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DRAFT MINUTES Page 12 City of San Leandro City Council and San Leandro Redevelopment Agency Joint Meeting-December 4, 2006 provided clarification on the description and location of the property and confirmed that it is related to the Eden Road improvement plan. M/S/C Grant and Santos. Ayes: 7; Noes: 0 8.G. Matter of Consideration of Ordinances Increasing City Council Salaries. Councilmember Stephens expressed confidence that the City Council would demonstrate positive leadership and a good example to the community. He commented on his recent dissenting vote on the restoration of several budget items which he wanted but felt the City could not afford. Councilmember Stephens made a motion to pass to print the ordinance with an amendment to the wording of Section 3 of the ordinance to read," Section 1 of this ordinance shall not be operative until such time as a balanced City budget is approved by the City CounciL A balanced budget shall reflect revenues and expenditures that will be equal, without the use of reserves to fW1d ongoing expenses." The motion was seconded by Councilmember Nardine. Mayor Young noted that the City Council salaries are set according to the provisions of the Government Code and can only be increased every two years by a Council that will not be subject to the salary increase. She stated that while she agrees with Councilmember Stephens in principle, these other factors should be considered. Councilmember Nardine asked why the matter was not brought to the Council two years ago, which was the last time it was eligible to be considered. Mayor Young commented that prior to the 2004 election, she understood that the matter had to have been proposed by an outgoing Cow1cilmember, and it did not happen. Mayor Young indicated that since that time, she has learned that any Councilmember may bring the matter forward. Councilmember Nardine questioned why the matter is coming to the Council at this late date and on the Consent Calendar. She commented that to her knowledge, the item was not placed on the agenda by a member ofthe Council. City Manager Jermanis commented that in 2004, Council salary increases were not considered because the City was going through budget difficulties, and employees were asked to forego pay increases. He stated that he placed the item on the Consent Calendar because he felt the Council might find it awkward to initiate such an action. Mr. Jermanis noted that the City is now in an improved financial position, and City employees will receive a raise in January 2007. If the Council does not adjust salaries now, in two years the increase will be 30%. Mr. Jermanis suggested that the Council have future discussions on the matter and that the matter come back to the Council regularly every two years for consideration. He indicated that the City Charter provides that the City Council will receive increases in the same manner as a general law city and the Government Code allows City Council salaries in general law cities to increase by 5% annually. However, if the Council does not act now, it must wait two years for the next opportunity. 12