CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 2 Section Name: {{section.name}} Account Number: 10-1711 File ID: {{item.tracking_number}} TO: City Council
FROM: Prasanna W. Rasiah, City Attorney
PREPARED BY: City Attorney's Office
MEETING DATE: March 4, 2024
SUBJECT:
Charter Amendments: Board and Commission Compensation and Eligibility – Study Session RECOMMENDATION:
Provide feedback and direction on proposed City Charter amendments addressing Board and Commission member selection and compensation, and other revisions.
BACKGROUND:
During the January 2, 2024 study session, staff presented proposed Charter amendments addressing how the Mayor is chosen, board and commission member selection and compensation, and other revisions, as well as Council member compensation. The Council reached consensus regarding the proposed Charter amendments, with Council member compensation to be considered further at a future meeting but directed staff to bring back more information with respect to board and commission eligibility and compensation.
This will be the last study session on Charter amendments before the first public hearing is held on April 1, 2024. For reference, links to prior study sessions that address a number of other Charter revisions are provided at the end of this report. Staff is seeking Council feedback this evening on the following questions:
1. Does the Council agree with:
i. Proposed language addressing board and commission member eligibility? ii. Proposed language addressing board and commission member compensation? DISCUSSION:
A. Board and Commission Member Eligibility
Existing Charter Language (Sec. 6.05) Proposed Charter Language The members of all boards and commissions created by
ordinance or by this Charter shall be appointed by the
council, and shall at the time of appointment and while serving possess the same qualifications as required by this Charter for election or appointment to the council.
The number of members of such a board or commission
shall not exceed the authorized number of members of
the city council unless the ordinance establishing such The members of all boards and commissions created by
ordinance or by this Charter shall be appointed by the
council, and shall at the time of appointment and while serving possess the same qualifications as required by this Charter for election or appointment to the council be a resident of the city unless otherwise provided by the
council, [and be at least 18 years of age].
The number of members of such a board or commission
shall not exceed the authorized number of members of
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additional number be approved by vote of the people or
by unanimous vote of the council.
The members of such boards and commissions shall be
appointed for terms of four years, except that if the
ordinance provides, initial terms may be pared by lot as necessary so that each year one or more terms will expire.
The terms of office of existing boards or commissions
having regular terms of more or less than four years shall be pared or extended as to incumbents in such manner as the city council shall determine so as to establish four-year terms in conformity with this section within two years
after this Charter goes into effect.
No member of a board or commission shall be eligible for reappointment to the same board or commission after
serving two consecutive four-year terms provided that no partial term of office shall be counted as any portion of the consecutive terms.
the city council unless the ordinance establishing such additional number be approved by vote of the people or
by unanimous vote of the council.
The members of such boards and commissions shall be
appointed for terms of four years, except that if the
ordinance provides, initial terms may be pared by lot as necessary so that each year one or more terms will expire.
The terms of office of existing boards or commissions
having regular terms of more or less than four years shall be pared or extended as to incumbents in such manner as the city council shall determine so as to establish four-year terms in conformity with this section within two years
after this Charter goes into effect.
No member of a board or commission shall be eligible for reappointment to the same board or commission after
serving two consecutive four-year terms provided that no partial term of office shall be counted as any portion of the consecutive terms.
The proposed Charter amendment would allow non-citizens, such as lawful permanent residents, to serve on boards and commissions. It would also generally require board and commission members to be City residents but would permit the City Council to create exceptions to that rule, most likely by ordinance. Such an exception would allow residents in adjacent unincorporated areas to serve on a commission, as appropriate.
Under state law, a person is now eligible to hold an appointed civil office if they are at least 18 years of age and a resident of the state. Senate Bill (SB) 225 (2019) changed the criteria for holding an appointed civil office, such as a member of a city board or commission, such that an individual was no longer required to be a citizen of the state and could instead merely be a resident of the state. Govt. §1020. SB 225 also does not permit the state to circumvent federal employment laws. This law is intended to generally apply to state and local boards and commissions, including general law cities. While the legislation does not explicitly state that it applies to charter cities, Berkeley, Hayward, and Santa Monica (all charter cities) have aligned their qualifications for service with this law.
B. Board and Commission Compensation
Existing Charter Language (Sec. 6.06) Proposed Charter Language The members of such boards and commissions shall
receive no compensation for their services as such, but may receive reimbursement for their actual and necessary expenses authorized by the city council and incurred in performance of their duties of office upon presentation of verified claims therefor on uniform forms to be prescribed by resolution of the city council.
The members of such boards and commissions shall
receive no compensation for their services as such, unless otherwise provided by the city council, but may receive reimbursement for their actual and necessary expenses
authorized by the city council and incurred in performance of their duties of office upon presentation of verified claims therefor on uniform forms to be prescribed by
resolution of the city council.
