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City Council Minutes
City Council Study Session - 4:00 p.m.
September 25, 2012 — 4:00 p.m.
STUDY SESSION
I. ROLL CALL - 4:00 p.m.
Present: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor
Gardner, Council Member Selich, Council Member Henn, Council Member Daigle
Council Member Rosansky arrived at 4:04 p.m.
Council Member Daigle arrived at 4:06 p.m.
II. CURRENT BUSINESS
1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR -None
2. EXECUTIVE AND ADMINISTRATIVE SALARY STRUCTURE.
Deputy City Manager/Human Resources Director Cassidy presented a PowerPoint that
addressed the need for a city -wide study, comparison of salaries, and compliance with
new PERS regulations. She reported that the intent is to implement an evaluation
system that is objective, provides consistency, market competitiveness, and a simplified
process. She addressed the total compensation philosophy adopted by Council, listed the
agencies used in the course of the study, reported partnering with consultants, Fox,
Lawson and Associates to do the study explaining that they have a proprietary method
called, Decision Band Methodology, and deferred to the consultant for further reporting.
Bruce Lawson, Fox, Lawson and Associates, presented details of their methodology,
stated that the substance of each job will be observed, noted that pay structures have
changed dramatically over the last twenty years, reported that they are working on the
premise that the City would like to be in the middle of the market relative to
compensation, and addressed decision bands. He reported that each job is considered
relative to the level of work, accountability for others, complexity of work, and skills
required. He addressed preliminary ratings for executive positions, rankings, trend
information, consistencies with the market, increasing PERS costs, differing
supplemental benefits, short and long -term incentives, plan designs, base pay, and
contingent pay alternative options. He reported that results of the study will be provided
to Council within the next few weeks.
In response to Council Member Henn's question, Mr. Lawson reported that in the past,
city governments aimed at being in the 50th percentile of the market but now there is a
trend towards flexibility in looking at the overall structure, stated that the intent is to
pay between the 2nd and 3rd quartile to allow for flexibility, noted that most
organizations try to treat all bands equally relative to their defined market, and
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City Council Study Session
September 25, 2012
addressed challenges with percentile relationships in data.
Council Member Henn noted the need to maintain flexibility to hire and stated that the
issue of incentive is a very important component that would allow the City to have a base
that is not subject to criticism but is at a level that will retain high - performing people.
He also stated that if the aim is to have a smaller, smarter, faster organization, it
generally means a flatter organization with broader spans of control, wherein it is
important to have higher - performing people at the higher end of the span.
Jim Mosher stated that the consultant placed Council Members in the highest band of
executive compensation, noted that the City Charter provides that Council Members
shall receive no compensation for service, indicated that the consultant included benefits
in total compensation, and referenced a letter to the authors of Argument Against
Measure EE that threatened litigation for describing benefits as part of compensation.
3. RESPONSE TO ORANGE COUNTY GRAND JURY - FIRE/EMS.
City Manager Mf introduced the item noting that it is a Consent Calendar item on the
regular meeting agenda and is being presented herein to expand on the matter, reported
that the Grand Jury report studied a County -wide perspective on the delivery of fire
suppression and emergency medical services, stated that generally there is agreement
with the report but when responding there are limitations as to what can be said, and
deferred to Fire Cbief Poster for a report.
Fire Chief Poster presented a PowerPoint that addressed what the report was about,
what is required of the City, the report's content, the City's response to the three
findings /conclusions, and the City's response to the recommendations.
Council Member Henn noted that the City is ready to embrace the right kind of change in
terms of how the emergency response model is organized within the City.
Fire Chief Poster noted that the framework of the response impacts the City in what it
wants to say and do; but discussion has ensued regarding changes, increasing
efficiencies, and determining a better way to operate.
Council Member Henn encouraged Fire Chief Poster to work as hard and fast as possible
to analyze how the City's response for fire and emergency medical services are organized
and be open to significant change while avoiding the sacrifice of the high level of services
provided to residents.
Council Member Daigle acknowledged the time constraints in connection to the required
responses, addressed the sustainabihty plan relative to consideration of contractors, and
wondered why other services such as lifeguards have been immune from being
evaluated.
City Manager tuff stated that the concept of including additional language involving
contracting would be appropriate to include in response to Finding 3, expressed concern
with mentioning other City services in the response, and recommended that the
statement to the Grand Jury be general in nature rather than specific.
Mayor Gardner noted that the response provided is not simply a reaction to the Grand
Jury report; it has been previously discussed due to the evolution of fire services.
Jim Mosher believed that the response to Recommendation RI will not be implemented
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City of Newport Beach
City Council Study Session
September 25, 2012
because it is not reasonable, stated that Recommendation R2 states that it has not been
implemented but may be considered in the future, and suggested that wording for
Recommendation Rl match that of Recommendation R2.
III. PUBLIC COMMENTS
Jim Mosher commented on Item E of the Closed Session agenda, believed that all meetings of
Council should be open to the public, addressed the need for openness and transparency,
commented on the coming election regarding the City Charter update, and addressed a
presentation on the regular agenda relative to Measure M stating that the government may not
take sides in election contests.
IV. ADJOURNMENT - 4:56 p.m.
The agenda for the Study Session was posted on September 20, 2012, at 3:10 p.m. on
the City Hall Bulletin Board located outside of the City of Newport Beach
Administration Building.
Recording Secretary
Mayor
04W) J. OL:�-
City Clerk
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