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Home My WebLink About26 - City Clerk Employment AgreementCITY OF NEWPORT BEACH CITY COUNCIL REPORT Agenda Item No. 26 September 9, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Ad Hoc City Clerk Recruitment Committee Mike Henn, Council Member Chairperson, Nancy Gardner, Council Member, Keith Curry, Council Member SUBJECT: Approval of Employment Agreement for City Clerk RECOMMENDATION: 1. Approve the attached City Clerk Employment Agreement with Leilani Brown effective November 22, 2008. 2. Discuss targeted future compensation. DISCUSSION: City Clerk is one of three positions that reports directly to the City Council. Current City Clerk, LaVonne Harkless, has served as City Clerk for almost thirteen years and will be retiring November 17, 2008. A City Clerk Ad Hoc Recruitment Committee was formed comprising of Council Members Mike Henn (Chairperson), Nancy Gardner and Keith Curry. The Committee worked closely with the Human Resources Director to develop a draft job description, proposed salary and a recruitment plan and timeline. At the June 24, 2008 meeting, City Council approved the proposal from the Ad Hoc Committee to conduct a recruitment managed by the Human Resources Department under the direction of the Committee, where both inside and outside candidates would be considered. The recruitment plan was followed and many applications were received, with sixteen of them meeting the minimum qualifications. Six candidates were selected for full Council interviews which were held on August 15. At the completion of the interviews, Council announced in open session that they had selected Leilani Brown, current Deputy City Clerk, as the new City Clerk. City Clerk Employment Agreement September 9, 2008 Page 2 Since that time, the Committee, along with the City Manager and Human Resources Director have worked together to develop recommendations for the full City Council regarding the employment contract for Leilani. The recommendations in the contract are based on Leilani's experience level, total compensation information from other cities (Attached), and other Newport Beach employment contracts. Leilani is currently at the top of the Deputy City Clerk salary range, Step 8 - $6,025/mo - $72,300/yr. If reclassification of her position to Assistant City Clerk is approved on September 9, Leilani's salary will increase 10% to $6,643/mo - $79,716/yr. The salary range Council established for the City Clerk position is $78,000 - $130,000. Employment Contract: The following provisions are included in the proposed new City Clerk Employment Agreement: Appoint to City Clerk November 22, 2008 (First pay period after the City Clerk retires.) Leilani will serve as Acting City Clerk and will receive Acting Pay at her new City Clerk salary from November 18 to November 22, when she will be appointed City Clerk. • Beginning salary as City Clerk will be $96,000 annually. (Approximately 20 +% increase over her Assistant City Clerk salary of $79,716.) ➢ If, based upon a six -month performance review by Council in May, 2009, Leilani is performing satisfactorily she will be eligible to receive up to a 5% increase to approximately $101,000. ➢ Following her one year anniversary of employment as City Clerk, and each year thereafter, Leilani will receive a formal performance review by the City Council with salary increased as warranted by performance. • Receive the same cost -of- living adjustments that other non -safety management employees receive to prevent compaction of salary. • Continue the same benefits as the current City Clerk and other Department Directors with the addition of $1,000 for an annual physical. • Continue to work a 9/80 work schedule. • Receive 80 hours of Administrative Leave annually. • Term of the contract will be two years, expiring on November 22, 2010. City Clerk Employment Agreement September 9, 2008 Page 3 Taraeted Future Compensation Despite the large percentage increases noted above, Leilani's May 2009 total compensation will still rank in the bottom quartile of total compensation in the current City Clerk survey. We therefore also recommend that Council discuss its current intention regarding targeted total compensation for Leilani over time. We recommend that, in the event Leilani's annual performance reviews are rated at Meets Expectations or higher, Council consider annual compensation increases such that, over a period not to exceed four years (two election cycles), Leilani's total compensation will rank at least at the median of City Clerks in the comparison group. In today's dollars, based on the attached survey, this goal translates into a salary of approximately $110,000. The $9,000 