HomeMy WebLinkAbout06/03/2008, C5 - 2008 COUNCIL COMPENSATION COMMITTEE RECOMMENDATION r
council M"in°DW� 3 D�
j ac,Enaa aEpoRt
CITY O F SAN LUIS O B 1 S P 0
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.
eS
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 Couhcil 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.doe
�.i 3
ATTACHMENT 1
COUNCIL COMPENSATION COMMITTEE
WEDNESDAY, MARCH 12, 2008—NOON
919 PALM STREET, CONFERENCE ROOM 1
City Clerk Hoover called the meeting to order at noon.
Present:
Council Compensation Committee Members: John Ewan, Amy Kardel, Louise
Matheny, Steve Mathis, and Orval Osborne
City Staff: Audrey Hooper, Rachael Hendricks, Julie O'Connor
The Committee nominated Steve Mathis to serve as Chairperson.
Cfir Clerk Hoover discussed the background and history of the Council Compensation
Committee.
Human Resources Analyst Hendricks reviewed the compensation survey with the
Committee.
City Clerk Hoover discussed the Council expenditure sheet.
The Committee discussed the compensation study and indicated compensation for the
Council seemed to be in line with other cities surveyed.
By consensus, the Committee agreed to explore long term disability for the Mayor and
Council members.
Committee Member Kardell suggested a compensation philosophy for Council. Human
Resources Analvst Hendricks indicated she will bring the employee philosophy to the
next meeting for the Committee to review.
The Committee opted to review the Planning Commission and Architectural Review
Commission compensation at the next meeting of the Council Compensation
Committee.
The next meeting of the Council Compensation Committee will be held on April 2, 2008,
at noon, 919 Palm Street, Conference Room 1.
cis-y
• �1 ATTACHMENT 1
COUNCIL COMPENSATION COMMITTEE
WEDNESDAY, APRIL 2, 2008— NOON
919 PALM STREET, CONFERENCE ROOM 1
Committee Chair Mathis called the meeting to order at 12:05 p.m.
Present:
Council Compensation Committee Members: John Ewan, Amy Kardel, Louise
Matheny, Steve Mathis, and Orval Osborne
City Staff Audrey Hooper, Rachael Hendricks, Julie O'Connor,
Human Resources Intern - Matt LaFreniere
The Committee discussed the Compensation Philosophy (Resolution 9335 2007
Series).
On motion of Committee Member Kardell and seconded by Committee Member Ewan.
the Committee recommended the following language be added as an introduction to
Council Policies& Procedures, Chapter 2: "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"; motion carried 5:0.
The Committee explored long-term disability options for Council. Human Resources
Analyst Hendricks indicated that Council is not currently covered under the program but
could be added at a small cost each month, resulting in an annual expenditure of
approximately$400. However, she noted that the amount is based on Council salary
not a sustaining wage. After further discission, the Committee decided not to take '
action on this item.
The Committee reviewed Council Compensation and agreed that small incremental
increases should take place during each review rather than a large increase over a
period of time. City Clerk Hooper suggested that rationale behind the Committee's
decision be included in the staff report
On motion of Committee Member Osborne and seconded by Committee Member Ewan.
the Committee recommended, based on the approximate Consumer Price Index (CPI)
over recent years, to increase Council Compensation by 6°%, effective January 1, 2009;
motion carried 5:0.
In response to the Committee's inquiry at the March 12"' meeting, City Clerk Hooper
provided information regarding Planning Commission and Architectural Review
Commission Compensation.
14� s
ATTACHMENT i
On motion of Committee Member Ewan and seconded by Committee Member Kardel,
the Committee indicated that, based on the Council Compensation Survey, the Planning
Commission and Architectural Review Commission are currently fairly compensated.
Therefore, the Committee recommended this level be maintained; motion carried 5:0.
City Clerk Hooper indicated she will prepare a draft agenda report and email to the
Committee for recommended changes and anticipated presentation to Council at the
end of May or the first part of June. Committee Chair Mathis will attend the meeting to
present the report and answer Council questions.
ATTACHMENT 2
RESOLUTION NO.9885(2007 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ADOPTING ITS COMPENSATION PHQ.OSOPHY
WHEREAS, the City of San Luis Obispo strives to provide excellent service to the community
at all times, and supports this standard by promoting organizational values including customer service,
productivity,accountability,innovation,initiative,stewardship,and ethics;and
WHEREAS, to achieve our service standards, the City must attract and retain highly qualified
employees who exemplify our organizational values;and
WHEREAS,fostering an environment attractive to such employees depends upon many factors,
including a competitive compensation program.
