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Staff Reportpow x of cos �spios COUNCIL AGENDA REPORT DATE: OCTOBER 1, 2015 MEETING DATE: 10/06/15 ITEM NO: i C) TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: WITHIN THE EXISTING ADOPTED FY 2015/16 OPERATING BUDGET, AUTHORIZE THE TOWN MANAGER TO: A. RESTORE 1.0 FTE COMMUNITY DEVELOPMENT DIRECTOR FROM 0.5 FTE B. RESTORE 1.0 FTE ASSISTANT TOWN MANAGER FROM 0.5 FTE C. REALLOCATE 1.0 FTE TOWN LIBRARIAN TO REINSTATE 1.0 FTE LIBRARY DIRECTOR D. REALLOCATE 1.0 FTE TOWN LIBRARIAN, 0.75 FTE LIBRARIAN AND 2,964 SENIOR PAGE TEMPORARY HOURS TO CREATE TWO 1.0 FTE PRINCIPAL LIBRARIANS, 1.0 FTE SENIOR PAGE, AND 516 TEMPORARY EMPLOYEE HOURS E. RECLASSIFY 1.0 FTE FINANCE ADMINISTRATIVE TECHNICIAN TO 1.0 FTE ADMINISTRATIVE ANALYST F. ELIMINATE VACANT 1.0 FTE COMMUNICATION COORDINATOR POSITION G. INCREASE 0.625 FTE CUSTOMER SERVICE SPECIALIST POSITION WITHIN THE TOWN MANAGER'S OFFICE TO 0.75 FTE H. INCREASE POLICE DEPARTMENT'S LEAD COMMUNICATIONS DISPATCHER POSITION SALARY BY 5% ($10,023) I. REALIGN SALARIES FOR THE COMMUNITY DEVELOPMENT DIRECTOR, ASSISTANT TOWN MANAGER, AND PARKS AND PUBLIC WORKS DIRECTOR J. ADJUST ASSOCIATED CLASSIFICATIONS AND SALARY TABLES ACCORDINGLY N:\MWManagement Stat7VCallaway \TC Report Position Realloeations Oct 6 2015.doc R t Port1110 Hum 'n Resources Director Attorney PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: WITHIN EXISTING ADOPTED FY 2015/16 OPERATING BUDGET, AUTHORIZE THE TOWN MANAGER TO RESTORE, REALLOCATE, RECLASSIFY, AND REALIGN POSITIONS AND SALARIES October 1, 2015 RECOMMENDATION: Within the existing adopted Fiscal Year (FY) 2015/16 Operating Budget, Authorize the Town Manager to: 1. Restore 1.0 FTE Community Development Director from 0.5 FTE 2. Restore 1.0 FTE Assistant Town Manager from 0.5 FTE 3. Reallocate 1.0 Town Librarian position to reinstate 1.0 FTE Library Director 4. Reallocate 1.0 FTE Town Librarian position, 0.75 FTE Librarian position and 2,964 Senior Page temporary hours to create two 1.0 FTE Principal Librarians, 1.0 FTE Senior Page, and 516 temporary employee hours 5. Reclassify 1.0 FTE Finance Administrative Technician to 1.0 FTE Administrative Analyst 6. Eliminate vacant 1.0 FTE Communication Coordinator position 7. Increase 0.625 FTE Customer Service Specialist position within the Town Manager's Office to 0.75 FTE 8. Increase Police Department's Lead Communications Dispatcher position salary by 5% ($10,023) 9. Realign salaries for the Community Development Director, Assistant Town Manager, and Parks and Public Works Director 10. Adjust associated classifications and salary tables accordingly EXECUTIVE SUMMARY: After an assessment of a portion of the Town organization and to document actions taken by the Interim Town Manager, the Town Manager is bringing forward a package of personnel items to restore positions and align certain salaries with responsibilities, reclassify and reallocate positions to reflect job duties, redeploy a position, and make other modifications. While together these items may seem overwhelming, they are being presented as a comprehensive proposal rather than on a piecemeal basis to provide the Council with a complete depiction of the recommended adjustments. The report explains the reasons for each of the recommendations and the budget implications. In summary, these adjustments are needed to structure the Town organization to deliver effective and efficient services, reflect job duties, attract and retain high quality employees, correct an error in an hourly rate, and take offsetting actions to neutralize the costs to the Town. All of these items can be approved within the existing adopted FY 2015/16 Operating Budget through salary savings and expenditure offsets with no additional budget actions needed at this time. Funding to support the ongoing costs of these actions will be included in future budgets. BACKGROUND: During the economic recession as vacancies occurred within the Town, several organizational restructures occurred. One restructure included the defunding of the Library Director and instating a co- management structure of two Town Librarians. In 2015, the Interim Town Manager did an PAGE MAYOR AND TOWN COUNCIL SUBJECT: WITHIN EXISTING ADOPTED FY 2015/16 OPERATING BUDGET, AUTHORIZE THE TOWN MANAGER TO RESTORE, REALLOCATE, RECLASSIFY, AND REALIGN POSITIONS AND SALARIES October 1, 2015 BACKGROUND cont'd): assessment of the Library Department and appointed a Library Director with the understanding that the Council would take the appropriate action at a later time to reinstate the Library Director position. In 2014, the Assistant Town Manager position was consolidated with the Community Development Director position to create a single Assistant Town Manager /Community Development Director (ATM /CDD) position. As indicated in the adopted Operating Budget for FY 2015 /16, the consolidated Assistant Town Manager /Community Development Director (ATM /CDD) was to be reevaluated during the fiscal year and assessed for sustainability. In accordance with the Town's Municipal Code, the Town Council approved the Operating Budget for FY 2015/16 effective July 1, 2015. The adopted Operating Budget includes full and part-time positions allocated by department, expressed as full -time equivalent positions (FTE's). Since that time, staff turnover, re- organizations and other operational changes have occurred. Taken together, these circumstances have resulted in the recommended reinstatement, reclassification, and reallocation of certain positions. The recommended actions are intended to stabilize the Town's management structure and delivery of services by restoring three highly critical management positions, align Director -level salaries to reflect increased responsibilities and to provide greater support for the Library's 85% increase in patronage and growing service demands. In addition, adjustments to line staff positions within the Finance and Police Departments, and Town Manager's Office are being recommended at this time. Position reductions and reallocations have been identified to minimize the cost impact of the proposed position changes. DISCUSSION As a highly responsive, customer- service driven organization, the Town relies on a quality workforce to consistently provide outstanding services to the residents, businesses and visitors of the Town. It is therefore imperative for the Town to maintain adequate staffing levels and to provide compensation to attract and retain quality employees. The actions recommended in this staff report are intended to improve recruitment and retention, reflect increased responsibilities, and adjust the position allocations for more effective service delivery. Within the adopted FY 2015/16 Operating Budget, the recommended actions are as follows: 1. Restore three Director -level positions that were reduced in the prior years' budgets. 2. Restructure the Library staff for better oversight and delivery of services. 3. Adjust a classification in the Finance Department to reflect increased duties. 4. Increase part-time hours and correct an hourly rate: a. Increase hours assigned to a Customer Service Specialist position from 25 hours a week (0.625 FTE) to 30 hours a week (0.75 FTE) and PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: WITHIN EXISTING ADOPTED FY 2015/16 OPERATING BUDGET, AUTHORIZE THE TOWN MANAGER TO RESTORE, REALLOCATE, RECLASSIFY, AND REALIGN POSITIONS AND SALARIES October 1, 2015 DISCUSSION (cont'd): b. Correct the hourly rate of the Police Communications Dispatcher Lead from 5% above Dispatcher to 10% (change of $2.00 per hour in base salary.) 5. Eliminate 1.0 FTE Communication Coordinator position in the Town Manager's Office to provide funding support for the changes. 6. Align specified Director -level salaries to reflect responsibilities. The recommended actions are described in more detail below: 1. Restore the Positions of Assistant Town Manager and Community Development Director from 0.5 FTE to 1.0 FTE and Reallocate 1.0 FTE Town Librarian to Reinstate 1.0 FTE Library Director As a temporary budget- savings measures in the prior budget, the Assistant Town Manager (ATM) and Community Development Director (CDD) positions were reduced to 0.5 FTE and consolidated into a single position (1.0 FTE). While the consolidated position provided certain benefits to the delivery of Town services, it is not sustainable as both positions are highly critical with increasing responsibilities and workload demands. In addition, the consolidation resulted in a focus on urgent high priority items, without much capacity to implement process improvements and other innovations. The restoration of these positions will strengthen oversight and accountability, and will improve stability and service delivery: The Community Development Director is a highly visible, extremely responsible position which oversees 19 positions and a budget of $4.1 M to deliver services related to advanced planning, housing, code compliance, and development activities, including permits, applications, plan review, and inspections. The Community Development Department administers several committees and the Planning Commission. The Assistant Town Manager serves as the Acting Town Manager in the Town Manager's absence, provides critical services related