News Summary
Grace Leung, Newport Beach’s City Manager, has resigned following a severance agreement costing taxpayers nearly $370,000. This decision arises amid a lawsuit alleging her misconduct regarding public funds. While the city deemed the lawsuit baseless, the settlement marks a significant change in leadership as the city tackles critical housing challenges. Seimone Jurjis is appointed as the new City Manager. The community reacts to Leung’s departure with mixed feelings, influenced by the ongoing legal issues that also question her legacy during her time in office.
Newport Beach – Long-time City Manager Grace Leung has been forced to resign, following a severance agreement announced last month that will cost Newport Beach taxpayers nearly $370,000 in the upcoming year. The decision comes in the wake of a lawsuit alleging Leung urged a human resources director to modify records related to an inappropriate use of public funds. Although the city previously labeled the lawsuit as baseless and claimed that their investigation found no wrongdoing on Leung’s part, the financial settlement signals an end to her tenure, which began in 2018.
Under the terms of the severance, Leung will receive a one-year payment alongside additional compensation for the rest of the year while she assists incoming City Manager Seimone Jurjis. This financial arrangement is typical for city managers dismissed by elected officials, with severance packages usually covering six to twelve months of salary.
The resignation comes at a critical time for Newport Beach, as the city navigates significant housing challenges. Mayor Joe Stapleton indicated that parting ways with Leung was a decision made thoughtfully, with a focus on the community’s future, particularly regarding state-mandated affordable housing quotas. Newport Beach aims to approve 4,845 new housing units by 2029, with approximately 3,633 of these units designated for low- to moderate-income households. The city’s housing plan faced legal scrutiny, but an Orange County Superior Court ruling upheld Newport Beach’s housing regulations.
Seimone Jurjis, who was appointed Assistant City Manager in July 2023, has now been elevated to the City Manager position following Leung’s departure. The city council decided against conducting a national search for a new city manager, believing Jurjis is well-equipped to handle ongoing housing issues. Community feedback regarding Leung’s removal has been mixed, with some residents suggesting that her dismissal is more connected to the ongoing lawsuit from former HR Director Barbara Salvini than the housing challenges at hand.
Salvini’s lawsuit alleges that Leung directed her to alter records concerning an illegal gift of public funds and subsequently retaliated against her for seeking an investigation. Although Mayor Stapleton maintained that there is no link between the lawsuit and Leung’s resignation, the circumstances have raised concerns in the community. A court trial regarding the Salvini lawsuit has been scheduled for August 2026.
Throughout her tenure, Leung has overseen numerous significant initiatives and challenges, including managing the city’s finances during the COVID-19 pandemic and addressing various operational issues. Recent claims made in the lawsuit further complicate her legacy, with allegations related to her handling of employee leave time management.
The Newport Beach City Council has approved an appropriation of $455,000 to fund Leung’s salary and benefits as part of the severance agreement. In the upcoming city council meeting, members plan to vote on Jurjis’ appointment as the new City Manager, as he prepares to lead the city through ongoing development and housing challenges.
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Additional Resources
- OC Register: Top Official in Newport Beach Will Get a One-Year Severance
- LA Times: Newport Beach City Manager Retirement Date
- Newport Beach Indy: Newport Beach City Manager Grace Leung to Retire in December
- Wikipedia: Newport Beach, California
- Encyclopedia Britannica: Newport Beach
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
