Agenda Index City of Vancouver

POLICY REPORT

TO:

Standing Committee of Council on City Services & Budgets

FROM:

General Manager of Engineering Services

SUBJECT:

Reorganization of the Administrative Function and Related Building Improvements- Engineering Operations, Manitoba Works Yard

 

RECOMMENDATIONS

A. THAT Council authorize the expenditure of $400,000 for the relocation of the Water Meter Shop, with funding from Waterworks Basic Capital.

B. THAT Council authorize the expenditure of $190,000 for renovations to the Waterworks Offices to accommodate the new records and dispatch group, with funding from Waterworks Basic Capital.

C. THAT Council authorize the General Manager of Engineering Services to enter into a contract with PBK Architects Inc. to provide detailed design and construction administration services for renovation of the Administration Building and Water Meter Shop at the Manitoba Works Yard, for an estimated amount of $79,000 (included in the funding approval in Recommendation B), subject to the execution of a contractual agreement to the satisfaction of the General Manager of Engineering Services and the Director of Legal Services.

D. THAT Council approve the following staff restructuring, subject to final confirmation by the General Manager of Human Resources:

COUNCIL POLICY

City Council, as a matter of directing effective municipal government, endorses organizational changes which improve City services, especially if cost savings are involved in the changes. Council approves the establishment and deletion of all regular positions. Council approval is required for Capital expenditures over $50,000 and consulting contracts over $30,000.

SUMMARY

Council is being requested to approve the relocation of the Water Meter Shop within the Central Stores building and to renovate the Waterworks records and office area to accommodate an amalgamated records and dispatch group. Funding for Water Meter Shop relocation project was originally included in Waterworks Basic Capital at $1.0 million. The relocation of the Water Meter Shop is now estimated to only cost $400,000, much less than previously budgeted as a new shop does not have to be constructed due to an earlier amalgamation of welding functions by Engineering Services.

To facilitate this relocation, Engineering Services is requesting authorization to engage PBK Architects Inc. (PBK) for design and construction contract administration services for the renovation work.

Engineering Services is proposing to restructure the core administrative functions in a phased approach in the operating branches at Manitoba Works Yard. This restructuring is being proposed to take advantage of operational efficiencies and to reduce operating costs through position savings, some of which have arisen through the implementation of the SAP project. Initially, the core functions of time entry and accounts payable for five operatingbranches will be amalgamated into new shared service groups under the Yards Services Branch. For the first year a stakeholder committee from the participating branches will monitor and evaluate the new structure to ensure the planned efficiencies and service improvements have been realized.

This restructuring involves reclassifying four positions, abolishing a vacant supervisory position, replacing that position with a Superintendent I position, and amalgamating clerical staff to form shared clerical service groups. The restructuring of the administrative functions will result in the temporary reduction of two clerical support positions which are expected to become permanent reductions once the evaluation process is complete. Temporary renovations to the existing Administration Building are required to accommodate the shared service groups, and will be funded from the salary savings.

PURPOSE

The purpose of this report is to present Council with a proposal to relocate the Water Meter Shop, to renovate parts of the Manitoba Works Yard Administration Building, to hire an architectural consultant and to proceed with a staff reorganization to improve service and reduce operating costs.

DISCUSSION

The Manitoba Works Yard is the operations centre for six Engineering branches. Five of the branches work out of the Administration Building, with the sixth located in the Garage Building. Currently the time entry, accounts payable, dispatching and records functions of Engineering Operations are performed by clerical staff in each of the six operating branches. Efficiencies have been achieved by the time entry and accounts payable clerks with the implementation of SAP, but the time savings have been spread out among the many different positions, making the savings difficult to realize.

An analysis of the clerical support functions by a staff team from the operating branches established that time entry and accounts payable could be performed more efficiently by amalgamating the functions into shared service work groups. It is proposed that these new shared services groups will be formed under the Yards Services Branch. A new steering committee made up of supervisory, employee and union representatives will monitor and evaluate the new shared service model during the first year. If the shared service model isa success, then the position reductions resulting from the reorganization will be made permanent.

This proposal is consistent with the SAP Benefits and Realization Study by City staff and Deloitte Consulting which recommended that a shared services model for payroll and accounts payable would be the best practice to fully benefit from the implementation of SAP. In addition to efficiency gains, the participating branches and the Engineering Department will benefit from more consistent accounting practice and increased expertise in the time entry and accounts payable functions.

