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HomeMy WebLinkAboutItem 7b. Consider creating a Committee to review Elections Campaign Regulations and-or Council Compensation Item 7b Department: Administration Cost Center: 1021 For Agenda of: 7/18/2023 Placement: Business Estimated Time: 60 Minutes FROM: Greg Hermann, Deputy City Manager Prepared By: Teresa Purrington, City Clerk SUBJECT: CONSIDER CREATING A COMMITTEE TO REVIEW ELECTIONS CAMPAIGN REGULATIONS AND/OR COUNCIL COMPENSATION RECOMMENDATION Discuss and consider creating a committee to review Elections Campaign Regulations and/or Council Compensation, which would: 1. Elections Campaign Regulations – Review whether the maximum allowable contribution should be lowered to $250 to align with Senate Bill 1439. 2. Council and Advisory Body Compensation – a) Review the full Council compensation package and compensation for Planning Commission and Architectural Review Commission members and make recommendations to the City Council no later than May 1, 2024; b) Or, defer the appointment of a Council Compensation Committee and direct staff to return in April 2024 with an increase to Council compensation consistent with the Council Policies and Procedures (CP&P 2.1.1) authorization to provide Consumer Price Index (CPI) increases to Council, Planning Commission, and Architectural Review Commission salaries without appointing a Council Compensation Committee. Policy Context Elections Regulations – Municipal Code Chapter 2.40 outlines Elections Campaign Regulations and Section 2.40.040A establishes the current total contribution limit per person at $300. Section 2.40.140 provides that the Council may appoint a committee of at least five citizens to study the efficacy of this Chapter. Council Compensation - Charter Section 410 provides that compensation for the Mayor and Council shall be reviewed biennially in even years and Resolution No. 9189 (2001 Series) provides that Planning Commission and Architectural Review Commission compensation will be reviewed with the biennial review of the Council compensation. Page 151 of 165 Item 7b DISCUSSION Elections Campaign Regulations and SB 1439 Approved by the Governor in September 2022 and effective January 1, 2023, Senate Bill 1439 (SB 1439) broadens the scope of Section 84308 of the Political Reform Act to prohibit local elected officials from taking part in licensing, permitting, and other use entitlement proceedings involving a party or participant who has contributed more than $250 to the official within the 12 months prior to the proceedin g. SB 1439 also extends the period in which an official is prohibited from receiving a contribution exceeding $250 from a party or participant in the proceeding from three to 12 months after the final decision. The full text of SB 1439 is provided in Attachment A. Gov. Code Section 84308 contains the following restrictions applicable to local elected officials, as amended by SB 1439: 1. 12 Months Prior to Proceeding (Disclosure and Recusal): An officer of an agency must disclose on the record of the proceeding and recuse themselves from a decision on a license, permit, or other entitlement for use if the officer has willfully or knowingly received a contribution of more than $250 in the preceding 12 months from either: a. A party or their agent within the preceding 12 months, or b. A participant or participant’s agent if the official knows or has reason to know that the participant has a financial interest as defined in the Political Reform Act. i. A “participant” is defined as anyone who has a financial interest in the decision as defined in the Political Reform Act, who lobbies officers or employees of the agency, testifies in person before the agency, or otherwise acts to influence officers of the agency. Note this definition would apply to a neighbor of a project whose property is materially impacted under FPPC Regulation 18702.2 and who speaks at the hearing or contacts the city to oppose the project. 2. During and 12 Months After Proceeding (Campaign Contribution Prohibition): An officer of an agency is prohibited from accepting, soliciting, or directing a contribution of more than $250 from a party or participant to a proceeding, or his or her agent, while the proceeding is pending and for 12 months after the date of the final decision in the proceeding. 3. Opportunity to Cure: An official has a limited opportunity to cure: a. Contributions made 12 months prior to the decision: The officer may participate in the decision if the officer returns the contribution or the portion in excess of $250 within 30 days from the time the officer knows, or should have known, about the contribution and the proceeding involving a licens e, permit, or other entitlement for use. Page 152 of 165 Item 7b b. Contributions made within 12 months after the decision: The officer may cure the violation by returning the contribution, or the portion in excess of $250, within 14 days of accepting, soliciting, or directing the contribution, whichever comes latest, but only if the officer did not knowingly and willfully accept, solicit, or direct the prohibited contribution. The City of San Luis Obispo’s Elections Campaign Regulations regarding campaign contributions were last reviewed and amended in 2013. At that time the total per-person contribution limit was set at $300. At the Council’s retreat on April 6, 2023, Council requested that staff bring an item to Council to consider lowering the per -person contribution limit to $250 to align with SB 1439. In response, staff indicated that the Council would need to