HomeMy WebLinkAbout98-5 - City Manager Compensation•
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RESOLUTION NO. 98 —s
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF NEWPORT BEACH ADJUSTING
THE COMPENSATION OF THE CITY
MANAGER
WHEREAS, the City Manager has received no increase in salary during his term of
employment with the City of Newport Beach which began in March, 1992; and
WHEREAS, during that period all management employees have received salary
adjustments between 14% and 17 %; and
and
WHEREAS, since 1992 the Cost of Living has increased approximately 10.31 %;
WHEREAS, the City Manager has achieved substantially all of the goals set for
him by the City Council during that period and his performance, his hours of service, and
dedication for the City all warrant a salary adjustment; and
WHEREAS, the salary adjustment contemplated by this Resolution is
accompanied by a reduction in flex leave accruals;
NOW, THEREFORE, BE IT RESOLVED by the City of Council of the City of
Newport Beach that the Mayor is authorized to execute amendments to the employment
contract between the City and the City Manager consistent with the memo to the City
Council attached as Exhibit "A" to this as Resolution.
ADOPTED, this 12th day of January, 1
ATTEST:
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LaVonne Harkless, City Clerk
F:\cat\da\Resolution\ManagerSal.doc
Edwards, Mayor
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• CITY OF NEWPORT BEACH
Office of the City Manager
January 12, 1998
TO: City Council
FROM: Mayor Thomas C. Edwards
Mayor Pro Tern Dennis O'Neil
Councilmember Jan Debay
SUBJECT: COMPENSATION ADJUSTMENT FOR CITY MANAGER
As directed by the City Council, we've met and discussed an adjustment to the
salary of the City Manager. Following that discussion, we enclose for your
information our recommended compensation adjustment. We're providing as
background information the following:
1. A survey of all city manager salaries in Orange County as prepared by
the Orange County Division of the League of Cities (Attachment 1).
•
2. A schedule listing adjustments received by represented and non -
represented employees during the period of the City Manager's
employment, March 1992 to present (Attachment 2).
3. A list of council goals for the last three years (Attachment 3).
Historical Perspective
To put in perspective Mr. Murphy's present situation, he has had no increase in
salary since beginning his employment in 1992. Since 1992 the City has
adjusted the compensation levels of all of our City employee (see Attachment 2).
During his tenure, the City Manager has repeatedly demonstrated his
commitment and devotion to this organization and there are numerous
examples of the results of his commitment. During lean fiscal years this
commitment has included not requesting a salary adjustment so that the City
Council's fiscal message of hard times is consistent with our policy on senior
executive salaries.
The City in year's past has had the financial resources and support in the
• community to put off key decisions. This abruptly changed in the fiscal year the
City Manager arrived to work in Newport Beach. For example, on assuming the
City Manager position in March 1992, the draft 1992 -93 fiscal year budget was
$12 million out of balance before he began making reductions and adjustments.
• Then to compound the difficulties, the State shifted $2 million of the City's
property tax revenues to the schools, followed by a similar action in 1993 -94 of
$1.3 million. Under his direction, the City has rebounded from the recession
and State raids. Needless to say, he has had to make some difficult decisions
due to these new fiscal circumstances which many of our constituents and City
employees can't fathom because of our past fiscal affluence.
Longstanding Issues
The City Council has directed the City Manager in the last five years to face up
to several long standing issues which have been "boiling" under the surface for
years in the City. Frankly, past councils ignored many of these issues.
Examples include: 1) The "War Zone" of West Newport Beach. Arrests are
down, noise complaints are down and when was the last reference to the "War
Zone ? "; 2) The establishment of an Economic Development program; 3) A new
Balboa Bay Club lease requiring the rehabilitation of the facility; 4) The
problems of alcohol establishments for the Police Department; 5) A plan to
revitalize the Peninsula (and actually commencing the work program with a
funding source); 6) Completing a Groundwater system; 7) Taking on the
Marinapark Tidelands issue; 8) Closing in on annexing the Newport Coast; and
finally 9) Dealing with runaway leave benefits of our employees. The City
• Manager, with Council direction and support, has tackled many issues with
success.
Achievements
The City Manager, at the Council's request, provided the City Council with a
list of accomplishments recently and we would like to list a few of these as a
reminder of the issues:
• Fletcher Jones Motorcars Relocation
• Comprehensive Zoning Ordinance Rewrite
• Privatized Tree and Parkway Maintenance
• Reclaimed Water Agreement with IRWD /OCWD and End Users
• Emergency Medical/Ambulance Program in 1993 and 1996
• Bonita Canyon Annexation
• Joint Helicopter Service
• Income Property Policy
• Bankruptcy Recovery Plan for League of Cities
• 10 Year Landfill Agreement with County at $22 /ton
• Re- negotiated Recycling Agreement with CRT for Lower Costs
• Balboa Island Fire Station
• Reorganization of City Departments from 13 to 8
• Proposed Compensation Adjustment
Since 1992 if the City Manager had received the same adjustments as all other
non - safety represented employees, his salary today would be $149,148 or nearly
12% higher than its present level of $132,912. The cumulative costs of these
periodic adjustments, had they been approved would have been $66,000, when
factoring in only salary and retirement costs.
As stated earlier, the cost of living for the past five- and -a -half years has been
10.31 %. After reviewing the increases received by all our other employees, we
think you would agree that the City Manager should be entitled to a substantial
salary adjustment for his accomplishments, long hours and dedication to the
City. Based thereon, we are recommending an adjustment of 5% retroactive to
January 1, 1997 and 5% effective July 1, 1998. The adjustments we are
recommending would set his new salary at $139,558 or $11,630 per month
effective immediately and then $146,535 or $12,211 per month in July 1998.
We also recommend that the City Manager's Flex Leave accrual be reduced to
21 days per year, which is a reduction of four days per year, and exceeds all
other employee flex leave reductions.
If you have any questions, please feel free to contact the three of us prior to the
• formal consideration of this matter.
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ATTACHMENT 3
COUNCIL PRIORITIES
• 1995
• Fiscal
• Economic Development/Advanced Planning
• Airport Monitoring /Issues
• Organization Development/Task Organization
1996
• Downcoast Annexation
• Fiscal
• Airport
• 0 Economic Development
• City Landfill Disposal
1997
• Airport Monitoring /Issues
• Marine Environmental and Water Quality Issues
• Advanced Planning/Annexation
• Water Service Delivery /Quality
• Crime Prevention
• Economic Development
• Employee Relations /Negotiations
• 0 Financial Forecasting
• Tidelands Administration /Management
•
•
•
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 98 -5, was duly and regularly introduced before and adopted by the
City Council of said City at a regular meeting of said Council, duly and regularly held on the 12th
day of January, 1998, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Thomson, Debay, O'Neil, Hedges, Glover, Noyes, Mayor Edwards
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 13th day of January, 1998.
(Seal)
l i
6a 1h, M. lv wle-,"
City Clerk of the City of
Newport Beach, California