CC 2019-11-26_10b Introduce Ordinance Council Compensation
MEMORANDUM
TO: CITY COUNCIL
FROM: JAMES BERGMAN, CITY MANAGER
BY: KELLY WETMORE, DIRECTOR OF LEGISLATIVE AND INFORMATION
SERVICES/CITY CLERK
SUBJECT: CONSIDERATION OF INTRODUCTION OF AN ORDINANCE MODIFYING
COUNCIL MEMBER SALARY, EFFECTIVE DECEMBER 2020
DATE: NOVEMBER 26, 2019
SUMMARY OF ACTION:
Introduction of an Ordinance modifying council member salary, effective December 2020 after
the November 2020 General Municipal Election.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The modification to monthly council member salary and the additional monthly mayor
compensation would not be effective until December 2020; therefore, the fiscal impact in
Fiscal Year 2020-21 would be $9,555.
RECOMMENDATION:
It is recommended that the Council introduce an Ordinance amending Section 2.04.040 of
Chapter 2.04 of Title 2 of the Arroyo Grande Municipal Code relating to City Council
compensation.
BACKGROUND:
At the November 12, 2019 meeting, the City Council received information regarding current
Council compensation. Following discussion and public input, the Council directed staff to
prepare an ordinance modifying the monthly salary (or “stipend”) for council members in the
amount of $648 per month, including additional monthly compensation for the mayor in the
amount of $150, with the change to become effective in December 2020 after the next
General Municipal Election.
ANALYSIS OF ISSUES:
State law (Government Code Sections 36516 – 36516.5) sets forth the methods for
establishing council member and mayor salaries by ordinance in general law cities, based on
the population of the City. Cities up to and including 35,000 in population may compensate
council members with a monthly salary of up to $300. Council salaries may be increased
above $300.00 per month in an amount not to exceed 5% per calendar year from the effective
date of the prior salary, provided the increase is adopted by ordinance, or by an amendment
to an ordinance. Calculations may not be compounded when calculating the increase.
Further, a change in council member compensation cannot be applied during the council
member’s term of office and can only become effective whenever one or more members
Item 10.b. - Page 1
CITY COUNCIL
CONSIDERATION OF INTRODUCTION OF AN ORDINANCE MODIFYING COUNCIL
MEMBER SALARY, EFFECTIVE DECEMBER 2020
NOVEMBER 26, 2019
PAGE 2
begin a new term of office. Therefore, any change in council member compensation would
not take effect until after the November 2020 General Municipal Election.
In addition to the salary received as a council member, State law provides that the mayor
may receive additional compensation as established by ordinance. The amount of additional
compensation is not regulated by State law and the amount may be enacted at any time
during the term of office as the prohibition against “mid-term” increases applicable to council
members cited above does not apply to elected mayors.
Below is the history of Council approved compensation in Arroyo Grande:
1966: Pursuant to State law at the time for cities 6,000 to 35,000 in population, the
City Council first established council member salaries in the amount of $150 per month
by adoption of Ordinance No. 211.
1986: The Council adopted Ordinance No. 342 increasing council member salaries to
$300 per month pursuant to current State law (passed in 1984) permitting
municipalities with a population up to 35,000 to enact an Ordinance providing council
members up to $300 per month in salary.
1997: The Council adopted Ordinance No. 491 increasing council member salaries
from $300 to $330 per month and established a monthly expense allowance of $75.
2008: Following the passage of Assembly Bill 1234 in 2006, which imposed ethics
training and compensation and reimbursement requirements on cities, it was
determined that elimination of the $75 expense allowance was necessary in order to
comply with State law. The Council adopted Ordinance No. 604 increasing council
member monthly salaries from $330 to $405 in order to replace the City Council $75
monthly expense allowance that had been eliminated.
City Council Salaries
For purposes of comparison, a survey of council salaries (or “stipends”) and additional mayor
compensation within San Luis Obispo County is provided below in Table 1.
Table 1
City Council Monthly Salary (“Stipend”)
City Population Council
Member Salary
Add’l
Mayor
Salary
Total
Mayor
Salary
Last
Increase
Arroyo Grande 17,252 $405.00 $0.00 $405.00 2008*
Atascadero 28,310 $600.00 $150.00 $750.00 2017
Grover Beach 13,156 $600.00 $150.00 $750.00 2018
Morro Bay 10,234 $500.00 $200.00 $700.00 2002
Paso Robles 29,793 $600.00 $200.00 $800.00 2006
Pismo Beach 7,655 $772.20 $300.00 $1,072.20 2018
San Luis Obispo 45,119 $1,224.00 $526.00 $1,750.00 2018
*Eliminated $75/mo expense allowance pursuant to AB1234 and increased salary by $75
Item 10.b. - Page 2
CITY COUNCIL
CONSIDERATION OF INTRODUCTION OF AN ORDINANCE MODIFYING COUNCIL
MEMBER SALARY, EFFECTIVE DECEMBER 2020
NOVEMBER 26, 2019
PAGE 3
The current salary (“stipend”) of $405 per month for the Arroyo Grande mayor and council
members has been in place since December 1, 2008. Utilizing the 5% formula permitted
under State law, the monthly salary may be increased up to $243 per month for a total
maximum monthly salary of $648.
There are no specific guidelines for determining an additional amount of salary for the mayor;
therefore, the Council has discretion in making that determination based on the Mayor’s
additional duties and responsibilities. Based on Council direction on November 12th, the
proposed Ordinance provides additional compensation of $150 per month for the mayor.
While this additional amount may be enacted by ordinance at any time during the mayor’s
term of office, the proposed ordinance sets forth that amendments to both council member
and mayor salaries become effective in December 2020, after the November 2020 General
Municipal Election and when one or more council members commence a new term of office.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Introduce an Ordinance amending Section 2.04.040 of Chapter 2.04 of Title 2 of the
Arroyo Grande Municipal Code relating to City Council compensation, to become
effective in December 2020 after the next General Municipal Election;
2. Modify and introduce an Ordinance amending Section 2.04.040 of Chapter 2.04 of Title
2 of the Arroyo Grande Municipal Code relating to City Council compensation, to
become effective in December 2020 after the next General Municipal Election; or
3. Provide other direction to staff.
ADVANTAGES:
The proposed increase in Council compensation will provide elected officials with additional
compensation to defray costs associated with their service.
DISADVANTAGES:
The proposed increase in Council compensation will result in additional costs beginning next
fiscal year.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
No new correspondence has been received by the City since the November 12, 2019 meeting
and as of the publication of this report. The Agenda was posted at City Hall and on the City’s
website in accordance with Government Code Section 54954.2.
Item 10.b. - Page 3
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AMENDING SECTION 2.04.040 OF
CHAPTER 2.04 OF TITLE 2 OF THE ARROYO GRANDE
MUNICIPAL CODE RELATING TO CITY COUNCIL
COMPENSATION
WHEREAS, the City of Arroyo Grande (“City”) is a municipal corporation formed pursuant
to the laws of the State of California; and
WHEREAS, pursuant to Government Code Section 36516, a city council may enact an
ordinance providing that each city council member receive compensation the amount of
which shall be based upon the city’s population; and
WHEREAS, on November 25, 1997, the City Council adopted Ordinance No. 491
increasing city council member salaries from $300 to $330 per month, based upon the
City’s population of less than 35,000 people and established a monthly expense
allowance of $75; and
WHEREAS, on September 23, 2008, the City Council adopted Ordinance No. 604, which
eliminated the $75 monthly expense allowance and instead increased council member
salaries from $330 to $405 per month; and
WHEREAS, the compensation earned by council members and established in 1997 as
modified in 2008, has not been increased, despite substantial increases in the cost of
living; and
WHEREAS, based on the last federal census, the City’s population is still less than 35,000
people; and
WHEREAS, pursuant to Government Code Section 36516(a)(4), council member
compensation may be increased in an amount not to exceed five percent (5%) for each
calendar year from the operative date of the last adjustment of the council member
compensation; and
WHEREAS, by this Ordinance, the City Council intends to increase its salary from $405
to $648 per month; and
WHEREAS, pursuant to Government Code Section 36516.1, an elected mayor may be
provided with compensation in addition to that which he or she receives as a council
member; and
WHEREAS, the City has not previously provided additional compensation for the mayor
but wishes to do so at this time in the amount of $150 per month.
Item 10.b. - Page 4
ORDINANCE NO.
PAGE 2
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES
ORDAIN AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this
reference.
SECTION 2. Section 2.04.040 of Chapter 2.04 of Title 2, is hereby amended to read in
its entirety as follows:
2.04.040 – Salary compensation for mayor and council members.
A. Population. As of January 1, 2019, the estimated population of the City of
Arroyo Grande is less than thirty-five thousand (35,000) residents.
B. Council Salaries. The salary for the mayor and each council member shall be
six hundred forty eight dollars ($648) per month, effective December 1, 2020.
C. Council Expenses. The salaries set forth herein are, and shall be, exclusive of
any amount payable to the mayor and each council member for actual and
necessary expenses incurred by the mayor or council member in the
performance of official duties for the City.
D. Additional Compensation for Mayor. The mayor shall receive compensation in
addition to that which the mayor receives as a council member in the amount
of one hundred fifty dollars ($150) per month, effective December 1, 2020.
E. Retirement/Benefits. Any amounts paid by the City for retirement, health and
welfare, and federal social security benefits shall not be included for purposes
of determining salary under this section, provided the same benefits are
available and paid by the City for its employees generally.
SECTION 3. A summary of this Ordinance shall be published in a newspaper published
and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council
meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text
of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen
(15) days after adoption of the Ordinance, the summary with the names of those City
Council members voting for and against the Ordinance shall be published again, and the
City Clerk shall post a certified copy of the full text of such adopted Ordinance.
SECTION 4. This Ordinance shall take effect and be in full force and effect thirty (30)
days after its passage.
SECTION 5. If any section, subsection, sentence, clause, or phrase of this Ordinance is
for any reason held to be invalid or unconstitutional by a decision of any court of
competent jurisdiction, such decision shall not affect the validity of the remaining portions
Item 10.b. - Page 5
ORDINANCE NO.
PAGE 3
of this Ordinance. The City Council hereby declares that it would have passed this
Ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
On motion by Council Member ______, seconded by Council Member _______, and by
the following roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing Ordinance was adopted this ____ day of _______, 2019.
Item 10.b. - Page 6
ORDINANCE NO.
PAGE 4
___________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
___________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
___________________________________
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
___________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
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