PREPARED BY: ALICIA PLATT DATE OF MEETING: 09/05/2023
SUBJECT:
TITLE
PRESENTATION ON CURRENT SALARY AND NON-SALARY COMPENSABLE BENEFITS OF CITY ELECTED OFFICIALS
CEQA: This is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Receive presentation; provide direction to the City Manager
Body
Compliance statements
FY2023-25 CITY COUNCIL PRIORITY WORKPLAN
Non-Salary Compensable Benefits for City Elected Officials are NOT an adopted policy in the adopted FY 2023-25 Council Priority Workplan, effective May 1, 2023
CEQA Compliance Statement
Not a project under CEQA.
BACKGROUND
At the June 5, 2023 City Council meeting, on motion made by Councilmember Pabon-Alvarado and affirmed by majority vote, the City Council voted to add an agenda item for future City Council policy discussion to review all current non-salary compensable benefits for the City Council. This informational item provides the information requested by the City Council.
Contra Costa County Cities’ Council Benefits Survey
To provide the Council with updated information, staff has completed a recent survey of Contra Costa County cities to compare current salary and compensable benefits for elected City officials (See Attachment).
Previous Adopted City Council Ordinances (2011 to Current) Impacting City Elected Officials Compensation
Since all City Council members, as well as the elected City Clerk and elected City Treasurer, are part-time serving officials with limited powers and duties pursuant to the San Pablo Municipal Code, the City Council previously adopted ordinances that limit compensation and benefits for all elected City officials in accordance with the Public Employees’ Medical and Hospital Care Act (PEMHCA) regulations as follows:
1) Ordinance No. 2011-002 (Adopted 07/05/11): Established limits on medical in-lieu compensation, retirement and welfare benefits for City Council members pursuant to San Pablo Municipal Code (SPMC) 2.40.020(B); State Government Code Section 36516 (d); 53208.5; 36516 (f); and PEMHCA regulations)
2) Ordinance No. 2014-11 (Adopted 10/06/14): Established salaries for City Council, City Clerk and City Treasurer pursuant to State Government Code Section 36516(b); limited health and welfare benefits to retired members of the City Council first elected on or after January 1, 2013, including but not limited to any city-paid supplemental to PEMHCA medical coverage, life insurance, dental coverage, or any other health and welfare benefit during retirement; provided that City shall pay for the health and welfare coverage of each City Clerk and City Treasurer elected prior to November 2010, during their terms of office, to the same extent as provided for members of the City Council; no City Clerk or City Treasurer first elected on or after November, 2010 shall be entitled to any city-paid health or welfare benefits during retirement, including but not limited to any city-paid supplemental to PEMHCA medical coverage, life insurance, dental coverage, or any other health and welfare benefit during retirement.
3). Ordinance No. 2014-014 (Adopted 10/20/14): Increased the City Clerk’s salary to four hundred ($400) dollars per month for the 2014-2018 term of office, and reduced the Clerk’s salary to two hundred ($200) dollars per month thereafter.
4) Ordinance No. 2018-004 (Adopted 09/17/18): Increased the salaries of members of the City Council to one thousand ninety-four dollars ($1,094) per month beginning in December 2018, and increased the salaries of the City Clerk and City Treasurer to two hundred and forty dollars ($240) per month.
Future City Council Salary Adjustments
On June 5, 2023, the City Council amended the FY 2023-25 Council Priority Workplan to consider a future salary adjustment for the City Council in accordance with State law requirements per adopted Resolution No. 2023-092 (See Attachment).
• Policy Item No. 120: Increase via future adopted Ordinance City elected officials' salaries, (with no changes to other benefits), to take effect when there is a minimum of one (1) Council member who commences a new term after November 2024 election pursuant to all applicable State law requirements.
• Policy Item No.121: Explore the operational feasibility of staff bringing forward for Council Consideration every two years beginning in the Fall of 2026 an ordinance to increase City elected officials' salaries, with no other changes to benefits, to be considered by future adopted Ordinance at least 60 days in advance of every subsequent municipal election held after the November 2024 election, and before the sitting of the next elected Council per all applicable state law requirements.
New California Senate Bill 329 (Adopted June 29, 2023)
As of June 29, 2023, new State law makes changes to the existing limits on City Council salary increases. Pre-existing law authorized a city council to increase council member salaries by ordinance by an amount that does not exceed 5% for each calendar year from the operative date of the last adjustment of the salary that is in effect when the increase is enacted. Existing law provides for the procedures by which a city may enact such ordinances and restricts when salary increases for city council members may take effect.
The new State law authorizes a city council to increase the salary of council members in one of two ways: (1) in an amount not exceeding the greater of either 5% for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted as provided before the new state law took effect, or (2) in an amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10% for each calendar year.
Current Non-Salary Compensable Benefits for City Elected Officials
Currently, the City Council has the following approved non-salary, compensable benefits provided to as part-time employees of the City as enumerated by State law or other health and welfare benefits under current adopted employee labor agreements as provided to other full-time City employees, as follows:
• Medical Insurance - Council members are eligible to enroll in City’s CalPERS Medical plans - City pays 90% of medical premium capped at applicable Kaiser plan rate. Council members pay remaining premium cost; or $350 (1-party)/$500 two-party or more) in lieu of medical benefits, contributed through deferred comp account
• Dental - City pays 100% of premium for all Council members and dependents
• Life Insurance - City pays 100% of the premium for $60,000 in life insurance coverage for each Council members, City Clerk and City Treasurer
• Retirement - Optional CalPERS or PARS; Council members, City Clerk and City Treasurer pay employee membership contribution of 7.75%
• Deferred Comp - Optional Councilmember contribution only
• Other - City contributes $450 to an IRS Section 125 Cafeteria Plan for each Councilmember.
City Manager Recommendation
By a majority vote of the City Council, staff was directed to provide this informational report Should the City Council wish to consider modifying any non-salary compensable benefits provided to the City’s elected officials, Council would need to direct staff, by a majority vote, to add an item to a future City Council meeting for Council to consider amending the FY 2023-25 Council Priority Workplan, effective May 1, 2023, to explore modifications to non-salary benefits for the City’s elected officials.
FISCAL IMPACT
None associated with this report.
ATTACHMENTS:
Att A - Contra Costa County Cities’ Elected Officials Compensation Survey (July 2023)
Att B - City Council Adopted Ordinances 2011-002, 2014-011, 2014-014, and 2018-004.
Att C - City Council Resolution No. 2023-092 (Adopted 06/05/2023)
Att D - SB 329 Chaptered (06/29/2023)
Att E - Contra Costa County Cities’ Survey of Current Compensation and Benefits for City
Councilmembers (July 2023)