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CC 2019-08-13_08b Delegation of Industrial Disability Authority MEMORANDUM TO: CITY COUNCIL FROM: SHANNON ESENWEIN, DIRECTOR OF ADMINISTRATIVE SERVICES BY: LISA CHRISTENSEN, HUMAN RESOURCES MANAGER SUBJECT: CONSIDERATION OF A RESOLUTION DELEGATING AUTHORITY FOR DETERMINING INDUSTRIAL DISABILITY TO THE CITY MANAGER PURSUANT TO GOVERNMENT CODE SECTIONS 21156 AND 21173. DATE: AUGUST 13, 2019 SUMMARY OF ACTION: Adoption of the Resolution delegating authority for determining Industrial Disability pursuant to Government Code Sections 21156 and 21173. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no financial impact but will result in improved staff efficiency. RECOMMENDATION: It is recommended the City Council adopt a Resolution delegating authority for determining Industrial Disability pursuant to Government Code Sections 21156 and 21173 to the City Manager. BACKGROUND: The California Public Employees’ Retirement System (CalPERS) allows Industrial Disability Retirement for Local Safety Members to be determined by either the governing body or an official delegate appointed by the governing body. Historically, staff has presented Resolutions for approval to the City Council for Industrial Disability Retirement of a Local Safety Member, which included limited confidential medical and personnel information. ANALYSIS OF ISSUES: Government Code section 21156(a)(2) provides that the board or governing body of the contracting agency shall make a determination on a member’s disability retirement on the basis of competent medical opinion and shall not use disability retirement as a substitute for the disciplinary process. Government Code section 21156(b)(1) provides that the governing body of a contracting agency upon receipt of request of the board pursuant to Government Code section 21154 shall certify to the board its determination under this Item 8.b. - Page 1 CITY COUNCIL CONSIDERATION OF A RESOLUTION DELEGATING AUTHORITY FOR DETERMINING INDUSTRIAL DISABILITY TO THE CITY MANAGER PURSUANT TO GOVERNMENT CODE SECTIONS 21156 AND 21173 AUGUST 13, 2019 PAGE 2 section that the member is or is not incapacitated. Local Safety agencies will make a medical determination for both disability retirement and industrial disability retirement. Government Code Section 21173 allows the governing body of a contracting agency to delegate any authority or duty conferred or imposed to a subordinate officer subject to conditions it may impose. Delegating the authority to determine an Industrial Disability Retirement to the City Manager is consistent with other cities and recommended by Liebert Cassidy Whitmore, the City’s outside Human Resources legal counsel. Staff will continue to follow all CalPERS application and determination requirements. It is appropriate that the medical and personnel information included in an Industrial Disability Retirement application be kept confidential and delegating the decision making authority to the City Manager would eliminate the need to bring forth these applications at a public meeting. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Approve staff’s recommendation by adopting the Resolution; 2. Do not approve staff’s recommendations; or 3. Provide direction to staff. ADVANTAGES: Adoption of the Resolution would allow the City Manager to make the determination of Industrial Disability Retirement applications, decreasing the time needed to process the Industrial Disability Retirement and keeping medical and personnel information confidential. DISADVANTAGES: No disadvantages are identified. 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.b. - Page 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DELEGATING AUTHORITY FOR DETERMINING INDUSTRIAL DISABILITY TO THE CITY MANAGER PURSUANT TO GOVERNMENT CODE SECTIONS 21156 AND 21173 WHEREAS, the City of Arroyo Grande (hereinafter referred to as Agency) is a contracting agency of the Public Employees’ Retirement System; and WHEREAS, the Public Employees’ Retirement Law requires that a contracting agency determine whether an employee of such agency in employment in which he/she is classified as a local safety member is disabled for purposes of the Public Employees’ Retirement Law and whether such disability is “industrial” within the meaning of such Law; and WHEREAS, the City Council of the City of Arroyo Grande has determined that it may delegate authority under Government Code section 21173 to make such determinations to the incumbent of the office/position of the City Manager. NOW, THEREFORE, BE IT RESOLVED: that the City Council of the City of Arroyo Grande delegate and it does hereby delegate to the incumbent of the office/position of the City Manager, authority to make applications on behalf of the Agency pursuant to Government Code section 21152(c) for disability retirements of all eligible employees and to initiate requests for reinstatement of such employees who are retired for disability; and BE IT FURTHER RESOLVED: that the City Council of the City of Arroyo Grande delegate and it does hereby delegate to the incumbent of the office/position of the City Manager, authority to make determinations of disability on behalf of the Agency under Government Code section 21156 and determine whether such disability is industrial and to certify such determinations and all other necessary information to the California Public Employees’ Retirement System. 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 13th day of August, 2019. Item 8.b. - Page 3 RESOLUTION NO. PAGE 2 CAREN RAY RUSSOM, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: JAMES A BERGMAN, CITY MANAGER APPROVED AS TO FORM: HEATHER WHITHAM, CITY ATTORNEY Item 8.b. - Page 4