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HomeMy WebLinkAboutD-4 Staff Report - Discussion of Elected, Board, and Commissioner CompensationSCHEDULED ITEM D-4 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: AUGUST 19, 2024 SUBJECT: ADOPTION OF ORDINANCE AND RESOLUTIONS REVISING COMPENSATION AND BENEFITS FOR ELECTED AND APPOINTED OFFICIALS BACKGROUND: Since July 1, 1999, the Mayor and each member of the City Council has received a monthly compensation of four hundred dollars ($400) for their service to the City. This amount was permitted by California Government Code section 36516 (“Section 36516”) based on Azusa’s population at that time. The law would have also allowed Azusa to annually increase City Council Members’ salaries by 5%; however, the City has not made such an increase in over 25 years. Effective January 1, 2024, the California Legislature enacted Senate Bill 329 (“SB 329”), amending Section 36516, which increased the maximum salary amount for a city council member that can be approved by ordinance, based on the city's population. The Legislature stated that the purpose of the bill is to allow cities to adjust their compensation to account for inflation since 1984, when the previous limits began, in order to help city councils become more diverse. Increased compensation can help reduce economic barriers to service and attract individuals from different income levels. The law also allows for council members' salaries to be increased by up to 5% each year from the last salary adjustment or by an amount equal to the inflation based on the California Consumer Price Index, capped at 10% per year. In addition to the City Council, the city also has elected positions for City Clerk and City Treasurer, who receive salary and benefits for their service. Additionally, appointed members of various Boards and Commissions receive a stipend for each meeting they attend. Before increasing council member compensation through an ordinance, the City Council must discuss it in at least two regular open session meetings and make findings for such increases. On February 5, 2024, the Council heard a presentation from staff about the change in law, discussed the time commitments required of Azusa Councilmembers and other elected and appointed officials, and instructed staff to return with recommendations to adjust compensation of elected and appointed officials. The recommended actions introduce first reading to amend Section 2-30. Compensation and Section 2-31. Mayor’s Compensation of the Azusa Municipal Code, and adopts resolutions setting the total compensation for City Council members and other elected officials, as well as the stipends and salaries for Board/Commission members. Approved City Council August 19, 2024 Elected Officials, Board Member and Commissioner Compensation August 19, 2024 Page 2 RECOMMENDATIONS: Staff recommends the City Council take the following actions: 1) Waive further reading, read by title only, and introduce Ordinance No. 2024-06 - an Ordinance of the City Council of the City of Azusa, California, amending Section 2-30 and Section 2-31 of the Azusa Municipal Code relating to City Council and Mayor’s Compensation; and 2) Adopt Resolution No. 2024-C43 - a Resolution of the City Council of the City of Azusa, California, Revising the Schedule of Salary and Benefits for City Council Members; and 3) Adopt Resolution No. 2024-C44 - a Resolution of the City Council of the City of Azusa, California, Revising the Schedule of Salary and Benefits for Other Elected Officials; and 4) Adopt Resolution No. 2024-C45 - a Resolution of the City Council of the City of Azusa, California, Adjusting Stipends for Board Members and Commissioners. ANALYSIS: City Council Compensation The compensation schedule for general law cities has not been adjusted since 1984, which means that city council compensation has not kept pace with inflation. Allowing cities to adjust their compensation for inflation since 1984 may help city councils become more diverse because increased compensation can help individuals from across different income levels to receive sufficient income for their service, ensuring they can continue to serve the public and support their families. Council members are required to dedicate many hours each week to their official and ceremonial duties, in addition to attending City Council meetings. These duties include preparing for meetings, attending meetings of various boards and commissions, providing input on community matters, responding to constituent communications and public records requests, attending ceremonial and community events, and participating in conferences, trainings, and workshops on behalf of the City. Despite spending an average of 20-30 hours per week on community service, Council members do not seek financial compensation. However, at their current compensation level, Council members receive $5.00 or less per hour of service. SB 329 aims to address barriers such as extremely low compensation for those seeking elected office. Section 36516 sets a maximum amount of salary for a Council Member, with specific exceptions. If compensation does not fall within one of these specific exceptions or is not governed by an independent statute, then the compensation received is subject to the maximum amount in Section 36516. Salaries in accordance with Section 36516 were amended on January 1, 2024 as follows: A. In cities up to and including 35,000 in population, up to and including nine hundred fifty dollars ($950) per month. B. In cities over 35,000 up to and including 50,000 in population, up to and including one thousand two hundred seventy-five dollars ($1,275) per month. C. In cities over 50,000 up to and including 75,000 in population, up to and including one thousand six hundred dollars ($1,600) per month. City Council, Elected Officials, and Board member/Commissioner Compensation August 19, 2024 Page 3 D. In cities over 75,000 up to and including 150,000 in population, up to and including one thousand nine hundred dollars ($1,900) per month. E. In cities over 150,000 up to and including 250,000 in population, up to and including two thousand five hundred fifty dollars ($2,550) per month. F. In cities over 250,000 population, up to and including three thousand two hundred dollars ($3,200) per month. Further, Section 36516 requires the population of a city be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance. Azusa’s population per the Federal Census Bureau is estimated at 48,272 as of July 1, 2023 and per the Department of Finance at 49,420 as of January 1, 2024. The Government Code allows council salaries to be increased beyond the amounts provided for the above population counts, but the amount of the increase shall not exceed the greater of either of the following: 1. An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted; or 2. An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year. Currently, the City Council (including the Mayor) receives a $400 monthly salary since July 1, 1999 (or earlier), which was the maximum allowed using Azusa’s population prior to Section 36516 revisions, and the following benefits/allowances which do not count as salary under Section 36516: • Auto Allowance – $350.00 per month; • Flexible Benefit Contribution for Medical – $1,500.00 per month; • Medicare Tax – $10.88 per month; • PERS Employer Contributions – $30.00 per month; • Life Insurance – $1.80 per month; and • Worker’s Compensation – $16 per month. Table 1 provides a comparison of the estimated fiscal impact given the following scenarios: 1) the current cost of Council’s pay and benefits should the Council elect not to change them; or 2) the cost should the Council elect to increase the salary using Azusa’s latest population estimates (35,001 – 50,000) under the new law; or 3) an estimate of the salary if the Council would have applied the 5 percent annual adjust method since the current $400 salary was reaffirmed July 1, 1999. Elected Officials, Board Member and Commissioner Compensation August 19, 2024 Page 4 TABLE 1 Scenario 1 Scenario 2 Scenario 3 Current Population 5% Method Salary 400.00$ 1,275.00$ 1,290.04$ Automobile Allowance 350.00 350.00 350.00 Flexible Benefit Plan 1,500.00 1,500.00 1,500.00 PERS (Retirement) Contribution 30.00 95.63 96.75 Medicare Tax 10.88 23.56 23.78 Life Insurance 1.80 3.90 3.94 Worker's Compensation 16.00 51.00 51.60 2,308.68$ 3,299.09$ 3,316.11$ Under the January 1, 2024 Section 36516 revisions, the simplest methods of adopting a new salary would be to continue using the set population amount (Scenario 2). Using this method would set the monthly salary for the Mayor and each Councilmember to $1,275 per month. If approved, the attached Ordinance and accompanying Resolution setting forth the Schedule of Salary and Benefits for Council Members Pursuant to California Government Code section 35616.5, go into effect and become payable for the Mayor and all City Council Members December 1, 2024 or on the first day of the first month as soon as the following criteria is met: 1) when one or more members of the City Council becomes eligible for a salary increase by virtue of a Council Member beginning a new term of office following the November 5, 2024 general municipal election and 2) when the November 5, 2024 election results are certified. In total, the City’s current annual compensation and benefits for the Mayor and Council is $138,520.80. Increasing the monthly salary to $1,275.00, will increase the annual total $197,945.40. If approved, the Fiscal Year 2024-25 budget will be amended by $34,664.35. Other Elected Officials Compensation In addition to the City Council, the City has an elected City Clerk and City Treasurer. Since July 1, 1999, monthly salaries for these positions have been $3,090.26 and $2,626.91, respectively. Current monthly salaries and benefits are as follows: TABLE 2 City Clerk City Treasurer Salary 3,090.26$ 2,626.91$ Medical Contribution 1,500.00 1,500.00 PERS (Retirement) Contribution 231.77 197.02 Medicare Tax 44.81 38.09 Life Insurance 4.85 4.12 Worker's Compensation 123.61 105.08 4,995.30$ 4,471.22$ The Elected City Clerk serves as the Clerk of the City Council and the Secretary to the Utility Board, Azusa Public Financing Authority, and the Oversight Board to the former Redevelopment Agency, attends meetings, signs official city documents, safeguards the City Seal and with the support of city staff, maintains a legislative history of all actions. The City Treasurer manages the investment and cash management activities of the City, including the Redevelopment Agency and the Azusa Public Financing Authority. With the support of the Finance staff, the Treasurer prepares daily cash deposits, approves wire transfers, and collaborates with banking personnel to City Council, Elected Officials, and Board member/Commissioner Compensation August 19, 2024 Page 5 optimize service. The Treasurer also oversees the daily cash flow and cash balances of the City’s general checking account and investments, including the Local Agency Investment Fund (LAIF), to ensure there is enough cash to meet daily disbursements. Additionally, the Treasurer is responsible for preparing monthly investment reports required by State law, investing the City’s idle cash, and working with the City Manager and Administrative Services Director to review and update the City’s Investment Policy before submitting it to the City Council for approval. The annual compensation for these two elected positions is a total of $113,598.24. However, it is difficult to assess the appropriateness of these salaries because few cities have similar arrangements. The bulk of the duties in most general law cities are fulfilled by salaried staff. In these scenarios, compensation for the elected City Clerk and Treasurer is more aligned with that of a rotational Mayor and/or Council Member. Attached is a resolution which Council may adopt upon providing staff direction on whether to maintain the existing salaries for these positions or to modify them. If approved with salary increases, changes would be effective December 1, 2024 unless sooner directed by the City Council. Board Member and Commissioner Stipends The stipends for Azusa's various Boards and Commissions have not been updated since the 1980s. The City Council may modify these stipends by adopting a Resolution. Below are the current stipends per member for the existing Boards and Commissions: TABLE 3 Board or Commission Stipend per Meeting Meetings per Month Maximum per Month Cultural & Historic Preservation Commission 25.00$ 1 25.00$ Library Commission 25.00 1 25.00 Parks & Recreation 25.00 2 50.00 Personnel Board 25.00 2 50.00 Planning Commission 25.00 2 50.00 The city's annual commission stipends expense totals up to $12,000 (assuming no meeting cancellations and all board members attend every meeting). At the Council's direction, Staff conducted a survey of board/commission stipends in other cities. On average, other cities provide stipends ranging from $50 to $200 per meeting. Commissions responsible for reviewing more in-depth agenda packets and approving more technical information, such as Planning Commissions, tend to receive higher stipends. Based on the survey, the staff recommends the following stipends: TABLE 4 Board or Commission Stipend per Meeting Meetings per Month Maximum per Month Cultural & Historic Preservation Commission 50.00$ 1 50.00$ Library Commission 50.00 1 50.00 Parks & Recreation 50.00 2 100.00 Personnel Board 75.00 2 150.00 Planning Commission 100.00 2 200.00 Adopting the recommended stipend modifications would amount to a total annual cost of up to $33,000, a maximum increase of $21,000 per year. Attached is a resolution which Council may adopt upon providing staff direction on desired stipends per Board or Commission. If approved, changes would be effective Elected Officials, Board Member and Commissioner Compensation August 19, 2024 Page 6 December 1, 2024 unless sooner directed by the City Council. FISCAL IMPACT: Over the past 25 years, the City Council has saved the City over $545,000 by maintaining its current $400.00 monthly salary. Due to inflation, and recognizing the importance of incentivizing individuals to serve their communities, the State has increased salary limits for city council members. Any modifications to Azusa City Council compensation will not take effect until December 1, 2024 (or the first day of the first month as soon as the November 5, 2024 election results are certified). Adoption of the attached resolutions would result in the following budget amendments to the General Fund FY 2024/25 budget: Council compensation of $34,664.35, and Board/Commission Stipends of $12,250.00, for a total of $46,914.39. Should the City Council wish to modify the compensation for the Elected City Clerk and Treasurer, an appropriate budget amendment would be processed. Prepared by: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachments: 1. Senate Bill 329 2. Ordinance No. 2024-06 3. Resolution No. 2024-C43 4. Resolution No. 2024-C44 5. Resolution No. 2024-C45 Bill Text: CA SB329 | 2023-2024 | Regular Session | Chaptered California Senate Bill 329 Bill Title: Cities: city council members: compensation. Spectrum: Partisan Bill (Democrat 2-0) Status: (Passed) 2023-06-29 - Chaptered by Secretary of State. Chapter 27, Statutes of 2023. [SB329 Detail] Download: California-2023-SB329-Chaptered.html Senate Bill No. 329 CHAPTER 27 An act to amend Section 36516 of the Government Code, relating to local government. [ Approved by Governor June 29, 2023. Filed with Secretary of State June 29, 2023. ] LEGISLATIVE COUNSEL'S DIGEST SB 329, Dodd. Cities: city council members: compensation. Existing law authorizes a city council to enact an ordinance to provide each member of the city council a salary based upon the population of the city, as specified. Existing law authorizes that amount to be increased by the city council 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 ordinances. This bill would increase the maximum amount of salary, based upon the population of the city, that may be approved by an ordinance passed by the city council, as specified. The bill would authorize the salary of council members to be increased beyond the specified maximums to 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, or 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. The bill would require the city council to consider the adoption of an ordinance to increase council member compensation in open session during at least 2 regular meetings of the city council. Digest Key Vote: majority Appropriation: no Fiscal Committee: no Local Program: no Bill Text THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a)The compensation schedule for general law cities has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation. (b)Allowing cities to adjust their compensation for inflation since 1984 may help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families. SEC. 2. Section 36516 of the Government Code is amended to read: Attachment 1 36516. (a) (1) A city council may enact an ordinance providing that each member of the city council shall receive a salary based on the population of the city as set forth in paragraph (2). (2)The salaries approved by ordinance under paragraph (1) shall be as follows: (A)In cities up to and including 35,000 in population, up to and including nine hundred fifty dollars ($950) per month. (B)In cities over 35,000 up to and including 50,000 in population, up to and including one thousand two hundred seventy-five dollars ($1,275) per month. (C)In cities over 50,000 up to and including 75,000 in population, up to and including one thousand six hundred dollars ($1,600) per month. (D)In cities over 75,000 up to and including 150,000 in population, up to and including one thousand nine hundred dollars ($1,900) per month. (E)In cities over 150,000 up to and including 250,000 in population, up to and including two thousand five hundred fifty dollars ($2,550) per month. (F)In cities over 250,000 population, up to and including three thousand two hundred dollars ($3,200) per month. (3)For the purposes of this subdivision, the population of a city shall be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance. (4)The salary of council members may be increased beyond the amount provided in this subdivision by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not exceed the greater of either of the following: (A)An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted. (B)An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year. (5)No ordinance shall be enacted or amended to provide automatic future increases in salary. (b)Notwithstanding subdivision (a), at any municipal election, the question of whether city council members shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner. (c)Unless specifically authorized by another statute, a city council may not enact an ordinance providing for compensation to city council members in excess of that authorized by the procedures described in subdivisions (a) and (b). For the purposes of this section, compensation includes payment for service by a city council member on a commission, committee, board, authority, or similar body on which the city council member serves. If the other statute that authorizes the compensation does not specify the amount of compensation, the maximum amount shall be one hundred fifty dollars ($150) per month for each commission, committee, board, authority, or similar body. (d)Any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary under this section, provided that the same benefits are available and paid by the city for its employees. (e)Any amounts paid by a city to reimburse a council member for actual and necessary expenses pursuant to Section 36514.5 shall not be included for purposes of determining salary pursuant to this section. (f)A city council member may waive any or all of the compensation permitted by this section. (g)(1) For the purposes of this section, a city council shall consider the adoption of an ordinance to increase compensation in open session during at least two regular meetings of the city council. (2)At the first meeting, the city council shall present the proposed ordinance, which shall include findings demonstrating the need for the increased compensation. The ordinance shall not be adopted at the first meeting. (3)At least seven days after the first meeting, the city council shall hold a second meeting to consider whether to adopt the ordinance. 