gap above her May 2009 salary would be closed over a maximum period of four years, or sooner, through pay increases over and above normal inflationary salary increases afforded to City staff. This would not be made a part of her contract, and Council would be free to modify its thinking over time, but at least Council's current intention would be a part of the public record. Funding Availability: The new City Clerk will begin employment at a significantly lower salary than the current thirteen year veteran and there will be cost savings for FY08 -09. Submitted by: MiKe Henn Council Ad Hoc Committee Chairperson Attachments: 1. Total Compensation Survey 2. Employment Agreement CITY CLERK TOTAL COMPENSATION SURVEY - JUNE 2008 Monthly Max Mad Defer. EE Paid Total Retire Rank Agency Title Top g Dental Car Comp Physical PERS Comp Form. Sala 1 Huntington City Clerk Elected $13,500 $1,058 $500 $0 $25 $473 $14,611 2.5 @55 eff 7/08 Beach 2004 City Clerk 2 Irvine Appointed $12,466 $1,064 $550 $0 $29 -$673 $13,436 2.7 @55 2007 3 Newport City Clerk Appointed $10,700 $979 $0 $0 $0 -$375 $12,867 2.5 @55 Beach 1996 Clerk of 4 Santa Ana Council $10,138 $1,028 $500 $625 $0 -$203 $12,0882'7@55 eff 1/09 Appointed 2004 City Clerk 5 Buena Park Appointed $10,617 $753 $11,370 1997 City Clerk/Clerk 6 Fullerton Services $9,517 $1,440 $350 $0 $63 $0 $11,370 2 @55 + PARS Mgr. Appointed 2002 City Clerk 7 Anaheim Appointed $9,635 $1,010 $650 $0 $125 -$96 $11,324 2.7 @55 2007 Chief Clerk 8 Orange Elected $9,301 $1,400 $400 $279 $32 $242 $11,170 2.7 @55 2005 9 Costa City Clerk Appointed $9,833 $1,446 $0 $49 $23 -$354 $10,997 2.5 @55 eff 9/08 Mesa 2005 10 Laguna City Clerk Elected $8,908 $1,001 $175 $178 $25 $0 510,287 2 @55 Beach 2004 11 Garden City Clerk Appointed $9,097 $935 $566 $0 $25 -$728 $9,895 2.5 @55 Grove 2004 Median $9,734 $11,347 75th Percentile $13,301 $14,193 % Difference CNB to Median Inca 9A% 11.8% NPB to 75th Percentile 4.3 0 - 10.3% EMPLOYMENT AGREEMENT This EMPLOYMENT AGREEMENT, (Agreement) entered into this 9th day of September, 2008, by and between the CITY OF NEWPORT BEACH, a municipal corporation (City), and LEILANI BROWN (Brown) is made with reference to the following: A. City has employed Brown as Deputy City Clerk since December 15, 1997 Brown's current annual salary is $72,300. B. On September 9, 2008, Brown was reclassified to Assistant City Clerk effective September 13, 2008, with the salary of $79,716. C. LaVonne Harkless, City Clerk will be retiring on November 17, 2008. On August 15, 2008 the City Council selected Brown to fill the City Clerk's position effective November 22, 2008. D. The Parties intend, through this Agreement, to specify the terms and conditions of Brown's employment as City Clerk relevant to salary and benefits. SECTION 1: Employment as City Clerk. A. Effective November 22, 2008, City shall employ Brown as City Clerk of the City of Newport Beach to perform the functions and duties of that position as specified in the City Charter and Municipal Code of the City of Newport Beach. Brown shall also perform other duties assigned by the City Council, without additional compensation, so long as those duties are related to matters of concem to the City of Newport Beach or cities generally. B. Brown shall devote at least eighty (80) hours every two (2) weeks to the performance of her duties as City Clerk unless on authorized paid leave and /or unpaid leave. C. Brown shall be authorized to work the 9/80 schedule as defined in Section QQ(1) of the City's Employee Policy Manual. SECTION 2: Effective Date/Term. This Agreement shall be effective as of November 22, 2008 and shall remain in effect until November 22, 2010, or until amended by the Parties or terminated pursuant to Section 4 of this Agreement. SECTION 3: Base Compensation. A. City shall pay City Clerk an annual base salary of ninety-six thousand dollars ($96,000.) in twenty -six (26) equal installments paid at the same time as other management employees of the City are paid. This Agreement shall be deemed amended whenever the City Council adopts a resolution pertaining to compensation or other terms and conditions of employment which are covered by the terms of this Agreement. B. City shall have the right to deduct or withhold from Brown's base compensation any and all sums required for federal income and social security taxes and all state or local taxes now applicable or that may become applicable in the future. City may also deduct sums that Brown is obligated to pay because of participation in plans or programs described in Section 5 of this Agreement. SECTION 4: Termination and Severance Pay. A. Brown may terminate this Agreement by giving the City at least forty -five (45) days prior written notice of termination. B. City may terminate Brown, without cause, upon the affirmative votes of a majority of the members of the City Council at any regular meeting, provided, however, Brown may not be terminated within ninety (90) days after any municipal election for the selection or recall of one or more members of the City Council. City shall furnish Brown with written .notice stating the Council's intention to terminate this Agreement at least thirty (30) days prior to the effective date of termination. C. Brown shall receive severance pay equal to one -half (1/2) of her annual base compensation as of the date of termination by City, unless she is terminated because of criminal conduct, malfeasance or a gross abuse of discretion. SECTION 5: Emplovee Benefits. A. Brown shall accumulate flex leave at the same rate as other Department Directors based on her years of service. B. Brown shall receive the same health insurance, retirement benefits, and cost of living adjustments as are available to other non- safety management . employees of the City. C. Brown shall be entitled to participate in plans and programs available to the City Attorney and City Manager of the City such as short term and long term disability plans, Iffe insurance plans, and deterred compensation plans. 74 D. The provisions of the then current Personnel Policies Resolution as well as those provisions of the City Charter and Municipal Code that relate to the terms and conditions of employment shall, except to the extent inconsistent with the terms of this Agreement, apply to Brown as they are applied to other management employees; provided, however, Brown shall not be entitled to any compensation, or compensatory time for time worked in excess of the normal work day or week. E. Brown may undergo an annual physical examination and City shall reimburse Brown for the actual cost of the examination up to a maximum of one thousand dollars ($1,000.00). F. Brown shall receive eighty (80) hours of Administrative Leave per calendar year. Administrative Leave shall not accrue from year to year. She will receive 48 hours upon appointment for 2008 and 80 hours on January Vt annually thereafter. Brown shall not be entitled to accrue administrative leave from year to year and shall not be entitled to any compensation, or compensatory time off, or overtime. G. This Agreement shall be deemed amended whenever the City Council adopts a resolution changing the rate Brown accumulates paid leave or alters employee benefits available to other non- safety management employees of the City. SECTION 6. Business Expenses. City shall reimburse Brown for all reasonable business expenses actually incurred by Brown in the performance of services pursuant to this Agreement. SECTION 7. Meetinas and Conference. Brown shall, at City expense, be entitled to attend a reasonable number of local, state, and national conferences relevant to her performance of services pursuant to this Agreement, in an amount as approved in each annual budget. SECTION 8. Evaluation. The City Council shall conduct an initial evaluation of Brown's performance promptly following the six (6) month anniversary of the effective date of this Agreement. If, in the sole discretion of the City Council, Brown is rated as satisfactorily performing her duties as City Clerk after the first six (6) months, then she will be entitled to up to approximately a 5% adjustment to her base compensation. Promptly following Brown's one year anniversary as City Clerk, the City Council shall evaluate Brown's performance, and annually thereafter, with salary increases as warranted by her performance. E< SECTION 9. General Provisions. A. Brown shall serve at the pleasure of the City Council as specified in the Newport Beach City Charter and may be terminated "at will' subject to the procedural and financial requirements specified in this Agreement and /or City ordinance. B. This Agreement shall be binding upon, and inure to the benefit of, the heirs, executors, and assigns of Brown. C. Any notice required by this Agreement shall be in writing and deemed given when personally delivered (to the City Clerk in the case of the City), or deposited in the United States mail, registered or certified, with postage prepaid and return receipt requested, and properly addressed. D. This Agreement represents the entire understanding of the parties and any modification is effective only if it is in writing and signed by the party to be charged. CITY OF NEWPORT BEACH A Municipal Corporation Edward D. Selich, Mayor CITY CLERK By: Leilani Brown ATTEST:. IN LaVonne Harkless, City Clerk APPROVED AS TO FORM: L�.. By: 1 Ro in L. Clauson, City Attorney Iv Dated: Dated: