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CC - Item 4J - Adoption of Resolution No. 2025-36 Establishing Salary and Benefits for the City Council of the City of Rosemead Effective July 1, 2025 and Including a Monthly Auto and Communications Allowance in Lieu of ReimbursementROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER DATE: JULY 8, 2025 SUBJECT: ADOPTION OF RESOLUTION 2025-36 ESTABLISHING SALARY AND BENEFITS FOR THE CITY COUNCIL OF THE CITY OF ROSEMEAD EFFECTIVE JULY 1, 2025, AND INCLUDING A MONTHLY AUTO AND COMMUNICATIONS ALLOWANCE IN LIEU OF REIMBURSEMENT SUMMARY In lieu of submitting individual mileage reimbursement claims, staff recommends establishing a fixed monthly auto allowance for Council Members. This approach ensures fair compensation, simplifies administration, and aligns with practices in neighboring cities. In addition, staff recommends providing a separate monthly allowance to support accessibility and technology needs, such as mobile devices, internet connectivity, or virtual meeting tools, in lieu of processing individual reimbursement requests. Consistent with City policy, Council benefits including Cafeteria -style Health, Welfare, and Savings plans, as well as wellness program benefits will also be updated to reflect recent enhancements proposed to employee groups. DISCUSSION Auto Allowance: The City currently reimburses Council Members for mileage incurred while using personal vehicles for authorized City business at the federal IRS rate. This process requires submitting mileage logs for each trip, creating an administrative burden for both Council Members and staff. Several cities in the San Gabriel Valley have adopted a C ity Monthly Auto Allowance flat monthly vehicle allowance for elected officials, which streamlines administration, provides consistent Azusa $350 budgeting, and reflects the routine nature of local travel associated with Council responsibilities. The following cities within the region provide an auto allowance to council members: Covina $300 Diamond Bar $300 La Puente $447/($510for Mayor) Norwalk $500 Santa Ana $500 South El Monte $650 South Gate $475 Upland $500 AGENDA ITEM 4.J City Council Meeting July 8, 2025 Page 2 of 3 A local survey of comparable cities found that the average monthly auto allowance provided to Council Members is approximately $450. However, many of these cities have not updated their allowance amounts in several years. As a result, the figures do not account for rising fuel prices, vehicle maintenance and purchase costs, or other inflationary impacts. To improve administrative efficiency and reduce the time spent processing mileage forms, staff recommends the City Council approve a flat $500 monthly auto allowance in place of mileage reimbursements, effective July 1, 2025. This change will provide consistent compensation, simplify budgeting, and reflect common practices in other cities. This amount is also found to be an actual and necessary expense permitted under the law and as further found in the attached Resolution. Communications Allowance: To reduce the need for submitting individual claims related to mobile devices, internet service, or virtual meeting tools, staff recommends establishing a separate monthly allowance for communications. This proposal is supported by actual cost data previously submitted by Council Members under the current reimbursement policy (Admin Policy 30-02). At present, the City allows for up to $150 per month in reimbursements for eligible communications expenses such as voice and data plans. In place of this reimbursement -based approach, to improve administrative efficiency and reduce the time spent processing forms, staff recommends a flat monthly allowance of $150 to cover ongoing communications needs. Update to Other Benefits: It is the City's standard practice that when employee groups receive an increase in benefits, a corresponding update is made to the City Council's benefits to maintain alignment and consistency. • Cafeteria Style Health, Welfare, and Savings Benefit — The Cafeteria Style Health benefit provides $1,700/month to employees towards the cost of health, dental, and vision premiums. Currently, the City provides an additional $200 per month for excess "out-of- pocket" health care premium costs. Beginning July 1, 2025, the City will increase the "out- of-pocket" additional costs from $200 per month to $500 per month (an increase of $300 per month). The additional $500 per month has no cash -out value. Wellness Program — The current $300 annual benefit is increased to $400 annual. STAFF RECOMMENDATION Adopt Resolution 2025-36 establishing salary and benefits for the City Council of the City of Rosemead effective July 1, 2025. City Council Meeting July 8, 2025 Page 3 of 3 FISCAL IMPACT The annual fiscal impact estimate amounts to $30,500 and will be dispersed from the City Council General Fund budget. Any budget revisions will be proposed during the mid -year budget update in February or March of 2026. STRATEGIC PLAN IMPACT None ENVIRONMENTA REVIEW This item is not defined as a project under the California Environmental Quality Act (CEQA); therefore, the proposed plan is not subject to CEQA. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: Bryan Chua Assistant City Manager/Finance Director Attachments A: Resolution No. 2025-36 Attachment A Resolution No. 2025-36 RESOLUTION NO.2025-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ESTABLISHING SALARY AND BENEFITS FOR THE CITY COUNCIL OF THE CITY OF ROSEMEAD EFFECTIVE JULY 1, 2025, AND INCLUDING A MONTHLY AUTO AND COMMUNICATIONS ALLOWANCE IN LIEU OF REIMBURSEMENT WHEREAS, City Council Members are critical to the efficientand effective operations of the City, due to the policy -making nature and responsibilities of the position; and WHEREAS, the time, commitment and expense of serving on the Council is significant; and WHEREAS, as it related to car allowance reimbursement Government Code Section 1223 provides that a "...city officer ... may contract with the appropriate authorities for an allowance or mileage rate for the use of vehicles owned or rented and used by [the city officer] in the performance of duty, in lieu of the usual transportation charges."; and WHEREAS, Government Code Section 36514.5 allows reimbursement of actual and necessary expenses incurred by City Council members in the performance of official duties, subject to certain requirements; and WHEREAS, a car allowance has been determined to be an "actual and necessary expense" by some courts (ex. Citizen Advocates, Inc. v. Bd. of Supervisors, 146 Cal. App. 3d 171, 176 (1983)); and WHEREAS, Government Code Section 36516, as interpreted in Attorney General Opinion 08-405 ((February 18, 2010), 2010 WL 6026760), "specifically provides that amounts paid by a city to reimburse a council member for actual and necessary expenses shall not be included for purposes of determining the council member's salary"; and WHEREAS, the City Council members and the Mayor of the City of Rosemead incur actual and necessary expenses related to the use of vehicles they own or rent and use in the performance of duty; and NOW THEREFORE, BE IT RESOLVED that effective July 1, 2025, the salary and benefits for the City Council Members will be as follows: SECTION 1: COMPENSATION Members of the City Council will receive $1,600.00 per month pursuant to Ordinance No. 1020. SECTION 2: HEALTH INSURANCE PROVIDER The City contracts with California Public Employees' Retirement System (Ca1PERS) to serve as the health insurance provider for the City. SECTION 3: CAFETERIA -STYLE HEALTH, WELFARE. & SAVINGS BENEFIT The City will provide each full-time City Council Member with $1,700 per month for use towards enrolling in any of the City offered health, dental, and vision plans. Effective July 1, 2023, the City will provide an additional $500 per month for excess health care premiums with no cash -out value. 1. Unused Contributions. For Council Members elected/appointed on or prior to November 30, 2021, any unused remainder of the $1,700 monthly cafeteria -style benefit will be put into a 457 deferred compensation plan up to the maximum amount allowed by law. Council Members elected/appointed after November 30, 2021, will not be compensated for any unused portion of the cafeteria -style benefit. 2. Excess Premiums. Employees shall be required to pay any cost of the health, dental, and vision premiums for their selected plans that exceeds the amount of the City's monthly contribution. 