STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of July 11, 2023
TO: Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
Patrick Tang, City Attorney
Edwin Gato, Director of Finance
SUBJECT: Council Healthcare Benefits
RECOMMENDED ACTION:
Staff recommends that the City Council:
Receive a report from Staff regarding Council Healthcare Benefits; Ask staff clarifying questions, if any;
Receive comments from the public, if any; and
Provide direction to staff
BACKGROUND:
The City Council consists of five members, elected at-large on a non-partisan basis, who serve staggered four-year terms. They are paid a monthly stipend of $831.60. In addition to such compensation, members of the City Council shall receive their actual and necessary expenses incurred in the discharge of their official duties. Such salary and expense reimbursement shall be paid with the first payroll distribution of each month and shall include salary and expense reimbursement for the immediately preceding month. (Municipal Code, section 2-103 Salary of Council Members) On September 27, 2011, the City Council adopted Resolution No. 11-119, which authorizes Council members not currently enrolled in the CalPERS program to participate in the ICMA deferred compensation plan as a stop-gap measure to provide parity among Council members who were enrolled in the CalPERS program, until such time that the CalPERS enrollees were no longer on the City Council and this benefit could be eliminated. Three Council members received this benefit before its elimination. At the last meeting, the Council approved a Resolution authorizing Council Members not currently enrolled in the ICMA deferred compensation plan to participate in the program to provide parity among Council Members.
On July 11, 2017, the City Council adopted Resolution 17-054 reinstating limited healthcare benefits for members of the City Council to provide healthcare coverage at the Kaiser single level, and with an option for a Councilmember to waive health benefits and waive the opt-out provision of 50%. Currently, there is one Councilmember enrolled in this program. At the last meeting, the Council directed staff to return with information regarding the process for making changes to the healthcare benefits.
DISCUSSION:
The City Council can add, adjust, increase, decrease, or eliminate health care benefits for council members; however, California Government Code Section 36516.5 provides in pertinent part that, “[a] change in compensation does not apply to a council member during the council member's term of office….”.
Since health care benefits are considered "compensation", changes in health care benefits are not permitted during a council member's term of office unless the change is expressly provided for under the terms and conditions of the benefits established by the Council.
Consistent with Gov. Code 36516.5, the State Attorney General in 80 Cal. Ops. Attorney General (AG) 119 (1997), concluded that decreases in salary and health and welfare benefits are not authorized during a seated council member's term.
FISCAL IMPACT:
There is no fiscal impact associated with this action.
ATTACHMENTS:
City Council compensation comparison with surrounding cities Mayor and City Council Monthly Compensation Report
Resolution No.11-119, Amending Resolution 11-094, Rescinding all health and welfare benefits for Members of the City Council, clarifying the termination of State of California Public Employees Retirement System (“CalPERS”) for members of the City Council.
Resolution No.17-054, A resolution of the City Council of the City of Hercules reinstating limited health care benefits for City Council Members, resulting in a not to initially exceed approximately $45,000 in annual costs on forward going basis.