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CC - Item 5J - Approval of First Amendment to Interim Finance Director/Treasurer Employment AgreementROSEMEAD CITY COUNCIL STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL FROM: GLORIA MOLLEDA, CITY MANAGER . DATE: DECEMBER 14, 2021 SUBJECT: APPROVAL OF FIRST AMENDMENT TO INTERIM FINANCE DIRECTOR/TREASURER EMPLOYMENT AGREEMENT SUMMARY The City has been recruiting for a permanent Finance Director since January 15, 2020. However, with the current COVID-19 issues and other factors, the City has been unable to fill the position. Until the City can fill the position, staff requests the City Council extend the Employment Agreement ("Agreement") with Retired Annuitant Paula Chamberlain for the position of Interim Finance Director/Treasurer as authorized Executive Order N-84-20 and to ensure adequate staffing during this ongoing state of emergency. The City and the Interim Finance Director/Treasurer entered into the Agreement on March 10, 2021. That Agreement will expire December 14, 2021, due to the accumulated hours of 960. As the Finance Director position remains vacant due to the continued difficulty of recruiting for the position during the COVID-19 pandemic and there remains an urgent need to fill the position to assist with 2022-23 budget preparation and other financial duties, staff is recommending an extension to the Agreement with Paula Chamberlain so that she may fulfill the necessary duties until the City hires a permanent replacement. Finally, on October 26, 2021, the City Council approved an increase in the Finance Director's monthly salary range (Resolution 2021-50); therefore, the hourly rate also has changed, so the Agreement must reflect that increase. STAFF RECOMMENDATION That the City Council take the following actions: 1. Consider approving Resolution No. 2021-68, amending the Interim Finance Director/Treasurer's Agreement to extend the term and restart the hours of the Agreement as permitted by Executive Order N-84-20 by and make other minor changes to reflect current law. AGENDA ITEM 5.J City Council Meeting December 14, 2021 Page 2 of 2 2. Consider approving an amendment that would change the current pay rate for the Interim Finance Director/Treasurer to reflect the monthly salary range approved by the City Council on October 26, 2021 (Resolution 2021-50). PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: Rachel Richman, City Attorney Attachment A: Resolution No, 2021-68, - First Amendment to Retired Annuitant Employment Agreement for the Position of Interim Finance Director/Treasurer between the City Of Rosemead and Paula Chamberlain Attachment A Resolution No. 2021-68 & First Amendment to Retired Annuitant Employment Agreement for the Position of Interim Finance Director/Treasurer between the City Of Rosemead and Paula Chamberlain RESOLUTION NO. 2021-68 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD APPROVING THE FIRST AMENDMENT TO THE INTERIM FINANCE DIRECTOR/TREASURER'S RETIRED ANNUITANT EMPLOYMENT AGREEMENT WHEREAS, the City and Paula Chamberlain entered into an Employment Agreement on March 10, 2021, and now wish to amend the Employment Agreement to extend Paula Chamberlain's term of employment and allow for additional hours of employment pursuant to Executive Order N-84-20 and increase her rate of pay to reflect the monthly salary range approved by the City Council on October 26, 2021 (Resolution 2021-50); WHEREAS the City Council is authorized to approve amendments to the Employment Agreement; WHEREAS, Section 6.11 of the Employment Agreement requires any amendment be in writing and signed by the parties; WHEREAS, the usual limitations on retirement annuitant employment of 960 hours has been lifted as may be exempted under the Governor's State of Executive Order N-12-21; WHEREAS, Paula Chamberlain is a retired annuitant as further detailed in the Amended Employment Agreement attached hereto as Exhibit A; WHEREAS, the Rosemead City Council hereby extends Paula Chamberlain's appointment as an interim retired annuitant to the position of Interim Finance Director/Treasurer for the City of Rosemead, effective December 14, 2021, as detailed in the Amended Employment Agreement attached hereto as Exhibit A; 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; WHEREAS, the entire Amended Employment Agreement between Paula Chamberlain and the City of Rosemead has been reviewed by this body and is attached hereto as Exhibit A; WHEREAS, no matters, issues, terms, or conditions related to this employment and extended appointment have been or will be placed on a consent calendar; 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; WHEREAS, the maximum base salary for the position of Finance Director/Treasurer as listed on a publicly available pay schedule approved October 26, 2021, is $15,420 per month and the hourly equivalent is $88.9615, and the minimum base salary for this position is $11,862 per month, and the hourly equivalent is $68.4346; WHEREAS, the hourly rate paid to Paula Chamberlain will be $ 88.9615 per hour; WHEREAS, PaulaChamberlain has not and will not receive any other benefit, incentive, compensation in lieu of benefit or other forms of compensation in addition to this hourly pay rate as so provided in Government Code § 21221(h) and related Ca1PERS regulations and policy statements; NOW, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: 1. The extended appointment of Paula Chamberlain as described herein is necessary to fill the critically needed position of Interim Finance Director/Treasurer for the City of Rosemead effective December 14, 2021, because the City has been unable to fill this permanent position for various reasons, including the ongoing COVID-19 pandemic, and the City needs to ensure adequate staffing during this ongoing state of emergency; 2. The First Amendment to the Retired Annuitant Employment Agreement for the Position of Interim Finance Director/Treasurer attached hereto in Exhibit A is hereby approved; and 3. The City Clerk shall certify the adoption of this resolution, and hereafter the same shall be in full force and effect. PASSED, APPROVED, AND ADOPTED, this 14th day of December 2021. Polly Low, Mayor ATTEST: Ericka Hernandez, City Clerk APPROVED AS TO FORM Rachel Richman, City Attorney EXHIBIT A FIRST AMENDMENT AGREEMENT FIRST AMENDMENT TO RETIRED ANNUITANT EMPLOYMENT AGREEMENT FOR THE POSITION OF INTERIM FINANCE DIRECTOR/TREASURER BETWEEN THE CITY OF ROSEMEAD AND PAULA CHAMBERLAIN AMENDMENT NO. 1 This First Amendment (the "First Amendment") is made and entered into effective December 14, 2021, by and between the City of Rosemead, California, a municipal corporation (the "CITY") and Paula Chamberlain ("CHAMBERLAIN"), an individual. The CITY and CHAMBERLAIN may be referred to individually as a "Party" and collectively as "Parties." RECITALS A. The Parties entered into an Employment Agreement (the "Agreement") on March 10, 2021; B. Since January 15, 2020, the CITY has had two open recruitments for the permanent position of Finance Director/Treasurer. Currently, the position remains vacant. It is the City's opinion that the vacancy is due to the continuing COVID-19 pandemic and difficulty in recruiting; C. The COVID-19 Emergency continues to put significant 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 continues to need help in the Finance Department to train and mentor the Finance staff, run operations and do various financial projects as well as handle the financial needs and impacts during the COVID-19, including additional actions related to the American Rescue Plan revenue granted to cities by the Federal Government in response to the pandemic, and related emergencies and to provide the required legal and administrative functions while the CITY recruits to permanently fill the vacant position of Finance Director/Treasurer; E. CHAMBERLAIN has over 35 years of Municipal and Local Government Financial Experience and has held the position of Interim Finance Director/Treasurer for the CITY since March 10, 2021. CHAMBERLAIN is qualified and has the requisite specialized skills, training, and experience to continue to serve as Interim Finance Director/Treasurer for the CITY; F. CITY desires to continue to employ the specialized services of CHAMBERLAIN as Interim Finance Director/Treasurer for CITY in consideration of and subject to the terms, conditions, and benefits set forth in the Agreement, as amended, and State Law; G. CHAMBERLAIN desires to continue her Retired Annuitant employment as Interim Finance Director/Treasurer in consideration of and subject to the terms, conditions, and benefits set forth in the Agreement, as amended, and State Law; and H. The Parties now desire to amend the Agreement to reflect the extension of CHAMBERLAIN's term of Retired Annuitant employment as Interim Finance Director/Treasurer at the top of the Finance Director's monthly salary range as approved by the City Council on October 26, 2021 (Resolution 2021-50). OPERATIVE PROVISIONS 1. AMENDMENTS a. Recital H of the Agreement is hereby amended to read as follows: CHAMBERLAIN represents that she 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. CHAMBERLAIN represents that she retired from the Ca1PERS system at least 180 days prior to the effective date of this Agreement. CHAMBERLAIN acknowledges that she is restricted to working no more than a combined 960 hours for CITY, a state agency, or other Ca1PERS contracting agencies (collectively "Ca1PERS Agencies") during CITY' S 2021-2022 fiscal year except as may be exempted under the Governor's State of Executive Order N-12- 21 which exempts Retired Annuitants from the 960 hours combined maximum with proper notifications, and that her compensation is statutorily limited as provided in Government Code § 21221(h). CHAMBERLAIN represents that she has not received any unemployment compensation from any Ca1PERS Agencies during the 12 -month period preceding the effective date of this AGREEMENT, that she has not received a retirement incentive upon retirement within the meaning of Government Code § 7522. 56(g), and that she has attained normal retirement age within the meaning of Government Code § 21220. 5; b. Section 1.2 of the Agreement is hereby amended to read as follows: Term. This AGREEMENT commences and is effective on December 14, 2021, ("COMMENCEMENT DATE") after being approved by the CITY Council and executed by CHAMBERLAIN and CITY' S City Manager. Subject to the provisions set forth in Section 3 [Termination], CHAMBERLAIN shall be employed in the position of Interim Finance Director/Treasurer 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 December 14, 2022, (ii) upon CHAMBERLAIN working the maximum number of hours allowed by Ca1PERS in a fiscal year; or (iii) upon the termination of the AGREEMENT by either CHAMBERLAIN or CITY as provided in Section 3 [Termination] of this AGREEMENT. C. Section 1.5 of the Agreement is hereby amended to read as follows: Hours of Work. CHAMBERLAIN shall devote the time necessary to adequately perform her duties as Interim Finance Director/Treasurer. The parties anticipate that CHAMBERLAIN will work up to 40 hours per week during regular City Hall business hours or as mutually agreed by CHAMBERLAIN and the City Manager. However, in no event shall CHAMBERLAIN 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-12- 21, which exempts Retired Annuitants from the 960 hours combined maximum with proper notifications. d. Section 2.1 of the Agreement is hereby amended to read as follows: Rate of Pay. For all services performed by CHAMBERLAIN as the Interim Finance Director/Treasurer under this AGREEMENT, CITY shall pay CHAMBERLAIN compensation at the maximum salary range, which is currently Eighty -Eight dollars and Ninety -Six cents ($ 88.9615) per hour. Such compensation shall be payable according to the scheduled paydays for CITY personnel. d. Section 2.2 of the Agreement is hereby amended to read as follows: Compliance with Ca1PERS Requirements. The parties intend to compensate CHAMBERLAIN 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 CalPERS. The monthly base salary for the position of Finance Director as listed on a publicly available pay schedule is a minimum of $11, 862 - and a maximum of $15,420. The Rate of Pay is calculated by taking a monthly base salary of $15,420 and dividing it by 173.3333 to equal an hourly rate of $88.9615. 2. REMAINDER UNCHANGED Except as specifically modified and amended in this First Amendment, the Agreement remains in full force and effect and binding upon the parties. 3. INTEGRATION This First Amendment constitutes the entire understanding and agreement of the parties and supersedes all negotiations or previous agreements between the parties with respect to all or any part of the transaction discussed in this First Amendment. 4. EFFECTIVE DATE This First Amendment shall not become effective until the date the City Council has formally approved it. 5. APPLICABLE LAW The laws of the State of California shall govern the interpretation and enforcement of this First Amendment. 6. REFERENCES All references to the Agreement include all their respective terms and provisions. All defined terms utilized in this First Amendment have the same meaning as provided in the Agreement, unless expressly stated to the contrary in this First Amendment. IN WITNESS WHEREOF, the Parties have executed this Agreement, as of the date indicated above. CITY OF ROSEMEAD A Municipal Corporation By: Polly Low Mayor ATTEST: By: Ericka Hernandez City Clerk APPROVED AS TO FORM: By: Rachel H. Richman City Attorney Paula Chamberlain An Individual Paula Chamberlain Interim Finance Director/Treasurer