May 24, 2022
Agenda Item No. 11
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Grace K. Leung, City Manager - 949-644-3001, [email protected] PREPARED BY:
Barbara J. Salvini, Human Resources Director, [email protected] PHONE:
949-644-3259
TITLE:
Resolution No. 2022-33: Seventh Amended and Restated Employment Agreement for City Clerk ABSTRACT:
Pursuant to the City Charter of the City of Newport Beach (City), Article VI, the City Clerk is appointed by and serves at the pleasure of the City Council. The terms and conditions of the current City Clerk’s employment are defined by her Sixth Amended and Restated Employment Agreement. From time to time, the City Council and incumbents may renegotiate the employment terms, including adjustments to compensation and/or other benefits. During its Closed Sessions on November 30, 3021; March 8, 2022; March 22, 2022; April 12, 2022; and April 26, 2022, the City Council discussed the terms of the City Clerk’s employment agreement. A Seventh Amended and Restated Employment Agreement (Employment Agreement) for the City Clerk is proposed for the City Council’s consideration and approval.
RECOMMENDATION:
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; Approve and authorize the Mayor to execute a Seventh Amended and Restated Employment Agreement between the City of Newport Beach and City Clerk Leilani I. Brown, subject to the terms and conditions approved by the City Council; Adopt Resolution No. 2022-33, A Resolution of the City Council of the City of Newport Beach, California, Modifying the Salary Range for the City Clerk; and Approve Budget Amendment No. 22-055 appropriating $1,776 from unappropriated General Fund balance to various salary and benefit accounts to implement the terms of the Agreement for the remainder of FY 2021-22.
DISCUSSION:
Leilani I. Brown has served as the City Clerk since November 22, 2008. Her employment is currently governed by a Sixth Amended and Restated Employment Agreement which was approved by the City Council on January 26, 2021. It provided for an initial annual base pay adjustment of 2%; base pay adjustments beginning the pay period which included January 1, 2022, and annually thereafter, equal to the lesser of 2% or the “Cost of Living” as defined by Government Code Section 3511.1; a one-time, lump-sum bonus of $352; and, bi-weekly City-paid contributions to her City-sponsored 457 deferred compensation account equal to 1% of Ms. Brown’s base salary which increased to 1.5% effective the pay period which included January 1, 2022.
The proposed revisions to the Seventh Amended and Restated Employment Agreement (Attachment A) provide for the following:
Employment agreement through May 24, 2026 which is designed to ensure a smooth transition of Council appointees over a period of time; Compensation
A merit adjustment of 5% in the first year, and cost-of-living adjustments tied to those received by executive management employees beginning on January 1, 2023, and each January thereafter, for the remaining term of the agreement.
Deferred Compensation
The proposed Seventh Amended and Restated Employment Agreement modifies the existing deferred compensation benefit in that it provides for an additional 1% of City-paid deferred compensation into the City Clerk’s 457 account in the first year of the agreement only for a total City-paid contribution of 2.5% of base salary paid bi-weekly. After the first year of the agreement, the bi-weekly City-paid contribution to the City Clerk’s 457 account will equal 1.5% of base salary.
Certain other benefits for the City Clerk, such as cafeteria allowances, paid leaves, retirement and supplemental retirement plans, disability, and life insurance benefits are tied to the terms and conditions outlined in the City’s Key and Management Compensation Plan. Except as referenced above and specifically identified in her proposed Seventh Amended and Restated Employment Agreement, the language contained in the City Clerk’s proposed Employment Agreement does not alter any of the previously established benefit relationships with the Key and Management Compensation Plan.
Attached for the City Council’s consideration is the Seventh Amended and Restated Employment Agreement for the City Clerk. If approved by the City Council, Human Resources and Finance staff will work together to implement the terms. Consistent with the City Council’s stated goal of transparency, the Employment Agreement also will be published on the City’s website and readily available for public review.
In order to implement the proposed salary adjustment for the City Clerk, the salary range needs to increase to provide sufficient movement for the incumbent. The proposed resolution (Attachment D, Resolution No. 2022-33), provides the necessary increase in the salary range for the City Clerk. If adopted, the annual salary range will be $111,202 to $166,789.
FISCAL IMPACT:
The detailed costing information included in Attachment C is provided on a calendar year basis. Because the effective date of the Employment Agreement is mid-fiscal year, the cost to implement the terms of the agreement for FY 2021-22 is less than the $11,542 shown in Attachment C.
Additionally, certain pension and compensated absences costs are long term in nature and will not impact the current fiscal year’s budget. Should the City Council approve the agreement, the budgetary impact is therefore reduced to $1,776 in FY 2021-22.
Sufficient projected unappropriated General Fund balance is available to fund the required appropriations. Budget Amendment No. 22-055 appropriating $1,776 is included as Attachment B for your review.
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).
ATTACHMENTS:
Attachment A – Seventh Amended and Restated Employment Agreement between the City of Newport Beach and City Clerk Leilani I. Brown Attachment B – Budget Amendment No. 22-055
Attachment C – Estimate of Costs Associated with the Seventh Amended and Restated Employment Agreement for the City Clerk Attachment D – Resolution No. 2022-33
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Resolution No. 2022-33: Seventh Amended and
Restated Employment Agreement for City Clerk
May 24, 2022
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