1 ORDINANCE NO. 2024-06 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, AMENDING SECTION 2-30 AND SECTION 2-31 OF THE AZUSA MUNICIPAL CODE RELATING TO CITY COUNCIL AND MAYOR’S COMPENSATION WHEREAS, Government Code Section 36516 (§36516) establishes limits on the amount of compensation that city council members may receive for their service as elected officials; and WHEREAS, Senate Bill 329 (SB 329), signed into law by Governor Gavin Newsom on June 29, 2023, increases the maximum base tiers for city council salaries, based upon the population of a municipality, that may be approved by a city council by an ordinance or amendment thereto; and WHEREAS, SB 329 acknowledges the compensation schedule for general law cities has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation; and WHEREAS, SB 329 further acknowledges that allowing cities to adjust their compensation for inflation since 1984 may help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families; and WHEREAS, on August 2, 1999, the City of Azusa City Council adopted Resolution No. 99-C101, reinstating a monthly salary of $400.00 for the Mayor and each City Council Member (collectively “City Council”), effective July 1, 1999; and WHEREAS, the time, commitment, and expense of serving on the City Council have increased, but the salaries for City Council Members have not been adjusted since 1999; and WHEREAS, as amended by SB 329, as of January 1, 2024, §36516 is amended to read: (a)(1) A city council may enact an ordinance providing that each member of the city council shall receive a salary based on the population of the city as set forth in paragraph (2). (2)The salaries approved by ordinance under paragraph (1) shall be as follows: (A)In cities up to and including 35,000 in population, up to and including nine hundred fifty dollars ($950) per month. Attachment 2 2 (B)In cities over 35,000 up to and including 50,000 in population, up to and including one thousand two hundred seventy-five dollars ($1,275) per month. (C)In cities over 50,000 up to and including 75,000 in population, up to and including one thousand six hundred dollars ($1,600) per month. (D)In cities over 75,000 up to and including 150,000 in population, up to and including one thousand nine hundred dollars ($1,900) per month. (E)In cities over 150,000 up to and including 250,000 in population, up to and including two thousand five hundred fifty dollars ($2,550) per month. (F)In cities over 250,000 population, up to and including three thousand two hundred dollars ($3,200) per month. (3)For the purposes of this subdivision, the population of a city shall be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance. (4)The salary of council members may be increased beyond the amount provided in this subdivision by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not exceed the greater of either of the following: (A)An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted. (B)An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year. (5)No ordinance shall be enacted or amended to provide automatic future increases in salary. (b)Notwithstanding subdivision (a), at any municipal election, the question of whether city council members shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner. (c)Unless specifically authorized by another statute, a city council may not enact an ordinance providing for compensation to city council members in excess of that authorized by the procedures described in subdivisions (a) and (b). For the purposes of this section, compensation includes payment for service by a city council member on a commission, committee, board, authority, or similar body on which the city council member serves. If the other statute that authorizes the compensation does not specify the amount of compensation, the maximum amount shall be one hundred fifty dollars ($150) per month for each commission, committee, board, authority, or similar body. 3 (d) Any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary under this section, provided that the same benefits are available and paid by the city for its employees. (e) Any amounts paid by a city to reimburse a council member for actual and necessary expenses pursuant to Section 36514.5 shall not be included for purposes of determining salary pursuant to this section. (f) A city council member may waive any or all of the compensation permitted by this section. (g) (1) For the purposes of this section, a city council shall consider the adoption of an ordinance to increase compensation in open session during at least two regular meetings of the city council. (2) At the first meeting, the city council shall present the proposed ordinance, which shall include findings demonstrating the need for the increased compensation. The ordinance shall not be adopted at the first meeting. (3) At least seven days after the first meeting, the city council shall hold a second meeting to consider whether to adopt the ordinance; and WHEREAS, the City Council first discussed adjusting City Council salaries at the regular meeting of the City Council on February 5, 2024; and WHEREAS, the