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HomeMy WebLinkAbout15 AUTHORIZING THE TEMPORARY POST-RETIREMENT EMPLOYMENT OF KEN_ NISHIKAWADocusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7 MEETING DATE TO: FROM: SUBJECT: SUMMARY: Agenda Item AGENDA REPORT Reviewed: City Manager Finance Director OCTOBER 1, 2024 ALDO E. SCHINDLER, CITY MANAGER DERICK YASUDA, DIRECTOR OF HUMAN RESOURCES 15 Initial ass N/A AUTHORIZING THE TEMPORARY POST -RETIREMENT EMPLOYMENT OF KEN NISHIKAWA Adoption of the attached Resolution will authorize the City to employ Ken Nishikawa on a temporary part-time basis in the retired annuitant position of Deputy Director of Public Works — Engineering sooner than 180 days after his upcoming retirement. RECOMMENDATION: Adopt Resolution No. 24-71 authorizing the City to employ Ken Nishikawa on a temporary part- time basis in the retired annuitant position of Deputy Director of Public Works — Engineering shortly after his retirement. FISCAL IMPACT: Authorization of this position will result in a cost of up to approximately $93,000 on an annualized basis. Staff is not requesting any supplemental budget appropriations associated with this action at this time; any supplemental appropriations will be incorporated with the mid -year budget review, which will be presented to the City Council in February 2025. CORRELATION TO THE STRATEGIC PLAN: This item correlates to Goal A (Economic and Neighborhood Development) by enabling the City to temporarily retain an employee with extensive institutional knowledge and technical expertise related to land development engineering at Tustin Legacy. BACKGROUND AND DISCUSSION: Over 14 years ago, after a lengthy career in the private sector, Ken Nishikawa joined the City of Tustin's Public Works Department. Originally hired as the Tustin Legacy Development Services Manager, Mr. Nishikawa is currently serving as the Deputy Director of Public Works / City Engineer. Mr. Nishikawa has notified the City of his plans to retire from full-time employment, Docusign Envelope ID: 7AB05F87-574B-4CBB-8B1 1 -B9D77ED61 BD7 City Council Agenda Report Authorizing the Temporary Post -Retirement Employment of Ken Nishikawa October 1, 2024 Page 2 with December 6, 2024 as his last day of employment with the City and a CalPERS retirement date of December 7, 2024. The City has a critical and time -sensitive need for Mr. Nishikawa to return to work for the City on a temporary part-time basis after his retirement from full-time employment. Over the past year, the City has experienced turnover in the Engineering Division of the Public Works Department. Mr. Nishikawa has significant institutional knowledge and technical expertise in private and public land development engineering and has been essential in the development of Tustin Legacy. Mr. Nishikawa's continued services are needed immediately to assist with the coordination of approximately $90 million in critical capital improvement projects throughout Tustin Legacy, with projects in varying stages of design and/or construction, over the next two years. Mr. Nishikawa is uniquely qualified to assist with these high -profile development activities, which require complex construction sequencing and coordination of overlapping projects. Mr. Nishikawa also has the technical ability and experience to support key City initiatives like the Tustin Legacy Specific Plan Amendment and subsequently update technical documents to support City land development objectives. If he is re -hired into the proposed retired annuitant position, Mr. Nishikawa's focus with be on the following key projects: Armstrong Pedestrian Bridge, Tustin Legacy Park Phase II, Neighborhood D South Infrastructure, Tustin Legacy Specific Area Master Plan, and Neighborhood G Grading and Infrastructure. Individuals who have retired from CalPERS are referred to as "retired annuitants". Pursuant to State law, retired annuitants are only permitted to work for the City (or any CalPERS employer) without reinstating to active CalPERS membership in very limited situations, and must meet specific requirements set forth in Government Code sections 7522.56 and either 21221(h) or 21224. Among the requirements are the individual must have specialized skills that are needed to perform work