HomeMy WebLinkAboutResolution No. 2025-61 | McPhillips LeeAnn Interim AS & HR Director RIsk Mgr Appointment | Adopted 12/08/2025RESOLUTION NO. 2025-61
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY APPOINTING LEEANN MCPHILLIPS AS
INTERIM ADMINISTRATIVE SERVICES & HUMAN
RESOURCES DIRECTOR/RISK MANAGER, APPROVING
EMPLOYMENT AGREEMENT, AND WAIVING THE 180-
DAY WAIT PERIOD
WHEREAS, in compliance with Government Code section 7522.56 the City of Gilroy
must provide CalPERS this certification resolution when hiring a retiree before 180 days has
passed since his or her retirement date; and
WHEREAS, LeeAnn McPhillips, will retire from the City of Gilroy in the position of
Administrative Services & Human Resources Director/Risk Manager, effective December 31,
2025; and
WHEREAS, section 7522.56 requires that post-retirement employment commence no
earlier than 180 days after the retirement date, which is June 30, 2026 (date of 181st day after
retirement) without this certification resolution; and
WHEREAS, 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 Gilroy City Council, the City of Gilroy, and LeeAnn McPhillips certify
that LeeAnn McPhillips has not and will not receive a Golden Handshake or any other retirement-
related incentive; and
WHEREAS, section 7522.56 provides that if the retiree is older than the normal retirement
age based on all the retiree’s retirement formulas, the employer may establish an agreement with
the retiree for post-retirement employment in advance of the retiree’s retirement date; and
WHEREAS, the Gilroy City Council desires to consent the City Administrator’s
recommendation to appoint LeeAnn McPhillips as an interim appointment retired annuitant to the
vacant position of Administrative Services & Human Resources Director/Risk Manager for the
City of Gilroy under Government Code section 21221(h), effective December 31, 2025; and
WHEREAS, an appointment under Government Code Section 21221(h) requires that the City
has initiated steps to begin the recruitment process for the vacant position, a step that will be completed
prior to December 31, 2025; and
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Resolution No. 2025-61
McPhillips, LeeAnn Interim AS & HR Director Risk Mgr Appointment
City Council Regular Meeting | December 8, 2025
WHEREAS, this Section 21221(h) appointment shall only be made once and therefore will
end on the date immediately preceding the date on which the permanent replacement for the vacant
position of Administrative Services & Human Resources Director/Risk Manager for the City of Gilroy
commences his or her employment or, if earlier, the date that this appointment is terminated by the
City or LeeAnn McPhillips; and
WHEREAS, the entire employment agreement between LeeAnn McPhillips and the City of
Gilroy has been reviewed by this body and is attached hereto as Exhibit A; 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; 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 monthly salary for this position is $23,427.67 and the hourly
equivalent is $135.16 and the minimum base monthly salary for this position is $17,056.25 and the
hourly equivalent is $98.40; and
WHEREAS, the hourly rate to be paid to LeeAnn McPhillips will be $135.16; and
WHEREAS, LeeAnn McPhillips has not and will not receive any other benefit, incentive
compensation in lieu of benefits or any other form of compensation in addition to this hourly pay rate.
NOW, THEREFORE, the City Council of the City of Gilroy hereby finds, determines, and
resolves as follows:
1. The City Council has considered the full record before it, which may include but is not
limited to such things as the staff report, testimony by staff and the public, and other
materials and evidence submitted or provided to it. Furthermore, the recitals set forth
above are found to be true and correct and are incorporated herein by reference.
2. The City Council hereby certifies the nature of the employment of LeeAnn McPhillips
as described herein and detailed in the attachment employment agreement and that this
appointment is necessary to fill the critically needed position of Administrative
Services & Human Resources Director/Risk Manager for the City of Gilroy to provide
the specialized skills necessary to lead and manage the City’s Administrative Services
& Human Resources/Risk Management Department.
3. The City Council hereby authorizes the appointment of LeeAnn McPhillips to Interim
Administrative Services & Human Resources Director/Risk Manager effective
December 31, 2025 pursuant to the authority provided under Government Code
Sections 21221(h), which shall end on the date immediately preceding the date on
which the permanent replacement for the vacant position of Administrative Services &
Human Resources Director/Risk Manager for the City of Gilroy commences his or her
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Resolution No. 2025-61
McPhillips, LeeAnn Interim AS & HR Director Risk Mgr Appointment
City Council Regular Meeting | December 8, 2025
employment or, if earlier, the date that this appointment is terminated by the City or
LeeAnn McPhillips.
4. The City Council hereby authorizes the appointment of LeeAnn McPhillips to Interim
Administrative Services & Human Resources Director/Risk Manager effective
December 31, 2025 pursuant to the authority provided under Government Code Section
7522.56 which eliminates the 60-day bona fide separation from employment prior to
establishing a post-retirement employment arrangement and adopting a resolution to
waive the 180-day wait period for post-retirement employment as LeeAnn McPhillips
is older than the highest normal retirement age contained in any formula which
computes her retirement allowance.
