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CC - Item 5C – Approval of First Amendment to Interim City Engineer’s Employment Agreement as a Retired Annuitant PositionROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER DATE: JUNE 27, 2024 SUBJECT: APPROVAL OF FIRST AMENDMENT TO INTERIM CITY ENGINEER'S EMPLOYMENT AGREEMENT AS A RETIRED ANNUITANT POSITION In May 2023, the City opened the recruitment for a permanent City Engineer due to the resignation of the previous City Engineer. On November 14, 2023, the City Council authorized the City Manager to appoint Mr. Albert Leung as a Retired Annuitant to the position of City Engineer as authorized per California Government Code Sections 7522.56 and 21221(h). The recruitment is ongoing, but the position remains vacant. Therefore, staff is requesting an extension to Mr. Albert Leung's agreement for FY 2024-25 until the permanent City Engineer position is filled. STAFF RECOMMENDATION That the City Council: 1. Approve Resolution No. 2024-34, amending the Interim City Engineer's Agreement with Mr. Albert Leung to extend the term and hourly rate of a Retired Annuitant position per California Government Code Sections 7522.56 and 21221(h); The employment agreement as a retired annuitant with Mr. Leung expires on June 30, 2024. The City is actively recruiting for a permanent City Engineer, 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. Leung, since joining the Public Works Department, has provided excellent oversight and mentoring to staff, has established City standards and procedures, and has made progress in furthering the Capital Improvement Program goals of the City. As such, Staff is requesting to extend Mr. Leung's agreement for FY 2024-25 until such time when the permanent City Engineer position is filled. As for the budget, there was a cost saving in FY 2023-24 of approximately $133,000 as Mr. Leung's hours are limited by CalPERS to 960 hours per fiscal year and no benefit costs. FY 2023- 24 Budget included a full -loaded salary and benefits costs of $210,100 and the total amount AGENDA ITEM 5.0 City Council Meeting June 27, 2024 Page 2 of 2 compensated to Mr. Leung was approximately $77,100. FY 2024-25 Budget also includes a full - loaded amount of $175,000 but staff anticipates further savings with Mr. Leung serving as the Interim City Engineer until at such time a permanent City Engineer is hired. Mr. Leung's agreed hourly rate is at the top -step of the current salary range $76.8346 per hour and staff requests an adjustment should the top -step hourly rate is amended during his service. FISCAL IMPACT There is no additional financial impact associated with this engagement as the City Engineer's salary is currently budgeted; however, there will be savings since retired annuitants receive no 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. Prepared By: oya Wang Director of Public Works Attachment A: Resolution No. 2024-34 Approving First Amendment to the Interim City Engineer's Retired Annuitant Employment Agreement with Exhibit A (First Amendment Agreement) Attachment A Resolution No. 2024-34 First Amendment to Employee Agreement for Albert Leung RESOLUTION NO. 2024-34 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD APPROVING THE FIRST AMENDMENT TO THE INTERIM CITY ENGINEER'S RETIRED ANNUITANT EMPLOYMENT AGREEMENT WHEREAS, the City and Albert Leung entered into a Retired Annuitant Employment Agreement on November 14, 2023, and now wish to amend the Employment Agreement to extend Albert Leung'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, Albert Leung 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 Albert Leung's appointment as an interim retired annuitant to the position of Interim City Engineer for the City of Rosemead, effective July 1, 2024, 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 Albert Leung 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 City Engineer as listed on a publicly available pay schedule is $13,318 per month and the hourly equivalent is $76.8346, and the minimum base salary for this position is $10,206 per month, and the hourly equivalent is $58.8808; WHEREAS, the hourly rate paid to Albert Leung will be $ 76.8346 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, Albert Leung 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 Albert Leung as described herein is necessary to fill the critically needed position of Interim City Engineer for the City of Rosemead effective July 1, 2024, 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 City Engineer 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 27' day of June, 2024. 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. 2024-34, was duly adopted by the City Council of the City of Rosemead, California, at a special meeting thereof held on the 27`x' day of June, 2024, 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 CITY ENGINEER BETWEEN THE CITY OF ROSEMEAD AND ALBERT LEUNG AMENDMENT NO. 1 This First Amendment (the "First Amendment") is made and entered into effective June 27, 2024, by and between the City of Rosemead, California, a municipal corporation (the "CITY") and Albert Leung ("LEUNG"), an individual. The CITY and LEUNG may be referred to individually as a "Partv" and collectivelv as "Parties_" RECITALS A. The Parties entered into a Retired Annuitant Employment Agreement (the "Agreement") on November 14, 2023; B. Since May 2023, the CITY has had opened recruitments for the permanent position of City Engineer. 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 City Engineer; C. The CITY continues to need help in the Public Works 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 CITY recruits to permanently fill the vacation position of City Engineer; D. LEUNG brings over 30 years of professional experience in planning, design, and construction of Capital Improvement Program management. This extensive background includes 29 years as the Deputy Director of Facilities at Los Angeles Unified School District, where he oversaw infrastructure programs totaling 1.2 billion in construction costs. LEUNG is qualified and has the requisite specialized skills, training, and experience to continue to serve as Interim City Engineer for the CITY; E. CITY desires to continue to employ the specialized services of LEUNG as Interim City Engineer for CITY in consideration of and subject to the terms, conditions, and benefits set forth in the Agreement, as amended, and State Law; F. LEUNG desires to continue his Retired Annuitant employment as Interim City Engineer 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 LEUNG's term of Retired Annuitant employment as Interim City Engineer at the top of the City Engineer'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 1. AMENDMENTS a. Recital H of the Agreement is hereby amended to read as follows LEUNG 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. LEUNG represents that he retired from the CaIPERS system at least 180 days prior to the effective date of this agreement. LEUNG 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. LEUNG 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. b. Section 1.2 of the Agreement is hereby amended to read as follows: Term. This AGREEMENT commences and is effective on June 27, 2024, ("COMMENCEMENT DATE") after being approved by the CITY Council and executed by LEUNG and CITY'S City Manager. Subject to the provisions set forth in Section 3 [Termination], LEUNG shall be employed in the position of Interim CITY ENGINEER 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, 2025, (ii) upon LEUNG working the maximum number of hours allowed by CaIPERS in a fiscal year; or (iii) upon the termination of the AGREEMENT by either LEUNG 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 LEUNG as the Interim CITY ENGINEER under this AGREEMENT, CITY shall pay LEUNG compensation at the maximum salary range, which is currently Seventy -Six dollars and Eighty -Three cents ($ 76.8346) 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 CaIPERS Requirements. It is the intent of the parties to compensate LEUNG only to the extent permitted under Government Code § 21221(h) and corresponding CaIPERS regulations and policy statements. The Rate of Pay set forth above is based on the salary limitations established by CaIPERS. The monthly base salary for the position of City Engineer as listed on a publicly available pay schedule is a minimum of $13,318 per month and the hourly equivalent is $76.8346, and the minimum base salary for this position is $10,206 per month, and the hourly equivalent is $58.8808. The hourly rate shall be adjusted to be consistent with the Mid Management's cost -of -living adjustment for FY 2024-25. 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 M Steven Ly Mayor ALBERT LEUNG An Individual Albert Leung Interim City Engineer ATTEST: 0 Ericka Hernandez City Clerk APPROVED AS TO FORM: Lo Rachel H. Richman City Attorney