HomeMy WebLinkAbout9/5/2007 - STAFF REPORTS - 3.A. ORDINANCE NO. 1716 (ls� Alternate)
AN ORDINANCE OF THE CITY OF PALM SPRINGS
AMENDING SECTIONS 1.01.110, 2.04.020, AND 2.04.021
OF THE PALM SPRINGS MUNICIPAL CODE MODIFYING
COMPENSATION FOR THE MAYOR AND MEMBERS OF
THE CITY COUNCIL.
CityAttorneV's Summate
Section 304 of the City Charter provides that the City Council
establishes its salary by ordinance. City Councilmember
salaries were last adjusted in June, 2000. This ordinance
adjusts salary for members of the City Council to $2,433 per
month and the salary of the Mayor to $3,650 per month.
This ordinance also provides a adjustment every two years
following a Municipal Election based on median
compensation paid to council members of charter cities in
the Coachella Valley.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS:
SECTION 1. Section 1.01.110 of the Palm Springs Municipal Code is amended
by adding in alphabetical order the following definition of "Council Median."
"Council Median" means an amount equal to the median of salary paid to council
members of charter cities in the Coachella Valley as of January 1 of each year
immediately following a year in which a regular municipal election is conducted,
rounded to the nearest one dollar.
SECTION 2. Section 2.04.020 of the Palm Springs Municipal Code is amended
to read:
2.04.020 Compensation of City Councilmembers.
Each member of the City Council shall receive a salary of two thousand four
hundred thirty-three dollars (S2,433.00) per month for each full month in office, or pro
rata portion thereof for a partial month in office. On January 1st of each year following a
municipal election, the salary shall be automatically adjusted to equal the Council
Median.
SECTION 3, Section 2.04.021 of the Palm Springs Municipal Code is amended
to read:
2.04.021 Compensation for Mayor
The Mayor shall receive a salary of three thousand six hundred fifty dollars
($3,650.00) per month for each full month in office, or pro rata portion thereof for a
partial month in office. On January 15t of each year following a municipal election, the
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Ordinance No. 1716
Page 2
salary shall be automatically adjusted to equal the Council Median plus fifty percent
(50%) of the Council Median.
SECTION 4. If any provision, clause, sentence, or paragraph of this Ordinance,
or the application thereof to any person or circumstances, shall be held invalid, such
invalidity shall not affect the other provisions of this Ordinance which can be given effect
without the invalid provision or application, and, to this end, the provisions of this
Ordinance are hereby declared to be severable.
SECTION 5. This Ordinance shall be in full force and effect thirty (30) days after
adoption. However, pursuant to Palm Springs City Charter Section 304, the increase in
the members of the City Council and of the Mayor's compensation as provided herein
shall not take effect until after the City Council declares the result of the November 6,
2007, General Municipal Election.
ADOPTED THIS DAY OF SEPTEMBER, 2007.
MAYOR
ATTEST:
City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do hereby
certify that Ordinance No. 1716 is a full, true, and correct copy, and was introduced at a
regular meeting of the Palm Springs City Council on September 5, 2007 and adopted at
a regular meeting of the City Council held on September 19, 2007, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
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Vt . CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 5, 2007 LEGISLATIVE
SUBJECT: PROPOSED ORDINANCE MODIFYING COMPENSATION FOR THE
MAYOR AND MEMBERS OF THE CITY COUNCIL, ELIMINATING
COMPENSATION PAID TO THE CITY COUNCIL FOR OTHER CITY
GOVERNING BOARDS AND COMMISSIONS, AND ESTABLISHING A
TWO-TIER SYSTEM FOR CITY COUNCIL RETIREE HEALTH BENEFIT
FROM: David H. Ready, City Manager
SUMMARY
The City Council will consider the recommendations of the City Council Compensation
Committee, increasing the salary for members of the City Council to $2,433 per month
($29,200 annually) and the Mayor to $3,650 per month ($43,800 annually), provide for a
CPI adjustment every two years following a municipal election; while eliminating
compensation paid to the City Council for other City governing agencies and authorities
(e.g. Community Redevelopment Agency, Finance Authority, Housing Authority) and
reduces the City's unfunded liability by establishing a two-tier system for retiree health
benefit provision, consistent with all employee bargaining units.
RECOMMENDATION:
1. Waive the reading of the ordinance text and re-introduce by title only.
2. Re-introduce on first reading Ordinance No. 1716, "AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF PALM SPRINGS AMENDING SECTIONS
I.01.110, 2.04.020 AND 2.04.021 OF THE PALM SPRINGS MUNICIPAL CODE
MODIFYING THE COMPENSATION FOR THE MAYOR AND MEMBERS OF
THE CITY COUNCIL."
3. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, REPEALING RESOLUTION NO.
21575, COMPENSATION FOR THE MEMBERS OF THE GOVERNING
BOARDS OF THE COMMUNITY REDEVELOPMENT AGENCY, THE.
ITEM NO.
City Council Staff Report
September 5, 2007- Page 2
Councilmember Compensation
FINANCING AUTHORITY AND THE HOUSING AUTHORITY, AMENDING
RESOLUTION NO. 21962 TO MODIFY THE CITY COUNCIL "RETIREE
HEALTH" BENEFIT TO A TWO-TIER STRUCTURE."
STAFF ANALYSIS:
As the previous Council compensation increase was approximately seven years ago;
during a discussion of the issue at the June 27, 2007 meeting, the City Manager was
directed to form a Compensation Committee to review Council Member compensation
and to make a recommendation(s) on the appropriate level of future compensation.
The first meeting of the Committee was convened on August 7, 2007 and included the
following members: Ms. Kay Hazen, local resident, Ms. Christine Hammond, Real
Estate Agent, Tarbell Realtors; Mr. Jim Lundin, Neighborhood Steering Committee,
Finance Chairman; Ms. Nannette Brenden, Vice President Human Resources, Canyon
National Bank; Ms. Sharon Lock, Retired Executive; Mr. Edward Torres, Chairman and
CEO, ESP, Inc. Staff members participating included myself and Tom Wilson, Assistant
City Manager for Development Services. Two additional meetings were held on August
14t and August 29t".
Members reviewed information and compensation data from various other jurisdictions.
The Committee concluded that the Council's compensation should be based upon a
formula that took into account a range of factors. For example, one particular variable
was the level of service provided by Palm Springs as compared to other Coachella
Valley cities. Palm Springs is the only jurisdiction that provides a full range of services
that includes police, fire, paramedics, 911 emergency communications, jail, airport,
tourism, convention center, sewer, library, golf, recreation, downtown, an animal shelter,
etc. Arguably, this larger range of services requires a higher level of legislative activity.
Other jurisdictions either contract for these services or do not include them as part of
their service portfolio. Additionally, Palm Springs is the only city with a downtown
casino, International Film Festival and a formalized neighborhood organization
structure.
At the conclusion of the third meeting, the Committee nominated a recommendation for
Council compensation which included the "median" calculation of Coachella Valley
Charter Cities with a $14,600 higher salary for the directly elected Mayor which
maintains a compensation salary difference between Mayor and Council. Hence, the
City of Palm Desert remains the highest compensated City Council within this universe
of jurisdictions at $3,500 monthly, Indian Wells and Rancho Mirage follow at $2,500
monthly with Palm Springs Council comparing at $2,433 monthly.
City Council Staff Report
September 5, 2007- Page 3
Councilmember Compensation
Additional Committee recommendations included the following:
• Elimination of other Council stipends (e.g. CRA, Financing Authority, Housing
Authority), which result in a savings of approximately $21,750 annually
• Two-tier retiree health insurance coverage (consistent with other bargaining unit
benefit reductions), resulting in significant future unfunded liability savings
• Cost of living increases following Council election cycles
• Vehicle provided for the Mayor should be "hybrid/alternative energy"
FISCAL IMPACT:
The recommended median annual salary for Council Members of $29,200 and $43,800
for the Mayor will require additional salary costs for fiscal year 2007-08 in the amount of
$67,807 (including benefits) net of the estimated reduction of compensation currently
paid as other Agency/Authority members of the City. Anticipated salary savings on a
city-wide basis will be sufficient to offset the increased compensation this fiscal year.
The full annual cost in the next fiscal year will be approximately $111,016 (including
benefits).
Conversely, cost savings will accrue to the city in the amount of approximately $21,750
annually by eliminating Agency/Authority meeting stipends for Council Members.
Additionally, significant savings will be realized over time as a result of the two-tier
retiree health benefit which reduces the City's long term unfunded liability.
