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Report ID: 21-024   
Type: Regular - Board Administrative Matters
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 1/13/2021 Final action: 1/13/2021
Recommended Action: Consider the adoption of Resolution No. 21-001 establishing a temporary reduction in compensation for the Board of Directors. [Requested by President Ortiz.]
Attachments: 1. STAFF REPORT, 2. Att.1 Resolution 21-001, 3. Att.2. BP 123 - Board Compensation, 4. Master Minute Order
TO: AC Transit Board of Directors
FROM: Linda A. Nemeroff, District Secretary
SUBJECT: Board Compensation Adjustment

ACTION ITEM

RECOMMENDED ACTION(S):

Title
Consider the adoption of Resolution No. 21-001 establishing a temporary reduction in compensation for the Board of Directors. [Requested by President Ortiz.]
Body

STRATEGIC IMPORTANCE:

There is no strategic importance associated with this report.

BUDGETARY/FISCAL IMPACT:

A reduction in compensation would result in the following savings to the District depending on the option selected:

Option
FY 2020-21
FY 2021-22
Reduction per
Director/mo.
#1
$1,238 (7 mos.)
$2,123
$25.00
#2
$2,646 (6 mos.)
$5,292
$63.00
#3
$3,884
$7,415
$88.00

BACKGROUND/RATIONALE:

Board Policy 123 establishes compensation for the Board of Directors and provides for an annual adjustment based on the California Consumer Price Index (CPI). This increase is automatic and is based on the percentage increase in the CPI from one calendar year to another and holds the increase in abeyance in election years, so the increase the Board would have been entitled to in early 2020 was suspended until the election concluded. This was an increase of 1%, which is the difference in the 2018 CPI and the 2019 CPI (the CPI for 2019 of 282.594 less the CPI for 2018 of 274.922 equals a 1% change).

In addition, the Board is due to receive an increase in early 2021 once the CPI figures for 2020 are published. Based on the low percentage of change for 2019, the 2020 figure is anticipated to be small. Again, this is an automatic increase that the Board is not required to act on to implement.

When the Board was notified of the increase in their compensation, the Board President requested that the matter come before the Board to consider suspending it given the District's financial condition due to the pandemic and the projected budget deficit in the FY 2021-22. In addition, staff was asked to include an option to reduce the Board's compens...

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