FOR THE COUNCIL MEETING OF MARCH 21, 2023
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
SUBJECT: CITY COUNCIL COMPENSATION
RECOMMENDATION:
That the City Council discuss Councilmember compensation and provide direction to staff.
BACKGRQUND:
City Council (Council) salaries have increased six times in the last four decades. The Council received a salary of $500 per month between 1986 and 2001. However, for a four-year period beginning in 1993 and running through 1996, the Council voluntarily reduced its salary by four percent during tight budget times. The Council received $800 per month between 2001 and 2005. Salaries increased in 2005 when they were increased to $920 per month; in 2008, when the salaries were adjusted to $1,050 per month; in August 2016, when salaries were set at $1,313 per month; and on December 31, 2022, to the current level of $1,706.90 per month.
Since the City of Santa Maria is a charter city and the setting of Councilmembers' salaries is defined as a municipal affair, the Council has the authority to increase their salaries by either Charter authority or the Government Code. The salary of Councilmembers of general law cities is controlled by Government Code Section 36516(a), which permits a City Council to establish by ordinance a salary level up to a ceiling determined by the city's population. The electorate may approve a higher salary. (Government Code § 36516(b)). A directly elected Mayor may receive additional compensation with the consent of the electorate or by ordinance of the City Council (Government Code §36516.1). Government Code §36516 (c) allows the compensation of Councilmembers to be increased by five percent for each calendar year from the operative date of the last adjustment of the salary. Chapter 2-2 of the Municipal Code deals with City Council salaries.
DISCUSSION:
In March 2022, a comparison of salary levels for nearby cities was provided to the Council. As shown below, Santa Maria is the most populous city, yet Councilmember salaries were the third lowest of the four agencies. Santa Barbara's salaries were more than 320 percent higher than Santa Maria's. Santa Barbara, is a city 21 percent smaller in population than Santa Maria.
City Mayor Sala
Council Sala
Santa Maria (2022)
$1,563
$1,313
107,398
Santa Maria (1/2023)
1,957
1,707
109,707
Lompoc
800
600
44,444
San Luis Obispo
2,509
1,989
47,063
Santa Barbara
5,255
4,204
88,665
It was the opinion of the City Attorney that "compounding" the salary each year from the last adjustment was not appropriate because it states the increase is five percent "each" year. If it said five percent "per" year, it could be compounded.
In March 2022, it had been six calendar years since the Council's last salary increase.
Therefore, the increase of $393.90 per month to a maximum salary of $1,706.90 per month per Councilmember was lawful ($1,313 X 5% X 6 years = $393.90; $1,313 current salary+$393.90 increase = $1,706.90). The authorizing Ordinance No. 2022- 01 (Attachment A) made December 2022 the effective date.
According to Government Code §36516.5, any salary increase may take effect only when at least one member of the Council commences a new term. And while Santa Maria is a charter city and the State Attorney General has stated that charter cities are exempt from the aforementioned Government Code section, because of a recent court case (Green Valley Landowners Assn. v. City of Vallejo [2015] 241 Cal. App. 4th 425, 436), the City Attorney recommends that any City Council salary increase not take effect until a Councilmember commences a new term.
Alternatives:
The Council could choose to raise salaries by five percent, not take any action on adjusting their salaries, or could approve a different amount as allowed by law.
Fiscal Considerations:
Should the Council decide to increase City Councilmembers' and the Mayor's salaries, the annual increased costs to the budget would need to be considered per fiscal year, and sufficient funding would need to be provided in the budget to accomplish this action; if not, then appropriate adjustments to the Mayor's and Council budget would need to be accommodated during an upcoming financial quarterly report and/or Mid -Cycle Budget.
Impact to the Community:
Increasing the Council's salaries to the maximum amount provided by law is still well below the value that the community receives from the benefit of having five dedicated individuals giving significant time in service to the community.
Environmental Notice:
The proposed service is administrative and would not result in direct or indirect changes to the physical environment and are not defined as a project under CEQA (Section 15378(b)(5)).
