COUNCIL AGENDA:	5-20-03
itEM:	3.4

To:	HONORABLE MAYOR AND	From:	Patricia L. O’Hearn
	CITYCOUNCIL		City Clerk
Subject:	Council Salary Setting Commission	Date:	May 8, 2003
	Bi-Annual Salary Recommendation

San Jose City Charter Section 407 requires that the Council Salary Setting Commission recommend a salary for the members of the City Council, including the Mayor, for the two year period commencing July 1^st of each odd-numbered year. Attached for your consideration is the Commission’s April 16, 2003 letter listing its recommendations for the period July 1, 2003 through June 30, 2005.

Patricia L. O’Hearn

City Clerk

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CITY COUNCIL SALARY SETTING COMMISSION

Priscilla G. Siersema, Chair

Nedra C. Jones, Vice Chair

Philip A. Barone

Thomas E. Cochran

Kim Ann Skeen

April 16, 2003

Honorable Mayor and City Council Members

City of San Jose

801 N. First Street

San Jose, CA 95110

RE: Report and Recommendations of the City Council Salary Setting Commission

Honorable Mayor and Council Members:

City Charter Section 407 requires that the Council Salary Setting Commission recommend salary levels for the Mayor and Members of the City Council for a two year period beginning on July 1 of 2003. In accordance with the Charter, the Commission at its April 2, 2003 meeting, made the following recommendations:

Recommendations

1. For the Mayor, an increase of 6% for the period of July 1, 2003 through June 30, 2004 for a salary of $111,300 and an increase of 6% for the period of July 1, 2004 through June 30, 2005 for a salary of $117,978 is recommended.

2. For each City Council Member, an increase of 6% for the period of July 1, 2003 through June 30, 2004 for a salary of $79,500 and an increase of 6% for the period of July 1, 2004 through June 30, 2005 for a salary of $84,270 is recommended.

3. That the retirement, medical, dental and life insurance benefits currently in effect shall continue unchanged.

4. That the Council Members continue to be required to pay the sum of $250 for unexcused, missed meetings, pursuant to City Charter Section 407.

5. That the current automobile allowance of $350 per month be increased for the Mayor and Council Members to $600 per month.

6. That the City explore, as soon as possible, implementation of a program that provides continued health and dental benefits to all Mayor and Council Members who leave City service. The Commission recommends that a City elected official after 5 years of service on the City Council should have the opportunity to purchase continued group health coverage at no cost to the City for an indefinite period after leaving City service.

Discussion

In reaching its recommendations, the Salary Setting Commission conducted one public hearing as provided by the City Charter on March 19, 2003. During its meetings and deliberations, the Commission reviewed the testimony and information provided by Members of the Council, City Administration and City staff. The Commission reviewed and considered a report entitled City Council/Mayoral Salary Comparison – 2003 Final Report prepared by Wendy J. Chang, a research assistant to Dr. Terry Christensen, at San Jose State University.

A. Salary Recommendations

The Commission concluded that the recommended increase for the Mayor and City Council Members was justified based on the City Charter requirements, the information provided during the Commission meetings and the municipality survey report by Ms. Chang. There was general acknowledgement by a majority of the Commission members that the salaries of the Mayor and Council Members were low and that City elected officials were “worth” much more than current salaries when their many responsibilities, duties and obligations were considered. Although it understood the current difficult budgetary circumstances of the City, the Commission concluded that its charge under the City Charter requires that the salary recommendations be based on factors such as the full time nature of the offices and which is commensurate with the salaries being paid other public or private positions having similar duties, responsibilities and obligations. The Commission also considered the high cost of living in San Jose and the Bay Area.

The percentage increases for the Mayor and Council Members indicate the Commission’s intent to maintain a minimum level of salary in accordance with the City Charter and a desire that future salary levels should be increased to levels which are appropriate for elected officials of the Nation’s eleventh largest city.

B. Other Recommendations

1. Automobile Allowance

The current automobile allowance of $350 for the Mayor and Council Members has not changed since 1986. The Commission acknowledged that the costs of vehicles, fuel, insurance and maintenance have increased significantly since 1986. Additionally, with the complexities of representing Council Districts which have approximate populations of 90,000, the amount of business-related automobile travel has also increased. Therefore, the Commission concluded that a $600 per month automobile allowance was an appropriate amount and was comparable to the average amount being paid by private industry in this region.

2. Health and Dental After City Service

Currently, City elected officials who leave City service have the opportunity to purchase continued group health coverage (COBRA) at both the City and employee’s portion of the costs plus a 2% administrative fee for a period up to 36 months. The Salary Setting Commission concluded that a City elected official after 5 years of service on the City Council should have the opportunity to purchase continued group health coverage at no cost to the City for an indefinite period after leaving City service. The Commission has been made aware that options for health coverage subsequent to public service on the Council is often difficult to obtain. Many of the exiting Council Members do not necessarily go on to other full-time employment options that may provide for health coverage. Others are of an age that make purchasing into options quite cost prohibitive. In its data gathering and interviews with the Council Members, it has become clear that this is a growing concern. Therefore, the Commission recommends that the City explore and study the feasibility of implementing such a program.

Conclusion

The Salary Setting Commission hereby submits its recommendations to the Mayor and City Council in accordance with the City Charter. The Members of the Commission appreciated the input and testimony of Vice Mayor Pat Dando, Council Members Forrest Williams, Chuck Reed, Linda J. LeZotte, Terry O. Gregory, Nora Campos, Budget Director Larry Lisenbee, County Assessor Larry Stone, San José State University Professor Terry Christensen, SJSU Research Assistant Wendy J. Chang, and Civil Service Commission Chairman Bill Brill. The Members of the Commission also appreciated the assistance of City staff members, Assistant City Clerk Nancy Alford, Commission Secretary Ann Stults and Chief Deputy City Attorney Norm Sato.

Respectfully submitted,

Priscilla G. Siersema, Chair