appoint an Elections Campaign Regulation Review Committee to review the proposed change; however, upon further review of Municipal Code Section 2.40.140, it states that the Council may appoint a Committee, which gives Council discretion on whether to appoint the Committee or not. In other words, the Council could lower the per-person contribution amount without appointing a committee by directing staff to return with the appropriate ordinance. Council Compensation Charter Section 410 provides that compensation for the Mayor and Council shall be reviewed biennially in even-numbered years. Recommended adjustments would then become effective the following January for the next two-year period. The Council Policies and Procedures (CP&P) Chapter 2 outlines the implementation of the review of compensation. In April 2022, Council adopted Resolution No. 11318 (2022 Series), which amended the CP&P to allow for Consumer Price Index (CPI) increases in lieu of forming a Council Compensation Committee (Attachment B). Committee Formation If Council decides to create both the Elections Campaign Regulations Committee and the Council Compensation Committee, then staff recommends consolidating the topics into one committee. The factors that lead to this recommendation are the time and work effort required to assemble multiple advisory committees, the staff time and work effort needed to support the two committees, and the impact to staff’s current workload. When a committee has been convened, past practice has been that Council Members nominated individuals to serve on the committee by submitting names to the City Clerk. The City Clerk recruited individuals using the following criteria: 1) by first calling th ose qualified to serve and who received more than one nomination and 2) by contacting one nominee from each Council Member who had submitted recommendations. In the past, in the event that a member was unavailable to attend a committee meeting, Council has appointed alternates. Committee Members who have served in the last 10 years are listed in Attachment C. Page 153 of 165 Item 7b If the Council opts to proceed with the committee review, staff recommends that the City Clerk receive names of individuals from Council members by August 15, 2023, that the City Clerk confirm interest with individuals suggested, and that the names of all interested individuals be presented to Council and the public for discussion at the September 5, 2023, City Council meeting. Previous Council or Advisory Body Action The last review of the Council, Planning Commission, and Architectural Review Commission’s compensation was in 2022. At that time, Resolution No. 11318 (2022 Series) was adopted, providing a biennial CPI increase to the Council, Planning Commission, and Architectural Review Commissions’ compensation in lieu of appointing a Council Compensation Committee. Public Engagement No public engagement has been done for this item; however, the public will have an opportunity to comment on this at the meeting. Furthermore, should the Council appoint a committee, these meetings will be open to the public and any recommendations will be presented at a publicly noticed meeting. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2023-24 Funding Identified: N/A Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ N/A $ $ $ State Total $N/A $ $ $ The cost to staff a committee is anticipated every two years when the budget is approved for the City Administration and IT Department. Page 154 of 165 Item 7b ALTERNATIVES 1. Council could decide to forego the creation of the Elections Campaign Regulations Review Committee. As Council is not required to create said Committee, they could direct staff to return at a future meeting to present an ordinance, which would lower the per-person contribution limit from $300 to $250. 2. Council could decide to forego the creation of a Council Compensation Committee. As Council is not required to create said Committee, they could opt to approve just the biennial CPI increases to Council, Planning Commission, and Architectural Review Commission salaries, as authorized by Resolution No. 11318 (2022 Series). 3. Appoint a separate Council Compensation Committee. Direct staff to begin the process to convene a Council Compensation Committee to review the entire compensation package for Council, Planning Commission , and Architectural Review Commission. Staff does not recommend this option as staff time and resources are stretched thin with previously identified priorities. 4. Appoint a separate Elections Campaign Regulations Review Committee. Direct Staff to begin the process to convene an Elections Campaign Regulations Review Committee to consider lowering the per-person contribution limit from $300 to $250, in alignment with Senate Bill 1439. Staff does not recommend this option as staff time and resources are stretched thin with previously identified priorities. ATTACHMENTS A - Senate Bill 1439 Campaign Contributions B - Council Policies & Procedures Chapter 2 (Council Compensation) C - Previously Appointed Elections Campaign Regulations Review Committee and Council Compensation Committee Members Page 155 of 165 Page 156 of 165 Page 157 of 165 Page 158 of 165 Page 159 of 165 Page 160 of 165 Council Policies & Procedures Manual (rev. 05/02/2023) Page 21 CHAPTER TWO COUNCIL COMPENSATION 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 2.6). 2.1 SALARIES FOR MAYOR AND COUNCIL MEMBERS Compensation for services rendered in an official capacity shall be established by resolution duly adopted and consistent with the rules established in the Charter. 