CC 2019-11-26_08d Interim Appointment of Admin Services Director
MEMORANDUM
TO: CITY COUNCIL
FROM: JAMES BERGMAN, CITY MANAGER
BY: LISA CHRISTENSEN, HUMAN RESOURCES MANAGER
SUBJECT: CONSIDERATION OF A RESOLUTION TO RATIFY THE APPOINTMENT
OF CAROLYN GALLOWAY-COOPER AS INTERIM DIRECTOR OF
ADMINISTRATIVE SERVICES
DATE: NOVEMBER 26, 2019
SUMMARY OF ACTION:
Ratification of the appointment of an Interim Director of Administrative Services to provide
continuity of technical support for critical functions within the Administrative Services
Department during the recruitment of a permanent Director of Administrative Services.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The employment agreement specifies an hourly rate of $61.04. Total costs will depend
on the length of service of the Interim Director of Administrative Services; however, it will
not exceed 400 hours over a three month period, for a total cost of approximately $24,416.
RECOMMENDATION:
It is recommended the City Council adopt a Resolution ratifying the appointment of
Carolyn Galloway-Cooper as Interim Director of Administrative Services.
BACKGROUND:
The City is currently recruiting for the position of Director of Administrative Services and
is in need of an Interim Director of Administrative Services to fill this critical role during
the recruitment process, which is expected to take approximately three months. The
Administrative Services Department is responsible for the entire financial, accounting and
human resources operations of the City, including the receipt, disbursement and deposit
in the treasury of all city moneys, assistance in the preparation of the city budget,
maintenance of all accounting procedures and records, utility billing and personnel
administration.
ANALYSIS OF ISSUES:
Employment of a person that is retired from CalPERS, a retired annuitant, is subject to
certain criteria and regulations specified in the Government Code. These rules are
intended to protect the public’s interest by enabling CalPERS contracting agencies the
ability to re-employ retirees, and protect the retirement system from inappropriate use or
abuse. CalPERS recognizes that retirees can play an important role in keeping city
Item 8.d. - Page 1
CITY COUNCIL
CONSIDERATION OF A RESOLUTION TO RATIFY THE APPOINTMENT OF
CAROLYN GALLOWAY- COOPER AS INTERIM DIRECTOR OF ADMINISTRATIVE
SERVICES
NOVEMBER 26, 2019
PAGE 2
business running, particularly in short term or emergency situations, but also provides
limitations on their service. The Government Code provides specific guidance on
employing a CalPERS retiree without reinstatement from retirement or loss or interruption
of retirement benefits. Specifically, Government Code Section 21221(h) applies in the
current City circumstances, where the City is seeking to fill a vacant position during the
recruitment for a permanent appointment and the position requires specialized skills. Key
terms of hiring a retired annuitant under this Code Section are:
1. Limited duration work & retiree skills: The appointment needs to be clearly
of limited duration and the vacant position must require specialized skills, which
are possessed by the retiree.
2. 960 hour limit: Retirees can work a maximum of 960 hours each fiscal year,
regardless of the number of CalPERS contracting employers they work for.
3. Rate of Pay requirement: The compensation paid to any retiree must be
within the monthly rate of pay range (not more or less than the Director of
Administrative Services pay range) and no other benefit, incentive,
compensation in lieu of benefits, or other form of compensation can be paid in
addition to this hourly pay rate.
4. Open recruitment: The interim appointment must be for a vacancy during
recruitment of a permanent appointment.
5. Enrollment in the my|CalPERS system: The City must report the pay rate
and hours worked to CalPERS through the system currently used to report
payroll.
The accompanying Resolution and Employment Agreement identify the detailed terms of
the Interim Director of Administrative Services engagement. Employing Mrs. Galloway-
Cooper in this manner will help ensure that CalPERS regulations related to retirees are
followed.
Mrs. Galloway-Cooper retired from the City of Buellton as the Finance Director in 2017.
