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HomeMy WebLinkAboutElimination of Council Compensation - Modifies Municipal Cod PROOFOF PUBLICATION STATE OF CALIFORNIA) ) SS. CITY OF HUNTINGTON COUNTY OF ORANGE ) BEACH LEGAL NOTICE ORDINANCE NO.3956 I am a citizen of the United States and a AdonAUGUpted by tTe(ityO2Council on AUGUST R0;2012 resident of the County of Los Angeles; "AN ORDINANCE OF THE am over the age of eighteen years, and CITY OF HUNTINGTON BEACH, AMENDING not a party to or Interested In the notice CHAPTER 2.28 OF THE HUNTINGTON BEACH published. I am a principal clerk of the MUNICIPAL CODE RE- LATING TO CITY COUN-, HUNTINGTON BEACH CIL COMPENSATION° SYNOPSIS: INDEPENDENT, which was adjudged,a ADOPTION OF THIS OR- DINANCE REDUCES CITY newspaper of general circulation on COUNCIL MEMBERS EX- PENSE ALLOWANCE TO September 29, 1961, case A6214, and $125 AND ELIMINATES HEALTH June 11, 1963, case A24831, for the VIOUSLY BENEFITS PROVIDEDPRE- BY THE CITY. City of Huntington Beach, County of PASSED AND ADOPTED by the City Council of Orange, and the State of California. the City of Huntington Beach at a regular meet- Attached to this Affidavit is a true and ing held iAugust 20, 2012 by-the complete copy as was printed and following roll call vote: AYES: Harper, Dwyer, published on the following dates). Hansen,Bohr,Boardman NOES:Shaw,Carchio ABSTAIN:None Thursday, August 30, 2012 THEENT FULLNone TEXT OF THE ORDINANCE IS AVAIL- ABLE, IN THE CITY CLERK'S OFFICE. This ordinance is effec- tive 30 days after' certify (or declare) under penalty CITY OF HUNTINGTON of perjury that the foregoing is true 2000 MAIN STREET HUNTINGTON BEACH, and correct. CA92648 714-536-5227' JOAN L.FLYNN,CITY CLERK Publish H.B.Independent 8/30/12 Executed on September 6, 2012 at Los Angeles, California Signature p dv� - /L *Um46Uc..-XK) Council/Agency Meeting Held:_ 612,o12. Deferred/Continued to: p ov ® r�di#'ova C ly App o ® Denied Ci rk's igna r Council Meeting Date: August 6, 2012 Departme t I Number: CA 12-016 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable May and City Council Members SUBMITTED BY: Jennifer McGr City Attorney PREPARED BY: Jennifer McG ity Attorney SUBJECT: Modify Municipal Code Chapter 2.28 regarding City Council Compensation Ordinance No. 3956 Statement of Issue: During the July 2, 2012 City Council meeting the City Attorney was directed to bring back to City Council an ordinance(s) or resolution(s) that would reduce the "expense" allowance to $125 and eliminate health benefits. Financial Impact: Savings per City Council Member will range from $17,279 to $26,554 based on the following calculations: Expense Currently- $1,253.87 per month x 12 = $15,046.44 NEW- $125 per month x 12 = $1500.00 SAVINGS = $13,546.44 Medical Low— Medical Opt out + Life/ADD/LTD = $3,732.50 High— Full family + Life/ADD/LTD = $13,007.88 Total= $13,546.44 + $3,732.50 = $17,279 (low) $13,546.44 + $13,007.88 = $26,554 (high) Recommended Action: Motion to: Adopt Ordinance 3956 modifying Huntington Beach Municipal Code Chapter 2.28 relating to City Council Member compensation. Alternative Action(s): Not adopt Ordinance 3956 modifying Huntington Beach Municipal Code Chapter 2.28 relating to City Council Member compensation. HB -691- Item 21. 1 Analysis: The Huntington Beach Charter provides that City Council Members currently receive compensation in the form of a monthly salary of $175. In addition, each member of City Council receives reimbursement on order of the City Council for authorized travel and other expenses when on official duty and upon submission of itemized expense report. Council Members receive a reasonable and adequate amount as established by ordinance as reimbursement for routine and ordinary expenses, losses, and costs imposed upon them by virtue of their office. These amounts are set forth in Chapter 2.28.10 of the Huntington Beach Municipal Code as follows: each Council Member shall receive monthly, during his or her term of office the sum of $698 per month, and the Mayor shall receive the sum of $936 per month, such sums to be adjusted annually. Finally, each member of the City Council shall receive aft fringe benefits which are granted, and in the future shalt be granted, to the department heads of the City of Huntington Beach. As was discussed during the July 2, 2012 meeting, the California Attorney General has opined that under an impairment of contract's constitutional analysis, a Council Member's compensation could not be reduced during his or her term of office. There is no exception for staggered terms as there is with increases in salary. The Council direction was to allow all current Council Members to continue to receive all current benefits, compensation, expenses, etc. throughout their term limit but limit any new Council Members to only $125 a month for any amounts established by ordinance "expense allowance". Environmental Status: N/A Strategic Plan Goal: Improve long-term financial sustainability. Attachment(s): a _Uescription 1. Ordinance - #3956 2. Legislative Draft Item 21. - 2 xB -692- ATTACHMENT # 1 ORDINANCE NO. 3956 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 2.28 OF THE HUNTINGTON BEACH MUNICIPAL CODE RELATING TO CITY COUNCIL COMPENSATION The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. Chapter 2.28 of the Huntington Beach Municipal Code is hereby amended to read as follows: 2.28.010 Expense allowance. Except as provided in 2.28.030 below, it is deemed reasonable and adequate that in reimbursement of the ordinary and routine expenses, losses and costs imposed upon them by virtue of their serving the City in their official capacity, each Council Member shall receive monthly, during his/her term of office the sum of $698 per month, and the mayor shall receive the sum of $936 per month, such sums to be adjusted annually by the consumer price index for all urban consumers, all items, 1982-84 equals 100, published by the United States Department of Labor, Bureau of Labor Statistics, for the Los Angeles/Anaheim/ Riverside Metropolitan Area. Further, such expense allowance need not be accounted for by the recipient. In addition thereto, each member of the City Council, including the mayor, shall be reimbursed pursuant to the City's business expense policy for council authorized travel and other expenses when on official duty upon submission of itemized expense account therefor. This section is intended to meet the requirements of section 302 of the city Charter. Appropriations for the allowance and other expenses provided for herein shall be included in the annual budget approved by the City Council. (1346-9167,2079-8/76,2566-8182,2997-5189) 2.28.020 Fringe benefits. Except as provided below, each member of the City Council shall receive all fringe benefits which are granted, and in the future shall be granted, to the department heads of the city of Huntington Beach, and the cost of such fringe benefits shall be included in the annual budget. (2079-8/76) 2.28.030 Exemptions. Any Council Member elected after adoption of this section 2.28.030, excluding current Council Members through their term limit, shall receive a reasonable and adequate amount of $125 per month to cover routine and ordinary expenses, losses and costs imposed upon them by virtue of serving as Council Members. This amount shall not be adjusted annually. 12-3394.00182560 1 Ordinance No. 3956 Any Council Member elected after adoption of this section 2.280.30, excluding current Council Members through their term limit, may not receive City funded health insurance benefits (medical/dental/vision/life/add/ltd), nor any cash-in-lieu thereof(medical opt-out). SECTION 2. This ordinance shall become effective 30 days after its adoption. N: PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 20 th day of August , 20 12 Mayor ATTEST: City Clerk VAPPROVED AS TO FORM: REV ND APPROVED: City Attorney ager 12-3394.00182560 2 Ord. No. 3956 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on August 06,2012, and was again read to said City Council at a regular meeting thereof held on August 20,2012, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Harper, Dwyer, Hansen, Bohr, Boardman NOES: Shaw, Carchio ABSENT: None ABSTAIN: None I,Joan L.Flynn,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on August 30,2012. In accordance with the City Charter of said City Joan L.Flynn, City Clerk Ci . Clerk and ex-of cio I rk Senior Deputy City Clerk of the City Council of the City of Huntington Beach, California ATTACHMENT #2 KEY INSERTIONS: Double underline DELETIONS c`'01' en ORDINANCE NO. 3956 LEGISLATIVE DRAFT Chapter 2.28 CITY COUNCIL (1346-9167,2079-8/76,2566-8182,2997-5189) Sections 2.28.010 Expense allowance 2.28.020 Fringe benefits 2.28.030 Exemptions 2.28.010 Expense allowance. Except as provided in 2.28 030 below it#is deemed reasonable and adequate that in reimbursement of the ordinary and routine expenses, losses and costs imposed upon them by virtue of their serving the c-it�-Qjy in their official capacity, each Council Member shall receive monthly, during his/her term of office the sum of$698 per month, and the mayor shall receive the sum of$936 per month, such sums to be adjusted annually by the consumer price index for all urban consumers, all items, 1982-84 equals 100,published by the United States Department of Labor, Bureau of Labor Statistics, for the Los Angeles/Anaheim/Riverside Metropolitan Area.Further, such expense allowance need not be accounted for by the recipient. In addition thereto, each member of the City Council, including the mayor, shall be reimbursed pursuant to the eCi 's business expense policy for council authorized travel and other expenses when on official duty upon submission of itemized expense account therefor. This section is intended to meet the requirements of section 302 of the city Charter. Appropriations for the allowance and other expenses provided for herein shall be included in the annual budget approved by the City Council. (1346-9167,2079-8/76,2566-8182,2997-5189) 2.28.020 Fringe benefits. Except as provided below, €aeh each member of the City Council shall receive all fringe benefits which are granted, and in the future shall be granted, to the department heads of the city of Huntington Beach, and the cost of such fringe benefits shall be included in the annual budget. (2079-8/76) 2 28 030 Exemptions Any Council Member elected after adoption of this section 2 28 030, excluding current Council Members through their term limit, shall receive a reasonable and adequate amount of$1.25 per month to cover routine and ordinary expenses, losses and costs imposed upon them by virtue of serving as Council Members. This amount shall not be adjusted annually. Any Council Member elected after adoption of this section 2.280.30, excluding current Council Members through their term limit, may not receive City funded health insurance benefits (medical/dental/vision/life/add/ltd), nor any cash-in-lieu thereof(medical opt-outl. 12-3394.001/82556 Esparza, Patty From: Surf City Pipeline [noreply@user.govoutreach.com] Sent: Wednesday, July 04, 2012 7:17 AM To: CITY COUNCIL; agendaalerts@surfcity-hb.org Subject: Surf City Pipeline: Comment on an Agenda Item (notification) Request# 11569 from the Government Outreach System has been assigned to Johanna Stephenson. Request type: Comment Request area: City Council - Agenda& Public Hearing Comments Citizen name: Russ Talbot Description: I would like to comment on the action you are taking on reimbursing expenses for the city council. I believe these minor benefits need to be kept in place in order to create a more equitable field for future council members. If you repeal these reimbursements, only the independently wealthy will be able to serve as a council member and discourage your average citizen from serving the city in this capacity. We already have too many wealthy self serving people serving in the city and this is problem that will only increase if you take away these benefits. If you really want to trim the budget, you should trim the executive pay compensation and benefits package of those $100,000 plus salried employees of the city! Expected Close Date: 07/05/2012 Click here to access the request Note: This message is for notification purposes only. Please do not reply to this email. Email replies are not monitored and will be ignored. i Esparza, Patsy From: Stephenson, Johanna Sent: Monday, August 06, 2012 7:48 AM To: Esparza, Patty Subject: FW: Council Agenda Item#21: Ordinance 3956 Johanna Stephenson /Executive Assistant/[ohanna.stephenson@surfcity-hb.org /O: 714.536.5575 /C: 714.536.5233 From: Tim Geddes [mailto:timgeddes3@gmail.com] Sent: Sunday, August 05, 2012 8:22 PM To: CITY COUNCIL SUPPLEMENTAL Subject: Council Agenda Item #21: Ordinance 3956 COMMUNICATION Tim Geddes 21802 Windsong Circle Meetit'tg©ate: ry Huntington Beach, CA 92646 qprtde ttarn No. RE: Council Agenda Item #21, August 6, 2012 Dear City Council Members, I am opposed to slashing City Council compensation and benefits as proposed in Agenda Item#21. It places an undue financial burden on those citizens wishing to serve their community who are not rich, in well- compensated professional positions, or comfortably retired, and yet who want to devote the extra time and effort to their Council duties it may take to provide outstanding leadership. oing a quality job leading our city should be the goal of every Council member and we shouldn't force our working Council members to choose between fully serving the City and taking on or fulfilling employment commitments to cover expenses. We should not confuse leading by example with degrading our leadership qualities in this manner. All Council members should have the ability to opt out of Council expenses and benefits if they don't need the perks and desire to save the city money. While it is true that few candidates are motivated one way or the other to run for office based upon the compensation and benefits involved, we should not force such sacrifices on future Council members from more modest financial circumstances. We should not have to tell our community-based(i.e. middle class working) Council members that they must choose between devoting the hours and effort to excel in their Council duties and making financial sacrifices with their jobs or other work commitments. We should not, in effect, send a message to the community that only the financially well-off can afford to serve the city in elected leadership positions. Additionally, there is no guarantee that those Council members who are well-off and/or retired will expend the same amount of hours and effort on their duties as those affected by financial constraints. Quite the opposite might be the case. This proposed ordinance (No. 3956) is both unwise and unfair. It should be withdrawn or defeated and replaced by less drastic economies to our City Council budget. Sincerely, Tim Geddes i Huntington Beach Resident since 1983 2 02 CITY OF HUNTINGTON BEACH City Council Interoffice Communication To: Honorable Mayor and City Council Members From: Keith Bohr, City Council Member Date: July 2, 2012 Subject: CITY COUNCIL MEMBER ITEM FOR THE JULY 2, 2012, CITY COUNCIL MEETING— ELIMINATION OF COUNCIL COMIPENSENATION STATEMENT OF ISSUE: At the last Study Session, a number of budget reduction suggestions were made to help deal with the projected budget deficit for next year. I suggested that the Council consider eliminating our compensation as another budget saving idea. We would realize significant cost savings if we did this. It is important to remember that due to the recession, the City has been forced to make many difficult decisions including: • Cut $26.5 million from the City's General Fund over the past five years; • Eliminate over 117 positions, or 15 percent, from the City's employee roster; • Defund an additional 35 positions in Police, Fire and Community Services to further cut costs; • Increase employee's contributions for health, retirement and other benefits; and, • Negotiate concessions from employees that have reduced the City's pension costs by an additional $1.8 million To complete the perfect storm, the State completely eliminated redevelopment funding for cities, eliminating $18 million in annual revenue to the City's RDA, including an annual $4.9 million transfer to the General Fund that supports many community services. With all of these budget challenges, I think it would be prudent that the City Council lead the way, setting the proper tone by addressing appropriate cuts of its own budget before proposing cuts to other services. Under the Charter, Section 302, City Council Members (including the Mayor) receive a salary of $175 per month for a total annual cost of approximately $14,707. Additionally, under the same section of the Charter, City Council Members currently receive an expense allowance which is established by ordinance. These amounts were initially set at $936 per month for the Mayor and $698 per month for the City Council. With the CPI adjustments that have taken place since then, the figure is now $1,600 per month for the Mayor and $1,200 per month for City Council Members. We can also select health, dental, vision, and life insurance coverage or opt-out. The total cost of expense allowances and health benefits for Council in 2011 was $157,543. In addition, we budget $1,700 per Councilmember ($2,900 for Mayor) to attend meetings and conferences for a total annual cost of$13,000. It is worth noting that in November 2011,the City of Orange set a precedent by eliminating all Council health and retirement benefits, expense reimbursements, and all compensation going forward for anyone elected in the 2012 election and beyond. I am suggesting that we adopt the following option(s): ➢ Eliminate health and retirement benefits for all new City Council Members elected in November 2012, which could result in an annual cost saving of approximately $15,000 to $40,000. Alternative Action: ➢ Eliminate health and retirement benefits for all City Council Members beginning October 1, 2012, which will result in an annual savings of $35,000 to $93,000. Since the salary for the Mayor and City Council is established by City Charter and can only be changed through a vote of the electorate, I am not recommending that we eliminate our salaries of $175 per month ($2,100 per year) which at least covers the member's cost of gasoline commuting to and from the various meetings. Recommendation: Direct City Attorney to bring back appropriate resolutions and/or ordinances to implement this action.