TO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
November 28, 2023
Agenda Item No. 19
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Barbara J. Salvini, Human Resources Director - 949-644-3300, [email protected]
PREPARED BY: Barbara J. Salvini, Human Resources Director TITLE: Resolution No. 2023-84: Adopting a New Salary Range and Adjusting Base Salary for the City Clerk
ABSTRACT:
The City of Newport Beach Charter, Article and VI, establishes the powers, duties and responsibilities of the City Clerk. The terms and conditions of her employment are defined by her Employment Agreement. From time to time, the City Council and incumbents may renegotiate terms of employment, including adjustments to compensation and/or benefits.
During the Closed Session on November 14, 2023, the City Council reviewed the performance of the City Clerk and 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. 2023-84, A Resolution of the City Council of the City of Newport Beach, California, Adopting a New Salary Range for the City Clerk; and c) Approve and authorize the Mayor to execute Amendment B to the Seventh Amended and Restated Employment Agreement for the City Clerk.
DISCUSSION:
Leilani I. Brown has served as the City Clerk since November 22, 2008. Her employment is currently governed by a Seventh Amended and Restated Employment Agreement which was approved by the City Council for the period May 24, 2022 through May 24, 2026. The proposed Amendment B (included as Attachment B) to the Seventh Amended and Restated Employment Agreement provides for a 5% base salary increase effective December 2, 2023.
The City Clerk's current salary range does not provide sufficient movement to accommodate the 5% base salary increase. Accordingly, the proposed resolution (Attachment A) adjusts the salary range of the City Clerk to accommodate the 5% increase and complies with California Public Employees Retirement System regulations relating to reportable employee compensation. If adopted, the annual salary range will be:
19-1
Resolution No. 2023-84: Adopting a New Salary Range and Adjusting Base Salary for the City Clerk
November 28, 2023
• City Clerk $120,288 - $180,419
FISCAL IMPACT:
A comprehensive estimate of the costs associated with the Amended and Restated Employment Agreement is provided with this report in Attachment C for the City Clerk.
For Fiscal Year 2023-24, the cost to implement the Amended and Restated Employment Agreement for the City Clerk is estimated to be $5,868. Sufficient funding is included in the adopted budget to fund the costs associated with the Agreement.
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 — Resolution No. 2023-84
Attachment B — Amendment B to City of Newport Beach Seventh Amended and Restated Employment Agreement — City Clerk
Attachment C — Costing for City Clerk
19-2
ATTACHMENT A
RESOLUTION NO. 2023- 84
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ADOPTING A
NEW SALARY RANGE FOR THE CITY CLERK
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 ranges for non -represented Executive Management employees, including the City Clerk;
WHEREAS, the City of Newport Beach desires to provide a five percent base salary increase to the City Clerk which requires an adjustment to the salary range for that position;
WHEREAS, the City Council wishes to modify the salary ranges for the City Clerk by the amount needed to accommodate the base wage increases set forth in her 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 Exhibit "A," which is attached hereto and incorporated herein by reference, to be in conformance with the City Clerk's employment agreement 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 Clerk as set forth in Exhibit 'A" which shall prevail over any previously adopted salary range for the City Clerk that conflicts herewith. After December 31, 2025, the salary range for the City Clerk 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 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 19-3
Resolution No. 2023-
Section 3: 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 4: 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.
Resolution No. 2023-
Section 5: 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 28th day of November, 2023.
NOAH BLOM
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
Attachment: Exhibit A - City Clerk Salary Schedule Adjustment 19-5
EXHIBIT A
RESOLUTION NO. 2023-
The City of Newport Beach
City Clerk Salary Schedule Adjustment
Employment Agreement Term: May 24, 2022 - May 24, 2026
Effective December 2, 2023 - 5% Salary Range Adjustment City Clerk
01 Low
$
57.83 $
10,024
$
120,288
City Clerk
01 Mid
$
72.29 $
12,530
$
150,354
City Clerk
01 High
$
86.74 $
15,035
$
180,419
Effective January 13, 2024 -
3% Cost -of -Living Adjustment
MONTHLY
POSITION
GRADE
HOURLY
City Clerk
01 Low
$
59.57 $
10,325
$
123,897
City Clerk
01 Mid
$
74.45 $
12,905
$
154,865
City Clerk
01 High
$
89.34 $
15,486
$
185,832
Effective
City Clerk 01 Low $ 61.35 $ 10,635 $ 127,614
City Clerk 01 Mid $ 76.69 $ 13,293 $ 159,511
City Clerk 01 High $ 92.02 $ 15,951 $ 191,407
Hourly rate rounded to the hundredth. Monthly and annual salaries rounded to the nearest whole dollar. 19-6
ATTACHMENT B
AMENDMENT B TO CITY OF NEWPORT BEACH
SEVENTH AMENDED AND RESTATED EMPLOYMENT
AGREEMENT — CITY CLERK
WHEREAS, on May 24, 2022, the City of Newport Beach, a California municipal corporation and Charter City ("Employer" or "City") and LEILANI I. BROWN ("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 May 24, 2022 through May 24, 2026;
WHEREAS, the City Council wishes to adjust Employee's base pay by 5% effective December 2, 2023; 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 One Hundred Eighty Thousand, Four Hundred and Nineteen Dollars ($180,419) ("Base Salary"), effective December 2, 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 Seventh Amended And Restated Employment
Agreement - Brown Page 1 of 2 19-7
EMPLOYER
CITY OF NEWPORT BEACH
A Municipal Corporation
LIN
Noah Blom, Mayor
Date:
Date:
EMPLOYEE,
An Individual
Leilani I. Brown
APP VED AS TO FORM:
By: Date: 1(6
Aaron C. Harp, City Attorney
In
ATTEST:
Leilatii Brown, City Clerk
Date:
Amendment B To Seventh Amended And Restated Employment
Agreement - Brown Page 2 of 2 19-8
ATTACHMENT C
City of Newport Beach
City Clerk 5% Adjustment to Base Salary
November 28, 2023
Key Contract Terms
Base Salary Adjustment Effective December 2, 2023 5.00% Summary of Proposal Cost
Baseline Compensation
Base Pay
Pension Contribution
Cafeteria Plan
Other City Paid Benefits'
Total
Cumulative Impact on Employee Compensation
Base Salary Increase
Total Compensation Increase Z
$174,405
$5,086
$8,982
$9,251
$23,319
12,069
352
622
640
$1,614
20,700
-
-
-
$0
25,963
430
759
782
1,970
$ 233,137 $
5,868 $
10,362 $
10,673 $
26,903
2.92% 5.15% 5.30%
2.52% 4.44% 4.58%
Notes
1 Includes Medicare, compensated absences, employee assistance program, phone allowances, auto allowance, life insurance, retiree health savings, deferred comp, and disability premium.
Z 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 FY 2025-26, 2% is assumed thereafter. 5 Contract term through 5/24/2026, but costs shown are for full fiscal year. ..