FROM: Robert Thompson, General Manager
Wally Ritchie, Director of Finance
SUBJECT:
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BOARD OF DIRECTORS COMPENSATION
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RECOMMENDATION
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RECOMMENDATION:
Consider the automatic five percent (5%) increase to Board Member Compensation in accordance with Ordinance No. OC SAN-62, effective January 1, 2025.
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BACKGROUND
Ordinance No. OC SAN-62 was adopted on September 27, 2023, establishing the Board of Directors compensation at $300 per meeting or day of service, an increase from the previous compensation of $212.50 per meeting or day of service which became operative in January of 2008. Each Director may receive compensation for up to six meetings/days of service per month; and the Board Chairperson may receive compensation for up to 10 meetings/days of service per month.
A survey was recently updated for Directors' compensation of local special districts similar to the Orange County Sanitation District (OC San). The results of the survey are included below.
Current legislation allows the per meeting/day stipend to be increased by an amount not to exceed 5% of the present compensation for each calendar year following the operative date of the last increase. OC San Ordinance No. OC SAN-62 states that on January 1 of each year, the amount of compensation shall increase by 5% unless said increase is waived by the Board of Directors.
RELEVANT STANDARDS
* Comply with transparency and communication requirements, including the Brown Act
* Comply with Health & Safety Code 4733; Water Code 20201
* Offer competitive compensation and benefits
PROBLEM
The Board of Directors meeting/day stipend of $300 is set to increase by 5%, to $315, on January 1, 2025 and requires consideration by the Board to either take no action and allow the increase or take action to waive the increase.
PROPOSED SOLUTION
In accordance with Ordinance No. OC SAN-62, allow the per meeting/day stipend to increase by 5% to $315.00 on January 1, 2025.
TIMING CONCE...
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