HomeMy WebLinkAbout04/04/2000, 7 - COUNCIL COMPENSATION council 4=04-00
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CITY OF SAN LUIS O B I S P O
FROM; Council Compensation Committee
Prepared By: Lee Price,City Cler
SUBJECT: COUNCIL COMPENSATION
CAO RECOMMENDATION
1. Adopt a Resolution Setting New Salaries for the Mayor and Council Members.
2. Appropriate $3,000 for Fiscal Year 2000-01 from the unreserved General Fund balance in
order to fund the compensation change.
DISCUSSION
Backgro�md
The City of San Luis Obispo's Charter (Section 410) requires that a Council Compensation
Committee be formed during even numbered years to review Mayor and Council Members'
compensation and recommend any adjustments, if appropriate, for the following two-year period.
The Committee is required to bring back its recommendation(s)in resolution form to the Council
no later than May 1'.
On January 18'the Council appointed the following five members to the Council Compensation
Committee: Dean Miller, Kathy Smith, Marcy Villa, Dodie Williams and Pierre Rademaker,
who served as Chair. The Committee met twice and reviewed the full Council 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 the mayors and council members in nine other California
cities (charter and general law), and examined the responsibilities of the Mayor and Council
Members in San Luis Obispo. Also considered was a request by a Council Member to look at
adding a cash back payment provision in lieu of unused benefits, similar to what is offered for
City employees.
Committee Recommendations:
Based on a thorough analysis and discussion, the Council Compensation Committee makes the
following recommendations:
1. The compensation package for expense allowances, benefits and professional development is
adequate and should remain unchanged.
2. The monthly salaries of the Mayor and Council Members should be increased by $100 per
month. This conclusion represents agreement that while salaries for elected officials
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Council Agenda Report—Report Title
Page 2
generally do not reflect the true value of the position, in San Luis Obispo the Mayor and
Council are indeed hard-working, dedicated individuals worthy of recognition for their
service to the community.
3. After evaluating the practice in other cities and debating the matter of cash back in lieu of
unused benefits, the Committee agreed that elected officials are not considered `employees',
but viewed, rather, more like volunteers. The Committee, therefore, makes no
recommendation to add a cash back provision.
FISCAL EMPACT
The increase to salaries will increase the Council annual budget for Fiscal Year 00-01 by $3,000.
ATTACIDIIENTS
Resolution Setting Salaries
Minutes of the Council Compensation Committee
City Council Compensation Survey
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RESOLUTION NO. (2000 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 procedures for a biannual 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 present
criteria for compensation remain valid,however the current monthly salary has remained
unadjusted since 1989, and that 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 Council of the City of San Luis
Obispo as follows:
SECTION 1. BASIC COMPENSATION
Section 2.1 of the Council Policies and Procedures shall be amended to read as follows:
Effective January 1, 2001, compensation for services rendered in an official
capacity shall be provided as follows: Members of the City Council shall receive
$900 per month; and the Mayor shall receive a monthly salary of$1,100.
Upon motion of , seconded by ,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 4'"day of April, 2000.
Mayor Allen Settle
ATTEST:
Lee Price, City Clerk
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Resolution No. __ __ _—__ (199i Series)
Page 2
APPROVED AS TO FOR-M.-
perlslgEC Attomey
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MINUTES
COUNCIL COMPENSATION COMNUTTEE
THURSDAY,FEBRUARY 9, 2000, 10:30 A.M.
COUNCIL HEARING ROOM
990 PALM STREET, SAN LUIS OBISPO
I. CALL TO ORDER: City Clerk Price called the meeting to order at 10:40 a.m.
Il. PRESENT:
Members: Pierre Rademaker, Dodie Williams, Marcy Villa, Kathy
Smith, Dean Miller
Staff: City Clerk Lee Price, Human Resources Director Ann
Slate, City Clerk Secretary Diane Reynolds
III. OATH OF OFFICE:
City Clerk Price administered the Oath of Office to Committee members.
IV. ELECT CHAIR:
Moved by Dean Miller, seconded by Kathy Smith,to appoint Pierre Rademaker as chair
of the Council Compensation Committee; unanimously approved.
V. COUNCIL COMPENSATION:
The Committee received various handouts pertaining to the 1998 Council Compensation
Committee recommendations. Chair Rademaker suggested defining the key points of
discussion. After discussion, those points were defined as:
• Salary
• Retirement and Health Benefits
• Professional Development
• Mileage Reimbursement
The Committee reviewed the 1998 Council Salary Comparison Study. HR Director Slate
submitted Government Code Section 36516,which sets compensation for council
members in General Law cities. She explained the difference between General Law and
Charter city council compensation requirements. She added that structural changes in the
municipality also affect the responsibilities of council members, and that this has been a
point of consideration for the committee in the past;however,no changes have taken
place recently.
Chair Rademaker inquired why Council compensation is reviewed-in an election year.
HR Director Slate stated that the Charter sets the time for review and that the current
Council is actually approving the compensation for the next elected Council. Committee
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Minutes - Council Compensation Committee .2
Thursday,February 10, 2000— 10:30 a.m.
Member Smith remarked that the review during an election year does affect how the
current Council votes on the issue.
Committee Member Villa stated that the City Council is well compensated,
comparatively speaking.
Committee Member Miller referred to Council Member Jan Howell Marx's memo
requesting cash back in lieu of unexpended benefits. Discussion ensued. Committee
Members Williams and Miller expressed their belief that Council Members are public
servants and, thus, more akin to volunteers than to City employees.
The Committee discussed the following points and made information requests:
• Number of hours Council Members spend attending meetings, including
subcommittee assignments
• Update Council Salary Comparison Study:
o Report annual budget amounts, including Capital Improvement Plans
o Round off dollar amounts
o Eliminate comparison to Palm Springs and Camarillo
o Add comparative information for Chico
o Indicate reason for discrepancies between city annual budgets and council
member salaries (for example: RDA; no public safety, etc.)
o Make special inquiry about whether council members receive cash back in
lieu of an unexpended benefits allowance
• Bring back for Committee review actual expenditures made by the current
Council Members for fiscal years 98-99 and 99-present
• Determine net cost to the City on an annual basis if Council Member benefits are
not expended and the difference is paid back in cash.
The Committee established the following dates:
• Recommendation to the City Council: April 18th
• Next meeting: March 1st, at 2:00 p.m.
VI. PUBLIC COMMENT:
There were no speakers.
VII. ADJOURNMENT:
Chair Rademaker adjourned the meeting at 11:40 a.m.to Wednesday,March 1, 2000 at
2:00 p.m. in the Planning Conference Room.
dr
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MINUTES
COUNCIL COMPENSATION COMMITTEE
WEDNESDAY, MARCH 1,2000, 2:00 P.M.
PLANNING CONFERENCE ROOM
990 PALM STREET, SAN LUIS OBISPO
1. CALL TO ORDER: City Clerk Price called the meeting to order at 2:10 p.m.
II. PRESENT:
Members: Pierre Rademaker, Dodie Williams,Marcy Villa, Kathy
Smith,Dean Miller
Staff: City Clerk Lee Price,Human Resources Director Ann
Slate, City Clerk Secretary Diane Reynolds
II. MINUTES
Dodie Williams moved, and Kathy Smith seconded, to approve the Council
Compensation Committee minutes of Thursday,February 9, 2000; unanimously
approved.
III. COUNCIL COMPENSATION:
REVIEW UPDATED COMPENSATION SURVEY AND COUNCIL EXPENDITURES
FOR FY 98-99 &99-00
The Committee reviewed the survey and Council expenditures. They discussed which
Council Members currently use City benefits. It was determined that Council Members
Marx,Ewan and Romero take advantage of the retirement benefit, and Romero uses the
health benefit as well. Both Smith and Williams stated that they used the City benefit
package when they served on the Council.
The Committee discussed whether a council member could apply unused benefits to the
retirement plan. Slate stated that retirement plan was a set formula and could not be
altered. After discussion, there was agreement that the committee would not recommend
cash back in lieu of unused benefits.
The Committee debated the issue of a salary increase for.Council. Williams stated that
she felt that Council Members were well compensated when compared to the various
cities of the survey, and she did not recommend an increase in salary. Smith stated that
she felt that.compensation should reflect the council members' `value"to the City and the
organization, and she recommended the previously offered$200 increase in salary.
Miller agreed, stating that he felt it would be a symbolic gesture of"value." Rademaker
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Minutes-Council Compensation Committee 2
Thursday,February 10, 2000— 10:30 am.
and Villa stated they felt neutral on the issue of an increase. Villa stated that the Council
is fairly compensated and recommended an increase of$100. Discussion ensued.
Moved by Marcy Villa, seconded by Dodie Williams,to increase the Mayor and Council
Members salary by$100; motion carried 4-1 (Smith).
After discussion there was general consensus that the compensation package for Expense
Allowances,Benefits, and Professional Development should remain the same.
The Committee directed City Clerk Price to prepare the resolution and staff report based
on the Committee's recommendations. City Clerk Price will fax these documents to
Committee members for their review. She will determine if another meeting is necessary
before the recommendations are presented to the City Council.
IV. PUBLIC CONEY=:
There were no speakers.
V. ADJOURNMENT:
Chair Rademaker adjourned the meeting at 2:40 p.m.
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