7 Resolution Authorizing the City Manager to Employ Brad Grant as a Retired Annuitant to Fill the Position of Interim Finance Director Pursuant to Government Code Section 21211(g) and (h), and Making the Findings Necessary Pursuant to Government Code Section 7522.56(f)(1) to Employ Brad Grant Prior to the Required 180 Days Waiting Period.

Note from TheGardeningSnail: This page may have been prepared by running a PDF Image File through a program which converts Image to Print. My apologies for any textual Gremlins that may have crept in. I may also have broken up some of the larger paragraphs and highlighted a few sections.

Meeting Date: June 20, 2017

STAFF REPORT

AGENDA ITEM: Resolution Authorizing the City Manager to Employ Brad Grant as a Retired Annuitant to Fill the Position of Interim Finance Director Pursuantto Government Code Section 21211(g) and {h), and Making the Findings Necessary Pursuant to Government Code Section 7522.56(f)(1) to Employ Brad Grant Prior to the Required 180 Days Waiting Period.

MEETING DATE: June 20, 2017

PREPARED BY: Jose Antonio Ramirez, City Manager

REVIEWED BY: Jose M. Sanchez, City Attorney

RECOMMENDATION:

Adopt Resolution No. 2017- , authorizing the City Manager to employ Brad Grant as a retired annuitant to fill the position of Interim Finance Director pursuant to Government Code section 21211(g) and (h), and making the findings necessary pursuant to Government Code section 7522.56(f)(1) to employ Brad Grant prior to the required 180 days waiting period.

BACKGROUND:

The City of Livingston’s financial condition has improved over the last few years due to difficult decisions by the City Council, good financial management and the cooperation of all employees. However, the financial health of a City requires continued analysis and monitoring. Recent changes, such as the announced increases by CalPERS in the upcoming years, make it important to continue to analyze and properly forecast City finances.

The City’s Assistant City Manager/Finance Director is currently out on extended leave and the City needs immediate assistance in closing out its 2016/2017 Budget, analysis of its current financial condition, and with the preparation of its 2017/2018 Budget. The City currently does not have staff necessary to prepare the City’s budget or to thoroughly analyze the City’s current financial condition. It is critical that the City employ a qualified individual to assess the City’s financial condition and prepare the City’s 2017/2018 Budget.

The City Manager reached out to Brad Grant, who recently retired as the Finance Director for the City of Merced, as a potential source of help. Mr. Grant has agreed to temporarily assist the City as a retired annuitant while the Assistant City Manager/Finance Director is out on leave.

California Government Code section 21211 authorizes a retired person to be employed by another PERS agency without reinstatement from retirement or loss or interruption of benefits provided by PERS in a limited number of situations. Further, Government Code section 7522.56(f) requires a retired person to wait at least 180 days before getting another job, unless certain findings can be made by a government agency that there is a critical need to hire that individual earlier.

The attached Resolution makes the required findings in order to allow the City to employ Mr. Grant as a retired annuitant to fill the position of Interim Finance Director prior to the expiration of the 180 days period.

DISCUSSION:

Hiring of a Retired Annuitant

Pursuant to California Government Code section 21211, a retired person may serve without reinstatement from retirement or loss or interruption of benefits provided by this system, as follows:

“(g) Upon employment by a contracting agency to a position found by the governing body, by resolution, to be available because of a leave of absence granted to a person on payroll status for a period not to exceed one year and found by the governing body to require specialized skills. The temporary employment shall be terminated at the end of the leave of absence.

Appointments under this section shall be reported to the board and shall be accompanied by the resolution adopted by the governing body.

(h) Upon interim appointment by the governing body of a contracting agency to a vacant position during recruitment for a permanent appointment and deemed by the governing body to require specialized skills or during an emergency to prevent stoppage of public business. A retired person shall only be appointed once to this vacant position.”

The employment of Mr. Grant as a retired annuitant to fill the position of Interim Finance Director is necessary because the City’s Assistant City Manager/Finance Director is currently on an authorized extended leave of absence. The City Council finds that the position of Finance Director requires a person with specialized skills in government finance.

