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HomeMy WebLinkAboutAgenda Packet 03/27/2012AGENDA- A. CALL TO ORDER SPECIAL MEETING AT 5:00 P.M. B. ROLL CALL PLEDGE OF ALLEGIANCE C. WORK SESSION 1. Department Reorganization Efforts 2. Recruitment Process Finance Director 3. 2012 Community -Wide Visioning Process 4. Budgeting for Priorities D. ADJOURNMENT pORTANGELES W A S H I N G T O N U S A AGENDA CITY COUNCIL MEETING 321 E. FIFTH STREET MARCH 27, 2012 SPECIAL MEETING 5:00 P.M. NOTE: HEARING DEVICES AVAILABLE FOR THOSE NEEDING ASSISTANCE MAYOR TO DETERMINE TIME OF BREAK Maich 27, 2012 Port Angeles City Council Meeting Page 1 City Department Reorganization Efforts KENT MYERS, CITY MANAGER CITY COUNCIL WORK SESSION MARCH 27, 2012 Outline of Presentation (0) Goals Past History Current Possibilities Current Structure of Public Works Utilities Department Structure of Public Works Departments in other Washington Cities Options for Reorganization Public Works Department Council Comments and Direction Next Steps City Manager Performance Goal #3 (0) Implement Additional Efficiency Improvements Such as Reorganization of City Departments and Functions Goals for Reorganization 1. Improve Customer Services 2. Reduce Expenses Including Staffing Costs 3. Improve Coordination Between Different Municipal Services or Operations 4. Improve Management Oversight 5. Improve Overall Quality of Services Provided 6. Decrease Span of Control 3/27/2012 1 Past History of Reorganization Public Works Utilities Department: City Light was Separate Department Solid Waste Reorganization Water Wastewater Divisions Clerical Reorganization Parks Recreation Division Current Possibilities for Reorganization Police Department Human Resources Division Public Works Utilities Department Past History of City Reorganization Fire Department Police Department Finance Department IT Division Community and Economic Department City Attorney's Office City Manager City Clerk Structure of Public Works Department 3/27/2012 2 Structure -Other Public Works Departments (0) Richland Cheney Centralia Ellensburg Milton Blaine Steilacoom Tacoma 4 5 Other Options Options for Reorganization Public Works Department (0) 1 Maintain Current Structure with Public Works Director Over All Public Works and Utility Functions and Three Deputy Directors 2 Separate Electncal Utilities Into Different Department with New Director of Electrical Utilities Position 3 Separate Public Works Into Two Departments Including Field Operations Department (Street, Park, Fleet, Etc.) and Utilities Department (Electrical, Water, Wastewater, Etc.) With Director Over Each Department Separate Parks and Recreation into Separate Department Structure -Other Public Works Departments Cities Surveyed Had Traditional Public Works Structure with Single Public Works Director Functions Include: Streets, Water, Wastewater, Stormwater, Garbage Collection (including contract services) Recycling, Engineenng and Utility Permits Cities with Electrical Utility: Most have separate Electrical Utility Department Council Comments and Direction (0) Preferred Option? Timing? Additional Information for Final Consideration 1. Costs for Preferred Option 2. New Proposed Organization Chart 3. Legal Guidance 4. Other Information 3/27/2012 3 City Manager, Kent Myers Finance Director Recruitment City Council Work Session March 27, 2012 Appointment of Interim Linda Kheriaty Acting Finance Director Great Job Other Projects and Priorities Interviews for Interim Finance Director Serve 3 to 4 Months Salary Undetermined Will Not Exceed Current Costs for Salary and Benefits Recruitment Plans Appointment of Interim Finance Director Recruitment and Hiring Schedule Retaining Outside Recruitment Firm Recruitment and Hiring Schedule Tentative Schedule March 21 March 3o Review and Update Job Description Prepare Advertisement Apri12 -May31 Advertise Accept Applications June 1 15 Screen and Select Finalists Schedule Interviews 3/27/2012 1 Recruitment and Hiring Schedule Tentative Schedule June 18 July 6 Conduct Interviews July 9 -13 Make Selection August 1 -1 5 New Finance Director Begins Employment Finance Director Recruitment Comments? Questions? Retain Outside Recruitment Advantages and Disadvantages Estimated Costs Cost Savings Vacant Finance Department Positions Lower Starting Salary for New Director 3/27/2012 2 Community Visioning Kent Myers, City Manager City Council Work Session March 27, 2012 Council Retreat Council Members Discussed Future Vision of Community Council Members Identified Personal Visions of Community Community Visioning Current Community Vision Statement: "Port Angeles is a naturally unique, diverse, and innovative community where people desire to live work and visit." Facilitate Long Range Visioning and Planning for City 3/27/2012 1 Key Questions i What process does the Council want to follow in creating community visioning 2 Is Council comfortable with City Manager leading this process or should someone else take the lead to facilitate this process? 