NOW, THEREFORE,BE IT RESOLVED by the Council of the City of San Luis Obispo that
the City's compensation philosophy is adopted as follows:
SECTION 1. The City is committed to providing competitive compensation as part of an
overall strategy of attracting and retaining highly qualified employees who exemplify our organizational
values.
SECTION 2. The City's compensation philosophy is based on both internal and external
considerations, including internal relationships, the relative labor market, fiscal health, and other
relevant factors as follows:
A. "Internal relationships" refer to the relative value of classifications to one another
as determined by the City. Classifications performing comparable duties, with comparable
responsibilities, requiring a similar level of skill, knowledge, ability, and judgment, will be valued
similarly in the City's compensation structures.
B. In determining the `relative labor market," the City will consider public sector
agencies with several comparable demographic data points including but not limited to population,
median home price, median household income, median age, median education level, services provided,
and unemployment rate. In evaluating market competitiveness with the relevant labor market, the City
will consider total compensation, including but not limited to salary, health, retirement, and time off
benefits.
C. The relative labor market for certain positions will also consider local private
sector employers.
D. The City's fiscal health will guide all compensation practices; thus, the City's
financial condition, competing service priorities, fund reserve levels, and revenue projections will be
considered prior to implementing changes in compensation.
E. Other relevant factors may include unforeseen economic changes, natural
disasters, states of emergency,changes in City services,changes in regulatory or legal requirements, and
community acceptability.
R 9885
ATTACHMENT 2
Resolution No. 9885 (2007 Series)
Page 2
SECTION I At least every five years, the City will evaluate its compensation structure,
programs, and policies to assess market competitiveness, effectiveness, and compliance with State Law.
Adjustments to the compensation stricture may be made as a result of this periodic evaluation and will
be done through the collective bargaining process, if applicable, or other appropriate Council-
management processes.
Upon motion of Council Member Carter, seconded by Council Member Brown, and on the
following vote:
AYES: Council Members Brown, Carter, and Settle, Vice Mayor Settle and Mayor
Romero
NOES: None
ABSENT: None
The foregoing resolution was adopted on March 20,2007.
Mayor David F. Romero
ATTEST:
Audreyx
city ClIk
APPROVED AS TO FORM:
an P.Lowell
City Attorney
ATTACHMENT 3
(D
rn
C13
a
m
m
LwL m cca ' n,A �¢ E
a o o w o o �m
c w n oo amwcEO r m ^
Z•Ec
O m o a c W
4O `o m O
CA am I =
C x
Oc E c$ m
mQL �" 00 K H
0 0 c o o W o 0 o m W � E W c
W O 42 aoc c c c c 2 c c c c c E $ E c
>L m E W A N M
CL N a ¢ Sc�i w
E O n
O .O c W�m c° g c
UCC aam EU E
mr c m Ne
t° E o 0EoE E cE cc m
Uc
E E c m
p
E
CL
N o
�
0 m z � � o �
Y Y N N W >o
W m m W N c
CO i3v3 U
OC � � m
O O
a
O v _ o
♦ P P
N N d r C m N Q In P N Q N N P .°, N N
N 0 EF
O E O
00
G
m �► o in $ �
CL 9 8 8 8 4 m
o `o p� m
.W.. b N 3 m m W m m cm .
O A lO �p O 0 C1 m m O O O m y °.
CD
LL C a N O 0 O O m m O N b9 N O V
•V -a p m Ov tNp N m O m c m O C
O Y m m vi m ai U
V6 m
V f
m o 0 0 0 0o c 00
c
C o a c0 0. 0 0 0 o a
O ,L,,, �p n N N PW N (Wp m N pOp N A E
C m.m W fA W W
�J m G
m O pci O O M N (V
M .0 aD �"U P p (•� Csr�j �(�pp ¢�� tNp m V w M N N Q W W M
CD
c
(Q m O QO m m ^ n fQ•f pN
Q n m 0 M N m N m m Q
E a°
O m _
Lon."
ve oa r rmo �o zoac� mmomomo > o a f mon .
A" CHMERT 3
N
0
cc
d
o
m �
{p
C O N pO O pop O O S O O O
m C $ N pOp N � (U,') N N N N N N N N pON
y E
O 0 U mm
C O m U m m — O L
E c Mm w N E a E m m m op
m e L c E W m m m e o o N E m o p m m O m
m of a c my i, E W cop c c 8cy
C
m U0 NS'a
v o — mm $ a'
ca 3. �.a g m E m E m E c m m E
o 0 o i M E m m `m oc = p
'° '^ tlp mECL
U
0 j L_ t U O p p U ci E m Cm N
N b N W N p
C 7 m O d d d m r 0 m
00
N W S
Ec rnn c m ax d m �N m oe gN
m uL)� N s
cc c �U m o G
U U O N V
�= E � m U m m m m m UNN» U
U E
o $ o g o o n o N E E o o n
�-W E c m m G
0 .2E ww N
ca @G S �q b 0 0 N NNpS� b d Op�1N
W �/ m ® N'l ® W G
mE N ao.$
gm $ a= m*
Q 10
L [N N S N N v fV (N N fV O�N CV N lY
N -
c
cc W of a
L @@ C C C C C C' cv W c P C
`m m o
L N N
m
LL m m o 0
m O1 O N .
w nc�n m o N
c
m w ? m c onE� ^
E E
N m ate= c.� — N
adm wN � ` ro nE E o E m o
O m m G ee E 0 Cl T U.C D v m' G~ Ol
U m m O m W O m N N
N L
n `o
�_ o m m o No in o o u�i rn pp
N W N m O O O
fA N N S y N
� z m
U
r
L' 2 (OV m N O 0 0 O G O O O
p A m
0 � W
V W
cli
� m
m Wm cl W mcl 8 :
C
L.L m m o f W t m o a a m t `m :t `W 0,a t
U U U G U' S U Z U 6.0 f9 W m U m U U tl1_�.U. > U Q 'C pl O U
Cs io
C" ATTACHMENT 4
LEGISLATIVE DRAFT—EXCERPT-COUNCIL POLICIES&PROCEDURES
CHAPTER TWO
COUNCIL COMPENSATION
In recoPnMon of Council's service to the community, a salary is mW&d to
compensate for substantial time deunands. However, this eomneucsation is not intended
to be a sustainim►hwome 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 2986 Series).
2.2 RETIREMENT,MEDICAL DENTAL,VISION AND LIFE INSURANCE
The Mayor and Council Members shall be entitled to city-funded participation in PERS.
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.
23 PROFESSIONAL DEVELOPMENT
Allowances shall be budgeted for the Mayor and each Council Member as follows:
23.1 PROFESSIONAL DEVELOPMENT
For costs of professional development and educational confmaices 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
23.2 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:
L ATTACHMENTS
RESOLUTION NO. (2008 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO SETTING
NEW SALARIES FOR THE MAYOR AND COUNCIL MEMBERS
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, a five-member Council Compensation Committee was appointed and has
met and reviewed Mayor and Council Member compensation in accordance with the procedure
provided by the Charter; and
WHEREAS, the Council Compensation Committee has determined that the purpose of
Council Compensation should be clearly stated in Council Policies and Procedures; and
WHEREAS, the Council Compensation Committee has further determined that the
present criteria for compensation remain valid. However, an adjustment is now appropriate
particularly in light of the significant demands associated with the official duties of the Mayor
and Council Members.
NOW, THEREFORE, BE IT RESOLVED,by the City Council of the City of San Luis
Obispo as follows:
Section 1, Chapter 2 of the Council Policies and Procedures shall be amended to include
the following statement in its introductory paragraph:
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.
Section 2, Chapter 2.1 of the Council Policies and Procedures shall be amended to read as
follows:
Effective the first full payroll period in January 2009, compensation for services
rendered in an official capacity shall be provided as follows: Mayor and
Members of the City Council shall receive a 6% increase resulting in a monthly
salary of$1,272 for the Mayor and$1,060 per month for the Council Members.
On motion of , seconded by , and on the
following roll call vote:
AYES:
Resolution No. (loos series) ATTACHMENT 5
Page 2
NOES:
ABSENT:
The foregoing resolution was adopted this_day of 2008.
Mayor David F. Romero
ATTEST:
Audrey Hooper
City Clerk
APPROVED AS TO FORM:
nat . Lowell
City Attorney
L /3
Page 1 of 1
From: LSchweitzer[I.schweitzer@charter.net] Sent: Sat 5/31/2008 8:08 AM
To: Settle,Allen; Carter,Andrew; Barbara Breska; Mulholland,Christine; Romero, Dave
Cc:
Subject: 6% Raise
Attachments:
FIRECEIVED Yes....you deserve it. Ju9
$720 is a deal for all the time and enerbry you spend. LERK
Linda Schweitzer
SLO
am_RED FILE DD DIRIN DIRMEETING AGENDAtl IRE CHIEF®/�'�' 0 ITEM # LS VV DIROLICE CHFC DIRIL DIR DIR
j� l'o
https://mail.slocity.org/exchan€ :box/6%25%20Raise.EML?Cmd=open 6/2/2008