Capitola Special City Council · Monday, September 28, 2026, 10:30 AM · Item A · General Government / Public Hearings
Council to appoint Rudolph Escalante as Interim City Manager and start permanent search
In plain English
Capitola's City Manager, Jaime Goldstein, announced his retirement on September 10, 2026, after 18 years with the city. The Council is asked to appoint Rudolph (Rudy) Escalante as Interim City Manager under a state law that lets public agencies hire a retired public employee temporarily while they search for a permanent hire, approve his employment agreement, and tell staff to start recruiting a permanent City Manager. A yes vote would put Escalante in charge of day-to-day city operations at $121.88 per hour, with no benefits, capped at 960 hours.
The Interim City Manager runs the city's daily operations and supports the Council, staff, and community during the gap left by an 18-year City Manager's retirement, and the vote also starts the search for a permanent replacement.
Key facts
- Pay rate of $121.88 per hour, with no benefits attached to the temporary assignment.
- Work is capped at 960 hours across all CalPERS employers in a fiscal year, for a maximum cost of $117,000.
- Appointment is made under Government Code Section 21221(h), which allows a retiree to fill a vacancy on an interim basis during recruitment when the job requires specialized skills.
- Rudy Escalante was Capitola Chief of Police from 2012 to 2017, and previously a Lieutenant with the Santa Cruz Police Department and Deputy Chief with the Watsonville Police Department.
- City Manager Jaime Goldstein announced his retirement on September 10, 2026 after 18 years of service.
Reasons to support
- The city needs interim leadership to keep operations running and support the Council, staff, and community while a permanent City Manager is recruited.
- Escalante's executive leadership experience, familiarity with Capitola, and established relationships in the broader Santa Cruz community fit the transition period.
- The hourly arrangement carries no benefits and is legally capped at 960 hours, holding the maximum cost to $117,000.
Reasons to oppose or change it
- The appointment is made directly by resolution rather than through a competitive process, so the Council is choosing one named candidate for interim leadership without comparing others.
- Escalante's cited background is in police leadership — Lieutenant, Deputy Chief, and Chief of Police — rather than in running a city manager's office, which some may question as the basis for the "specialized skills" finding required by Government Code Section 21221(h).
- The 960-hour cap applies across all CalPERS employers in a fiscal year, so the interim can only work part of a full-time year, which could limit availability if the permanent recruitment runs long.
Official wording
Employment Agreement of Retired Annuitant (Interim City Manager) Recommended Action: 1) Adopt a resolution appointing Rudolph Escalante as Interim City Manager pursuant to Government Code Section 21221(h); 2) approve a retired annuitant employment agreement; and 3) direct staff to begin the recruitment process for a permanent City Manager.
Summary written by claude-opus-5 from the agenda and the Staff report (agenda packet, page 3). It can contain mistakes. The official documents govern.