to operations, internal and external communications, assists the Town Manager in supporting public access to government, transparency in public records, and assists in the development of public policy and in meeting fiduciary responsibilities, including oversight of the Town -wide budget. Likewise, as part of prior year budget reduction measures, the Library Director position was eliminated and the Library was restructured to operate under a co- management structure with two Town Librarians. Since adoption of the FY 2015/16 budget, staffing transitions have occurred and the co- management restructure reassessed. Under Les White, Interim Town Manager, an assessment revealed that a more traditional management structure would be more effective in strengthening oversight and accountability within the Department. Interim Town Manager White appointed a PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: WITHIN EXISTING ADOPTED FY 2015/16 OPERATING BUDGET, AUTHORIZE THE TOWN MANAGER TO RESTORE, REALLOCATE, RECLASSIFY, AND REALIGN POSITIONS AND SALARIES October 1, 2015 DISCUSSION (cont'd): Library Director with the understanding that the Council would take the appropriate action at a later time to reinstate the Library Director position. The action proposed in this report would reallocate an existing Town Librarian position to reinstate the Library Director position. • The Library Director oversees a seven day a week operation, with an annual door count of 370,000 people and annual circulation of 605,000 items. The Library Director maintains a staff of 10.8 full -time and 4.8 FTE in supplemental staff, with responsibilities that include and are not limited to supporting a complex computer network, circulation systems, and year - round quality programs for the community. 2. Restructure Library Staffing for Better Oversight and Delivery of Services With the recommendation to restore the Library Director position, the management structure of the Department needs to be adjusted to ensure proper oversight, accountability, and delivery of services. Specifically, the proposed recommendation would reallocate a vacant 1.0 FTE Town Librarian position, a 0.75 FTE Librarian position, and 2,964 temporary Senior Page hours to establish two 1.0 FTE Principal Librarians, 1.0 FTE Senior Library Page, and 516 hours of temporary employee hours. This structure is consistent with other Libraries in similar communities. The Senior Page position would provide needed support for handling inventory, and re- assigned temporary employee hours (i.e., extra help) would better meet service needs. 3. Reclassify 1.0 FTE Finance Administrative Technician to 1.0 FTE Administrative Analy During calendar year 2015, an existing Administrative Technician position has been assigned higher level and more responsible finance- related work on an ongoing basis. Specifically, the assigned work involves analyzing the Town's Operating and Capital Budgets, preparing annual financial reports, assisting with the Town's monthly investments accounting, and tracking the Town's capital assets and infrastructure. In addition, with the appointment of the Interim Assistant Town Manager, the vacant Finance Manager position created greater responsibilities for this position. As a result of this ongoing increase in higher level work, the Administrative Technician position is included as a reallocation to the next higher classification of Administrative Analyst. This reallocation aligns the job class more closely to the work as assigned. The change in classification results in a net increase of $2,455 for FY 2015/16. 4. Increase Part-Time Hours and Correct Hourly Rate a. Reallocate Customer Service Specialist/Office Assistant from 0.625 FTE to 0.75 FTE (25 hours per week to 30 hours per week) PAGE 6 MAYOR AND TOWN COUNCIL SUBJECT: WITHIN EXISTING ADOPTED FY 2015/16 OPERATING BUDGET, AUTHORIZE THE TOWN MANAGER TO RESTORE, REALLOCATE, RECLASSIFY, AND REALIGN POSITIONS AND SALARIES October 1, 2015 DISCUSSION (cont'd): After the FY 2015/16 Operating Budget was adopted, staff identified that the Customer Service Specialist /Office Assistant position in the Town Manager's Office was incorrectly documented at a lower number of hours per week than the position had been intended and advertised during a recent recruitment. The position, which is a part-time position and previously allocated as a 0.625 FTE (25 hours per week), provides coverage at the main reception counter in the Town Manager's Office. To provide adequate coverage at the public counter and to cover the associated duties, a schedule of 0.75 FTE (30 hours per week) better meets the needs of the Office. The