Title
Adoption of Resolution Increasing the Mayor and Councilmember Salaries in Accordance with Alameda City Charter Section 2-1.1 and 2-4 Amended by Voters in November 2022 to Increase Mayor’s Base Salary to $28,311 Annually and Councilmembers’ Base Salary to $18,896 Annually Retroactive to July 1, 2023; and Amending the Fiscal Years 2023-25 Operating Budget Authorizing a Reallocation of $97,200 Each Fiscal Year from Non-departmental Contingency to City Council Personnel Budget. (Human Resources 10025060)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
In accordance with the City of Alameda Charter and because the stated goal of the ballot measure was to encourage people to run for office who may not otherwise be able to afford it, staff is proposing an increase to the City Council’s compensation package after passage of the amendment to the City Charter to allow an increase to the Mayor and Councilmember salaries effective July 1, 2023.
BACKGROUND
In December of 2018, the Mayor appointed a subcommittee consisting of then Councilmembers Knox-White and Daysog, to review the City Charter and recommend potential items for City Council consideration and amendment. In April 2019, the subcommittee returned to City Council with various recommendations. One recommendation was a Charter amendment related to City Council compensation. In June 2020, City Council approved placing the City Council compensation amendment on the November 8, 2022 ballot and instructed staff to return with language.
In June 2022, staff returned with recommended language for an amendment to set City Council compensation at an amount not-to-exceed 30% of the salary for “All Occupations, United States Bureau of Labor Statistics, Occupational Employment and Wage Statistics, San Francisco-Oakland-Hayward CA Area.” The discussion of language for an amendment included the reasons for increasing compensation, including to widen the pool of potential candidate and encourage people to run for office who may not otherwise be able. Also included in the ballot measure was language allowing the City Council to set salaries effective as soon as July 1, 2023.
The measure was placed on the November 2022 ballot and was adopted by the citizens of Alameda with 53.97% of voters voting yes on the measure. As of November 2022, City Council has the authority to update the compensation for the Mayor and City Councilmembers with an effective date of July 1, 2023 up to a maximum set by the City Charter.
DISCUSSION
In accordance with the Alameda City Charter and because the stated goal of the ballot measure was to encourage people to run for office who may not otherwise be able to afford it, staff is proposing an increase to City Council’s compensation package. The voter approved charter amendment provides a new formula to determine the maximum base salary for the Mayor and City Councilmembers and allows City Council to set compensation up to the maximum beginning July 1, 2023. As provided below, staff conducted a salary survey to compare the Mayor and City Council’s total compensation and base salary to other comparable cities within Alameda County. The surveyed cities were Dublin, Pleasanton, Livermore, San Leandro, and Union City. These cities were chosen based on their population and comparable cost of living to the City of Alameda (City).
|
City |
Population |
Annual Base Salary |
Council Member Percentage of Mayor Salary |
Annual Total Compensation |
|
|
|
Mayor |
Council Member |
|
Mayor |
Council Member |
|
Dublin |
72,000 |
$25,503 |
$17,002 |
67% |
$52,158.48 |
$43,657.56 |
|
Livermore |
86,000 |
$17,880 |
$12,840 |
72% |
$17,880.00 |
$12,840.00 |
|
Pleasanton |
78,000 |
$17,063 |
15,863 |
93% |
$43,569.12 |
$42,369.12 |
|
San Leandro |
89,000 |
$31,752 |
15,876 |
50% |
$65,570.40 |
$49,694.40 |
|
Union City |
69,000 |
$29,244 |
19,500 |
67% |
$29,244 |
$19,500 |
|
Median |
$25,503 |
$15,876 |
67% |
|
|
|
Alameda |
$3,600 |
$1,200 |
|
$40,022 |
$37,622 |
Generally, staff would use total compensation as a measure to set salaries, but is recommending comparing to annual base salary for the Mayor and Councilmember positions due to several factors. Historically, there is a low number of City Councilmembers utilizing City benefits such as medical and dental insurance and not one member of the City Council in recent years has received the maximum Total Compensation amount as shown in the survey for the City. Additionally, given that the stated goal of the ballot measure was to encourage people to run for office who may not otherwise be able to afford it, staff recommends to compare and set salary based on base salary only rather than total compensation as a way of attracting a greater pool of interested candidates.
