City Council Regular Meeting


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Meeting Date: 09/15/2021  
From: Jenny McAdams

Discuss City Council total compensation and direct the City Manager to bring back a draft ordinance, resolution, and policy amendment for City Council review.
The City Council salary has not been increased for 22 years. The Mayor and Council Members are classified as “full time employees”. For City employees, the City has a practice of providing employees 95% of the total median compensation package to include salary and benefits.
Survey Results
In looking at comparator agency cities, six of the comparator cities provide health benefits to their Council Members, and seven of the comparator cities provide other benefits. Pacific Grove is -542.65% below of the 95% market median for total compensation.
Population City of Empl. Class Monthly Salary Health Benefits Other Benefits Total Comp
10,010 Capitola Council Member $600 - - $600
3,807 Carmel Council Member $150 3,039 - $3,189
40,740 Hollister Council Member $400 $2.493 $6 $2,898
22,781 Marina Council Member $200 - - $200
28,178 Monterey Council Member $430 $2,395 $16 $2,841
15,413 Pacific Grove Council Member $420 - - $420
155,465 Salinas Council Member $600 $2,605 $760 $3,965
273,213 Santa Cruz Council Member $1,710 $2,928 $422 $5,060
33,748 Seaside Council Member $400 $935 - $1,335
53,856 Watsonville Council Member $598 - $112 $710
City Council salaries are set by Government Code Section §36516, which determines salary by city population. Government Code Section §36516 (4) allows increases to salary of 5% from date of the last increase. If a Council salary increase is authorized for less than the full amount, there is no carry-forward allowed for the unused percentage. 
Over two decades have elapsed since the last City Council salary increase was authorized.  Accordingly, the maximum amount by which the Council may lawfully increase Council/Mayoral salaries, is one hundred percent. Currently Council Members receive $420 per month and the Mayor receives $700 per month.
It is not anticipated that all seven Council Members would choose to receive a salary increase.
Health Benefits
Government Code Section § 36516(d) provides any amount paid by the City for Council Member medical benefits is not classified as salary, as long as the same benefits are available and paid by the City for its employees.
The City Council may consider two options pertaining to Council member health benefits as outlined below. These options are based on the healthcare contributions currently provided for non-safety employees of the City, as required under Government Code Section § 36516(d).
  1. The City could contribute up to $1,600 per month per Council Member in addition to the required PEMHCA for all City Council Members. This benefit is offered to all members of the General Employee Association (GEA), the Police Officers Association (POA), and all employees that are in positions aligned with the GEA and POA.
  1. The City could contribute up to $1,700 per month per Council Member in addition to the required PEMHCA for all City Council Members.  This benefit is offered to all Management Employee Associations (MEA), Department Heads, and all employees that are in positions aligned with the MEA.
If premiums for coverage exceeds the amount provided by the City, the individual Council Member is responsible for paying the balance. He or she may direct the City to deduct the balance from his or her salary.

It is not clear that all seven Council Members would participate in City provided healthcare benefits.
  1. Take no action.
  2. Provide alternative direction to staff.
The 100% salary increase per City Council Member has an annual impact of $5,040 per council member. The 100% salary increase for the Mayor has an annual impact of $8,400.  

One City Council Member receiving a healthcare benefit can range from $950 - $1,700 per month depending on the alignment with a City benefit group, as well as the number of dependents.  The annual City benefit contribution, including PEMHCA could range between $13,116 - $22,116 for each participating Council Member.
GOAL ALIGNMENT: Not Applicable.
Appendix A
Appendix B


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