HomeMy WebLinkAbout28 - Adopting Salary Ranges for the City Manager and City Attorney, and Adjusting Base Salaries for City Manager and City AttorneyQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
August 22, 2023
Agenda Item No. 28
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Barbara J. Salvini, Human Resources Director - 949-644-3300,
bsalvini@newportbeachca.gov
PREPARED BY: Barbara J. Salvini, Human Resources Director, with Danny Y. Yoo,
Outside Legal Counsel (City Attorney Contract)
PHONE: 949-644-3259
TITLE: Resolution No. 2023-53: Adopting Salary Ranges for the City
Manager and City Attorney, and Adjusting Base Salaries for City
Manager and City Attorney
/_1 16"t I:7_\;91 5
The City of Newport Beach Charter, Articles V and VI, establishes the powers, duties and
responsibilities of the City Council's City Manager and City Attorney. The terms and
conditions of their employment are defined by their respective Employment Agreements.
From time to time, the City Council and incumbents may renegotiate terms of
employment, including adjustments to compensation and/or benefits. During the Closed
Sessions on April 25, June 13 and June 27, 2023, the City Council reviewed and
ultimately finalized performance reviews for the City Manager and City Attorney, during
which time the City Council considered compensation and/or benefit changes.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Adopt Resolution No. 2023-53, A Resolution of the City Council of the City of Newport
Beach, California, Adopting a New Salary Range for the City Manager and City
Attorney;
c) Approve and authorize the Mayor to execute Amendment B to the Third Amended and
Restated Employment Agreement for the City Manager; and
d) Approve and authorize the Mayor to execute Amendment B to the Seventh Amended
and Restated Employment Agreement for the City Attorney.
DISCUSSION:
Grace K. Leung was appointed as City Manager by the City Council on September 4,
2018. Her current employment terms are outlined in a Third Amended and Restated
Employment Agreement which was approved by the City Council on January 25, 2022.
28-1
Resolution No. 2023-53: Adopting Salary Ranges for the City Manager and City
Attorney, and Adjusting Base Salaries for City Manager and City Attorney
August 22, 2023
Page 2
The agreement provides for a term of five years, ending December 30, 2026. The
proposed Amendment B to the Third Amended and Restated Employment Agreement
provides for a 5% base salary increase, effective July 1, 2023.
Aaron Harp was appointed as the City Attorney by the City Council on September 6, 2011.
His employment is currently governed by a Seventh Amended and Restated Employment
Agreement which was approved by the City Council for the period March 22, 2022 through
December 30, 2028. The proposed Amendment B to the Seventh Amended and Restated
Employment Agreement provides for a 5% base salary increase effective, July 1, 2023.
The current salary ranges for the City Manager and City Attorney do not provide sufficient
movement to accommodate the 5% base salary increases. Accordingly, the proposed
resolution (Attachment A) adjusts the salary ranges of the City Manager and the City
Attorney to accommodate the 5% increases and complies with California Public
Employees Retirement System (CaIPERS) regulations relating to reportable employee
compensation. If adopted, the annual salary ranges will adjust as follows:
• City Manager $217,297 to $325,933
• City Attorney $195,034 to $292,525
FISCAL IMPACT:
A comprehensive estimate of the costs associated with the Amended and Restated
Employment Agreements is provided with this report in Attachments C and E for the City
Manager and City Attorney, respectively. For Fiscal Year 2023-24, the cost to implement
the Amended and Restated Employment Agreements for the City Manager and City
Attorney is estimated to be $33,723. Sufficient funding is included in the adopted budget
to fund the costs associated with the Agreements.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
28-2
Resolution No. 2023-53: Adopting Salary Ranges for the City Manager and City
Attorney, and Adjusting Base Salaries for City Manager and City Attorney
August 22, 2023
Page 3
ATTACHMENTS:
Attachment A — Resolution No. 2023-53
Attachment B — Amendment B to City of Newport Beach Third Amendment and Restated
Employment Agreement — City Manager
Attachment C — Costing for City Manager
Attachment D — Amendment B to City of Newport Beach Seventh Amendment and
Restated Employment Agreement — City Attorney
Attachment E — Costing for City Attorney
28-3
ATTACHMENT A
RESOLUTION NO. 2023- 53
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ADOPTING A
NEW SALARY RANGE FOR THE CITY MANAGER AND
CITY ATTORNEY
WHEREAS, Newport Beach Municipal Code Section 2.28.010 authorizes the City
Council of the City of Newport Beach ("City") to establish terms of employment, including
compensation and benefits, for City employees;
WHEREAS, the City Council previously adopted Resolution No. 2022-52 which
established the salary range for non -represented Executive Management employees,
including the City Manager and City Attorney;
WHEREAS, the City desires to provide a five percent base salary increase to the
City Manager and City Attorney which requires an adjustment to the salary ranges for the
positions;
WHEREAS, the City Council wishes to modify the salary ranges for the City
Manager and the City Attorney by the amount needed to accommodate the base wage
increases set forth in their employment agreements and amendments, as adjusted from
year to year; and
WHEREAS, by adopting this resolution, the City Council intends to amend the
salary schedules as set forth in Exhibits "A" and "B," which are attached hereto and
incorporated herein by reference, to be in conformance with the City Manager and City
Attorney's employment agreements and amendments.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council does hereby approve the salary range for the City
Manager as set forth in Exhibit "A," which shall prevail over any previously adopted salary
range for the City Manager that conflicts herewith. After December 31, 2025, the salary
range for the City Manager shall adjust with the percentage cost -of -living adjustments
approved by the City Council for Key and Management Executive Management
Employees as set forth in the City Council -approved Key and Management
Compensation Plan and/or amendments.