3. Opt -Out. Council Members elected/appointed on or prior to November 30, 2021, may also choose to waive coverage and receive the entire benefit as deferred compensation (457 Plan -up the maximum contribution allowed by law) but must first show proof of group health insurance coverage through an individual, a spouse or family member's coverage through their employer and complete the Voluntary Decline of Health Care Offered Under City of Rosemead Group Plan form. Council Member elected/appointed after November 30, 2021 choosing to opt -out of medical coverage offered by the City, under the same conditions, will receive $500 per month deposited into the 457 deferred compensation plan. SECTION 4: CHANGES TO HEALTHCARE LAWS The parties recognize that certain changes to State or Federal laws, programs, taxes or regulation including, but not limited to, the Affordable Care Act, may impact future medical plan offerings. SECTION 5: RETIREMENT HEALTH PLAN For Members of the City Council elected/appointed on or before July 1, 2007, who have 20 years or more of service with the City of Rosemead, and who retire from the City, an allocation of up to $1,000/month will be given to pay for health care benefits for the duration of their retirement. If the health insurance program selected by the Member costs more than $1,000/month, the City will only cover the first $1,000/month of the cost of the selected program. For members elected/appointed on or before July 1, 2007. who have 12-19 years of service with the City of Rosemead, and who retire from the City, an allocation of up to $500/month will be given to pay for health care benefits; for the duration of their retirement. If the health insurance program selected by the Member costs more than $500/month, the City will only cover the first $500/month of the cost of the selected program. The above retirement health contributions will only be in effect for Members elected/appointed as of July 1, 2007. When a retired Council Member reaches 65 years of age, or becomes eligible for Medicare, said Members will transition to Medicare coverage and the City will continue to contribute towards the cost of health care coverage to the maximum amounts provided above during the duration of the Members' retirement. Furthermore, it is expressly noted that the retirement health contribution can be used towards health coverage for the retired Council Member, their spouse, and/or any eligible dependent. Members hired after July 1, 2007, will receive retiree health benefits in accordance with public employees' retirement laws and CalPERS. SECTION 6: RETIREMENT PROGRAM (CALPERS) Members will be enrolled in the City's retirement program through CalPERS. On July 1. 2007, the City began providing the 2.7%@55 benefit formula with one-year final compensation option with no cap. On July 1, 2010, the City implemented a 2-tier system with changes for new hires only. Council Members, hired on or after July 1, 2010, are subject to the 2%@55 formula with one-year final compensation option. All existing Council Members hired prior to July 1, 2010 will remain at the 2.7@55 formula. Under the Public Employees' Pension Reform Act of 2013 (PEPRA), effective January 1, 2013, all "new members" are subject to the 2.0% @ age 62 benefit formula which also requires a three- year final compensation (the highest average annual pensionable compensation earned by a member during a period of at least 36 months) with an early retirement age of 52. A "New Member" is defined as: 1. A new hire that is brought into CalPERS membership for the first time on or after January 1, 2013, and who has no prior membership in any other California public retirement system. 2. A new hire who is brought into CalPERS, membership for the first time on or after January 1, 2013, and who is not eligible for reciprocity with another California public retirement system. 3. A member who established CalPERS membership prior to January 1, 2013, and who is hired bya, different CalPERS employer after January 1, 2013, after a break in service of greater than six months. Effective January 1, 2013, PEPRA prohibited employers from paying any portion of a "new member's member contribution rate. All new members must pay 50% of total normal cost as employee contribution rate. CalPERS refers to all members that do not fit within the definition of a new member as "classic members". All "classic members" are required to contribute their full share, up to 8%, of the employee contribution of the CalPERS rate. Additionally, all existing CalPERS members as of December 31, 2012, will retain the existing benefit levels for future service with the same employer. SECTION 7: ENHANCED RETIREMENT PROGRAM PUBLIC AGENCY RETIREMENT SERVICES (PARS) The City offers an enhanced retirement package through Public Agency Retirement Services (PARS) for all members hired prior to July 1, 2010. Such members who retire from Rosemead after working 12 years for the City will have their pension formula enhanced to 3%@55, with the provision that the maximum pension allowance that members can accrue through PARS is 90% of their final pay. The PARS retirement pension is limited to 90% of their final pay. Members must be at least 55 years of age to qualify for PARS. Council Members elected/appointed on or after July 1, 2010, are not eligible for the Enhanced Retirement Program through PARS. SECTION 8: DEFERRED COMPENSATION PROGRAM (401A & 457) 401A: Members of the City Council receive $500 per month to be deferred through the 401A Plan which allows members to make contributions through a supplemental retirement savings program. This benefit was eliminated for all Council Member elected/appointed on or after July 1, 2010. 