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CC - Item 4L - Approval of Second Amendment to Interim City Enginer's Employement Agreement as a Retired Annuitant PositionROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER #L - DATE: NOVEMBER 12, 2024 SUBJECT: APPROVAL OF SECOND AMENDMENT TO INTERIM CITY ENGINEER'S EMPLOYMENT AGREEMENT AS A RETIRED ANNUITANT POSITION SUMMARY 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. Additionally, beginning August 12, 2024, the Director of Public Works position became vacant. On August 12, 2024, Mr. Leung became the Acting Director of Public Works until the position was filled on October 28, 2024. Therefore, staff is requesting an amendment to Mr. Albert Leung's agreement for FY 2024-25 to include his Acting assignment and to allow for Acting Pay between August 12, 2024, to October 27, 2024, and beginning October 28, 2024, Mr. Leung's position and pay would revert back to City Engineer until such time when the permanent City Engineer position is filled. On June 27, 2024, the employment agreement with Mr. Leung was amended to adjust the rate of pay and extend the term of the agreement to June 30, 2025. The City is actively recruiting for a permanent City Engineer, but the position remains vacant for the right candidate with desired qualifications, experience, 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. Beginning August 12, 2024, the position of Director of Public Works became vacant, and Mr. Leung became the Acting Director of Public Works. There is a need to amend the employment agreement with Mr. Albert Leung for FY 2024-25 to include his Acting assignment and to allow for Acting Pay between August 12, 2024, to October 27, 2024. AGENDA ITEM 4.1, City Council Meeting November 12, 2024 Page 2 of 2 STAFF RECOMMENDATION that the City Council approve Resolution No. 2024-59, amending the Employment Agreement with Mr. Albert Leung to include time spent as Acting Director of Public Works and an increase in hourly rate appropriate to his acting assignment for the Retired Annuitant position per California Government Code Sections 7522.56 and 21221(h). 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: Bryan Chua Director of Finance Attachment A: Resolution No. 2024-59 Approving Second Amendment to the Interim City Engineer's Retired Annuitant Employment Agreement with Exhibit A (Second Amendment Agreement) Attachment A Resolution No. 2024-59 RESOLUTION NO. 2024-59 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD APPROVING THE SECOND AMENDMENT TO THE INTERIM CITY ENGINEER'S RETIRED ANNUITANT EMPLOYMENT AGREEMENT TO TEMPORARILY APPOINT ALBERT LEUNG AS ACTING PUBLIC WORKS DIRECTOR FROM THE PERIOD OF AUGUST 12th, 2024 THROUGH OCTOBER 271h, 2024 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 retroactively appoint Albert Leung as Acting Public Works Director from the period of August 12`h, 2024 through October 27`h, 2024; 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 amends Albert Leung's appointment as an interim retired annuitant back to the position of Interim City Engineer for the City of Rosemead, effective October 281h, 2024 through June 30, 2025, 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 City Engineer position and Public Works Director 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 Public Works Director as listed on a publicly available pay schedule is $18,601 per month and the hourly equivalent is $107.3160, and the minimum base salary for this position is $14,309 per month, and the hourly equivalent is $82.5508; WHEREAS, the hourly rate paid to Albert Leung will be $ 97.5577 per hour during his temporary appointment of Acting Public Works Director from the period of August 12th, 2024 through October 27th, 2024; and 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 when he returns to his Interim City Engineer appointment on October 28th, 2024 through June 30, 2025. 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 CalPERS 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 City Engineer and Public Works Director, because the City has been unable to fill the permanent positions for various reasons. 2. The Second Amendment to the Retired Annuitant Employment Agreement for the Position of Acting Public Works Director attached hereto in Exhibit A is hereby approved. 3. The Second Amendment to the Retired Annuitant Employment Agreement for the Position of Interim City Engineer attached hereto in Exhibit A is hereby approved. 4. 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 12`h day of November, 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. 2024-59, was duly adopted by the City Council of the City of Rosemead, California, at a special meeting thereof held on the 12th day of November, 2024, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk EXHIBIT A SECOND AMENDMENT AGREEMENT SECOND AMENDMENT TO RETIRED ANNUITANT EMPLOYMENT AGREEMENT FOR THE POSITION OF CITY ENGINEER BETWEEN THE CITY OF ROSEMEAD AND ALBERT LEUNG AMENDMENT NO.2 This Second Amendment (the "First Amendment") is made and entered into effective November 12, 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 "Party" and collectively 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. 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 ("CaIPERS") 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 Ca1PERS contracting agencies (collectively "CaIPERS Agencies") during any fiscal year. LEUNG represents that he has not received any unemployment compensation from any Ca1PERS 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. Additionally, LEUNG shall be temporarily appointed as Acting Public Works Director for the period of August 12, 2024, through October 27, 2024. 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 Ca1PERS 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. For all services performed by LEUNG as the ACTING PUBLIC WORKS DIRECTOR under this AGREEMENT, CITY shall pay LEUNG compensation at the rate of Ninety -Seven dollars and Fifty -Five cents ($ 97.5577) per hour. 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 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 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. The maximum base salary for the position of Public Works Director as listed on a publicly available pay schedule is $18,601 per month and the hourly equivalent is $107.3160, and the minimum base salary for this position is $14,309 per month, and the hourly equivalent is $82.5508. 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 Second 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. C�0Iyi1X01IWDI) :V 10 This Second Amendment shall become retroactively effective on 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 Second 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 APPROVED AS TO FORM: By: Rachel H. Richman City Attorney ATTEST: By: Ericka Hernandez City Clerk