POLICY REPORT
                                HUMAN RESOURCES

                                           Date: July 8th, 1997
                                           Dept. File No.
                                           CC File: 1002/1377

   TO:       Vancouver City Council

   FROM:     General Manager, Vancouver Fire and Rescue Services

   SUBJECT:  Better City Government Initiative - Implementation of the
             "Transition" Phase of an Organizational Change Initiative at
             VF&RS.


   RECOMMENDATIONS

        A.   THAT Council endorse the Fire and Rescue Services
             organizational review of the senior management structure as
             outlined in the Sommers Consulting Inc. Report (Executive
             Summary attached as Appendix A) as a guide to the evolution of
             the Department.

        B.   THAT Council authorize the initiation of a process to fill the
             General Manager/Fire Chief position, subject to final Council
             approval; source of funds to be the Fire and Rescue Services
             Operating Budget.

        C.   THAT Council approve an expenditure of $45,000 to conduct a
             search for a new Fire Chief; source of funding to be the
             Contingency Reserve Fund.
        D.   THAT Council authorize filling the six new Assistant General
             Manager/Deputy Chief positions; source of funding to be the
             Fire and Rescue Services Operating Budget.

        E.   THAT Council authorize the creation and filling of a new
             exempt position of Administrative Secretary to the General
             Manager/Fire Chief with funding from existing positions.

        F.   THAT Council approve an expenditure of $20,000 to support the
             1997 staff development program; source of funding to be the
             Contingency Reserve Fund.

        G.   THAT the General Manager/Fire Chief report back to Council
             with an implementation plan for a Change Management initiative
             based upon the recommendations of the Sommers Report.

   GENERAL MANAGER'S COMMENTS

        The Sommers Report advocates changes that will lead to increased
        effectiveness of Vancouver Fire and Rescue Services.  It recommends
        a new management structure, together with an implementation time
        line for filling the new General Manager/Fire Chief and Assistant
        General Manager/Deputy Chief positions. This time line is ambitious
        but achievable.  Additionally, the report outlines twelve issues
        which must be addressed in order to maximise organizational
        effectiveness.  It is recognised by both Management and the
        Vancouver Firefighter's Union Local 18 that a joint process is
        required to address these complex issues.  This in turn will
        enhance the organization s ability to accomplish the changes
        required to meet stakeholder and customer needs.

   CITIZENS' ADVISORY COMMITTEE COMMENTS

   The  Citizens' Advisory  Committee supports  the recommendations  of the
   Sommers  Consulting Group  and the  initiatives being  proposed for  the
   "Transition"   phase.     Staff  development,   specifically  leadership
   training,  is viewed  as being  of paramount  importance.   The proposed
   administrative structure offers new  opportunities for the department to
   meet its mandate to  the citizens of Vancouver.   It is noted that  real
   success can only come with stakeholder buy-in to a process which focuses
   on involvement  and high quality communications.  The Citizens' Advisory
   Committee recommends that this report to Council be accepted.

   COUNCIL POLICY

   A  Council   resolution  on  September  1,1992,   directed  the  General
   Manager/Fire  Chief  to  achieve  a number  of  specific  organizational
   objectives including the  implementation of a vigorous  program of staff
   development and succession planning.

   Council directed that during  the term of the 1994-96  Budget Management
   program,  any proposed  increases in  program and/or  service  levels be
   offset  by corresponding  spending  reductions elsewhere  in the  City's
   operating  budget or by  increases in non-taxation  revenues, subject to
   Council direction.

   Council has approved a number of resolutions authorizing the Better City
   Government  Program. Fire and Rescue Services was approved by Council as
   one of the fifteen priority areas for review and redesign.

   In  an Administrative  Report to  Council dated  April  25,1996, Council
   endorsed  a  recommendation  by  the   City  Manager  that  the  General
   Manager/Fire  Chief report back with  terms of reference  for an overall
   review of the administrative structure of the Department.  Also included
   was  the  allocation of  staff resources  to  meet the  needs previously
   identified by the Department and reiterated in the TriData study.

   PURPOSE

   This  report summarizes the findings  and recommendations of the Sommers
   Consulting team related to the organization of Fire and Rescue Services.
   It also  recommends the approval of the first or "Transition" phase of a
   major  Change  Initiative requiring  the  staffing  of eight  positions.
   Approval of the recommendations  in this report does not  commit Council
   to any further action.

   BACKGROUND

   In  1993, Fire and Rescue  Services completed its  first Strategic Plan.
   One of  the primary goals  of that Plan was  to provide a  basis for the
   reallocation of resources  to areas  of greatest strategic  need and  to
   provide  a  direction  for  the  redesign  of  the  overall   department
   structure, including the assignment of senior staff.  At  that time, the
   existing senior management positions of the department were realigned on
   an ad hoc basis to meet the immediate implementation needs identified in
   the Strategic Plan.

   Recently, the  Department completed  an operational review  of staffing,
   equipment, deployment and  firehall locations.  This  review was carried
   out by a  consultant, TriData.   Recommendations were  presented to  and
   adopted by Council on March 27,1997. 

   The Deputy Fire Chief gave notice of his intention to retire by November
   1996 and  the General Manager/Fire  Chief will  retire in  May of  1998.
   There are  also a number of  current or pending vacancies  at the senior
   staff level.  This created  an opportunity to review, and  if necessary,
   reorganize  the Department's  senior management  structure. A  review of
   this nature  at this time is  a key supporting strategy  to other Better
   City  Government  initiatives  currently  ongoing  in  Fire  and  Rescue
   Services.

