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CC - Item 4G - 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: BEN KIM, CITY MANAGER 12 DATE: MAY 31, 2022 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 September 2021. In order to ensure the continuity of operations during this vacancy, staff is recommending the City Council adopt a resolution to appoint Mr. Stan Wong 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: 1. 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 Mr. Stan Wong as the Interim Community Development Director; and 3. Adopt Resolution No. 2022-34 authorizing the appointment of a retired annuitant to the position of Interim Community Development Director. DISCUSSION Mr. Wong has over 30 years of municipal government experience, including 21 years as Director of Planning and Redevelopment. He had previously assisted Rosemead as the Interim Community Development Director during vacancy in 2011, and is familiar with the City and with staff. He has agreed to join the City as an appointed Retired Annuitant to the position of Interim Community AGENDA ITEM 4.G City Council Meeting May 31, 2022 Page 2 of 2 Development Director until the position is filled up to 960 hours per fiscal year. This will allow the City additional time to recruit a highly qualified candidate 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, active recruitment for the vacant must be underway. The Community Development Director recruitment is currently open, and three candidates were interviewed in May 2002. However, no candidate was selected and the recruitment remains open. 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. Mr. Wong has agreed to top -step of the 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's 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. 2022-34 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 Stan Wong ("Wong"), 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. WONG has over 30 years of municipal government experience, including 21 years in executive leadership experience. WONG retired in 2007 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 WONG 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. WONG 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. WONG represents that he is a retired annuitant of the California Public Employees' Retirement System ("CaIPERS") within the meaning of Government Code § 21221(h) as of the effective date of this AGREEMENT. WONG represents that he retired from the CaIPERS system at least 180 days prior to the effective date of this agreement. WONG acknowledges that he is restricted to working no more than a combined 960 hours for CITY, a state agency, or other CaIPERS contracting agencies (collectively "CaIPERS Agencies") during any fiscal year. WONG represents that he has not received any unemployment compensation from any CaIPERS Agencies I 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 May 31, 2022. OPERATIVE PROVISIONS THEREFORE, in consideration of the above recitals and promises and conditions contained herein, CITY and WONG mutually agree as follows: 1. Position and Duties. 1.1 Position. WONG 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. WONG shall provide service at the direction and under the supervision of the City Manager. It is the intent of the parties that WONG, as the Community Development Director, shall keep the City Manager fully apprised. Toward that end, WONG 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 May 31, 2022 ("COMMENCEMENT DATE") after being approved by the City Council and executed by WONG and CITY'S City Manager. Subject to the provisions set forth in Section 3 [Termination], WONG 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 June 30, 2023 (ii) upon WONG working the maximum number of hours allowed by Ca1PERS in a fiscal year; or (iii) upon termination of the AGREEMENT by either WONG or CITY as provided in Section 3 [Termination] of this AGREEMENT. 1.3 At -Will. WONG 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 WONG 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 contained in this AGREEMENT shall in any way prevent, limit or otherwise interfere with the right of CITY to terminate the services of WONG as provided in Section 3 [Termination]. Nothing in the AGREEMENT shall prevent, limit or otherwise interfere with the right of WONG 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, 2 procedures, ordinances, resolutions, or Municipal Code (collectively "PERSONNEL POLICIES") shall not apply to WONG to the extent such PERSONNEL POLICIES conflict with this Agreement. 1.4 Duties. WONG agrees to provide the follow services: Under the administrative direction of the City Manager WONG will provide INTERIM COMMUNITY DEVELOPMENT DIRECTOR services to the City's Community Development Department and the City on an as- needed basis. WONG 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. WONG shall devote the time necessary to adequately perform his duties as INTERIM COMMUNITY DEVELOPMENT DIRECTOR. The parties anticipate that WONG will work up to 40 hours per week during regular City Hall business hours or as mutually agreed by WONG and the City Manager. However, in no event shall WONG be required or permitted to work in excess of 960 hours during any fiscal year. 1.6 Other Activity. In accordance with Government Code Section 1126, during the period of his employment, WONG 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 WONG' S duties as COMMUNITY DEVELOPMENT DIRECTOR. 1.7 Reimbursement. CITY shall reimburse WONG for reasonable and necessary business expenses incurred by WONG 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 WONG as the Interim COMMUNITY DEVELOPMENT DIRECTOR under this AGREEMENT, CITY shall pay WONG compensation at the maximum rate of the salary range which is currently Eighty-Six dollars and Fifteen cents ($86.1519) per hour. Effective June 27, 2022, the per hour rate increases to $87.8769. Such compensation shall be payable according to the scheduled paydays for CITY personnel. 2.2 Compliance with Ca1PERS Requirements. It is the intent of the parties to compensate WONG only to the extent permitted under Government Code § 21221(h) and corresponding CalPERS 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 Interim Community Development Director as listed on a publicly available pay schedule is a minimum of $11,487 and a maximum of $14,933. The Rate of Pay is calculated by taking a monthly base salary of $14,993 and dividing it by 173.3333 to equal an hourly rate of $86.1519. 3 The monthly base salary for the position increases to a maximum of $15,232 on June 27, 2022 as listed on a publicly available pay schedule. The Rate of Pay is therefore, increased to $87.8769. 2.3 Recordation and Reporting of Hours Worked. WONG 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, WONG shall keep CITY continually informed of any hours worked by WONG for other Ca1PERS Agencies during the term of this Agreement. 2.4 Benefits. Pursuant to Government Code § 21221(h) and related Ca1PERS regulations and policy statements, WONG 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 WONG for any reason, and at any time, with or without cause, during the term of the AGREEMENT, by providing WONG 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 WONG 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. WONG 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 WONG' S termination effective at any time prior to the end of such period, provided CITY pays WONG all compensation as set forth in Section 2.1 [Rate of Pay] then due and owing him through the last day of WONG' S notice. WONG 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 WONG 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. WONG agrees that all property, all equipment, and other City Property, City Proprietary Information (as described Section 4) City records, and contracts shall be returned promptly to CITY upon termination of WONG' S employment. WONG' S obligations under this subsection shall survive the termination of his employment and/or the expiration of this AGREEMENT. 4 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, WONG 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, WONG shall not use any Proprietary Information and shall not disclose any Confidential Information, except with the express written consent of CITY. WONG'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 WONG 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. WONG represents and warrants to CITY that, to the best of his knowledge, he 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 WONG' S personnel file. WONG agrees to notify CITY in writing of any change in his address during his 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 City Hall, Attn: City Manager 8838 E. Valley Blvd. Rosemead, CA 91770 WONG'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 WONG against and for all losses sustained by WONG arising out of an act or omission occurring within the scope of his 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 WONG'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 WONG, 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 WONG 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 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, N 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. 7 IN WITNESS WHEREOF, CITY and PERSICO has signed and executed this AGREEMENT. DATED: DATED: ATTEST: Ericka Hernandez, City Clerk L CITY: Ben Kim, City Manager WONG: Stan Wong APPROVED AS TO FORM: Rachel Richman, City Attorney Attachment B Resolution No. 2022-34 RESOLUTION NO. 2022-34 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD APPOINTING A RETIRED ANNUITANT TO THE POSITION OF INTERIM 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, Stan Wong 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 Stan Wong certify that Stan Wong has not and will not receive a Golden Handshake or any other retirement -related incentive; and WHEREAS, the Rosemead City Council hereby appoints Stan Wong as an interim retired annuitant to the vacant position of Interim Community Development Director for the City of Rosemead under Government Code Section 21221(h), effective May 31, 2022; 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 November 31, 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 Stan Wong 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; and 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 173.3333 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 $14,933 per month and the hourly equivalent is $86.1519, and the minimum base salary for this position is $11,487 per month and the hourly equivalent is $66.2712; and WHEREAS, the maximum base salary for the position of Community Development Director as listed on a publicly available pay schedule is $15,232 per month effective June 27, 2022 and the hourly equivalent is $87.8769; and WHEREAS, the hourly rate paid to Stan Wong will be $86.1519 per hour through June 26, 2022 and $87.8769 thereafter; and WHEREAS, Stan Wong 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 CaIPERS 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 2021-22 budget and proposed Fiscal Year 2022-23 budget. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Rosemead hereby certifies the nature of the appointment of Stan Wong 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 May 31, 2022, 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 31st day of May, 2022. 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. 2022-34, was duly adopted by the City Council of the City of Rosemead, California, at a special meeting thereof held on the 31St day of May, 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk