2015-City Manager Bruce Channing's Compensation - Keeping it all in Perspective

KEEPING IT IN PERSPECTIVE - YOU DECIDE - Should Laguna Hills' City Manager Bruce Channing receive any additional compensation?

City Manager, Bruce Channing, from Laguna Hills, a city with a population of about 31,000 and a land mass of about 6.7 sq miles, was recently awarded a bonus of about $12,000, for his performance in 2014, in addition to his "cost of living" raise that automatically passes through to him when it is awarded to other management staff members. In the year 2013 (*there are not yet any 2014 compensation stats reported for City Employees) Laguna Hills City Manager Bruce Channing was reportedly still the highest paid City Manager in Orange County although he's employed by the 7th smallest of the 34 Cities in Orange County. He reportedly earned a total compensation of $383,081.82 in 2013.

We objected to his bonus and any additional increases, at least until such time as his total compensation fell more in line with his job related to the size and complexity of the city he has served for 24 years, and in relation to other cities in Orange County. When we asked why he would receive additional compensation while still being paid so seemingly out of proportion to so many other larger more complex cities in Orange County we were given the following reasons for his 2014 performance bonus:

Laguna Hills City Manager Channing's 2014 5% bonus = about $12,000 based upon his reported 2013 base salary. (*His 2014 base salary is not yet reported.) **Laguna Hills' City Manager Bruce Channing's 2013 compensation was reported to be -  $383,081.82  http://transparentcalifornia.com/ and http://publicpay.ca.gov/

Laguna Hills City Manager, Channing's 2014 Outstanding accomplishments were noted to be:

1. Negotiating a deal for a lower rate with the City's trash collection
service that resulted in extending service with the current trash collection company for another 8 years.

2. Consulting with Moulton Niguel Water District to increase their max. dollar caps on grants for water conservation projects and to underwrite the City's share of the cost to replace natural grass on the LHHS athletic field with artificial turf.

3. Negotiating a 10 year extension of the City's joint use agreement  with SVUSD for public use of the LHHS athletic field at no cost to the City including an extension of the numbers of days and times available to the Little League and soccer.

4. Negotiating with the OCTA for a Sound Wall related to the future widening of Freeway 5.

5. Sold approx. 3 acres of land to Vintage Real estate to be included in the development of the "Village at Nellie Gail".

We were advised that these accomplishments were "exceptional" and saved the city millions of dollars, and we acknowledge that thiws does appear to be great service for a small city, but our question is, knowing that City Manager's don't operate alone, but in conjunction with the Mayor, the City Council and other staff, and given that the City Manager of Laguna Hills is already paid so extravagantly compared with city managers in other OC cities plus the fact that he has worked in this same city for 24 years, wouldn't great service be expected for the compensation he is already receiving?

So, we decided to take a look at the 2 Cities, whose City Managers received less compensation than the Laguna Hills City Manager but did receive the 2nd and 3rd highest reported city manager compensations in Orange County. We wanted to see what these lesser paid City Manager's had a hand in accomplishing in their cities in the year 2013 so we would have something to compare with the Laguna Hills City Manager's 2014 accomplishments related to "exceptional service". (* the 2014 accomplishments of the city managers in Anaheim and Irvine have not yet been published)

ANAHEIM - 2014 Jan. 28, 2014 State of the City - Accomplishments of the City Manager of Anaheim for 2013  (City with a population of about 336,265 and a land mass of 50.8 sq miles) ** Anaheim's City Manager Marcie Edwards' 2013 compensation was reported to be $375,728.17 - She received the 2nd highest city manager compensation in Orange County - $7,353.65 less than the Laguna Hills City Manager. - http://transparentcalifornia.com/ and http://publicpay.ca.gov/   http://www.anaheim.net/articlenew2222.asp?id=5230

1.  Report on the Anaheim Ducks and their importance to the City related to the attendance of 54,000 fans they bring to the City.