She is a CPA and was previously the City Administrator for the City of Guadalupe. During
this fiscal year, she has been working at the City of Guadalupe as the Interim Finance
Manager. She has extensive experience with government accounting and is exceptionally
well qualified to fill the Interim Director of Administrative Services position for the City of
Arroyo Grande.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt the Resolution and Employment Agreement
2. Modify and adopt the Resolution and Employment Agreement
3. Do not adopt the Resolution and Employment Agreement; or
4. Provide direction to staff.
Item 8.d. - Page 2
CITY COUNCIL
CONSIDERATION OF A RESOLUTION TO RATIFY THE APPOINTMENT OF
CAROLYN GALLOWAY- COOPER AS INTERIM DIRECTOR OF ADMINISTRATIVE
SERVICES
NOVEMBER 26, 2019
PAGE 3
ADVANTAGES:
Hiring an Interim Director of Administrative Services will provide the leadership for the
Administrative Services Department to continue accomplishing required financial duties
while recruiting for a permanent Director of Administrative Services. Mrs. Galloway-
Cooper’s familiarity with government accounting, auditing and financial reports will enable
her to step into this role quickly and continue moving the City forward during this time.
DISADVANTAGES:
There are no disadvantages since the cost is already incorporated in the approved
Administrative Services Department budget for the Administrative Services Department.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
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.
Item 8.d. - Page 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE TO RATIFY THE APPOINTMENT
OF CAROLYN GALLOWAY-COOPER AS INTERIM
DIRECTOR OF ADMINISTRATIVE SERVICES
WHEREAS, Government (Gov.) Code section 21221(h) of the Public Employees’
Retirement Law permits the governing body to ratify the appointment of a CalPERS
retiree to a vacant position requiring specialized skills during recruitment for a
permanent appointment, and provides that such appointment will not subject the retired
person to reinstatement from retirement or loss of benefits so long as it is a single
appointment that does not exceed 960 hours in a fiscal year; and
WHEREAS, the City Council desires to ratify the appointment of Carolyn Galloway-
Cooper as an interim appointment retired annuitant to the vacant position of Director of
Administrative Services for the City of Arroyo Grande under Gov. Code section
21221(h), effective December 4, 2019; and
WHEREAS, the City Council, the City of Arroyo Grande and Carolyn Galloway-Cooper
certify that Carolyn Galloway-Cooper has not and will not receive a Golden Handshake
or any other retirement-related incentive; and
WHEREAS, an appointment under Gov. Code section 21221(h) requires that the retiree
is appointed into the interim appointment during recruitment for a permanent
appointment; and
WHEREAS, the City Manager authorized the search for a permanent appointment on
October 30, 2019; and
WHEREAS, this Gov. Code section 21221(h) appointment shall only be made once,
and therefore will end no later than February 28, 2019; and
WHEREAS, the entire employment agreement between Carolyn Galloway-Cooper and
the City of Arroyo Grande has been reviewed by this body and is attached herein as
Exhibit “A” (“Employment Agreement”); 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 monthly base salary for this position is $12,865 and the
hourly equivalent is $74.22; the minimum monthly base salary for this position is
$10,580 and the hourly equivalent is $61.04; and
WHEREAS, the hourly rate paid to Carolyn Galloway-Cooper will be $61.04; and
Item 8.d. - Page 4
RESOLUTION NO.
PAGE 2
WHEREAS, Carolyn Galloway-Cooper has not and will not receive any other benefit,
incentive, compensation in lieu of benefit, or any other form of compensation in addition
to this pay rate.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo
Grande as follows:
1. The City Council hereby certifies the nature of the employment of Carolyn
Galloway-Cooper as described herein and detailed in the Employment
Agreement, attached hereto as “Exhibit A” and incorporated herein by this
reference, and that this appointment is necessary to fill the critically needed
position of Interim Director of Administrative Services by December 4, 2019 in
order to provide specialized skills associated with the administration of finances
and human resources while the City actively recruits for and makes a permanent
appointment.
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 26th day of November, 2019.
