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HomeMy WebLinkAbout12 AUTHORIZING THE TEMPORARY POST-RETIREMENT EMPLOYMENT OF ROBERT HERNANDEZDocusign Envelope ID: ABFD2DF1-CC9B-4C45-9BOF-8DO186BOCAC1 MEETING DATE TO: FROM: SUBJECT: SUMMARY: Agenda Item 12 AGENDA REPORT Reviewed: Qlei City Manager In ial Finance Director DECEMBER 16, 2025 ALDO E. SCHINDLER, CITY MANAGER DERICK YASUDA, DIRECTOR OF HUMAN RESOURCES AUTHORIZING THE TEMPORARY POST -RETIREMENT EMPLOYMENT OF ROBERT HERNANDEZ Adoption of the attached Resolution will authorize the City to employ Robert Hernandez as a retired annuitant in the classification of Water Meter Reader sooner than 180 days after his upcoming retirement, pursuant to Government Code sections 7522.56 and 21224. RECOMMENDATION: Adopt Resolution No. 25-76 authorizing the City to employ Robert Hernandez as a retired annuitant to fill the critically needed extra help assignment of training the next employee hired into the classification of Water Meter Reader. FISCAL IMPACT: Authorization of this appointment will result in an estimated cost of $14,000 over the next few months. 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 2026. CORRELATION TO THE STRATEGIC PLAN: This item correlates to Goal E (Organizational Excellence and Customer Service) by using a retired employee's specialized expertise to train and develop a new Water Meter Reader, ensuring continuity of water utility operations and high -quality customer service. BACKGROUND AND DISCUSSION: Robert Hernandez currently serves as one of the City's two full-time Water Meter Readers. Mr. Hernandez has notified the City of his intent to retire from full-time employment, with December 25, 2025 as his last day of employment with the City and his CalPERS retirement effective December 26, 2025. Docusign Envelope ID: ABFD2DF1-CC9B-4C45-9BOF-8DO186BOCAC1 City Council Agenda Report Authorizing the Temporary Post -Retirement Employment of Robert Hernandez December 16, 2025 Page 2 The Water Meter Reader classification performs essential field work necessary to support accurate water consumption measurement, customer billing, water demand management, and conservation efforts. The position requires detailed knowledge of meter locations and routes, the City's meter reading and billing systems, and field safety practices. Over his many years of service, Mr. Hernandez has developed extensive institutional knowledge and route -specific expertise that is not easily or quickly replaced. The City employs only two Water Meter Readers, both of whom have been in the role for many years and have developed extensive knowledge of the City's routes, systems, and field practices. With Mr. Hernandez retiring, the City will be hiring its first new Water Meter Reader in a long time. A new employee will need focused, hands-on training to become proficient in navigating established routes, using meter reading equipment and software, and applying field safety and customer service practices. The remaining Water Meter Reader must continue to perform day-to-day operational duties. Expecting him to fully train a new employee while maintaining existing workload and service levels would significantly extend the training timeline and increase the risk of delayed or inaccurate meter reads, billing issues, and customer complaints. By temporarily appointing Mr. Hernandez as a retired annuitant, the City will be able to use his significant experience to provide focused training and knowledge transfer to the new Water Meter Reader, while allowing the remaining Water Meter Reader to maintain ongoing operations. The City is in the final stages of selecting a new Water Meter Reader. Because the City Council will not meet again until January, staff is requesting approval of the required CalPERS 180-day exception resolution at this time so that the City may proceed with the retired annuitant appointment promptly once the new Water Meter Reader is hired. CalPERS Retired Annuitant Requirements Individuals who have retired from CalPERS are referred to as "retired annuitants." Under Government Code section 21224, a CalPERS contracting agency may appoint a retired annuitant to perform work of limited duration in an "extra help" capacity, without reinstatement to active membership, under certain conditions. Among these conditions are: • The assignment must involve specialized skills needed to perform work of limited duration; The retired annuitant's employment must be limited to 960 hours or less in a fiscal year for all CalPERS employers combined; • The rate of pay must fall within the established, publicly available salary range for individuals performing comparable duties and may not be less than the minimum nor exceed the maximum of that range; Docusign Envelope ID: ABFD2DF1-CC9B-4C45-9BOF-8DO186BOCAC1 City Council Agenda Report Authorizing the Temporary Post -Retirement Employment of Robert Hernandez December 16, 2025 Page 3 • The retired annuitant must not receive any additional benefits, incentives, or compensation in lieu of benefits beyond an hourly wage; and • The retired annuitant must certify in writing that they have not received unemployment insurance compensation in the preceding 12 months based on prior retired annuitant employment with any CalPERS employer. Under the Public Employees' Pension Reform Act (PEPRA) and Government Code section 7522.56, a CalPERS retiree is generally prohibited from returning to work for a CalPERS employer for a period of 180 days following the date of retirement, unless a specific statutory exception applies. One such exception allows a CalPERS retiree to be re-employed as a retired annuitant before the expiration of the 180-day waiting period if the governing body: • Certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed; and • Approves the appointment in a public meeting as a separate action item (i.e., not on the Consent Calendar). If a CalPERS member retires before their normal retirement age, there is an additional 60-day "bona fide separation in service" requirement on top of the usual 180-day wait rules. However, since Mr. Hernandez is retiring after his normal retirement age, this requirement does not apply to his employment. The proposed retired annuitant appointment of Mr. Hernandez as an extra help Water Meter Reader under Government Code section 21224 meets all requirements stated above. Following City Council approval of this retired annuitant employment, and consistent with CalPERS 180- day exception procedures, the personnel appointment documents for this assignment (Personnel Action Form and CalPERS Retired Annuitant Compliance Checklist), the applicable salary schedule, and the adopted Resolution will be submitted to CalPERS before Mr. Hernandez begins any post -retirement work with the City as a retired annuitant. Mr. Hernandez will not perform any work as a retired annuitant until all CalPERS post -retirement employment requirements have been satisfied. Derick Yasuda Director of Human Resources Attachment: 1. City Council Resolution No. 25-76 2. Personnel Appointment Documents for Robert Hernandez (Personnel Action Form and CalPERS Retired Annuitant Compliance Checklist) Docusign Envelope ID: ABFD2DF1-CC9B-4C45-9BOF-8DO186BOCAC1 RESOLUTION NO. 25-76 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING THE POST -RETIREMENT EMPLOYMENT OF ROBERT HERNANDEZ SOONER THAN 180 DAYS AFTER RETIREMENT WHEREAS, in compliance with Government Code section 7522.56 of the Public Employees' Retirement Law, the City Council of the City of Tustin must provide CalPERS this certification resolution when hiring a non-public safety officer retiree before 180 days has passed since his or her retirement date; and WHEREAS, Robert R. Hernandez, CalPERS ID 7090041092, will retire from the City of Tustin in the position of Water Meter Reader, with a CalPERS retirement date of December 26, 2025; 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 25, 2026 without this 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 Robert R. Hernandez certify that Robert R. Hernandez has not and will not receive a Golden Handshake or any other retirement -related incentive; and WHEREAS, the City Council hereby appoints Robert R. Hernandez as a retired annuitant to fill the critically needed extra help assignment of training the next employee hired into the classification of Water Meter Reader for the City of Tustin under Government Code section 21224; and WHEREAS, the entire appointment document between Robert R. Hernandez 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; and WHEREAS, the compensation paid to retired annuitants 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 Resolution 25-76 Page 1 of 3 Docusign Envelope ID: ABFD2DF1-CC9B-4C45-9BOF-8DO186BOCAC1 WHEREAS, the maximum base salary for this classification is currently $40.38 per hour and the minimum base salary for this classification is currently $29.99 per hour; and WHEREAS, the hourly rate paid to Robert R. Hernandez will be $40.38; and WHEREAS, Robert R. Hernandez 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 Robert R. Hernandez as described herein and detailed in the attached personnel appointment document and that this appointment is necessary to fill the critically needed extra help assignment of training the next employee hired into or transferred into the classification of Water Meter Reader for the City of Tustin by January 15, 2026 or the day new Water Meter Reader to be trained by Robert R. Hernandez begins work for the City of