Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Resolution Certifying the Critical Need for Retiree Appointment
RECOMMENDATION:
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Adopt a resolution approving the hiring of retired Assistant County Executive, Iliana Rodriguez, to an extra-help position to provide additional senior-level strategic coordination and support related to the County’s ongoing Vehicle License Fee (VLF) litigation and informational/outreach efforts; and certifying, pursuant to Government Code §7522.56, that the nature of employment and appointment is necessary to fill a critically-needed position before the post-retirement 180 day separation period expires.
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BACKGROUND:
On September 12, 2012, the California Public Employees' Pension Reform Act, which is known as "PEPRA" (Assembly Bill 340), was signed into law, effective January 1, 2013. Additionally, Assembly Bill 197, which amends a portion of the County Employees Retirement Law of 1937 (1937 Act), was signed into law on the same date to be effective January 1, 2013. Pursuant to this legislation, Government Code §7522.56 requires a 180-day separation (“sit-out”) period following the date of retirement for non-safety retirees who are reemployed by a public agency within the same retirement system.
The 180-day sit-out period may be waived as provided in Government Code §7522.56(f)(1), if “the employer certifies the nature of the employment and that the appointment is necessary to fill critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting.” The appointment may not be placed on the consent calendar.
DISCUSSION:
In August 2025, San Mateo County filed litigation against the State of California seeking recovery of approximately $38,000,000 in Vehicle License Fee or VLF-related revenues that are not being fully allocated to the County under current state budget practices. All 20 cities within the county have joined the action, reflecting a unified countywide interest in resolving the issue.
The dispute arises from the State’s implementation of the 2004 VLF “swap,” under which local governments agreed to forgo direct VLF revenues in exchange for a constitutionally protected backfill through property tax allocations (commonly referred to as the Vehicle License Fee Adjustment Amount, or VLFAA). The County contends that the State’s current methodology for calculating and distributing these replacement revenues as applied to it is inconsistent with statutory and constitutional requirements and has resulted in a significant and ongoing funding shortfall.
Given the complexity, fiscal significance, and statewide policy implications of the County’s VLF litigation against the State and the need to coordinate informational and outreach efforts, including among multiple governmental agencies, additional senior-level strategic support is warranted to complement County Attorney and existing executive staff resources. Ms. Rodriguez would provide:
• Executive-level coordination and strategy
• Intergovernmental engagement
• Subject-matter expertise
• Stakeholder communication and informational/outreach efforts
Given the scale of the ongoing risk to a significant County funding source, the engagement of a seasoned former executive will strengthen the County’s ability to effectively advance its position, manage cross-jurisdictional coordination, and support a favorable resolution.
Ms. Rodriguez will be paid $186.12 per hour for her assistance for a period not to exceed 960 hours in 12 months. The hourly rate is equivalent to the top hourly rate of the Assistant County Executive-Unclassified, which is Ms. Rodriguez’s former position.
The County Attorney’s Office has reviewed and approved the resolution as to form.
COMMUNITY IMPACT:
San Mateo County’s VLF litigation seeks to recover under-allocated revenues and to correct an ongoing shortfall in a key local funding source. Protecting these revenues supports the County’s ability to maintain stable funding for essential public services and reduces pressure on the General Fund.
FISCAL IMPACT:
There are sufficient appropriations to cover the extra help costs in the County Executive’s Office FY 2025-26 Adopted Budget.