2.  Report on the Angels drawing more than 3 million fans and issue of being engaged in talks re. the new lease for Angel Stadium.

3. Report on the Disneyland Resort adding 1,000 jobs bringing their total to 26,000 jobs.

4. Report on robust business for the Anaheim Convention Center with an 11% increase in meetings and conventions and drawing record crowds of nearly 100,000 people and dealing with the issue of expanding the convention center.

5. Report on New Robust Hotel construction.

6. Opening of a new theater Arts Center through a generous gift.

7.  Announcement of the pending completion of the new Artic Center which will be open for business.

8. Announcement of adding a combined 7 miles of new freeways to the 57 and 91 which will impact the lives of hundreds of thousands of people.

9. Announcement of Addition of 2 new parks and redevelopment of a park and family resource center. Announcement of rebuilding of playgrounds at 3 parks through public and private partnerships and volunteers.

10. 1,400 residential units approved and 1,000 of these to begin construction this year.

11. Other Capital Improvements of new traffic signals and neighborhood street lights.

12.  New system of green corridors filled with shade trees, pocket parks and open spaces planned for high density areas.

13. Announcement Significant growth in past 3 years of hotel bed tax and sales tax.

14. Advocating for Pension reform.

15. Announcement of the launching of a new partnership with OpenGov.com to give residents new insight and access to the city's financial information and make the city more accountable.

16. City Manager is launching a new Public Safety Board to provide residents with the opportunity to play a larger role in monitoring and reviewing the work of the City;s first responders to make police and firefighters more responsive and accountable to the public.

17. Discussions of At Large vs. District based elections.

18.  Announcement of work done on cutting Red Tape for businesses chaired by a Member of the Argyros School of Business, including city business community, city staff, and city council members. Progress so far includes the elimination of conditional use permits for many businesses, allowing business owners to prepare their own parking studies.The Planning Dept. now being able to process simple CUPs in as little as 35 days, etc. - all of this saving business owners thousands of dollars and months of delay, changing the culture of business.

19. CA. Governor's Office of Business and Economic Development recently recognized the City of Anaheim's Business Assistance program and Planning Dept.  for its customer service.

20.  Working with Creative business people to develop a downtown atmosphere that will draw people from the city, and the region as well as the convention and tourist population.

21. Dealing with multiple other issues of homeless residents through an outreach team. Stressing Anaheim as a City of Kindness, connectivity and community. Dealing with truancy, gang violence and illiteracy.  School children of Anaheim have embraced a challenge to complete a combined One Million Acts of Kindness this year.  Bringing the community together with schools to help prepare students for future job success. Recognizing outstanding citizen accomplishments, promoting a City of Kindness.


IRVINE - 2014 Feb. 25, 2014 State of the City - Accomplishments of the City of Irvine (City with a population of about 236,716 and a land mass of 66 sq. miles)  ** Irvine's City Manager, Sean Joyce's 2013 compensation was reported to be $373,397.89.  He received the 3rd highest city manager compensation in Orange County - $9,683.93 less than the Laguna Hills City Manager. http://www.cityofirvine.org/civica/filebank/blobdload.asp?BlobID=24505

1.  Announcement that Irvine ranked Number 1 for 2014 by 24/7 Wall Street's annual report on Best Run Cities.

2.  Sales tax increased 3.7%, assessed evaluation increased nearly 5% and City hotel tax grew by 6.1% from the previous year.

3. Plan to retire nearly our entire unfunded pension liability in 10 years to save the City between $22 and $34 million.

4. Approved an agreement with the Fire Authority that will refund an estimated $175 million or more to the City for years of overpayment.