I
Resolution No. 2023-
Page 2 of 3
Section 2: The City Council does hereby approve the salary range for the City
Attorney as set forth in Exhibit "B," which shall prevail over any previously adopted salary
range for the City Attorney that conflicts herewith. After December 31, 2025, the salary
range for the City Attorney shall adjust with the percentage cost -of -living adjustments
approved by the City Council for Key and Management Executive Management
Employees as set forth in the City Council approved Key and Management Compensation
Plan and/or amendments.
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 4: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 5: The City Council finds the adoption of this resolution is not subject to
the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
28-5
Resolution No. 2023-
Page 3 of 3
Section 6: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 22nd day of August, 2023.
NOAH BLOM
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
zlj4 0 A; >
Air n C. Harp z3 wc-
Ci y Attorney
Attachment(s): Exhibit A — City Manager Salary Schedule Adjustment
Exhibit B — City Attorney Salary Schedule Adjustment
28-6
EXHIBIT A
RESOLUTION NO. 2023-
The City of Newport Beach
City Manager Salary Schedule Adjustment
Employment Agreement Term: January 25, 2022 - December 30, 2026
Effective July 1, 2023 - 1.5% Salary Range Adjustment
City Manager 19 Low $ 104.47 $ 18,108 $ 217,297
City Manager 19 Mid $ 130.58 $ 22,635 $ 271,615
City Manager 19 High $ 156.70 $ 27,161 $ 325,933
Effective January 13, 2024 - 3% Cost -of -Living Adjustment
City Manager 19
City Manager 19
City Manager 19
Effective Jan
Low $
Mid $
High $
107.60
$
18,651
$
223,815
134.50
$
23,314
$
279,763
161.40
$
27,976
$
335,711
ustment
City Manager 19 Low $ 110.83 $ 19,211 $ 230,530
City Manager 19 Mid $ 138.54 $ 24,013 $ 288,156
City Manager 19 High $ 166.24 $ 28,815 $ 345,782
Hourly rate rounded to the hundredth. Monthly and annual salaries rounded to the nearest whole dollar.
28-7
City Attorney
City Attorney
City Attorney
EXHIBIT B
RESOLUTION NO. 2023-
The City of Newport Beach
City Attorney Salary Schedule Adjustment
Employment Agreement Term: March 22, 2022 - December 30, 2028
Effective July 1, 2023 - 5% Sala
18 Low $
18 Mid $
18 High $
ustment
93.77
$
16,253
$
195,034
117.20
$
20,315
$
243,779
140.64
$
24,377
$
292,525
City Attorney 18 Low $ 96.58 $ 16,740 $ 200,885
City Attorney 18 Mid $ 120.72 $ 20,924 $ 251,093
City Attorney 18 High $ 144.86 $ 25,108 $ 301,300
Effective January 11, 2025 - 3% Cost -of -Living Adjustment
City Attorney
18 Low
$
99.48 $
17,243
$
206,911
City Attorney
18 Mid
$
124.34 $
21,552
$
258,626
City Attorney
18 High
$
149.20 $
25,862
$
310,339
Hourly rate rounded to the hundredth. Monthly and annual salaries rounded to the nearest whole dollar.
28-8
ATTACHMENT B
AMENDMENT B TO CITY OF NEWPORT BEACH
THIRD AMENDED AND RESTATED EMPLOYMENT
AGREEMENT — CITY MANAGER
WHEREAS, on January 25, 2022, the City of Newport Beach, a California
municipal corporation and Charter City ("Employer" or "City") and GRACE K.
LEUNG ("Employee"), an individual (sometimes collectively referred to herein as
"the Parties") entered into a Third Amended and Restated Employment Agreement
("Agreement") for the period of January 25, 2022 through December 30, 2026;
WHEREAS, the City Council wishes to adjust Employee's base pay by 5%
for the 2023-2024 fiscal year; and
WHEREAS, this amendment will not be binding until it is approved by the
City Council.
NOW, THEREFORE, it is mutually agreed between the Parties as follows:
1. Section 3. Compensation and Performance Evaluation, Section A, is
amended to read as follows:
A. Employer agrees to pay Employee an annual base salary of Three Hundred
Twenty -Five Thousand, Seven Hundred and Thirty -Three Dollars
($325,733) ("Base Salary"), effective July 1, 2023.
2. Except as expressly modified herein, all other terms and provisions set
forth in the Agreement shall remain unchanged and shall be in full force and effect.
