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CC - Item 5C - Second Reading and Adoption of Ordinance No. 1020 - Amending Municipal Code Section 2.04.010 and Adoption of Resolution No. 2023-61 Related to Council Salaries as authorized by Senate Bill 329ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR ANp CITY -COUNCIL FROM: BEN KIM, CITY MANAGER DATE: OCTOBER 10, 2023 SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1020 - AMENDING MUNICIPAL CODE SECTION 2.04.010 AND ADOPTION OF RESOLUTION NO. 2023-61 RELATED TO COUNCIL SALARIES AS AUTHORIZED BY SENATE BILL 329 SUMMARY On September 26, 2023, the City Council introduced for first reading Ordinance No. 1020 - amending Municipal Code Section 2.04.010 related to council salaries as authorized by Senate Bill 329. On June 29, 2023, Governor Newsom signed into law Senate Bill 329 ("SB 329"), which raises the maximum salary that council members may receive. This Bill aimed to increase the compensation schedule for council members in cities governed by general law, which had not been updated since 1984. SB 329 allows cities to increase the compensation to adjust for inflation in order to help keep city councils more diverse by allowing people from across different income levels to serve the public and support their families. DISCUSSION Currently, Government Code section 36516 authorizes a city council to adopt an ordinance to provide each member of the city council with a salary, with a maximum limit based on the population of the city according to a specific schedule. Any salary increases are also limited and cannot exceed 5% per calendar year from the effective date of the most recent salary adjustment in effect when the increase is implemented. SB 329 modifies section 36516 of the Government Code to increase the maximum salary listed in the schedule. The monthly salary for council members in cities with a population over 50,000 up to and including 75,000 in population, has increased to up to $1,600 per month. According to the California Department of Finance, as of January 1, 2023, the total population of Rosemead is 50,022. SB 329 also permits the salary of council members to be increased beyond the specified maximum by an amount not exceeding the greater of 5% for each calendar year from the effective date of the last salary adjustment or an amount equal to inflation since January 1, 2024, as measured by the California Consumer Price Index (not to exceed 10% per calendar year). AGENDA ITEM 5.0 City Council Meeting — Second Reading of Ordinance No. 1020 October 10, 2023 Page 2 of 2 SB 329 will become effective on January 1st, 2024, however, according to Government Code section 36516.5, any council salary increase may only take effect when at least one council member begins a new term. It should be noted that if the City were to become a charter law city the charter could have the compensation increase take place at a different time and would not be required to wait for an election of one term to occur first. STAFF RECOMMENDATION That the City Council approve the second reading, by title only, and adopt Ordinance No. 1020, amending Municipal Code Section 2.04.010, and adopt Resolution No. 2023-61 amending Resolution No. 2023-55, the Comprehensive Salary Schedule to meet the California Code of Regulations Title 2, section 570.5 and 571 for Fiscal Year 2023-24 effective March 6, 2024, and Fiscal Year 2024-25 effective July 1, 2024. FISCAL IMPACT The fiscal impact relating to the increased cost in City Council compensation amounts to $31,500 annually. Any appropriations needed for this action will be presented in the Mid -Year Budget Report. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: Ericka Hernandez City Clerk Attachment A: Ordinance No. 1020 Attachment B: Resolution No. 2023-61 Salary Schedules Attachment C: City Council Staff Report Dated September 26, 2023 Attachment A Ordinance No. 1020 ORDINANCE NO. 1020 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, AMENDING MUNICIPAL CODE SECTION 2.04.010 RELATED TO COUNCIL SALARIES AS AUTHORIZED BY SENATE BILL 329 WHEREAS, Senate Bill 329 was adopted to "reset' city council salaries to reflect the important work done by city council members, to take into account the impacts of inflation and economic realities on those who serve as city council members, and to encourage more persons to consider service as council members by making the compensation more reflective of the time and work being performed; and WHEREAS, the City Council has not had an increase in compensation since 2006 therefore its salaries were no longer reflective of the time and effort put forth by an elected official in the City; and WHEREAS, reasonable council member compensation acknowledges the civic commitment of service and provides an additional incentive for as diverse candidates pool as possible. WHEREAS, the City Council reviewed and discussed the value and important impacts of Senate Bill 329 on the future governance of the City and found that it agreed with the intent of the state legislature; WHEREAS, under Senate Bill 329 the salary for the City Council of the City of Rosemead can be set at $1,600 per month. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Amendment. The Council hereby by amends Rosemead Municipal Code Section 2.04.0 10 as follows: "Section 2.04.010- Councilmembers—Compensation A. Each member of the City Council shall receive a salary, as provided in section B. Such salaries shall be payable at the same time and in the same manner as salaries are paid to other officers and employees of the City of Rosemead. B. Pursuant to California Government Code Section 36516, each member of the city council, shall receive a salary in the amount of sixteen hundred dollars ($1,600.00) per month. That the salary shall become payable only on or after the date upon which one or more members of the City Council become eligible therefor by virtue of beginning a new term of office as provided for in California Government Code Section 36516.5." SECTION 2. Publication. The City Clerk is directed to certify this Ordinance and cause it to be published in the manner required by law. PASSED, APPROVED AND ORDAINED this 10" day of October 2023. Steven Ly, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF ROSEMEAD 1 I, Ericka Hernandez, City Clerk of the City of Rosemead, County of Los Angeles, State of California, hereby attest to the above signature and certify that Ordinance No. 1020 was introduced for first reading at the regular meeting of September 26, 2023. Said Ordinance was approved and adopted by the City Council of the City of Rosemead at a regular meeting held on the 10`h day of October 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk Attachment B Resolution No. 2023-61 with Salary Schedule RESOLUTION NO. 2023-61 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, AMENDING RESOLUTION NO. 2023-55, THE COMPREHENSIVE SALARY SCHEDULE TO MEET THE CALIFORNIA CODE OF REGULATIONS TITLE 2, SECTION 570.5 AND 571 TO BE EFFECTIVE MARCH 6, 2024 WHEREAS, the City Council has the authority to create, classify, and design salary scales/ranges for all City of Rosemead employee positions; and WHEREAS, California Code of Regulation (CCR) Title 2, Section 570.5 and amendment to CCR Section 571 requires a consolidated Salary Schedule that is publicly available showing all City classifications and salary ranges; and WHEREAS, the City Council wishes to meet the requirements of these regulations by adopting a Salary Schedule, which sets forth the salary scales/ranges for all City of Rosemead employee classifications; and WHEREAS, Exhibit A includes the Citywide Salary Schedule that reflects the new salary rates for all classifications. NOW THEREFORE, BE IT RESOLVED that hereby adopts the Salary Schedule for all City of Rosemead employee classifications as set forth in the attached Exhibit A to reflect the employee salary rates for Fiscal Year 2023-24 effective March 6, 2024, and Fiscal Year 2024-25 effective July 1, 2024. PASSED, APPROVED, AND ADOPTED this 10`h day of October, 2023. Steven Ly, 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. 2023-61, was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 10th day of October 2023, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk rl, un c ea u u u u u u u u u u w Izu z z w w z z w w w w W d W w W w m 6 6 m m m 6m. - m b qX C r £ f � n N A O W a C m > m E n O f E`tv a 6 'o o `o O _d u u „_ a G d a uzl V 0 i+ O LL r EN1 I'S U a 'C S fi 'o f m 'u o c x c a uJ a a a a¢ O w x i cJ rc N N m a g a mJ u L f i n S dJ i N ti ff ePi ti N H H ti ti ti O O O a� O n b �O Oi n I� N n n T n n n N N 40 n b N N N N W I� N N em$ r4. 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