5.  Announcement of promotion of the City internationality through Irvine's sister Cities and Friendship cities.

6.  Streamlined operations for the Great Park with the help of our longtime public partner President and CEO of Five point Communities, and 1st phase of Great Park Neighborhoods is now selling. Accepted an offer from Five point Communities to build 688 acres over the next 5 years. The value of this agreement exceeds $200 million. Five Points has committed and additional $15.5 million to help cover Modifications, $2 Million to study development of the Cultural Terrace, $10 million to renovate and expand Marine Way and $2 million toward terra-forming undeveloped areas.

7.  Recently reached and agreement in principle with Broadcom to keep their new campus within the Great Park Neighborhood and potentially in Irvine for years to come.

8. Working with UC Irvine to encourage research ideas from UCI to stay in and grow Irvine. UCI is creating an Institute for Innovation that will focus on transferring discoveries fro the lab to the market place.

9. We have asked Irvine Company and FivePoint Communities to move forward with attractive space rent to entice relocation of leading tech companies from around the world.

10. The Mayor-Chamber Advisory council on Business is providing a forum for ideas for business creation, job creation and business friendly environment.

11. Looking into the building of a Metropolitan Central Library at the Great Park. Establishing a Library Foundation Steering Committee.

12. The U. S. Dept. of Energy Solar Decathlon is returning to Irvine in 2015. The last the tis was hosted by Irvine 64,000 people attended.

13. Irvine has the proud distinction for the 9th straight year of being the safest city in America for communities with a population of more than 100,000, based upon FBI stats on violent crime.

14.  $4 million is provided to Irvine Unified School district and Tustin School District each year and the City of Irvine provides additional in-kind and other support bringing the value to $8.5 million.

ALL 34 ORANGE COUNTY CITIES are listed below with population, land size and total compensation for their City Managers.

Compensation Stats were taken from - http://transparentcalifornia.com/ and from http://publicpay.ca.gov/ for end of year 2013 - Total Compensations appearing in "RED" are the highest found in the 2013 end of year stats for all Orange County Cities.

Population and Sq. Miles Stats from - http://search.aol.com/aol/search?query=List+of+largest+CA.+Cities+by+Population&invocationType=msie70a
based on estimates from July 2013, by the United States Census


OC CITIES WITH LESS THAN - 50,000 POPULATION - listed from smallest to largest population

City of Villa Park - Population - 5,951  Sq. Miles - 2.078 - City Manager
Jarad Hildenbrand - Total Pay and Benefits = $150,337.00
City of Los Alamitos - Population - 11,652  Sq. Miles - 4 -  In 2013 City
Manager Angela Avery retired, there was an interim city manager and
Brett Plumlee who is the current City Manager. For all 3 of them the 2013 - Total Pay and Benefits = $191,996.00
City of La Palma - Population - 15,892  Sq. Miles - 1.832 -  City Manager
Ellen Volmert - Total Pay and Benefits = $191,020.73
City of Laguna Woods - Population - 16,400  Sq. Miles - 3.115 -  City
Manager Leslie Keane - Total Pay and Benefits = $239,126.79
City of Laguna Beach - Population - 23,250  Sq. Miles - 10 -  City
Manager John Pietig - Total Pay and Benefits = $290,337.34
City of Seal Beach - Population - 24,168  Sq. Miles - 13.040 - City
Manager Jill Ingram - Total Pay and Benefits = $268,901.04
City of Laguna Hills - Population - 30,880  Sq. Miles - 7.6 - City
Manager Bruce Channing - Total Pay and Benefits = **$383.081.82**-
This was the Highest 2013 Total Compensation we found reported
for Orange County - This is in the 7the smallest city in OC.

The 2nd highest 2013 total compensation we found reported in
Orange County, was $375,728.17, for the City Manager of Anaheim - A city with a Population 336,265 and 50.8 sq. miles and the largest city,
by population, in Orange County.

The 3rd Highest 2013 Compensation we found reported in Orange County was $373,397.89, for the City Manager of Irvine - A city with a Population of 236,716  and 66 sq. miles and the 3rd largest city, by population, in Orange County.

City of Dana Point - Population - 34,037  Sq. Miles - 6.5 - City Manager
Doug Chotkevys - Total Pay and Benefits = $297,394.00
City of San Juan Capistrano - Population - 35,852  Sq. Miles - 14.295 - City Manager Karen Brust  - Total Pay and Benefits = $327,283.00
City of Stanton - Population - 38,623   Sq. Miles - 3.150 - City Manager
James Box - Total Pay and Benefits = $236,858.00
City of Brea - Population - 41, 394  Sq. Miles - 12.43  City Manager Tim
O'Donnell - Total Pay and Benefits = $339.360.00
City of Cypress - Population - 47,802  Sq. Miles 6.61 - City Manager John Bahorski - Total Pay and Benefits = $314,087.10
City of Aliso Viejo - Population - 48,721  Sq. Miles - 7.5 - City Manager Mark Pulone resigned in August of 2013 so Total Pay and Benefits were only = $175,803.00 for 2013
City of Rancho Santa Margarita - Population - 49,228  Sq. Miles 13.1 - City Manager Jennifer Cervantez - Total Pay and Benefits = $222.023.00


OC CITIES WITH MORE THAN 50,000 but LESS THAN 100,000 POPULATION - listed from smallest to largest population

City of Placentia - Population - 50,533  Sq. Miles - 6.582 - City
Administrator - Troy Butzlaff - Total Pay and Benefits = $219,391.00
2013 compensation information from Placentia was not reported on
Transparent California so was taken from CA. State controller's Office at http://publicpay.ca.gov/
City of Fountain Valley - Population - 55,313  Sq. Miles 9.03 - City
Manager Ray Kromer retired in 2013 and Robert (Bob) Hall became the
new City Manager - Total Pay and Benefits for both of them in 2013 =
$280,536.00
City of La Habra - Population - 61,653  Sq. Miles - 7.376 - City Manager - Donald Hannah - Total Pay and Benefits = $266,022.59
City of Laguna Niguel - Population - 64,652  Sq. Miles - 14.885- City
Manager - Rodney Foster - Total Pay and Benefits = $218,851.55
City of San Clemente - Population - 65,040  Sq. Miles - 19.468 - City Manager - Pall Gudgeirsson - Total Pay and Benefits = $323,393.00
City of Yorba Linda - Population - 67,032  Sq. Miles - 20.018 - City Manager - 2 City Managers listed - Mark Pulone -  $103,108.46 and Steve Rudometkin - $91,528.60 2013 Total Pay and Benefits for both = $194,636.06
City of Lake Forest - Population - 77,264  Sq. Miles - 17.902 - City Manager -Robert Dunek - Total Pay and Benefits = $320,310.15
City of Tustin - Population - 78,327  Sq. Miles - 11 - City Manager - Jeffrey Parker - Total Pay and Benefits = $342,053.92
City of Buena Park - Population - 81,460  Sq. Miles - 10.29 - City Manager - James Vanderpool - Total Pay and Benefits = $269,859.00
City of Newport Beach - Population - 87,273  Sq. Miles - 53 - City Manager - David Kiff - Total Pay and Benefits = $307.391.28
City of Westminster - Population - 91,739  Sq. Miles -10 - City Manager Eddie Manfro - Total Pay and Benefits = $297,934.72
City of Mission Viejo - Population - 96,346  Sq. Miles - 18.123 - City Manager Dennis Wilberg - Total Pay and Benefits = $310.234.98


OC CITIES WITH POPULATION of MORE THAN 100,000 POPULATION - listed from smallest to largest population

