TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Monica Espinoza, Human Resources Director
1. Subject
title
Employment Agreement with a retired annuitant for the vacant position of Interim Police Chief, pursuant to Government Code Sections 21221(h) and 7522.56(f). Resolution No. 11594.
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2. Summary
Resolution No. 11594 authorizes the City Manager’s appointment of Daniel L. Adams to serve on an interim basis to the vacant position of Interim Police Chief effective January 20, 2025, or upon approval by the California Public Employees’ Retirement System (CalPERS), whichever shall occur first.
3. Recommended Action
recommendation
Adopt Resolution No. 11594. A Resolution of the City Council of the City of Orange approving the Employment Agreement of a retired annuitant for the position of Interim Police Chief, pursuant to Government Code Sections 21221(h) and 7522.56(f).
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4. Fiscal Impact
The Police Chief position is already included in the Fiscal Year 2024-25 budget and is funded through General Fund (100). In accordance with CalPERS requirements, Daniel L. Adams would not receive any compensation or benefits, other than his hourly rate, while employed as a retired annuitant.
5. Strategic Plan Goals
Goal 1: Provide for a safe community
a: Provide staffing and resources to deliver services that ensure public safety.
Goal 4: Provide outstanding public service
e: Attract, retain and develop quality employees dedicated to public service.
6. Discussion and Background
Daniel L. Adams began his employment as the City’s Police Chief on June 6, 2021. After more than three years as Police Chief and nearly thirty-five years of honorably serving the Orange community, Chief Adams retired on December 30, 2024, as his last day of full-time employment and a CalPERS retirement date of December 31, 2024.
CalPERS recognizes that retirees play an important role in maintaining city operations and keeping cities safe, particularly in short-term or emergency situations. Government Code Section 21221(h) provides specific guidance on employing a CalPERS retiree that will serve in a vacant executive, managerial or other unique position, such as City Manager, Police Chief and other Department Heads, etc., without interruption to retirement benefits or reinstatement from retirement. Although all Department Heads and other staff positions are appointed by the City Manager, Government Code 21221(h) requires that the City Council expressly authorize the appointment of a retired annuitant to an interim vacant position. Government Code Section 7522.56 provides exceptions to the 180-day wait period so long as the retired annuitant meets the specified conditions which Daniel L. Adams meets.
Conditions within Government Code Section 21221(h) include:
• City Council appointment to a vacant position in the form of a resolution or contract;
• The vacant position requires a specialized skillset and is actively being recruited for a permanent appointment;
• Appointment must be for a limited duration of no more than 960 hours in a fiscal year;
• The retired annuitant must be compensated within the approved salary schedule for the position and cannot receive any additional rights or benefits; and
• The retired annuitant can only be appointed once to a vacant position.
The City has a critical and time-sensitive need for Daniel L. Adams to work for the City on a temporary basis after his retirement from full-time employment status. The City is in the process of recruiting for a new permanent Police Chief; however, staff anticipates there will be a gap of approximately two to three months between Chief Adams’ retirement from full-time status and the appointment of a new permanent Police Chief. During this interim period, the City needs a qualified individual with a specialized skillset to continue to perform all essential functions of the position without interruption, at the retired hourly rate of $135.71 per hour, with no other rights or benefits, incentives, or other compensation in lieu of benefits, or any other forms of compensation to be provided during the appointment. Daniel L. Adams’ employment will end no later than June 30, 2025, and he will not exceed 960 hours worked in a fiscal year. All parties understand that the appointment to the Interim Police Chief position may only happen once.
7. ATTACHMENTS
• Resolution No. 11594 with attached employment agreement