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Presentation on Item 9 - Council Compensation Committee RecommendationCouncil Compensation Committee Recommendation City Council Meeting February 4, 2020 Recommendation As recommended by the Council Compensation Committee: Adopt a Resolution increasing the monthly compensation for the Mayor from $1,725.00 to $2,508.00 per month and Council Member from $1,224.00 to $1,990.00, effective the first full payroll period in January 2021. Agenda Correspondence The median base wage for regular, full-time employees, excluding the City contribution to health insurance is $81,042. It is estimated that the position of Mayor take home pay would increase from approximately $16,016 annually to $23,397 annually. The net increase is approximately $7,482 annually. Council Compensation Charter Section 410 Mayor and Council shall receive compensation for services Mayor receiving a greater compensation than Council Members Council Compensation Committee formed in even numbered years to review the compensation of Mayor and Council Changes go into effect the first full pay period in the following year. (January 2021) Compensation rate may also be changed by the electorate by initiative. Planning and Architectural Review Commissions’ Compensation Resolution No. 9189 (2001 Series) A review of compensation for Architectural Review Commissioners and Planning Commissioners shall be performed in conjunction with periodic review of Council compensation. Current Compensation Council Mayor -$1,725 monthly = $20,700 annually Council Members -$1,224 monthly = $14,688 annually Benefits: Retirement Health, Dental and Vision Insurance Professional Development allowance Mileage Allowance Other Allowance: home internet / data plan City provided cell phone. Planning and Architectural Review Commissioners $70 per meeting Compensation Committee Formation July 2, 2019 -Council discussed creating a Council Compensation for 2020. August 21, 2019 -Council adopted Resolution amending the Council Policies and Procedures increasing the Council Compensation Committee from five members to seven Appointed: Dan Rivoire, Previously elected official Cal Stevens, Personnel Board representative Kim Bisheff, Garret Otto, Audrey Bigelow, Jenn Stubbs and Ron Yukelson - At-large members Compensation Committee Meetings Committee met four times September 24, 2019, October 29, 2019, December 10, 2019, and January 7, 2020 All meetings were open to the public, agenda, packet and minutes available on the City’s website. First meeting: election Chair/Vice Chair, ABCs of Open Government, Purview of Committee and information provided to prior Committees. (comparison cities, length and # of items on agenda, and surveys of previous Council Members) Compensation Committee Meetings Purpose: To build an effective City Council that is inclusive of all candidates who wish to participate. Objectives: 1.Determine if the City is currently compensating Council Members and Advisory Body members appropriately. 2.Determine if compensation is a factor in achieving inclusivity. 3.Determine if there is a fiscally responsible way to adjust compensation to achieve the goal. Compensation Committee Meetings Committee reviewed: Full Council compensation package including salary, benefits, expense reimbursement, professional development allowances. Compared Council’s compensation package with that of nine comparable cities: •Chico •Davis •Monterey •Napa •Paso Robles •Santa Barbara •Santa Cruz •Santa Maria •Ventura Compensation Committee Meetings Public Outreach Would you consider, or have you considered running for City Council? How could compensation for the position affect your decision to run for City Council? Open from December 16, 2019 to January 6, 2020 72 responses submitted Financial Analysis Review of City finances including Fiscal Health Response Plan Fiscal Year 2020-21 impact: $23,082 Fiscal Year 2021-22 impact: $46,164 Compensation Committee Meetings Purpose: To build an effective City Council that is inclusive of all candidates who wish to participate. Objectives: 1.Determine if the City is currently compensating Council Members and Advisory Body members appropriately. 2.Determine if compensation is a factor in achieving inclusivity. 3.Determine if there is a fiscally responsible way to adjust compensation to achieve the goal. Committee Recommendation for Mayor and Council Members Based on Area Median Income of $47,777 from the 2013- 2018 Census Average number of hours worked as reported by former Council Members 20 hours per week for Council Members 25 hours per week for Mayor Council Member Calculation $47,777 x .50 = $23,888.50 /1040 hours = ~$23 per hour Committee Recommendation for Council Members and Mayor Current Proposed Council Members $1,224/mo. | $14,688/yr.$1,990 mo. | $23,880 yr. Mayor $1,725/mo. | $20,700 yr.$2,508 mo. | $30,096 yr. Total $79,452 annually $125,616 annually No other changes to benefits Planning and Architectural Review Commissioners Compensation Committee reviewed number and length of meetings for 2019. Discussed changes made to process and purview changes which were being implemented. Alternatives The City Council could decide not to adopt the Council Compensation Committee’s recommendation and leave the Mayor and Council Members compensation the same. The Council could decide to adopt an amount different from the Council Compensation Committee’s recommendation. Recommendation As recommended by the Council Compensation Committee: Adopt a Resolution increasing the monthly compensation for the Mayor from $1,725.00 to $2,508.00 per month and Council Member from $1,224.00 to $1,990.00, effective the first full payroll period in January 2021.