PREPARED BY: TINA GALLEGOS DATE OF MEETING: 03/20/17
SUBJECT:
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO RESCINDING RESOLUTION 2017-033 AND ADOPTING A REVISED RESOLUTION APPOINTING CALPERS RETIRED ANNUITANT WALTER N. SCHULD TO THE POSITION OF INTERIM CHIEF OF POLICE AND APPROVING A REVISED EMPLOYMENT CONTRACT PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTIONS 21221(H)
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
The proposed contract is consistent with the following adopted policy items under the FY2015/17 Council Priority Workplan, effective October 1, 2016: Public Safety and Fiscal Sustainability.
CEQA Compliance Statement
This is not a project as defined by CEQA.
BACKGROUND
On February 21, 2017, the City Council adopted Resolution #2017-033 appointing retired annuitant Walter N. Schuld to the position of Interim Chief of Police and approving an employment agreement. After further review of the annuitant contract approved by said resolution, the section titled Retired Annuitant Status and Indemnification is now proposed to be amended as Mr. Schuld objected to indemnifying the City in the event of some dispute regarding CalPERS retirement restrictions. All other aspects of the contract remain the same and were detailed in the staff report of February 21, 2017 on this matter.
The language in the original contract approved on February 21, 2017 was as follows:
Retired Annuitant Status and Indemnification
If you have questions relating to employment after retirement, you should consult CalPERS directly at 888-225-7377 or www.calpers.ca.gov <http://www.calpers.ca.gov> for more information.
You agree to assume all risk if CalPERS retirement restrictions are deemed applicable and you are required to reinstate employment and rescind your retirement if determined by CalPERS. In such a situation, you agree to defend and indemnify the City from and against any and all claims, administrative procedures, liabilities, damages, penalties, fines, and expenses incurred against both you and/or the City.
The new language proposed is:
Retired Annuitant Status and Indemnification
If you have questions relating to employment after retirement, you should consult CalPERS directly at 888-225-7377 or www.calpers.ca.gov <http://www.calpers.ca.gov> for more information.
The CalPERS publication titled Employment after Retirement outlines the conditions and limitations of service after retirement and can be found at:
www.calpers.ca.gov/docs/forms-publications/employment-after-retirement.pdf <http://www.calpers.ca.gov/docs/forms-publications/employment-after-retirement.pdf>
By amending the contract language, the City and Mr. Schuld agree that should any issues arise from this post retirement employment opportunity, these would be settled in accordance with CalPERS conditions and limitations regulations governing such employment. CalPERS has reviewed the contract and not raised any objections at this time.
FISCAL IMPACT
The annuitant will be compensated at the monthly salary maximum permissible for this position $101.54 per hour ($17,600 monthly salary/173.333 hours per month) in accordance with the City’s adopted salary schedule for the Chief of Police classification for FY 2016/17 and will receive no other benefit, incentive, compensation in lieu of benefits, or other form of compensation in addition to the hourly pay rate.
If the annuitant worked from March 1 through the end of the fiscal year, the total cost of the contract would be $70,400; although he is now expected to start work on March 21, 2017. This expense is not currently budgeted but will be covered in this fiscal year and into the next fiscal year if necessary by salary savings from the vacant permanent position until a new permanent appointment is made by the City Manager to the Chief of Police position following a nation-wide recruitment by executive search firm under contract.