Loading...
HomeMy WebLinkAboutF-3 Staff Report - Second Reading Ordinance No. 2024-06 City Council CompensationSECOND READING ORDINANCES ITEM F-3 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: SEPTEMBER 16, 2024 SUBJECT: SECOND READING AND ADOPTION – AMENDING SECTION 2-30 AND SECTION 2-31 OF THE AZUSA MUNICIPAL CODE RELATING TO CITY COUNCIL AND MAYOR’S COMPENSATION 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. 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. On August 19, 2024 the City Council introduced the first reading to amend Section 2-30. Compensation and Section 2-31. Mayor’s Compensation of the Azusa Municipal Code, setting salaries for City Council members and Mayor. Approved City Council September 16, 2024 Second Reading Ordinance 2024-06, City Council and Mayor Compensation September 16, 2024 Page 2 The recommended action adopts Ordinance No. 2024-06, amending Section 2-30. Compensation and Section 2-31. Mayor’s Compensation of the Azusa Municipal Code. RECOMMENDATION: Staff recommends the City Council take the following action: 1) Read by title only, Second Reading and Adoption Ordinance No. 2024-06. ANALYSIS: On February 5, 2024 staff presented to the City Council recent changes in law which governs city council and mayor compensation. On August 19, 2024, City Council performed a first reading, and approved for second reading, Ordinance No. 2024-06, increasing the monthly salary of all City Council members and the Mayor from $400 to $1,275 in accordance with the allowable salary amount for Azusa’s population. Pursuant to California Government Code section 35616.5, the increased salary set forth in Sections 1 and 2 of the 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. 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 ordinance would result in a FY 2024/25 budget amendment of $34,664.35. Prepared by: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachment: 1. Ordinance 2024-06 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 1 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