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HomeMy WebLinkAboutItem 7b. Consider creating a committee to review the City's Election Campaign Regulations and or Council and Advisory Body Compensation Item 7b Department: Administration Cost Center: 1021 For Agenda of: 5/20/2025 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 THE CITY’S ELECTION CAMPAIGN REGULATIONS AND/OR COUNCIL AND ADVISORY BODY COMPENSATION RECOMMENDATION Discuss and provide direction on the following: 1. Election Campaign Regulations: a) Form an Election Campaign Regulations Committee to review whether the maximum allowable contribution should be increased to $500 to align with Senate Bill 1243 (Dodd); b) Or direct staff to return in April 2026 with an Ordinance amending Section 2.40.040 of the Municipal Code to increase the maximum allowable contribution from $250 to $500; c) Or defer the appointment of an Election Campaign Regulations Committee and leave the maximum allowable contribution unchanged. 2. Council and Advisory Body Compensation: a) Form a Council Compensation Committee to 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, 2026; b) Or direct staff to return in April 2026 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. c) Or defer the appointment of a Council Compensation Committee and leave the compensation package unchanged. 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 $250. Section 2.40.140 provides that the Council may appoint a committee of at least five citizens to study the efficacy of this Chapter. Page 533 of 555 Item 7b 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. If the Council decides to form a Committee to review compensation, a seven-member review committee shall be appointed and a proposed recommendation in resolution form shall be presented to the City Council no later than the first City Council meeting in May. 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. Council’s Polices and Procedures Section 2.1.1 approved in 2021 indicates t hat if City Council determines that a full review of City Council, Planning Commission and Architectural Review Commission is not necessary they can instead approve a Consummer Price Index (CPI) increase. DISCUSSION Elections Campaign Regulations and SB 1243 and SB 1181 Approved by the Governor in September 2024 and effective January 1, 2025, Senate Bill 1181 (Attachment A) and Senate Bill 1243 (Attachment B) amended Section 84308 of the Political Reform Act. SB 1181 and SB 1243 make four significant changes to the Levine Act (Government Code Section 84308):  Raises the threshold of a potentially disqualifying campaign contribution from $250 to $500 or more within the twelve (12) months before an item is “pending” before the elected official;  Extends the period of time that a potentially disqualifying campaign contribution can be “cured” through the return of the contribution from 14 to 30 days;  Exempts City Attorneys and County Counsels from the law, where the attorney is not the final decisionmaker; and  Clarifies when a government decision is “pending” such that the campaign contribution restrictions are triggered. Page 534 of 555 Item 7b Dollar Amounts The legislative changes referenced above raise the threshold for a conflicted contribution from the previous limit of $250 to $500 (in the aggregate per candidate). Aggregated contributions of $500 and below will not trigger the Act’s recusal requirements. Further, the restrictions on campaign contributions made in the 12 months after a n agency’s decision now only applies to aggregated contributions of more than $500. Safe Harbor/Cure Timing The changes extend the time period for a local official to return a potentially conflicting contribution from 14 to 30 days after the official makes the covered decision or knows , or should have known, about the contribution and relevant proceeding (whichever is later). It is anticipated that the Fair Political Practices Commission (FPPC) will institute a new rulemaking proceeding to align FPPC regulations with this new legislation. Contributions by Agents The changes prohibit contributions by “agents” to local officials during the entire time that the agent’s party or participant has a proceeding “pending” before the local official, board, or agency. This prohibition is broader than the ban on lobbyist contributions imposed by some jurisdictions and covers all “agents.” SB 1243 specifies that contributions from agents are not aggregated with those of the parties with business pending before local government boards or agencies. SB 1243 also makes clear that persons providing technical assistance, such as architects, engineers, or similar professionals, are not agents for purposes of the Levine Act when communicating with officials purely related to their technical submissions and not otherwise attempting to influence a proceeding. Exclusion of Local Government Counsel SB 1243 and SB 1181 explicitly exclude County Counsel and City Attorneys from the application of the Levine Act when providing legal advice on a matter where the attorney “does not have the authority to make a final decision in the proceeding.” City Elections Campaign Regulations The City of San Luis Obispo’s Elections Campaign Regulations are codified in the Municipal Code Section Chapter 2.40. Campaign contributions were last amended in July 2024. At that time the total per-person contribution limit was reduced to $250 from $300 to comply with SB 1439 (also known as the Levine Act), which became effective January 1, 2024. Municipal Code Section 2.40.140, states that the Council may appoint a committee, which gives Council discretion on whether to appoint the Committee or not to review and make recommended changes to the City’s campaign regulations . In other words, the Council could raise the per-person contribution amount without appointing a committee by directing staff to return with the appropriate ordinance amendment. Page 535 of 555 Item 7b 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 (Attachment C) 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. On April 2, 2024 City Council approved a CPI increase of 8.3% for the City Council, Planning Commission and Architectural Review Commission. Committee Formation If the Council decides to establish both the Elections Campaign Reg ulations Committee and the Council Compensation Committee, staff recommends combining them into a single committee to most efficiently use time and resources. If formed this would be a Brown Act committee with all meetings noticed and open to the public. When a committee has been convened, past practice has been that Council Members nominate individuals to serve on the committee by submitting names to the City Clerk. The City Clerk recruits individuals using the following criteria: 1) by first calling those 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, Council has also appointed alternates if a member was unable to attend a meeting. Committee Members who have served in the last 10 years are listed in Attachment D. If the Council opts to proceed with the committee review, staff recommends that the City Clerk receive names of individuals from councilmembers by June 15, 2025, 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 July 13, 2025 City Council meeting. Previous Council or Advisory Body Action On January 7, 2020, the Council Compensation Committee recommended increasing the monthly compensation for the Mayor to $2,508 and City Council to $1,990 , and to defer review of Planning Commission and Architectural Review Commission’s compensation. On April 19, 2022, 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. On April 2, 2024, Council approved a CPI increase to the Council, Planning Commission and Architectural Review Committee’s monthly compensation and also lowered the Page 536 of 555 Item 7b maximum allowable campaign contribution from $300 to $250 due to changes to Section 84308 of the Political Reform Act based on the Levine Act. Public Engagement No public engagement has been done for this item; however, the public will have an opportunity to comment on this item at or before 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: 2025-26 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. Any increases to compensation would be included in the development of the 2026-27 Supplemental Budget. ALTERNATIVES 1. Election Campaign Contributions: a. Forego the creation of the Elections Campaign Regulations Review Committee and direct staff to return at a future meeting to present an ordinance amendment, which would increase the per-person contribution limit from $250 to $500. b. Forego the creation of the Elections Campaign Regulations Review Committee and do not direct staff to return at a future meeting to present an Page 537 of 555 Item 7b ordinance amendment, which would leave the per-person contribution limit at $250. c. Appoint a separate Elections Campaign Regulations Committee. Direct Staff to begin the process to convene a 7-member Elections Campaign Regulations Committee to consider increasing the per-person contribution limit from $250 to $500, in alignment with Senate Bill 1243. 2. Council and Advisory Body Compensation a. 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). b. Appoint a separate Council and Advisory Body Compensation Committee. Direct staff to begin the process to convene a 7-member Council Compensation Committee to review the entire compensation package for Council, Planning Commission, and Architectural Review Commission. ATTACHMENTS A - Senate Bill 1181 B - Senate Bill 1243 C - Council Policies & Procedures Chapter 2 (Council Compensation) D - Previously Appointed Elections Campaign Regulations Committee and Council Compensation Committee Members Page 538 of 555 Page 539 of 555 Page 540 of 555 Page 541 of 555 Page 542 of 555 Page 543 of 555 Page 544 of 555 Page 545 of 555 Page 546 of 555 Page 547 of 555 Page 548 of 555 Page 549 of 555 Page 550 of 555 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 551 of 555 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 552 of 555 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 553 of 555 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 554 of 555 Elections Campaign Regulations Committee Former Members 2009 Members John Ewan Ty Griffin Mike Latner (Alternate ) Christine Mulholland Pam Voges Dodie Williams 2013 Members 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 Members (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 (increased 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 Members (No Committee formed; biennial CPI increases implemented via R-11318) Page 555 of 555 Consider Creating a Committee to Review Elections Campaign Regulations and/or Council Compensation Recommendation Consider creating a committee to review Elections Campaign Regulations and/or Council Compensation, which would: 1.Elections Campaign Regulations a.Form an Elections Campaign Regulations Committee to review whether the maximum allowable contribution should be increased to $500 to align with Senate Bill 1243 (Dodd); b.Or direct staff to return in April 2026 with an Ordinance amending Section2.40.040 of the Municipal Code to increase the maximum allowable contribution from $250 to $500; c.Or defer the appointment of an Election Campaign Regulations Committee and leave the maximum allowable contribution unchanged. Recommendation 2.Council and Advisory Body Compensation – a.Form a Council Compensation Committee to 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, 2026; b.Or direct staff to return in April 2026 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. c.Or defer the appointment of a Council Compensation Committee and leave the compensation package unchanged. Election Campaign Regulations 1.Senate Bill 1243 (Dodd) became effective January 1, 2025 which amended the scope of Section 84308 of the Political Reform Act to: •Raised the threshold of a potentially disqualifying campaign contribution from $250 to $500 or more within the twelve (12) months before an item is “pending” before the elected official; •Extended the period that a potentially disqualifying campaign contribution can be “cured” through the return of the contribution from 14 to 30 days; •Exempts City Attorneys and County Counsels from the law, where the attorney is not the final decisionmaker; and •Clarified when a government decision is “pending” such that the campaign contribution restrictions are triggered. Election Campaign Regulations 1.Elections Campaign Regulations are codified in Municipal Code Section Chapter 2.40 and were lowered in 2024 to the current the per- person contribution limit of $250 to comply with the SB1439. 2.Municipal Code Section 2.40.140 states that the Council may appoint a Committee of at least five citizens to review Elections Campaign Regulations, which gives Council discretion on whether to appoint the Committee or not to review and make recommended changes to the City’s campaign regulations. Council Compensation 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.In 2024 Council approved a CPI increase of 8.3% increasing the monthly amount for Mayor to $2,923, Council Members to $2,319 and PC and ARC to $347. The last full review of compensation was in 2020. 4.2012 was the last time that changes were made to Council’s professional development amounts providing $3600 for Mayor and $2700 for Council Members. Council Compensation Committee 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 at the same time as the review of the City Council compensation Council Compensation Committee Committee Selection: •A seven-member committee consisting of at least one previous elected official and one member of the Personnel Board •Appointed no later than the last meeting in January 2026 •Recommendation in resolution form presented to Council no later than the first meeting in May 2026 •If the recommendation of the Committee is approved by City Council then it would be effective January 2027. Council Compensation Committee Committee Process Timeline (if Council decides to appoint): •Council Nominations are due by June 13th •Council appointments at the July 15th City Council Meeting •Committee meets from late September 2025 to February 2026 o Number of meetings dependent on the scope of review •Recommendation to Council in March 2026 Elections Regulations and/ or Council Compensation Committee Council could appoint: •A committee to review the campaign contribution limit and •A committee to review Council, Planning Commission and Architectural Review Commission compensation, or •One committee to review both •If this option is selected staff is recommending using the make up outlined for the Council Compensation Committee as it is more defined Recommendation Consider creating a committee to review Elections Campaign Regulations and/or Council Compensation, which would: 1.Elections Campaign Regulations a.Form an Elections Campaign Regulations Committee to review whether the maximum allowable contribution should be increased to $500 to align with Senate Bill 1243 (Dodd); b.Or direct staff to return in April 2026 with an Ordinance amending Section2.40.040 of the Municipal Code to increase the maximum allowable contribution from $250 to $500; c.Or defer the appointment of an Election Campaign Regulations Committee and leave the maximum allowable contribution unchanged. Recommendation 2.Council and Advisory Body Compensation – a.Form a Council Compensation Committee to 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, 2026; b.Or direct staff to return in April 2026 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. c.Or defer the appointment of a Council Compensation Committee and leave the compensation package unchanged.