City Council desires to adjust City Council salaries based upon the population of the City of Azusa as authorized by California Government Code section 36516; and WHEREAS, Section 36516 requires the population of a city be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance. Azusa’s population per the Federal Census Bureau is estimated at 48,272 as of July 1, 2023 and per the Department of Finance at 49,420 as of January 1, 2024; and WHEREAS, based on the City of Azusa’s population, Section 36516 provides a city council monthly salary amount of one-thousand two-hundred seventy-five dollars ($1,275); and WHEREAS, in accordance with California Government Code section 36516.5, the adjusted salaries will not take effect until one or more Council Members begins a new term of office following the November 2024 election; and WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 4 SECTION 1. Amendment to Section 2-30 of the Azusa Municipal Code. Section 2-30 (Compensation) of Division 1 (Generally) of Article II (City Council) of Chapter 2 (Administration) of the Azusa Municipal Code is hereby amended to read as follows: Sec. 2-30. - Compensation. Each member of the city council shall receive a salary of $1,275.00 per month, payable in accordance with City’s normal payroll cycle and practices, and subject to such change as may be provided by Government Code § 36516. SECTION 2. Amendment to Section 2-31 of the Azusa Municipal Code. Section 2-31 (Mayor’s Compensation) of Division 1 (Generally) of Article II (City Council) of Chapter 2 (Administration) of the Azusa Municipal Code is hereby amended to read as follows: Sec. 2-31. - Mayor's compensation. The mayor shall receive a salary of $1,275.00 per month, payable in accordance with City’s normal payroll cycle and practices, and subject to such change as may be provided by Government Code § 36516. SECTION 3. Effective Date of Salary Adjustment. Pursuant to California Government Code section 35616.5, the increased salary set forth in Sections 1 and 2 of this Ordinance shall go into effect and become payable for the Mayor and all City Council Members December 1, 2024 or on the first day of the first month as soon as the following criteria is met: 1) when one or more members of the City Council becomes eligible for a salary increase by virtue of a Council Member beginning a new term of office following the November 5, 2024 general municipal election and 2) when the November 5, 2024 election results are certified. SECTION 4. CEQA Compliance. This ordinance is exempt from the requirements of the California Environmental Quality Act (“CEQA”) under the State CEQA Guidelines because the proposed action as it is not a “project” and has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment as it imposes regulations for the conduct Attachment 1 of estate sales. Further, this ordinance is exempt from CEQA as there is no possibility that this ordinance or its implementation would have a significant effect on the environment. 14 Cal. Code Regs. § 15061(b)(3). SECTION 5. Severability. If any section, sentence, clause or phrase of this ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality does not affect other provisions or applications of this ordinance that can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. The City Council of the City of Azusa hereby declares that it would have adopted this ordinance and each section, sentence, clause, and phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases might be declared invalid or unconstitutional. SECTION 6. Effective Date. This Ordinance shall become effective thirty (30) days after its adoption by the City Council. 5 SECTION 7. Publication. The City Clerk shall certify to the adoption of this ordinance. Not later than 15 days following the passage of this ordinance, the ordinance, or a summary thereof, along with the names of the City Council members voting for and against the Ordinance, shall be published in a newspaper of general circulation in the City. PASSED, APPROVED AND ADOPTED by the City Council of the City of Azusa this 19th day of August, 2024 by the following vote: AYES: NAYS: ABSENT: ABSTAIN: ______________________________ Robert Gonzales, Mayor ATTEST: _________________________________ Jeffrey Lawrence Cornejo, Jr, City Clerk APPROVED AS TO FORM: ______________________________ Marco A. Martinez, City Attorney RESOLUTION NO. 2024-C43 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA REVISING THE SCHEDULE OF SALARY AND BENEFITS FOR CITY COUNCIL MEMBERS WHEREAS, on August 2, 1999, the City Council adopted Resolution No. 99-C101 setting the salaries for the Mayor and City Council Members and has not been updated in over 25 years; and WHEREAS, on July 16, 2012, the City Council adopted Resolution No. 12-C53 which identified the schedule of benefits for the Mayor and City Council Members; and WHEREAS, the City Council wishes to increase the salaries of the Mayor and City Council Members serving future terms to acknowledge inflation and the time commitments required of elected officials to serve the community; and WHEREAS, it would be beneficial to have one