The proposed language would allow the Council to approve compensation for each board and commission on a case-by- case basis, most likely by codified ordinance. This would facilitate the Council’s consideration of individualized
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circumstances for each board and commission whose members deserve compensation, such as a stipend, in the eyes of the Council, depending on their scope of work. Those serving on City Boards or Commissions currently serve as volunteers without any compensation or stipend. However, compensating board and commission members would create a risk that they would be considered employees.
An employee is one who works for an employer (including an individual or organization) for a wage or salary under an express or implied contract of employment. See Lab. §1132.4. But it also generally covers individuals who receive payment for services, other than independent contractors. A payment would include regular salary as well as more nominal amounts provided in recognition of performing services, such as a stipend for cell phone usage or a car allowance.
This sort of income is to be distinguished from reimbursement for expenses or other incidentals, which is already allowed for board and commission members under the Charter as noted above. In the event that the City elected to pay members of boards and commissions, they may be considered employees of the City, similar to members of the City Council.
Payment to board or commission members, such as in the form of a nominal stipend, would need to be processed by the Finance Department and would require generating a W-2 form. The payment would also likely be considered taxable income. Nevertheless, the proposed Charter amendment would enable the Council to decide, by ordinance which board and commission members should receive payment and in what amount, if approved by the voters.
SB 225 (discussed above) addresses the possibility of compensation for board and commission members, including a stipend, but it also makes it clear that no such compensation may be provided if doing so would be prohibited by federal law.
Below is a chart identifying compensation for board and commissions discussed in the July 17, 2023 study session staff report, and in the same order.
City Commission Compensation per Meeting
Torrance Planning Commission
Other
$10
$10
Monterey Planning Commission
Other
$25
$25
Grand Terrace Planning Commission $50
Pismo Beach Planning Commission
Other
$50
$25
Escalon Planning Commission $50
Diamond Bar Planning Commission
Other
$65
$45
Maywood Planning Commission $65
Mission Viejo Planning Commission
Other
$100
$100
Upland Planning Commission $100
Barstow Planning Commission $100
Chino Planning Commission
Other
$125
$75
Chino Hills Planning Commission
Other
$125
$75
Montclair Planning Commission
Other
$125
$50
Rancho Cucamonga Planning Commission $150
Lake Elsinore Planning Commission
Other
$150
$100
Long Beach Planning Commission $200
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Other $200
Fremont Planning Commission $200
Irwindale Planning Commission
Other
$200
$175
Santa Clarita Planning Commission
Other
$227
$169
Laguna Beach Planning Commission
Other
$392
$392
Costa Mesa Planning Commission
Other
$400
$100
Truckee Planning Commission $400
Finally, Workers’ compensation applies to employees who have sustained work-related injuries or illnesses. See Lab. §§3600, 3208. An “employee” includes all elected and paid public officers. Lab. §3351(b). Also, volunteers for public agencies are provided workers’ compensation coverage only if the governing body adopts a resolution approving such coverage. Lab. §3363.5. In 1978, the City Council adopted Resolution No. 10 to reimburse volunteers who were injured while providing volunteer services for the City. Based on this resolution, the City's practice has been to provide workers’ compensation coverage to volunteers, including board and commission members, although this rarely comes up. Thus, in the event that the City paid board and commission members following passage of a Charter amendment, that would not affect the City’s workers’ compensation exposure as these individuals are already covered.
BUDGET IMPACT:
There is no budget impact associated with this study session. Should the Council direct staff to pursue further action on charter amendments, further analysis and scoping will be required. Hiring a ballot measure consultant and polling consultant will likely cost approximately $52,300. This represents a correction to the January 2, 2024 report that listed $190,000, when much of that figure represents costs related to a potential amendment to Measure Y. Note that consistent with state law, no public funds can be used to advocate for or against a ballot measure. Instead, these funds would be used for polling and education and information to determine how each measure should be formulated. Finally, placing each measure on the ballot at the consolidated November 5, 2024 election will also cost approximately $100,000, for a total of $390,000.
ENVIRONMENTAL DETERMINATION:
This study session is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met. Additionally, a public hearing notice was published for this study session.
ATTACHMENTS
Att 1 – Proposed Charter Amendments – Tracked Changes
LINKS
City Charter
City Council Guidelines
July 17, 2023 Study Session (Item 2)
October 16, 2023 Study Session (Item 2)
January 2, 2024 Study Session (Item 2)
STAFF CONTACT
Prasanna W. Rasiah, City Attorney
[email protected]
(650) 522-7020