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HomeMy WebLinkAboutItem 4b - Authorization to Hire CAPERS Retired Annuitant to Serve as Interim Fire Chief Item 4b Department: Fire Cost Center: 8501 For Agenda of: 12/15/2025 Placement: Business Estimated Time: 10 min FROM: Whitney McDonald, City Manager Prepared By: Nickole Domini, Human Resources Director SUBJECT: AUTHORIZATION TO HIRE A CALPERS RETIRED ANNUITANT TO SERVE AS FIRE CHIEF ON AN INTERIM BASIS PURSUANT TO GOVERNMENT CODE SECTIONS 7522.56 AND 21221(H) RECOMMENDATION Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing the City Manager to Appoint Randall Harris, who will be a CalPERS Retired Annuitant at the Time of Appointment, to Serve as Interim Fire Chief During the National Search for a Permanent Fire Chief Pursuant to Government Code Section 7522.56 and 21221(h) POLICY CONTEXT When employing a retired annuitant in an interim capacity, the City must ensure compliance with the Public Employees’ Retirement Law (PERL), the Public Employees’ Pension Reform Act of 2013 (PEPRA), and Government Code section 7522.56, which generally requires a 180-day separation period following retirement before a retiree may return to work for a CalPERS agency. Because the proposed retiree will not have satisfied the 180-day requirement at the time of appointment, the City Council must adopt a certification resolution to authorize an exception, confirming that the appointment is necessary to meet a critical need and that the retiree has not received and will not accept any retirement-related incentive. In addition, Government Code section 21221(h), requires that the retiree be appointed to an interim role during recruitment for a permanent position. DISCUSSION The City’s current Fire Chief has resigned effective January 4, 2026, creating an immediate vacancy in an executive-level leadership position essential to the safe and effective operation of the Fire Department. To ensure continuity of command and maintain operational readiness during the national recruitment for a permanent Fire Chief, the City Manager has identified Randall Harris to serve as Interim Fire Chief. Harris is retiring from the position of Deputy Fire Chief in Paso Robles, California, effective December 20, 2025, and possesses extensive executive command experience, technical expertise, and Page 9 of 40 Item 4b knowledge of San Luis Obispo County’s fire service operations, enabling a seamless transition into the interim role. Given the critical responsibilities of the Fire Chief, including executive leadership, strategic planning, labor-management relations, emergency incident management, and maintaining organizational stability, and vacancies in other management positions within the Department, internal staff are focused on day-to-day operations and cannot assume the interim role. While the City’s long-term goal is to reduce reliance on retired annuitants, appointing Harris as an external retired annuitant ensures immediate stability and continuity for the Fire Department during the recruitment process for a permanent Chief. Under California Government Code sections 7522.56 and 21221(h), the City Council must certify this appointment because Harris will not have satisfied the 180-day post-retirement waiting period at the time of appointment. The appointment is designated as an “interim appointment” retired annuitant assignment, effective January 5, 2026, and will conclude upon the commencement of employment of a permanent Fire Chief. Harris will be paid $120.20 per hour, within the City’s Fire Chief salary range, with no additional benefits, incentives, or retirement-related compensation. Harris has confirmed that he will not receive any retirement-related incentives, including a Golden Handshake from Paso Robles, and the assignment is limited to 960 hours in a fiscal year, in compliance with CalPERS requirements. In addition, the City will meet the requirements of Government Code section 21221(h) by conducting a national recruitment for Fire Chief during the interim appointment, including selection of a recruitment firm in December 2025 and opening the official recruitment process no later than February 2026. CONCURRENCE The Human Resources Department has reviewed this item and concurs, ensuring full compliance with all CalPERS requirements. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recomm ended action in this report because the action does not constitute a “project” under CEQA Guidelines 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2025-26 Funding Identified: Yes Page 10 of 40 Item 4b Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $174,869.37 $125,005.60 $49,863.77 $0 State Federal Fees Other: Total $174,869.37 $125,005.60 $49,863.77 $0 The interim appointment will be funded through salary savings from the vacant Fire Chief position. Based on a standard 40-hour work week, the Interim Fire Chief’s monthly compensation will be $20,834.27. Because Harris is a CalPERS retiree, he is only eligible to receive the hourly rate listed on the salary schedule and will not receive any additional salary or benefits. The monthly amount budgeted for this position (including salary and benefits) is $29,144.90, which reflects the savings the department will realize from the interim appointment. The appointment is anticipated to conclude by June 30, 2026, or upon the start of a permanent Fire Chief, whichever occurs first. The table above assumes the interim appointment will be needed for six months (i.e., through the remainder of FY 2025-26). For this reason, no annual ongoing cost is listed. ALTERNATIVES Do not adopt the resolution authorizing employment of a CalPERS retired annuitant to serve as the Interim Fire Chief. Council could decide not to adopt the attached resolution, which would prohibit the City Manager from hiring Harris to serve as the Interim Fire Chief. The City Manager would then need to identify an alternative candidate to serve in the role. Depending on the qualifications and circumstances of any replacement, a subsequent resolution from the Council may still be required. This scenario could result in a gap in executive leadership, potentially delaying decisio n-making and continuity of operations within the Fire Department