PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.B
SUBJECT/TITLE:
INTRODUCTION (FIRST READING) OF ORDINANCE AMENDING COUNCIL
MEMBER COMPENSATION
RECOMMENDATION:
Introduce an Ordinance amending Chapter 2.04, Section 2.04.020: Salaries Designated, of the City of Pismo Beach Municipal Code, relating to Council Member and Mayor compensation.
BACKGROUND:
On June 21, 2022 the City Council received a report from staff on current Council Member and Mayor compensation (salary) and expense reimbursement practices, including options for a potential salary increase. At that time, a majority of the City Council directed staff to prepare an ordinance that would enact a 20% increase to the City Council’s compensation. The June 21, 2022, staff report is available in the Access Pismo public records portal at www.pismobeach.org/accesspismo 1, or by scanning the QR Code at right.
Available Council Compensation Increase Amounts
In summary, state law allows for a 5%-per-year increase from the last Council Member compensation increase, which occurred in 2018, and as such, a 20% increase is the maximum currently allowable. Further detail is provided in the June 21, 2022 staff report.
Table 1 and Table 2 show current Council compensation for other cities in San Luis Obispo County, and potential Pismo Beach salary increase amounts, respectively.
Table 1. Current Council and Mayor Salaries in Nearby Cities City Council
Salary (a)
Add'l Mayor
Salary (b)
Mayor Salary
(total) (a+b=c)
Atascadero $600.00 $150.00 $750.00
Paso Robles $600.00 $200.00 $800.00
Arroyo Grande $648.00 $150.00 $798.00
Grover Beach 2 $720.00 $180.00 $900.00
Pismo Beach $772.20 $300.00 $1,072.20
Morro Bay 3 $1,000.00 $400.00 $1,400.00
San Luis Obispo 4 $1,990.00 $518.00 $2,508.00
1 Full URL: https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=431003&dbid=0&repo=Laserfiche 2 If adopted in 2022, Grover Beach compensation of $720 for Council Members and $900 for Mayor would become effective after the 2022 election. Current salary is $600 for Council and $750 for Mayor. 3 Morro Bay compensation of $1,000 for Council Members and $1,400 for Mayor will be effective after the 2022 election. Current salary is $500 for Council and $700 for Mayor. 4 San Luis Obispo is a charter city and thus is not bound by the same salary limitations as general law cities such as Pismo Beach, which may explain the relatively higher salary amount for that city.
Council Agenda 7-19-2022 12.B-1
Table 2. Analysis of Potential Salary Increase Amounts 5 Increase
from
Current
Council
Member
Salary
Mayor Salary
(total)
Compared to
Median
(Council)
Compared to
Average
(Council)
Rank
1 = highest
7 = lowest
(Council)
0% $772.20 $1,072.20 +$52.20 -$132.11 3
5% $810.81 $1,110.81 +$90.81 -$93.50 3
10% $849.42 $1,149.42 +$129.42 -$54.89 3
15% $888.03 $1,188.03 +$168.03 -$16.28 3
20% (max) $926.64 $1,226.64 +$206.64 +$22.33 3
Additional Mayor Compensation
In addition to salary received as a Council Member, Government Code Section 36516.1 provides the Mayor may receive additional compensation as established by Council ordinance. The amount of this compensation is not regulated by Government Code, and an increase may be enacted at any time, including mid-term of office.
In accordance with Municipal Code Section 2.04.020B., the Mayor presently receives an additional $300 in compensation per month. This additional Mayoral compensation is the third-highest amount countywide. The draft ordinance provided as Attachment 1 does not include a provision for increasing compensation for the position of Mayor. Should the Council wish to direct a change to the amount of Mayor compensation, staff recommends the change be made to the draft ordinance prior to introduction.
Recommendation and Next Steps
In accordance with the Council’s June 21, 2022 direction, staff recommends that the Council introduce an ordinance (Attachment 1) that would ultimately enact a 20% increase to the compensation amount for City Council Members. The Council may also provide direction as to modification of the additional monthly Mayor compensation, and amend the ordinance prior to introduction to reflect that change.
If the draft ordinance is introduced at this juncture, it will be scheduled for adoption at the August 2, 2022 meeting. In accordance with Government Code Section 36516.5, any adopted change in Council Member salary will take effect for all Council Members once one or more Council Members begin a new term of office, in this case following the certification of the results of the November 8, 2022 General Election in December 2022.
FISCAL IMPACT:
The annual fiscal impact of approving the attached Ordinance with a 20% increase from the current monthly compensation results in a $926.64 per month compensation for Council Members and $1,226.64 per month compensation for the Mayor. This results in an estimated additional $9,978 year, or $5,821 for a partial year in FY 2023. Should Council approve this increase, staff will come back at Mid-Year budget around December 2022 to increase the FY 2023 General Fund City Council salaries and benefits budget. 5 See footnotes on Table 1 for context on the salary data factored into these statistics.
Council Agenda 7-19-2022 12.B-2
ALTERNATIVES:
1.Decline to introduce the ordinance; salaries would remain unchanged.
ATTACHMENTS:
1.Draft Ordinance enacting revised salary amount
Prepared by: Meeting Date: July 19, 2022
Erica Inderlied, City Clerk
Submitted by: Jorge Garcia, Assistant City Manager
City Manager Approval:
Council Agenda 7-19-2022 12.B-3
ORDINANCE NO. O-2022-XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AMENDING CHAPTER 2.04, SECTION 2.04.020: SALARIES
DESIGNATED, OF THE CITY OF PISMO BEACH MUNICIPAL CODE, RELATING TO
COUNCIL MEMBER AND MAYOR COMPENSATION
WHEREAS, the City last set the salary of its Council Members at $772.20 per month, plus an additional $300 for the Mayor per month, via Ordinance O-2018-005, effective December 1, 2018; and
WHEREAS, Government Code Section 36516(a)(4) provides that Council Member salary may be increased by Ordinance in an amount not to exceed 5% per calendar year from the effective date of the prior salary; and
WHEREAS, Government Code Section 36516.1 provides that additional Mayoral compensation may be established by an ordinance of the City Council; and WHEREAS, an amendment to these salary amounts will better align Council Member and Mayoral compensation with the actual costs incurred in the course of holding office; and WHEREAS, this increase shall take effect for all Council Members and the Mayor on and after the date one or more Council Members begins a new term of office.
NOW, THEREFORE, the City Council of the City of Pismo Beach does ordain as follows:
SECTION 1.
The foregoing recitals are adopted as findings of fact in support of this ordinance.
SECTION 2.
Section 2.04.020 of the Pismo Beach Municipal Code is revised to read as follows:
2.04.020 Salaries Designated.
A.Each member of the City Council shall receive, as salary, the sum of nine hundred twenty-six dollars and sixty-four cents ($926.64) per month, as prescribed by Section 36516 et seq. of the Government Code for cities of up to and including thirty-five thousand in population, effective as of the date one or more members of the City Council are sworn in for a new term of office following certification of the results of the November 8, 2022 general election.
Council Agenda 7-19-2022 12.B-4
Attachment 1
B.Pursuant to Government Code Section 36516.1, in addition to the above salary received as a member of the City Council, the Mayor shall receive three hundred dollars ($300) per month.
C.In addition, each member of the Council shall be reimbursed for actual expenses incurred in the performance of the Council's duties in such amounts as may be approved by resolution. Both the salary and the expense reimbursements shall be payable at the same time and in the same manner as the same are paid to other officers and employees of the City.
SECTION 3.
Under the provisions of the California Environmental Quality Act (CEQA) Guidelines Section 15061 (b) (3), this ordinance is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, such as the adoption of the regulations contained herein, the activity is not subject to CEQA.
SECTION 4.
This ordinance shall not be interpreted in any manner to conflict with controlling provisions of state or federal law, including, without limitation, the Constitution of the State of California. If any section, subsection, or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. If this ordinance, or any section, subsection or clause of this ordinance shall be deemed unconstitutional or invalid as applied to a particular appeal, the validity of this ordinance and its sections, subsections, and clauses in regard to other contracts shall not be affected.
SECTION 5.
This ordinance shall become effective on the thirtieth (30th) day following passage and adoption hereof. The provisions of this ordinance shall take effect for all Council Members and the Mayor on and after the date one or more Council Members begins a new term of office.
SECTION 6.
The City Clerk shall certify to the passage and adoption of this Ordinance, shall enter the same in the book of original ordinances of the City and shall make a minute of the passage and adoption thereof in the records of the meeting at which the same is passed and adopted.
Before the expiration of fifteen (15) days after the passage of this Ordinance, the City Clerk shall cause the same to be posted in three public places within the City of Pismo Council Agenda 7-19-2022 12.B-5
Attachment 1
Beach, to wit: 1) City Hall, 760 Mattie Road, Pismo Beach, 2) U.S. Post Office, Shell Beach Road, Pismo Beach, 3) U.S. Post Office, Crest Drive, Pismo Beach.
INTRODUCED at a regular meeting of the City Council held this 19th day of July, 2022, on motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
ADOPTED at a regular meeting of the City Council held this th day of , 2022, on motion of Council Member , seconded by Council Member , and on the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
APPROVED AS TO FORM:
______________________________
David M. Fleishman, City Attorney
Council Agenda 7-19-2022 12.B-6
Attachment 1