Title
Adoption of Resolution Approving the Appointment of Retired Annuitant Robert Orbeta to the Position of Administrative Specialist III with Alameda Municipal Power and Certifying that the Appointment Is Necessary to Fill a Critically Needed Position before the Passage of 180 Days Following the Date of Mr. Orbeta’s Retirement in Accordance with Government Code Sections 7522.56 and 21224. (Human Resources 10025060)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Generally, a person retiring from public service may not return be employed by a public employer in the same public retirement system from which they receive retirement benefits without being reinstated. However, a retired annuitant may serve without reinstatement from retirement following a 180-day waiting period, to provide extra help of limited duration or fill a vacant position during a recruitment. Exception to the 180-day waiting period may be approved by resolution of the governing body if the retired annuitant is needed to fill a critically needed position within the organization.
Robert Orbeta, retired from City of Alameda (City) service as Assistant General Manager of Administration on February 2, 2024. Alameda Municipal Power (AMP) would like to rehire Mr. Orbeta as a retired annuitant, to the position of Administrative Specialist III with an hourly rate of $103.09, to perform critically needed work within the Department. To rehire Mr. Orbeta immediately, and not wait 180 days from February 2, 2024, a resolution of the City Council approving the appointment and making the necessity finding is required.
BACKGROUND
Generally, the Public Employment Retirement Law (PERL) requires that retirees from public service, serve a 180-day waiting period before returning to work for a PERS agency as a retired annuitant. However, the PERL also provides for exceptions to this waiting period if certain criteria are met and the governing body of the public agency adopts a non-consent calendar resolution at a public meeting approving the appointment as a critically needed position before the 180 days has passed. The adoption of the resolution allows the employer to hire a retired annuitant to perform work of a limited duration, such as specialized work and limited term complex projects.
There are two types of post-retirement appointments possible under Govt. Code Section 7522.56: 1) extra help by retired annuitants hired to perform work of limited duration such as special projects (Govt. Code Section 21224); and 2) appointment to a vacant position on an interim basis while a permanent replacement is being recruited (an active recruitment must be in place for this type of appointment, and the appointment must end when the replacement is hired (Govt. Code Section 21221(h)).
DISCUSSION
Robert Orbeta was the Assistant General Manager of Administration in AMP, a Department of the City. He retired from the City on February 2, 2024, after twenty years of service. During his tenure with the City, Mr. Orbeta acted as Chief Financial Officer of AMP and was responsible for Finance, Budget, and Accounting in addition to Billing, Purchasing, Inventory, Customer Service and Facilities Maintenance. Additionally, he participated in various joint power agencies’ committees and supported the Public Utility Board (PUB) and was a designated Northern California Power Agency (NCPA) Commissioner.
AMP would like to rehire Mr. Orbeta to provide continued assistance with budget development and multi-year and multi-stakeholder projects that stand in mid-process and for which he alone has the necessary institutional knowledge and expertise to complete. Tasking new staff at this time would be disadvantageous to both staff and AMP, as some activities have a steep learning curve and require a depth of knowledge no other employees within AMP possess and there is no opportunity to delay the efforts while staff gain the required knowledge. In particular, Mr. Orbeta would be instrumental in the development, finalization and presentation of the Fiscal Year 2024-2025 budget currently under development and supporting AMP’s position as NCPA deals with aging facilities. Additionally, Mr. Orbeta will continue to provide institutional knowledge during negotiations with PG&E and the California Independent System Operator (CAISO) in relation to the Oakland Clean Energy Initiative, negotiations that have spanned multiple years and require a depth of knowledge that only Mr. Orbeta possesses. Delay in the negotiations to allow staff to gain the knowledge necessary to adequately represent AMP’s interest would be detrimental to AMP’s position in negotiations.
Accordingly, staff recommends the Council approve the appointment of Robert Orbeta to the position of Administrative Specialist III with an hourly wage of $103.09, commencing on February 11, 2024. Staff further recommends that the Council certify that the appointment of Mr. Orbeta meets the requirements as defined in Govt. Code Sections 7522.56 and 21224, specifically:
1. Mr. Orbeta’s appointment is necessary to perform critically needed duties prior to the expiration of the 180-day waiting period;
2. Mr. Orbeta has not received a golden handshake or any other form of retirement related incentive;
3. Adoption of the resolution was not placed on consent calendar; and
4. Employment will be limited to 960 hours per fiscal year.
On Monday, January 22, 2024, the City of Alameda Public Utilities Board adopted a Resolution No. 5221 recommending approval of Mr. Orbeta’s appointment.
ALTERNATIVES
• Adopt the resolution approving the appointment of retired annuitant Robert Orbeta to the position of Administrative Specialist III with AMP and certifying that the appointment is necessary to fill a critically needed position before the passage of 180 days following the date of Mr. Orbeta’s retirement, in accordance with Government Code Sections 7522.56 and 21224.
• Reject the recommended appointment.
FINANCIAL IMPACT
The Public Employees’ Pension Report Act (PEPRA) sets forth limitations for compensating retired annuitants. All retirees must be paid hourly, at no less than the minimum, nor more than the maximum, paid to employees doing similar work. Based on the CALPERS formula for setting retired annuitant pay rates, Mr. Orbeta would be paid $103.09 per hour capped at $98,966 annually. Retirees do not receive any benefits. Sufficient funds are available in the AMP Fiscal Year 2023 - 2024 to fund Mr. Orbeta’s appointment. The PUB has reviewed the fiscal impact to AMP and recommended to Council, by resolution, to adopt a resolution approving the exception to the 180-day waiting period to appoint Mr. Orbeta as a retired annuitant.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the City’s 2023-2026 Strategic Plan and Chapter XXV of the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a resolution approving the appointment of retired annuitant Robert Orbeta to the position of Administrative Specialist III with AMP and certifying that the appointment is necessary to fill a critically needed position before the passage of 180 days following the date of Mr. Orbeta’s retirement, in accordance with Government Code Sections 7522.56 and 21224.
Respectfully submitted,
Jessica Romeo, Human Resources Director
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. PUB Resolution Recommending Approval
2. Offer Letter
cc: Nicolas Procos, General Manager, Alameda Municipal Power