CC SR 20240319 I - SBCCOG Rate IncreaseCity of Rancho Palos Verdes
CITY COUNCIL MEETING DATE: 03/19/2024
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action on the South Bay Cities Council of Governments
(SBCCOG) proposed dues increase.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file Notice of Intent to Consider an annual dues increase to member
cities of SBCCOG;
(2)Approve the SBCCOG’s proposed dues increase of 3.5% for FY 2024-25 based
on the Consumer Price Index (CPI) and an annual CPI increase every fiscal year,
following the respective annual CPI, with a cap (a maximum increase limit) of 5%;
and,
(3)Direct Staff to notify the SBCCOG of the City Council’s approved dues increase
before the April 25, 2024 Board Meeting
FISCAL IMPACT: Tonight’s report will not have an impact on the current fiscal year;
however, if SBCCOG’s dues increase is approved at the April 25,
2024 Board of Director’s meeting, there will be an increase of 3.5%
in Fiscal Year 2024-25 over the FY 2023-24 budget allocation, which
will be included as part of the budget development process.
Amount Budgeted: $20,301
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Shaunna Hunter, MPA, Administrative Analyst
REVIEWED BY: Same as below
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. SBCCOG’s Notice of Intent to approve dues increase, (page A-1)
B.Finance Committee report to SBCCOG, Meeting February 12, 2023 (page B-1)
C.SBCCOG Bylaws provision IX B (page C-1)
D.SBCCOG Dues Increase Memo and Calculation Sheet, March 26, 2015 (page-D)
E.Dues proposal memo SBCCOG, June 6, 2023 (page-E)
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BACKGROUND:
On February 22, 2024, the SBCCOG Board of Directors approved a dues increase based
on CPI not to exceed 5% annually (Attachment A). This dues adjustment would go into
effect in FY 2024-25. The SBCCOG Finance Committee recommended a dues increase
calculation and presented its report to the Steering Committee on February 12, 2024
(Attachment B) which was approved and forwarded to the Board of Directors on February
22, 2024.
In accordance with SBCCOG bylaws section IX B (Attachment C), a Notice of Intent to
increase dues must be filed 60 days prior to any proposed action taken by the Board of
Directors. This notice was heard on February 22, 2024, and was approved by the Board
to move forward for consideration at the April 25, 2024 SBCCOG Board of Directors
meeting.
The current dues calculation was established unanimously in 2000 and is based on
population and general fund budget of each organization. At that time, the minimum dues
amount per agency was established at $3,500. In FY 2023-24, the City of Rancho Palos
Verdes dues for membership were $17,051. Additionally, the City paid a special
assessment of $3,250 for a regional planner, resulting in a total membership cost of
$20,301 in FY 2023-24. The proposed membership dues with a 3.5% CPI increase for
FY 2024-25 are $21,012. SBCCOG has considered dues increases in the past to adjust
for rising inflation costs (Attachment D) and has considered reducing membership dues
for a single agency in 2023 (Attachment E).
CONCLUSION:
Staff recommends the City Council approve SBCCOG’s proposed dues increase.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available for
the City Council’s consideration:
1. Direct Staff send notice to SBCCOG of our intent to withdraw membership per the
guidelines established in the Joint Powers Agreement bylaws (attachment C-1).
2. Do not approve the proposed dues increase and request the SBCCOG Board of
Directors to reconsider the increase.
3. Take other action, as deemed appropriate.
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South Bay Cities Council of Governments
February 28, 2024
TO: SBCCOG Member Agencies
FROM: SBCCOG Board of Directors
SUBJECT: 2024-2025 Dues – Notice of Intention to Consider an Increase in Dues
BACKGROUND
The Finance Committee has reviewed the dues and brought their recommendations to the February
Steering Committee. The Steering Committee concurred with their recommendation. The Board of
Directors approved the recommendation at the February 22 meeting.
Dues Calculation
FY 2024-25 dues will be based on the total amount paid to the SBCCOG for FY2023-2024 with an
increase using the annual 2023 CPI of 3.5%. Additionally, there would be an annual CPI increase
every fiscal year, following the respective annual CPI, with a cap (a maximum increase limit) of
5%.
Bylaws Notification
In order to comply with the SBCCOG By-Laws, if there is going to be a dues increase, there needs
to be a notice of intention to increase the dues sent 60 days before such an action.
The actual Bylaws provision reads as follow: Dues. The Members of the Council shall be
responsible for the payment to the Council annually, of dues and the amounts periodically
budgeted by the Governing Board, as and for the operating costs of the Council ("Dues"). Sixty
(60) days’ notice shall be provided to Members of the date of the meeting at which any increase
in the Dues is to be determined for the following year. If an increase in dues is proposed from the
previous year, an affirmative vote of two-thirds (2/3) of the total voting membership of the
Governing Board is required to set the new dues.
APPROVED AT FEBRUARY 22 BOARD MEETING
The Board states its intention to consider a dues increase for the coming year and notify all
member agencies. The vote on this issue will be on the April 25 Board meeting agenda and will
guide the development of the FY 2024-2025 budget.
Additionally if the dues recommendation is adopted, the 60 day notice and 2/3 vote requirement
in the Bylaws will not apply to the automatic CPI adjustment in future years.
A-1