CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: An Ordinance of the City Council of the City of Commerce, California, Revising Section 2.20.010 of Chapter 2 (“Compensation”) of the Municipal Code with respect to Compensation of Councilmembers; Resolution Providing for Fringe Benefits and Compensation for City Council Meeting Date: July 18, 2023
RECOMMENDATION:
City Council approval of (1) First Reading of an Ordinance of the City Council of the City of Commerce, California, Revising Section 2.20.010 of Chapter 2 (“Compensation”) of the Municipal Code with respect to Compensation of Councilmembers, and waive full reading, read by title only (2) Resolution providing for Fringe Benefits and Related Compensation for City Council.
ANALYSIS:
California Government Code Sections 36516 and 36516.5 allows the City Council to adopt an ordinance authorizing compensation for city councilmembers subject to certain limitations. The City of Commerce Municipal Code provides that salaries for councilmembers shall be established by ordinance and if salaries were to be increased for councilmembers, it would be necessary to adopt an ordinance prior to the commencement of the next councilmember term which would be in November, 2024.
Government Code section 36516 sets the maximum salary for a city with a population of up to 35,000 (City of Commerce is approximately 13,000 residents) at $300 per month with allowable increases of up to 5% for each calendar year from the operative date of the last salary adjustment. (Govt. Code § 36516.5 (a) and (c).) The City Council last adjusted its salary in 2015 establishing its salary at $1,434.44 per month. The City Council’s salary amount has not been increased since 2015. Pursuant to Government Code Section 36516(a)(4) the Council is authorized to increase its salary up to $2,008,21 per month (5% x 8 years x $1,434.44 = $2,008.21) or City Council can adjust it to any amount under that figure. If the maximum figure was authorized it would represent an increase of a maximum of up to $573.77 per month per Councilmember.
In addition, Councilmembers may be reimbursed for actual and necessary expenses incurred in the performance of their official duty, upon the submission of an itemized account. There are also other fringe benefits for City Council Members that are already in effect as described in the attached resolution. On January 17, 2017, the City Council approved Resolution No. 17-10 related to fringe benefits and compensation for City Council Members.
Staff is recommending that the City Council authorize an expanded benefit in accordance with the executive benefits passed by the City Council previously on September 17, 2019. The additional benefit is concerning providing the option for comprehensive physical medical examinations for up to one dependent such as a spouse or legal domestic partner of City Council Members through Scripps Center for Executive Health per fiscal year. The City shall pay the cost of the “Whole Person Examination” and shall cover the cost of lodging for one night.
For City Council's reference, attached is information regarding the compensation of City Councils in the surrounding area, as well as for Councils with comparable evening resident population in similar sized cities. The unique situation of the City of Commerce should be taken into account in determining Council compensation. Commerce is comparable to cities with larger populations and significant service responsibilities considering its operation as an industrial city with a substantial workforce population, its consumer draw as a commercial destination and its complex transportation and environmental challenges.
FISCAL IMPACT:
Should the City Council approve the maximum increase allowed by Government Code Section 36516.5, the General fund budget will need to be adjusted by approximately $28,688.80 for 2022-2024 (with implementation date for increase being on or around September 1, 2023). Should the City Council also approve the modification to the Fringe Benefits Resolution an appropriation of approximately $10,000 will be made for this expense.
Respectfully submitted by: Edgar P. Cisneros, City Manager Prepared by: Edgar P. Cisneros, City Manger
Reviewed by: Noel Tapia, City Attorney
Attachments:
Proposed Ordinance revising Section 2.20.010 of Chapter 2 (“Compensation”) of the Municipal Code with respect to compensation of Councilmembers Fringe Benefits Resolution
Councilmember Compensation Comparison
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