REPORT TO COUNCIL
SUBJECT
Title
Note and File the Resolutions of the Salary Setting Commission Increasing the Salary for the positions of Mayor and City Council Member, and City Clerk by Approximately 10% for the period of July 1, 2025 to June 30, 2027, and Setting the Benefits for the Position of Police Chief to Align with the Unit 9A Memorandum of Agreement, and Increasing the Salary for the position of Police Chief by 2.5% to $353,686.56 annually; and Action to Adopt a Resolution Approving and Adopting the Updated Unclassified/Elected Salary Plan for the positions of Mayor and City Council Member, City Clerk, and Police Chief for the Period of July 1, 2025 through June 30, 2027
Report
COUNCIL PILLAR
Enhance Communication Engagement and Transparency
BACKGROUND
The Salary Setting Commission, consisting of five members appointed by the Civil Service Commission, is responsible for establishing the compensation for the Mayor and Council Members (Charter Section 702), City Clerk (SCCC 2.20.015), and Police Chief (SCCC 2.80.015). For 2025, four Commissioners attended all scheduled meetings. The fifth commissioner did not attend any sessions and resigned from the Commission.
In its evaluation, the Salary Setting Commission would be free to utilize any data and information that it deemed appropriate in setting the compensation for these positions, but in no event would any increases in salary granted by the Commission exceed 10 percent of the previous figure. After completing its discussion and analysis, the Commission adopted three separate Resolutions.
When there are changes to the compensation, California Code Regulations Section 570.5 governs and requires the adoption of updated publicly available salary schedules by the governing body. The City of Santa Clara contracts with the California Public Employees’ Retirement System (CalPERS) to provide retirement benefits for employees in both classified and unclassified positions. When modifications are made to the salary schedules for its classified or unclassified positions, the City Council must approve and adopt the publicly available salary plans to comply with California Code of Regulations (CCR) section 570.5. If the City Council does not approve these resolutions, the City will be non-compliant with CalPERS record keeping and reporting requirements. The City of Santa Clara is a contracting agency with CalPERS and is required to comply with its requirements.
As an elected department head, not subject to the Meyers-Milias-Brown Act, the Police Chief qualifies as a “local agency executive” under Government Code §3511.1. Government Code §54953(c)(3) requires that before taking final action (in this case, to approve the updated salary schedules) there shall be an oral report provided of the new compensation level.
DISCUSSION
The Commission met from February 2025, through April 2025, to discuss the salaries for the position of Mayor and City Council Members, City Clerk, and Police Chief for the period of July 1, 2025, up to and including June 30, 2027. As part of this evaluation, the Commission was presented with information including, but not limited to: the history of salary increases for these positions; comparator agency salary levels; requirements for the position of the City Clerk and Police Chief under the City Charter; and recently negotiated agreements the City’s bargaining units. Upon thorough review and consideration of the various data, the Commission approved three resolutions.
On March 3, 2025, the Commission approved a resolution with the following changes:
• The Commission approved to increase the salary for the position of Mayor from $2,500 to $2,625 per month for the period of July 1, 2025, to June 30, 2026. The salary shall be increased to $2,750 per month for the period of July 1, 2026, to June 30, 2027.
• The Commission approved a resolution to increase the salary for the position of City Council Member from $2,000 to $2,100 per month for the period of July 1, 2025, to June 30, 2026. The salary shall be increased to $2,200 per month for the period of July 2026, to June 30, 2027.
On March 17, 2025, the Commission approved a resolution with the following changes:
• For the position of City Clerk, the salary shall be increased from $1,500 to $1,575 per month for the period of July 1, 2025, to June 30, 2026. The salary shall be increased to $1,650 per month for the period of July 1, 2026, to June 30, 2027.
On April 7, 2025, the Commission approved a resolution with the following changes:
• For the position of Police Chief, the salary shall be increased by 2.5% from $345,060 to $353,686.50 for the period of July 1, 2025, to June 30, 2027. It should be noted, that the resolution references an annual salary of $353,686.50. Due to rounding in the HRIS, the final salary will be $353,686.56.The position of Police Chief shall receive benefits equivalent to those currently received by members of the Unclassified Police Management Unit (9A) Memorandum of Understanding set to expire on December 31, 2025, and to align with any changes to such benefits in the Memorandum of Understanding effective on January 1, 2026, in the following categories: Cash in Lieu, Deferred Compensation, Dental Insurance, Flexible Spending Account, PDA/Smart Phone Stipend, POST Premium Pay, Retiree Medical Reimbursement Benefit, Uniform Allowance, Vision Insurance, and VEBA (excluding the Unit 9A vote). Further, any accrued leave balances held by the Police Chief shall continue to be frozen as of the date he/she takes office.
The City Code allocates the right and responsibility for reaching this decision to the Salary Setting Commission. The City Council does not have the legal authority to overturn or modify this decision. However, the City Code does state that “The City Council shall take all necessary legislative action to implement the salary set by the Salary Setting Commission.” In accordance with CalPERS regulations, the adoption of an updated salary schedule is a necessary legislative action.
The recommendation includes to note and file the Commission’s Resolutions, and separately approve a Resolution that amends the Unclassified/Elected Salary Plan for the positions of Mayor, Councilmember, City Clerk, and Police Chief.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The additional cost for providing the increases to the positions of Mayor, Council Member, City Clerk, and Police Chief are outlined below, including salaries and benefits.
|
Position |
FY 2025/26 |
FY 2026/27 |
|
Mayor |
$2,050 |
$4,016 |
|
City Council Member |
$9,419 |
$18,497 |
|
City Clerk |
$1,230 |
$2,409 |
|
Police Chief |
$40,748 |
$40,748 |
Funding for the incremental increase for the Police Chief is incorporated into the FY 2025/26 Proposed Operating Budget that will be brought forward for Council Approval in June 2025. Increases for the Council Offices and City Clerk will be brought forward as part of the FY 2025/26 Adopted Operating Budget process.
COORDINATION
This report has been coordinated with the City Attorney’s Office and the Finance Department.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov.
RECOMMENDATION
Recommendation
1. Note and file the Resolutions of the Salary Setting Commission establishing the salary for the positions of Mayor and Councilmember, City Clerk, and Police Chief; and
2. Adopt a Resolution to approve the revised Unclassified/Elected Salary Plan for the positions of Mayor and City Council Member, City Clerk, and Police Chief, which reflects the salary increase granted by the Salary Setting Commission, to satisfy the requirements of California Code of Regulations Section 570.5, effective July 1, 2025.
Staff
Reviewed by: Aracely Azevedo, Director of Human Resources
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Resolution No. 25-1 of the Salary Setting Commission Setting the Compensation of the Mayor and City Council Members
2. Resolution No. 25-2 of the Salary Setting Commission Setting the Compensation of the City Clerk
3. Resolution No. 25-3 of the Salary Setting Commission Setting the Compensation of the Police Chief
4. Unclassified Elected Salary Plan (eff 7-1-2025) approved 5-13-2025
5. Resolution Updated Unclassified Salary Plan (for 5-13-25)