HomeMy WebLinkAboutItem 6c. Biennial CPI Increases to Council, Planning Commission, and Architectural Review Commission Salaries Item 6c
Department: Administration
Cost Center: 1021
For Agenda of: 4/2/2024
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Megan Wilbanks, Deputy City Clerk
SUBJECT: APPROVE BIENNIAL CONSUMER PRICE INDEX INCREASES TO
COUNCIL, PLANNING COMMISSION, AND ARCHITECTURAL REVIEW
COMMISSION SALARIES
RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, setting new salaries for the Mayor, Council Members, Planning
Commissioners, and Architectural Review Commissioners,” effective the first pay period
in January 2025.
POLICY CONTEXT
City of San Luis Obispo Charter Section 410 (Compensation) 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. Additionally, in 2001 Council adopted Resolution No. 9189, directing
a review of compensation for Architectural Revie w Commissioners and Planning
Commissioners in conjunction with its periodic review of Council compensation.
DISCUSSION
The City Council has adopted a "Council Policies and Procedure Manual" to define and
ensure the proper conduct of the City's business by the City Council and in compliance
with State law and the City's Charter and Ordinances. The Council Policies and
Procedures Section 2.6 specifies that a seven -member citizen committee be appointed
by January 31st of even numbered years and, further, th at committee recommendations
be forwarded to the Council no later than May 1st. In 2022 Council amended the Council
Policies and Procedures adding Section 2.1.1 (Consumer Price Index Increases.)
During the biennial review period, should Council choose not to initiate a comprehensive
review of their compensation package via the formation of a Council Compensation
Committee, they may direct staff to increase Council, Planning Commission, and
Architectural Review Commission salaries based on the CPI. The CPI is updated monthly
by the U.S. Bureau of Labor Statistics and measures the average change in prices over
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Item 6c
time in a fixed market basket of goods and services. Historically, the city utilizes the CPI
for All Urban Consumers in the Los Angeles, Long Beach and Anaheim metropolitan area.
Based on the year-end total for January 2023 (5.8%) and January 2024 (2.5%), the
following sections break down the proposed salary increases for each body:
City Council
The monthly salaries of the Mayor and Council Members would be increased from
$2,696 to $2,923 and $2,139 to $2,319 per month, respectively. The compensation
package for expenses, benefits, and professional development would remain
unchanged. This increase to salaries will increase Council’s annual budget for the
remainder of the 2023-25 Financial Plan by $1,366 and $4,335 respectively.
Planning Commission Salary
The salaries of the Planning Commissioners would be increased from $80 to $86 per
meeting, and the maximum amount not to be exceeded per month would increase
from $320 to $347. This increase to salaries will increase Community Development’s
annual budget for the remainder of the 20 23-25 Financial Plan by $94.
Architectural Review Commission Salary
The salaries of the Architectural Review Commissioners would be increased from $80
to $86 per meeting, and the maximum amount not to be exceeded per month would
increase from $320 to $347. This increase to salaries will increase Community
Development’s annual budget for the remainder of the 2023-25 Financial Plan by $94.
Previous Council or Advisory Body Action
On December 7, 2021, Council directed staff to defer the appointment of a Council
Compensation Committee and directed staff to return to Council with a Resolution
amending the Council Policies and Procedures to allow biennial Consumer Price
Index1 increases to Council, Planning Commission, and Architectural Review
Commission salaries without appointing a Council Compensation Committee (Staff
Report, Minutes).
1 The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market
basket of goods and services. The Bureau of Labor Statistics publishes CPls for two population groups: (1)
a CPI for All Urban Consumers (CPI-U) which covers approximately 93 percent of the total U.S. population
and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29
percent of the total U.S. population. The CPI-U includes, in addition to wage earners and clerical workers,
groups such as professional, managerial, and technical workers, the self -employed, short-term workers,
the unemployed, and retirees and others not in the labor force.
The CPI is based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors'
and dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Each
month, prices are collected in 75 urban areas across the country from about 6,000 housing units and
approximately 22,000 retail establishments-department stores, supermarkets, hospitals, filling stations, and
other types of stores and service establishments. All taxes directly associated with the purchase and use
of items are included in the index.
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Item 6c
On April 19, 2022, Council amended their Policies & Procedures Manual to add
Section 2.1.1, Consumer Price Index Increases, which allows biennial CPI increases
to be applied to Council, Planning Commission, and Architectural Review
Commission salaries, effective the first full pay period in January, without convening
a Council Compensation Committee. Subsequently, Council also adopted
Resolution No. 11319 (2022 Series), which applied the CPI increase and set the
new salaries for a 2-year period. (Staff Report, Minutes)
On July 18, 2023, Council deferred the appointment of a Compensation Committee
and directed staff to return in April 2024 to present the biennial CPI increase to
Council, Planning Commission, and Architectural Review Commission salaries.
They also directed staff to incorporate the formation and staffing of a Council
Compensation Committee into the 2025-27 Financial Plan work program. (Staff
Report, Minutes)
Public Engagement
No public engagement has been done for this item; however, t he public will have an
opportunity to provide public comment in writing prior to the meeting or as public comment
during the 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: No
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $5,748 $ $11,497
State
Federal
Fees
Other:
Total $ $5,748 $ $11,497
There is no fiscal impact from this recommendation until FY 2024 -25. Staff are in the
process of developing the 2024-25 Supplemental Budget and will include the proposed
CPI increase of $5,748 (six months, January 1, 2025 - June 30, 2025) in the staffing
budget. All subsequent budgets will include the CPI increase for the full fiscal year
($11,497).
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Item 6c
ALTERNATIVES
Do not adopt the Resolution. Council could decide not to allow the biennial CPI to
increase to Council, Planning Commission, and Architectural Review Commis sion
salaries.
ATTACHMENTS
A - Draft Resolution setting new salaries for Council, Planning Commission, and
Architectural Review Commission
Page 22 of 596
R ______
RESOLUTION NO. _____ (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, SETTING NEW SALARIES FOR THE MAYOR,
COUNCIL MEMBERS, PLANNING COMMISSIONERS, AND
ARCHITECTURAL REVIEW COMMISSIONERS
WHEREAS, Charter Section 410 provides for compensation and reimbursement
of expenses for the Mayor and Council Members and establishes a procedure for a
biennial review by a five-member Council Compensation Committee; and
WHEREAS, on April 19, 2022, Council amended their Policies & Procedures
Manual to add Section 2.1.1, Consumer Price Index Increases, which allows biennial
Consumer Price Index increases to be applied to Council, Planning Commission, and
Architectural Review Commission salaries, effective the first full pay period in January,
without convening a Council Compensation Committee ; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Chapter 2.1 of the Council Policies and Procedures shall be amended
to read as follows:
Effective the first full payroll period in January 2025, compensation for services
rendered in an official capacity shall be provided as follows:
The Mayor shall receive a monthly salary of $2,923 and each City Council
Member shall receive a monthly salary of $2,319.
Planning Commissioners shall receive $86 per meeting, not to exceed $347
per month.
Architectural Review Commissioners shall receive $86 per meeting, not to
exceed $347 per month.
Page 23 of 596
Resolution No. _____ (2024 Series) Page 2
R ______
SECTION 2. Resolution Number 11319 (2022 Series) is hereby repealed and
superseded to the extent inconsistent herewith.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 20 24.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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