Item 8.d. - Page 5
RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
JAMES BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.d. - Page 6
Exhibit A
Page 1 of 6
CITY OF ARROYO GRANDE
EMPLOYMENT AGREEMENT FOR INTERIM DIRECTOR OF ADMINISTRATIVE
SERVICES
THIS EMPLOYMENT AGREEMENT FOR INTERIM DIRECTOR OF
ADMINISTRATIVE SERVICES (“Agreement”) is made and entered into as of this _____ day of
November, 2019 by and between the City of Arroyo Grande (“City”), and Carolyn Galloway-
Cooper (“Galloway-Cooper”).
RECITALS
A. Pursuant to Government Code sections 7522.56(c) and 21221(h), City desires to
employ Galloway-Cooper, a California Public Employees’ Retirement System
(CalPERS) retiree, on an interim basis in the position of Director of Administrative
Services for the City while the City actively recruits a permanent Director of
Administrative Services.
B. Pursuant to Government Code sections 7522.56(c) and 21221(h), the City Council
finds that the position of Interim Director of Administrative Services requires
specialized skills and experience associated with the administration of finances and
human resources and that Galloway-Cooper possesses the skills needed to perform
the functions and duties of Interim Director of Administrative Services.
C. Galloway-Cooper desires to accept appointment to the position of Interim Director
of Administrative Services under the terms and conditions set forth below.
NOW, THEREFORE, in consideration of the above recitals and the mutual covenants
contained herein, the parties agree as follows:
1. Duties. City hereby employs Galloway-Cooper as Interim Director of
Administrative Services for the City to perform the functions and duties of the Director of
Administrative Services, as specified by position job description, and to perform such other legally
permissible and proper duties and functions as the City Manager may from time to time assign or as
may be necessary and desirable in the opinion of Galloway-Cooper, as authorized by the City
Manager, for the efficient management of the City. As her primary duties, Galloway-Cooper shall
develop the City’s 18-19 fiscal year audit schedules, Comprehensive Annual Financial Report and
finalize year end closing entries, and assist in revenue projections and budget development and assist
with Five Cities Fire Authorities’ labor negotiation scenarios.
2. Work Schedule. Galloway-Cooper is expected to engage in the hours of work that
are necessary to fulfill the duties and obligations of the position. Galloway-Cooper shall be
available during normal City business hours and may occasionally be required to attend City
Council and other meetings during non-business hours if such meetings involve areas directly
related to Galloway-Cooper’s duties. Galloway-Cooper acknowledges that her duties may
occasionally require performance of services outside of normal business hours.
Item 8.d. - Page 7
Exhibit A
Page 2 of 6
3. Work Restrictions. It is the understanding of the parties that Galloway-Cooper is a
retiree in the California Public Employees’ Retirement System (“CalPERS”) and, consequently,
she may not work more than 960 hours for all public agencies contracting with CalPERS within
the fiscal year(s) occurring during the term of this Agreement without impacting her retirement
benefits and having to be reinstated in CalPERS as an active employee. Accordingly, under no
circumstances may Galloway-Cooper work more than 960 hours during any fiscal year, defined as
the period beginning July 1st and ending June 30th of each year, including any service to other
CalPERS employers. Galloway-Cooper shall keep accurate time records of her hours worked to
ensure that she does not exceed 960 hours within any fiscal year that occurs during the term of this
Agreement and for payroll purposes. If a controversy arises between Galloway-Cooper and
CalPERS regarding the impact of this Agreement and the services provided for herein on the nature
of CalPERS retirement terms or benefits, the City shall have no obligation to intervene in or to
defend or prosecute such dispute.
4. Term. Subject to earlier termination as provided for in this Agreement, Galloway-
Cooper shall be employed for a term beginning December 4, 2019 and ending on February 28,
2020, or when a permanent Director of Administrative Services assumes office, whichever is
sooner. From December 4, 2019 through and including February 28, 2020, Galloway-Cooper shall
work such time as is professionally reasonable and practicable for purposes of attempting to ensure
a smooth transition of duties from the current Director of Administrative Services to Galloway-
Cooper. Effective December 4, 2020, Galloway-Cooper shall assume the position of Interim
Director of Administrative Services.
5. Compensation. For services rendered pursuant to this Agreement, City agrees to
pay Galloway-Cooper compensation of $61.04 per hour, which amount is in conformance with the
requirements of Government Code section 7522.56(d). This hourly rate is not more than the
maximum, nor less than the minimum, monthly base salary paid to other previous employees
performing comparable duties as listed on a publicly available pay schedule for the Director of
Administrative Services position, divided by 173.333. Galloway-Cooper shall not receive from
the City any benefits, incentives, compensation in lieu of benefits, or any other forms of
compensation in addition to the hourly rate set forth herein. The hourly wages paid pursuant to
this Agreement are subject to all applicable tax and income withholdings and deductions in
accordance with applicable law.
6. Benefits. Galloway-Cooper hereby waives all benefits provided to City employees,
including but not limited to retirement contributions, health/medical insurance, dental insurance,
life and disability insurance, sick leave, vacation, and similar benefits. Galloway-Cooper
recognizes that Government Code section 21221(h) provides that a retired person appointed to a
vacant position pursuant to that subdivision may not receive any benefits, incentives,
compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate.
7. Termination. The City may terminate this Agreement at any time with or without
cause. Galloway-Cooper may terminate this Agreement at any time with or without cause provided,
however, she shall endeavor to provide the City Council with at least thirty days advance written
notice prior to the effective date of termination. Galloway-Cooper agrees that she shall not be
entitled to any severance pay as the result of the termination of this Agreement for any reason
whatsoever.
Item 8.d. - Page 8
Exhibit A
Page 3 of 6
8. At-will Employment/FLSA Exempt. Galloway-Cooper shall serve at the will and
pleasure of the City Manager and understands she is an “at-will” employee subject to summary
dismissal without any right of notice or hearing, including any so-called “Skelly” hearing.
Galloway-Cooper will not acquire any property interest in the position of Interim Director of
Administrative Services and is employed solely on a temporary basis to perform specialized
services in accordance with Government Code sections 7522.56(c) and 21221(h). Galloway-
Cooper further understands and agrees that her position is that of an exempt employee for purposes
of the Fair Labor Standards Act.
9. Certification Regarding Prior Unemployment Benefits. In accordance with
Government Code section 7522.56(e)(1), Galloway-Cooper certifies and warrants to City that she
has not received any unemployment insurance payments for retired annuitant work for any public
employer within the twelve months prior to her appointment date under this Agreement.
10. Adequate Retirement Period. In accordance with Government Code section
7552.56(f), Galloway-Cooper warrants to City that a period of 180 days or more has passed since
the date of her most recent retirement with CalPERS.
11. Reimbursable Expenses. Galloway-Cooper shall be entitled to reimbursement for
reasonable costs or expenses incurred in the performance of her duties on behalf of the City that
are supported by written documentation in accordance with established policies and customary
practices of the City.
12. Conflicts Prohibited. During the term of this Agreement, Galloway-Cooper shall
not engage in any business or transaction or maintain any financial interest which conflicts, or
reasonably might be expected to conflict, with the proper discharge of Galloway-Cooper’s duties
under this Agreement. Galloway-Cooper shall comply with all requirements of law, including but
not limited to the Political Reform Act (Gov’t Code § 87100, et seq.), Government Code sections
1090 and 1126, and all other similar statutory or administrative rules. Galloway-Cooper represents
and warrants that she has no financial, contractual or other interest or obligation that conflicts with
or is harmful to the performance of her obligations under this Agreement.
13. Indemnification. Except as provided in paragraph 20 below, for the purposes of
indemnification and defense of legal actions that may be brought against Galloway-Cooper in the
future arising from Galloway-Cooper ’s employment with the City, Galloway-Cooper shall be
considered an employee of the City and shall be entitled to the same rights as other employees of
the City as set forth in the Government Code.