Efficiency gains and service to the public and city crews in the field will result from the amalgamation of the Water and Sewers dispatchers and records staff.

BUILDING RENOVATIONS

Within the Manitoba Works Yard complex there is no existing office space which could accommodate an amalgamated shared service group for payroll and accounts payable.

The Engineering Department has reviewed the long term building space requirements at the Manitoba Works Yard, and has determined that the office space development for the service groups should be planned in the context of our longer term space needs. There are two double wide temporary trailers installed in the yard because of over-crowding in the main building. One is for the Waterworks Foremen (installed in 1995), and the other for Sewers Foremen and Human Resource staff (installed in 1997). Both of these trailers provide temporary accommodation only and will require replacement with permanent facilities in two to five years.

Long term improvements to the Manitoba Works Yard buildings had been estimated at a cost of $5 million, primarily to construct a new office wing. However, Corporate Services has subsequently reorganized and significantly downsized the Central Stores operation at Manitoba Works Yard, and no longer requires as much space. Engineering recently reorganized the welding shop operations by amalgamating the Waterworks Welding Shop with the Welding Fabrication Shop in Equipment Services. This operational reorganization by Waterworks reduced the building space requirements and freed up the welding shop area in the Central Stores building for the Meter Shop. Staff savings were also a result of the efficiency gains from the reorganization, as one foreman position was eliminated and two trades welders who were retiring did not have to be replaced.

As a consequence, Central Stores can now amalgamate its operations to the west side of the existing building once Waterworks moves the Water Meter Shop to the vacated welding shop space at the south end of the building. This will open up sufficient space in the building to accommodate future office and operational needs. As a result, the operational reorganization in both Waterworks and Central Stores has eliminated the need for Engineering to construct an expansion to the administration building and provides significant capital savings.

In September 2000, Engineering Services hired the PBK/Cochrane Group to plan for office needs within the existing building structures. Based on this space planning work, Engineering Services is proposing a two phased approach to meet the Manitoba Works Yard office space requirements. This Council Report deals with the first phase, which involves relocating the Water Meter shop, reconfiguring the Water offices to provide a permanent work area for the Water and Sewers Records/Dispatchers, and providing space for the new time entry and accounts payable group. The second phase (long term plan) is to provide permanent space for staff currently housed in temporary trailers, and to build new locker and washroom areas and lunch and training room, in the Central Stores building. Engineering Services will likely be considering a capital funding request for the second phase renovation project in the next three year capital plan.

Following is the estimated cost of Phase I along with the funding sources:

Capital Funding Improvements - including Architectural Fees

Temporary Renovations

SELECTION OF AN ARCHITECTURAL CONSULTANT

Following a public request for qualified applicants, four companies were selected to respond to a detailed request for proposal for consulting services to develop the functional programming for the reorganization and renovation. The RFP was structured to allow the City to invite the functional programming consultant to also undertake the design work, provided the consultant's performance met expectations and a reasonable fee could be negotiated.

Based on a review of the proposals and interviews, PBK Architects Inc. was selected to undertake the functional programming, and a contract was entered into at a value of $22, 200. Because of PBK's positive performance on functional programming services, PBK was invited to submit a proposal for the design work as laid out in the original RFP. PBK's design services proposal was evaluated on the basis of PBK's demonstrated experience and technical ability, project methodology, work program and fees. The General Manager of Engineering Services is recommending PBK Architects Inc. for the detailed design and construction phase of the work, at an estimated cost of $79,000.

STAFF RE-STRUCTURING

Two Clerk IV Supervisory Positions

With the new shared service model, a working supervisor, with expertise in time entry and accounts payable, will be required to supervise and train staff, reconfigure systems, address policy changes, and liaise with corporate payroll and the SAP group. This will not only benefit the shared service group, but will also be a resource to all the time entry and accounts clerks in the Department. This position will also be responsible for scheduling time off to reduce the need for temporary help which will provide a funding source for the proposed reclassification. An existing Clerk III position will be reclassified to a Clerk IV supervisory position for this purpose.

Water and Sewers Operations have service crews that are engaged in activities that requiresimilar records and dispatching information. The Records and Dispatch/Call Handlers in these branches are closely related in the functions performed and would benefit from being closely integrated. A vacant Clerk III position will be reclassified to a Clerk IV supervisory position for this new shared service group. Funding for the increased pay level for this position will be available from savings achieved through the reduction in temporary help for the two branches involved.