City of Costa Mesa - Population - 111,358  Sq. Miles - 15.5 - CEO Tom Hatch - Total Pay and Benefits = $303.686.25
City of Fullerton - Population - 138,981 Sq. Miles - 22 - City Manager Joseph Felz - Total Pay and Benefits = $287,206.23
City of Orange - Population - 139,969  Sq. Miles - 25 - City Manager John Sibley - Total Pay and Benefits = $292,525.00
City of Garden Grove - Population - 174,140  Sq. Miles - 17.959 - City Manager - Matthew Fertal - Total Pay and Benefits = $358,144.71
City of Huntington Beach - Population - 193,480  Sq. Miles - 32 - City Manager - Frederick Wilson - Total Pay and Benefits = $325,500.60
City of Irvine - Population - 236,716  Sq. Miles - 66 - City Manager Sean Joyce - Total Pay and Benefits = $373,397.89
City of Anaheim - Population - 336,265  Sq. Miles - 50.8 - City Manager Marcie Edwards - Total Pay and Benefits = $375,728.17
City of Santa Ana - Population - 334,227  Sq. Miles - 28 - 2 City Managers listed for Santa Ana in 2013 - Kevin O'Rourke - $121,921.80 and David Cavazos who started in Oct of 2013 - $67,598.97 so 2013 Total Pay and Benefits for those 2 = $189,520.77, however
**According an OC Register Newspaper report on Thursday Jan 22,
2015, City Manager David Cavazos was hired in 2013 and the 1st year
cost of his contract was expected to be $558,625.  He did not receive a
bonus for 2014, but did receive a salary increase to offset a reduction in
medical retirement benefits, according to a city staff report. It was also
noted that this City Manager is collecting a projected $235,863 pension
from the City of Phoenix, AZ. according to the Arizona Republic. ***$558,625*** for 2014 is the**Highest Total Compensaton reported to date that we have found in Orange County.

Friday, January 16, 2015

The Laguna Hills' City Manager, Bruce Channing, unanimously received an annual bonus of 5% of his 2014 salary at the Laguna Hills City Council Meeting on Tuesday, January 13 of this year, despite protests from residents, and despite long being recognized as the Highest Paid City Manager in Orange County.  His total Compensation for 2013 was reported on www.transparentcalifornia to be $383,081.00.         Because Laguna Hills is a very small city with a population of only about 31,000, and a land area of only 6.7 square miles, it didn't make any sense to many residents who learned, years ago, that the City Manager of Laguna Hills was the highest paid City Manager in the entire County of Orange.

Anaheim is the most populous City in Orange County with 345,000 residents and 51 sq miles of land, second only to the City of Irvine with 66 sq. miles and a population of about 237,000.  Yet, the total compensation of the City Manager of Laguna Hills', last reported in 2013 to be $383,081.00, exceeded the compensation of the City Manager of Anaheim by more than $7000 and exceeded the compensation of the City Manager of Irvine by more than $9000. 

The only city manager we could find in Orange County who was paid more than the Laguna Hills City Manager in 2013 was Santa Ana's City Manager, David Cavos, who was hired in 2013 and quickly came under scrutiny for "raking in" more than $500,000.

It doesn't make any more sense to us today for the Laguna Hills City Manager to be paid so excessively, but if that could not be corrected, barring large contractual issue expenses for the City, many residents, at least expected a strong compensation line to be held, by the city council, related to any types of further increases.  

An annual bonus for the City Manager of Laguna Hills already exists in that he continues to receive the still excessive compensation he was awarded many years ago and he continues to have choices of moving on to function in a large and more complex city or to continue to serve the residents of the City of Laguna Hills, at the highest level, with gratitude for the exceptional compensation he is currently receiving. 

We know that the Laguna Hills' City Manager receives annual pass through raises at the same percentage given to the rest of the city management staff, but if the city council seeks to provide this already highly compensated city manager with any additional compensation, in any form, we strongly request that in the future they honor the residents by:
1.  Clarifying their rationale publicly,
2.  Stating amounts for the residents in terms of dollars and cents, rather than vague percentages and 
3.  Stress clear opportunities for public input in advance of voting on this issue.

Jean Bland, Editor, Laguna Hills Watch Dog