CC - Item 4C - City Council Designation and Appointment of Interim Community Development Director as a Retired Annuitant PositionROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: GLORIA MOLLEDA, C,,IppTT�Y,, MANAGER
DATE: SEPTEMBER 29, 2021'7 V
SUBJECT: CITY COUNCIL DESIGNATION AND APPOINTMENT OF INTERIM
COMMUNITY DEVELOPMENT DIRECTOR AS A RETIRED
ANNUITANT POSITION
SUMMARY
The City has open the recruit for a permanent Community Development Director due to the
resignation of the previous director. In order to ensure the continuity of operations during this
vacancy, staff is recommending the City Council adopt a resolution to appoint Mr. Mark Persico
as a Retired Annuitant to the position of Community Development Director as authorized per
California Government Code Sections 7522.56 and 21221(h).
STAFF RECOMMENDATION
That the City Council:
Approve the position of Interim Community Development Director and authorize the
position as a Retired Annuitant Position per California Government Code Sections 7522.56
and 21221(h), and,
2. Approve the appointment and authorize the City Manager to sign the agreement on behalf
of the City with Mark Persico as the Interim Community Development Director; and
3. Adopt Resolution No. 2021-43 authorizing the appointment of a retired annuitant to the
position of Interim Community Development Director.
DISCUSSION
Mr. Persico has over 26 years of municipal government experience, including 13 years in executive
leadership and 8 years of private sector consulting experience. He has served in the cities of West
Covina, San Bernardino, Temple City, Seal Beach, West Hollywood, Calabasas, El Monte and
Alhambra. Mr. Persico has agreed to join the City as an appointed Retired Annuitant to the
position of Interim Community Development Director until the position is filled up to 960 hours
AGENDA ITEM 4.0
City Council Meeting
September 29, 2021
Page 2 of 2
per fiscal year subject to extension by the California Governor. This will allow the City additional
time to recruit for the vacant position.
Under the California laws that govern public sector retirements, in order for a City to fill a vacant
position with a retired annuitant, an active recruitment for the vacant must be underway.
Additionally, the annuitant may be paid no more than a regular employee in the same capacity,
cannot receive benefits or other compensation, and cannot exceed allowable hours. Under these
provisions, the City has opened its recruitment for a permanent Community Development Director,
and Mr. Persico has agreed to top step of the current salary range of the Community Development
Director position with no benefits.
FISCAL IMPACT
There is no additional financial impact associated with this engagement as the Community
Development Director salary is currently budgeted; however, there will be minimal savings since
retired annuitants cannot receive benefits other than those required by law such as the City's
portion of Medicare and Social Security.
STRATEGIC PLAN IMPACT - None
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Attachment A: Retired Annuitant Agreement
Attachment B: Resolution No. 2021-43 Authorizing the Appointment of a Retired Annuitant to
the Position of Interim Community Development Director
Attachment A
Retired Annuitant Agreement
RETIRED ANNUITANT EMPLOYMENT AGREEMENT
FOR THE POSITION OF INTERIM COMMUNITY DEVELOPMENT DIRECTOR
CITY OF ROSEMEAD
This Retired Annuitant Employment Agreement ("AGREEMENT") is made and entered
into by and between the CITY OF ROSEMEAD, a Municipal Corporation of the State of
California ("CITY"), and Mark Persico ("Persico"), an individual, on the following terms and
conditions:
RECITALS
A. CITY lost their Community Development Director;
B. Beginning on September 23, 2021 the CITY commenced a recruitment for the
permanent position of Community Development Director;
C. The COVID-19 Emergency has put great strains on the City especially in its
financial affairs causing staffing issues, internal control issues and providing needed services to
the City and the Community and needs to ensure adequate staffing during this state of emergency;
D. The CITY needs help in the Community Development Department to train and
mentor the Community Development staff, run operations and do various projects during the
COVID-19 and related emergencies and to provide the required legal and administrative functions
while the City recruits to permanently fill the vacant position of Community Development
Director;
E. PERISCO has over 26 years of municipal government experience, including 13
years in executive leadership and 8 years of private sector consulting experience. He has served in
