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CC - Item 4E - Approval of First Amendment to Interim Community Development Director's Employment Agreement as a Retired Annuitant PositionROSEMEAD CITY COUNCIL STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER DATE: JULY 11, 2023 SUBJECT: APPROVAL OF FIRST AMENDMENT TO INTERIM COMMUNITY DEVELOPMENT DIRECTOR'S EMPLOYMENT AGREEMENT AS A RETIRED ANNUITANT POSITION SUMMARY In September 2021, the City opened the Community Development Director recruitment due to resignation of the previous director. On May 31, 2022, the City Council authorized the City Manager to appoint Mr. Stan Wong as a Retired Annuitant to the position of Community Development Director as authorized per California Government Code Section 7522.56 and 21221(h). The recruitment is ongoing, but the position remains vacant. As such, Staff is requesting an extension to Mr. Wong's agreement for FY 2023-24 until the permanent Community Development Director position is filled. The employment agreement as a retired annuitant with Mr. Wong expired on June 30, 2023. The City is actively recruiting for a permanent Community Development Director, but the position remains vacant for the right candidate with desired qualifications, experiences, and abilities to fit well with the organization and the community. Mr. Wong, since joining the Community Development Department, has provided excellent oversight and mentoring to staff, has worked well with the community, and has made progress in furthering the development goals of the City. As such, Staff is requesting to extend Mr. Wong's agreement for FY 2023-24 until such time when the permanent Community Development Director position is filled. As for the budget, there was a cost saving in FY 2022-23 of approximately $160,900 as Mr. Wong's hours are limited by CalPERS to 960 hours per fiscal year and no benefit costs. FY 2022-23 Budget included a full -loaded salary and benefits costs of $265,900, and the total amount compensated to Mr. Wong was approximately $105,000. FY 2023-24 Budget also includes a full -loaded amount of $264,000, but Staff anticipates further savings with Mr. Wong serving as the Interim Community Development Director until at such time a permanent Director is hired. Mr. Wong's agreed hourly rate is at the top -step of the current salary range ($87.87 per hour) and Staff requests an adjustment should the top -step hourly rate is amended during his service. AGENDA ITEM 4.E City Council Meeting July 11, 2023 Page 2 of 2 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 savings since retired annuitants do not 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. STAFF RECOMMENDATION That the City Council take the following action: Approve Resolution No. 2023-40, amending the Interim Community Development Director's Agreement with Mr. Stan Wong to extend the term and hourly rate of a Retired Annuitant position per California Government Code Sections 7522.56 and 21221(h). PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Attachment A: Resolution No. 2023-40 Approving First Amendment to the Interim Community Development Director's Retired Annuitant Employment Agreement with Exhibit A (First Amendment Agreement) Attachment A Resolution No. 2023-42 with First Amendment Agreement RESOLUTION NO. 2023-40 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD APPROVING THE FIRST AMENDMENT TO THE INTERIM COMMUNITY DEVELOPMENT DIRECTOR'S RETIRED ANNUITANT EMPLOYMENT AGREEMENT WHEREAS, the City and Stan Wong entered into a Retired Annuitant Employment Agreement on June 1, 2022, and now wish to amend the Employment Agreement to extend Stan Wong's term of employment and to adjust the hourly rate to be consistent with top -step hourly rate should there be an adjustment during his service; WHEREAS the City Council is authorized to approve amendments to the Retired Annuitant Employment Agreement; WHEREAS, Section 6.11 of the Employment Agreement requires any amendment be in writing and signed by the parties; WHEREAS, the employment shall be limited to 960 hours per fiscal year; WHEREAS, Stan Wong is a retired annuitant as further detailed in the Amended Retired Annuitant Employment Agreement attached hereto as Exhibit A; WHEREAS, the Rosemead City Council hereby extends Stan Wong's appointment as an interim retired annuitant to the position of Interim Community Development Director for the City of Rosemead, effective July 1, 2023, as detailed in the Amended Retired Annuitant 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 Retired Annuitant Employment Agreement between Stan Wong 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 Community Development Director as listed on a publicly available pay schedule is $15,232 per month and the hourly equivalent is $87.8769, and the minimum base salary for this position is $11,717 per month, and the hourly equivalent is $67.5981; and WHEREAS, the hourly rate paid to Stan Wong will be $ 87.8769 per hour. The hourly rate will be adjusted to be consistent with the top -step rate should there be an adjustment during his service; and WHEREAS, Stan Wong 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: The extended appointment of Stan Wong as described herein is necessary to fill the critically needed position of Interim Community Development Director for the City of Rosemead effective July 1, 2023, because the City has been unable to fill this permanent position for various reasons. 