CITY COUNCIL
ERRATA SHEET
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CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: Sandra Kandell, City Clerk/DEI Coordinator
MEETING DATE: 05/07/2025
SUBJECT: City Council Meeting Agenda- Errata Sheet
Attached is additional information for your consideration at the May 7, 2025 City Council Meeting:
Agenda Item Information Provided/Corrected
11A Revised Proposed Ordinance. (See attached red-lined and clean versions.) Attachments
Proposed Ordinance - Redlined Version
Proposed Ordinance - Clean Version
REDLINE ORDINANCE NO. 25-_____
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE
INCREASING THE COMPENSATION OF THE MAYOR AND CITY
COUNCILMEMBERS AND PROVIDING MEDICAL BENEFITS AVAILABLE TO CITY MANAGEMENT EMPLOYEES.
FINDINGS
WHEREAS, Article 11 of the Charter of the City of Pacific Grove provides that the Mayor may receive compensation as provided by ordinance, but in no case shall the compensation exceed that amount which is permitted by State Law for General Law cities of comparable size to Pacific Grove; and
WHEREAS, Article 12 of the Charter of the City of Pacific Grove provides Councilmembers may receive compensation as provided by ordinance, but in no case shall the compensation exceed that amount which is permitted by the State Law for General Law cities of comparable size to Pacific Grove.
WHEREAS, by Ordinance No. 1682 N.S., passed and adopted by council on July 19, 1989, compensation for Pacific Grove Councilmembers was set at $300.00/month and compensation for the Pacific Grove Mayor was set at $500.00; and WHEREAS, the most recent increase in salaries for the Mayor and City Councilmembers was by Ordinance No. 98-24 adopted on August 19, 1998 (effective December 1, 1998), 26 years ago as of December 1,2024, which increased the compensation of the Mayor from $500 a month to $700 a month and increased the compensation of City Councilmembers from $300 a month to $420 a month; and
WHEREAS, on June 29, 2023, Senate Bill No. 329 was adopted by the California State Legislature and approved by the Governor pertaining to the compensation of City Councilmembers and became effective on January 1, 2024; and WHEREAS, the findings in SB 329 regarding the permitted compensation increases for the Councilmembers included the following:
SECTION 1. The Legislature finds and declares all of the following:
(a) The compensation schedule for general law cities has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation. (b)Allowing cities to adjust their compensation for inflation since 1984 may help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families.
WHEREAS, the changes made by SB 329 to Government Code Section 36516 included the following permitted compensation increases for City Councilmembers:
1. For cities with a population of 35,000 or less, the compensation permitted increased from $300 dollars to $950 dollars.
2. In the alternative, the compensation of City Councilmember could be increased by the greater amount of:
(A) An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the compensation in effect when the ordinance or amendment is enacted.
(B) An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year.
WHEREAS, the California Consumer Price Index increased from December 1998 to December 2024 by 107.9 percent; and
WHEREAS, the cost of living in the City of Pacific Grove is 19% higher than the California state average, due in large part to the cost of housing; and WHEREAS, Government Code Section 36516(f) states: “A city council member may waive any or all of the compensation permitted by this section.”; and WHEREAS, City Ordinance No. 1872 was adopted on December 16, 1992 which allowed for the mayor and council members to decline all of their compensation, but may not decline the compensation in part or accept in part; and WHEREAS, Government Code Section 36516.5 provides for general law cities that an increase in compensation shall be become effective whenever one 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 which would be in December 2026; and
WHEREAS, the California Attorney General has determined in 57 Ops. Cal. Atty. Gen 11 that where a city charter provides that members of the city council shall receive salary in such amount as the city council may approve by ordinance that the increase may become effective at a time different from that provided in Government Code Section 36516.5; and WHEREAS, there are no provisions in the Government Code which specify the amount of the additional compensation which may be received by an elected mayor, but since the Pacific Grove Mayor also serves as a member of the City Council, the percentage for compensation increases specified in Government Code Section 36516 as described above can be applied for the Mayor’s compensation; and
WHEREAS, applying the 5% per year formula of Government Code Section 36516, there would be a compensation increase for City Councilmembers from the current $420 a month to $966 a month using 5% annual increase for the 26 year period from December 1998 (the last compensation increase) through December 2024 which is 26 years. 5% of $420 is $21 multiplied by 26 years is a $546 increase. $420 plus $546 equals $966; and WHEREAS, applying the 5% per year formula of Government Code Section 36516, there would be a compensation increase for the Mayor from the current $700 a month to $1610 a month using 5% annual increase for the 26 year period from December 1998 (the last compensation increase) through December 2024 which is 26 years. 5% of $700 is $35 multiplied by 26 years is a $910 increase. $700 plus $910 equals $1610; and WHEREAS, the City does not currently pay for any medical benefits for the Mayor or City Councilmembers; and
WHEREAS, Government Code Section 53208.5 (b) provides that a City may provide medical benefits for the Mayor and City Councilmembers not greater than the most generous schedule of medical benefits being received by any category of nonsafety employees; and WHEREAS, the most generous schedule of medical benefits received by City nonsafety employees is set forth in Memorandum of Understanding Management Employees Association July 1, 2023 to June 30, 2026; and
WHEREAS, this City Council desires to increase City Councilmember compensation for the reasons stated in the Findings by the Legislature for adoption of SB 329 as recited above by the allowable five percent per calendar year, and, further, to increase the Mayor's compensation by using the same formula and to provide the Mayor and Councilmembers with the option to obtain medical coverage as described in the Memorandum of Understanding Management Employees Association July 1, 2023 to June 30, 2026;
NOW, THEREFORE, THE COUNCIL OF THE CITY OF PACIFIC GROVE DOES ORDAIN AS FOLLOWS:
SECTION 1. Findings. The foregoing Findings are hereby incorporated by reference in full.
SECTION 2, 1. Effective Date. This Ordinance shall become effective 30 days after the second reading of this Ordinance (“Effective Date”).
SECTION 3. Repeal of Ordinance No 1872 N.S. Ordinance No. 1872 N.S. is hereby repealed in its entirety.
SECTION 4 2. Compensation of Councilmembers and Mayor. As of the Effective Date of this Ordinance, the compensation for City Councilmembers and the Mayor shall be as follows:
Council Members ..........................................$966 per month Mayor.............................................................$1610 per month SECTION 5. Waiver of Compensation. The Mayor and/or individual Councilmembers may waive any or all of the compensation permitted by this Ordinance.
SECTION 63. Medical Benefits. The Mayor and City Councilmembers are entitled to receive, at their choice, the Medical Benefits as described in the Memorandum of Understanding for the Management Employees Association, as it may be amended from time to time, or, in the alternative, the Health Insurance Benefits referenced in City Council Policy 000-11, as it may be amended from time to time, but in no event will the Medical Benefits for the Mayor and City Councilmembers exceed the most generous schedule of medical benefits being received by any category of nonsafety employees.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this ____ day of _____________, by the following vote:
AYES:
NOES:
ABSENT:
APPROVED:
NICK SMITH, Mayor
ATTEST:
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
BRIAN A. PIERIK, City Attorney
CLEAN VERSION ORDINANCE NO. 25-_____
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE
INCREASING THE COMPENSATION OF THE MAYOR AND CITY
COUNCILMEMBERS AND PROVIDING MEDICAL BENEFITS AVAILABLE TO CITY MANAGEMENT EMPLOYEES.
FINDINGS
WHEREAS, Article 11 of the Charter of the City of Pacific Grove provides that the Mayor may receive compensation as provided by ordinance, but in no case shall the compensation exceed that amount which is permitted by State Law for General Law cities of comparable size to Pacific Grove; and
WHEREAS, Article 12 of the Charter of the City of Pacific Grove provides Councilmembers may receive compensation as provided by ordinance, but in no case shall the compensation exceed that amount which is permitted by the State Law for General Law cities of comparable size to Pacific Grove.
WHEREAS, by Ordinance No. 1682 N.S., passed and adopted by council on July 19, 1989, compensation for Pacific Grove Councilmembers was set at $300.00/month and compensation for the Pacific Grove Mayor was set at $500.00; and WHEREAS, the most recent increase in salaries for the Mayor and City Councilmembers was by Ordinance No. 98-24 adopted on August 19, 1998 (effective December 1, 1998), 26 years ago as of December 1,2024, which increased the compensation of the Mayor from $500 a month to $700 a month and increased the compensation of City Councilmembers from $300 a month to $420 a month; and
WHEREAS, on June 29, 2023, Senate Bill No. 329 was adopted by the California State Legislature and approved by the Governor pertaining to the compensation of City Councilmembers and became effective on January 1, 2024; and WHEREAS, the findings in SB 329 regarding the permitted compensation increases for the Councilmembers included the following:
SECTION 1. The Legislature finds and declares all of the following:
(a) The compensation schedule for general law cities has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation. (b)Allowing cities to adjust their compensation for inflation since 1984 may help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families.
WHEREAS, the changes made by SB 329 to Government Code Section 36516 included the following permitted compensation increases for City Councilmembers:
1. For cities with a population of 35,000 or less, the compensation permitted increased from $300 dollars to $950 dollars.