David H. Ready, Esq., Ph.D.,
City Manager
Attachments:
Proposed Ordinance
Proposed Resolution
GIBBOUS
ORDINANCE NO. 1716
AN ORDINANCE OF THE CITY OF PALM SPRINGS
AMENDING SECTIONS 1.01.110, 2.04.020, AND 2.04.021
OF THE PALM SPRINGS MUNICIPAL CODE MODIFYING
COMPENSATION FOR THE MAYOR AND MEMBERS OF
THE CITY COUNCIL,
CityAttorney's Summary
Section 304 of the City Charter provides that the City Council
establishes its salary by ordinance. City Councilmember salaries
were last adjusted in June, 2000- This ordinance adjusts salary for
members of the City Council to $2,433 per month and the salary of
the Mayor to $3,650 per month. This ordinance also provides a CPI
adjustment every two years following a Municipal Election.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS:
SECTION 1. Section 1.01.110 of the Palm Springs Municipal Code is amended
by adding in alphabetical order the following definition of "Consumer Price Index" or
"CPI:"
"Consumer Price Index" or "CPI" means the consumer price index for all urban
consumers (CPI-U) for the San Bernardino-Palm Springs Metropolitan Area (published
by the Bureau of Labor Statistics, U.S. Department of Labor), or such other index as the
expressly provided in this Code or as the Council may specify by resolution, to the
nearest one dollar.
SECTION 2. Section 2,04.020 of the Palm Springs Municipal Code is amended
to read:
2.04.020 Compensation of City Councilmembers.
Each member of the City Council shall receive a salary of two-thousand four
hundred thirty-three dollars ($2,433.00) per month for each full month in office, or pro
rata portion thereof for a partial month in office. On January 1 st of each year following a
municipal election, the salary shall be automatically adjusted by an amount equal to the
percentage of increase in the Consumer Price Index for the previous twenty four month
period.
SECTION 3. Section 2.04.021 of the Palm Springs Municipal Code is amended
to read:
2.04.021 Compensation for Mayor
The Mayor shall receive a salary of three-thousand six hundred fifty dollars
($3,650.00) per month for each full month in office, or pro rata portion thereof for a
partial month in office. On January 1st of each year following a municipal election, the
a09007±
Ordinance No. 1716
Page 2
salary shall be automatically adjusted by an amount equal to the percentage of increase
in the Consumer Price Index for the previous twenty four month period.
SECTION 4. If any provision, clause, sentence, or paragraph of this Ordinance,
or the application thereof to any person or circumstances, shall be held invalid, such
invalidity shall not affect the other provisions of this Ordinance which can be given effect
without the invalid provision or application, and, to this end, the provisions of this
Ordinance are hereby declared to be severable.
SECTION 5. This Ordinance shall be in full force and effect thirty (30) days after
adoption. However, pursuant to Palm Springs City Charter Section 304, the increase in
the members of the City Council and of the Mayor's compensation as provided herein
shall not take effect until after the City Council declares the result of the November 6,
2007, General Municipal Election.
ADOPTED THIS DAY OF SEPTEMBER, 2007.
MAYOR
ATTEST:
City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do hereby
certify that Ordinance No. 1716 is a full, true, and correct copy, and was introduced at a
regular meeting of the Palm Springs City Council on September 5, 2007 and adopted at
a regular meeting of the City Council held on September 19, 2007, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, REPEALING
RESOLUTION NO. 21575, COMPENSATION FOR THE
MEMBERS OF THE GOVERNING BOARDS OF THE
COMMUNITY REDEVELOPMENT AGENCY, THE
FINANCING AUTHORITY AND THE HOUSING
AUTHORITY, AMENDING RESOLUTION NO. 21962 TO
MODIFY THE CITY COUNCIL 'RETIREE HEALTH"
BENEFIT TO A TWO-TIER STRUCTURE.
WHEREAS, the City Council desires to modify the manner in which
Councilmembers are compensated as members of other City boards; and
WHEREAS, the City Council wishes to clarity the retiree health benefits for the
Mayor and members of the City Council.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Resolution No. 21575 establishing compensation for the members of the
governing boards of the Community Redevelopment Agency of the City of Palm
Springs, the City of Palm Springs Financing Authority, and the Housing Authority of the
City of Palm Springs, is hereby repealed and will no longer be in force or effect, as of
December 1, 2007.
SECTION 2. The following is added to Subsection 3(A) to Resolution No. 21962:
"Any Councilmember, who is first elected or appointed after December 1, 2007,
shall not receive nor shall be eligible for a City contribution for retiree health
benefits other than for any mandatory CalPERS costs. The City will, however,
make a $50.00 per month contribution to an employee Retiree Health Savings
Plan and the associated fixed dollar cost of administration for such."
ADOPTED THIS 51h DAY OF SEPTEMBER, 2007.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
Resolution No.
Page 2
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE. ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on September 5, 2007, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California