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Home My WebLink AboutCM Compensation Witholding for CM & Finance DirectorAgenda Item No: Meeting Date: April 6, 2009 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Management Services Prepared by: Jim Schutz, L City Manager Approval:, Assistant City Manager SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DIRECTING THE CITY MANAGER AND THE CITY FINANCE DIRECTOR TO WITHOLD FIVE (5%) PERCENT OF THE MONTHLY COMPENSATION OF THE MAYOR AND COUNCILMEMBERS DURING FISCAL YEAR 2009-2010 AND TO DONATE SAID FUNDS INTO THE CITY'S GENERAL FUND RECOMMENDATION: The City Council is directing the City Manager and Finance Director to adopt the attached Resolution withholding five (5%) percent of the monthly compensation of the Mayor and Councilmembers for Fiscal Year 2009-2010 and to donate said funds into the City's General Fund. BACKGROUND: The Mayor and Councilmembers have not received a compensation increase since City Ordinance No. 1589 on April 16, 1990. This Ordinance sets the Mayor's compensation rate at $702 per month and Councilmembers at $468 per month paid in the same manner as paid to other officers and employees of the City of San Rafael The City is currently experiencing a significant budget deficit due to the on-going, severe recession. The City Council has taken numerous steps to address this budget deficit and will continue to take necessary actions. On March 16, 2009, the City Council adopted a Resolution approving a Recession Action Plan and an Economic Vitality Plan to set forth additional specific actions to investigate and/or implement to address the City's budget deficit. One such action included in the Plan is to control costs by analyzing compensation levels and another is to develop a furlough plan. FOR CITY CLERK ONLY File No.: Council Meeting: Disposition: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 As a part of the same Resolution, the Council directed staff to implement an employee work furlough program for Fiscal Year 2009-10. Full use of the furlough program would result in a five (5%) percent pay reduction for employees of those bargaining units with furlough language in their contracts. The Mayor and Councilmembers have elected to participate with those City employees and officers in a pay reduction of 5% percent for Fiscal Year 2009-10. ANALYSIS: The action will reduce the compensation rate for the Mayor from $702.00 to $666.90 per month and the rate for each Councilmember will be reduced from $468 to $444.60 per month paid in the same manner as paid to other officers and employees of the City of San Rafael. This reduction in pay is effective for one year only. As of July 1, 2010, the compensation rates will return to the rate set in Ordinance No. 11585 on April 16, 1990 Separate actions on tonight's Council agenda will have the effect of also reducing salaries by five (5%) percent for the elected City Clerk and City Attorney, the Management unit, and the Mid -Management unit — among other changes to those Resolutions. FISCAL IMPACT: The action will result in a savings to the City of San Rafael of approximately $1,500 for the fiscal year. OPTIONS: 1. Accept the decrease in compensation of the Mayor and Councilmembers by 5% for Fiscal Year 2009-2010; or 2. Deny the proposed reduction in salary. ACTION REQUIRED: Adopt Resolution directing the City Manager and Finance Director to withhold 5% percent of the monthly compensation of the Mayor and Councilmembers during Fiscal Year 2009-2010. RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DIRECTING THE CITY MANAGER AND CITY FINANCE DIRECTOR TO WITHHOLD FIVE (5%) PERCENT OF THE MONTHLY COMPENSATION OF THE MAYOR AND COUNCILMEMBERS DURING FISCAL YEAR 2009-10 AND TO DONATE SAID FUNDS INTO THE CITY'S GENERAL FUND WHEREAS, the compensation for the Mayor and City Councilmembers has not increased in almost 20 years since April 16, 1990; and WHEREAS, on April 16, 1990, the Council adopted Ordinance No. 1589 which set their compensation, as of January 1, 1990, at $702 per month for the Mayor and $468 per month for Councilmembers; and WHEREAS, the City is facing a significant budget deficit based on the severe national recession; and WHEREAS, the City Council has taken numerous actions to reduce the deficit and will continue to take necessary actions; and WHEREAS, the City Council has approved use of a work furlough program for those bargaining units with furlough language in their contracts which would result in a maximum .5% pay reduction for fiscal year 2009-2010; and WHEREAS, the elected City Attorney and the elected City Clerk have also chosen to reduce their compensation by 5% for fiscal year 2009-2010; and WHEREAS, the Mayor and Councilmembers recognize the serious financial difficulties that the City faces and they desire to acknowledge, recognize, and participate with fellow employees and officers of the City in the pay reduction; and WHEREAS, while the Mayor and City Council understand that their salaries are set by Ordinance and can only be changed by Ordinance, they agree to voluntarily donate 5% of their monthly salaries to the City's General Fund for the next fiscal year and direct staff to implement this donation. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: that the Mayor and the City Council direct the City Manager and Finance Director, or other responsible staff members, to withhold a total of five 5% percent from each of their monthly salaries for the entire Fiscal Year 2009-2010 and to donate said monies to the City's General Fund for general operating expenses. After the 2009-2010 Fiscal Year, the compensation of the Mayor and City Council will go back to their rates set in 1990 of $702 per month for the Mayor and $468 per month for Councilmembers. I, Esther C. Beirne, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 6th of April, 2009, by the following vote, to wit: AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: ESTHER C. BEIRNE, City Clerk