Staff Report
PREPARED BY: ROBERT SCHULTZ
Town Attorney
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 01/16/2018
ITEM NO: 12
DATE: JANUARY 10, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: ROBERT SCHULTZ, TOWN ATTORNEY
SUBJECT: CONSIDERATION AND INTRODUCTION OF AN ORDINANCE OF THE TOWN
OF LOS GATOS AMENDING SECTIONS 2.20.025 OF THE TOWN CODE TO
INCREASE TOWN COUNCIL SALARIES FROM $200 PER MONTH TO $570 PER
MONTH, EFFECTIVE JANAURY 1, 2019
RECOMMENDATION:
Staff recommends that Town Council accept public comment and then move for introduction
and first reading of an Ordinance, by title only, amending Section 2.20.025 of the Town Code to
increase Town Council salaries from $200 per month to $570 per month, effective January 1,
2019.
BACKGROUND:
At the December 5, 2017 Town Council meeting, Council reviewed its compensation levels to
determine if the current compensation levels are fair or if an adjustment is appropriate. After
receiving public comment and deliberating, the Town Council directed staff to return with an
ordinance amendment to increase Council compensation to $570 a month.
DISCUSSION:
Currently, Town Council members receive bi-monthly compensation in the amount of $75.00
and an auto allowance in the amount of $25.00 for a total of $200 per month. Town Council
members also have the opportunity to receive medical, dental, and retirement benefits, but
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SUBJECT: AN ORDINANCE OF THE TOWN OF LOS GATOS AMENDING SECTIONS 2.20.025
OF THE LOS GATOS TOWN CODE TO INCREASE TOWN COUNCIL SALARIES
FROM $200 PER MONTH TO $570 PER MONTH, EFFECTIVE JANAURY 1, 2019
DATE: JANUARY 10, 2018
DISCUSSION (cont’d):
these amounts are not included for purposes of determining compensation under Government
Code Section 36516.
Government Code Section 36516 allows for a Council compensation increase which “shall not
exceed an amount equal to five percent for each calendar year from the operative date of the
last adjustment of the compensation in effect when the ordinance or amendment is enacted.
No ordinance shall be enacted or amended to provide automatic future increases in
compensation.” In other words, the law allows for a cost of living adjustment to be applied
each year, but the Town cannot provide automatic future increases in compensation.
Pursuant to Government Code Section 36516, the Town Council may not increase its
compensation by more than 5%, non-compounded per year, since the effective year of the last
adjustment. Council’s salary was last adjusted in 1981 when it granted a car allowance of
$50.00. Therefore, the maximum increase allowed under State law is 185% (5% x 37 years) and
the maximum permitted compensation for the Town Council would be $ 570 per month (the
existing $200 plus the aggregated $370).
Pursuant to Government Code Section 36516.5, any change in compensation adopted by
ordinance would not take effect until the start of a new term of any one Council member,
including Council members who may be re-elected. The start of a new term would occur in
December of 2018, following certification of the election results.
CONCLUSION:
Staff recommends that the Town Council adopt the attached draft Ordinance (Attachment 2)
amending Section 2.20.025 of the Town Code to increase Town Council salaries from $200 per
month to $570 per month, effective January 1, 2019.
COORDINATION:
The preparation of this report was coordinated with the Town Manager’s Office and the
Finance Department.
FISCAL IMPACT:
If the Council approves the proposed ordinance, funds will be included in the Fiscal Year
2018/19 and subsequent operating budgets.
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SUBJECT: AN ORDINANCE OF THE TOWN OF LOS GATOS AMENDING SECTIONS 2.20.025
OF THE LOS GATOS TOWN CODE TO INCREASE TOWN COUNCIL SALARIES
FROM $200 PER MONTH TO $570 PER MONTH, EFFECTIVE JANAURY 1, 2019
DATE: JANUARY 10, 2018
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Red-lined Code Sections
2. Draft Ordinance