PREPARED BY: ALICIA PLATT DATE OF MEETING: 10/20/2025
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO (1) AUTHORIZING THE TEMPORARY APPOINTMENT OF JILL MERCURIO TO FILL THE POSITION OF PUBLIC WORKS DIRECTOR/CITY ENGINEER PURSUANT TO GOVERNMENT CODE SECTION 21221(G); AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A RETIRED ANNUITANT EMPLOYMENT AGREEMENT WITH JILL MERCURIO PURSUANT TO APPLICABLE CALPERS’ POST-RETIREMENT WORK RESTRICTIONS
ceqa: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
FY 2025-2027 Council Priority Workplan Compliance Statements:
This item is not in the City’s Priority Workplan but is essential to meet critical operational needs and workload demands in the Public Works Department.
CEQA Compliance Statement
This proposed action is not a project as defined by CEQA.
BACKGROUND
The City’s current Public Works Director/City Engineer is currently on an approved leave of absence under the Family and Medical Leave Act (FMLA). At this time, the employee has not provided a defined return-to-work date. This position is critical to the City’s operations, including oversight of capital improvement projects, public infrastructure, engineering review, and compliance with state and federal regulations.
To ensure continuity of service, the City proposes a temporary appointment under the authority of the Public Employees’ Retirement Law (PERL) and the Public Employees’ Pension Reform Act of 2013 (PEPRA). Specifically, this appointment is made pursuant to Government Code Section 21221(g) and is subject to the post-retirement employment restrictions outlined in Government Code Section 7522.56.
Government Code Section 21221(g) allows a CalPERS contracting agency to temporarily appoint a retired person to a position if the governing body, by resolution, finds:
• The position is vacant due to a leave of absence granted to a current employee on payroll status for a period not to exceed one year; and
• The position requires specialized skills.
The law further provides:
“The temporary employment shall be terminated at the end of the leave of absence. Appointments under this section shall be reported to the CalPERS board and shall be accompanied by the resolution adopted by the governing body.”
Additionally, Government Code Section 7522.56 sets forth PEPRA requirements for post-retirement employment, which include:
• A limit of 960 hours per fiscal year for all CalPERS-covered employment;
• The appointment must be temporary and not used to fill a permanently vacant position;
• The retiree must not have received unemployment insurance compensation for retired annuitant work within the prior 12 months; and
• Compensation must not exceed the maximum hourly rate paid to other employees performing comparable duties.
Both findings apply in this case. The Public Works Director/City Engineer role requires extensive technical, regulatory, and managerial expertise. Jill Mercurio, a CalPERS retiree, previously served in this exact role for the City of San Pablo from March 2018 to May 2022, and possesses the specialized knowledge, experience, and familiarity with City operations to assume the position immediately with minimal onboarding or disruption.
Staff recommends that the City Council adopt a resolution authorizing the temporary appointment of Jill Mercurio to fill the position of Public Works Director/City Engineer during the current employee’s approved leave of absence, and further authorizing the City Manager to enter into a Retired Annuitant Employment Agreement with Jill Mercurio pursuant to Government Code Section 21221(g)
FISCAL IMPACT
The current Public Works Director/City Engineer remains on payroll status while on an approved leave of absence, utilizing accrued paid leave balances. As a result, the cost of the temporary Retired Annuitant appointment will be in addition to the ongoing salary payments being made to the current employee.
Jill Mercurio, as a retired annuitant, will be compensated at an hourly rate not exceeding the maximum base hourly rate paid for comparable duties prior to her retirement, in accordance with CalPERS post-retirement employment rules. Her appointment will be limited to 960 hours during the fiscal year.
Funding for this temporary appointment will be covered by salary savings in the City Manager’s Office for FY 2025-26 from Fund 100-1310-41000. The salary savings were generated due to the Assistant City Clerk vacancy. No additional appropriations are required to fund this limited term appointment.
ATTACHMENTS:
1) Draft Resolution - Authorizing Appointment Under Government Code Section 21221(g)
2) Draft Retired Annuitant Employment Agreement - Jill Mercurio
3) CalPERS Government Code 21221(g)