the cities of West Covina, San Bernardino, Temple City, Seal Beach, West Hollywood, Calabasas,
El Monte and Alhambra. PERISCO retired in 2021 and is uniquely qualified and has the requisite
specialized skills, training and experience to serve as Interim Community Development Director
for the CITY;
F. CITY desires to employ the specialized services of PERSICO as Interim
Community Development Director for CITY in consideration of and subject to the terms,
conditions, and benefits set forth in this AGREEMENT and State Law;
G. PERSICO desires to accept Retired Annuitant employment as Interim Community
Development Director in consideration of and subject to the terms, conditions, and benefits set
forth in this AGREEMENT and State Law;
H. PERSICO represents that he is a retired annuitant of the California Public
Employees' Retirement System ("Ca1PERS") within the meaning of Government Code § 21221(h)
as of the effective date of this AGREEMENT. PERSICO represents that he retired from the
CalPERS system at least 180 days prior to the effective date of this agreement. PERSICO
acknowledges that he is restricted to working no more than a combined 960 hours for CITY, a
state agency, or other Ca1PERS contracting agencies (collectively "CaIPERS Agencies") during
CITY'S 2020-2021 fiscal year except as may be exempted under the Governor's State of Executive
Order N-25-20 which exempts Retired Annuitants from the 960 hour combined maximum with
proper notifications, and that his compensation is statutorily limited as provided in Government
Code § 21221(h). PERSICO represents that he has not received any unemployment compensation
from any CaIPERS Agencies during the 12 -month period preceding the effective date of this
AGREEMENT, that he has not received a retirement incentive upon retirement within the meaning
of Government Code § 7522.56(g), and that he has attained normal retirement age within the
meaning of Government Code § 21220.5;
I. This AGREEMENT was approved by CITY'S City Council as a regular agenda
item at a Council meeting held on September 29, 2021.
OPERATIVE PROVISIONS
THEREFORE, in consideration of the above recitals and promises and conditions
contained herein, CITY and PERSICO mutually agree as follows:
1. Position and Duties.
1.1 Position. PERSICO accepts retired annuitant employment with CITY as Interim
Community Development Director and shall perform all functions, duties and services of set
position set forth in City Code and by direction of the City Manager. PERSICO shall provide
service at the direction and under the supervision of the City Manager. It is the intent of the parties
that PERSICO, as the Community Development Director, shall keep the City Manager fully
apprised. Toward that end, PERSICO shall report directly to the City Manager and will
periodically, or as may be otherwise specifically requested by the City Manager, provide status
reports to the City Manager on his activities and those of the CITY.
1.2 Term. This AGREEMENT commences and is effective on September 29, 2021
("COMMENCEMENT DATE") after being approved by the City Council and executed by
PERSICO and CITY'S City Manager. Subject to the provisions set forth in Section 3
[Termination], PERSICO shall be employed in the position of Community Development Director
for a term commencing on the COMMENCEMENT DATE. This AGREEMENT shall expire as
of the first of the following to occur: (i) 6:00 p.m. on September 29, 2022 (ii) upon PERSICO
working the maximum number of hours allowed by CaIPERS in a fiscal year; or (iii) upon
termination of the AGREEMENT by either PERSICO or CITY as provided in Section 3
[Termination] of this AGREEMENT.
1.3 At -Will. PERSICO acknowledges that he is an at -will employee of CITY who
shall serve at the pleasure of the City at all times during the period of his service hereunder and
that his employment may be terminated at any time for any or no reason with or without cause as
provided in Section 3 [Termination] of this AGREEMENT and/or by operation of California or
federal law. Nothing in this AGREEMENT is intended to, or does, confer upon PERSICO any
right to any property interest in continued employment, or any due process right to a hearing before
or after a decision by CITY to terminate his employment, except as is expressly provided in Section
3 [Termination] of this AGREEMENT and/or by operation of California or federal law. Nothing
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contained in this AGREEMENT shall in any way prevent, limit or otherwise interfere with the
right of CITY to terminate the services of PERSICO as provided in Section 3 [Termination].
Nothing in the AGREEMENT shall prevent, limit or otherwise interfere with the right of
PERSICO to resign at any time from the position with CITY, subject only to the provisions set
forth in Section 3 [Termination] of this AGREEMENT. The terms of the CITY'S personnel rules,
policies, procedures, ordinances, resolutions, or Municipal Code (collectively "PERSONNEL
POLICIES") shall not apply to PERSICO to the extent such PERSONNEL POLICIES conflict
with this Agreement.
1.4 Duties. PERSICO agrees to provide the follow services: Under the administrative
direction of the City Manager PERSICO will provide INTERIM COMMUNITY
DEVELOPMENT DIRECTOR services to the City's Community Development Department and
the City on an as -needed basis. PERSICO will also perform all other legally permissible and
proper duties and functions consistent with the City of Rosemead Community Development
Department, including those set forth in the Rosemead Municipal Code, the Personnel Rules and
Regulations, and as the City Manager shall from time to time assign.
1.5 Hours of Work. PERSICO shall devote the time necessary to adequately perform
his duties as INTERIM COMMUNITY DEVELOPMENT DIRECTOR. The parties anticipate
that PERSICO will work up to 40 hours per week during regular City Hall business hours or as
mutually agreed by PERSICO and the City Manager. However, in no event shall PERSICO be
required or permitted to work in excess of 960 hours during any fiscal year except as may be
exempted under the Governor's State of Executive Order N-25-20 which exempts Retired
Annuitants from the 960 hour combined maximum with proper notifications.
1.6 Other Activity. In accordance with Government Code Section 1126, during the
period of her employment, PERSICO shall not accept, except current non-government clients, any
other work without the express prior written consent of the City Manager, any other employment
or engage, directly or indirectly, in any other business, commercial, or professional activity (except
for Professional Activity or Educational Activities), whether or not for pecuniary advantage, that
is or may be competitive with CITY, that might cause a conflict-of-interest with CITY, or that
otherwise might interfere with the business or operation of CITY or the satisfactory performance
of PERSICO'S duties as COMMUNITY DEVELOPMENT DIRECTOR.
1.7 Reimbursement. CITY shall reimburse PERSICO for reasonable and necessary
business expenses incurred by PERSICO in the performance of his duties. All reimbursements
require prior approval by the City Manager or are reimbursable under City policies and shall be
subject to and in accordance with California and federal law.
2. Compensation.
2.1 Rate of Pay. For all services performed by PERSICO as the Interim
COMMUNITY DEVELOPMENT DIRECTOR under this AGREEMENT, CITY shall pay
PERSICO compensation at the maximum rate of the salary range which is currently Seventy -Eight
dollars and Twenty-one cents ($78.21) per hour. Such compensation shall be payable according
to the scheduled paydays for CITY personnel.
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2.2 Compliance with Ca1PERS Requirements. It is the intent of the parties to
compensate PERSICO only to the extent permitted under Government Code § 21221(h) and
corresponding Ca1PERS regulations and policy statements. The Rate of Pay set forth above is
based on the salary limitations established by Ca1PERS. The monthly base salary for the position
of Finance Director as listed on a publicly available pay schedule is a minimum of $9,824 and a
maximum of $13,557. The Rate of Pay is calculated by taking a monthly base salary of $13,557
and dividing it by 173.333 to equal an hourly rate of $78.21.
2.3 Recordation and Reporting of Hours Worked. PERSICO will comply with all
applicable Ca1PERS rules and regulations governing employment after retirement, including the
recordation and reporting of all hours worked for CITY to Ca1PERS as may be required. CITY
shall assist in any such reporting obligation to Ca1PERS. Additionally, PERSICO shall keep CITY
continually informed of any hours worked by PERSICO for other CalPERS Agencies during the
term of this Agreement.