during a critical transition period. ATTACHMENTS A - Draft Resolution appointing Harris to serve as Interim Fire Chief B - Exhibit A to Draft Resolution – Conditional Job Offer Page 11 of 40 Page 12 of 40 R ______ RESOLUTION NO. _____ (2025 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO APPOINT RANDALL HARRIS, WHO WILL BE A CALPERS RETIRED ANNUITANT AT THE TIME OF APPOINTMENT, TO SERVE AS INTERIM FIRE CHIEF DURING THE NATIONAL SEARCH FOR A PERMANENT FIRE CHIEF PURSUANT TO GOVERNMENT CODE SECTION 7522.56 and 21221(h) WHEREAS, in compliance with Government (Gov.) Code section 7522.56 of the Public Employees’ Retirement Law, the City Council must provide CalPERS this certification resolution when hiring a retiree before 180 days has passed since their retirement date; and WHEREAS, Randall Harris (“HARRIS”) is retiring from the City of El Paso De Robles on December 20, 2025, in the position of Deputy Fire Chief; and WHEREAS, Gov. Code section 7522.56 requires that post-retirement employment commence no earlier than 180 days after the retirement date, which i s June 19, 2026 (date of 181st day after retirement), 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 San Luis Obispo, and HARRIS certify that HARRIS 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 the retiree is appointed into the interim appointment during recruitment for a permanent appointment; and WHEREAS, the City Manager has the authority and responsibility to conduct the recruitment for a permanent Fire Chief, as there is no formal process for the City Council to initiate it; the City Manager is engaging a professional executive recruiter and will ensure the recruitment is posted no later than the end of February 2026; and WHEREAS, the City Council hereby appoints HARRIS as an interim appointment retired annuitant to the vacant position of Fire Chief for the City of San Luis Obispo under Gov. Code section 21221(h), effective January 5, 2026; and WHEREAS, this Gov. Code section 21221(h) appointment shall only be made once and shall end once the City hires a permanent Fire Chief and they start work; and Page 13 of 40 Resolution No. _____ (2025 Series) Page 2 R ______ WHEREAS, the entire conditional job offer between HARRIS and the City of San Luis Obispo has been reviewed by this body and is attached herein; 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 $21,690.50 per month and the hourly equivalent is $125.14, and the minimum base salary for this position is $17,350.67 per month and the hourly equivalent is $100.10; and WHEREAS, the hourly rate paid to HARRIS will be $120.20; and WHEREAS, HARRIS 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 Council of the City of San Luis Obispo as follows: SECTION 1. The City Council hereby certifies the nature of employment of HARRIS, as described herein and detailed in the attached conditional job offer, and finds that this appointment is necessary to fill the critically needed position of Fire Chief for the City of San Luis Obispo effective January 5, 2026 to ensure continuity of command within the City of San Luis Obispo Fire Department while the City conducts a national recruitment for a permanent Fire Chief. SECTION 2. The City Council determines that each of the findings set forth above is true and correct, and by this reference incorporates those findings as an integral part of this Resolution. Page 14 of 40 Resolution No. _____ (2025 Series) Page 3 R ______ SECTION 3. The City Council authorizes approval of this Resolution. SECTION 4. This Resolution shall become effective immediately following passage and adoption thereof. Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 15th day of December 2025. ___________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 15 of 40 Page 16 of 40 City of San Luis O bispo, Title, Subti tle Conditional Employment Offer Letter November 26, 2025 Dear Randy, I am pleased to extend a conditional offer of employment to serve as Interim Fire Chief (retired annuitant) with the City of San Luis Obispo Fire Department. This appointment is necessary to fill the critically needed position of Fire Chief to ensure continuity of command within the City of San Luis Obispo Fire Department while the City conducts a national search for a permanent Fire Chief. This offer is contingent upon the City Council adopting a resolution to meet CalPERS requirements, tentatively scheduled for December 15, 2025 (draft resolution attached), CalPERS approving your interim appointment as a retired annuitant , and your successful completion of a California Department of Justice Live Scan criminal background check. If the above conditions are satisfied, the following terms and conditions will be presented to you in a formal offer letter. 1. Your start date will be January 5, 2026, and shall end once the City hires a permanent Fire Chief which is estimated to take six months. In no case shall you exceed working 960 hours in a fiscal year. 2. Your hourly salary will be $ 120.20 or $9,616 biweekly based on a 40-hour work week. 3. You will be eligible to work a 9/80 schedule. 4. As a CalPERS Retired Annuitant, you are not eligible to receive any other benefit, incentive, compensation in lieu of benefit or other form of compensation in addition to the hourly pay rate. 5. Your scope of work includes the duties outlined in the Fire Chief job description. Let me again express my appreciation for your willingness to step into the role of Interim Fire Chief. Your leadership will be essential in maintaining operational stability and supporting the Fire Department during this period of transition, and I am excited to work together during this time. Sincerely, ________________________________ _________________________ Whitney McDonald Date Docusign Envelope ID: C5C3D9A1-731A-422D-83EC-699BC3349F6A 11/26/2025 | 6:19 PM PST Page 17 of 40 City of San Luis O bispo, Title, Subti tle Conditional Employment Offer Letter I have reviewed the above conditional offer of employment and accept the terms and conditions: __________________________ _________________ Randy Harris Date Attachment: Draft Council Resolution Fire Chief job description cc: Personnel File Docusign Envelope ID: C5C3D9A1-731A-422D-83EC-699BC3349F6A 11/27/2025 | 7:23 PM PST Page 18 of 40