Superintendent I Position

The Yards Branch has a Yards Services Supervisor position which looks after all the maintenance contracts, repairs, renovations, cleaning, and related work for all of the Engineering works yards. This position is responsible for the administration of the City's hired equipment, supervision of all the CUPE 1004 flagpersons and security guards, supervising the driver training supervisor, and will also be responsible for the time entry and accounts payable shared service group.

This position will be responsible for the supervision of all reporting staff in such areas as hiring, training, performance, attendance, scheduling, discipline and dismissal in compliance with the collective agreements and City policy. The incumbent will also be responsible to meet with staff to resolve disputes and to interpret and enforce the appropriate collective agreements and act as a representative for management in the grievance process. Human Resources concurs that the current Yards Services Supervisor position should now be deleted and a new exempt Superintendent I position created. Funding of $15,000 per year for the increased salary will be provided by savings in the watchmen wages account resulting from a reorganization of the shifts.

Two Engineering Assistant III Positions

With the reorganization of the administrative functions, Sewers and Waterworks Operations will not require the supervisory Engineering Operation Clerk (EOC) positions in their branches, but will require technical/clerical support. Both EOC positions are currently vacant. Human Resources has initially indicated that an appropriate job reclassification for these two positions will likely be an Engineering Assistant III. Even though the new classification (EAIII) is one pay grade higher, no salary increase is required as the daily work hours for this new classification is designated as one half hour less.

PERSONNEL IMPLICATIONS

The reclassification of two Clerk III positions, one in each of the new time entry/accounts payable and records/dispatch service groups, to Clerk IV positions will be required.

The Yards Services Supervisor position will be abolished and the creation of a new exempt Superintendent I will be required to perform the functions of a manager and will be involved in confidential labour relations matters.

The reclassification of two vacant Engineering Operations Clerk positions, one in each of the Waterworks and Sewers operating branches, to Engineering Assistant III positions, will be required.

A copy of this report has been forwarded to CUPE 15 and there have been staff meetings on the proposed reorganization as well as status updates at the regular Union/Management Committee meetings.

FINANCIAL IMPLICATIONS

Funding for the Water Meter Shop relocation and the Waterworks records and office area are available from a $1.0 million budget earmarked for the Water Meter Shop relocation in Waterworks Basic Capital which was approved in the 1997-99 Capital Plan. Of this original amount, $970,000 is still available. The relocation of the Water Meter Shop is now estimated to only cost $400,000, much less than previously budgeted, as a new shop does not have to be constructed. The Water records area and office changes in the Administrative Building, including architectural consultant fees, is estimated to cost $190,000, bringing the total Waterworks cost to $590,000.

No increase in operating funds is required for this administrative reorganization. In fact, there will be a net reduction in operating costs. The reclassification of the two Clerk IV supervisor positions will be funded by existing temporary help budget savings resulting from the reorganization. The new Superintendent I position will be funded from the Yard Services Supervisor position which is being abolished, with the increased salary costs being funded from savings resulting from a restructuring of the watchmen shifts. The reclassification of the two Engineering Operations Clerk positions to Engineering Assistants III's, although one paygrade higher, will require no increase in salary costs as the daily hours of work drop by one half hour for the new classification.

The amalgamation of the time entry, accounts payable, and records functions will temporarily reduce the clerical positions by two Full Time Equivalent (FTE) positions, bothcurrently funded in the Engineering Operating Budget. The Operating Budget savings from these temporary clerical staff reductions are expected to be realized permanently once the evaluation of the restructuring is complete. In the meantime, these operational savings will be used to pay for the $50,000 in temporary renovations to the Administration Building.

CONCLUSION

This is the first step in the building renovations for the Manitoba Works Yard which will ultimately allow for the permanent replacement of temporary trailer accommodations for Water, Sewers, and Human Resources staff.

With a reorganization of the Manitoba Works Yard Operating Branch administrative functions to a shared services model, it is anticipated that we can improve efficiency and service while achieving a net reduction in our Operating Budget. The operating savings will be monitored and evaluated during the first year by a stakeholder committee with a view to measuring and making permanent these savings.

This project is part of an ongoing initiative to change Engineering's business processes to achieve best practices using SAP.

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