comprehensive document outlining all salary and benefits provided to the Mayor and City Council; and WHEREAS, adoption of this resolution will rescind in its entirety all previously adopted Resolutions which directly conflict here within. NOW THEREFORE BE IT RESOLVED that the City Council of the City of Azusa does hereby resolve the following: SECTION 1. Schedule of Salary and Benefits. The Schedule of Salary and Benefits attached hereto as Exhibit A shall go into effect and become payable for all City Council Members when 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 following the November 5, 2024 general municipal election. SECTION 2. Conflicting Resolutions. The provisions of this Resolution shall supersede any provisions in previously adopted Resolutions which directly conflict here within. ADOPTED AND APPROVED this 19th day of August 2024. ROBERT GONZALES, MAYOR I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Azusa at a regular meeting thereof on the 19th day of August 2024 by the following vote of Council: Attachment 3 AYES: CITY COUNCIL MEMBERS: NOES: CITY COUNCIL MEMBERS: ABSENT: CITY COUNCIL MEMBERS: JEFFREY LAWRENCE CORNEJO, JR, CITY CLERK EXHIBIT A “SCHEDULE OF SALARY AND BENEFITS FOR COUNCIL MEMBERS” 1. SALARY: The City shall provide the Mayor and each City Council Member a salary as set forth in Sections 2-30 and 2-31 of the Azusa Municipal Code, which is set as $1,275.00 per month, with the enactment of Ordinance XXXXX in accordance with Government Code § 36516. 2. AUTOMOBILE ALLOWANCE: The City shall provide the Mayor and each City Council Member an automobile allowance of three-hundred fifty dollars ($350.00) per month. This is a taxable benefit and excepted from the Compensation limits of Section 36516(a)(2) as authorized by California Government Code Section 1223. 3. FLEXIBLE BENEFIT PLAN: The City shall provide the Mayor and each City Council Member the same Flexible Benefit Plan and insurance coverage as executive management employees. Any unused portion of the Flexible Benefit Plan contribution shall not be paid as cash, but maybe deposited into a Health Reimbursement Account administered by the City, not to exceed IRS limits. 4. TECHNOLOGY: The City shall provide the Mayor and each Council Member the necessary technology devices to carry out city business. The device(s) shall be restricted to be used for City business only, and require return of the devices upon expiration of a Council Member’s term of office. 5. RETIREMENT: The Mayor and City Council Members elected after January 1, 2013 (“new members”) will have the option of enrolling in the California Public Employees Retirement System (CalPERS) 2% at 60 Benefit Plan, as provided for in Government Code section 7522.25(e), with a final compensation measurement period of 36 consecutive months as set forth in Government Code section 7522.32(a), and their retirement benefits shall be calculated based on "pensionable compensation" (Section 7522.10) rather than compensation earnable (Section 20636). In the 2% at 60 formula, City Council members will be required to pay a PERS contribution in an amount equal to 50% of the normal cost rate, up to a maximum of 8.00% of "compensation earnable" as defined in Government Code section 20636. Such contributions shall be made on a pre-tax basis. Council Members are vested after five (5) years of full-time service credit. 6. TERM LIFE POLICY: The City shall provide the Mayor and all City Council Members a term life insurance policy in the amount of $100,000 while serving on the City Council, with an additional Accidental Death & Dismemberment (AD&D) policy of $100,000 if injured in the line of duty. 7. MEDICARE TAX: The City is required by federal law to pay this tax for all employees except in limited circumstances. 8. WORKER’S COMPENSATION INSURANCE: The City is obligated to provide worker’s compensation insurance coverage for the Mayor and each City Council Member. CITY COUNCIL SCHEDULE OF SALARY AND BENEFITS Effective Date: December 1, 2024 or on the first day of the first month as soon as the following criteria is met: 1) when one or more members of the City Council becomes eligible for a salary increase by virtue of a Council Member beginning a new term of office following the November 5, 2024 general municipal election and 2) when the November 5, 2024 election results are certified. RESOLUTION NO. 2024-C44 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA REVISING THE SCHEDULE OF SALARY AND BENEFITS FOR ELECTED OFFICIALS (EXCLUDING THE MAYOR AND COUNCIL MEMBERS) WHEREAS, this Resolution applies to Elected Officials, excluding the Mayor and City Council Members; and WHEREAS, on August 2, 1999, the City Council adopted Resolution No. 99-C101 setting the salaries for Elected Officials and has not been updated in over 25 years; and WHEREAS, on July 16, 2012, the City Council adopted Resolution No. 12-C53 which identified the schedule of benefits for Elected Officials; and WHEREAS, the City Council wishes to increase the salaries of Elected Officials to acknowledge inflation and the time commitments required of elected officials to serve the