The City currently does not have anybody on staff with the required skills to properly and thoroughly analyze the City’s 2016/2017 ending budget, prepare the City’s 2017/2018 Budget, or fulfill the other duties of a Finance Director. Mr. Grant possesses those skills and would be able to temporarily assist the City.

Further, the employment of Mr. Grant as a retired annuitant to fill the position of Interim Finance Director is necessary to prevent stoppage of public business. Going without proper analysis of the City’s financial condition is an emergency that could result in stoppage of City operations.

The City cannot operate or follow all financial legal requirements without a proper budget. Mr. Grant would assist the City in meeting its financial accounting and reporting obligations in order to prevent the stoppage of City operations.

180 Days Waiting Period After Retirement Exception

Regarding the timing of when the City could hire Mr. Grant, Government Code section 7522.56(f), “[a] retired person shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement” unless the employee meets one of the conditions codified in that Section. Section 7522.56(f)(1) states that a retired person may be employed without waiting the 180 days period if:

“The employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting. The appointment may not be placed on a consent calendar.”

Since Mr. Grant retired from the City of Merced on March 13, 2017, the attached Resolution makes the findings required by Government Code section 7522.56(f)(1). The Resolution certifies that Mr. Grant’s employment as Interim Finance Director is critical in nature because the City currently does not have anybody on staff with the required skills to properly and thoroughly analyze the City’s 2016/2017 ending budget, prepare the City’s 2017/2018 Budget, or fulfill the other duties of a Finance Director. An Interim Finance Director is needed in order to assist the City comply with all legal financial requirements.

Employment Terms

The attached Resolution authorizes the City Manager to employ Mr. Grant as Interim Finance Director under the following conditions:

• For a period not to exceed one (1) year, or upon return of the Assistant City Manager/Finance Director, whichever is earlier;

• The employment cannot exceed nine-hundred (900) hours per Fiscal Year;

• Monthly salary of Nine Thousand Four Hundred Twenty-Two Dollars ($9,422.00) which is currently Step D in the Assistant City Manager/Finance Director salary schedule. No other benefits shall be paid to Mr. Gant; and

• Mr. Grant will serve at the pleasure of the City Manager.

Adoption of the attached Resolution will satisfy the requirements of CalPERS in order to hire Mr. Grant as a retired annuitant to fill the position of Interim Finance Director during the Assistant City Manager/Finance Director’s leave.

ATTACHMENTS:

1. Resolution No. 2017-

2825567.1

RESOLUTION NO. 2017-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON AUTHORIZING THE CITY MANAGER TO

EMPLOY BRAD GRANT AS A RETIRED ANNUITANT TO FILL THE POSITION OF INTERIM FINANCE DIRECTOR PURSUANT TO GOVERNMENT CODE

SECTION 21211(g) AND (h), AND MAKING THE FINDINGS NECESSARY PURSUANT TO GOVERNMENT CODE SECTION 7522.56(f)(1) TO EMPLOY BRAD GRANT PRIOR TO THE REQUIRED 180 DAYS WAITING PERIOD

WHEREAS, the City of Livingston’s (“City”) financial condition has improved over the last few years due to difficult decisions by the City Council, good financial management and the cooperation of all employees; and

WHEREAS, financial health of a City requires continued analysis and monitoring. Recent changes, such as the announced increases by CalPERS in the upcoming years, make it important to continue to analyze and properly forecast City finances; and

WHEREAS, the City’s Assistant City Manager/Finance Director has been out on extended leave since April 13, 2017; and

WHEREAS, the City is approaching the end of its fiscal year and it is critical that the City analyze and properly end its 2016/2017 Budget, and prepare a 2017/2018 Budget for the next fiscal year; and

WHEREAS, the City currently does not have staff necessary to prepare the City’s budget or to thoroughly analyze the City’s current financial condition. It is critical that the City employ a qualified individual to assess the City’s financial condition and prepare the City’s 2017/2018 Budget; and

WHEREAS, the City Manager reached out to Brad Grant as a potential source of help. Mr. Grant recently retired as Finance Director for the City of Merced. He has agreed to temporarily assist the City as a retired annuitant while the Finance Director is out on leave; and

WHEREAS, California Government Code section 21211 allows that a “retired person may serve without reinstatement from retirement or loss or interruption of benefits provided by this system, as follows”:

“(g) Upon employment by a contracting agency to a position found by the governing body, by resolution, to be available because of a leave of absence granted to a person on payroll status for a period not to exceed one year and found by the governing body to require specialized skills. The temporary employment shall be terminated at the end of the leave of absence.

