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Home My WebLink AboutHR Repeal and Replacement of Ordinance No. 2038 - Council and Mayor____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: 07/21/2025 Disposition: Waived further reading and introduced Ordinance 2050 Agenda Item No: 5.b Meeting Date: July 21, 2025 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Human Resources Prepared by: Marissa Sanchez, Human Resources Director City Manager Approval: ___________ TOPIC: REPEAL AND REPLACEMENT OF ORDINANCE NO. 2038 – COUNCIL AND MAYOR COMPENSATION SUBJECT: INTRODUCTION OF AN ORDINANCE REPEALING AND REPLACING ORDINANCE NO. 2038 TO ADD LANGUAGE UNDER DIVISION 2, PARAGRAPH 3, RELATED TO PAYMENT METHOD FOR COUNCIL COMPENSATION RECOMMENDATION: Staff recommends that the City Council introduce the Ordinance, waive further reading, and refer to it by title only. BACKGROUND: On July 15, 2024, the San Rafael City Council adopted Ordinance No. 2038 to increase monthly compensation for City Councilmembers and the Mayor in alignment with allowable limits under Government Code Section 36516, Government Code Section 36516, as amended by Senate Bill 329 (Dodd). Division 2, Paragraph 3 of Ordinance No. 2038 currently reads: “The City shall continue to offer a full flex cafeteria program for Councilmembers and the Mayor. This compensation shall be paid in the same manner as paid to other officers and employees of the City of San Rafael.” Upon review, staff identified that the second sentence in this paragraph may be misleading or imply a broader entitlement than intended. ANALYSIS: The proposed Ordinance adds a third sentence in Division 2, Paragraph 3 of Ordinance No. 2038 to avoid potential misinterpretation. The current second sentence, “This compensation shall be paid in the same manner as paid to other officers and employees of the City of San Rafael,” may incorrectly suggest that members of the City Council and the Mayor are entitled to all benefit components available to full- time executive or unrepresented employees. One such benefit available to Executive Management employees—the Conditional Opt-Out Payment— is explicitly outlined in the City’s adopted Salary Resolution (Resolution No. 15332). (Resolution No. 15332). That provision allows certain employees who decline City-sponsored health coverage and meet SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 specific conditions under the Affordable Care Act to receive a monthly cash opt-out payment equal to the value of the employee-only health premium. However, this benefit is not available to elected officials. Elected officials do not fall under the same benefit eligibility criteria as full-time employees under the City’s cafeteria plan and, thus, are not entitled to Conditional Opt-Out Payments. Retaining this sentence in the Ordinance could unintentionally imply an equivalency in compensation structures that do not exist and could create confusion in benefits administration. The revised paragraph will now read, with the newly added language in bold and underlined: “The City shall continue to offer a full flex cafeteria program for Councilmembers and the Mayor. This compensation shall be paid in the same manner as paid to other officers and employees of the City of San Rafael, expect for the waiver of health insurance as described below. The Mayor or a Councilmember may elect to waive the City’s medical, dental and vision coverage; however, they would not be eligible to receive the value of the Employee Only contribution as a monthly Opt-Out Payment.” This addition preserves the intent to continue offering health coverage to elected officials while ensuring that any benefit payment practices are accurately represented. FISCAL IMPACT: There is no additional fiscal impact on the City's budget resulting from this action. OPTIONS: The City Council has the following options to consider in this matter: • Introduce the Ordinance as recommended. • Introduce the Ordinance with modifications. • Direct staff to return with additional information. • Take no action. RECOMMENDED ACTION: Staff recommends that the City Council adopt the Ordinance, waive further reading, and refer to it by title only. ATTACHMENTS: 1. Ordinance Repealing and Replacing Ordinance No. 2038 1 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL REPEALING AND REPLACING ORDINANCE NO. 2038 TO ADD LANGUAGE UNDER DIVISION 2, PARAGRAPH 3, RELATED TO PAYMENT METHOD FOR COUNCIL COMPENSATION THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 1. FINDINGS. WHEREAS, pursuant to Article VI, Section 9 of the City of San Rafael Charter, Council compensation may be adjusted by ordinance in an amount not to exceed that allowed for by general state law. The last salary adjustment was adopted in April 1990. WHEREAS, on June 29, 2023, the Governor approved Senate Bill No. 329 (Dodd) (“SB 329”), amending Government Code Section 36516, which permits a city council to set by ordinance their salaries up to a maximum amount, based upon the population of the city. The increases authorized by SB 329 are designed to address recent inflationary increases and economic realities, “enable city councilmembers to balance their careers and personal obligations with the calling to serve their community,” and “also make it easier for members of marginalized communities to serve.” WHEREAS, in articles about the bill Senator Dodd said the following, "By allowing councils to adjust their maximum pay to reflect inflation, my bill will remove barriers to achieving more equitable representation in local government." The California Chapter of the NAACP also supported the bill. WHEREAS, in accordance with Government Code Section 36516.1, and elected mayor may be provided compensation in addition to which they receive as a council member and that additional compensation may be provided by city council ordinance. WHEREAS, in accordance with Government Code Section 36516.5, a change in compensation does not apply to a council member during the council member's term of office, but may take effect for all members of a council serving staggered terms whenever one or more members of the city council begins a new term of office. Additional compensation for an elected mayor may take effect during the mayor’s current term. WHEREAS, as part of its analysis, staff also looked at the compensation of mayors and city councilmembers in those jurisdictions considered “comparable” as defined in the labor agreements for the non-safety bargaining groups. It was determined that the “market” average for city council members was $1,516 per month and $2,357 per month for mayors. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 2. ADJUSTMENT TO COMPENSATION. 2 1. The salary for each Councilmember shall be increased from $468 to $1,516 per month. This salary increase shall become effective the first pay period after one or more members of the City Council begins a new term of office. 2. The compensation of the Mayor shall increase from $702 per month to $2,357 per month. This salary increase shall become effective the first pay period after one or more members of the City Council begins a new term of office. 3. The City shall continue to offer a full flex cafeteria program for Councilmembers and the Mayor. This compensation shall be paid in the same manner as paid to other officers and employees of the City of San Rafael, expect for the waiver of health insurance as described below. The Mayor or a Councilmember may elect to waive the City’s medical, dental and vision coverage; however, they would not be eligible to receive the value of the Employee Only contribution as a monthly Opt-Out Payment. 4. Thereafter, the salaries shall be adjusted by ordinance of the City Council in amounts not to exceed that allowed by general state law. DIVISION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). The City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the adoption of this Ordinance or its implementation would have a significant effect on the environment (14 Cal. Code Regs. Section 15061(b)(3)). DIVISION 4. REPEAL AND REPLACEMENT This Ordinance hereby repeals and replaces Ordinance No. 2038. DIVISION 5. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordi- nance. The Council hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. DIVISION 6. EFFECTIVE DATE; PUBLICATION. A summary of this Ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to the Council meeting at which it is adopted. This Ordinance shall be in full force and effect thirty (30) days after its final passage, and the summary of this Ordinance shall be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in the Marin Independent Journal, a newspaper of general circulation published and circulated in the City of San Rafael, Marin County, State of California. 3 Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City Clerk a certified copy of the full text of this Ordinance, along with the names of those Councilmembers voting for or against the Ordinance. THE FOREGOING ORDINANCE was first read and introduced at a regular meeting of the San Rafael City Council on the 21st day of July 21, 2025, and was passed and adopted at a regular meeting of the San Rafael City Council on the 18th of August 2025 by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: KATE COLIN, Mayor ATTEST: LINDSAY LARA, City Clerk