Based on the salary survey and stated goals of the measure, staff recommends setting the Mayor’s base salary to the maximum allowable by the Charter, which is $28,311 annually, and the City Councilmember’s salary to 67% of the Mayor’s salary, equivalent to $18,968 annually. As shown in the above table, the 67% differential represents the same percentage as the median differential of Councilmember to Mayor salaries of comparable cities.
These salaries are proposed slightly higher than the median presented above because under a new state law governing councilmember salaries for general law cities, which includes the comparable cities of Dublin, Livermore, Pleasanton, and Union City, these other jurisdictions are anticipated to increase their Mayor and Councilmember salaries within the next two years. See Government Code section 36516 and Senate Bill 329 (2023 Cal. Legis. Serv. Ch. 27). Setting the rates slightly higher now allows for the City’s increases to remain consistent with the median of surveyed comparable cities moving forward without the need for further action by City Council.
The impact of the proposed changes for the City is estimated to cost an additional $97,200 per fiscal year, effective July 1, 2023. This recommendation aligns the City with other comparable cities within Alameda County and is consistent with the methods used for setting City employee salary within different job classifications.
Alternatives include using the median base salary of the five surveyed cities for both the Mayor and City Councilmembers; however, the median is unlikely to stay consistent over the next two years due to the new state law discussed above and the median for City Councilmembers would result in an hourly rate, based on 20 hours weekly, of less than Alameda’s current minimum wage.
Another alternative is to set all base salaries at the maximum allowed by the Charter, or $28,311 annually for both the Mayor and Councilmembers. Although this is the most expensive alternative, it goes the furthest to address the goal of providing higher compensation to encourage participation in government for those that may not otherwise have the means.
ALTERNATIVES
• Set the Mayor’s base salary to $28,311 annually and Councilmembers’ base salary to $18,896 annually, retroactive to July 1, 2023, as recommended by staff and outlined in the attached Resolution.
• Set the Mayor and City Councilmember salaries to the median of survey cities at $25,503 and $15,876 annually, respectively, which at an hourly rate (assuming 20 hours per week) is less than the City’s current minimum wage rate.
• Set the Mayor and City Councilmember base salaries to the maximum allowed by the Charter, both at $28,311 annually, which offers the greatest compensation, but is the most expensive option.
• Take no action and continue with City Council pay at its current rate, $3,600 annually for the Mayor and $1,200 annually for City Councilmembers.
FINANCIAL IMPACT
|
|
Total Additional Cost (Annual) |
Total Cost (Annual) |
|
Current: • Mayor: $3,600 • City Councilmember: $1,200 (x4) |
$0.00 |
$8,400 |
|
Recommendation: • Mayor: $28,311 • City Councilmember: $18,968 (x4) |
$97,200 |
$105,700 |
|
Alternative I: • Mayor: $25,503 • City Councilmember: $15,876 (x4) |
$81,800 |
$90,300 |
|
Alternative II: • Mayor: $28,311 • City Councilmember: $28,311(x4) |
$133,100 |
$143,600 |
On June 20, 2023, City Council approved and adopted the City’s Fiscal Years (FYs) 2023-25 Biennial Operating Budget, and these additional personnel costs were not contemplated or included. Staff proposes adopting a resolution reallocating $97,200 each year from the FYs 2023-24 and 2024-25 Non-Departmental operating budget contingency to the City Council personnel budget.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a resolution increasing the Mayor and Councilmember salary in accordance with Alameda City Charter Section 2-1.1 and 2-4 amended by voters in November 2022 to increase the Mayor’s base salary to $28,311 annually and Councilmembers’ base salary to $18,896 annually retroactive to July 1, 2023; and amending the fiscal years 2023-25 Operating budget reallocating $97,200 each fiscal year from non-departmental contingency to City Council personnel budget.
Respectfully submitted,
Jessica Romeo, Human Resources Director
Financial Impact section reviewed,
Margaret O’Brien, Finance Director