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Management Audit of Department of Public Works - Booz, Allen
1 . { r a FINAL REPORT i� flan o sv&nt Audit i ORIGINAL. COPy for [Masten Hep [' HUNTINGTON BEACH MUST BE RET�RETURNED DEPARTNENT OF PUBLIC WORKS TO ITY CLERK May 4, 1978 This report is confidential and intended solely for the information of the client to whom it is addressed. BOoz, ALLER & HAMILTON Inc. Managerent Consultants r TABLE OF CONTENTS Page INTRODUCTION AND SUWARY i I. STUDY BP.CKGROUND 1 II. rRESENT ORGANIZATION AWD OPERATYONS 6 III. MANAGEMENT AND ADMINISTRATION %:ONCLUSTLOKS I? IV. ENGINEERING CONCLUSIONS 48 V. MAINTENANCE AUID FIELD OPERATIONS CONCLUSIONS 56 VI. RECOMMENDATIONS 79 VII. NEXT STEPS 112 APPENDIX t • 1 • i •i i • ! 1 • i 1• i !► i • t i i i + • t � w INDEX OF EXHIBITS Following Pagra I. PRESENT ORGANIZATIONAL STRUCTURE 7 II. AUTHORIZED POSITIONS BY FISCAL YEAR 1C I III. EXPENDITURES AS PERCENTAGES OF TOTAL BUDGET PYSCAL YEARS 19 T1-1978 11 i IV. SURVEY OF WO:.K RESPMNSIBILITIES FOR CITY-OWNED I14PROVEMENTS 13 V. GROWTH OF ENGINEEPJNG AND MAINTENANCE STAFF RESOURCES 14 WI. DISTRIBUTION OF AUTHORIZED E�MENDITURES BY SERVICE AND NON—SERVICE FUNCTIONS FOR PUBLIC WORKS WATER FUND FISCAL YEAR 1978 15 VII. DISTRIBUTION OF AUTHORIZED EXPENDITURES ;tg FUNCTION FOR PUBLIC WORKS GENERAL FUND BUDGET VISCAL YEAR 1978 15 i VIZI. DISCRETIONARY EXPENDITURES FROM THE PUBLIC WORKS GENERAL FUND BUDGET FISCAL 1977 15 e r 01 • Following Pago IX. FMID EXPENDITURES FOR PUBLIC WORKS FISCAL YEAR 1976 16 X. CREW i ANAGEMEN2 PRACTICES THAT HAVE ItJCREASED EMPLO'iEE EFFICIENCY 40 X1. COMPARISON OF STAFFING BY TYPE FOR THN!0 CITIES ENGINEERING OPERATIONS 50 UNIT COST COMPARISONS FOR SWEEPER OPERATIONS FISCAL YEAR 1978 59 XIII. COMPARISON aF MEECHANICS TO ROLLING STOCK MAINTAINED RATIOS 62 XIV. PROPOSED ORGANIZATIONAL STRUCTURE 81 XV. PROPOSED ASSIGNMENT OF ENGINEERING RESPONSIBILITIES 86 XVI. PROPOSED STRUCTURE OF ENGINEERING RELATED POSITIONS 86 XVII. PROPOSED GENERAL SERVICES ORGANIZATION 90 XVIII. PROPOSED STREET AND PARKWAY MAINTENANCE ORGANIZATION 91 1 O k I� I � i � 1 ! � i ! �l ! ! ! >�I ! • ! t f t _ � Y Fallowing Page XIX. CONCEPTUALIZATION OF INFOP14ATION FLOW FOR AUTOMATEI) VEHICLE MAINTENANCE SYSTEM 106 XX. PROPOSED FLOOR PLAN FOR ENGINEERING AND ADMINISTRATION 111 XXI. COST AND PRODUCTIVITY I1"MPAG2S OF THE RECOMMENDATIONS 113 rc� r r c INTRCDUCTIOR AND sUMARY _,�,� i f f � l •i 1 �' E i • t f� f ri ! • i 1 �` 1 I ! t • INTRODii MON This report summarizes our appraisal of the Huntington Beach Department of Public Works. In this study we review the past and present organization and opera- tions of the department as well as the ak3ticipated future needs of the City for public works services. This study reviews the structure, management practices and resource utilization of the department with a vie" toward answexi-ag the following questions: Are the department's resources and procedures adequate to candle present and future workloads? Are there ways that the department can b:: better structured and i programs Setter managed to: Improve productivity ox program effectiveness? Reduce or avoid present and future moats? Because of the large scope of Public Works operator3, our f:.ndings and cc-=3u- sions are organized into three separate chapters dealing grit._ -_ereral management practices, engineering operators and field operators. -i- riiialri 1��.3Wr YYL r�V — _ _ ..j.iG{f '1ai. _�.'..... - !�: • The purpose of this resort is to suggest improvements and-cost reductions where opportunities exist in the department. Due to the wide scope of departmental responsibilities and the necessary coverage in this report, there simply is not room to list all of the sound management practices Encountered during the study. The study team observed nrmerous resourceful practices and economical neasures ramployed by the department. Among these are: Broad responsibilities assigned to engineering staff to maximize productiva_ty. Crew work programs during inclement weather. Monitoring devices on equipment to warn of failure, and track production or costs. The report identifies a number of opportunities to improve the organization and operations of the department. They are not intended as criticism of the present management. In fact, many of the limitations cited in our conclusions have origins outside the department. Among these are: Awkward program structure3 in part due to city accounting practices. -ii- ! ! Vr s Relatively high cost of certain maintenance because of 1nadevua1t#-- cost monitoring tools atnd lack of ineTentives in other departments to constrain work requests. Inability to realize operational 2conomias of scale ;n vehicle maintenance because of the practice of some otter departments to maintain their own vehicles. The extremely rapid growth of the city, coupled with restrictions on budgeted and staffing increases, has required departmental managers to focus all of their attention on handling a workload that grows as the city grows as a proper €i_st priority. Consequently, :he department has not had time to fine tune the organiza- tion and operations to achieve maxims productivity at a minimwn cost. We are confident that, if Public Works managers had the time and authority to resolve the problems highlighted in this report, many of the recommendations Would not be necessary. I -iii- I ' • SU2 MARY In summary, the study team has concluded that the Department of Public works is generally doing a sound job of planning, installing and maintaining city improve- men-s. Staffing, equipment and present or proposed physical facilities are for the most part appropriate for the department's mission and objectives over this next three yearn. The department is organized and permanently staffed for a workload much smaller than it presently carries. Permanent positions have not increased beyond their 1974 level although CETR staff have been added rapidly since and now comprise over one- quarter of the total force. Similarly, the organization structure is the same as that in place ten years ago. Budget increases in the last five ye-Lqrs have barely kept a ntep ahead of inflation, at an annual i=verage of 10% in constant dollars. Most of the increases in staff and budgets are to meet growing maintenance needs. Ninety percent of all departmental staff are now engaged in maintenance actkuities. I i -iv- • Significant opportunitiEs exist to improve productivity and reduce costs through restructuring the depgrtment to reflect shifts in workload and outlays and "state if the art" developments in public works organization over the past decade. We have recommended that the Engineering Division be restructured internally and that the Water Division be restructure] to include sever and storm drain functions. I We have also recommended that the Maintenance Administration be restructured into two units, one reporting to the Director. __ = other to the City Engineer. These improvewents can be achieved at no significant additional cost to the city. Anticipated benefits of restructuring include: Improved management control and operating efficiency through combination of similar functions into units of manageable size. Improved management accountability for pl.ograms requiring plar.