457: For Council Members elected/appointed after Any remaining balance of the monthly health benefit allowance will be put into a 457 deferred compensation plan, up the maximum allowed by law, as specified in Section 3. SECTION 9: LIFE INSURANCE Members of the City Council receive an accidental death and dismemberment and life insurance policy of $100,000. SECTION 10: TUITION REIMBURSEMENT Members may attend and be reimbursed for part or all of the costs of educational and other training courses (up to $5,000 per fiscal year) which provide a benefit to the City provided there are budgeted funds for such approval by the City Council. The educational/training courses must be job -related leading towards a college or university degree or certificate and Members must remain with the City for three (3) years after the successful completion of class/course or must refund the amount received to the City on a pro -rated basis. If a Member leaves office (voluntarily or involuntarily) with the City, prior to the three (3) years after the completion of class/course, the Member must repay the City the amount received based upon the following pro -rated basis: Pro -Rated Schedule of Repayment Years of Service After Completion Repayment Amount Due to the City Less than one 1 year Full Amount Received Less than two 2 ears 2/3 of Amount Received Less than three 3 ears 1/3 of Amount Received Members may be reimbursed for registration, cost of books, tuition, lab fees and parking for classes or instruction, provided such classes or instruction are related to the Member's assigned duties with the City. Reimbursement will be made only after a Member has satisfactorily completed the class or workshop with the grade of "C" or better or a "B" or better for graduate level courses and that proof of completion has been submitted and reviewed by the City Manager. All study time shall be considered completely voluntary and there is no mileage reimbursement provided for travel to and from educational classes. Required forms must be completed and necessary documentation (receipts and grades) must be provided in order to receive reimbursement. SECTION 11: WELLNESS PROGRAM The City shall reimburse City Council Members up to three -hundred dollars ($400) per fiscal year for qualifying expenses of the City's Wellness Program. SECTION 12: COMPUTER PURCHASE PROGRAM The City provides a computer purchase program for members of the City Council as outlined in the Administrative Policy No. 30-09 approved by the City Manager. Loans are due and payable in full upon termination or separation of service. SECTION 13: EMPLOYEE ASSISTANCE PROGRAM The City provides access to the Employee Assistance Program (EAP). SECTION 14: AUTO ALLOWANCE In lieu of mileage reimbursement for travel related to official City business, Council Members shall receive a flat -rate automobile allowance of $500 per month. SECTION 15: COMMUNICATIONS ALLOWANCE In lieu of submitting individual reimbursement claims for voice services, data plans, and other communications -related expenses incurred while conducting official City business, Council Members shall receive a flat -rate monthly communications allowance of $150. SECTION 16: DIRECT DEPOSIT Members of the City Council are provided with an option to authorize the automatic deposit of each paycheck into an individual's checking, savings or credit union account. Payroll checks will not be issued in advance. SECTION 17: UNEMPLOYMENT INSURANCE BENEFITS Members of the City Council are not eligible for unemployment insurance benefits. SECTION 18: The City Clerk shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect. PASSED, APPROVED, AND ADOPTED this 8t" day of July, 2025. Margaret Clark, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF ROSEMEAD I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California, do hereby certify that the foregoing City Council Resolution No. 2025-36 was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 8tn day of July, 2025, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk