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: 19 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: May 20, 2024
SUBJECT: Council Member Compensation – Ordinance Adoption RECOMMENDATION:
Adopt an Ordinance increasing compensation for City Council members from $600 per month to $1,200 per month, effective January 2025.
BACKGROUND:
On May 6, 2024, the City Council introduced an ordinance increasing compensation for the City Council from $600 per month to $1,200 per month, as authorized by the City Charter and state law. As originally drafted in accordance with prior Council direction, the draft ordinance provided for an increase to $1,000 per month, but following additional deliberation, the Council determined that monthly compensation of $1,200 was appropriate. The Council further directed that adoption of the draft ordinance should be presented to the Council at the May 20, 2024 meeting rather than listed as a consent item on the agenda.
As previously noted, on January 2, 2024, staff presented information to the City Council regarding a potential increase to Council member compensation. As stated in that staff report, the City Charter states that, “The mayor and other members of the city council shall each receive $600.00 per month compensation for their services as council. Compensation may be adjusted in the manner authorized by the general laws of the State for general law cities of the same population as San Mateo.” Chart. §2.03. The Charter therefore builds in flexibility to adjust Council compensation consistent with general law cities without a Charter amendment.
Under state law SB 329 (2023) effective on January 1, 2024, compensation for council members in general law cities may be increased, and for cities between 75,000 and 150,000, the maximum compensation will be $1,900 per month, although inflationary or other limited increases are permitted as specified. Automatic future increases are prohibited. Govt. §36516(a)(5). Any adjustment to Council compensation must be accomplished by ordinance. At the January 2 study session, a majority of the City Council directed staff to proceed with increasing monthly compensation to $1,000, before concluding that monthly compensation of $1,200 was appropriate at the May 6 regular meeting.
The current Charter language and compensation amount was set by Measure F, approved by the voters on November 5, 2002. Thus, more than twenty-one years have passed since the last increase in Council compensation. Applying a salary increase of 5% per year since the last adjustment in 2002 would have resulted in a current monthly salary of one thousand two hundred and thirty dollars ($1,230). According to a California Attorney General opinion, the 5 percent increase is not compounded, meaning that the 5 percent salary increase authorized for city council members “is to be applied to the currently received salary amount for the total number of years since the last salary adjustment.” 89 Ops Cal Atty Gen 159, 161-62 (2006). This information is also included in the draft ordinance as proposed findings, as required by state law.
CITY OF SAN MATEO
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Also, a salary increase for the Council may only take effect once a council member commences a new term. Specifically, “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 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.” Govt. §36516.5. What this means is that if the Council chooses to approve a salary increase, it will not apply until after the next municipal election.
To that end, the proposed ordinance is drafted to provide for increased compensation as of January 6, 2025, which is the beginning of the first full pay period in 2025, after the November 5, 2024 consolidated election. Certification of the election is anticipated at the December 9, 2024 regular Council meeting.
Procedurally, the Council must consider the proposed ordinance during at least two regular meetings at least seven days apart, and it may not be adopted at the first meeting. Govt. §36516(g). This prevents consideration of the ordinance during special meetings or adoption as an urgency (emergency) ordinance.
BUDGET IMPACT:
The anticipated cost of the proposed compensation increases for Fiscal Year 2024-25 is $22,000, which covers the period from January 2025 through June 2025. The annual cost for a full fiscal year is estimated to be approximately $44,230. If approved, the revised Council compensation will be included in future personnel budgets.
ENVIRONMENTAL DETERMINATION:
This proposed ordinance 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, and because it is a fiscal activity that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4),(5).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Proposed Ordinance
STAFF CONTACT
Prasanna W. Rasiah, City Attorney
[email protected]
(650) 522-7020