2.1.1 CONSUMER PRICE INDEX INCREASES Consumer Price Index (CPI) increases will be applied to Council, Planning Commission, and Architectural Review Commission salaries biennially. CPI increases are not subject to review by a Council Compensation Committee. 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. If the Mayor and Council Members elect to opt out of medical, dental, and vision that individual member will receive the opt-out amount equal to City department heads. Individual Council Members may waive any or all of the compensation provided to them. Such a waiver shall affect only the individual choosing to waive compensation for the period of time specified by that individual. An individual waiver shall not be binding on any other current or future Council Member. Should any Council Member wish to make a change in their individual compensation, staff will process a personnel action form to effectuate this change. 2.3 PROFESSIONAL DEVELOPMENT Allowances shall be budgeted for the Mayor and each Council Member as follows: 2.3.1 PROFESSIONAL DEVELOPMENT - INCLUDING TRIPS AND MEETINGS 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. Page 161 of 165 Council Policies & Procedures Manual (rev. 05/02/2023) Page 22 2.3.2 START UP ALLOWANCE An additional professional development allowance shall be budgeted to each new Mayor and Council Member to help accelerate their comprehension of municipal and legislative operations during the first 12 months following the taking of office and the amounts shall be as set forth in the applicable financial plan adopted by the Council. 2.4 CITY BUSINESS AND MILEAGE REIMBURSEMENT Quarterly allowances shall be budgeted for the Mayor and each Council Member as stated in the Financial Plan. 2.4.1 CITY BUSINESS For costs incurred in connection with official City business. Said allowance shall be used for in-county expenses and shall include all meals, tickets, periodicals, dues, subscriptions, and similar miscellaneous expenses. 2.4.2 MILEAGE For official travel within the County of San Luis Obispo, reimbursement shall be made upon submittal of an official mileage expense form: 2.5 GENERAL PROCEDURES AND LIMITATIONS Appropriate budgetary practices and accounting controls shall be established to ensure that expenditures and reimbursements are in compliance with approved budget allocations. The Mayor and each Council Member is expected to plan business activities so as to stay within their budget. When exceptional circumstances require that additional amounts be allocated to accounts, formal Council action shall be required. 2.5.1 ACCOUNTING An account shall be established in the name of each Council Member with all expenditures charged to the individual Council Member or Mayor. If any account is depleted prior to the end of the fiscal year, additional allocations shall require a specific action of the City Council. Claims for reimbursement as specified in Section 2.4, above, may be submitted monthly but the aggregate of three-monthly claims may not exceed the quarterly maximum. Receipts shall be submitted within the fiscal year. The Council budget shall be available for review in the City Clerk's Office and the Mayor and Council Members shall receive periodic statements. Page 162 of 165 Council Policies & Procedures Manual (rev. 05/02/2023) Page 23 2.5.2 REIMBURSEMENT LIMITATION The City's adopted Travel Guidelines shall govern all expenditures for non local professional development and conferences. These guidelines include all non local official meals, tuition or fees, transportation to meeting sites, materials, and telephone usage. 2.5.3 SPECIAL EXPENSES For occasions when the Mayor and/or a Council Member is de signated by the City Council to represent the City at special meetings, reimbursement shall be made from an unallocated Travel Expense Account. 2.5.4 OTHER GUIDELINES Any other travel-related issue not specifically governed in these Policies and Procedures shall be adjudicated in accordance with the City of San Luis Obispo adopted Travel Guidelines. 2.5.5 DISCLOSURE AND REPORTING REQUIREMENTS The Political Reform Act of 1974 (Government Code sections 87200) requires local public officials to file a Statement of Economic Interest (Form 700) to disclose certain investments, interests in real property, sources of income, gifts, loans and business positions when assuming office, annually and when leaving office. 2.6 COUNCIL COMPENSATION COMMITTEE A seven-member review committee may be appointed no later than the last City Council meeting in January in even-numbered years and shall bring its proposed recommendations in resolution form to the City Council no later than the first City Council meeting in May. 2.6.1 MEMBERSHIP The committee membership shall have as broad a representation as possible, including but not limited to, one previously elected official, one Personnel Board member, and one citizen at large. 2.6.2 REVIEW RESPONSIBILITY The committee shall review the full Council compensation package including salary, benefits, expense reimbursement, professional development allowances, and any other compensation provided the City Council. Review should include, but shall not be limited to: 1)Compensation of Council Members and Mayors of cities of similar population/budget size; Page 163 of 165 Council Policies & Procedures Manual (rev. 05/02/2023) Page 24 2) Compensation practices of both Charter and General Law cities; 3) Government Code provisions for General Law cities; 4) Council Member and Mayor responsibilities in San Luis Obispo at the time of the committee's review; 5) Any structural changes that may have occurred in municipal government either as a result of state legislation or by actions of the local electorate that may have added to, or deducted, from the duties and responsibilities of the Council Members and/or Mayor. Page 164 of 165 Elections Campaign Regulations Committee Former Members 2009 John Ewan Ty Griffin Mike Latner (Alternate) Christine Mulholland Pam Voges Dodie Williams 2013 Jerri Carrol Andrea Devitt Ty Griffin Wilda Rosen Allen Settle Bob Shanbrom Council Compensation Committee Former Members 2014 Members John Ewan – Previously Elected Official Marcia Nelson – Personnel Board Member Amy Kardel – Citizen-at-Large Ken Tasseff – Citizen-at-Large Gordon Mullin – Citizen-at-Large 2016 - Council Compensation review not conducted 2018 Members John Ewan – Previously Elected Official Frank Guyton – Personnel Board Member Louise Matheny – Citizen-at-Large Dale Stocker – Citizen-at-Large Brett Strickland – Citizen-at-Large Alternate Louise Justice 2020 Members (changed to 7 members) Dan Rivoire – Previous Elected Official Cal Stevens – Personnel Board Member Audrey Bigelow – Citizen-at-Large Kim Bisheff – Citizen-at-Large Garrett Otto – Citizen-at-Large Jenn Stubbs – Citizen-at-Large Ron Yukelson – Citizen-at-Large 2022 – No Committee formed, biennial CPI increases implemented (R-11318, 2022) Page 165 of 165 Consider creating a committee to review Elections Campaign Regulations and/or Council Compensation, which would: 1.Elections Campaign Regulations – Review whether the maximum allowable contribution should be lowered to $250 to align with Senate Bill 1439. 2.Council and Advisory Body Compensation – a) Review the full Council compensation package and compensation for Planning Commission and Architectural Review Commission members and make recommendations to the City Council no later than May 1, 2024; b) Or, defer the appointment of a Council Compensation Committee and direct staff to return in April 2024 with an increase to Council compensation consistent with the Council Policies and Procedures (CP&P 2.1.1) authorizing Consumer Price Index (CPI) increases to Council, Planning Commission, and Architectural Review Commission. 1.Senate Bill 1439 became effective January 1, 2023 which broadens the scope of Section 84308 of the Political Reform Act to: a.Prohibit local elected officials from taking part in licensing, permitting, and other use entitlement proceedings involving a party or participant who contributed more than $250 to the official within the 12 months prior to the proceeding b.Also extends the period in which an official is prohibited from receiving a contribution exceeding $250 from a party or participant in the proceeding from three to 12 months after the final decision. 2.Also includes a limited opportunity to cure the violation by returning the contribution or the portion in excess of $250 within either 30 or 14 days depending on certain circumstances. 1.On April 6, 2023 Council requested that staff bring an item to Council to consider lowering the per-person contribution limit to $250. 2.Municipal Code Section 2.40.040A adopted in 2013 established the City’s current total contribution limit per person at $300. 3.Municipal Code Section 2.40.140 states that the Council may appoint a Committee to review Elections Campaign Regulations. 1.Charter Section 410 says that compensation for the Mayor and Council shall be reviewed biennially in even-numbered years. 2.Recommended adjustments would be effective the following January for the next two years. 3.The Council Policies and Procedures (CP&P) Chapter 2 outlines the implementation of the review. 4.April 2022, Council amended the CP&P to allow for Consumer Price Index increases in lieu of forming a Council Compensation Committee to review compensation. Committee Review Responsibility: •Full Council compensation package: o Salary, benefits, expense reimbursement, professional development allowances and any other compensation provided the City Council •Resolution 10516 (2014) included a review of compensation for Planning Commission and Architectural Review Commission •Last full review of compensation was in 2020 Committee Selection: •A seven-member committee •Appointed no later than the last meeting in January •Recommendation in resolution for presented to Council no later than the first meeting in May, 2024 •If Recommendation of the Committee approved by City Council then effective January 2025. Committee Process Timeline (if Council decides to appoint): •Council Nominations are due by August 22 •Council appointments during September 5 City Council Meeting •Committee meeting from late September to January 2024 o Number of meetings dependent on the scope of review •Recommendation to Council February 2024 Consider creating a committee to review Elections Campaign Regulations and/or Council Compensation, which would: 1.Elections Campaign Regulations – Review whether the maximum allowable contribution should be lowered to $250 to align with Senate Bill 1439. 2.Council and Advisory Body Compensation – a) Review the full Council compensation package and compensation for Planning Commission and Architectural Review Commission members and make recommendations to the City Council no later than May 1, 2024; b) Or, defer the appointment of a Council Compensation Committee and direct staff to return in April 2024 with an increase to Council compensation consistent with the Council Policies and Procedures (CP&P 2.1.1) authorizing Consumer Price Index (CPI) increases to Council, Planning Commission, and Architectural Review Commission.