The URL can be used to link to this page

Home My WebLink AboutCC 2026-06-09_11a Appointment of CalPERS Retired AnnuitantItem 11.a. MEMORANDUM TO: City Council FROM: Matthew Downing, City Manager BY: Ashley Garcia, Human Resources Officer SUBJECT: Critical Need Justification for Appointment of CalPERS Retired Annuitant DATE: June 9, 2026 RECOMMENDATION: Adopt a Resolution approving the temporary appointment of Shane Taylor as a CalPERS retired annuitant prior to the expiration of the 180 -day waiting period pursuant to Government Code section 7522.56(f) and 21224. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The appointment is an estimated 400 hours of retired annuitant – Extra Help to be budgeted in FY 2026-27 and FY 2027-28. The appointment would be temporary and intended to address the City’s immediate operational and water resilience needs. The appointment will comply with all applicable statutory limitations governing retired annuitant employment, including:  Maximum 960-hour limitation per fiscal year;  Hourly compensation requirements;  No additional employment benefits;  Temporary duration only (limited to two years, July 31, 2026 – July 31, 2028). BACKGROUND: Shane Taylor retired from City service on May 29, 2026. While a new Utilities Manager has been hired and is effectively managing day-to-day operations of the division, there are certain remaining special projects for which the City will benefit from access to Mr. Taylor’s institutional knowledge during a critical operational period over the ne xt two years. CalPERS regulations are specific about participating agencies hiring retired annuitants prior to a 180-day waiting period. To ensure compliant hiring practices with the California Public Employees’ Retirement Law (PERL), the City must meet and document a critical need standard. The governing body must adopt a resolution in a public meeting Page 243 of 427 Item 11.a. City Council Critical Need Justification for Appointment of CalPERS Retired Annuitant May 26, 2026 Page 2 before the retiree starts work, stating the critical need, describing specialized skills, and confirming the hire is temporary and necessary. The City currently faces an immediate operational need requiring specialized expertise and institutional knowledge associated with its water resiliency efforts. The proposed retired annuitant previously served the City in a capacity substantially involved in:  Technical Advisory for Zone 3 – Lopez Water Project  Recent litigation against the County of San Luis Obispo concerning Lopez Lake  Institutional knowledge of Arroyo Grande’s water portfolio, including Lopez Lake, the Santa Maria Groundwater Basin, and the Pismo Fo rmation  Exploring a potential November 2026 ballot measure that, if adopted, would repeal Measure A and expand the City’s ability to buy State water  The City Council’s stated goal of Achieving Water Resilience The proposed appointment is intended to provide temporary continuity of operations and technical support during a critical operational period. The proposed retired annuitant extra help appointment is a part-time hourly role reporting directly to the City Manager with a narrow scope of water resiliency special projects, limited to 400 hours per fiscal year for a defined duration of two years. ANALYSIS OF ISSUES: The City has determined that a critical need exists based upon the following operational factors: 1. Specialized Technical Expertise The retired annuitant possesses unique technical expertise and institutional knowledge regarding water rights and local water sources, including h istorical agreements, regulatory requirements, litigation, infrastructure, and operational systems; as well as ongoing projects and strategic initiatives requiring continuity and historical context. This expertise is not currently available within existing staffing resources. 2. Operational Continuity Immediate access to the retiree’s expertise is necessary to avoid significant disruption to time-sensitive regulatory and legal obligations (Lopez Lake Litigation) and strategic initiatives adopted by the City Council (potential November 2026 State Water Ballot Measure and the City Council goal to Achieve Water Resilience). Delay associated with the standard 180-day waiting period would materially impair the City’s ability to effectively manage these responsibilities. 3. Limited Availability of Qualified Alternatives The City evaluated alternative staffing options, including reassignment of existing personnel, recruitment of temporary consultants, and external recruitment efforts. These alternatives were determined to be insufficient due to: Page 244 of 427 Item 11.a. City Council Critical Need Justification for Appointment of CalPERS Retired Annuitant May 26, 2026 Page 3  The specialized and historical nature of the knowledge required;  The immediate timeframe associated with the operational need; and  The substantial learning curve associated with the subject matter. 4. Temporary Nature of Appointment The appointment is temporary and intended solely to address the City’s immediate operational needs. The appointment will comply with all applicable statutory limitations governing retired annuitant employment, including: o Maximum 960-hour limitation per fiscal year; o Hourly compensation requirements; o No additional employment benefits; o Temporary duration only (limited to two years July 31, 2026 – July 31, 2028). The City has confirmed the following:  The appointment complies with Government Code section 7522.56(f);  The appointment is necessary due to a critical need requiring specialized skills;  Approval is being considered by the governing body in a public meeting prior to the effective appointment date. The proposed appointment is necessary to ensure continuity of operations and provide immediate access to specialized expertise critical to the City’s opera tional, legal, and strategic responsibilities. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Staff’s recommendation; 2. Do not approve the recommendation; or 3. Provide other direction to staff. ADVANTAGES: Adoption of the attached resolution will allow the City to address this temporary operational need in compliance with applicable CalPERS requirements. It is more cost- effective than external consulting alternatives and allows immediate access to specialized expertise necessary to support ongoing critical initiatives. DISADVANTAGES: If not carefully monitored, retired annuitant appointments are subject to strict CalPERS limitations regarding hours worked, compensation, and temporary status, which could expose the City to audit findings or compliance risks. ENVIRONMENTAL REVIEW: No environmental review is required for this item. Page 245 of 427 Item 11.a. City Council Critical Need Justification for Appointment of CalPERS Retired Annuitant May 26, 2026 Page 4 PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. ATTACHMENTS: 1. Resolution Page 246 of 427 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING THE TEMPORARY APPOINTMENT OF SHANE TAYLOR AS A CALPERS RETIRED ANNUITANT PRIOR TO THE EXPIRATION OF THE 180-DAY WAITING PERIOD PURSUANT TO GOVERNMENT CODE SECTIONS 7522.56(f) AND 21224 WHEREAS, in compliance with Government (Gov.) Code section 7522.56, the City Council must provide CalPERS with this certification resolution when hiring a retiree before 180 days has passed since their retirement date ; and WHEREAS, Shane Taylor, CalPERS ID 4612205440 retired from City of Arroyo Grande in the position of Utilities Manager, effective May 30, 2026; and WHEREAS, Gov. Code section 7522.56 requires post-retirement employment commence no earlier than 180 days after the retirement date, which is November 26, 2026 without this certification resolution; and WHEREAS, Gov. 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 Arroyo Grande, and Shane Taylor certify Shane Taylor has not and will not receive a Golden Handshake or any other retirement -related incentive; and WHEREAS, the City Council authorizes the City Manager to appoint Shane Taylor as an extra help retired annuitant under Gov. Code section 21224 effective July 31, 2026; 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; and 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 $11,088.68 and the hourly equivalent is $63.97 and the minimum base salary for this position is $9,122.68 and the hourly equivalent is $52.63; and Page 247 of 427 RESOLUTION NO. PAGE 2 WHEREAS, the hourly rate paid to Shane Taylor will be $63.97; and WHEREAS, Shane Taylor 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 by the City Council of the City of Arroyo Grande hereby finds, determines, and resolves as follows: 1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference. 2. The City Council hereby certifies the nature of the appointment of Shane Taylor as described herein and detailed in the attached employment appointment document and that this appointment is necessary to fill the critically needed functions associated with special projects of the Utilities Division. 3. The City Council hereby waives the 180-day waiting period pursuant to Government Code Section 7522.56(f)(1). On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 9th day of June, 2026. Page 248 of 427 RESOLUTION NO. PAGE 3 CAREN RAY RUSSOM, MAYOR ATTEST: JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: MATTHEW DOWNING, CITY MANAGER APPROVED AS TO FORM: ISAAC ROSEN, CITY ATTORNEY Page 249 of 427