authorized increase in hours is cost neutral as the incumbent is not at the top of the range, thus the actual cost in the current year is less than the budgeted amount. b. Correct the Hourly Rate of the Communications Dispatcher Lead from 5% to 10% above Communications Dispatcher The budgeted salary for the Communications Dispatcher Lead position in the adopted FY 2015/16 Operating Budget requires correction. The Lead position was created with a 5% salary differential above the Communications Dispatcher. The 10% differential was the amount benchmarked with outside agencies. The Town discussed the 10% differential with the union and this amount was agreed to at the time the pay class was established. 5. Eliminate Vacant 1.0 FTE Communication Coordinator Position A Communications Coordinator /Analyst position in the Town Manager's Office was funded in the prior budget and has been held as a vacancy. The position was created to provide centralized support for the Town's website and other electronic and written communications. As an alternative to filling the position, the duties will continue to be incorporated throughout various positions in the Town Manager's Office. As a result, 1.0 FTE ($151,907 in salary and overhead) is proposed to be eliminated and the funding is recommended to be redeployed to fund the recommended reinstatement and reclassifications. Financial Implications ofltems I through 5 The recommended restoration of the three Director positions, coupled with the reclassification and reallocations of staff in the Library, Finance, and Police Departments and Town Manager's Office is estimated to increase current FY 2015/16 Operating Expenditures by approximately $87,000. This takes into consideration current vacancies and estimates when positions could be recruited and filled. These costs can be absorbed within the existing operating budget with no budget adjustments. Restoration of these positions and reclassification of Town staff will also have an on -going cost impact in future years. It is estimated that the actions previously described would have an estimated PAGE 7 MAYOR AND TOWN COUNCIL SUBJECT: WITHIN EXISTING ADOPTED FY 2015/16 OPERATING BUDGET, AUTHORIZE THE TOWN MANAGER TO RESTORE, REALLOCATE, RECLASSIFY, AND REALIGN POSITIONS AND SALARIES October 1, 2015 DISCUSSION (cont'd): future annual cost impact of approximately $230,000. These future costs would be incorporated into proposed future year budgets for Council consideration and approval. A summary of proposed changes is outlined in Attachment 1. 6. Realien Salaries for the Community Development Director Assistant Town Manager, and Parks and Public Works Director As illustrated in the table below, a review of local salary data indicates that the two vacant positions of Community Development Department (CDD) Director and the Assistant Town Manager (ATM) are under market when compared to similar agencies in this region. The Town's Director Salary band for Assistant Town Manager, Community Development Director, and Parks and Public Works Director has a maximum salary of $166,852. The average salary for these Directors among the cities surveyed ranged between $194,000 for the Assistant Town manager to $179,000 for the Community Development Director. Survey of Santa Clara County Cities Director Salaries Source: Bay Area Employee Relations Service To reflect the job responsibilities as described earlier in this report, the salary for the CDD Director and ATM should be aligned to the existing Police Chief's salary band, from $166,852 to $179,993 Similarly, the Parks and Public Works (PPW) Director position is under market when compared to other local agencies. Given the scope of critical responsibilities and the workload of the Parks and Public Works Director position, particularly as it relates to the oversight of infrastructure, traffic, streets, parks, and Capital Improvement Projects, the position is recommended to be realigned from $166,852 to the same salary band of $179,993. The Parks and Public Works Director oversees 33 FTE's in six divisions, a General Fund budget of $6.3M, and the Capital Improvement program. Assistant Town /City Manager Public Works CDD Milpitas $219,900 $185,000 $197,950 Gilroy n/a $184,968 $184,968 Cupertino $209,292 $190,272 $177,132 Morgan Hill $199,212 $189,732 $168,528 Campbell n/a $185,994 $168,002 Los Altos $182,700 $182,700 $182,700 Saratoga $189,218 $189,218 $189,218 Los Gatos $166,852 $166,852 $166,852 Average $194,529 $184,342 $179,419 Source: Bay Area Employee Relations Service To reflect the job responsibilities as described earlier in this report, the salary for the CDD Director and ATM should be aligned to the existing Police Chief's salary band, from $166,852 to $179,993 Similarly, the Parks and Public Works (PPW) Director position is under market when compared to other local agencies. Given the scope of critical responsibilities and the workload of the Parks and Public Works Director position, particularly as it relates to the oversight of infrastructure, traffic, streets, parks, and Capital Improvement Projects, the position is recommended to be realigned from $166,852 to the same salary band of $179,993. The Parks and Public Works Director oversees 33 FTE's in six divisions, a General Fund budget of $6.3M, and the Capital Improvement program. PAGE MAYOR AND TOWN COUNCIL SUBJECT: WITHIN EXISTING ADOPTED FY 2015/16 OPERATING BUDGET, AUTHORIZE THE TOWN MANAGER TO RESTORE, REALLOCATE, RECLASSIFY, AND REALIGN POSITIONS AND SALARIES October 1, 2015 DISCUSSION (cont'd): The alignment of the CDD Director, Assistant Town Manager and PPW Director represents a 7.8% increase over the current top of the salary range and would be in alignment with the current pay band for the Chief of Police. The recommended salary realignment for the three Director positions carries a rnaximurn annual cost of $13,135 per position for a total maximum, annual cost of $39,406. With authority of Council to reinstate the full -time CDD position, an immediate recruitment would begin. Hiring of a CDD Director does not mean that the position would begin employment at the top step of this new salary band. It is likely that the full cost implication of this realignment would not be realized during the current fiscal year. The ATM position is currently being filled on an interim basis with a staff person being reassigned from the Finance Department using existing authorized funds. With approval from Council to reinstate the 1.0 FTE ATM position, it is anticipated that the Town would fill this position on a permanent basis in the next few months. Again, it is likely that that this position would not be filled at the top of the recommended salary band and the full cost implications of the recommended realignment would not be realized until future years. Finally, the recommended realignment for the PPW Director would afford the Town Manager the ability to consider a salary increase of some amount to the current Director during the annual performance evaluation process should the Town Manager detennine that it is warranted at that time. This would be based on employee performance throughout the year, may not result in the maximum salary, and would not be effective immediately. Therefore, the full cost implication of this recommendation would not be realized during the current fiscal year. With Council approval to realign the salary bands for these three Director positions, any cost implications that exist during the current fiscal year would be absorbed within the current budget with salary savings and other expenditure offsets. Future cost implications would be incorporated into the proposed future year budgets for Council approval. CONCLUSION AND FISCAL IMPLICATIONS: A package of adjustments are needed to structure the Town organization to deliver effective and efficient services, reflect job duties, attract and retain high quality employees, correct an error in an hourly rate, and take offsetting actions to neutralize the costs to the Town. The estimated FY 2015/16 net impact of $87,000 to S 110,000 for the reinstatement of the Director positions and Town - wide reorganizations and reclassifications will be absorbed in the existing FY 2015/16 Operating Budget through salary savings and expenditure offsets with no additional budget action needed at this time. Funding to support the estimated future ongoing costs of $232,000 to $275,000 will be PAGE 9 MAYOR AND TOWN COUNCIL SUBJECT: WITHIN EXISTING ADOPTED FY 2015/16 OPERATING BUDGET, AUTHORIZE THE TOWN MANAGER TO RESTORE, REALLOCATE, RECLASSIFY, AND REALIGN POSITIONS AND SALARIES October 1, 2015 CONCLUSION AND FISCAL IMPLICATIONS cont'd): included in future budgets for Council consideration. The Town's Salary Schedule will be adjusted accordingly to reflect Town Council action. Attachment: 1. Summary of Recommended Position Restorations, Reallocations, and Reclassifications pN Y +�1 Y�H L °L�VJ C' yy * l� N V V M N Oi r N O O N 1p t- v rti at O N .yi O69 69 EA 69 69 69 69 69 : fH 69 fA EA 69 Y3. f6 : xet p .Q :: iri 69 N3 69 :: E.9 V3 69 69 69 s9 Vi Vi V3 : N3 69 rl b O : jy fTy' s9 V3 N3 69 H3 69 59 ' EH 69 6'i.:.� O O S U f0 T y OO 7 OOiL CL '. : '. W O O N � ter N ,- ��❑! Q! d O C U A N h D O O 'R F p W O 0 id tCti6 tCtl T .�. -Fi 2 � a all a" 6A pN Y +�1 Y�H L °L�VJ C'