HomeMy WebLinkAbout6.3 Ord Increasing Council Salaries CITY OF DUBLIN
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: March 13, 1989
SUBJECT Public Hearing: Second Reading Ordinance Increasing
City Council Salaries (Prepared. by City Manager)
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EXHIBITS ATTACHED Draft Ordinance.
Assistant City Attorney Memorandum dated March 7, 1989
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RECOMMENDATION 1 ) Open Public Hearing
2) Hear Report from City Manager
4, 3) Hear Public Testimony
4) Close Public Hearing
5) . Deliberate
" 6) Waive Reading and Adopt Ordinance
FINANCIAL STATEMENT: The passage of this ordinance would not immediately
impact the costs of Council's salaries. The adoption '
of this ordinance would result in an increase of
$17 . 36 per month for each Council member subsequent to
the November 1990 election.
' DESCRIPTION In accordance with City Council discussion in January
1989, the City Attorney prepared for Council consideration an, ordinance,
which would increase Council members salaries by 5% for calendar year 1989 .
However, incumbent Council members would not be eligible to receive, the
increase until after the November 1990 election.
This Ordinance was prepared in accordance with Section 36516 (a) of the
California Government Code, which establishes a salary of $300 per month for
City Council members. Section 36516 (b) allows for an increase in Council
member salaries not to exceed 5% for each calendar year. The City Council' s
presently monthly salary is $347 . 29 per month. If the Council were to adopt
this ordinance, the Council members' salaries would be $364. 65 per month ,
after the November 1990 election.
At the regular City Council meeting on February 27, 1989, a public hearing
was conducted and the Draft Ordinance was introduced. • Also, at that,
hearing, the City' Council requested that the City Attorney investigate
whether expenses, in addition to the monthly salary, may be paid on a flat
monthly rate. The current policy is to reimburse actual expenses upon
submittal of documentation. The attached memorandum from the Assistant City
Attorney explains the findings .
Although it is possible to reimburse expenses on a fixed amount, this will
not necessarily eliminate record keeping. The Courts have ruled that the
amount paid would be subject to audit to verify that the funds were actually
and necessarily required. In order to meet this requirement, documentation
of actual expenses would be, required. The City- Attorney' s Office has also
noted that if payments exceed actual expenses, this , may create tax
implications as excess amounts would then become compensation. In turn, the
excess payment would also be in conflict with the Government Code Section
limiting compensation. If the City Council wishes to proceed with a flat
amount reimbursement for expenses, it would be appropriate. to direct Staff
to prepare the necessary resolution and administrative procedures .
Staff recommends that . the City Council conduct a public hearing, waive the
reading and adopt the ordinance.
COPIES TO: .
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ITEM NO. 6. ,
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ORDINANCE NO.
AN ORDINANCE OF THE CITY OF DUBLIN AMENDING
ORDINANCE NO. 6 AND PROVIDING FOR AN INCREASE
OF THE SALARY FOR MEMBERS OF THE CITY COUNCIL
The City Council of the City of Dublin does ordain as follows:
Section 1: PURPOSE
Ordinance No. 6 establishes salaries for members of the
Council, as amended by Ordinance No. 22-85, Ordinance No. 8-87,
and Ordinance No. 4-88. the purpose of this ordinance is to
modify salaries for members of the City Council in accordance
with the Government Code Section 36516.
Section 2: AMENDMENT
Ordinance No. 6, as amended by Ordinance No. 22-85,
Ordinance No. 8-87, and Ordinance No. 4-88 is hereby amended by
adding the following language: "The said $300 shall be
increased in an amount equal to 5% for calendar year 1989. "
Section 3 :
No Council member shall be eligible to receive the increase
provided herein until one or more Council member- begins a new
terms of office.
Section 4 : EFFECTIVE DATE AND POSTING OF ORDINANCE
This Ordinance shall take effect and be in force thirty
(30) days from and after the date of its passage. The City
Clerk of the City of Dublin shall cause this Ordinance to be
posted in at least three (3) public places in the City of Dublin
in accordance with Section 36933 of the Government Code of the
State of California.
PASSED AND ADOPTED by the City Council of the City of
Dublin on this day of March, 1989, by the following vote:
AYES:
NOES :
ABSENT:
Mayor
ATTEST:
City Clerk
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MEYERE3, NAVE, RIBACK &WEST
MICHAEL R,NAVE APROFEe cp.AL LAW COAPORATI01, PFNIry$41LA OFE I'
STEVEN R.MEYERS
NATALIE E.WEST GATEWAY PLAZA 1220 HOWARD AVE.SUITE 250
ELIZABETH n.SILVER 777 DAMS STREET.SUITE 304. BURL:NGA5) f A 94010.4211
MICHAEL S RI9AC,1, SAN LEANDRO.CALIFORNIA 94577 (a 15) )342- 8
MOLLY T.TAMI (415)351.4300 FAX(415)392-0688
ANNE S.IIUDOE FAX(415)351-4481
MICHAEL F.RODRIGUEj NIN nFFlGE
1202 GRANT AVE..SUITE E
OF cot)NgEI NOVATO.CA 94945
THOMAS F.BERTRAND 141.5}692.9678
San RLPedAdro
MEMORANDUM •
TO: Richard Ambrose, City Manager DATE: March 7, 1989
FROM: Elizabeth H. Silver, •
Assistant City Attorney
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RE: Reimbursement for Council Expenses -
One Council member recently asked whether the .Council
members can be reimbursed for automobile expenses in a flat amount
per month.
Government Code § 36514.5 provides that Council members
may be reimbursed for "actual and necessary expenses incurred in
the performance of official duties.► .
The Council may, by resolution, fix an amount which it
determines to be actually and necessarily expended- each month by
the Mayor and Council members for expenses incurred in the
performance of official duties. Aibright y city, South Sari
Francisco (1975) 44 Cal.App.3d 866, 118 Cal.Rptr. 901, 902 . Such
a determination would probably be upheld by a court. 14. If the
• Council were to pass such a resolution, . however, the amount
received would be subject to audit under Government Code $ 37201
et. seq. to verify that the funds received were actually and
necessarily required. 118 Cal.Rptr. at 903. Finally, to the
extent that the amount which is set by Council resolution .as being
actually and necessarily expended is in fact in excess of actual
amounts expended, Council members may have to pay income tax on
the amount of compensation, that amount' being compensation as
opposed to reimbursement for expenses. The Internal Revenue
Service may require records to prove that the amount received was
reimbursement for actual expenses.
EHS:rc Eliza eth H. Silver