community; and WHEREAS, it would be beneficial to have one comprehensive document outlining all salary and benefits provided to Elected Officials; and WHEREAS, adoption of this resolution will rescind in its entirety all previously adopted Resolutions which directly conflict here within. NOW THEREFORE BE IT RESOLVED that the City Council of the City of Azusa does hereby resolve the following: SECTION 1. Schedule of Salary and Benefits. The Schedule of Salary and Benefits attached hereto as Exhibit A shall go into effect and become payable for all Elected Officials (excluding the Mayor and City Council Members) effective December 1, 2024. SECTION 2. Conflicting Resolutions. The provisions of this Resolution shall supersede any provisions in previously adopted Resolutions which directly conflict here within. ADOPTED AND APPROVED this 19th day of August 2024. ROBERT GONZALES, MAYOR I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Azusa at a regular meeting thereof on the 19th day of August 2024 by the following vote of Council: Attachment 4 AYES: CITY COUNCIL MEMBERS: NOES: CITY COUNCIL MEMBERS: ABSENT: CITY COUNCIL MEMBERS: JEFFREY LAWRENCE CORNEJO, JR, CITY CLERK EXHIBIT A “SCHEDULE OF SALARY AND BENEFITS FOR ELECTED OFFICIALS” ELECTED OFFICIALS SCHEDULE OF SALARY AND BENEFITS 1. This Schedule does not govern salary and benefits for the Mayor and City Council Members. 2. SALARY: The City shall provide the following monthly salaries: City Clerk $x,xxx.xx City Treasurer $x,xxx.xx 3. FLEXIBLE BENEFIT PLAN: The City shall provide Elected Officials the same Flexible Benefit Plan and insurance coverage as executive management employees. Any unused portion of the Flexible Benefit Plan contribution maybe deferred to the City's deferred compensation plan, not to exceed IRS limits. 4. RETIREMENT: Those elected after January 1, 2013 (“new members”) will have the option of enrolling in the California Public Employees Retirement System (CalPERS) 2% at 60 Benefit Plan, as provided for in Government Code section 7522.25(e), with a final compensation measurement period of 36 consecutive months as set forth in Government Code section 7522.32(a), and their retirement benefits shall be calculated based on "pensionable compensation" (Section 7522.10) rather than compensation earnable (Section 20636). In the 2% at 60 formula, City Council members will be required to pay a PERS contribution in an amount equal to 50% of the normal cost rate, up to a maximum of 8.00% of "compensation earnable" as defined in Government Code section 20636. Such contributions shall be made on a pre-tax basis. Council Members are vested after five (5) years of full-time service credit. 5. TERM LIFE POLICY: The Elected Officials a term life insurance policy in the amount of $100,000 while serving on the City Council, with an additional Accidental Death & Dismemberment (AD&D) policy of $100,000 if injured in the line of duty. 6. MEDICARE TAX: The City is required by federal law to pay this tax for all employees except in limited circumstances. 7. WORKER’S COMPENSATION INSURANCE: The City is obligated to provide worker’s compensation insurance coverage for Elected Officials. Effective Date: December 1, 2024. RESOLUTION NO. 2024-C45 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA REVISING THE SCHEDULE OF SALARY AND BENEFITS FOR ELECTED OFFICIALS (EXCLUDING THE MAYOR AND COUNCIL MEMBERS) WHEREAS, on August 2, 1999, the City Council adopted Resolution No. 99-C101 setting stipend amounts for City of Azusa’s various boards and commissions; and WHEREAS, stipend amounts have not been updated since the 1980’s; and WHEREAS, in order to encourage members of the community to continue to serve on the City’s various boards and commissions in service to the community, the City Council wishes to increase stipend amounts to acknowledge inflation and the time commitments required of board members and commissioners; and WHEREAS, adoption of this resolution will rescind in its entirety all previously adopted Resolutions which directly conflict here within. NOW THEREFORE BE IT RESOLVED that the City Council of the City of Azusa does hereby resolve the following: SECTION 1. Boards and Commissions Stipends. Effective December 1, 2024, stipends for service on the City of Azusa’s various boards and commissions are set as follows: SECTION 2. Conflicting Resolutions. The provisions of this Resolution shall supersede any provisions in previously adopted Resolutions which directly conflict here within. ADOPTED AND APPROVED this 19th day of August 2024. ROBERT GONZALES, MAYOR I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Azusa at a regular meeting thereof on the 19th day of August 2024 by the following vote of Council: Board or Commission Stipend per Meeting Scheduled Meetings per Month Maximum per Month Cultural & Historic Preservation Commission 50.00$ 1 50.00$ Library Commission 50.00 1 50.00 Parks & Recreation 50.00 2 100.00 Personnel Board 75.00 2 150.00 Planning Commission 100.00 2 200.00 Attachment 5 AYES: CITY COUNCIL MEMBERS: NOES: CITY COUNCIL MEMBERS: ABSENT: CITY COUNCIL MEMBERS: JEFFREY LAWRENCE CORNEJO, JR, CITY CLERK