SR - RES-10754 - EMPLOYMENT EXTENSION FINANCE DIRECTOROF 0
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AGENDA ITEM
January 14, 2014
TO: Honorable Mayor and
Members of the City Council
FROM: John W. Sibley
City Manager
Wayne W. Winthers
City Attorney
ReviewedNeri ed By:
City Manager
Finance Dire or
To Be PresentNW.5ohn Sibley
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1. SUBJECT
Adoption of Resolution No. 10754 certifying the critical need for the immediate appointment of
Richard Jacobs as Finance Director while a nationwide recruitment is completed.
2. SUMMARY __7
Per the recently adopted Public Employee Pension Reform Act (PEPRA) effective January 1,
2013, all Miscellaneous (non - safety) retirees that desire to return to work on a part-time (960
hour per fiscal year) basis must wait 180 days (6 months) unless the city council certifies that the
nature of the employment and the appointment is necessary to fill a critically needed position.
3. RECOMMENDED ACTION
Approve Resolution No. 10754 making the necessary certification to allow the immediate
appointment of the retiring Finance Director.
4. FISCAL IMPACT
The reinstatement of Mr. Jacobs as a part-time Finance Director (retired) will save the City costs
of all payroll benefits, as well as salary savings during the recruitment and selection process. Mr.
Jacobs will be compensated within the requirements of Government Code section 21221(h),
which is no more than the position's published monthly salary divided by 173.33 to determine an
hourly wage.
5. STRATEGIC PLAN GO
N/A
ITEM 7- / 1 01/14/14
6. GENERAL PLAN IMPLEMENTATION
N/A
7. DISCUSSION and BACKGROUND
Our current Finance Director, Mr. Rich Jacobs has notified the City of his decision to retire
effective January 17, 2014. Mr. Jacobs has been our Finance Director for the past ten years.
While we have begun recruitment for a Finance Director it has been difficult to attract quality,
qualified candidates over the holiday season, thus the recruitment will continue into early 2014.
Based on the new PEPRA law, retirees that the City requests return to work on a part-time (960
hour per fiscal year) basis must wait 180 days (6 months) after their retirement date before they
can return to their previous position unless the city council certifies that the nature of the
employment and the appointment is necessary to fill a critically needed position.. The attached
resolution makes this certification based upon the following:
• there has not been adequate time to complete a recruitment over the recent holidays;
• cut -backs over the past few years means there are currently no "in- house" candidates that
are fully qualified to temporarily fill this key position;
• Mr. Jacobs' knowledge and skill level in this position for the past ten (10) years;
• leadership and oversight required of a department of over thirty (30) employees;
• oversight needed in the preparation of the annual CIP Budget and Operating Budgets, as
well as City Council Budget briefings and Study Sessions;
• winding -down the former Redevelopment Agency, monitoring and meeting and
conferring with the State Department of Finance over the Recognized Obligation
Payment Schedule (ROPS) as well as the on -going lawsuit over the Low and Moderate
Income Housing Asset Transfer form (Serrano Woods);
• oversight of debt service payments on all outstanding bonds, as well as updating the
rating agencies Fitch and Standard & Poors on our credit ratings for these outstanding
bonds;
• completion of projects currently underway in Utility Billing and Business Licensing that
will interface both systems with our existing Laser Fiche system for records retention; and
• completion of the Payroll project currently underway to integrate the payroll timekeeping
system (Intellitime) with Developer Billing for staff time to be seamlessly charged to
developer's deposits.
Rich Jacobs has over 25 years of municipal governmental accounting experience, with ten (10)
years as our Finance Director. He holds a bachelor's degree in Accounting, a Master's Degree in
Business Administration, a Juris Doctorate degree in Law, and is a Certified Public Accountant
ITEM 2 01/14/14
(CPA) certificate holder. Rich Jacobs has been instrumental in the wind down of the former
Redevelopment Agency, the completion of the annual external audit, and the preparation of next
year's Operating and Capital Budgets. He is also a key player in the oversight of Orange's $120
million dollar investment portfolio, external Investment Advisory Committee, and critical to
banking operations including approving all wire transfers and signing all checks.
While Mr. Jacobs' retirement date is January 17, 2014 it is my desire to bring him back as a part-
time employee effective January 20, 2014 for a period not to exceed 960 hours while a thorough
nationwide recruitment has been completed. I have asked Rich to assist in the selection of his
replacement. Additionally the Council has recently appointed a new City Treasurer and we have
recently re- assigned our Internal Audit Manager to replace our retired Accounting Manager.
Thus we have new staff at both of these critical positions as well.
For these reasons I strongly recommend that the Council adopt the attached Resolution to allow
this critical department to have continuity between the current Director and the selection of the
new Director.
18. ATTACHMENTS
Resolution No. 10754
ITEM 3 01/14/14
RESOLUTION NO. 10754
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE CERTIFYING THE NEED FOR
THE IMMEDIATE EMPLOYMENT EXTENSION OF
FINANCE DIRECTOR RICHARD JACOBS.
WHEREAS, Richard Jacobs, Finance Director, has announced his retirement from the
City of Orange effective January 17, 2014; and
WHEREAS, there has not been adequate time to conduct a recruitment to fill this critical
position; and
WHEREAS, Government Code Section 7522.56 allows a retired employee to continue to
work for a public employer for a term not to exceed 960 hours in a 12 month period under certain
conditions; and
WHEREAS, Government Code Section 7522.56(f)(1) further that a retired employee
must wait 180 days before returning to work for a public employer, unless the City Council
certifies the nature of the employment and that the appointment is necessary to fill a critically
needed position before 180 days has passed.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Orange
does hereby certify that the position of Finance Director of the City of Orange is a critical
position within the City structure; and
FURTHER, the City Council of the City of Orange certifies that it is necessary to
immediately appoint Richard Jacobs by virtue of his 10 years in the position of the City's Finance
Director and over 25 years of municipal governmental accounting experience to fill this critical
need as there is no other viable candidate who can immediately perform the requirements of the
position.
ADOPTED this day of , 2014
Teresa E. Smith, Mayor, City of Orange
ATTEST:
Mary E. Murphy, City Clerk, City of Orange