Tustin, whichever is later. The City employs only two Water Meter Readers, both of whom have been in the role for over a decade and have developed extensive institutional knowledge of the City's routes, systems, and field practices. With one of these employees retiring, the City will be hiring its first new Water Meter Reader since 2010. A new employee will need focused, hands-on training to become proficient in navigating established routes, using meter reading equipment and software, and applying field safety and customer service practices. Temporarily appointing Robert R. Hernandez as a retired annuitant will allow the City to transfer this specialized knowledge in a structured way, while the remaining Water Meter Reader continues to perform ongoing operational duties and maintain timely, accurate meter reading and billing. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 16t" day of December 2025. AUSTIN LUMBARD, Mayor ATTEST: ERICA N. YASUDA, City Clerk Resolution 25-76 Page 2 of 3 Docusign Envelope ID: ABFD2DF1-CC9B-4C45-9BOF-8DO186BOCAC1 APPROVED AS TO FORM: F cuSigned by: Z'179 DA $EAKEKDIG, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica 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. 25-76 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 16t" day of December 2025, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA, City Clerk Resolution 25-76 Page 3 of 3 Docusign Envelope ID: ABFD2DF1-CC9B-4C45-9BOF-8DO186BOCAC1 EMPLOYEE INFORMATION Employee Name Current Classification Robert Hernandez Water Meter Reader Employee Number Department / Division Name & Code 01428 Finance 2521 WORK SCHEDULE & WORK PERIOD Work Schedule: FLSA Work Period: FLSA Work Period Beginning Day (Civilian): ❑ 9/80 ❑ 3/12.5 ❑ Sworn (23 days) ❑ 4/10 ❑ 5/8 ❑ Civilian (7 days) FLSA Work Period Beginning Time (Civilian): TW Human Resources Current Salary Step $ 40.38 / hour G Effective Date of Action 01/19/2026 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 Classification: Water Meter Reader (Part -Time) Salary: $ 40.38 / hour Step: G Status: ❑ Full-time ❑ Part-time Benefitted ❑ Part-time Nan-benefitted (Hourly/At-will) ❑ Temporary (At -will) ❑ Other At -will (specify): ❑ PROMOTION New Classification: Salary: $ / hour Step: ❑ DEMOTION Status: ❑ Full-time ❑ Part-time Benefitted ❑ Part-time Non-benefitted (Hourly/At-will) New Department/Division Name & Code (if applicable): ❑ RECLASSIFICATION New Classification: Salary: $ / hour Step: Status: ❑ Full-time ❑ Part-time Benefitted ❑ Part-time Non-benefitted (Hourly/At-will) ❑ TRANSFER New Department/Division Name & Code (if applicable): ❑ AGING APPOINTMENT Acting Classification: Action: ❑ Start ❑ stop ❑ MERIT INCREASE New Salary: $ / hour Step: Next Review Date: ❑ OTHER COMPENSATION 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 Retired Annuitant "extra help" appointment pursuant to Government Code section 21224. Employment subject to CaIPERS restrictions and limitations for retired annuitant employment, as summarized on CaIPERS Retired Annuitant Compliance Checklist. Employee is responsible for understanding CalPERS requirements for employment after retirement. Employment is at -will in a Part -Time Non-Benefitted position. SIGNATURES E �ioya Date jt�-� Supe isor / 0'aI i onager Da te Department Head + Date 12J° Director of Human Resources Date Docu&gned by: �•� .a 12/10/25 i ;nA Ja Date aignea oy: 12/10/25 urt g&,w1M&Use Only white Cord: HR15: Verified: Docusign Envelope ID: ABFD2DF1-CC9B-4C45-9BOF-8DO186BOCAC1 �S'T* ■NMI:-. EMPLOYEE INFORMATION Name Classification Department Robert Hernandez Water Meter Reader Finance Date of Appointment Estimated Length of Appointment 01.19.26 (tentative) 2 months CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT LAW (PERL) Under California state law, an individual who is receiving CaIPERS retirement benefits is generally prohibited from working for a CaIPERS employer unless that individual reinstates to active CaIPERS membership. However, an individual may lawfully work for a CaIPERS 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 CaIPERS for administrative expenses. DEPARTMENT HEAD ACKNOWLEDGEMENT AND CERTIFICATION With my signature below, I acknowledge that 1 am fully aware of CalPERS' 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 CaIPERS 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 Signature Date v 111 RETIREE ACKNOWLEDGEMENT AND CERTIFICATION With my signature below, I acknowledge that I am fully aware of ColPERS' 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 CaIPERS-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) ® 1 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 2 1 am aware that my hours and wages will be reported to CaIPERS via the myCaIPERS system