REPORT TO THE CITY COUNCIL
FROM: TJ MILLER, Interim Director
Personnel Services Department
BY: JENNIFER MISNER, Assistant Director
Personnel Services Department
SUBJECT
Title
Actions pertaining to adopting the ordinances related to compensation and benefits for city employees and charter officials
1. ***Bill B-38 (Intro’d 11/17/2022) (For Adoption) -Amending Ordinance No. 2022-22 of the Fresno Municipal Code and Adopting an Ordinance Setting Forth the Compensation of Elective Officers (Subject to Mayor’s Veto)
2. ***Bill B-39 (Intro’d 11/17/2022) (For Adoption) -Amending Ordinance No. 2017-10 of the Fresno Municipal Code and Adopting an Ordinance Related to Reimbursement of Expenses for Elected Officials (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends that Council adopt the items above related to compensation and benefits for City charter officials.
EXECUTIVE SUMMARY
As part of a review of Unrepresented employee compensation and benefits, staff has identified two areas related to elected official compensation and benefits that suggested revisions were appropriate. As such, staff conducted research of other jurisdictions to determine if elected officials are allowed to participate in the jurisdiction’s retirement system and what options might be available to Fresno elected officials since they are not allowed to participate in the Retirement Plan pursuant to Plan rules. In addition, it was discovered that the monthly auto and miscellaneous allowances have not increased since at least 1989.
BACKGROUND
1. Amendment to Ordinance 2022-22 and Adopting Ordinance Setting Forth Compensation of Elected Officials
Under the Plan rules, Elected Officials are prohibited from participating in the City’s Retirement System. Research indicates that many cities allow their elected officials to participate in their retirement plan (of the 11 cities used in the Benchmark Cities Comparative Elected Officials Compensation Survey, Anaheim, Long Beach, Oakland, Riverside, Sacramento, San Jose, and Santa Ana, allow elected officials to participate in the retirement plan. In addition, Los Angeles and San Francisco also allow Elected Official participation. Fresno’s Deferred Compensation Plan does not prohibit Elected Officials from participating. As such, staff is recommending that the City contribute an amount to the Mayor and Councilmembers at a comparable percentage (11%) as if they were in the City’s retirements system and the City were making contributions as it does for employees, in the amounts as follows:
(a) Beginning January 1, 2023, the City shall contribute up to $10,120 annually for each elected official participating in the Plan.
(b) Beginning January 1, 2024, the City shall contribute up to $11,132 annually for each elected official participating in the Plan.
(c) Beginning January 1, 2025, the City shall contribute up to $12,245 annually for each elected official participating in the Plan.
Any elected officials who is a retiree and drawing retirement payments from the City’s retirement plan do not qualify for City contributions to the Deferred Compensation Plan.
2. Amendment to Ordinance 2017-10 and Adopting Ordinance Related to Reimbursement of Expenses for Elected Officials
Since at least 1989, the Mayor and Councilmembers have been reimbursed for expenses incurred on City business. The amount of reimbursement has been set at the same level since at least 1989. Staff is recommending that the monthly car and monthly general and miscellaneous expense allowance be increased to reflect increase costs.
For Car and Travel Allowance, the monthly allowance would be increased to $500 for the Mayor and $450 for councilmembers. For General and Miscellaneous Expense Allowance, the amounts would be increased to $850 per month for the Mayor, to $843.75 per month for the Council President and $750 per month for Councilmembers. For car and travel allowance, these amounts reflect cost of living increases from 1989 to the present according to the Bureau of Labor Statistics inflation calculator. For General and Miscellaneous Expense Allowance, the new amount reflects an increase from $42 per day in meals to the process outlined in AO 1-4, which utilizes the GSA per diem rate for meals (currently $64 per day x 3 days per week (average)).
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a “project” and is therefore exempt from the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference is not implicated because this item does not involve public contracting or bidding with the City of Fresno.
FISCAL IMPACT
Any increases in expenditures will be absorbed in existing Budget appropriations.