Appointments under this section shall be reported to the board and shall be accompanied by the resolution adopted by the governing body.

(h) Upon interim appointment by the governing body of a contracting agency to a vacant position during recruitment for a permanent appointment and deemed by the governing body to require specialized skills or during an emergency to prevent stoppage of public business. A retired person shall only be appointed once to this vacant position.”

WHEREAS, pursuant to Government Code section 7522.56(f), “[a] retired person shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement” unless the employee meets one of the conditions codified in that Section; and

WHEREAS, pursuant to Government Code section 7522.56(f)(1), a retired person may be employed without waiting the 180 days period if: “The employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting. The appointment may not be placed on a consent calendar;” and

WHEREAS, this Resolution is intended to make the findings necessary pursuant to Government Code sections 21211 and 7522.56 in order to employ Mr. Grant as a retired annuitant to fill the Interim Finance Director position without waiting the 180 days period following his retirement.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livingston as follows:

1. The recitals of this Resolution are true and correct and incorporated herein as findings.

2. Pursuant to Government Code section 21211(g), the employment of Brad Grant as a retired annuitant to fill the position of Interim Finance Director is necessary because the City’s Assistant City Manager/Finance Director is currently on an authorized extended leave of absence.

The City Council finds that the position of Finance Director requires a person with specialized skills in government finance. The City currently does not have anybody on staff with the required skills to properly and thoroughly analyze the City’s 2016/2017 ending budget, prepare the City’s 2017/2018 Budget, or fulfill the other duties of a Finance Director.

Mr. Grant possesses those skills and would be able to temporarily assist the City. Mr. Grant’s employment with the City shall terminate on or before the Assistant City Manager/Finance Director’s return to employment.

3. Pursuant to Government Code section 21211(h), the employment of Brad Grant as a retired annuitant to fill the position of Interim Finance Director is necessary to prevent stoppage of public business. The City Council hereby finds that going without proper analysis of the City’s financial condition is an emergency that could result in stoppage of City operations.

The City cannot operate or follow all financial legal requirements without a proper budget. Mr. Grant would assist the City in meeting its financial accounting and reporting obligations in order to prevent the stoppage of City operations.

4. Pursuant to Government Code section 7522.56(f)(1), the City Council hereby certifies that Brad Grant’s employment as Interim Finance Director is critical in nature because the City currently does not have anybody on staff with the required skills to properly and thoroughly analyze the City’s 2016/2017 ending budget, prepare the City’s 2017/2018 Budget, or fulfill the other duties of a Finance Director.

An Interim Finance Director is needed in order to assist the City comply with all legal financial requirements. The appointment is necessary to fill this critically needed position before the 180 days from Mr. Grant’s retirement from the City of Merced have passed. Mr. Grant retired from the City of Merced on March 13, 2017. The City needs immediate assistance in analyzing the condition of the 2016/2017 Budget, which was originally scheduled to end on June 30, 2017, and assistance with preparing a the 2017/2018 Budget.

5. The City Council authorizes the City Manager to employ Brad Grant as Interim Finance Director under the following conditions:

A. For a period not to exceed one (1) year, or upon return of the Assistant City Manager/Finance Director, whichever is earlier;

B. The employment cannot exceed nine-hundred (900) hours per Fiscal Year;

C. Monthly salary of Nine Thousand Four Hundred Twenty-Two Dollars ($9,422.00), which is currently Step D in the Assistant City Manager/Finance Director salary schedule. No other benefits shall be paid to Mr. Gant; and

D. Mr. Grant will serve at the pleasure of the City Manager.

6. This Resolution shall take effect immediately after adoption by the City Council.

Passed and adopted this day of June, 2017, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Jim Soria, Mayor

of the City of Livingston

ATTEST:

I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a

regular meeting of the City Council of the City of Livingston this day of June, 2017.

2824748.4

Betty Cota, Deputy City Clerk of the City of Livingston