14. Notices. Any notice required or permitted by this Agreement shall be in writing
and shall be personally served or sent by U.S. Mail, first class postage prepaid, to the following
address:
To City: City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93420
Attn: City Manager
Item 8.d. - Page 9
Exhibit A
Page 4 of 6
To Galloway-Cooper : Carolyn Galloway-Cooper
Notices shall be deemed given as of the date of personal service or upon the date of deposit
in the United States Mail.
15. Entire Agreement. This Agreement supersedes any and all prior understandings
or agreements, written or oral, between the parties, and contains all of the covenants and
agreements between the parties regarding the subject matter herein. Each party acknowledges
that no promises, representations, inducements or agreements, oral or otherwise, have been made
by any party, or anyone acting on behalf of any party, that are not set forth herein. No
modification to this Agreement shall be effective unless reduced to writing and signed by both
parties.
16. Severability. In the event any provision of this Agreement is held to be
unconstitutional, invalid or unenforceable, the remainder of this Agreement or portion thereof shall
be deemed severable and shall not be affected and shall remain in full force an effect.
17. Waiver. No waiver of any provision of this Agreement shall be effective unless in
writing and signed by a duly authorized representative of the party against whom enforcement of a
waiver is sought. No waiver of any right or remedy in respect of any occurrence or event shall be
deemed a waiver of any right or remedy in respect of any other occurrence or event.
18. Governing Law and Venue. This Agreement shall be governed by and construed
in accordance with the laws of the State of California. The exclusive venue for all disputes arising
from or related to this Agreement shall be the Superior Court for the County of San Luis Obispo.
19. Interpretation. Each party and its counsel (if sought) have participated fully in the
review and revision of this Agreement. Any rule of construction to the effect that ambiguities are
to be resolved against the drafting party shall not apply in interpreting this Agreement. The
language in this Agreement shall be interpreted as to its fair meaning and not strictly for or against
any party.
20. Effect of Agreement on CalPERS Retirement Benefits. City makes no
representation on the impact, if any, this Agreement shall or may have upon Galloway-Cooper’s
CalPERS retirement benefits, status, duties and/or obligations. Galloway-Cooper acknowledges
that in entering into this Agreement, she has not relied upon any such representations in assessing
the CalPERS-related impact of her employment. Therefore, Galloway-Cooper releases City from
any and all CalPERS-related claims or liabilities that may arise in connection with her employment
pursuant to this Agreement.
21. Independent Legal Advice. City and Galloway-Cooper represent and warrant to
each other that each has read and fully understands the terms and provisions hereof, has had an
opportunity to review this Agreement with legal counsel, and has executed this Agreement based
upon such party’s own judgment and advice of independent legal counsel (if sought).
Item 8.d. - Page 10
Exhibit A
Page 5 of 6
22. Compliance with AB1344. Notwithstanding any other provision of this
Agreement, the parties agree to fully comply with the Government Code sections that are part of
AB 1344, as it was effective on January 1, 2012, (“AB 1344”) to the extent that they are applicable
to this Agreement and to fully comply with other applicable law as it exists as of the date of
execution of this Agreement. In that regard, to the extent that they are applicable to this
Agreement, the following Government Code sections are hereby incorporated into the terms of
this Agreement:
Section 53243.1. Reimbursement of legal criminal defense upon conviction of crime involving
office or position.
Section 53243.2. Reimbursement of cash settlement upon conviction of crime involving office or
position.
Section 53243.3. Reimbursement of non-contractual payments upon conviction or crime involving
office or position.
Section 53243.3. Abuse of office or position defined.
Item 8.d. - Page 11
Exhibit A
Page 6 of 6
CITY OF ARROYO GRANDE CAROLYN GALLOWAY-COOPER
Caren Ray Russom, Mayor
ATTEST:
Kelly Wetmore, City Clerk
APPROVED AS TO FORM:
Timothy J. Carmel, City Attorney
Item 8.d. - Page 12