Newport Beach city manager set to retire in December, transition planned

Los Angeles Times

3 days ago

Grace Leung, who has guided Newport Beach as its city manager since 2018, is planning to retire from her post in December.
Mayor Joe Stapleton announced Leung's retirement during the Newport Beach City Council meeting on July 8 after council members unanimously voted to amend a previously approved five-year contract to reflect her retirement date.
'We are truly fortunate to have her serve as our city manager for the past seven years,' he said. 'While her retirement is well deserved, we are grateful that she has agreed to continue serving through Dec. 26… to support a smooth transition.'
Leung, who attended jury duty in lieu of the council meeting, previously worked for Irvine and Sunnyvale in a local government career spanning 30 years. Newport Beach hired Leung in September 2018 with a $265,000 starting salary to succeed retiring City Manager David Kiff. Her current salary is $345,000.
According to a city staff report, Leung's own retirement first came up during performance evaluation meetings with council members in February and April. She pledged to stay on the job until city officials had a leadership transition plan in place.
Stapleton noted that Assistant City Manager Seimone Jurjis is being considered for the city manager position once it opens.
Before then, Leung's leadership navigated Newport Beach through its response to the coronavirus pandemic. She balanced budgets with a rebound in tax revenues in the years since and also spurred a slew of capital improvement projects.
Pleased with her performance, a council majority voted in 2022 to extend her contract through December 2026.
Leung's decision to retire before the end of that contract comes amid a lawsuit filed last November against the city by Human Resources Director Barbara Salvini. The complaint alleged that Leung tried to cover up an audit that suggested she manipulated employee leave time for personal gain.
Salvini also claimed that Leung and City Atty. Aaron Harp retaliated against her.
The city previously described the suit to the Daily Pilot as one 'without merit.' A hearing is scheduled for Aug. 4 in the case.
John Pope, a Newport Beach spokesperson, said Leung's decision to retire had nothing to do with the suit.
With Leung retiring at the end of the year, one local watchdog had other questions about her amended contract.
'The whole thing is irresponsible,' said Jim Mosher, a Newport Beach resident, during the council meeting. 'This agreement is having her continue to be paid even though she will not be the city manager next year. What we don't need is to be paying two city managers at the same time.'
Council members voted to appropriate $455,000 to cover Leung's salary and benefits for the 2025-26 fiscal year under the agreement.
While the council did decide to pay out the rest of Leung's contract, Pope noted that it won't overlap with a newly appointed city manager's contract, which would take effect the day after her retirement.
Moving forward, the council is expected to vote on Jurjis' appointment during its July 22 meeting. If appointed, Jurjis would start as city manager on Dec. 27.
'It's wonderful to know that we have such a great succession plan in place,' said Councilmember Robyn Grant. 'I look forward to working with our new leadership.'