2.4 Benefits. Pursuant to Government Code § 21221(h) and related Ca1PERS
regulations and policy statements, PERSICO shall not receive from CITY any benefits CITY
commonly provides to its employees including, without limitation, medical, dental, vision, long
term disability, life insurance, deferred compensation, except for Worker's Compensation
Insurance coverage, social security, Medicare, or similar benefits required by state or federal law,
or any paid personal time off such as vacation, sick leave, administrative leave, paid holidays or
similar leave benefits.
3. Termination.
3.1 By City. CITY may terminate PERSICO for any reason, and at any time, with or
without cause, during the term of the AGREEMENT, by providing PERISCO with written notice
five (5) working days before said termination date, by the CITY'S City Manager. CITY'S only
obligation in the event of such termination will be payment to PERSICO of all compensation then
due and owing as set forth in Section 2.1 [Rate of Pay] up to and including the effective date of
termination.
3.2 By Employee. PERSICO may terminate his employment for any reason, and at
any time, with or without cause, during the term of the AGREEMENT, by providing the City
Manager with seven (7) days advance written notice. CITY shall have the option, in its complete
discretion, to make PERSICO' S termination effective at any time prior to the end of such period,
provided CITY pays PERSICO all compensation as set forth in Section 2.1 [Rate of Pay] then due
and owing him through the last day of PERSICO' S notice. PERSICO shall not be entitled to any
other severance under the AGREEMENT. It is understood and agreed that any notice of
termination should be given as soon as practicable and in the best interest of the CITY.
3.3 No Notice for Expiration. Nothing in Section 3 [Termination] shall be construed
to require either PERSICO or CITY to give advance written notice in order for the AGREEMENT
to expire as set forth in Section 1.2 [Term].
3.4 Termination Obligations. PERSICO agrees that all property, all equipment, and
other City Property, City Proprietary Information (as described Section 4) City records, and
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contracts shall be returned promptly to CITY upon termination of PERISCO' S employment.
PERSICO'S obligations under this subsection shall survive the termination of her employment
and/or the expiration of this AGREEMENT.
4. Proprietary Information.
"Proprietary Information" is all non-public information pertaining in any manner to the
business of CITY (or any CITY affiliate), its employees, clients, consultants, or business
associates, which was produced by any employee of CITY in the course of his employment or
otherwise produced or acquired by or on behalf of CITY. Proprietary Information shall include,
without limitation, trade secrets, confidential financial data and formulae, attorney client -
privileged information, confidential licensing information, software and other computer programs,
copyrightable material, and other information exempt from production under the California Public
Records Act and or the Federal Freedom of Information Act. All Proprietary Information not
generally known outside of CITY's organization, and all Proprietary Information so known only
through improper means, shall be deemed "Confidential Information." During his employment by
CITY, PERSICO shall use Proprietary Information, and shall disclose Confidential Information,
only for the benefit of CITY and as is or may be necessary to perform his job responsibilities under
this AGREEMENT. Following termination, PERSICO shall not use any Proprietary Information
and shall not disclose any Confidential Information, except with the express written consent of
CITY. PERSICO's obligations under this Section shall survive the termination of his employment
and the expiration of this AGREEMENT. A disclosure of Proprietary Information or Confidential
Information by PERSICO in response to an order by a court of competent jurisdiction or in
response to a subpoena by a Grand Jury or any state, federal or local law enforcement agency shall
not be deemed a breach of this AGREEMENT.
5. Conflict Of Interest.
PERSICO represents and warrants to CITY that, to the best of her knowledge, she presently
has no interest, and represents that he will not acquire any interest, direct or indirect, financial or
otherwise, which would conflict in any manner or interfere in any way with performance of his
services under this AGREEMENT.
6. General Provisions.
6.1 Recitals. The recitals, inclusive of all facts and representation, are incorporated
into this AGREEMENT as if set forth in the Operative Provisions.
