor
of the City of Livingston
ATTEST:
I, hereby certify that the foregoing Resolution was regularly introduced, passed and adopted at a Special Meeting of the City Council of the City of Livingston this 17th day of July, 2018.
___________________________
Betty Cota, Deputy City Clerk
of the City of Livingston
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