2. In the alternative, the compensation of City Councilmember could be increased by the greater amount of:
(A) An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the compensation in effect when the ordinance or amendment is enacted.
(B) An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year.
WHEREAS, the California Consumer Price Index increased from December 1998 to December 2024 by 107.9 percent; and
WHEREAS, the cost of living in the City of Pacific Grove is 19% higher than the California state average, due in large part to the cost of housing; and WHEREAS, Government Code Section 36516(f) states: “A city council member may waive any or all of the compensation permitted by this section.”; and WHEREAS, City Ordinance No. 1872 was adopted on December 16, 1992 which allowed for the mayor and council members to decline all of their compensation, but may not decline the compensation in part or accept in part; and WHEREAS, Government Code Section 36516.5 provides for general law cities that an increase in compensation shall be become effective whenever one 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 which would be in December 2026; and
WHEREAS, the California Attorney General has determined in 57 Ops. Cal. Atty. Gen 11 that where a city charter provides that members of the city council shall receive salary in such amount as the city council may approve by ordinance that the increase may become effective at a time different from that provided in Government Code Section 36516.5; and WHEREAS, there are no provisions in the Government Code which specify the amount of the additional compensation which may be received by an elected mayor, but since the Pacific Grove Mayor also serves as a member of the City Council, the percentage for compensation increases specified in Government Code Section 36516 as described above can be applied for the Mayor’s compensation; and
WHEREAS, applying the 5% per year formula of Government Code Section 36516, there would be a compensation increase for City Councilmembers from the current $420 a month to $966 a month using 5% annual increase for the 26 year period from December 1998 (the last compensation increase) through December 2024 which is 26 years. 5% of $420 is $21 multiplied by 26 years is a $546 increase. $420 plus $546 equals $966; and WHEREAS, applying the 5% per year formula of Government Code Section 36516, there would be a compensation increase for the Mayor from the current $700 a month to $1610 a month using 5% annual increase for the 26 year period from December 1998 (the last compensation increase) through December 2024 which is 26 years. 5% of $700 is $35 multiplied by 26 years is a $910 increase. $700 plus $910 equals $1610; and WHEREAS, the City does not currently pay for any medical benefits for the Mayor or City Councilmembers; and
WHEREAS, Government Code Section 53208.5 (b) provides that a City may provide medical benefits for the Mayor and City Councilmembers not greater than the most generous schedule of medical benefits being received by any category of nonsafety employees; and WHEREAS, the most generous schedule of medical benefits received by City nonsafety employees is set forth in Memorandum of Understanding Management Employees Association July 1, 2023 to June 30, 2026; and
WHEREAS, this City Council desires to increase City Councilmember compensation for the reasons stated in the Findings by the Legislature for adoption of SB 329 as recited above by the allowable five percent per calendar year, and, further, to increase the Mayor's compensation by using the same formula and to provide the Mayor and Councilmembers with the option to obtain medical coverage as described in the Memorandum of Understanding Management Employees Association July 1, 2023 to June 30, 2026;
NOW, THEREFORE, THE COUNCIL OF THE CITY OF PACIFIC GROVE DOES ORDAIN AS FOLLOWS:
SECTION 1. Findings. The foregoing Findings are hereby incorporated by reference in full.
SECTION 2. Effective Date. This Ordinance shall become effective 30 days after the second reading of this Ordinance (“Effective Date”).
SECTION 3. Repeal of Ordinance No. 1872 N.S. Ordinance No. 1872 N.S. is hereby repealed in its entirety.
SECTION 4 Compensation of Councilmembers and Mayor. As of the Effective Date of this Ordinance, the compensation for City Councilmembers and the Mayor shall be as follows:
Council Members ..........................................$966 per month Mayor.............................................................$1610 per month SECTION 5. Waiver of Compensation. The Mayor and/or individual Councilmembers may waive any or all of the compensation permitted by this Ordinance.
SECTION 6. Medical Benefits. The Mayor and City Councilmembers are entitled to receive, at their choice, the Medical Benefits as described in the Memorandum of Understanding for the Management Employees Association, as it may be amended from time to time, or, in the alternative, the Health Insurance Benefits referenced in City Council Policy 000-11, as it may be amended from time to time, but in no event will the Medical Benefits for the Mayor and City Councilmembers exceed the most generous schedule of medical benefits being received by any category of nonsafety employees.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this ____ day of _____________, by the following vote:
AYES:
NOES:
ABSENT:
APPROVED:
NICK SMITH, Mayor
ATTEST:
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
BRIAN A. PIERIK, City Attorney