ADMINISTRATIVE REPORT

TO:

Standing Committee on City Services and Budgets

FROM:

General Manager of Engineering Services in consultation with the General Manager of Human Resources

SUBJECT:

Sewer Operations Branch Reorganization

 

RECOMMENDATION

A. THAT Council approve the changes to the management structure of the Sewer Operations branch, at no net cost to the budget, as outlined below;

POLICY

SUMMARY

The Sewer Operations branch is in the process of improving the service it delivers to the City by optimizing performance of our work crews and hired equipment through the use of new technologies, processes and methods. This requires a higher level of ability in our front line managers than we presently have. To provide this ability without adding unnecessary layers of management to the organization, this report recommends that a number of lower level positions be eliminated and replaced with a fewer number of more senior positions at no net cost to the City. It is expected that these changes will allow us to realize substantial improvements in service delivery with significant ongoing savings.

PURPOSE

The purpose of this report is to obtain Council approval to restructure the Sewer Operations Branch. The proposed restructuring will necessitate the elimination, creation and classification review of certain positions in the branch.

DISCUSSION

The Sewer Operations branch constructs, operates and maintains the City's sewer infrastructure. The branch is charged with:

· safeguarding public health and minimizing the impact on the environment by collecting domestic, commercial and industrial liquid wastes for disposal
· minimizing property damage, public nuisance and impact on the environment by collecting and controlling precipitation runoff for disposal
· maintaining and rebuilding the infrastructure in a timely manner so that its operating efficiency is maximized, service levels are maintained and the City's interests are protected.

The Sewer Operations branch has performed well for decades but generally has done its work in an environment where work methods were fairly stable and expectations did not change rapidly over time. The limited benchmarking that has been done shows that the branch is competitive with private companies.

We are now experiencing a time of change however, with increasing performance expectations. A number of emerging priorities need to be addressed. For example, safety is a very important priority. To improve safety will mean fundamental changes in work methods such as the way excavations are shored and the type of equipment used on construction sites.

In addition to addressing safety concerns, opportunities exist to improve performance through methods such as using native material for backfilling, grinding pavement instead of saw cutting, using a transfer operation for spoil material, improving street repair sequencing and so on.

We also need to put better systems in place to optimize performance. For example, there is a need to increase the efficiency of our hired trucks which represent 30% of our construction costs.

Opportunities also exist to improve customer service by better coordination of joint sewer, water and streets projects and improved on-site communication with businesses and residents.

All these priorities require a high level of proactive, innovative management in the field. Our current classification of front line supervisor in Sewer Operations does not adequately deal with our emerging needs. The front line job has changed to require a high level of project management, change management, problem solving, analysis, benchmarking, job planning, labour relations and customer relations.

In order to provide the above ability without adding layers of management to the organization, this report proposes to eliminate a number of lower level positions and replace them with a fewer number of more senior positions at no net cost. We believe that the following changes will allow us to realize substantial improvements in service delivery with significant ongoing savings.

PRESENT STRUCTURE

Currently the front line supervision in Sewer Operations is provided by nine Foreman positions. These are not exempt positions, they are in the Foremen's Association. With the existing structure, the superintendents cannot spend an adequate amount of time in the field providing the level of supervision described above. In addition, the operation is broken down into too many separate work groups which results in competition for resources between individual crews.

PROPOSED STRUCTURE

The proposed structure of the branch groups the work crews more effectively under seven superintendent I's and provides a more senior level of front line management. At the same time it provides the branch with an appropriate level of management to respond and adapt quickly to labour relations issues, changing priorities and technologies. The proposed Superintendent positions are excluded. Consequently, the proposed structure provides an improved ability to address performance and disciplinary issues in the field.

FINANCIAL IMPLICATIONS

The proposed restructuring is cost neutral. Improvements in the management structure are achieved without an increase in management costs. In the medium term, the structure will facilitate improvements in our service delivery which will likely provide long term savings.

PERSONNEL IMPLICATIONS

The restructuring of the Sewer Operations branch will result in nine Foreman positions being eliminated. CUPE 1004 will gain two new positions and lose one with three existing positions being subject to a classification review. One CUPE 15 and seven Superintendent positions would be added to the branch.

The Foremen's Association, CUPE 15 and CUPE 1004 have all been informed of the proposed changes and a copy of this report has been provided to them. There have been on-going discussions with the Foremen's Association regarding the effect this restructuring will have on their members and how they will be addressed.

A number of options have been investigated, and will be utilized to mitigate the impact on existing Foremen. These include;

- Three currently vacant Foreman positions have not been filled on a permanent basis in anticipation of this restructuring.

- The existing Foremen will be considered first for the newly created exempt Superintendent positions and will be awarded these positions if they are determined to be qualified.

- Foremen can be transferred to vacant positions in other branches of the Engineering Department.

- The General Manager of Human Resources is exploring options for an early retirement incentive program which will be reported separately.

- The restructuring will be implemented in a phased manner so that any foremen who cannot take advantage of any of the measures above will have their rate of pay, and their position in the Foreman's Association protected for up to three years. During that time period they will have the opportunity to improve their qualifications in order to be eligible for a Superintendent's position, move to another Foreman's position within the Department, or possibly become eligible for early retirement. If none ofthese occur within the three year period they would be re-assigned to one of the proposed Working Foreman positions as a Foreman I.

These measures will minimize the impacts on existing Foremen and avoid the need for any layoffs to achieve this restructuring.

CONCLUSION

Changes to the management structure of the Sewer Operations branch in Engineering are required to address both current and future needs and issues. The management changes recommended will result in no increased costs but will substantially improve branch efficiencies in a number of areas.

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