Item 34 - Appointment of Interim City Manager

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Appointment of Interim City Manager November 21, 2023 Page 2 3 8 9 3 Mr. Hatch is a CalPERS retiree and as such, his appointment must comply with the working after retirement rules set forth in the Government Code and CalPERS Regulations, including limiting payment to an hourly rate pursuant to an adopted salary range. Interim City Manager Appointment Government Code Section 21221(h) permits the City Council to appoint 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 retiree to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours. The rate of pay for an Interim City Manager who is retired from CalPERS is dictated by law and governed by Government Code Sections 21221(h) and 7522.56. Specifically, Section 7522.56(d) – which supersedes Section 21221(h) to the extent of conflicts – provides that “the rate of pay for the employment shall not be less than the minimum, not exceed the maximum, paid by the employer to other employees performing comparable duties, divided by 173.333 to equal an hourly rate.” Section 21221(h) further provides that this rate must be “listed on a publicly available pay schedule for the vacant position.” The City Manager’s salary is set by contract and is reflected as a fixed amount on the City’s publicly available pay schedule, not a range. Thus, the hourly rate to be paid to Mr. Hatch, as Interim City Manager, will be a pay rate of $156.82. He will not receive any other compensation or benefits, unless required by federal or state law. Government Code Section 21221(h) further requires that the appointment to a vacant position be made by the City Council. As such, this agenda item includes a resolution appointing Thomas R. Hatch as Interim City Manager effective November 21, 2023, and authorizing the Mayor to sign an employment agreement for interim city manager services with Mr. Hatch consistent with the requirements of Section 21221(h) and the terms set forth in the resolution. The term of Mr. Hatch’s appointment as Interim City Manager will end when the permanent appointment to the City Manager position begins his or her employment with the City, unless the appointment is terminated earlier by the City or Mr. Hatch. The key terms of the Interim City Manager appointment include the following: 1. The term of employment will begin November 21, 2023 and will end immediately before the day on which the permanent City Manager begins work, unless sooner terminated by the City or Mr. Hatch; 2. Hourly rate will be $156.82;