of a limited duration, the individual's employment must be limited to 960 hours or less in a fiscal year, the individual's rate of pay must fall within the established salary range for individuals performing similar work, and the individual must not receive any other benefits or compensation besides an hourly wage. The proposed retired annuitant appointment of Mr. Nishikawa meets all of these requirements. Government Code section 7522.56 also generally requires a 180-day wait period before a CalPERS retiree can be re-employed as a retired annuitant at a CalPERS-covered agency, unless the individual is re-employed as a sworn firefighter or peace officer. However, a CalPERS retiree may be re-employed as a CalPERS retired annuitant before the expiration of a 180-day waiting period if the governing body explicitly authorizes the need to fill the position sooner by adopting a certification resolution. Mr. Nishikawa has informed the City that his last day of full- time work will be December 6, 2024, with his CalPERS retirement beginning December 7, 2024. Mr. Nishikawa has agreed to return to work for the City as a retired annuitant in a temporary "extra help" capacity, effective December 10, 2024. Since Mr. Nishikawa's planned start date as a retired annuitant is less than 180 days after his retirement, City Council authorization is required. By adopting Resolution No. 24-71, the City will be permitted to re-employ Mr. Nishikawa on a temporary part-time basis in the retired annuitant position of Deputy Director of Public Works — Docusign Envelope ID: 7AB05F87-574B-4CBB-8B1 1 -B9D77ED61 BD7 City Council Agenda Report Authorizing the Temporary Post -Retirement Employment of Ken Nishikawa October 1, 2024 Page 3 Engineering on December 10, 2024. The only compensation Mr. Nishikawa will receive is an hourly salary for any hours he works, at a rate pay within the publicly available salary range for the classification of Deputy Director of Public Works — Engineering; he will receive no other compensation or benefits from the City. Mr. Nishikawa will be limited to working 960 hours or less per fiscal year in compliance with CalPERS regulations, and will be employed at -will, so this assignment may be terminated by either party at any time. The City currently expects to employ Mr. Nishikawa in this limited duration retired annuitant position through no later than December 31, 2026. Derick Yasuda Director of Human Resources Attachment: 1. City Council Resolution No. 24-71 2. Personnel Appointment Documents for Ken Nishikawa (Personnel Action Form and CalPERS Retired Annuitant Compliance Checklist) Docusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7 RESOLUTION NO. 24-71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING THE POST -RETIREMENT EMPLOYMENT OF KEN NISHIKAWA SOONER THAN 180 DAYS AFTER RETIREMENT WHEREAS, in compliance with Government Code section 7522.56 of the Public Employees' Retirement Law, the City Council must provide CalPERS this certification resolution when hiring a retiree before 180 days has passed since their retirement date; and WHEREAS, Ken K. Nishikawa, CalPERS ID 1602272402, will retire from the City of Tustin in the position of Deputy Director of Public Works / City Engineer, effective December 7, 2024; and WHEREAS, Government Code section 7522.56 requires that post -retirement employment commence no earlier than 180 days after the retirement date, which is June 5, 2025 unless the City Council adopts a certification resolution; and WHEREAS, Government Code section 7522.56 provides that this exception to the 180-day wait period shall not apply if the retiree accepts any retirement -related incentive; and WHEREAS, the City Council, the City of Tustin, and Ken K. Nishikawa certify that Ken K. Nishikawa has not and will not receive a Golden Handshake or any other retirement -related incentive; and WHEREAS, the City Council hereby appoints Ken K. Nishikawa as an extra help retired annuitant to perform duties of a Deputy Director of Public Works — Engineering for the City of Tustin under Government Code section 21224, effective December 10, 2024; and WHEREAS, the entire employment agreement, contract or appointment document between Ken K. Nishikawa and the City of Tustin has been reviewed by this body and is attached hereto; 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 for all CalPERS employers that Ken K. Nishikawa may be employed by as of December 10, 2024; and Resolution 24-71 Page 1 of 3 Docusign Envelope ID: 7AB05F87-574B-4CBB-8B1 1 -B9D77ED61 BD7 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; and WHEREAS, the maximum base salary for this position is currently $95.62 per hour and the minimum base salary for this position is currently $71.02 per hour; and WHEREAS, the hourly rate paid to Ken K. Nishikawa will be $95.62; and WHEREAS, Ken K. Nishikawa 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; and NOW, THEREFORE, BE IT RESOLVED THAT the City Council hereby certifies the nature of the employment of Ken K. Nishikawa as described herein and detailed in the attached personnel appointment documents and that this appointment is necessary to fill the critically needed position of Deputy Director of Public Works — Engineering for the City of Tustin by December 10, 2024. Over the past year, the City has experienced significant turnover in the Engineering Division of the Public Works Department. Mr. Nishikawa has significant institutional knowledge and technical expertise in private and public land development engineering and has been essential in the development of Tustin Legacy. Mr. Nishikawa's continued services are needed immediately to assist with the coordination of approximately $90 million in critical capital improvement projects throughout Tustin Legacy, with projects in varying stages of design and/or construction, over the next two years. Mr. Nishikawa is uniquely qualified to assist with these high - profile development activities, which require complex construction sequencing and coordination of overlapping projects. Mr. Nishikawa also has the technical ability and experience to support key City initiatives like the Tustin Legacy Specific Plan Amendment and subsequently update technical documents to support City land development objectives. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 1 st day of October 2024. AUSTIN LUMBARD, Mayor ATTEST: ERICA N. YASUDA, City Clerk Resolution 24-71 Page 2of3 Docusign Envelope ID: 7AB05F87-574B-4CBB-8B1 1 -B9D77ED61 BD7 APPROVED AS TO FORM: DocuSigned by: 7�'Z'179 DA $E3 I&RDIG, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 24-71 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 1st day of October 2024, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: COUNCILMEMBER RECUSED: ERICA N. YASUDA, City Clerk Resolution 24-71 Page 3 of 3 Docusign Envelope ID: 7AB05F87-574B-4CBB-8B1 1 -B9D77ED61 BD7 EMPLOYEE INFORMATION Employee Name Ken Nishikawa Current Classification Deputy Director of PW / CE Employee Number Department / Division Name & Code 01431 Public Works 4010 WORK SCHEDULE & WORK PERIOD Work Schedule: FLSA Work Period: FLSA Work Period Beginning Day (Civilian): ❑ 9/80 ❑ 3/12.5 ❑ Sworn (28 days) ❑ 4/10 ❑ 5/8 ❑ Civilian (7 days) FLSA Work Period Beginning Time (Civilian): Human Resources Current Salary Step $ 95.62 / hour F Effective Date of Action 12/10/2024 Shift (9/80 only): ❑A ❑B ❑ Other PROBATIONARY PERIOD (COMPLETE FOR PROBATIONARY EMPLOYEES ONLY) Type: ❑ Original Length: ❑ 12 months Status: ❑ Beginning ❑ In Progress ❑ Passed ❑ Promotional ❑ 18 months ❑ Extend (specify): ❑ None (At -will) ❑ Other (specify): PERSONNEL ACTION ® NEW HIRE ❑ PROMOTION / ❑ DEMOTION ❑ RECLASSIFICATION ❑ TRANSFER ❑ ACTING APPOINTMENT ❑ MERIT INCREASE ❑ OTHER COMPENSATION Classification: Dep. Director of PW-Engineering Salary: $ 95.62 / hour Step: G Status: ❑ Full-time ❑ Part-time Benefitted ❑ Part-time Non-benefitted (Hourly/At-will) ❑ Temporary (At -will) ❑ Other At -will (specify): New Classification: Salary: $ / hour Step: Status: ❑ Full-time ❑ Part-time Benefitted ❑ Part-time Non-benefitted (Hourly/At-will) New Department/Division Name & Code (if applicable): New Classification: Salary: $ / hour Step: Status: ❑ Full-time ❑ Part-time Benefitted ❑ Part-time Non-benefitted (Hourly/At-will) New Department/Division Name & Code (if applicable): Acting Classification: Action: ❑ Start ❑ Stop New Salary: $ / hour Step: Next Review Date: / / Action: ❑ Start Type: ❑ Bilingual ❑ Education Incentive ❑ Certification ❑ Stop ❑ Career Officer ❑ Special Assignment ❑ Training ❑ Uniform ❑ Shift Differential ❑ Auto Allowance ❑ Other (specify): ❑ EVALUATION ONLY Type: ❑ 6 mo. ❑ Annual ❑ 18 mo. ❑ PIP ❑ Other Next Review Date: ❑ WORK SCH/PER CHANGE ONLY Complete the above Work Schedule & Work Period section ❑ SEPARATION Type: ❑ Resignation ❑ Service retirement ❑ Failed probation Eligible for Rehire: ❑ Discharge ❑ Disability retirement ❑ Yes ❑ No COMMENTS Limited duration Retired Annuitant assignment pursuant to Government Code section 21224. See CAPERS Retired Annuitant Compliance Checklist and City Council Agenda Report dated October 1, 2024. SIGNATURES Emgooe9 ed by: Date g;�yjnan Resources Date ,ln, L 09/23/24 �a �� 09/23/24 Manager Date Date Signed by: 09/23/24 ah S&iln,d,(,v Department Head Date ur�yA��6£&$ Use Only Signed by: I � 09/23/24 White Card: HRIS: Verified: C2C8D60E5FD34CC... Docusign Envelope ID: 7AB05F87-574B-4CBB-8B1 1 -B9D77ED61 BD7 Human Resources EMPLOYEE INFORMATION Name Classification Department Ken Nishikawa Deputy Director of PW—Engineering Public Works Date of Appointment Estimated Length of Appointment 12/10/2024 Approximately 2 years CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT LAW (PERL) Under California state law, an individual who is receiving CalPERS retirement benefits is generally prohibited from working for a CaIPERS employer unless that individual reinstates to active CAPERS membership. However, an individual may lawfully work for a CalPERS employer as a "retired annuitant" without reinstatement under certain specified circumstances as specified in the PERL (see Government Code Sections 21221, 21224, 7522.56, and 586.2). Consequences of unlawful employment may include a) reimbursement to CaIPERS for any retirement allowance received during the period of employment that is in violation of the law, b) retroactive payment to CaIPERS for all member and employer contributions for the period of unlawful employment, plus interest, and c) reimbursement to CAPERS for administrative expenses. DEPARTMENT HEAD ACKNOWLEDGEMENT AND CERTIFICATION With my signature below, 1 acknowledge that 1 am fully aware of CaIPERS' regulations on employment after retirement and the consequences to the employee and the City of unlawful employment. Check the box for each item that applies: ® The retiree has specialized skills needed to perform work of limited duration ❑ The retiree is needed during an emergency to prevent stoppage of public business ® The retiree's employment will not exceed 960 hours worked in a CalPERS fiscal year (July 1 - June 30) ® The retiree's rate of pay is not less than the minimum, nor more than the maximum, paid by the City to other employees performing comparable duties, as listed on a publicly available pay schedule ® The retiree will not receive any other benefit, incentive, or compensation in addition to the hourly pay rate Si a Date � Gvissa 09/23/24 C2CSD60ESFD34CC... RETIREE ACKNOWLEDGEMENT AND CERTIFICATION With my signature below, 1 acknowledge that 1 am fully aware of CaIPERS' regulations on employment after retirement and the consequences to the employee and the City of unlawful employment. Check the box for each item that applies: ® I will not be working for any other CalPERS-covered employer during my appointment to this position ❑ I retired more than 180 days prior to my appointment to this position ® I am at or above the normal service retirement age (the highest formula age applicable to my retirement) ® I have not received unemployment benefits for work as a retired annuitant within 12 months of appointment ® I have specialized skills needed to perform work of limited duration ❑ I am needed during an emergency to prevent stoppage of public business ❑ I understand my employment will not exceed 960 hours worked in a CaIPERS fiscal year (July 1 - June 30) ® I acknowledge that my rate of pay is not less than the minimum, nor more than the maximum, paid by the City to other employees performing comparable duties, as listed on a publicly available pay schedule ® I accept that I will not receive any other benefit, incentive, or compensation in addition to the hourly pay rate ® I am aware that my hours and wages will be reported to CalPERS via the myCalPERS system ii mature Date ...Signed by: 09/23/24 �t,ln, I�fS�,i�CaWa