6.2 Notices. All notices, requests, demands and other communications under this
AGREEMENT shall be in writing and shall be effective upon delivery by hand or four (4) business
days after deposit in the United States mail, postage prepaid, certified or registered, and addressed
to CITY at the address below, and/or to the last known address maintained in PERSICO'S
personnel file. PERSICO agrees to notify CITY in writing of any change in hishis address during
her employment with CITY. Notice of change of address shall be effective only when
accomplished in accordance with this Section.
CITY's Notice Address:
City of Rosemead
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City Hall, Attn: City Manager
8838 E. Valley Blvd.
Rosemead, CA 91770
PERSICO'S Notice Address:
[Address on file with Human Resources]
6.3 Indemnification. In accordance with and to the extent provided by California's
Tort Claims Act (Government Code Section 825 et seq.) and Government Code Section 995-996.6,
CITY shall defend and indemnify PERSICO against and for all losses sustained by PERSICO
arising out of an act or omission occurring within the scope of her employment under this
AGREEMENT.
6.4 Bonding. CITY shall bear the full cost of any fidelity or other bond required of the
Community Development Director under any law or ordinance.
6.5 Merger, Integration and Modification. This AGREEMENT is intended to be the
final, complete, and exclusive statement of the terms of PERSICO'S Retired Annuitant
employment by CITY under this AGREEMENT. This AGREEMENT supersedes all other prior
and contemporaneous agreements and statements, whether written or oral, express or implied,
pertaining in any manner to the employment of PERSICO, and it may not be contradicted by
evidence of any prior or contemporaneous statements or agreements. To the extent that the
practices, policies, or procedures of CITY, now or in the future, apply to PERSICO and are
inconsistent with the terms of this AGREEMENT, the provisions of this AGREEMENT shall
control. This AGREEMENT may be modified only in a writing approved by the City Manager
and signed by all the parties.
6.6 Waiver. Either party's failure to exercise any right under this AGREEMENT shall
not constitute a waiver of such right. Waiver by any party hereto of any term, condition, or
covenant of this AGREEMENT shall not constitute the waiver of any other term, condition, or
covenant hereof.
6.7 Assignment. Neither this AGREEMENT, nor any interest in it, may be assigned
or transferred by any party without the prior written consent of all the parties. Any such assignment
will be subject to such terms and conditions as CITY may choose to impose.
6.8 Severability. In the event any portion of this AGREEMENT is declared void, such
portion shall be severed from this AGREEMENT and the remaining provisions shall remain in
effect, unless the result of such severance would be to substantially alter this AGREEMENT or
the obligations of the parties, in which case this AGREEMENT shall be immediately terminated.
6.9 Attorneys' Fees. In any legal action, arbitration, or other proceeding brought to
enforce or interpret the terms of this AGREEMENT, the prevailing party shall be entitled to
recover reasonable attorneys' fees and costs.
6.10 Governing Law. This AGREEMENT shall be governed by and construed in
accordance with the laws of the State of California, and any action in connection with or arising
out of this AGREEMENT or any dispute between the parties shall be commenced and maintained
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in the Superior Court of the State of California for the County of Los Angeles or the United States
District Court for the Central District of California.
6.11 Interpretation. This AGREEMENT shall be construed as a whole, according to
its fair meaning, and not in favor of or against any party. By way of example and not in limitation,
this AGREEMENT shall not be construed in favor of the party receiving a benefit nor against the
party responsible for any particular language in this AGREEMENT. Captions are used for
reference purposes only and should be ignored in the interpretation of the AGREEMENT. This
AGREEMENT may be altered, amended or modified only by an instrument in writing, executed
by the parties to this AGREEMENT and by no other means. Each party waives their future right
to claim, contest or assert that this AGREEMENT was modified, cancelled superseded or changed
by any oral agreement, course of conduct, waiver or estoppel.
6.12 Binding Effect. The rights and obligations of this AGREEMENT shall inure to
the benefit of, and be binding upon, the parties to the contract and their heirs, administrators,
executors, personal representatives, successors and assigns, and whenever the context so requires,
the masculine gender and includes the feminine and neuter, and the singular number includes the
plural. This AGREEMENT may be executed in any number of counterparts, each of which shall
be considered as an original and be effective as such.
6.13 Further Assurances. Each party shall execute and deliver such papers,
documents, and instruments, and perform such acts as are necessary or appropriate, to implement
the terms of this AGREEMENT and the intent of the parties to this AGREEMENT.
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IN WITNESS WHEREOF, CITY and PERSICO has signed and executed this
AGREEMENT.
DATED:
DATED:
ATTEST:
Ericka Hernandez, City Clerk
E:3
CITY:
Gloria Molleda, City Manager
PERSICO:
Mark Persico
APPROVED AS TO FORM:
Rachel Richman, City Attorney
Attachment B
Resolution No. 2021-43
RESOLUTION NO. 2021-43
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ROSEMEAD APPOINTING A RETIRED ANNUITANT
TO THE POSITION OF COMMUNITY DEVELOPMENT
DIRECTOR FOR A LIMITED DURATION PURSUANT TO
GOVERNMENT CODE SECTION 21221(h)
WHEREAS, in compliance with Government Code Section 21221(h) of the Public
Employees' Retirement Law, the City of Rosemead must provide Ca1PERS this certification
resolution when hiring a retiree; and
WHEREAS, Mark Persico is a retired annuitant as further detailed in the Employment
Agreement attached hereto as Exhibit A; and
WHEREAS, the Rosemead City Council, the City of Rosemead and Mark Persico certify
that Mark Persico has not and will not receive a Golden Handshake or any other retirement -related
incentive; and
WHEREAS, the Rosemead City Council hereby appoints Mark Persico as an interim
retired annuitant to the vacant position of Mark Persico for the City of Rosemead under
Government Code Section 21221(h), effective September 29, 2021; and
WHEREAS, an appointment under Government Code Section 21221(h) requires an
active, publicly posted recruitment for a permanent replacement; and
WHEREAS, the current status of this recruitment is that the job opening for the permanent
position has been publicly posted, applications are being accepted and candidates are being
reviewed; and
WHEREAS, this Section 21221(h) appointment shall only be made once and therefore
will end no later than September 29, 2022 and as further detailed in the Employment Agreement
attached hereto as Exhibit A; and
WHEREAS, the entire employment agreement, contract or appointment document
between Mark Persico and the City of Rosemead has been reviewed by this body and is attached
hereto as Exhibit A; 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 except as may
be exempted under the Governor's State of Executive Order N-25-20;
WHEREAS, 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; and
WHEREAS, the maximum base salary for the position of Community Development
Director as listed on a publicly available pay schedule is $13,557 per month and the hourly
equivalent is $78.21, and the minimum base salary for this position is $9,824 per month and the
hourly equivalent is $56.68; and
WHEREAS, the hourly rate paid to Mark Persico will be $78.21 per hour; and
WHEREAS, Mark Persico 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
as so provided in Government Code § 21221(h) and related Ca1PERS regulations and policy
statements; and
WHEREAS, the expenses related to the of hiring the Retired Annuitant have no net impact
to the General Fund, as the salary for this position is included in the adopted Fiscal Year 2020-21
budget; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Rosemead
hereby certifies the nature of the appointment of Mark Persico as described herein and that this
appointment is necessary to fill the critically needed position of Interim Community Development
Director for the City of Rosemead by September 29, 2021, because the City has a vacancy in this
permanent position and the City needs to ensure adequate staffing during this state of emergency.
PASSED, APPROVED AND ADOPTED, this 29th day of September 2021.
Polly Low, Mayor
APPROVED AS TO FORM: ATTEST:
Rachel Richman, City Attorney
Ericka Hernandez, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) §
CITY OF ROSEMEAD )
I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California,
do hereby certify that the foregoing City Council Resolution No. 2021-43, was duly adopted by
the City Council of the City of Rosemead, California, at a regular meeting thereof held on the
29th day of September, 2021, by the following vote, to wit:
AYES: ARMENTA, CLARK, DANG, LOW, LY
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Ericka Hernandez, City Clerk