1 TO: City Council
FROM: Trevor Rusin, City Attorney, and Ryan Smoot, City Manager MEETING DATE: April 18, 2023
SUBJECT: Discussion and Consideration of Ordinance No. 849, an Ordinance of the City Council of the City of Lomita, California Amending Title 2, Chapter 4, Section 2-4.01 of the Lomita Municipal Code Pertaining to City Council Member Compensation; and Finding the Action Exempt from the California Environmental Quality Act
RECOMMENDATION
1) After the City Attorney reads the title, introduce on first reading Ordinance No. 849 amending Title 2, Chapter 4, Section 2-4.01 of the Lomita Municipal Code pertaining to City Council member compensation;
2) Find the action exempt from CEQA; and
3) Direct staff to schedule second reading and adoption of Ordinance No. 849 for the May 2, 2023, Regular City Council Meeting.
ANALYSIS AND OPTIONS
In general Law cities such as Lomita, the salaries of members of the City Council are limited by Government Code Section 36516 (a)(2)(A) at no more than $300/month; however, Section 36516 (a)(4) explains that the salary of council members may be increased beyond the amount provided in (a)(2)(A) 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.
In addition to this, pursuant to California Government Code section 36516.5, any change to the compensation of a member of the City Council effective may only become effective after the next election. Government Code section 36516.5 states:
“A change in compensation does not apply to a council member during the council member’s term of office. This prohibition shall not prevent the adjustment of the compensation of all members of a council serving staggered terms whenever one Item No. PH 9b
CITY OF LOMITA
CITY COUNCIL REPORT
2 or more members of the city council becomes eligible for a salary increase by virtue of the council member beginning a new term of office.” Currently, Council Members compensation is set by LMC Article II, Chapter 4, section 2-4.01. The Salary of members of the City Council is currently set at $390.00 monthly, and has been so since it was last adjusted in 1991 – more than 30 years ago.
During its March 18, 2023 public hearing related to the potential for members of the City Council to be elected by district, the City Council discussed recent difficulties in recruiting members of the community to serve on the City’s boards and commissions, as well as the difficulties and expenses associated with running for and serving on the City Council.
There was consensus among the Council Members that these expenses could be a deterrent to potential candidates, and prevent members of the community from seeking election, and the Council directed staff to bring back for discussion and consideration an ordinance amending the municipal code to adjust the salaries of future members of the City Council.
Since it was set in 1991, the salaries of members of the City Council have remained unchanged at $390.00 monthly. In that same time, the average rate of inflation has increased approximately 2.5% annually. If the salaries of members of the City Council were to be adjusted equivalently, they would currently be approximately $860.001 monthly. It should also be noted that in many agencies, members of the City Council are eligible for paid medical and other benefits, and often are provided a car allowance in lieu of mileage reimbursement. Although the Lomita City Council may elect to participate in the City’s medical and dental programs, the costs of that participation (with the exception of the PEMCHA minimum amount) are to be born entirely by the individual member.
In 2022, the City completed a Classification and Compensation study for its employees.
Although members of the City Council were not included in the comparison during that study, using the same comparator agencies, the median salary of members of the City Council was found to be $647.00/month, not including benefits of any kind.
The proposed ordinance, if adopted, would amend LMC Section 2-4.01 to adjust the salary from $390.00 (set in 1991) to $660 per month. This amount reflects the same planned adjustments recently provided to the City’s employees (95% median of comparator agencies plus approved COLAs).
1 This is below the maximum legal increase allowed under Government Code section 36516 (c) which limits increase to an amount not to 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. Pursuant to an Attorney General opinion, the increase may not be compounded – it is one calculation based on the total number of years, not five percent (5%) applied to the first year and then another five percent (5%) applied to that number. (See Gov.
Code, § 36516(a)(4)); 89 Ops.Cal.Atty.Gen. 159 (2006).) Thus, since the City Council’s salary is $390 per month and there has been no increase in 32 years, an ordinance could be adopted setting the salary at up to $1,014 per month. ($390 + ($390 x (32 x 5%) = $1,014)
3 Mileage Reimbursement
The City Council as a whole attend a number of out-of-area meetings on a monthly basis and currently many of them do not submit for mileage reimbursement even though they are eligible to do so. The proposed ordinance amendment would also provide an automobile allowance of $200 per month. This would have the added benefit of reducing future administrative costs and burdens on both the City Councilmembers themselves as well as the City’s staff in processing such requests.
FISCAL IMPACT
Annual additional fiscal impact going forward would be $16,200 per year which can be absorbed within the City Manager’s Department budget.
ATTACHMENTS
1. Ordinance No. 849
Prepared by: Approved by:
Gary Y. Sugano Ryan Smoot
Assistant City Manager City Manager
ORDINANCE NO. 849
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOMITA, CALIFORNIA, AMENDING TITLE 2, CHAPTER 4, SECTION 2-4.01 OF
THE LOMITA MUNICIPAL CODE PERTAINING TO COUNCIL MEMBER
COMPENSATION AND FINDING THE ACTION EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
THE CITY COUNCIL OF THE CITY OF LOMITA DOES FIND AND ORDAIN AS FOLLOWS:
SECTION 1. RECITALS
1. The purpose of this ordinance is to update Lomita Municipal Code relating to City Councilmembers compensation.
2. The last adjustment to the City Council monthly salary was over thirty years ago in 1991.
3. The City is in the process of contemplating moving from conducting at-large Council elections to by-district Council elections which would reduce the number of eligible candidates. The proposed modest compensation increase is intended to provide additional incentive for future candidates to file for office.
4. Currently, Councilmembers may submit monthly reimbursement requests for mileage for city-related activities which are processed by the Administrative Services Department.
SECTION 2. MUNICIPAL CODE AMENDMENTS.
Title II, Chapter 4, Section 2-4.01 of the Lomita Municipal Code is hereby amended to read as follows:
Sec. 2-4.01. - Councilmembers compensation and other benefits.
Upon the submission of an itemized account, any Councilmember may be reimbursed for his or her actual and necessary expenses incurred in the performance of official duty. The salary of the mayor and each member of the City Council shall be, and the same is hereby determined fixed and established at the sum of six hundred sixty dollars ($660.00) per month pursuant to the provisions of the section 36516 of the Government Code of the State of California. In lieu of any mileage or automobile reimbursement, an auto allowance for the mayor and each member of the City Council is hereby determined fixed and established at the sum of two hundred dollars ($200) per month.
City councilmembers shall be eligible for health and welfare benefits, as such term is defined in Section 53200 of the California Government Code, during their term of office, subject to (1) the terms of any plan of health and welfare benefits adopted by the City, (2) state laws imposing limits on health and welfare benefits for elected officials, and (3) any further rules and regulations adopted by City Council resolution.
Attachment 1
Ordinance No. 849
SECTION 3. CEQA
This Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to 14 California Code of Regulations section 15061(b)(3), since it can be seen with certainty that there is no possibility that this Ordinance would have a significant effect on the environment.
SECTION 4. CERTIFICATION
The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published or posted in the manner required by law. This Ordinance shall not apply to currently serving councilmembers, unless and until they begin a new term in office, in compliance with Government code section 36516.5.
PASSED, APPROVED AND ADOPTED this ____ day of ____, 2023. ________________________________
Barry Waite, Mayor
ATTEST:
______________________________
Kathleen Horn Gregory, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Trevor Rusin, City Attorney