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G.10 GT_ City Council Salary_AllowancesOrdinance Establishing New City Council Salary, Vehicle and Technology Allowances April 26, 2022 City Council Goal # 5 Engage the Community by Participation” by allowing the City to ensure that City Council salaries and allowances are competitive such that it will encourage more citizens to participate in City governance. Proposed Ordinance for Introduction •Codify an Adjustment to the City Council Salary •Codify an Adjustment to the City Council Vehicle Allowance •Establish and Codify a New Technology Allowance City Council Salary Government Code Section 36516(a)(4) permits the City Council to increase the compensation above the amount set by Government Code Section 36516(a)(1), provided that “… the amount of the increase shall not exceed 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 …” City Council Salary •Last City Council salary adjustment took place in 2010 •The adjustment was from $150 to $300 per month •The calculation for the proposed adjustment is as follows: 2022 –2010 = 12 years 5% x 12 years = 60% 60% x $300 = $180 per council member $180 + $300 = $480 per council member •New adjusted amount $480 per month Allowances •Government Code section 36514.5 states: “City council members may be reimbursed for actual and necessary expenses incurred in the performance of official duties.” •State law contemplates reimbursement based on receipts of actual expenses rather than allowances. Reimbursement approach is safest and most conservative. Allowances •In 2010, the California Attorney General was presented with the following question: May a city provide a vehicle allowance to its city council members in lieu of reimbursing actual vehicle expenses after such expenses are incurred? •The Attorney General opined: “A city may provide a vehicle allowance to its city council members in lieu of reimbursing actual vehicle expenses after such expenses are incurred.” Allowances •“[T]he purpose of a vehicle allowance provided to city council members or other public officers is to realize administrative and other cost savings and efficiencies for the public.” •“[A] vehicle allowance is permissible only if travel expenses are authorized by statute, ordinance, or charter.” •“[T]he amount of the allowance must be reasonably related to what is required for the performance of an officer’s public duties.” Vehicle Allowance •Travel allowance will serve as reimbursement for expenses such as gasoline, mileage, wear and tear, insurance, and depreciation, incurred by Council Members in the use of their personal automobiles in the course of official duties. •Current amount is $200 per month •Proposed adjusted amount is $450 per month •The ordinance will formally codify this travel allowance in the Municipal Code as suggested in the Attorney General opinion. Technology Allowance •Ordinance also establishes a technology allowance which recognizes the effects of COVID- 19 and new necessity to utilize technology to serve in the role of a council member. •Technology allowance is an extension of the Attorney General opinion discussing travel allowances by relying on the same concepts. •Risk question: allowance versus reimbursement-based model? Technology Allowance •Proposed amount is $205.00 per month •Amount will serve as reimbursement for technology- related expenses such as: •Cellphone service •Internet service •Other similar costs incurred by Council Members in the use of their personal technology- related equipment and service in the course of official duties. Technology Allowance •Based upon research by staff: •The monthly internet service in the Grand Terrace is about $114.99 (Spectrum Internet). •Monthly cell phone service with Verizon is about $90.00 (not including device costs). •Monthly cellphone service cost with AT&T (unlimited) is about $105.00. •The $205.00 amount is based upon the Verizon monthly cellphone service cost. General Comments •The salary adjustment does not take effect until a new City Council member is seated which will likely be after the next election. •The two allowances will take effect on July 1, 2022 (start of the new fiscal year) •The ordinance provides that the City Manager shall place a discussion item on a City Council agenda during the City’s annual budget preparation cycle for the City Council to review and consider adjustments to City Council salary and allowances. Questions