3 How involved does the Council want to be in the process? a Should this be a Council visioning process, community -wide visioning or neighborhood level visioning? Key Questions s What will the role of the Planning Commission be? 6 How should the visioning process be coordinated with the comprehensive planning process that will start in 201 5? 7 What other groups should be involved? 8 What efforts should the City take to maximize public participation? 3/27/2012 2 Kent Myers, City Manager Budgeting for Priorities City Council Work Session March 27, 2012 Issues and Topics Current Budget Status Current Financial Challenges Facing City Potential New or Expanded Programs -2o13 Funding of Additional Costs Budgeting for Priorities Accomplishments to Date Key Questions Completion of Budgeting for Priorities Process City Manager Performance Goal 5 Complete Budgeting for Priorities Process to Guide City with Major Budgetary Decisions City Budget 2011 General Fund 2011 General Fund Revenues Budget $18,625,853 Actual $18,489,825 Difference $136,028 2011 General Fund Expenses Budget Actual Difference $18,685,380 $18,370,403 $314,977 Actual Revenues Exceeded Actual Expenses By: $119,422 3/27/2012 1 Current Financial Challenges State Budget Reductions Impact on City Currently Unknown Flat Revenues in Virtually Every Area Continued Increases in Several Major Expenses: Health Insurance, Retirement, Jail and Fuel Costs, Several Unfunded 2012 Expenses Retirements and Special Election Costs Potential New or Increased Expenses May Require Funding Increases in 2013 Major Challenges Funding of Additional Costs in 2013 No Identified New or Increased Revenue Sources May Require Reductions or Elimination of Other City Programs Prioritization of Certain Programs and Services Budgeting for Priorities Potential New or Increased Costs May Require Funding in 2013 Rehabilitation and Stabilization of 215 S. Lincoln Maintenance Costs for Waterfront Improvements Addition of Hearing Examiner Additional Funding Support for Fine Arts Center Increase Front Counter Hours at City Hall Addition of Long -Range Planner Position Public Works Reorganization Municipal Court Start-Up Costs Employee COLA Increases Street Paving Budgeting for Priorities Steps Accomplished 1. Comprehensive Citizen Survey 2. Established Council Priorities Financially Responsible Government Plan for a Sustainable Community Excellence in Government Our Unique Community Economic Development Public Safety 3/27/2012 2 Budgeting for Priorities Steps Accomplished 3. Established Program Scoring System 4. Developed Comprehensive Listing of City Programs for Scoring Needs Refinement 5. Started Scoring Process Need to Decide Who Should be Involved in Scoring Budgeting for Priorities Additional Comments? Questions? Completion of Budgeting for Priorities Key Questions 1. Is City Council Fully Committed to Budgeting for Priorities? 2. Are you prepared to make program reductions based upon the final priorities. 3. Would Council be Willing to Consider New or Increased Fees or Taxes to Fund Certain Priorities? 4. Are there certain programs which cannot be reduced or eliminated? If so, these programs will not be included in the prioritization process. 5. Who should be involved in priority scoring process? 3/27/2012 3 Public Works Department Organizational Structures. 3/1/12 I was asked to survey the cities below for the organizational structure of public works functions. City of Richland City of Cheney City of Centralia City of Ellensburg. City of Milton City of Blaine City of Steilacom City of Tacoma Tacoma: Population 204,200. Obtained data from web site; city did not respond. Staffing in PW is at least several hundred employees. PW Department functions: Wastewater, Solid Waste and Recycling, Streets, Stormwater, Fleet Maintenance, Engineering, Facility Maintenance, Community Gardens, Abandon Autos, Permits, and Capital projects. Note: They have a separate Public Utilities Department in Tacoma: includes Electric Utility, Water telecommunications, and Rail Freight Services. Richland: Population 48,580. 106 total staffing in PW Dept. Budget: $36,785,774 PW functions: Water, Wastewater, Stormwater, Solid Waste, Streets, Engineering (transportation and CIP divisions). Cheney: Population 10,680. 23 personnel. Budget: 4.8 million. PW functions: street, water, wastewater collection, ww treatment plant, solid waste collections and a recycling center. Ellensburg: Population 17,326. 40 personnel. Budget: not submitted. PW functions: Engineering, Stormwater, Water, Sewer, Street, Equipment Services. Centralia: Population 15,570. Staffing and budget: not submitted. The City referred me to their web site, which is very difficult to navigate. I could not find the staffing and the budget is broke into dozens of funds. PW functions: Water, Street, Waste Water, Storm water, Engineering. Centralia has an electric utility in the City Light Department, separate from public works. Park /Rec. is also a separate department. Milton: Population 6,540. 20 personnel in PW Dept. Budget, 12 million PW Functions: Electric, Water, Stormwater, Fleet Maintenance, Engineering. Blaine: Population 4,790. Est. personnel 30. Est. PW budget 7.5 million. PW Functions: Water, Wastewater, Stormwater, Electric Utility, Street, Engineering, and Capital Projects. (Info. from City Web site). Steilacom: Pop. Town of Steilacom 6,300. No budget info. on web site. PW Director is Mark Burlingame. PW Divisions include: Street, Water /Sewer, Electric, (3 division managers report to the PW Director) other services in these divisions include stormwater and engineering. Parks and Rec is a separate department. City contracts out garbage service. Est. staff at 20 for PW. The cities surveyed have very traditional public works type organizations. I did not see any surprises; traditional public works functions include Streets, Water, Wastewater, Stormwater, Gargage Collection (many cities contract landfill and collections) and Recycling, Engineering, and Utility Permits. Tacoma provides a very comprehensive level of service, primarily because they are the third largest city in the state. Few cities in the State have an electric utility and when they do, most have a separate Electric Utility Department from the traditional PW functions. The City of Port Angeles used to have a separate Light Department about 10+ years ago but merged with the PW Department for efficiency reasons. There was a considerable savings in eliminating a Director position and with the combined functions, the operating divisions and crews have much more cooperation and sharing of equipment /staffing to provide services. Parks /Recreation departments are normally separate departments in nearly all cities. Public Works Utilities Department Organizational History Note: Savings identified in this report are close estimates in some cases. 1986 1998 The Public Works Department Director was Jack Pittis. His organizational structure was about the same for many years, as follows: Public Works Director, with the following Divisions: Water, Wastewater (wastewater treatment plant), Solid Waste Collections and Landfill, Streets, and Engineering. These functions remained intact until 1999. Public Works had a Division Superintendent and an Assistant Supt. in most divisions during these years; each Division Supt. reported to the PW Director. About 1996 Pittis created a Deputy Director of Operations who was Ken Ridout, over most of the field operations. City Light was a separate Department in the City and was combined in the PW Department in 1998. Jack Pittis retired in July 1999 and Glenn Cutler replaced him as the Director. The structure was established for the Public Works Utilities Department: Director Glenn Cutler. There were initially 2 Deputy Directors: Operations (all the field divisions), and Engineering Services. The Division managers reported to the Deputy Director position. In 1999, the Light Director resigned from the City and the position was not replaced. Estimated salary savings about 80,000. During this year, two Conservation Analyst position were also eliminated as the Conservation funding was significantly reduced by Bonneville. Estimated savings $125,000. It was this year the Deputy Director of Power Resources was established. This organizational structure remained in place until February 2005, when the Parks and Recreation Director resigned employment. The P/Rec. Department was combined into the PW/Utilities Department under Mike Quinn, City Manager. The Pks /Rec. Director position was eliminated and a Deputy Director of Recreation was established, reporting to Glenn Cutler. There were 3 employees in this Deputy Director position due to resignations until filled by the current employee Richard Bonine. A Recreation Manager position was also eliminated in 2004 for a savings of about $58,000. So in Recreation the staffing became a Deputy Director, Recreation Coordinators, Pool Manager (eliminated in 2010 with the pool district), Senior Center Manager, (Fiero Marine Life Center was under Rec. but eliminated about 2 years ago) and Fine Arts Center Manager. In 2007, the Administrative Specialist (clerical support) position in Recreation retired and the position was filled from a clerical position at the Cemetery; that position was eliminated. Estimated savings $40,000. In mid- 2010, the Deputy