CITY OF VANCOUVER

ADMINISTRATIVE REPORT

 

Date:

January 13, 2004

 

Author:

Kevin Ramsay/Tom Timm

 

Phone No.:

604.323.7667/
604.873.7303

 

RTS No.:

3918

 

CC File No.:

1375

 

Meeting Date:

January 29, 2004

TO:

Standing Committee on City Services and Budgets

FROM:

General Manager of Engineering Services

SUBJECT:

Engineering Operations, Reorganization

RECOMMENDATION

GENERAL MANAGER'S COMMENTS

The restructuring proposed in this report parallels similar changes that have been implemented in other areas of the Engineering Services Department. These changes have been successful in helping to drive improvements in our operations which have resulted in efficiencies and cost savings. A higher level of front line supervision is important in order to drive change at the shop floor level.

COUNCIL POLICY

SUMMARY

Engineering Services currently manages our field operations through a traditional management hierarchy and, as a result of both the need to modernize and significantly increased expectations, requires a change to a more contemporary and sophisticated management structure. This proposal parallels previous re-organizations in the Equipment Management Branch, and in the Sewers and Waterworks Operations Branches.

This reorganization will result in the elimination of thirty Foreman and one Clerk positions, and the creation of twenty-four Superintendent 1 and three Foreman positions, with an overall net reduction of four supervisors. Also, eight sub-foreman will be reclassified to working foremen positions and a temporary Superintendent 1 position will be made permanent.

The key benefit to reorganizing the operations is to elevate the standard and expectations of key supervisory positions to better reflect the growing and more diversified operational needs. The traditional supervisory model has served us well over the years, and the supervisors are fulfilling the requirements of the classifications of their current positions. However, today=s expectations of management personnel is that they are equipped with a broad range of management skills. For the organization to move ahead, we require a higher management standard therefore necessitating this change to the existing structure.

The proposed re-organization results in net annual savings of $179,000. It is proposed that these savings be re-allocated to the street cleaning portion of the Engineering Services Budget to allow for an increase in light duty assignments for disabled workers. This will not only allow for additional rehabilitation opportunities for injured workers, but will also allow for an increased level of service in street cleaning.

PURPOSE

The purpose of this report is to obtain City Council approval to improve the supervisory structure in several areas of Engineering Operations. Implementation of the proposed structure will involve elimination, creation, and classification review of various supervisory positions in the Department and will result in an overall net reduction in supervisory positions.

The reorganization results in a net saving of $179,000 annually. This report recommends reallocating those savings to create additional 'light-duty' opportunities for injured and/or disabled employees.

BACKGROUND

This is the third phase in the reorganization of the Operations Branches in Engineering Services. The previous Branch reorganizations, approved by Council in 1999 and 2001, have resulted in restructuring of the supervisory/management structure in Equipment Services, Sewers, and Waterworks with a consequential improvement to customer service, performance levels, employee attendance, and overall costs. The influence of these reorganizations has contributed to many successful performance improvements that have been achieved in these work areas over the past few years, including;

Waterworks Operations;

Sewers Operations;

Equipment & Garage;

While all of these improvements are not directly attributable to the reorganization of the supervisory/management structure, they have all been supported by this change. Similar changes are now proposed in Streets, Sanitation,and the Landfill/Transfer Station. We also wish to confirm one Superintendent position which has been implemented on a temporary basis in Traffic/Electrical Operations.

DISCUSSION

The current organization of the Sanitation, Landfill Transfer Station, and Streets Operations Branches is based on a traditional supervisory model, Front line supervisors have been promoted from the ranks, based largely on their on the job experience and practical knowledge of the work. The existing front line supervisory classifications, (Foremen) call for skills suitable for the needs of this traditional model. Most Foremen, while making valued contributions, lack any formal training and have developed their skills primarily through experience and, in some cases, City-sponsored courses.

Today, the minimum expectations of supervisors are much higher. In addition to the traditional technical qualifications, front-line supervisory positions now demand expertise in labour relations (including difficult issues such as substance abuse and attendance management), employment diversity, accommodation, information management, communication, performance management, occupational health and safety, project management, change management, financial analysis and budget control, and customer relations. In order to manage effectively, it is important for front line supervisors to have skills in these areas. The general thrust of this reorganization proposal is to replace the majority of our existing Foremen positions with Superintendent 1's, with responsibilities, and expectations consistent with this more senior level of management.

The following sections detail the proposed organizational changes in each of the operating branches.

Sanitation Operations

Sanitation Operations has evolved to provide services based on a traditional model with three Superintendents directing eight foremen, who are front line supervisors of the 200 CUPE staff providing direct service in each specific function. Typical of traditional models, the directions are top down, with specialization of foremen and worker assignments. Historically, this model has worked well in achieving efficiencies for well defined, repetitive work where changes are limited.

EXISTING - Sanitation Operations

Significant changes have occurred in solid waste systems over the past ten years and the operation continues to evolve. Changes since 1989 have included;

Overall, the number of services to residences has grown from 90,000 collection calls per week to 225,000 in 2002 ( now includes garbage plus recycling and yard waste).

Further change is anticipated as our Sanitation services continue to evolve:

PROPOSED - Sanitation Operations

The reorganization of Sanitation Operations will create 7 new Supt. I positions along with retaining 3 foreman positions. This structure will allow for appropriate front line supervision and will be divided between routine work (Foreman / Sub-foreman) and more complex work (Superintendent I).

Superintendent I's will be responsible for planning, budgeting, analysing, WCB claims, grievance handling, employee hiring, discipline, along with relieving some of the Superintendent II and Manager's Administrative workload. The night shift will be supervised seven nights per week by two Superintendent I's on 4-10 hour shifts with one night overlap. A sub-foreman will assist on six nights when there is no overlap. The increase in supervision is required to minimize the risk of liability arising from problems on the street after hours when regular staff is off. A Superintendent I will supervise Collections, with assistance in routine administration by a Foreman, who will also assist the Superintendent I in Yard Trimmings Program. A Superintendent I will supervise the extensive day shift Street Cleaning Program, with assistance from a Foreman.

The Superintendent I, Administration would be responsible for the employee accommodation program, the Poster Removal Program (transferred from Streets Operations), loss-time management, and office supervision. This position is critical to the success of the new program. The classification of this position remains subject to review by the General Manager of Human Resources.

Streets Operations

Streets Operations is the largest City operating branch with over 340 employees and annual expenditures around $35 million / fiscal year. For many years the supervisory structure has remained the same; one Branch Manager, four Superintendent II's twenty Foremen, and one Office Manager.

EXISTING - Streets Operations

The proposed reorganization of Street Operations will result in a more flexible, streamlined and effective management structure. A minimum direct saving of $296,000 will be realized through a reduction in the number of overall supervisory positions and the transfer of poster removal functions to Sanitation. This new management structure will be better suited to reduce costs, monitor productivity, and respond to emerging issues in order to increase the level of service to the public.

PROPOSED - Streets Operations

The new structure includes the addition of fourteen Superintendent I positions to manage over 300 employees. One Superintendent I positions will also be allocated to business support in the area of attendance management, WCB compliance, operational analyses, etc. The administrative supervisory duties currently provided by the Clerk V (Streets Office Manager) will be transferred to the Traffic & Electrical Operations Office Manager. This consolidation of duties is possible because both branches will be co-located in the new National Works Yard.

Transfer & Landfill Operations

The Vancouver Landfill and Vancouver South Transfer Station (VSTS) are managed by the Solid Waste Division, Transfer & Landfill Operations Branch on behalf of the City of Vancouver. The facilities are operated seven days per week throughout the year.

In July 2001, Council approved the creation of a new Superintendent I position in the branch to provide additional supervision during dayshift operations at VSTS. The approved direct supervisory hierarchy for the Branch now includes two Superintendent I's and two Foreman II's. The Superintendent I's provide supervision Monday to Friday during the day at each of the facilities. The Foremen II's provide afternoon shift supervision for both facilities Monday to Friday. One of the Foreman II's is at each of the Landfill and VSTS on weekends.

In the July 2001 report, in addition to supervision changes, Council approved changing the rate structure for garbage and yard trimmings to be all based on load weights rather than flat fees for small vehicles. Council also approved extending the operating hours at VSTS. The new rate structure went into place on January 1, 2002, and the extended hours were implemented on April 1, 2002. The combination of new rates and extended operating hours were expected to generate approximately $550,000 in additional revenue in 2002. The actual increase in revenues at VSTS from 2001 to 2002 was more than $1,000,000 or more than 10% of cash revenues.

To further improve operations in the Transfer & Landfill Operations Branch, we propose eliminating the Foremen II positions and replacing them with Superintendent I positions. Superintendent I's are required because of the level of responsibility of the positions. These positions must independently supervise staff and equipment at VSTS and the Landfill. On weeknights, one person is responsible for both sites. The positions are also responsible for interaction with the public at both facilities. These positions are also responsible for ensuring environmental compliance since technical staff do not work weekends or nights. An additional benefit of having four Superintendent I positions is that supervisors can be moved into any of the four supervisory positions to provide rotation opportunities. It is anticipated that the afternoon-weekend positions would work a 9-day fortnight to avoid overlapping and to extend their working day.

The cost of replacing the Foreman II's with Superintendent I's will be $24,000 per year. In 2004, the City is planning to extend operating hours at VSTS during summer months to provider better service, reduce congestion during the day and increase operating revenues. The additional revenue resulting from extending the operating hours is expected to more than cover the additional cost of the new positions. As a result, creating the new Superintendent 1 positions will not impact on the Solid Waste Utility.

Traffic & Electrical Operations

In 1999 Council approved the consolidation of Electrical Operations and Traffic Operations into a single branch, the Traffic and Electrical Operations Branch. As part of the consolidation, the management structure was revised to meet the operating needs of the new branch. One management position, responsible for daytime sign maintenance functions and the signage for special events, was filled as a temporary Superintendent I on a trial basis. Experience has confirmed that this classification is cost-effective and appropriate. The position should therefore be converted from temporary to full time, completing the changes contemplated in the consolidation report.

Accommodations

This report recommends that the net $179,000 saving from the supervisory restructuring be reallocated to fund light duty labouring positions in Sanitation Operations. These would include additional litter pickup, poster removal, etc.

Through the recently concluded round of collective bargaining with CUPE 1004, the City and the Union have committed to a restructuring of our disability plan. Part of that restructuring will involve mandatory participation in light duty assignments for workers who are able to return to work, but not yet to their regular assignments. The reallocation of $179,000 will help fund such lighter duty work. This will have benefit the workers by providing rehabilitiation opportunities, and work hardening, allowing a more rapid return to full duties. It will also benefit the City by reducing the cost of our disability benefits, and will have the additional benefit of improving overall cleanliness of the City.
The City cost for long-term disability coverage is over 60% of base wages. Therefore the effective cost of each light duty assignment is nominally only 40% of the normal wage cost. The positions will be assigned only to employees who require a modified return-to-work placement.

FINANCIAL IMPLICATIONS

The proposed reorganization in Streets Operations will result in an estimated annual savings of $296,000. These savings will be used to offset the additional operating costs in Sanitation Operations to supervise the proposed Employee Accommodation Program, and the transferred poster removal function. In the short term, there will be no net impact on the tax-supported budget in Engineering Services.

Impact on Operating Budget
 

Sanitation Operations $ 117,000
Streets Operations $ (296,000)
Traffic & Electrical Operations $ 0
Landfill & Transfer Operations $ 0
Re-allocation to Street Cleaning $ 179,000
NET  $ 0

It is difficult to determine the exact long-term cost-benefit of the increase in management supervision although it is expected that additional and ongoing savings will be realized in the immediate and long-term. As previously noted, Phase I and II of Engineering Operations' reorganizations have had a significant and positive impact on overall costs, absenteeism rates, productivity, and morale in the workplace.

PERSONNEL IMPLICATIONS

The restructuring of the Sanitation Operations Branch will result in the elimination of eight Foreman II positions (7 permanent and 1 temp), plus one Foreman III position (7 nights) and the creation of three Foreman positions, subject to classification review. Seven Superintendent I positions will be added to the Branch.

The restructuring of Streets Operations will result in the elimination of ten Foreman II (9 permanent and 1 temporary), eight Foreman III (7 permanent and 1 temporary), one Equipment Foreman, eight Sub-Foreman II, and one Clerk V positions. Fifteen Superintendent I positions and eight Working Foreman positions will be created in Streets Operations.

The restructuring of Landfill & Transfer Operations will result in the elimination of two Foreman II positions and the creation of two Superintendent I positions.

The Foreman's Association, CUPE 1004, and CUPE 15 have been informed of the proposed changes and a copy of this report has been provided to them.

There have been ongoing discussions with the Foreman's Association regarding the effect this restructuring will have on their members and how they will be addressed. To mitigate the impact on existing Foreman, it has been agreed that:

It is expected that a number of the existing Foremen have the ability to successfully fill the role of Superintendent I. Further, there are currently eleven vacant Foremen positions in Engineering Operations which have only been filled on a temporary basis, pending this reorganization. These vacancies, along with the above-noted measures, will minimize the impact on existing Foreman and avoid the need for any layoffs to achieve this restructuring.

It is expected that the incumbent of the senior clerical position which is being eliminated in Streets Operations will also be a candidate for one of the new Superintendent positions. If she is not successful in this competition, there are other senior clerical positions currently vacant in the department which she could fill.

CONCLUSION

This report proposes changes to the management structure in Engineering Services Operations in order to address emerging internal and external challenges in the workplace. The leadership and management of the City's most valued asset, it's employees, is critical to the future success of Engineering Services. This reorganization will result in improved delivery of services, reduced absenteeism, higher productivity, and better value to the taxpayers.

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