ADMINISTRATIVE REPORT
Date: April 9, 2001
Author/Local: K Ramsay/323-7808
RTS No. 01975
CC File No. 1375
CS&B: May 17, 2001
TO: |
City Services and Budgets Committee |
FROM: |
General Manager of Engineering Services in consultation with the General Manager of Human Resources |
SUBJECT: |
Waterworks Operations Branch Reorganization |
RECOMMENDATION
A. THAT Council approve the changes to the management structure of the Waterworks Operations branch, at a reduced net cost to the budget of $164,000 per year, as outlined below;
i. the creation of six Superintendent I positions,
ii. the creation of two Working Foreman positions,
iii. The creation of one Working Foreman - Trades Position,
iv. the elimination of nine Foreman positions,
vi. the elimination of two Sub-Foreman II Construction positions,
vii. the elimination of one Sub Foreman Trades position.
B. THAT the new positions created in the foregoing be subject to a classification review by the General Manager of Human Resources.
COUNCIL POLICY
Establishment of new positions requires Council approval.
SUMMARY
The Waterworks Operations Branch is in the process of improving the service it delivers to the City by optimizing the 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 at present. 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 a reduced 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 Waterworks Operations Branch. The proposed restructuring will necessitate the elimination, creation and classification review of certain positions in the branch.
DISCUSSION
The Waterworks Operations Branch maintains the water system in good working order, constructs new services and mains, replaces worn out infrastructure, repairs failures of the system, and responds to emergencies such as fires to manipulate the water system as required. The branch is charged with:
· providing quality potable water throughout the City
· providing adequate quantities of water for fire protection purposes
· maintaining and rebuilding the infrastructure in a timely manner so that operating efficiency is maximized, service levels are maintained and the City's interests are protected.
The Waterworks Operations Branch has performed well for decades but generally has done work in an environment where methods were relatively stable and expectations did not change rapidly over time. Ongoing benchmarking indicates that the branch is competitive with the private sector.
We are now experiencing a time of change however, with increasing performance expectations. A number of emerging priorities need to be addressed, and the Waterworks Operations Branch is poised for change at this time.
Over the last few years Waterworks Operations has been impacted by two significant changes to existing work practices:
1. Construction
The 2000 - 2002 Waterworks Capital Plan cannot support three full construction crews for the three-year period. We can however, support two full crews and one part crew for the period. As a result, there is no longer a requirement for three foremen in the construction section.
2. Welding Shop Section
Consultants and management staff have analysed the welding shop and have concluded that there is no valid rationale for the continuation of this operation as it exists today. Historically, Waterworks Operations supported a welding service that provided value to the operation particularly with the PRV Station rebuilding program. It is unlikely that any PRV stations will be rebuilt in the next 30 years, and in 1999 less than 500 labour hours were used for specialized welding services in Waterworks. A secondary factor in this decision is based on the need to relocate the meter shop to the front of the Central Stores building. This change is required for security, safety, and efficiency within the Stores operation. Because there is no need to continue the welding shop services, we intend to amalgamate meter maintenance, meter repairs, plumbing services, tapping, and field welding into one "Trades Section". This will result in a requirement for one foreman, not two, in this revamped section.
Another driver of change is workplace safety. Safety is a significant corporate priority and a key element in all Waterworks Operations' activities. Improved safety in the workplace requires fundamental changes in work methods such as excavation methodology and the type of equipment used in construction activities.
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, etc.
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 of these priorities require a high level of proactive, innovative management in the field. The current classification of front line supervisor in Waterworks Operations does not adequately deal with our emerging needs. This front line position has changed to require a high level of project management, change management, problem solving, analysis, benchmarking, job planning, labour relations, performance management, and customer relations.
In order to provide these abilities 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 with an annual savings of $164,000 / year. 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 Waterworks Operations is provided by nine Foreman positions that are in the Foremen's Association and are not exempt positions. 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 reallocates work crews more effectively under six new 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 will reduce the annual operating budget by $164,000 / year. Improvements in the management structure are achieved with a decrease in management costs. This structure will also facilitate improvements in our service delivery which will likely provide long term savings.
PERSONNEL IMPLICATIONS
The restructuring of the Waterworks Operations Branch will result in nine Foreman positions being eliminated. Three existing CUPE 1004 positions will subject to a classification review.
The Foremen's Association, and CUPE 1004 have 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;
- 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 of these 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 Waterworks Operations Branch in Engineering are required to address both current and future needs and issues. The management changes recommended will result in reduced operational costs and will substantially improve branch efficiencies in a number of areas.
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