Director of Recreation was reclassified and transferred under the City Manager. New title: Recreation Services Manager. Solid Waste Reorganization: In 2004 a full time Scale Attendent was eliminated, due to a retirement and not filling the position. Estimated savings, $35,000. In 2007, the Landfill function was contracted out to Waste Connections and eliminated 5 positions. (Expenses were absorbed into the contract operations which pays their employees less along with reduced health benefits)These position were absorbed into vacancies within the PW/U Department, due to planned attrition. A Utility Worker (garbage truck driver) was eliminated about 2007 -2008 with consolidation of some routes and every other week collection. Estimated savings about $47,000. Reorganization of Water and WasteWater Divisions /functions: In February 2010 the City took over the new Water Treatment Plant. WW collections system maintenance was transferred from the Water Division to the Wastewater Division; efficiency transfer to consolidate wastewater activities into the same Division. Additionally the Water Supervisor position was reclassified to Source Control Specialist and transferred to the WW Treatment plant to take on new testing and control requirements. This saved the City money by not creating a new position for the Source Control Specialist position. The water treatment plant is being operated with approximately 2 -3 less FTE's than anticipated during negotiations with the NPS. The Department also took on the Storm Water Utility in 2010. An engineer position was assigned this task and two positions were added in the Street Division for storm water maintenance. The increase in FTE's was directly in response to additional requirements of the NPDES Phase II Stormwater Permit. Clerical Reorganization: In 2005, primarily due to the consolidation of the Parks Recreation Department, a new classification series called Administrative Specialist trainee, Administrative Specialist I and II was established. The corresponding AFSCME salary range for each was set respectively at A7, A9, and Al2. Two Administrative Assistants were downgraded from range and step M15 -13 to Al2 -7 Administrative Specialists II with 8% longevity. The City realized an immediate yearly savings of $1700 each, and by 2010, was saving more than $5,000 annually for each of these positions, plus another $1,200 in deferred compensation payments. A $30,000 net savings was realized in 2011 with the clerical consolidation that coincided with Cate Rinehart's retirement. The clerical staff was reorganized such that her vacant position was filled with a permanent part-time Administrative Specialist I (approximately 18 hours per week) and a temporary 10 hour per week student intern. Prepared by HR. 3/21/12 Public Works Utilities Department Organizational History Note: Savings identified in this report are close estimates in some cases 1986 1998 The Public Works Department Director was Jack Pittis. His organizational structure was about the same for many years, as follows: Public Works Director, with the following Divisions: Water, Wastewater (wastewater treatment plant), Solid Waste Collections and Landfill, Streets, and Engineering These functions remained intact until 1999. Public Works had a Division Superintendent and an Assistant Supt. in most divisions during these years; each Division Supt. reported to the PW Director. About 1996 Pittis created a Deputy Director of Operations who was Ken Ridout, over most of the field operations. City Light was a separate Department in the City and was combined in the PW Department in 1998. Jack Pittis retired in July 1999 and Glenn Cutler replaced him as the Director. The structure was established for the Public Works Utilities Department: Director Glenn Cutler. There were initially 2 Deputy Directors: Operations (all the field divisions), and Engineering Services. The Division managers reported to the Deputy Director position. In 1999, the Light Director resigned from the City and the position was not replaced. Estimated salary savings about 80,000. During this year, two Conservation Analyst position were also eliminated as the Conservation funding was significantly reduced by Bonneville. Estimated savings $125,000. It was this year the Deputy Director of Power Resources was established. This organizational structure remained in place until February 2005, when the Parks and Recreation Director resigned employment. The P/Rec. Department was combined into the PW/Utilities Department under Mike Quinn, City Manager. The Pks /Rec. Director position was eliminated and a Deputy Director of Recreation was established, reporting to Glenn Cutler. There were 3 employees in this Deputy Director position due to resignations until filled by the current employee