The URL can be used to link to this page

Home My WebLink About06-03-08 CAR - C3 Recommendations FROM: Steve Mathis, Chairperson Council Compensation Committee Prepared by: Audrey Hooper, City Clerk SUBJECT: 2008 COUNCIL COMPENSATION COMMITTEE RECOMMENDATION COUNCIL COMPENSATION COMMITTEE RECOMMENDATION: Adopt a resolution amending Council Policies and Procedures to: 1. Include the following sentence as an introduction to Chapter 2, Council Compensation: “In recognition of Council’s service to the community, a salary is provided to compensate for substantial time demands. However, this salary is not intended to be a sustaining income.” 2. Increase salaries for the Mayor and Council Members by 6% effective the first full pay period in January 2009. 3. Maintain the current stipend for the Planning Commissioners and Architectural Review Commissioners. DISCUSSION Background The City of San Luis Obispo's Charter (Section 410) requires that a Council Compensation Committee be formed during even numbered years to review the Mayor's and Council Members' compensation. Recommended adjustments would then become effective the following January for the next two-year period. Additionally, in 2001 Council adopted Resolution No. 9189, directing a review of compensation for Planning Commissioners and Architectural Review Commissioners in conjunction with its periodic review of Council compensation, as set forth in the Council Policies and Procedures. On January 8, 2008, Council appointed the following five members to the Council Compensation Committee: former elected official John Ewan, Personnel Board representative Louise Matheny, and citizens-at-large Amy Kardel, Steve Mathis, and Orval Osborne. The 2006 Council Compensation Committee recommended the monthly compensation for the Mayor and Council Members be increased by $100 per month. No further changes were recommended at that time. Council concurred and approved the increase effective January 1, 2007, setting the Mayor’s salary at $1,200 per month and the Council Members’ at $1,000 per month. Prior to the 2007 increase, Council’s compensation had not been increased since 2000. Taking this into consideration, the 2008 Council Compensation Committee concurred that it is important that small incremental increases should be made during each two-year review. Council Agenda Report—2008 Council Compensation Committee Recommendations Page 2 Members, therefore, recommend a 3% increase per year based on the approximate 3% Consumer Price Index (CPI) over recent years, for a total increase of 6%. This equaled a $60 monthly increase for each Council Member and $72 monthly increase for the Mayor, effective January 1, 2009. Committee Meetings and Review The Committee met twice, on March 12 and April 2, 2008 (Minutes attached). Members reviewed the full Council compensation package including salary, benefits, expense reimbursement, professional development allowances and other compensation provided. In addition, the Committee compared the Council's compensation package with that of Mayors and Council Members in nine other cities (Charter and General Law). As part of the review, the Council Compensation Committee also examined survey results of what the same cities are paying their Planning Commission and Architectural (or Design) Review Committees, if applicable. During its deliberations, the 2008 Council Compensation Committee raised questions regarding the City’s compensation philosophy (Attachment 3). Staff provided members with copies of the City’s current policy, adopted by Resolution No. 9885 (2007 Series). Committee members reviewed the philosophy and agreed that additional clarification regarding the purpose of Council compensation was needed. They also agreed that Chapter 2, Council Compensation, of Council Policies and Procedures would be the appropriate place for that clarification. They therefore recommended that the following language be added as the first sentence under Chapter 2 of Council Policies and Procedures: “In recognition of Council’s service to the community, a salary is provided to compensate for substantial time demands. However, this salary is not intended to be a sustaining income.” Planning Commissioners and Architectural Review Commissioners The compensation for Planning Commissioners and Architectural Review Commissioners was increased in 2001 from $25 to $50 per meeting, with a maximum not to exceed $200 per month. The 2004 Council Compensation Committee did not recommend an increase and none was made at that time. A survey conducted in 2006 indicated that the stipends paid by the City had remained competitive and the 2006 Council Compensation Committee did not recommend an increase. Another survey was conducted in 2008. The stipends continue to be competitive for Planning Commissioners and Architectural Review Commissioners. Therefore, the 2008 Council Compensation Committee again does not recommend an increase. FISCAL IMPACTS The monthly salaries of the Mayor and Council Members should be increased by 6%, raising compensation for Council Members from $1,000 to $1,060 and Mayor from $1,200 to $1,272 per month. (The compensation package for expenses, benefits and professional development is adequate and should remain unchanged.) Council Agenda Report—2008 Council Compensation Committee Recommendations Page 3 The increase to salaries will increase the Council's annual budget for Fiscal Year 2008-2009 by $2,200 and by $4,400 annually thereafter. (These amounts reflect the impact of the increase on benefits as well as on salaries.) The 2008-09 Financial Plan Supplement and subsequent budgets will reflect this change. ATTACHMENTS 1. Minutes of the Council Compensation Committee 2. Compensation Philosophy (Resolution No. 9885, 2007 Series) 3. City Council Compensation Survey 4. Legislative Draft of Proposed Changes to Council Policies and Procedures 5. Resolution Setting Mayor and Council Salaries G:\303-06 Council Comp Committee\Council Comp 2008\06-03-08 CC Agenda Report Recommendations.doc LEGISLATIVE DRAFT – EXCERPT - COUNCIL POLICIES & PROCEDURES CHAPTER TWO COUNCIL COMPENSATION In recognition of Council’s service to the community, a salary is provided to compensate for substantial time demands. However, this compensation is not intended to be a sustaining income. Council compensation and benefits are established every other year by Council action after the Council Compensation Committee conducts a biennial review and makes a recommendation. See Section 6 of this Chapter. 2.1 SALARIES FOR MAYOR AND COUNCIL MEMBERS Effective January 1, 2009, compensation for services rendered in an official capacity shall be provided as follows: Members of the City Council shall receive $1,060 $1,000 per month; and the Mayor shall receive a monthly salary of $1,272 $1,200. (Res. xx 9794, 2008 2006 Series). 2.2 RETIREMENT, MEDICAL, DENTAL, VISION AND LIFE INSURANCE The Mayor and Council Members shall be entitled to city-funded participation in P.E.R.S. retirement. The City shall contribute an amount equivalent to that received by City department heads monthly towards the Mayor and Council Members participation in PEMCHA, dental, vision and life insurance. Any unexpended amount shall not be distributed to the Mayor and Council Members in cash. 2.3 PROFESSIONAL DEVELOPMENT Allowances shall be budgeted for the Mayor and each Council Member as follows: 2.3.1 PROFESSIONAL DEVELOPMENT For costs of professional development and educational conferences designed to improve understanding of and proficiency in municipal affairs. Said allowance shall be used for out-of-county expenses only and shall be reimbursed in accordance with accepted City Travel Guidelines: Annual Allowance: Council Member $1500 Mayor $1800 2.3.2 LEAGUE OF CALIFORNIA CITIES CONFERENCE For the cost of participating in the Annual Conference of the League of California Cities. The City shall also reimburse the following costs for spousal participation, which is encouraged: