HomeMy WebLinkAbout14 BALLOT MEASURE PROPOSAL RE ELIMINATION OF COUNCIL MEMBER COMPENSATION• A ends Item 14
AG E ~ DA REPORT Reviewed:
City Manager : _ .
Finance Director NtA
MEETING DATE: October 18, 2011
TO: WILLIAM HUSTON, INTERIM CITY MANAGER
FROM: DAVID E. KENDIG, CITY ATTORNEY
SUBJECT: BALLOT MEASURE PROPOSAL RE ELIMINATION OF COUNCIL MEMBER
COMPENSATION
SUMMARY
The Tustin City Code presently provides that certain types of compensation, including salary and
some benefits, are provided to City Council members. At its meeting of October 4, 2011, the
Council directed the City Attorney to return with a possible ballot measure for the Council's
consideration which, if approved by the voters, would eliminate all forms of City Council
compensation to the extent permitted by State law.
This agenda report includes a discussion of the procedure to place a ballot measure before the
voters to repeal City Council compensation, and a discussion of existing State law limitations
regarding changes in Council compensation. In addition, a sample resolution and ordinance
placing on the ballot the specific question of repeal of such compensation is attached to this report
for Council consideration.
RECOMMENDATION
Review, consider and provide further direction to City staff.
FISCAL IMPACT
There will be ballot election processing costs associated with this matter. There would be a
reduction of future city expenditures for City Council monthly salary and related benefits (medical
and dental plan payments, life insurance costs, and retirement costs) if the voters adopt the
proposed ordinance at a city election.
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DISCUSSION
I. Repeal of City Council Salary and Benefits By Ballot Election Process:
Existing Compensation.
Presently, City Council members receive a monthly salary of $853.11 per month pursuant to City
Code section 1303. In addition, City Code section 1308 provides additional Council compensation
as follows:
- Section 1308a: Council member allowed to enroll in the city medical plan,
with a city contribution to that plan;
- Section 1308b: Council member allowed to enroll in city dental plan, with
a monthly contribution paid by City;
- Section 1308c: Council member provided life insurance with death
benefit limited to 100% of employee's base salary.
- Section 1308d: Council members become members of CalPers for
retirement purposes and are subject to rules of City/CalPers contract.
2. Ballot Measure Procedural Rules.
California Government Code section 36516 and Elections Code section 9222 permit the placement
of a ballot measure on a city election ballot for the purpose of amending or repealing council
member salaries.
Elections Code section 9222 authorizes the City Council to place a ballot measure before the
voters for the repeal, amendment of enactment of any ordinance at a succeeding regular or special
city election. Such a proposition would be approved by a simple majority vote of the voters. The
election on the matter must be held not less than 88 days after the date of the order of the election.
A City Council initiated ballot ordinance which is adopted by a majority vote of the electorate would
take legal effect 10 days after the vote is declared and certified by the City Council. (Elections
Code section 9217.)
If approved, a voter adopted ordinance may only be changed by the voters at a subsequent
election unless the adopted ordinance provides for an alternate amendment procedure. (Elections
Code section 9217.)
3. Effective Date of Changes in Council Compensation.
A. Salary.
Government Code section 36516{b) provides that "... 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"
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Ballot Measure re Elimination of Council Compensation
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at any municipal election. However, Government Code section 36516.5 further provides that "a
change in compensation does not apply to a councilman during his term of office..."'
Therefore, if the voters enact an ordinance altering compensation, that change would be effective
only on a prospective basis; that is, the change would affect any new Council member when his or
her term begins, and would affect each incumbent member at the beginning of his or her next new
term.
B. Council Member Benefits.
California Government Code sections 53200-53210 generally provide that a city council may grant
health and welfare benefits to council members as long as they are no more generous than those
provided to non-safety employees. As noted above, the Attorney General has opined that the
enactment of an ordinance reducing or repealing such benefits contractually provided to council
members is legally effective only when a new or incumbent member of the Council begins a new
term.
The retirement benefits available to Council members under PERS presents a slightly different
contractual situation, however. Under the existing CaIPERS agreement, the existing Council
members affirmatively decided whether to enroll in PERS, and once that occurred, they may not
opt out of the retirement system unless there is an actual break in government service with the
City. Therefore, repeal of PERS benefits for Council members by voter adoption of an ordinance
would only apply to new council members not presently enrolled in the system.
Under the State PERS system, the City Council may amend its contract with PERS to exclude
groups of employees such as, for example, Council members. As a result, eliminating future
council member's participation in PERS would require a contract amendment with CaIPERS and
would have to include all elected City officials. Again, however, the elimination of PERS benefits
would not be effective with respect to existing Council members currently covered by PERS.
4. Ballot. Measure Resolution and Draft Ordinance.
The City Attorney has prepared a draft City Council resolution proposing the requested ballot
question to the voters. As drafted, the ballot question would ask whether the voters wish to
approve an ordinance repealing all council member salary and related benefits consistent with
state law.
More specifically, Section 1 of the Resolution sets forth the ballot question as follows:
"Shall an ordinance be adopted repealing Tustin City Code sections 1303 and
1308{a)-{d), to eliminate City Council member monthly salary and City Council
compensation consisting of participation in the City medical, dental, life insurance
programs, and retirement benefits?"
The attached sample ordinance, if approved by the voters, would provide for the express repeal of
Council salary and benefits in accordance with applicable state law.
Government Code Section 36516 provides that any ordinance changing compensation may
not take legal effect during a councilmember's current term. Further, the Attorney General has opined that
decreases in salary or other compensation benefits cannot be applied to a seated councilmember during that
person's current term of office. (80 Ops. of Atty. General 119 (1997}}.
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11. COMPARISON -COUNCIL COMPENSATION DATA
City staff has compiled data about current compensation and categories of benefits provided to
council members in each city in Orange County. The compiled information is set forth in
Attachment B to this report. As that report details, total council member compensation (including
the value of benefits received) ranges from a low of $0 (Villa Park) to a high of $50,669.40 annually
(Irvine).
Attachments:
A. Proposed Resolution
A-1 Ordinance
B. Comparison data -council compensation at other Orange County cities
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ATTACHMENT A
RESOLUTION NO. 11-76
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA: (1) ORDERING THAT A BALLOT
MEASURE BE PLACED ON THE NOVEMBER 6, 2012
GENERAL ELECTION BALLOT FOR THE PURPOSE OF
SUBMITTING A PROPOSED ORDINANCE TO THE
ELECTORATE ELIMINATING CITY COUNCIL
COMPENSATION, (2) CALLING AND GIVING NOTICE OF
A GENERAL MUNICIPAL ELECTION TO BE HELD ON
TUESDAY, NOVEMBER 6, 2012, (3) REQUESTING THE
COUNTY OF ORANGE BOARD OF SUPERVISORS TO
CONSOLIDATE THE GENERAL MUNICIPAL ELECTION
WITH THE STATEWIDE GENERAL ELECTION, (4)
AUTHORIZING THE COUNTY OF ORANGE ELECTION
DEPARTMENT TO CANVASS THE ELECTION RETURNS,
AND (5) PROVIDING FOR EXPENSES OF THE
ELECTION.
The City Council of the City of Tustin does hereby resolve as follows:
The City Council finds and determines as follows:
A. Members of the City Council presently receive a salary of $853.11 per
month, and are entitled to participate in the City's health and dental plans, life insurance,
and retirement plan provided contractually through the Public Employees Retirement
System (PERS) pursuant to Tustin City Code sections 1303 and 1308, and
B. The City Council finds and determines that it is appropriate to place the
question to the City's electorate whether these compensation benefits should be
continued for elected City Council members, and
C. Government Code section 36516 permits the question of salary
compensation to be placed before city voters, and
D. Elections Code section 9222 generally permits the City Council to put
issues of legislative actions before city voters,
11. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF TUSTIN:
SECTION 1. That pursuant to the requirements of Government Code section
56516 and 9222, a General Municipal Election be held on November 6, 2012, for the
purpose of presenting a ballot measure to the electorate of the City of Tustin.
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SECTION 2. That the following ballot measure question shall be presented to
City voters:
"SHALL AN ORDINANCE BE ADOPTED REPEALING TUSTIN YES
CITY CODE SECTIONS 1303 AND 1308(A)-(D), TO ELIMINATE
CITY COUNCIL MEMBER MONTHLY SALARY AND
CITY COUNCIL COMPENSATION CONSISTING OF NO
PARTICIPATION IN THE CITY MEDICAL, DENTAL INSURANCE,
LIFE INSURANCE PROGRAMS, AND RETIREMENT BENEFITS?"
SECTION 3: That the County of Orange Board of Supervisors is hereby requested
to order consolidation of the General Municipal Election with the Statewide General
Election on November 6, 2012, and to issue instructions to the County of Orange Election
Department to take any and all steps necessary for the holding of the consolidated
election.
SECTION 4. The full text of the proposed ordinance repealing City Council
compensation is attached hereto as Exhibit A-1.
SECTION 5. That the ballots to be used at the election shall be in the form and
content as required by law;
SECTION 6. That notice of the time and place of the holding of the election ballot
matter shall be given in accordance with State and local law, and the City Clerk is
authorized, instructed, and directed to give any further or additional notice of the
election, in time, form, and manner as required by law.
SECTION 7. That pursuant to Elections Code section 9282, direct arguments in
favor of and arguments against (not to exceed 300 words) the proposed measure may
be submitted to the City Clerk for transmittal to the County Elections Department;
SECTION 8. Rebuttal arguments are authorized pursuant to Elections Code
section 9285.
SECTION 9. That pursuant to Elections Code section 9280 the City Clerk is
directed to transmit a copy of the initiative measure to the City Attorney and the City
Attorney is hereby directed to prepare an impartial analysis of the initiative measure
showing the effect of the measure, and shall submit such analysis to the City Clerk for
transmittal to the County Elections Department.
SECTION 10. That the County Elections Department is authorized to canvass
the returns of the election hereby, and that the election shall be held in all respects as if
there were only one election, and only one form of ballot shall be used.
SECTION 11. That the City Clerk is hereby directed to file a certified copy of this
Resolution with the Board of Supervisors and the County Election Department of the
County of Orange.
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SECTION 12: That the City Council acknowledges and agrees to payment of the
expenses of the election, excluding a separate sample ballot.
SECTION 13: That the Office of the City Clerk is hereby directed to file a certified
copy of this Resolution with the County of Orange Board of Supervisors and the County of
Orange Election Department.
SECTION 14. That the City Clerk shall certify to the passage and adoption of
this Resolution and enter it into the book of original Resolutions.
PASSED AND ADOPTED at a regular meeting of the City Council held on the
day of , 2011.
JERRY AMANTE,
Mayor
Al°TEST:
PAMELA STOKER,
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
1, 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 Resolution No. 11-76 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the th day
of , 2011 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
PAMELA STOKER,
City Clerk
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ATTACHMENT A-1
AN ORDINANCE OF THE CITY OF TUSTIN REPEALING
TUSTIN CITY CODE SECTIONS 1303 AND 1308(a)-(d)
RELATING TO CITY COUNCIL SALARY AND BENEFITS
The people of the City of Tustin hereby ordain as follows:
Section 1. Repeal of City Council Salary and Benefits.
Tustin City Code sections 1303 "Compensation of Members" and 1308 "Benefits
of Members" are hereby repealed in their entirety, consistent with all applicable
provisions of state law.
In the case of retirement benefits, the City Council shall take such administrative
contractual action with the California State Public Employment Retirement System
necessary to implement this ordinance.
City Council members shall not receive any other salary or compensation for
attendance at other City boards or commissions.
Section 2. Effective Date.
This ordinance shall take legal effect pursuant to Elections Code section 9217.
The repeal of City Council salary and benefits shall be effective only with respect to: (1 }
new council members upon taking office, and (2) each current incumbent City Council
member at the commencement of his or her next term of office.
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ATTACHMENT B
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