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RECOMMENDATIONS OF THE CITY COUNCIL SALARY SETTING COMMISSION TO ADOPT AN ORDINANCE AMENDING TITLE 2, CHAPTER 2.08 OF THE STOCKTON MUNICIPAL CODE TO SET THE SALARIES FOR THE STOCKTON CITY COUNCIL TO $26,694, WITH NO BENEFITS, BEGINNING JANUARY 1, 2019 IN ACCORDANCE WITH ARTICLE IV, SECTION 410 OF THE CITY CHARTER
recommended action
RECOMMENDATION
It is recommended that the City Council approve the recommendations of the City Council Salary Setting Commission and adopt an ordinance setting the City Council’s annual salary at $26,694, with no benefits, effective January 1, 2019.
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Summary
This item was continued from April 17, 2018, City Council meeting after the attending City Council did not approve the City Council Salary Setting Commission (Commission) recommendation with a vote of 3-2.
As previously reported, the Commission convened on January 11, 2018, to begin reviewing and discussing the Council’s salary and benefits pursuant to the City of Stockton Charter, Article IV, Section 410. The Commission met again on January 25, 2018 and after reviewing additional information, requested a Public Hearing that was held on February 22, 2018. Another Public Hearing was held on March 21, 2018, at which time Commission voted 4-1 to recommend adjusting the Council’s salary from $16,529.04 to $26,694 with no benefits (Attachment A - Salary Setting Commission Recommendation Memo).
DISCUSSION
Background
Since the Commission’s inception in 2000, it has convened 12 times to make recommendations on Mayor and Councilmember salaries and benefits. Recently in 2015, the Commission recommended to maintain the Councilmembers’ annual salary amount of $23,927 and add benefits consistent with the terms provided to the Mayor, which includes medical, dental, and vision. Despite the Commission’s recommendation, the City Council voted to decrease Councilmembers’ annual salary to $16,529.04, and provide no benefits, to align with salary decreases for the Mayor at the time.
Currently, the City Charter, Article IV, Section 410 requires the Commission to adopt a biennial recommendation for Councilmember salary and benefits after having held at least one Public Hearing and to submit the recommendation to the City Council for final action. Specifically, between March 1st and April 30th of every even-numbered year, the Council Salary Setting Commission shall recommend to the Council the amount of monthly salary and benefits that it deems appropriate for the members of the Council effective January 1st of the next year.
Present Situation
This item was previously placed on April 17, 2018, City Council agenda to review and approve the Commission’s recommendation of providing City Councilmembers with an annual salary of $26,696.75 with no benefits. Although two Councilmembers were absent from the meeting, the Mayor and four Councilmembers were present to discuss and vote on the recommendation. With a vote of 3-2, the recommendation was not approved. Subsequently, the Council approved a motion with a vote of 4-1 to continue the matter to the next available Council meeting for further review and discussion.
As required by the City Charter, the Commission convened on January 11, 2018, to begin reviewing and discussing the Council’s salary and benefits. The Commission met again on January 25, 2018, to review the requested information and after further discussion developed a tentative recommendation. As such, the Commission requested staff to schedule a Public Hearing, which was held on February 22, 2017. With only four Commissioners in attendance at the Public Hearing on February 22, 2017, the Commission was unable to approve its tentative recommendation with a split vote. Another Public Hearing was held on March 21, 2018, with the full Commission and after further discussion, a recommendation was approved as outlined below.
During each of the meetings, with the exception of the March 21, 2018, Public Hearing, the Commission requested a variety of information from the Human Resources Department to help make a recommendation. This information included Council salary and job description information for comparator cities, consumer price index information, median housing price information and unemployment rates for comparator cities, Stockton employee salary and cost of living adjustment information, and detailed information about Stockton City Council roles and responsibilities. The Commission also heard and considered public comment on the topic and discussed additional information that each Commission member felt was important to make a recommendation.
On March 21, 2018, the Commission concluded its review, finding that it had adequately evaluated requested information and public comment, and had enough information to make a recommendation on Councilmember salary and benefits. The Commission voted 4-1 to recommend an annual salary of $26,694 with no benefits. The Commission’s approved recommendation closely matches the prior recommendation in 2015 and is a fair representation of current market information for other comparator agencies with part-time Councilmembers.
In accordance with the City Charter, the City Council has the option of either approving the recommendation by adopting the proposed ordinance (Attachment B - Proposed Ordinance - Redline) or approving a lower amount, but in no event may the Council increase the recommended amount. The amount recommended for each Councilmember must be the same.
FINANCIAL SUMMARY
Restoring each of the six Councilmember’s salary from $16,529.04 to $26,694, with no benefits other than Medicare and workers compensation insurance, will increase the City’s budget by $60,989.76 annually ($10,164.96 per Councilmember). If approved and implemented effective January 1, 2019, the additional cost to restore Councilmember salaries to this level for Fiscal Year 2018-19 will be $30,494.88 and can be incorporated into the FY 2018-19 Annual Budget and the City’s Long Range Financial Plan.
Attachment A - Salary Setting Commission Recommendation Memo
Attachment B - Proposed Ordinance - Redline