Richard Bonine. A Recreation Manager position was also eliminated in 2004 for a savings of about $58,000. So in Recreation the staffing became a Deputy Director, Recreation Coordinators, Pool Manager (eliminated in 2010 with the pool district), Senior Center Manager, (Fiero Marine Life Center was under Rec. but eliminated about 2 years ago) and Fine Arts Center Manager. In 2007, the Administrative Specialist (clerical support) position in Recreation retired and the position was filled from a clerical position at the Cemetery; that position was eliminated. Estimated savings $40,000. In mid- 2010, the Deputy Director of Recreation was reclassified and transferred under the City Manager. New title: Recreation Services Manager. Solid Waste Reorganization: In 2004 a full time Scale Attendent was eliminated, due to a retirement and not filling the position. Estimated savings, $35,000. In 2007, the Landfill function was contracted out to Waste Connections and eliminated 5 positions. (Expenses were absorbed into the contract operations which pays their employees less along with reduced health beneftts)These position were absorbed into vacancies within the PW /U Department, due to planned attrition. A Utility Worker (garbage truck driver) was eliminated about 2007 -2008 with consolidation of some routes and every other week collection. Estimated savings about $47,000. Reorganization of Water and WasteWater Divisions /functions: In February 2010 the City took over the new Water Treatment Plant. WW collections system maintenance was transferred from the Water Division to the Wastewater Division; efficiency transfer to consolidate wastewater activities into the same Division. Additionally the Water Supervisor position was reclassified to Source Control Specialist and transferred to the WW Treatment plant to take on new testing and control requirements. This saved the City money by not creating a new position for the Source Control Specialist position. The water treatment plant is being operated with approximately 2 -3 less FTE's than anticipated during negotiations with the NPS. The Department also took on the Storm Water Utility in 2010. An engineer position was assigned this task and two positions were added in the Street Division for storm water maintenance. The increase in FTE's was directly in response to additional requirements of the NPDES Phase II Stormwater Permit. Clerical Reorganization: In 2005, primarily due to the consolidation of the Parks Recreation Department, a new classification series called Administrative Specialist trainee, Administrative Specialist I and II was established. The corresponding AFSCME salary range for each was set respectively at A7, A9, and Al2. Two Administrative Assistants were downgraded from range and step M15 -13 to Al2 -7 Administrative Specialists II with 8% longevity. The City realized an immediate yearly savings of $1700 each, and by 2010, was saving more than $5,000 annually for each of these positions, plus another $1,200 in deferred compensation payments. A $30,000. net savings was realized in 2011 with the clerical consolidation that coincided with Cate Rinehart's retirement. The clerical staff was reorganized such that her vacant position was filled with a permanent part-time Administrative Specialist I (approximately 18 hours per week) and a temporary 10 hour per week student intern. Prepared by HR. 3/21/12 Public Works Department Organizational Structures. 3 /1/12 1 was asked to survey the cities below for the organizational structure of public works functions. City of Richland City of Cheney City of Centralia City of Ellensburg. City of Milton City of Blaine City of Steilacom City of Tacoma Tacoma: Population 204,200. Obtained data from web site, city did not respond Staffing in PW is at least several hundred employees. PW Department functions: Wastewater, Solid Waste and Recycling, Streets, Stormwater, Fleet Maintenance, Engineering, Facility Maintenance, Community Gardens, Abandon Autos, Permits, and Capital projects. Note: They have a separate Public Utilities Department in Tacoma: includes Electric Utility, Water telecommunications, and Rail Freight Services. Richland: Population 48,580. 106 total staffing in PW Dept. Budget: $36,785,774 PW functions: Water, Wastewater, Stormwater, Solid Waste, Streets, Engineering (transportation and CIP divisions). Cheney: Population 10,680. 23 personnel. Budget: 4.8 million. PW functions: street, water, wastewater collection, ww treatment plant, solid waste collections and a recycling center. Ellensburg: Population 17,326. 