5. The employment agreement with LeeAnn McPhillips, a copy of which is attached
hereto as Exhibit A and will be maintained on file with the Human Resources
Department, is approved by the City Council on December 8, 2025, and is effective
December 31, 2025.
6. The Interim City Administrator is authorized to execute said agreement on behalf of
the City, with such technical amendments as may be deemed appropriate by the Interim
City Administrator and City Attorney.
PASSED AND ADOPTED this 8th day of December, 2025 by the following roll call
vote:
AYES: COUNCIL MEMBERS: BRACCO, CLINE, FUGAZZI, HILTON,
MARQUES, RAMIREZ, BOZZO
NOES: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
APPROVED:
Greg Bozzo, Mayor
ATTEST:
Kim Mancera, City Clerk
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Resolution No. 2025-61
McPhillips, LeeAnn Interim AS & HR Director Risk Mgr Appointment
City Council Regular Meeting | December 8, 2025
CERTIFICATE OF THE CLERK
I, KIM MANCERA, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution
No. 2025-61 is an original resolution, or true and correct copy of a City Resolution, duly adopted by the
Council of the City of Gilroy at a Regular Meeting of said held on Council held Monday, December 8, 2025
with a quorum present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of
Gilroy this Wednesday, December 10, 2025.
____________________________________
Kim Mancera
City Clerk of the City of Gilroy
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EXHIBIT A
RETIRED ANNUITANT EMPLOYMENT AGREEMENT
The Retired Annuitant Employment Agreement (“Agreement”) is made by and between LeeAnn
McPhillips, an individual (“Retired Annuitant”) effective December 31, 2025 (“Effective Date”).
RECITALS
A. Retired Annuitant previously was employed by the City of Gilroy and City of Morgan Hill,
CalPERS employers since 1990, having served as Gilroy’s Administrative Services & Human
Resources Director/Risk Manager from 2020-2025 and Gilroy’s Human Resources Director/Risk
Manager from 1999 - 2020; and
B. Retired Annuitant will retire from public service effective December 31, 2025 and will begin
collecting a retirement pension from the California Public Employees’ Retirement System (CalPERS);
and
C. The City will have a vacancy in the position of Administrative Services & Human Resources
Director/Risk Manager, a regular position for which the City will commence steps to initiate the
recruitment for a permanent appointment prior to December 31, 2025; and
D. The City has an immediate need for an employee to temporarily perform the position of
Administrative Services & Human Resources Director/Risk Manager, a position involving specialized
skills and training, and which is critically necessary to the on-going duties and functions of the City of
Gilroy and the City’s Administrative Services & Human Resources/Risk Management Department;
and
E. Retired Annuitant has the necessary qualifications, experience, and abilities to assist City in the
duties of leadership and management of the Administrative Services & Human Resources/Risk
Management Department; and
F. Retired Annuitant’s employment is authorized by Government Code section 21221(h), which permits
the City to appoint a CalPERS retired annuitant to a vacant position requiring specialized skills during
recruitment for a permanent replacement; and
G. City desires to retain the services of Retired Annuitant in accordance with California Government
Code Section 21221(h) and Retired Annuitant agrees to provide certain services to City under the strict
terms and conditions set out in this Agreement; and
H. Retired Annuitant’s employment is authorized by Government Code section 7522.56 which
eliminates the 60-day bona fide separation from employment prior to establishing a post-retirement
employment arrangement and allows the agency to adopt a resolution to waive the 180-day wait period
for post-retirement employment when the retiree is older than the normal retirement age contained in
any formula which computes the retiree’s retirement allowance. Retired Annuitant meets this
requirement.
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In consideration of this matter described above and of the mutual benefits and obligations set forth in
this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the parties
of this Agreement agree as follows:
AGREEMENT
Section 1. Term of Services
The term of this Agreement is from December 31, 2025 until such time as a permanent replacement for
the position of Administrative Services & Human Resources Director/Risk Manager has been selected
and has commenced employment, unless terminated sooner as provided below.
Section 2. Scope of Services
Retired Annuitant, as an officer of the city, agrees to perform the following duties related to the Gilroy
Administrative Services & Human Resources/Risk Management Department:
• Lead, manage, and supervise the functions of Human Resources, Risk Management, Facilities, & Fleet.
• Serve as a member of the Senior Executive/Department Head team.
• Plan, organize, supervise, and participate in the activities of the City's human resources programs, including
recruitment and selection, classification and pay, labor relations, equal employment, risk management, and
training.
• Represent the City in contract negotiations with representatives of bargaining units, and work with
employee representatives to foster positive employee relations.
• Administer the City's risk management/risk avoidance program, including general liability and workers'
compensation claims; represent the City at meetings with third party administrator.
• Manage the City's benefits, health, and safety programs.
• Identify, plan, and coordinate staff development training for City employees.
• Supervise and conduct classification and compensation studies.
• Assign, review, coordinate and evaluate the work of Human Resources staff members; provide necessary
training and guidance; take appropriate disciplinary actions.
• Draft, recommend, and implement administrative policies and procedures related to Human Resources,
labor relations, and Risk Management.
• Administer, interpret, and apply provisions of personnel policies and regulations, memoranda of
understanding, and related policy documents.
• Advise and assist managers on personnel and labor relations matters, including employment, disciplinary
actions, grievances, and performance problems and evaluations.
• Serve as staff to City Personnel Commission; prepare agendas and recommendations.
• Supervise the preparation and maintenance of records and reports, including personnel files, required
statistical reporting, and related documents.
• Investigate allegations of sexual harassment, employment discrimination, and other policy violations;
monitor the City's equal employment program.
• Serve on internal and external committees and represent the City in related professional areas.
• Develop and assist in the development and implementation of goals, objectives, policies, priorities, and
work standards.
• Prepare and present reports, recommendations, and analyses related to assigned areas of work.
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• Develop specifications, evaluate proposals, and recommend selection of consultants/contractors; monitors
and administer consultant/contractor agreements/contracts.
• Prepare, or oversee the preparation, and administer budget for Human Resources, Risk Management,
Facilities, and Fleet.
• Assist City Administrator in the evaluation of the Administrative Services functions for possible
reorganization of the Facilities and Fleet functions.
• Perform related work as assigned.
Retired Annuitant will report directly to the City Administrator. Retired Annuitant shall comply with
all City rules, policies, guidelines, regulations, and laws.
Section 3. Compensation; Hours
City agrees to compensate Retired Annuitant at $135.16 per hour for all services provided under this
Agreement. Payments from City to Retired Annuitant shall be made during the normal payroll cycles
of other City employees.
City has reviewed and compared the hourly rate set forth in this Section with other employees
performing comparable duties and the hourly rate set forth in this Section does not exceed such other
employees’ compensation.
Retired Annuitant agrees and acknowledges that she shall not perform any services under this
Agreement or as an extra help retired annuitant exceeding a total of nine hundred sixty (960) hours
during any fiscal year (July 1 to June 30) inclusive of any hours worked during the same period for
other CalPERS employers as a retired annuitant. Retired Annuitant shall record her hours on a pre-
approved timesheet that shall be submitted to the City every month.
The position is a temporary, hourly assignment which is generally not expected to exceed 40 hours per
week. The City, through the City Administrator, will assign Retired Annuitant hours to work. Due to
the nature of the position, it is understood that the workday and workweek hours may vary, however
Retired Annuitant shall not work overtime (i.e. in excess of 40 hours per week) as payment of overtime
is prohibited under Government Code Section 21221(h).
There are no other benefits, incentives, compensation in lieu of benefits or other forms of
compensation in addition to the hourly pay rate set forth in this Section.
Section 4. Location
The primary location for services will be at the following addresses:
Gilroy City Hall, 7351 Rosanna Street, Gilroy, California 95020
Section 5. Compliance with Laws
This Agreement will be construed in accordance with and governed by the laws in the State of
California. In the event that suit shall be brought by any of the parties, the parties agree that venue
shall be exclusively vested in the state courts of the County of Santa Clara, or if federal jurisdiction is
appropriate, exclusively in the United States District Court, Northern District of California, San Jose,
California. Retired Annuitant shall comply with all applicable laws, rules, policies, and guidelines.
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Retired Annuitant agrees and acknowledges that the State of California and the governing body of the
California Public Employees’ Retirement System enact strict laws, regulations and guidelines relating
to services provided by “retired annuitants” to public agencies contracting with the California Public
Employees’ Retirement System. Retired Annuitant agrees to comply with all applicable laws,
regulations and guidelines relating to the services provided under this Agreement.
Section 6. Termination
This Agreement may be terminated by either party for convenience by providing written notice to the
other party.
Section 7. Miscellaneous
a. Retired Annuitant has read each and every part of this Agreement and Retired Annuitant freely and
voluntarily has entered into this Agreement. This Agreement is a negotiated document and shall not be
interpreted for or against any party by reason of the fact that such party may have drafted this
Agreement or any of its provisions.
b. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid,
void, or unenforceable, the provisions of this Agreement not so adjusted shall remain in full force and
effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the
validity of any other provision of this Agreement.
c. This Agreement represents the entire and integrated agreement between City and Retired Annuitant
and supersedes all prior negotiations, representations, or agreements, either written or oral.
In witness where of the parties have duly affixed their signatures on this __ day of December, 2025.
Employer: City of Gilroy
Brad Kilger, Interim City Administrator
Post-Retirement Employment [21221(h)]
Effective Date
December 31, 2025
Retired Annuitant
LeeAnn McPhillips
Approved as to Form:
Andrew L. Faber, City Attorney
Attest:
Kim Mancera, City Clerk
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