Agenda Item No. 9
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: May 9, 2022
FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Deputy City Manager
SUBJECT: Introduction and First Reading of an Ordinance Amending Chapter 2 (Council Compensation) of Article II (Administration) of the Grover Beach Municipal Code
RECOMMENDATION
Introduce and conduct the first reading, by title only, an Ordinance to amend Chapter 2 of Article II (Administration) of the Grover Beach Municipal Code (GBMC) regarding Council Compensation and schedule the second reading and adoption of the Ordinance at the next regularly scheduled City Council meeting.
BACKGROUND:
At the April 11, 2022 Council meeting, Council Member Miller requested scheduling an agenda item to consider increasing the compensation received by the Council given increases in cost of living. The Council concurred with this request and provided direction to staff to schedule this item for an upcoming meeting. The current compensation of $600 per month for Council Members and $750 per month for the directly-elected Mayor was approved on December 4, 2017 and became effective in December 2018 following the November 2018 election. Previously, Council compensation had not been adjusted since 1986 and was the lowest level among the seven cities in San Luis Obispo County.
At the April 25, 2022 Council meeting, the Council received a report on Council compensation including the relevant legal requirements shown in Attachment 1 along with stipends, insurance benefits and equipment allowances for the other cities in the county. As shown in Attachment 2, the report indicated that Council stipends in Grover Beach are currently on the lower end compared to other cities in the county and that Grover Beach is the only city in the county that does not offer any health insurance benefits to Council Members. The Council directed staff to draft an ordinance to increase Council stipends by the maximum allowable amount of 20% (5% for each of four years since the last increase became effective) and to bring back an agenda item for further deliberation of providing health insurance benefits to the Council.
The attached Ordinance (Attachment 3) amends the Grover Beach Municipal Code (GBMC) to increase Council member stipends by 20% to $720 per month and to increase the Mayor’s stipend by 20% to $900 per month, effective in December 2022 following the November 2022 election.
Staff will return to the Council at an upcoming meeting with an item regarding recommendations for providing health insurance benefits to Council Members.
Staff Report: Introduction and First Reading of an Ordinance Amending Chapter 2 (Council Compensation) of Article II (Administration) of the Grover Beach Municipal Code Page 2 May 9, 2022
FISCAL IMPACT
There is no fiscal impact associated with this item. Adoption of the Ordinance amending the GBMC to increase Council compensation would result in an annual cost increase of $7,560 with a prorated amount of $4,410 for FY 2022-23. This cost increase would be absorbed in the operating budget.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Introduce and conduct the first reading, by title only, the Ordinance to amend Chapter 2 of Article II (Administration) of the Grover Beach Municipal Code (GBMC) regarding Council compensation and schedule the second reading and adoption of the Ordinance at the next regularly scheduled City Council meeting; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Legal References (Grover Beach Municipal Code and Government Code)
2. San Luis Obispo County Council Compensation Comparisons
3. Ordinance Amending Chapter 2 of Article II (Administration) of the Grover Beach Municipal Code to Increase Council Compensation
Compensation for Council Members
Grover Beach Municipal Code Sec. 2201. Compensation of Council Members. Each member of the Council shall receive, as salary, the sum of six hundred dollars ($600) per month and, pursuant to Government Code section 36516.1, as may be amended from time to time, the directly elected Mayor shall receive, as salary, seven hundred and fifty dollars ($750) per month. (Ord. No. 22; Am. Ord. 75-11; Ord. 86-2; Am. Ord. 17-08) Government Code Sec. 36516.
(a) (1) A city council may enact an ordinance providing that each member of the city council shall receive a salary based on the population of the city as set forth in paragraph (2). (2) The salaries approved by ordinance under paragraph (1) shall be as follows:
(A) In cities up to and including 35,000 in population, up to and including three hundred dollars ($300) per month.
(B) In cities over 35,000 up to and including 50,000 in population, up to and including four hundred dollars ($400) per month.
(C) In cities over 50,000 up to and including 75,000 in population, up to and including five hundred dollars ($500) per month.
(D) In cities over 75,000 up to and including 150,000 in population, up to and including six hundred dollars ($600) per month.
(E) In cities over 150,000 up to and including 250,000 in population, up to and including eight hundred dollars ($800) per month.
(F) In cities over 250,000 population, up to and including one thousand dollars ($1,000) per month.
(3) For the purposes of this subdivision, the population of a city shall be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance.
(4) The salary of council members may be increased beyond the amount provided in this subdivision by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not exceed an amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted. No ordinance shall be enacted or amended to provide automatic future increases in salary.
(b) Notwithstanding subdivision (a), at any municipal election, the question of whether city council members shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner.
(c) Unless specifically authorized by another statute, a city council may not enact an ordinance providing for compensation to city council members in excess of that authorized by the procedures described in subdivisions (a) and (b). For the purposes of this section, compensation includes payment for service by a city council member on a commission, Attachment 1
committee, board, authority, or similar body on which the city council member serves. If the other statute that authorizes the compensation does not specify the amount of compensation, the maximum amount shall be one hundred fifty dollars ($150) per month for each commission, committee, board, authority, or similar body.
(d) Any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary under this section, provided that the same benefits are available and paid by the city for its employees. (e) Any amounts paid by a city to reimburse a council member for actual and necessary expenses pursuant to Section 36514.5 shall not be included for purposes of determining salary pursuant to this section.
(f) A city council member may waive any or all of the compensation permitted by this section. (Amended by Stats. 2009, Ch. 332, Sec. 68. Effective January 1, 2010.) Government Code Sec. 36516.1.
A mayor elected pursuant to Sections 34900 to 34904, inclusive, may be provided with compensation in addition to that which he or she receives as a council member. That additional compensation may be provided by an ordinance adopted by the city council or by a majority vote of the electors voting on the proposition at a municipal election.
Government Code Sec. 36516.5.
A change in compensation does not apply to a councilman during his term of office; however, the prohibition herein expressed shall not prevent the adjustment of the compensation of all members of a council serving staggered terms whenever one or more members of such council becomes eligible for a salary increase by virtue of his beginning a new term of office. (Added by Stats. 1966, 1st Ex. Sess., Ch. 12.)
Political Reform Act
Government Code Sec. 87100.
No public official at any level of state or local government shall make, participate in making or in any way attempt to use his official position to influence a governmental decision in which he knows or has reason to know he has a financial interest.
Government Code Sec. 87103.
A public official has a financial interest in a decision within the meaning of Section 87100 if it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its effect on the public generally, on the official, a member of his or her immediate family, or on any of the following:
(a) Any business entity in which the public official has a direct or indirect investment worth two thousand dollars ($2,000) or more.
(b) Any real property in which the public official has a direct or indirect interest worth two thousand dollars ($2,000) or more.
(c) Any source of income, except gifts or loans by a commercial lending institution made in the regular course of business on terms available to the public without regard to official status, aggregating five hundred dollars ($500) or more in value provided or promised to, received by, the public official within 12 months prior to the time when the decision is made.
(d) Any business entity in which the public official is a director, officer, partner, trustee, employee, or holds any position of management.
(e) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating two hundred fifty dollars ($250) or more in value provided to, received by, or promised to the public official within 12 months prior to the time when the decision is made. The amount of the value of gifts specified by this subdivision shall be adjusted biennially by the commission to equal the same amount determined by the commission pursuant to subdivision (f) of Section 89503.
For purposes of this section, indirect investment or interest means any investment or interest owned by the spouse or dependent child of a public official, by an agent on behalf of a public official, or by a business entity or trust in which the official, the official’s agents, spouse, and dependent children own directly, indirectly, or beneficially a 10-percent interest or greater. (Amended by Stats. 2000, Ch. 130, Sec. 7. Effective January 1, 2001. Note: This section was added on June 4, 1974 by Initiative Prop. 9.)
City Council Compensation Comparisons
City Council Stipends
City Council Stipends
City Council Member Mayor
Arroyo Grande $648 $798
Atascadero $600 $750
Grover Beach $600 $750
Morro Bay $1,000* $1,400*
Paso Robles $600 $800
Pismo Beach $772 $1,072
San Luis Obispo $2,139 $2,696
City Council Insurance Benefits
City Council Insurance Benefits
City Medical Dental Vision Life
Arroyo Grande X X X 0
Atascadero X X X X
Grover Beach 0 0 0 0
Morro Bay X X X X
Paso Robles X X X 0
Pismo Beach X X X X
San Luis Obispo X X X X
0 – Not offered
X – Offered
City Council Equipment
City Council Equipment
City Tablet Cell Phone Internet Overall Stipend
Arroyo Grande 0 0 0 0
Atascadero 0 0 0 0
Grover Beach 0 0 0 0
Morro Bay 0 0 0 0
Paso Robles 0 0 0 0
Pismo Beach 0 S S S
San Luis Obispo 0 X S S
0 – no compensation
X – Device provided directly to elected official
S – Stipend or reimbursement provided to elected official Attachment 2
ORDINANCE 22-__
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER
BEACH, CALIFORNIA AMENDING CHAPTER 2 (COUNCIL
COMPENSATION) OF ARTICLE II (ADMINISTRATION)
WHEREAS, Grover Beach Municipal Code Section 2201 provides that each Council Member shall receive $600 per month as a salary and the Mayor shall receive $750 per month as a salary; and
WHERAS, members of City Council of the City of Grover Beach (“City”) have not had an increase in salary since December 2018; and
WHEREAS, California Government Code section 36516 provides that the Council Members may increase their salaries by an ordinance in an amount not to exceed 5 percent for each calendar year from the operative date of the last increase; WHEREAS, Council Members are entitled under the Government Code to approved a salary increase consistent with Government Code Section 36516 without constituting a conflict of interest.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Grover Beach as follows:
PART 1: Chapter 2 (Compensation), Section 2201 of Article II (Administration) of the Grover Beach Municipal Code is hereby amended to read as follows:
Sec. 2201. Compensation of Counsel Members. Each member of the Council shall receive, as a salary, the sum of seven hundred twenty dollars ($720) per month and, pursuant to Government Code section 36516.1 , as may be amended from time to time, the directly elected Mayor shall receive, as a salary, nine hundred dollars ($900) per month.
PART 2: Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance or any part thereof is for any reason held to be in violation of the law, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared in violation of the law.
PART 3: Effective Date. This Ordinance shall not become effective and in full force and effect until 12:01 a.m. on the thirty first day after its final passage. However, the increase in compensation shall become effective after the November 2022 General Municipal Election and when any member of Council commences their new term of office, and within fifteen (15) days after adoption by the City Council, the Ordinance shall be published once, together with the names of the Council Members voting thereon, in a newspaper of general circulation within the City.
Attachment 3
Ordinance No. 22-__ Page 2
INTRODUCED at a regular meeting of the City Council held ________ and PASSED, APPROVED, and ADOPTED by the City Council on __________, on the following roll call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
APPROVED:
__________________________
JEFF LEE, MAYOR
Attest:
____________________________________
WENDI SIMS, CITY CLERK
Approved as to Form:
_____________________________________
DAVID P. HALE, CITY ATTORNEY
**DRAFT**