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HomeMy WebLinkAbout16 AMENDING COMPENSATION & BENEFITS TO COUNCIL MEMBERSAgenda Item 16 • Reviewed: AGENDA REPORT City Manager ~~,• ~~ Finance Director MEETING DATE: JUNE 15, 2010 TO: WILLIAM HUSTON, CITY MANAGER FROM: KRISTI RECCHIA, DIRECTOR OF HUMAN RESOURCES SUBJECT: INTRODUCTION OF ORDINANCES AMENDING COMPENSATION AND BENEFITS PROVIDED TO CITY COUNCIL MEMBERS SUMMARY Adoption of the attached Ordinances will amend compensation and benefits provided to members of the City Council pursuant to Council direction. RECOMMENDATION tt is recommended that the City Council introduce by title only and waive reading of the following Ordinances: 1. Ordinance No. 1383 amending the compensation and benefits provided to Council Members; and 2. Ordinance No. 1384 amending the compensation provided to Council Members for serving as members of the Community Development Commission. FISCAL IMPACT Cost savings of approximately $24,000 over the 2010-11 fiscal year (up to $71,500 over a full year). BACKGROUND AND DISCUSSION After significant reductions to the compensation and benefits of other City employees, the City Council has proposed reducing the level of compensation and City-paid benefits provided to the Council Members themselves. Specifically, the Council has directed staff to prepare an Ordinance reducing the salary of Council Members by 10% and capping the City's contribution to Council Members' medical insurance at the cost of the PERS Choice plan for the tier selected by the Council Member (i.e. employee only, employee plus one dependent, or employee plus two or more dependents). City Council Members also serve as members of the Community Development Commission, the governing body of the Redevelopment Agency. Council Members currently receive $75 for each Redevelopment Agency meeting attended in addition to City Council Agenda Report June 15, 2010 Introduction of Ordinances Amending Compensation and Benefits Provided to City Council Members Page 2 the compensation received for serving on the City Council. Since the City Council now holds joint meetings with the Redevelopment Agency, the City Council is proposing to eliminate the $75 per meeting Redevelopment Agency stipend. The attached Ordinances follow the City Council's direction for reducing the amount of compensation and benefits provided to Council Members. Y~~uxi~i f~° ~~,~rc~- Kristi Recchia Director of Human Resources Attachments: 1. City Council Ordinance No. 1383 2. City Council Ordinance No. 1384 ORDINANCE NO. 1383 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING SECTION 1303 OF THE TUSTIN CITY CODE RELATING TO CITY COUNCIL COMPENSATION AND ADDING SECTION 1308 RELATING TO CITY COUNCIL BENEFITS The City Council of the City of Tustin, California hereby ordains as follows: Section 1. Section 1303 of the Tustin City Code is amended to read: 1303 -COMPENSATION OF MEMBERS Members of the City Council shall be paid and receive as compensation a salary of eight hundred and fifty-three dollars and eleven cents ($853.11) per month. Section 2. Add Section 1308 to the Tustin City Code to read: 1308 -BENEFITS OF MEMBERS Members of the City Council shall be provided with the following City-paid benefits: a. Medical insurance Each City Council Member may enroll in any City-sponsored group medical insurance plan and at any available tier. The City's maximum monthly contribution toward the premium cost for each Council Member's plan shall be capped at the cost of the PERS Choice plan for the tier selected by that Council Member. The balance of any monthly contributions necessary to enroll in a higher-cost plan than the PERS Choice plan shall be paid by the Council Member. b. Dental insurance Council Members may enroll in any City-sponsored group dental insurance plan, with the full contribution paid by the City. c. Life insurance The City will provide life insurance for each Council Member and pay the required premiums. The death benefit of the policy shall be one hundred percent (100%) of the employee's base annual salary to the nearest multiple of $1,000. Ordinance No. 1383 Page 1 of 3 d. Retirement The City has contracted with the California Public Employees' Retirement System (CaIPERS) for retirement benefits. Council Members shall be members of CaIPERS and are subject to all applicable provisions of the City's contract with CaIPERS. The CaIPERS plan in effect for Miscellaneous employees is the 2% @ 55 formula for Local Miscellaneous members. The City's required contribution to CaIPERS includes both an employer and employee contribution. The employee contribution is 7% of an employee's wages; Council Members will contribute the full amount of the employee contribution through a payroll deduction. Section 3. The provisions of Section 1 of this Ordinance (amending Section 1303 of the Tustin City Code) shall become effective on September 1, 2010. The provisions of Section 2 of this Ordinance (adding Section 1308 to the Tustin City Code) shall become effective on January 1, 2011. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 6th day of July 2010. JERRY AMANTE Mayor ATTEST: PAMELA STOKER City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) Ordinance No. 1383 Page 2 of 3 I, Pamela Stoker, City Clerk and ex-officio California, do hereby certify that the whole the City of Tustin is five; that the above passed and adopted at a regular meeting o July 2010, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER City Clerk Clerk of the City Council of the City of Tustin, number of the members of the City Council of and foregoing Ordinance No. 1383 was duly f the Tustin City Council, held on the 6th day of Ordinance No. 1383 Page 3 of 3 ORDINANCE NO. 1384 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING SECTION 9503 OF THE TUSTIN CITY CODE RELATING TO COMPENSATION AND EXPENSES OF MEMBERS OF THE TUSTIN COMMUNITY DEVELOPMENT COMMISSION The City Council of the City of Tustin, California hereby ordains as follows: Section 1. Section 9503 of the Tustin City Code is amended to read: 9503 -COMPENSATION AND EXPENSES OF MEMBERS Members of the City Council shall receive no additional compensation for serving as members of the Community Development Commission. However, members shall receive their actual and necessary expenses, including travel, incurred in the discharge of their duties as members of the Commission. Section 2. The provisions of Section 1 of this Ordinance (amending Section 9503 of the Tustin City Code) shall become effective on September 1, 2010. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 6t" day of July 2010. JERRY AMANTE Mayor ATTEST: PAMELA STOKER City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) Ordinance No. 1384 Page 1 of 2 I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Ordinance No. 1384 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 6t" day of July 2010, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER City Clerk Ordinance No. 1384 Page 2 of 2