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HomeMy WebLinkAbout09/25/2012 - Study SessionAs- `� Q� . N O 1" t1J 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 Volume 60 - Page 590 City of Newport Beach 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 Volume 60 - Page 591 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 Volume 60 - Page 592