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<br /> <br /> STAFF REPORT <br /> <br />TO: Mayor Fischer and Members of City Council <br /> <br />FROM: Heidi Heller, City Clerk/HR Manager <br /> <br />DATE: February 26, 2025 <br /> RE: Approve Steve Westerhaus Participation in the PERA Phased Retirement Option <br /> <br />ACTION TO BE CONSIDERED: <br />Approve the PERA (Public Employees Retirement Association) Phased Retirement Option <br />(PRO)Agreement for Steve Westerhaus. <br /> <br />BACKGROUND: <br />PERA began offering public employees a phased retirement program several years ago to create a <br />flexible environment where members can transition into retirement, and employers can provide the <br />new replacement employee time with the retiring employee for knowledge transfer. The employee’s <br />participation in the PRO program is at the discretion of the employer. <br /> <br />Retirees who participate in the PRO program must stay in their same position with the same employer, <br />reduce their schedule by at least 25% and may not work more than 1,044 hours in a one-year period. <br />This program allows the retiree to begin collecting full PERA benefits and earn a part-time paycheck at <br />the same time. Employees may participate in the PRO program for up to five years. <br /> <br />Steve Westerhaus has been employed by the City of Little Canada and served as the Building Official <br />for both Little Canada and Falcon Heights since January 2003. Prior to 2003, he worked for a private <br />inspection company for several years that served as Little Canada’s building official. He has over 25 <br />years of building inspection knowledge about the city and there is a real benefit to having him be able <br />to overlap and train his replacement. City staff is very supportive of having Mr. Westerhaus <br />participate in the PRO program. <br /> <br />Mr. Westerhaus has indicated that he intends to retire from working full-time on April 30, 2025, and <br />would like to participate in the PRO program and work two days a week beginning May 1, 2025. <br />Currently he is planning to do the PRO program through the end of 2025, but staff and Mr. Westerhaus <br />will discuss during the 2026 budget process if there is an interest or need for him to continue working <br />part-time into 2026. Council would review any potential extension of his PRO program participation. <br /> <br />Budget Impact <br />The additional 16 hours per week of pay for Mr. Westerhaus was not budgeted in 2025, but permit fees <br />are already showing to be higher than budgeted this year which would help defer the additional payroll <br />cost. There is also the possibility that Little Canada may partner with St. Anthony to provide their <br />building inspection services, and could begin as soon as sometime in 2025, which would provide <br />additional revenue to help offset the cost of the PRO program. <br /> <br />RECOMMENDATION: <br />Staff recommends Council approve the PERA Phased Retirement Option Agreement for Steve <br />Westerhaus, from May 1, 2025 to December 31, 2025.