2. The First Amendment to the Retired Annuitant Employment Agreement for the Position of Interim Community Development Director attached hereto in Exhibit A is hereby approved. 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 11`h day of July 2023. Steven Ly, 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. 2023-40 was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the I I' day of July 2023, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk EXHIBIT A FIRST AMENDMENT AGREEMENT FIRST AMENDMENT TO RETIRED ANNUITANT EMPLOYMENT AGREEMENT FOR THE POSITION OF COMMUNITY DEVELOPMENT DIRECTOR BETWEEN THE CITY OF ROSEMEAD AND STAN WONG AMENDMENT NO. 1 This First Amendment (the "First Amendment") is made and entered into effective July 11, 2023, by and between the City of Rosemead, California, a municipal corporation (the "CITY") and Stan Wong ("WONG"), an individual. The CITY and WONG may be referred to individually as a "Party" and collectively as "Parties." RECITALS A. The Parties entered into a Retired Annuitant Employment Agreement (the "Agreement") on June 1, 2022; B. Since September 2021, the CITY has had opened recruitments for the permanent position of Community Development Director. Currently, the position remains vacant. It is the City's opinion that the vacancy is due to difficulty in recruiting the right candidate to serve as the Community Development Director; C. The CITY continues to need help in the Community Development Department to train and mentor the staff, run operations and work on developing projects, and to provide the required legal and administrative functions while the C ITY recruits to permanently fill the vacation position of Community Development Director; D. WONG has over 30 years of Municipal and Local Government Community Development Department experience and has held the position of Interim Community Development Director for the CITY since June 1, 2022. WONG is qualified and has the requisite specialized skills, training, and experience to continue to serve as Interim Community Development Director for the CITY; E. CITY desires to continue 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 the Agreement, as amended, and State Law; F. WONG desires to continue his Retired Annuitant employment as Interim Community Development Director in consideration of and subject to the terms, conditions, and benefits set forth in the Agreement, as amended, and State Law; and G. The Parties now desire to amend the Agreement to reflect the extension of WONG's term of Retired Annuitant employment as Interim Community Development Director at the top of the Community Development Director's monthly salary range as approved by the City Council. In addition, the hourly rate shall be adjusted to be consistent with the top -step hourly rate should the rate is adjusted during his service. OPERATIVE PROVISIONS OPERATIVE PROVISIONS 1. AMENDMENTS a. Recital H of the Agreement is hereby amended to read as follows WONG represents that he is a retired annuitant of the California Public Employees' Retirement System ("CalPERS") within the meaning of Government Code § 21221(h) as of the effective date of this AGREEMENT. WONG represents that he retired from the CalPERS 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 CalPERS contracting agencies (collectively "CalPERS Agencies") during any fiscal year. WONG represents that he has not received any unemployment compensation from any CalPERS 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. b. Section 1.2 of the Agreement is hereby amended to read as follows: Term. This AGREEMENT commences and is effective on July 1, 2023, ("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 Interim 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, 2024, (ii) upon WONG working the maximum number of hours allowed by CalPERS in a fiscal year; or (iii) upon the termination of the AGREEMENT by either WONG or CITY as provided in Section 3 [Termination] of this AGREEMENT. C. Section 2.1 of the Agreement is hereby amended to read as follows: 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 salary range, which is currently Eighty -Seven dollars and Eighty -Eight cents (S 87.8769) per hour. The hourly rate shall be adjusted to be consistent with the top -step hourly rate should there be an adjustment during his service under the terms of this Agreement. 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 CalPERS 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 CalPERS. The monthly base salary for the 2. 3. 4. 5. 6. position of Community Development Director as listed on a publicly available pay schedule is a minimum of $11,487 and a maximum of $15,332. The Rate of Pay is calculated by taking a monthly base salary of $15,332 and dividing it by 173.3333 to equal an hourly rate of $87.8769. The hourly rate shall be adjusted to be consistent with the Executive Team's cost -of -living adjustment for FY 2023-24. 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. 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. EFFECTIVE DATE This First Amendment shall not become effective until the date the City Council has formally approved it. APPLICABLE LAW The laws of the State of California shall govern the interpretation and enforcement of this First Amendment. 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: Steven Ly Mayor ATTEST: STAN WONG An Individual Stan Wong Interim Community Development Director wM Ericka Hernandez City Clerk APPROVED AS TO FORM: Lo Rachel H. Richman City Attorney