Seaside council votes to undo disputed pay increase, orders repayment review and sets new raise for post-election

The Seaside City Council on July 16 adopted an urgency ordinance rolling council monthly pay back to $400 and introduced a regular ordinance to set lawful future compensation, responding to staff and outside counsel findings that last year’s pay increase was improperly calculated and paid early.

City Manager Demandor and outside counsel Brian Pierrick told the council that Ordinance No. 2034 treated the government's 5% annual allowance as if it compounded annually and that the higher pay began before the statute allowed (payments may begin only after at least one post-adoption election swears in a councilmember). Pierrick said the attorney-general guidance shows the 5% allowance must be applied to the 1986 $400 base without compounding; using that method produces $1,180 per month under the 5% formula for 2026, not the $2,400 figure previously paid.

The urgency ordinance (item 8a) restores the mayor and council monthly pay to $400 effective immediately and leaves the mayor’s separate $300 automobile stipend unchanged. The motion to adopt 8a passed unanimously on a roll-call vote.

Council then considered item 8b, a regular ordinance that would set future compensation using the non‑compounded 5% method to reach $1,180 per month and would take effect only after the Nov. 3, 2026 election when one or more councilmembers are sworn in. After debate about whether to adopt the 5% formula or take the state population‑based flat cap of $950 per month (an option noted in state law), the council voted 4–1 to introduce the ordinance on first reading; Councilmember Miller cast the lone dissent, advocating instead for the $950 flat cap or putting the question to voters.

The staff report estimated each individual councilmember was overpaid approximately $26,000 for the 13‑month period from June 2025 through June 2026. To verify totals, staff recommended retaining an independent certified public accountant (CPA) to calculate repayment amounts, payroll/tax impacts and to propose a fair recovery process. Council directed the city manager to proceed with procurement for a third‑party financial review.

Public comment was extensive. Some residents urged accountability and questioned whether others (including the city attorney’s office) should share responsibility for the error; others defended the council and proposed community fundraisers to offset the repayments. Councilmembers emphasized transparency and the need to correct the payroll status quickly.

What happens next: the urgency ordinance is in effect immediately. The introduced ordinance (8b) will return for a subsequent hearing (second reading) before it can take effect after the November election; in the meantime the city manager will procure an independent CPA to recommend precise repayment terms and tax treatment.

Key quotes

"This ordinance will return the city of Seaside to compliance with California state law," City Manager Demandor said when introducing the urgency ordinance.

"The 5% cannot be compounded," outside counsel Brian Pierrick said, summarizing his legal review of Government Code Section 36516 and attorney-general guidance.

Council vote

- Item 8a (urgency ordinance to restore pay to $400): approved unanimously (5–0).
- Item 8b (regular ordinance using non‑compounded 5% → $1,180/month): introduced and approved on first reading, roll-call 4–1 (Miller opposed).

Next steps and clarifications

- The independent CPA will calculate exact overpayments, payroll/tax implications and recommend repayment schedules. The city manager stated procurement for that review is within manager purchasing authority but will be reported to council.
- The future pay level will not take effect until after the November 2026 election and swearing-in of at least one councilmember, consistent with state law.

The urgency vote corrected immediate compliance; the council’s narrower vote on future compensation leaves open community debate about whether to use the state cap or the statutory formula.