40 personnel. Budget: not submitted. PW functions. Engineering, Stormwater, Water, Sewer, Street, Equipment Services. Centralia: Population 15,570. Staffing and budget: not submitted. The City referred me to their web site, which is very difficult to navigate. I could not find the staffing and the budget is broke into dozens of funds. PW functions: Water, Street, Waste Water, Storm water, Engineering. Centralia has an electric utility in the City Light Department, separate from public works. Park/Rec. is also a separate department. Milton: Population 6,540. 20 personnel in PW Dept. Budget, 12 million PW Functions: Electric, Water, Stormwater, Fleet Maintenance, Engineering Blaine: Population 4,790. Est. personnel 30. Est. PW budget 7.5 million PW Functions: Water, Wastewater, Stormwater, Electric Utility, Street, Engineering, and Capital Projects (Info. from City Web site). Steilacom: Pop. Town of Steilacom 6,300. No budget info. on web site. PW Director is Mark Burlingame. PW Divisions include: Street, Water /Sewer, Electric, (3 division managers report to the PW Director) other services in these divisions include stormwater and engineering. Parks and Rec is a separate department. City contracts out garbage service. Est. staff at 20 foi PW The cities surveyed have very traditional public works type organizations. I did not see any surprises; traditional public works functions include Streets, Water, Wastewater, Stormwater, Gargage Collection (many cities contract landfill and collections) and Recycling, Engineering, and Utility Permits. Tacoma provides a very comprehensive level of service, primarily because they are the third largest city in the state. Few cities in the State have an electric utility and when they do, most have a separate Electric Utility Department from the traditional PW functions. The City of Port Angeles used to have a separate Light Department about 10+ years ago but merged with the PW Department for efficiency reasons. There was a considerable savings in eliminating a Director position and with the combined functions, the operating divisions and crews have much more cooperation and sharing of equipment /staffing to provide services. Parks /Recreation departments are normally separate departments in nearly all cities. Recruitment Firm Advantages: Professional Recruiting firms have established nation -wide data bases for interested candidates and have a 2 year guarantee if the candidate does not work out. Recruitment firms, such as Waldron and Prothman have respected, well known reputations in the Northwest that attract candidates who are seeking jobs They build relationships with people who are seeking employment and only send you the best. Many candidates only seek employment through Professional Recruiters. Prof. Recruiters expedite the process since they have a number of staff ready to go. Estimate recruitment /hiring process about 60 days with recruitment firms. Cost: $15,000, plus expenses (Prothman). Estimate $3 -5,000 for recruitment ads, candidates travel expenses, and other related expenses. Note: Prothman is completing the Finance Director recruitment for the City of Issaquah and has a Finance Director candidate pool. Tukwila recently conducted their own recruitment for Finance Director and hired the internal candidate, which illustrates not a strong showing for external candidates. Problems with Internal Recruitment by the City: The city will not be an attractive employer for may Finance Director candidates for the following reasons: recent termination of the Finance Director; Audit Findings; negative newspaper articles. It will be difficult to attract good candidates. The best candidates may not even call -that is why we need a professional recruiter who seeks out the best people and have them in an established data base If there is any time where the City needs outside assistance, this is it. Both Tom Waldron and Greg Prothman made this statement to me because of the telinination of the Finance Director, which has been such a negative public process The City does not have the ability to adequately conduct a nation -wide recruitment. We will place job ads in professional publications, web sites, mailings, etc. but do not have a data base to make personal contacts. We rely upon people calling us. Most people seeking jobs at the Department Director level do not seek out generic ads, unless they are unemployed. They work through professional recruiters. H.R. will have a difficult time to manage this recruitment in a timely manner with the current work load: 3 labor contracts open; the upcoming work necessary with the Ad -hoc sustainability committee; current recruitments (police officer, 911 dispatcher, Civil Engineer, Senior Accountant, and the day to day activity) and Wellness Program activities. Conducting a Director recruitment is very time intensive. City's History for using Professional Recruiting Firms: City Manager; 3 times (Pomeranz, Ibarra, Quinn, Myers) Police Chief Public Works Utilities Director