Signatures on the next page
Amendment B To Third Amended And Restated Employment
Agreement - Leung Page 1 of 2
28-9
Date:
LIN
EMPLOYER
CITY OF NEWPORT BEACH
A Municipal Corporation
IM
Noah Blom, Mayor
Date:
AS TO FORM:
Date:
o, Outside ounsel
ATTEST:
Leilani Brown, City Clerk
Date:
EMPLOYEE,
An Individual
Grace K. Leung
Amendment B To Third Amended And Restated Employment
Agreement - Leung
Page 2 of 2
28-10
Attachment C
Key Contract Terms
Base Salary Adjustment
Summary of Proposal Cost
Baseline Compensation
Base Pay
Performance Pay (2.5%)
Pension Contribution
Cafeteria Plan
Other City Paid Benefits'
Total
Cumulative Impact on Employee Compensation
Base Salary Increase
Total Compensation Increase z
Notes
City of Newport Beach
City Manager 5% Adjustment to Base Salary
August 22, 2023
5.00%
$314,876 $15,744 $16,216 $16,703 $17,037 $65,699
7,872 394 405 418 426 $1,642
19,680 984 1,014 1,044 1,065 $4,106
20,700 - - - - $0
L3 713 70C Q/10 Q]] Qno l`] '17c
$ 426,841 $ 17,906 $ 18,444 $ 18,997 $ 19,377 $ 74,724
5.00% 5.15% 5.30% 5.41%
4.20% 4.32% 4.45% 4.54%
1 Includes Medicare, compensated absences, employee assistance program, phone allowances, life insurance, retiree health savings, deferred comp contribution, and disability premium.
z Measured based on the total of all pay and benefits.
3 Costs are based on the fiscal year.
° Reflects upcoming contract provisions. COLAs are tied to K&M Agreement at 3%, which sunsets in FY25-26, 2% is assumed thereafter.
5 Contract term through 12/30/2026, but costs shown are for full fiscal year.
28-11
ATTACHMENT D
AMENDMENT B TO CITY OF NEWPORT BEACH
SEVENTH AMENDED AND RESTATED EMPLOYMENT
AGREEMENT — CITY ATTORNEY
WHEREAS, on March 22, 2022, the City of Newport Beach, a California
municipal corporation and Charter City ("Employer" or "City") and AARON C.
HARP ("Employee"), an individual (sometimes collectively referred to herein as
"the Parties") entered into a Seventh Amended and Restated Employment
Agreement ("Agreement") for the period of March 22, 2022 through December 30,
2028;
WHEREAS, the City Council wishes to adjust Employee's base pay by 5%
for the 2023-2024 fiscal year; and
WHEREAS, this amendment will not be binding until it is approved by the
City Council.
NOW, THEREFORE, it is mutually agreed between the Parties as follows:
1. Section 3. Compensation and Performance Evaluation, Section A, is
amended to read as follows:
A. Employer agrees to pay Employee an annual base salary of Two Hundred
Ninety -Two Thousand, Five Hundred and Twenty -Five Dollars
($292,525) (`Base Salary"), effective July 1, 2023.
2. Except as expressly modified herein, all other terms and provisions set
forth in the Agreement shall remain unchanged and shall be in full force and effect.
Signatures on the next page
28-12
Date:
UO-A
M.
EMPLOYER
CITY OF NEWPORT BEACH
A Municipal Corporation
Un
Noah Blom, Mayor
Date:
APPROVED AS TO FORM:
EMPLOYEE,
An Individual
Aaron C. Harp
Date: Z�
Da ny �.00, Attorney
ATTEST:
Leilani Brown, City Clerk
Date:
Amendment B To Seventh Amended And Restated Employment
Agreement - Harp
Page 2 of 2
28-13
Attachment E
Key Contract Terms
Base Salary Adjustment
Summary of Proposal Cost
Baseline Compensation
Base Pay
Pension Contribution
Cafeteria Plan
Other City Paid Benefits'
Tota I
Cumulative Impact on Employee Compensation
Base Salary Increase
Total Compensation Increase Z
Notes
City of Newport Beach
City Attorney 5% Adjustment to Base Salary
August 22, 2023
5.00%
$282,774
$14,139
$14,563
$15,000
$15,300
$15,606
$15,918
$90,525
19,568
978
1,008
1,038
1,059
1,080
1,102
$6,264
20,700
-
-
-
-
-
-
$0
43,665
700
721
742
757
772
788
$4,481
$ 366,707
$ 15,817
$ 16,291
$ 16,780
$ 17,116
$ 17,458
$ 17,807 $
101,270
5.00%
5.15%
5.30%
5.41%
5.52%
5.63%
4.31%
4.44%
4.58%
4.67%
4.76%
4.86%
1 Includes Medicare, compensated absences, employee assistance program, phone allowances, life insurance, retiree health savings, deferred comp contribution, and disability premium.
2 Measured based on the total of all pay and benefits.
3 Costs are based on the fiscal year.
4 Reflects upcoming contract provisions. COLAs are tied to K&M Agreement at 3%, which sunsets in FY25-26, 2% is assumed thereafter.
5 Contract term through 12/30/2028, but costs shown are for full fiscal year
2844