   In an  Administrative Report  to Council  dated August  26,1996, Council
   approved a recommendation  by the General  Manager/Fire Chief to  engage
   the services of a  suitably qualified consultant to conduct a  review of
   the senior management and administrative structure of Vancouver Fire and
   Rescue Services.

   DISCUSSION

   This report  summarizes the findings  and Change Management  strategy of
   the Sommers Consulting team.

   The  consultant recommends  a  two phase  approach  to implementing  the
   significant organizational change required  at Vancouver Fire and Rescue
   Services.   The first  preparatory or  "Transition" phase will  commence
   upon  approval of this report and  will be complete at approximately the
   same time as the current General Manager/Fire Chief retires.  This phase
   will  include   a  staff   development  program,  filling   the  General
   Manager/Fire  Chief  and  six  Assistant  General  Manager/Deputy  Chief
   positions,  developing communications and  participation strategies, and
   the  development of a detailed plan for the  next phase.  The filling of
   these positions will be timed so that the new General Manager/Fire Chief
   will  have the opportunity to  influence the process  and participate in
   the selection  of the new executive  team. The second phase  will be the
   "Implementation" phase  itself and is  expected to  last for up  to five
   years.

   Also identified in the consultant's report are a series of issues  which
   must be  addressed if organizational  effectiveness is to  be maximised.
   These issues include:

        -    A  "Glass  Partition" which  currently  exists  between senior
             staff and firehall staff
        Ÿ    A lack of support for executive personnel by the rank and file
        -    Constraints resulting from seniority 
        Ÿ    Development of management skills
        Ÿ    Career development
        -    Organizational culture
        Ÿ    Labour management relations
        -    Accountability and responsibility
        Ÿ    Training
        Ÿ    Communication
        -    Organizational vision
        Ÿ    Emergency Medical Services

   In order to  facilitate the process of addressing these issues and their
   associated  recommendations, it  has been  agreed with  Local 18  that a
   joint  labour  management committee  will be  established.   It  is also
   jointly  agreed  that  mutually  acceptable processes  will  be  quickly
   defined  to enable the  committee to develop  comprehensive solutions to
   the complex issues identified by the report.


   IMPLEMENTATION AND COMMUNICATIONS PLAN

   Major steps in the first phase of the Change initiative include:

   1.   Laying  the Foundation for Change,  to be complete  by August 1997.
        This includes  the  creation of  a  staff development  program  and
        filling  the  first  Assistant  General Manager/Deputy  Fire  Chief
        position.   Additionally,  input  will be  sought from  stakeholder
        groups   on  a   comprehensive  communications   and  participation
        strategy.

   2.   Selecting the  new General  Manager/Fire Chief,  to be  complete by
        December 1997.   This will include  well defined position/candidate
        requirements   and  an   internal/external  search   for  qualified
        applicants.

   3.   Readiness for Change, to be complete by  June, 1998.  This includes
        well   defined  position/candidate  requirements   for  all  exempt
        positions along  with a search for the  remaining Assistant General
        Manager/Deputy Chief positions.

   Input  during this phase will  be solicited from  all stakeholder groups
   through a consultative process.  Regularly scheduled meetings  with each
   group  and a series  of news bulletins  will be used  to communicate the
   Change process.  A report will be submitted to Council  before the start
   of the implementation phase in May 1998.

   PERSONNEL IMPLICATIONS

   It is expected that a  number of senior staff will be  reassigned during
   this first phase.  However, at this time it is not expected that overall
   staff levels will change.

   FINANCIAL IMPLICATIONS

   It  is proposed that,  in the longer  term, new positions  to be staffed
   will be  funded from  the within the  existing Fire and  Rescue Services
   Operating Budget.   However, in the short term, "bridging"  costs may be
   incurred  in order  to  accommodate the  movement  of staff  within  the
   organization  during this phase.  A  report to Council will be submitted
   if additional funding becomes necessary.

   The  estimated cost for filling  the General Manager/Fire Chief position
   through  an internal/external search will be $45,000 and it is requested
   that  the  funds be  provided from  the  1997 Contingency  Reserve Fund.
   Costs  for performing a full  executive search have  increased in recent
   years and the City's experience with quotations for similar searches for
   other senior positions suggests that $45,000 is a reasonable estimate.

   There are a number of immediate staff  development needs.  The Director,
   Human   Resources  will  be  involved  in  all  1997  staff  development
   initiatives and expenditures.

   It is expected that  VF&RS' 1998 Training and Education budget will need
   to  increase by  approximately 20% or  $25,000 during  this "Transition"
   phase.  This will be required to fund external  education as part of the
   proposed staff development  program.  Justification and  a detailed plan
   will  be submitted through the 1998 budget process.  Funding required to
   accommodate  educational/staff development  leaves  with backfills  will
   also be submitted through the 1998 budget process.

   SOCIAL IMPLICATIONS

   The objective of this first phase is to implement a management structure
   which  will be  organizationally  more effective.  This  is required  to
   support  the Department's goals of providing real value to our customers
   at a reasonable  cost and which is consistent  with their needs.   It is
   also required  to ensure  that  all members  of the  department share  a
   common  vision of  the future,  and have an  opportunity to  develop and
   participate in that vision.

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