34 JASON STILWELL
City Manager
Attachment A: Ordinance No. 2022-01
ORDINANCE NO. 2022-01
1 1
1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MARIA, CALIFORNIA, AMENDING SECTION 2-2.02
(SALARIES DESIGNATED) OF CHAPTER 2-2 OF THE SANTA
MARIA MUNICIPAL CODE INCREASING CITY COUNCIL SALARIES
WHEREAS, the salaries of Councifmembers were last adjusted in 2016 to $1,313 per month for each Councilmember and an additional $250 per month for the Mayor; and WHEREAS, the California Government Code provides for increases to Council salaries; and
WHEREAS, the City Council has not had an increase in compensation for the past eight years, and only five times in the past 36 years; and WHEREAS, based on California Government Code provisions the City Council is eligible for a salary increase to $1,706.90 per month; and WHEREAS, there were three intervening years that the City Council did not grant salary increases to City employees and consistent application to the City Council would result in a salary increase to $1,313 per month rather than the eligible amount provided for in the California Government Code; and
WHEREAS, Government Code section 36516.5 does not apply to a charter city, however, the City Council voluntarily chooses to comply with its provisions, and therefore, the salary increases provided herein will not become effective until the start of the next term of office of any Councilmember.
NOW, THEREFORE, the City Council of the City of Santa Maria does hereby ordain as follows:
SECTION 1. Section 2-2.02 of.Chapter 2-2 of Title 2 is hereby amended to read as follows:
Section 2-2.02. Salaries designated.
Each member of the Council and the Mayor shall receive, exclusive of any money paid as reimbursement for actual and necessary expenses incurred in the performance of official City duties, as salary, the sum of one thousand seven hundred six dollars and ninety cents ($1,706.90) per month. The increased salaries shall become payable on December 31, 2022.
SECTION 2. After its passage and adoption, this Ordinance shall not commence until the start of the next term of office of any Councilmember, which will be December 2022.
Attachment A
SECTION 3. If any part or provision of this Chapter, or the application thereof to any person or circumstance, is held invalid, the remainder of the Chapter, including the application of that part or provision to other persons or circumstances, shall not be affected thereby and shall continue in full force and effect. To this end, the provisions of this Ordinance are severable.
SECTION 4. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
SECTION 5. This Ordinance shall be in full force and effect thirty (30) days after its passage.
Within fifteen days following its passage, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in accordance with State Law; or when deemed necessary due to the length or complexity of the Ordinance, cause a summary of the Ordinance to be prepared and published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted. If a summary is published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted, then within 15 days after adoption of the Ordinance the City Clerk shall publish a summary of the Ordinance with the names of those City Council Members voting for and against the Ordinance and shall post a certified copy of the full text of such adopted Ordinance along with the names of those City Council Members voting for and against the Ordinance.
INTRODUCED at a regular meeting of the City Council of the City of Santa Maria, California, held on the 2'd day of March 2022, and PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held the 15th day of March 2022.
M
ATTEST:
Chief Deputy City Clerk
City Manager
APPROVED A e ORM:
ity Attorney
aV D AS OXNT:
Departinen
Director
1 1
1 STATE OF CALIFORNIA
COUNTY OF SANTA BARBARA) ss.
CITY OF SANTA MARIA
I, M. BETH CLEARY, CMC, Deputy City Clerk of the City of Santa Maria and ex officio Clerk of the City Council, DO HEREBY CERTIFY that the foregoing is a full, true and correct copy of Ordinance No. 2022-01 which was duly and regularly introduced by said City Council at a regular meeting held March 2, 2022, on motion by Councilmember Waterfield, seconded by Councilmember Cordero, and carried on the following vote:
AYES: Councilmernbers Cordero, Escobedo, Soto, Waterfield, and Mayor Patino.
NOES: None.
ABSENT: None.
ABSTAINED: None.
and which was adopted by said City Council at a regular meeting held March 15, 2022, on motion by Councilmember Cordero, seconded by Councilmember Escobedo, and carried on the following vote:
AYES: Councilmembers Cordero, Escobedo, Soto, Waterfield, and Mayor Patino.
NOES: None.
ABSENT: None.
ABSTAINED: None.
I further certify that said Ordinance No. 2022-01 was duly published in full in accordance with the law and order of said City Council in the SANTA MARIA TIMES, a newspaper printed and published in said City on March 22, 2022.
Deputy City Clerk of the City of Santa aria and
ex officio Clerk of the City Council
MI