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HomeMy WebLinkAboutFS 2013-09-17 Item 2B - Ordinance - Council CompensationTO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Dennis Robertson, Finance and Safety Committee Chair DATE: September 10, 2013 SUBJECT: Ordinance on Council Compensation ISSUE Council compensation has not changed since Ordinance 2023 passed in 2003. It is time to consider changes to both compensation and medical expense reimbursement for Council members. BACKGROUND Basic Council compensation was set at $1,050 /month starting in 2005. It has not changed since. The other elected official in the City of Tukwila, the Mayor, has had his compensation increased by approximately 22% since 2005. Council medical reimbursement was set in 2003 as $3,400 /year which was equal to that of a single employee. It has not changed since. Currently, the cost of a single employee's medical expenses is approximately $5,032 /year. In previous ordinances, Council members were given the choice of two benefit options. The first is reimbursement not to exceed the annual cost of medical insurance for a single employee. The second option was to join the City's self- insured medical and dental plan which is offered to non - represented employees. Both options were intended to cover only the Council member, not the Council member's family members. However, there is information coming to light that indicates the City may not be able to offer a choice to Council members because of new state and federal laws. This issue is currently being reviewed by the Administration and if those findings are ready to be discussed at the October 8 Finance and Safety meeting, a single ordinance including both compensation and benefit choices for Council members may be presented to the entire Council. If the Administration is not ready, then the ordinance will be drafted to omit the reference to benefit choices and only the cash option will be taken forward this year. The issue of providing benefit options will be taken up separately at a future date. DISCUSSION Committee members will review and discuss a proposal to increase Council compensation by 22% per year and Council medical expense reimbursement to $5,032 /year. The issue of Council medical coverage is being researched by the Administration and results may be presented at the Finance and Safety Committee's October 8th meeting. RECOMMENDATION Review of a draft ordinance that would repeal the current ordinance 2357 and establish new compensation levels. If the Committee recommends Council implementation of such an ordinance, the item will be forwarded to the October 8th Committee meeting for discussion of the issue associated with multiple medical expense options. After that a complete ordinance will be forwarded to Committee of the Whole on October 14 for full Council discussion and a motion to approve. ATTACHMENTS Draft Council compensation ordinance. 11 12 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; AMENDING TUKWILA MUNICIPAL CODE SECTION 2.05.010 TO FIX THE AMOUNT OF COMPENSATION FOR COUNCILMEMBERS THROUGH 2017; ESTABLISHING TUKWILA MUNICIPAL CODE CHAPTER 2.05.020 "COUNCIL BENEFITS"; REPEALING ORDINANCE NO. 2357; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. Whereas, Ordinance No. 2023 set basic Council compensation levels for the years 2003 and on; and Whereas, Ordinance No 2023 set Council reimbursement for medical expenses for the year 2003 and on, and Whereas, Councilmembers have not receivedi4 an increase in compensation or medical expense reimbursement since 2005 as set by Ordinance and Whereas, the City Council recognizes that the current economy warrants compensation and medical expense reimbursement higher than that set and Whereas, state law requires that council members must be re-elected to receive an increase they voted on; and Whereas, the City of received compensation increas yor, the other elected official in the jCity of Tukwila, has ce 2005 approximating 22%, and Whereas, medical expense,reimbultement for council members was set in 2003 to approximate the cost of m14101;j:**; for one employee which has increased by approximately by 48% since 2003 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Chapter 2.05 of the Tukwila Municipal Code is hereby amended to read as follows: 2.05.010 Council Compensation A. Monthly compensation levels. Pursuant to the provisions of RCW 35A.12.070 members of the Tukwila City Council shall receive the following monthly compensation during the years listed here according to their position and the date their term of office commences: 13 POSITIONS 1, 3, 5, 7 POSITIONS 2, 4, 6 YEAR 1/1/10 — 12/31/13 (current term of office) and 1/1/14 — 12/31/17 1/1/12 — 12/31/15 (current term of office) and 1/1/16 — 12/31/19 2014 $1,281/month $1,050/month 2015 $1,281/month $1,050/month 2016 2017 $1,281/month $1,281/month $1,281/month $1,281/month POSITIONS 1, 3, 5, 7 POSITIO 2012 and111/12 12/31/15 $1,050/month ggir $1,050/month Namentra 0:02:45.4% *$1,050/month 1511,„ qint, tisk $1,050/month $1,0501month $1,050/month B. Compensatiorgw. At any ime the Tukwila Council compensation rate of increases or medical expense reimbursement falls significantly below that accorded to the Tukwila City Mayor, thc mean of the other ' Iley Communication cities, Tukwila will review the stipends and may increase either Counci 'Stipend accordingly its stipend to the level of those other cities. 14 Section 2. TMC 2.05.020 Council Benefits is hereby established to read as follows: Each member of the City Council, beginning January 1, 2014 shall be eligible for reimbursement from the City for medical expenses for one year including pharmaceuticals, health care, alternative health care, dental, and vision costs; and health and life insurance premiums shall be authorized up to the following limits (which approximates the cost of insurance for one employee) during the years listed here, according to Council Member position and date their term of office commences: POSITIONS 1, 3, 5, 7 POSITIONS 2, 4, 6 YEAR 1/1/10 — 12/31/13 (current term of offic and 1/1/14 — 12/31 1/1/12 — 12/31/15 (current term of office) and 1/1/16 — 12/31/19 2014 $5,032/year 2015 2016 2017 $5,032/year $5,032/year $5,032/year $3,400/year $3,400/year $5,032/year $5,032/year Reimbursements shall be made only upon presentation to the Finance Director of a receipt or other evidence that the expense was actually incurred. Section 3. Repealer. Ordinance No. 2357 "ereby repealed. Section 4. Severability. If any sacirC:ni:subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any parson or situation should be held to be invalid or unconstitutional for any reason by a court competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. 15