- nir_g and execution. Improved management focus and balanced attention to key operations. � Improved service responsiveness to the public. I 1 -v- Improved program efficiencj and effe^_tiveness can also be achieved by improving the present planning practices and management information systems. The report con- tains recommendations for improving these areas so that staff are fully utilized and both progress and costs are monitored. The resulting information will provide a basis for sound cost-based decision-making. Finally, the report identifies opportunities for direct cost savings in the areas of street cleaning and bsiilding maintenan:e. Economies can be achieved by reducing excess capacity through equipment disposal, contract repairs, work assign- ment practices and staff attrition. This report first presents a background to the study and its conduct, proceeds to exarr.ine departmental operations, a 0. crincludes with our recommendations for l future organization and operations. i -vi- I j i I. STUDY BACKGROUND { c� I. STUDY BACKGROE24D This chapter presents the background of the study and a brief description of its conduct. I. THE PURPOSE OF THE STUDY IS TO REVIEW THE PERFORMANCE OF THE DEPARTMENT OF PUBLIC WORKS AND TO IDENTIFY OPPORTUNITIES TO IHPRM ORGANIZATION RANAGEMENT AND STAFFING PROCEDURES Local municipal administrators today often find themselves faced with citizen demands for improved public services on the one hand and more fiscal restraint on the other. Satisfying both requirements means that local government can no Ion-ger afford the luxury of organizational complacency. Public administrators must cot.stantly re- appraise their operations searching for ways to improve service to their const;=ueney at the same or less cost. There are several means available to accomplish this end. Among these are: Realigning organizational structures to group similar functions or improve communications to increase efficiency. Prioritizing goals and objectives so that essential programs receive the necessary minimum resources to •function and non- essential programs can be examined f:r need and desired level of service. i 1 61 s Incorporating new technologies into the program operations to multiply the effectiveness of the program resources. '--.Amplishing these tasks within each department is normally part of a depart- mental manager's responsibilities. City administrative staff must balance each depart- mental manager's recommendation against the available city resources. Occasionally, however, it behoves the departmental manager and the City Administrator to conduct a complete examination of departmental objectives as well as the program structure and operations designed to meet this objectives. The purpose is similar to a physical examination--to assess the state of health and to prescribe corrective or preventive action. i The purpose of this study is to examine the Department of Public Works for: Effectiveness in achieving program results. Efficiency while carrying out programs. This report attempts to idrntify any shortfalls in both of these areas and also makes recommendations to improve the of€e,,:tiveness and efficiency of the departmental programs. i I WO 1 W 1 !w i 2 THE STUDY WAS CONDUCTED BY INTERVIEWS AND DOCUMENT ANALYSIS The team interviewed over 27 staff members in the Department, including all I management staff, division chiefs and most section chiefs. Interviews were also held with: The City Administrator and nine of his departmental managers and administrative staff. Five Council members. Five managers of similar public works programs in two neighboring communities. A list of City interviewees appears in Appendix A at the end of this report. The team also collected and reviewed numerous documents, including: Budget submissions, financial reports, and audit reports. Manageirent progress and annual reports. The General Plan and Capital Improvement Plan. Personnel salary and hennfit reports. Chronological memoranda files, special studies. etc. i i 1! 1 d� 1 - • i 1 • -�_-- --�i 1 + 1 •1 � i t l i i 1• • 3. THIS PIEPORT PRESENTS OUR FINDINGS, CONCLUSIONS AND PRELIMINARY RECOMMENDATIONS FOR THE STRUCTURE AND OPERATIONS OF THE PUBLIC WORD:`' DEPARTMENT The study team prepared interim reports outlining findings, conclusions and recommendations and presented them to the Department on March 31 and May 4, 1978. This report incorporates Bauch of the descriptive material presented in these interim reports and presents our final conclusions and recommendations. The report is orgar_�Ted into seven chapters. A brief description of each chapter ir presented below: I Chapter !--provides an introduction to the Study. Chapter II--presents a description of the present organ zataon, operations and staffing of the department. Chapter 1II--provides our conclusions concerning the the management and administrative procedures employed by the department. Chapter IV--presents our conclusions concerning the engineering functions of the department. Chapter V--sets forth our conclusions concerning main- tenance activities and field operations by function. Chapter VI--contains our recommendations for improving the organization and operations of the department. Chapter VII--offers a suggested time frame for imple- mentation of the recommendations contained in Chapter VI. -4- t • 1 • a •I 1 • 1 10 1 t • 1 1 i I 1• I • Exhibits containing supporting analyses are contained in the Appendix. They are referenced individually where appropriate in the text of this report. 4. FINDINGS, CONCLUSIO..JS A14D RECOMMENDATIONS HAVE BEEN PRESENTED DURING THE STUDY TO A STEERING COMITTEE COMPRISED OF KEY PUBLIC WORKS ADMINISTRATIVE STAFF The study team met with the full Steering Committee threetimes over the course of the study: March 9--to explain the purpose and methodology of the study. March 31--to present findings and preliminary conclusions. May 4--to present conc.Lesions and preliminary recommendations. i The remainder of this report presents uur final conclusions and reermaendations concerning the organization and operAtions of the Public Works Department. a 10 R (o s , ft r ! i i• ; # r of • r ri Ti. PRESENT ORGX4I2ATION AND OPERATIONS � I � I �j c • s f• t a • i i • i is ; • i •i t • i c � i � II. PRESENT ORGANIZATION AND OPERATIONS � This chapter presents an overview of the organization and the aa.igned responsi- bilities of the Department. It also presents an analysis of some trends and comparisons in the following areas: Staff ing dorkload Expenditures Later chapters of the report will present our conclusions concerning management practices and operational efficiency. 1. THE DEPARTMENT IS PRESENTLY ORGA.'NIZED INTO THREE MAJOR OFFICES REPORTING TO THE: DIRECTOR OF F[IBLIC WORKS The Department of Public Works is responsible for the development and maintenance of all improvements in the public right-of-way. Underground improvements include sewer, storm drain and water lines. Surface improvements include streets, curbing, sidewalk and traffic installations, as well as trees, landscape and public building_. Design installation and maintenance work in these areas is done both by contract and by force account. While the organizational size has almost doubled over the past ten years, the present organizational structure has changed very little. In a few cases, w:isre new responsibilities and staff have been added, new divisions have been created out of existing divisions (i.e. landscaping) . For the most part, however, the structure and responsibility asEignments described below, are very similar to :hose in place a decade ago. The Office of the Director contains 8 staff with management and administrative responsibility for all design, development and maintenance functions assigned to Public Works. Some additional staff are CE?A funded positions assigned to this office � to perform clerical duties and special assignments for engineering and administration as well as public information services for the front desk. The three major office; under the Office of the Director are Engineering, Water and taintenance, as shown in Exhibit I, following this page. Engineering has a - staff of 39 organized into two divisions, Design and Development and Traffic Engineering, �I each with division engineers who report to the City Engineer. Design. and- Development -7- ...� rJ OF os •ueem Iff"ewe.re�rw Ate" ON N101f►�O 7WFIC Mlst eeWLOIWMf MMMreeMMMt r."e "WO LMGM N!retOFeleMT 11w111N1iifN111011 eleMltOOa MYHieI M/ew� INif+l�MMMtt WNfeMIAM<t WOUTT �* e0lafrtlllTlOA IwOM.Tt.�Mla �fel'MeUfMee Mleef1011 r�waT I �sounCu M1011 Ah0 efre[T TMe rOwfOWICf ffO0YN1AiM t" - 1TMffYeetAIMM"e W+NTI MNCe :Aamsba r. 0OcwliwCu t�ra+t afwFr LMR mom A" TMw pumat3Mem O �l a�os +MlAfIw-11 � P"Mol OeleCreR M10MIfeelil� Iffsa Nieft F1�CATN11 l L Mit76Me1 Fl/f f+tt�ut PANOMra ai'�'Mwl weel'�Fwe 1fOCr ITAIM1a �MkT MTIM�ee ewe .Wr f I, Is the largest With 31 staf€_ 2ts responsib1X!1-Ie= include= Design and snecifir_ations for sewer, storm drain and street surface imps cements. Plans checking and contract administration when these and other City public improvement projects are designed and constructed under contract. Right of way acquisitions. Construction inspection of subdivision, cash contracts and permit work, involving right-of-way. Survey support. Traffic Engineering is staffed with 8 positions and hays design, development, maintenance and research responsibilities for all traffic control related issues involving street design, signing, signaling and lighting. The second major office, Maintenance ?administration contains 185 positions, 117 of which are permanent positions. This office has five major divisions, two of which primarily conduct maintenance functions in a service capacity for City forces, while the remaining three maintain underground and surface (except water) facilities. These divisions are mechanical and building maintenance, and sewer/'storm drain, street, and street tree landscape. A brief description of assigned reeponsibili.ty for each division is provided below. mechanical maintenance Mechanical and equipment repair mechanical and equipment preventive and safety maintenance fabrication of parts and equipment Sewer and storm draii maintenance sewer lift station and line maintenance storm drain pump station and line main- tenance Building maintenance - building -.nd street light electrical maintenance - civic center and library physical plant supervision - building, vehicle, street and sign painting and body repair - building and public facility carpentry, plumbing, and masonry - stores operation -9- � c ' i t i i 1 ii 1 ! i • � i '� i f '• i • t �' i • 1 i +! � Street, tree and landscape maintenance tree trinming, watering, treataaent, planting and extraction madian and roadside landscape maintenance tree and 1andscape design, plans check and inspection The third major office. Water, has .a total current staff of 39 with combined responsibilities for design, development and maintenance of all water facilities. The engineering staff develops designs and specifications, checks plans and conducts inspections. The field operations staff are responsible for water duality, production, distribution, including line installation and replacement and service installation, and metering. Z. PUBLIC WORKS STAFFING LEVELS HAVE KEPT PACE WITH CITY STAFFING LEVELS OVER THE PAST FIVE YEARS AT AN AVERAGE ANNUAL INCREASE OF .%. While permanent positions have remained _elatively constant over the past five years, the total staffing level has kept pace with the growth in total City force size. The number of permanent positions authorized peaked at 165 in fiscal year 1974. The following year, this number declined to 157 and ha.= remained near thi3 level through the present fiscal year. Exhibit II, following this page, shows the -10- EXHIBIT II HUNTINU'TON BEACH DEPART14M OP PUBLIC WORKS AU THORIZIen POSITIONS BY FISCAL YEAR Percent Avorago Annual 1972 1973 1974 1975 1976 1977 1978 Increase I. CITY FORCE TOTAL 699.0 770.5 675.0 901.75 889.50 950.0 1,051.0 II. PUBLIC WORKS TOTAL 155.0 168.0 202.0 197.0 225.0 244.5 276.2 12.7% A. ERGINEERING. !MAINTENANCE ADMINISTRATION Pernment Positions 133.0 139.0 165.0 157.0 157.0 154.5 155.2 C:TA FTE (end of year) - - 3.0 5.0 26.0 47.0 77.0 TOTAL: 133.0 139.0 168.0 162.0 183.0 231.5 232.2 12.2% AS S OF TOTAL CITY FORCE: 19.0 18.0 19.2 18.0 20.5 21.2 21.9 B• WATLR Perarnent Positions 22.0 29.0 34.0 35.0 42.0 43.0 44.0 15.5% AS • OF TWAL CITY IOAI;m 3. 3. 8 3.9 3.9 4.7 4.5 4.0 * INA Estimated staffing treads since fiscal year 1972. It also sharers that since fiscal year 1974, the utilisation of CETA positions has increased dramatically each year to reach thr. present staff size of 77 positions.. Men totals are cospared to city wide staff level, Public Worku Department ataffing has remained at a rola`.:ively constant 20% of the force. The growth in the use of CETA staff is consistent with past Council policy to substitute annual requests for permanent positions with CAA,-funded positions as an economic mea- sure. Problems this practice has caused will be diacussed later. 3. PUBLIC WORKS EXPENDITURES FROM ITS GENERAL FUND BUDGET HAVE TICREASED AN AVERAGE OF 16.3% Ai10i MLLY OVER TEM (PAST gIVE YES The Department receives approximately one-half of its operating revenues from the City General Fund. The other half are generated by and devoted exclusively to nauicipal writer operations. An analysis of the General Fund expenditures shows that, after adjw:%=entz, departmental expenditures for salaries and benefits, operations and %ipital outlay have increased on an annual average of 16.3%. Exhibit III, following this page, shows expenditures beginUng with fiscal year 1971 after adjustments fr.-- accountingcbarges and charge back credits are made. The exnibit shows: A steady increase in the portion of expenditures devoted to salaries and bemefits, reflecting increased staff and their salaries. -11- � i +_ �r- ... .5+j '•' ,f �j�,;. �,'� �r� ,r., !y ti� ..• fey pa. /•. t !-r i c ,/, d h .. c: +1 Ai` �y�ljTF�f 4• r t ! 5 s k a F= a 13 10 ell OEM= .ry K t i st r • 2 N !. Jim s a i — i I ►' - 4 (1) The Department Assumes Maintenance Responsibiitiies And Costs As Improvements Are Installed In The Public Right-Of-Way Maintenance workload has grown considerably a3 public improvements are times.. added to the municipal inventory. Gauging zhe growth in inventory is difficult, however, because priority work demands in both engineering and maintenance sides of the operations have displaced time for record keeping tasks. Appendix A-5 shows the known work units accomplished for selecred items from 1973 to 1977 Exhibit IV, following this page, shows that most of the force account workload falls in the areas of design, inspection and maintenance. The one P r-�r major exception to this pattern hae been the Ash tree program, w4ere signifi- cant amounts of maintenance manpower have been diverted or added to rebuilt? rbs, sidewalks and streets. The exhibit also shows the known inventory r tax each City-owned improvement in 1973 and y p presently. Where comparisons «_E can be made, growth appears moderate. These figures do not shcw, however, that since many of these improvements were built around the same time, replacement and repair demands for each type of facility fall simultaneously = r= on the work force. t' EXHIBIT IV HUNTINGMA B ACH e DEPARTMe OF PUBLIC VORKS SURVEY Or WORK MPONSIBIL.ITIES FOR CITY-OWNED INPROVEMTS rorx u��ut+slstL.iTY " installation or CITY-0WNXD FULD Design Construction Naintewmce INV£N"I" QUAN2'ITY Farce r"co sorce IMPRMLA S account Oontrsct Ao:oount Contract Account Contract I977 1478 MT Streets Yes No Yes* Yes Yes No 336 -s5 Milts Star= Drains Vas Yes* fes* Yes Yes No 220 L. miles Sewrs Yes Yes* No Yes 7e8 no 280 L. stiles Puap Stalirns you No No Yes you No 67 Structures Water mains Yes Yes Yes* you Yes No 395 410 Hiles Water Services Yes No Yes* Yes Yes No 38.250 Servican Public Buildings No Yes No Yes Yea Yes* lag 3tructurea Traffic Signals Yes Yes No you Yes* Yes 57 66 Signals Street L.iynta Yes Ho ws* Yes Yas he 600 1.000 Lights Street Trees Yes Yes Yes* Yee Yes to 30.000 36.100 Treea Landscaping 'o,� Yes Yes* Yes you No 55.000 1.300.000 Square feet * These cervices are infrequent or limited. (2) Staff Requirements For Maintenance Activities Have Grown 70% During The Past Five Yearn Staffing patterns for both the Water and General Fund programs have changed dramatically during this period to keep up with the rapid installa- tion of public improvements t_hreugh the bonding program. Exhibit 11, follow- ing this page, shows the shift in staffing resources allocated to Engineerinq and Administration, and to Maintenance activitiest by function since 1973. Staff resources devoted to maintenanca activities have grown at three times the rate of those devoted to engineering. Much of the growth can be attributed to CETA staff performing lower skill types of activities, but all maintenance supervisors agree that, for the most part, CETA staff have helped them to meet the workload demand. (3) Maintenance Expenditures Now :.ccount For A Small Portion Of The Water Budget And A Large Fort on of The Public Works General Fund Bu get While the two budgets are roughly equal in size, their allocation: for engineering and administration activities and for maintenance activities -1�- EXHIBIT v HUNTINGM SEACH * DEPAR'n.Wre OF PtMLIC WORKS GROtM OF €NGINE£RING AND MAINT'ERWE STAFF RESOURCES AUTHORIZED POSITIONS PERCEXT CHANGE FUNCTIONAL AREA 1973 1978 i ENGINEERING* Administration 3 6** Desi;a/Traffis 33 35 Tree/Landscape - 2 Hater 3 3 TOTAL 39 47 MAINTENANCE AND FIELD OPEPATIONS* i Administration 2 5 Building 7 45 Street 45 53 Sewer 9 13 Tree/Landscape 23 44 Traffic/Street Light a Striping 7 7 vehicle Repair/Painting 12 17 Water. 24 39 TOTAL 128 224 +70.3t * Includes permanent and CF'TA positions. •* Excludec CETA parking control task farce. C� 1 01 1 a I t t 10 1 41 1 * 1 t ® 1 are dramatically different. As shown in Exhibits VI and VII, following this page: Approximately 9.4% of the water fund budget i3 allocated to engineering and administrations and 10.9% is allocated to maintenir.^e. The remainder is allocated to production, capital outlay and taxes, fees, leases. etc. Approximately 234 of the General Fund budget is r allocated to engineering and administration and the remainder to maintenance. An additional $224,000 has been budgeted for capital outlay not shown in the exhibit because its program alloca- tion is not yec known. Mosty however, will be spent on maintenance equipment. (4) A roximatel 85% of the General Fund Operating Budget Last Year Was Allocated To minimum Ma ntenance Costs An analysis of the operating budget for all programs except water shows that the majority of the budget 13 allocated to "fixed" costs and, as such, is not subject to dramatic reduction without reducing service levels. This total was arrived at by estimating on'y costs for minimum contractual amounts, safety equipment and utilities. Exhibit VIII, follow- ing Exhibit VII, shows the fiscal year 1977 operating budgets for the Corporation Yard, Engineering and Administration and their combined totals. r'1 -15- � !x��idrr vt HuniinYlun Beach Deperlmeni of!'ON Works DISTRIBUTION OF AUTHORIZED EXPENDITURES BY SERVICE AND NON SERVICE FUNCTIONS FOR PUBLIC WORKS WATER FUND ' FIsca1 Yew 1478 TOTAL BUDGET $5,351,900 ENGINEERING AND ADMIN. 9.4% PRODUCTION CAPITAL OUTLAY 23.7% MAINTENANCE 10.9% TAXES, FEES, LEASES, DEPRECIATION. BOND REDEMPTION, ETC. 44.9% iiXiielliy'V!i fluntinig-an ilrach Drv.-:meat of Public Works DISTRIBU"r iON OF AUTHOR:2ED EXPENDITUM TOTAL PERSONNEL AND BY FUNCrION FOR:'UBLtC WORKS • OPERATING EXPENSES GENERAL FUND BUDGET $4,896,200 Fiscal YenI978 STREET TREE & VEHICLE & LANDSCAPE EQUIPMENT MAINT. MAINTENANCE 12.0 &8% 76 12.9% STREET MAINTENANCE SEWER AND STORM DRAIN BUILDING MAINTENANCE MAINTENANCE TRAFFIC SIG,STRFE T LIGHT b 2B 5� �'�+• SIGNING ADMIN. (UTILITIES) 3.6% ENGINEERING& ADMINISTRATION I 2&0% c� FX11181T V111 Huntington Each COR!gRnTtON VAR O Depattment of Public Work. DISCRETIONARY 91.243,747 DISCRETIONARY EXPENDITURES FROM a.a% THE PUBLIC WORKS GENERAL FUND BUDGET ' MATERIA ,FOR Fiscal 1977 OTiIER OSPARTMIMM >imm"EVIt"a AND ADINIMMUM i1iE.1?i MINIWJM CONTRACTS UTILITIES UTILITIE>; O:SCRETlONARY •:.:;{;�: 677i M141MUM SUPPLIES 10% SIJMLiE>: .1.;;~• MINIMUM CCNTRACn � 315% FIN 9Lsai Ma 019CRETiONARY ::tip:.1tit•.L •`•'... i MATERIALS FOR �`.::ti:� ;• �z:.•, OYI4ER OEtARZ�A9EplTi ,a aXXX \j\ MINIMUM COWIUICTS t3,�Ifi urunn 43L1X MINIMUM EUr?lm 314% ! �I ! ! ! ! l� ! ! ! t I i 8 The portion of expenditures over which the departm:-nt was able to retain discretionary spending contro). is ahowa in the shaded portions. Dollar amounts �.or each diagram are shown in Appendix A-4. . S. COMPARISONS OF PER CAPITA MTENDITURES WITH OTHER SIMILAR SIZED CALIPORNIA CITIES SUGGEST A BELOW-AVERAGE PER CAPITA EXPENDITURE FOR PUBLIC WORKS IN HUNTINGTON BEACH California citie.: w-:.th population sizes ranging from 100,000 to 250,000 spent a mean amount caf $54. 37 per capita for engineering, administration and maintenance in 1976. The total expenditure averaged 21.6E of the city budget. As shorn in Exhibit IX, following this page. Cities in Southern California simi-ar in size to Huntington Peach tended to spend less per capita and proportionately less of the city budget than the statewide averPne. Anaheim, Torrance and Garden Grave all spent between $18.61 and $44.61 per capita and 8% to 18% of the city budget. For similar sized cities, Huntington Beach tended to Spend both less per capita and a smaller percentage of the city budget. Caution shovild be used when interpreting these figures, as bonding ordinances and accounting practices may account for large differences. It is not known at this time, for example, which of these cities may have included water expenditures. -16- ,r ,� 1 i � t is 1 � i � I i ` � e � � � � !� ' i► � EXHIBIT rX HUHTINGMN BEACH DEPARTV_'9T OF PUBLIC WORKS w FMU EXPENDITURES FOR PubLIC WORKS FI£rAL YEAR 1976 TABLE V Expenditure Of Total City* Per C%pita- City Budget CALIFORNIA Cities up to 50,000 54.45 23.6% t Cities 100,000-250,000 54.37 21.6 Anaheim (196,382) 44.61 18.0 i f Santa Ana (179,499) 22.74 11.4 Fresno (177,900) 62.19 19.7 Riverside (154,560) 56.31 24.77 -Torrance (138,500) 19.47 8.2 Garden Grove (123,227) 18.61 13.0 Costa Mesa (71*500) 26.10 13.0 Grange (86,100) 29.03 13.5 Huntington Beach (157*800) 23.71 16.1 (Adjusted) 22.94 15.5 '� 00 * Financial Transactions-California Cities, State Controllers' office III. MNAGEMWT AND ADMINISTRATioN ammuSiONS i MANAGEMMT AND ADMINISTRATION Ly,% iCLUSIONS This chapter presenta the findings and conclusions concerning the management I and administrative practices of the Departmnt. Conclusions concerning department- wide practices are organized into the follOwing major subject areas: Planning Budgeting Information Systems Staff Management Space Utilization Findings and conclusions concerning specific practices in these areas as they affect individual operating units will he pre$ented later in this report. i i -17- 0 ""�--"- -a__ _ i� • 1. BETTER PROTECT PLANNING Atli) MANAGEMENT IS NEEDED TO ACHIEVE PUBLI_PLANS IN A Tfi ELY AND COST "FESTIVE MANNER II4lPROVF.MENT The rapid development of the city during the past decade has placed an extra- ordinary demand for public improvements on the Public works Department. At the same time, the changes that have taken place in the municipal environment have made the installation of public improvements a :more complex, time-consuming process. Conse- quently, the Department has a large inventory of improvement projects that appear t pP o be taking ever longer to reach the contract readiness stage. (1) The Department Has An Estimated Five To Seven Years Of Improvement P05ject3 In gam! The Department presently has 8.tiE'0 SO major improvement projects at a total estimated value of over $13 million. The type, total value and staff available to design and manage these projects are as follows; i 23 street projects; $9,210:000; 4 staff available • 19 storm drain sewer projects. $3,3UO,Ooo, 3 staff • 8 miscellaneous city Projects, $930,o0o. i i -18- I The Department proposes to complete in F.Y. 1979 1d,4858,000 worth of improvements: Six street pro j ects--$2,075,GT?-,•. • Twp.lvc: storm drain and sewer pro jects--$2,370,000. One miscellaneous city proje,:t--$40,00<<. Past experience, however, suggests that t�,is is an optimistic figure. A review of the project records revealed a practice of continually requesting extension of proposed completion dates for projects utilizing county AFIFF monies iover four aid five year periods. Only two projects were approved from this funding sour^e for FY 78, one of which was a re-sub rission. (2) Projigct Delays Have Proven Exceptionally Coo3tly Original cost estimates for delayed projects such as the Edinger Avenue and Center Drive Freeway have risen 3008 and 300% while in pending status, primarily because of land and construction price increases: Plantington Beach '_and vLlues have inflated as .much as 18% to 24% annually. -19- �. _ S• Some construction materials and supplies have increased as much as 30% annually. Construction labor costs have risen 10$ to 15% annually. (3) Some Delay Is Unavoidable I Several factors have made project construction delays necessary, Ammng these are Making required Federal and State impact assessments. More right-of-way acgVisition time- because of greater numbers of property owners. More interagency cooperation and lead time to relocate existing utilities, • Continuing development on or near the planned improvement locations. (4) Degartmental Practices Have Contributed To Other Belays I A number of management practices have contributed to delays that increased project costs.. Among these are; Prior to December, 1977t the department designed and contracted for public im provements mprovements without a recognized Capital Improvements Plan. Unclear priorities made scheduling and coordination a difficult task in Engineering. -20- Detailed tasks and tine tables were not developed and monitored by management. Project assignments were made by the Director directly to engineering staff, disrupting ongoing design efforts. Prior to last year, the Director was directly involved with the project engineers in right-of-way acquisition. Differences over fair appraisal values resulted in: projects initiated and suspended whkp acquisition costs were found to be C-i high settlement delays because of unprofes- sic,nal appraisals on desired properties delaved settlement costs in some vases apparently higher than the original difference because of high land value appreciation I, reappraisal and redesign after one year because of further development, apprecia- tion and inflation The case for expediting right-of-way Acquisition can be seen more clearly below. The real property agent presently has a workload of 132 parcels. The Public Works share is approximately 50 parcels. The estimate,�Z market value of these 60 parcels is approximately $1 to $1.5 million. Annual appreciation of 221 on this property is estimated at between $220,000 and $330000. Two-thirds of this coat, or approximately $145,000 to $213,000, are to be carried by the City, the remainder by the County. Thus each year of delay in right-of-way acquisition for active projects will cost the city an estimated $145*000 to $218#000. Each parcel can require months of work and agents can normally carry 15 to 20 parcel negotiations at any one time. Departmental managers feel that some of these practices are justified because they have prevented speculation and excessive cost to the city. Generally, however, time is not on the side of the city because of the I combination of high a:inual appreciQ.tion and inflation. (5) Mana ement Attention lust Be Focused More ShaMly On Prc ect Management Toolsp contract management TRE n ques An Q t-O -Way Acquisition To Auo a Future Delays An Cost Increases The recent addition of a Capital Improvements Plan and a real property agent to the resources of the Department reprepent t%o major improvements in the staff capability to efficiently execute projects. Further steps, however, are necessary; Specific project priorities and timetables need to be set and monitored. Engineers need to become more skilled on and dedicated to contract management and spend less time on design work. • Right-of-way resources should be supplemented to expidite the award of bids. J -22- t t t ®r to These steps are essential if the city is to execute its recently a roved AHFP projects withir- the new two '- PP p_ � year limitation. The Edinger- Bolsa-Cnica Wiest and the Yorktown-Main to Delaware projects must go to bid by mid-19RO if the city is to retain county participation in these projects. 2. THE PROGRMI STRUCTURE AND ACCOUNTS STRUCTURE SHOULD BE MODIFIED To IMPROVE COST C014TROL The concept of pzoaram budget management as applied in the municipal environment has two purposes; a) organize planned expenditures into defined program activities so that anticipated outlays can be compared P y pared to city objectivest and by allow comparison of planned and actual expenditure: over time. The I:untington Beach program account struct� re has becon.r. .:�o fractionalized and unbalanced in some cases that: i t is almost meaningless r i glass a� - � management tool and makes derivation of unit costs of work almost an imposs .-le task. (1) The ProSram Structure Needs To P Collapsed Into A More Manageable Number. Thnre are presently 48 account:; sane of these can be related to organizational lines, some building and vehicle groupings, others represent contingeacy funds and overhead accounts. Maintenance Administration account logic is particularly confusing. A breakdown of account by functional grouping follows. -23- W1 I s 1 1 3 1 19 1 0 1 � 1 1 • Engineering and Administration-6 • Maintenance Administration--33 - administration--1 - r-Y--chanie:al and vehicle maintenance----;.s - building maintenance--15.5 - Street maintenance-5 - street tree and landscape maintenance-4 sewer and storm drain--2 water--9 The prinkary rationale for the present program structure is to preserve accounting integrity rather them to show true p�:ogram costs. New "programs are established for this purpose even when two progro.-n3 ire interdependent. Examples inclueez • Pool car laintenance was broken out of vehicle T,lai.n- tenance in fiscal year 1977 even though the same staff maintain the Equipment. Parking control was identified separately for fiscal year 1979 even though the program funding level is dependent upon the street sweeping service 3e.-e1. Emergency repaija for heavy aquipn:ent are budgeted in "Building Maintenance; Emergency Repairs" even though a separate budget exists for routine heavy equipment repairs. -24- Expenditures that should be allocated across water program accounts have bEen placed in a residual account called "Other expenses". Prn3rams should be reorganized into discrete "cost centers" that will reflect full cost of operation in financial reports. Distinct funds within I one Program should be separately accounted for in the report. (2) A _Contingency Account Is deeded For Ma ior Eaui ;meRt Failure And Over The Department presently must annually budget funds in water produc- tion, building and equipment maintenance for unanticipated equipment failure and anticipated major engine overhauls. Under this arrangement the money becomes a target for budget trimming or must be returned at the end of the fiscal year if not used: • During peak usage in summermonths, water production pur:2s cannot be shut do-#M _`or overhaul. Funds set aside in the past for this purpose had to be returned because they were not expended by June 30. • when equip-ment f-ilures occur, the department rust barrow from o..,,nr accounts tc make e.aergency repairs antil Council approval can be obtained for reimbursement. A single contingency account will permit major overhauls when convenient and repairs without numerous accounting transactions. An end of year accounting for this fund should be Provided r-nn t ._wally to the Council. (3) Objects Of Expenditure In The 02eratin2 Expenses Of Each Pro ram Account Have Pro i erate An Shou Dn Simp i© `s%e department presently uses 38 different objects of expenses for line items) for operating budgets alone when projecting expenditures. This not only makes budgeting and accounting overly 01---ilex but creates inconsistencies: 8 objects are used for supplies, two of these are such items as film and fir:, aid supplies. • 3 programs have 9 separate objects for types of materials consumed; street signs, str&r--: and curb refinishing, and street tree landscaping materials. There are 4 contractual services objacts, one generai and three for refuse, janitorial and printing. Bonks are distinct from periodicals. One object is for miscellanous; 502 or 65, 723 of the authorized operating budget for Traffic and Engineering appears under this item. i The distinction between materials needed for new installa- tions ver-sus replacement of existing improvements is sot clear; "new" mterials should be included in capital outlaya and replacement materials should be included in operating budgets. Pni'ding maintenance is spending con- siderable ----,aunts under itsoperational budget to make capital improvements to existing facilities. The 38 objects of expense now in use should be collapsed into a manageable 6 to 14 objects to be used for budgeting and financial reports. Sub-detail expenditures belao; the major objects should only be used where necessary for special fund or grant accounting. (4) The Shift Of Utility Budgets To The Pion-Departmental Budget Represents A Posit ve interim Ste To Cost Accounting The past procedure of budgeting utilities as objects of expenditure evolved ever the past two years as part of an effort' to centralize utilities accounting activities- Budgeting utilities directly into maintenance programs is not a good management practice for several reasons: Utiliti:s represent fixed c:Ijsts that cannot be managed by program budgeting at loaner service levels. -27- 4 Y���pc public Works cannot set priority utility service levels that impact the operations of other depa_..ments. • Uti'.ity expenditures budgeted into public Works now represent 43% of their total operating budget, providing • a distorted picture of operational costs of the depart- The to the public. • The potential for Council misunderstanding over large uncontrollable increases in utility costs buried in the operating budget jeopardize the integrity of the other departmental prcigrans. They have recently been budgeted into the Non-departmental Budget so that they may eventually be aggregated with other maintenance expenses and re-entered into program budgets at a flat rate. (5) EQUi ment Budgeting Should reflect Need And alternatives Several additional pieces of information are needed to make informed decisions on equipment requests: • Whether it is intended as new equipment or as a replacement for existing equipment. • Justification of need (even if for replacement) . • Anticipated usage by frequency and program. Staffing implication's (i.e. reduction through improved efficiency or additional staff to operate) . Cost of alternatives to purchasing new, such as cost for similar used equipment, leasing alternatives. Imnual maintenance costs and expected resale value of equipment replaced. Expected life of the equipment. The Public Works Department has invested close to $3 million in vehicles and equipment and annually expends over $.5 million to maintain their own equipment and vehiclea as well as those for several other depart- meets. Huntington Beach has one of the better-equipped fleets in orange County, but lacks sufficient resources to maintain it. Correcting this imbalance should begin with more careful equipment and maintenance budgeting. t • i i • i l • 3. MAJOR IMPROVEMENTS ARE HEEDED IN DEPARTMENTAL MhNRGEM Wr INFORMATION SYSTEMS Under the present organization, the Street, Vehicle and Building Maintenance Divisions and the Engineering sections perform some form of project or cost center accounting functions. In some cases# however, the Department is held back from implementing operational economies or accounting for true program costs because it lacks a cost accounting system. For example: The costs of sweep:.ng prior to street striping and sewer/ storm drain line cleaning by vactor are carried under the street cleaning program. The cost of labor and vehicle u3age to repair buildings and vehicles for other departments is carried under these Public Works maintenance programs. Equipment costs may be duplicated in sewer and storm drain operations so that all water maintenance expenditnres can be monitored under a separate organization. The department is generally behind other public works departments in similar sized cities in its development of management information systems. Three systems applications are discussed in this section: Financial reporting. -30- I Work reporting. Information storago and retrieval E13 Monthly Financial Reports Are of Limited Usefulness To Program Managers -- The monthly reports produced by the Finance Bepartment provide only total credits by program and individual debits by program, type of expendi- ture and cost objective. The department c.perates several programs that require fund accounting, shoving revenues by source and type and expendi- tures by project, type and cost objective in the following areas: Engineering Building maintenance and stores operations. Vehicle and equipment maintenance. Vehicle replacement. . Utilities. The account structure cannot now accommodate or provide the type of information needed to manage these functions. Consequently: Only the cost of materials shown on work orders per- formed for other departments are charged to user departments. Labor and vehicle operation costs are compiled but not charged. -31- • Few of the costs for vehicle maintenance are charged back to departments despite the fact that complete records are maintained on each vehicle on feel, labor and parts water Division, which budgeted $20,000 in account 920703 for this expense, has only $949 in charges as of 2/16/78. the City spent a considerable amount of money on an automated gan dispenser at the Corporation Yard to maintain accurate fuel consumption records • Reimbursement by County AHFP funds for des-gn wory in engineering are not shown under the same"L program account as expenditures. (2) The Capacity Of The De artment For Internal Financial Anal sea NeedsNeedssTTo use Expanded The relative neglect of management attention to this area has led to several imbalances in cost allocation and control: Assessment fees are not examined frequently enough to insure costs are not carried by other revenue sources. - Sewage fees Were last set in December, 1959. i -32- s t t t t ! t is t ail There is presently no fund to repair and replace sewer i lines both Newport Beach and Santa Ana recently established such a Alund i Revenue generating opportunities from real property management of surplus city properties has not been i investigated. A 15% "in-lieu" tax on water facilities and support appears excessive Newport Beach charges 10%r Santa Ana 10.7% �-enerally incomplete data collection and analysis places severe limi- tations on the ability of program managers to effectively control and minimize casts. For example; Engineering project hours are not routinely summarized so that project managers cannot compare actual and planned progress and make budget and workload adjuctnents. Vehicle maintenance records are not routinely analyzed for excessive operational costs. Equipment and building shop fabrication costs are not routinely examined to compare these costs against replacement or new purchase costs. I � I l , -33- ,.a Complete time accounts of all employee hours are not maintained to guard I� g against excessive time against work orders. to derive per sunit costs ofproduction, and to provide a basis for comparison of force account to contractual performance of work. 3 .. 1( ) Work Assig nment And Reporting Procedures Need To Be Standardized Work scheduling and reporting procedures vary considerably from unit to unit throughout the department. The amount and type of work scheduling varies according to the nature of the work and the supervisory styles of superintendents, foremen and crewleaders. (3.1) Preventive Maintenance Schedules And Work orders Are Not Uniformly Applied • Not all units responsible for preventive main- tenance have developed schedules. Some maintenance schedules are cyclical or based an work orders when they should be based on need surveys. Work orders are used by: - supervisors to direct attention to maintenance or survey or construction work l i -34- � � ® � i ® i ! i !f1 i } i i � i ii i � � i i i • I i � i - other departments to request capital improvements, repairs or routine maintenance crewleaders to document their own j work 1 (3.2) Work Reporting Of Units Of Work Accomplished Is Irregular And Not Used By Management Monthly reports are irregular. Workload items: are excessivc in number sometimes duplicative - inconsistent from year to year not fully reflective of work performed Workload .indicators need to e b refined in content, regularly reported and summarized, and routinely compared against plans to be a useful management tool. -35- r 1 i 4 1 i I ; 1 !I f 1 i 1 {i ! !1 1 i i • 1 i� (3.3) There Are No Procedures For Compiling And Analyzing Staff Hours i Productivity and cost effectiveness analyses are difficult to monitor because of the absence of a routine employee time reporting system. Some manual records are presently kept in the following areas: Engineers maintain AIHFP project logs. Vehicle servicemen maintain records of repair time per vehicle. Building maintenance staff report time spent on preventive maintenance and work orders. This information, however, is not used to manage operations. (4) Information Storage And Retrieval Procedures Need Improvement _ nt Engineering, in particular, has neglected to develop and maintain a reliable and convenient files structure. Contract files are maintained chronologically, rather than Ls subject. Also, there is no indexing system except by City-assigned project number. 1 -36- As-built plans were never consistently drafted and Uled. Specific requests from developers for under- ground utility locations, require a multi-step search that may produce unreliable answers the department has recently requested the Council to approve consultant ser- vices to develop "infrastructure" atlases for sewer and drainage line location and capacities The department has recently initiated actions to improve this situation. Budget outlays for the necessary storage and retrieval systems have been requested for next fiscal year. (5) Automated Data Processing Offers A Practical Solution To Departmental I T-formation Needs i The department presently does not have the staff capacity to meet all of its management information needs through manual collection and analysis. Alter- native automated applications are presently being investigated by departmental _ s managers. The Maintenance Division Engineer has recently proposed to the Data Processing Steering Committee a feasibility study for automating certain main- tenance scheduling and work reporting functions at the Corporation Yard. Some conceptual eesigns and applications for engineering and maintenance pro- grams are presented in Chapter VI, Recommendations. -37- + �► � � � c r• a � � .� � a � i i s t s i s s a s i � o 4. THE PUBLIC WORKS DIRECTOR SHOULD DELEGATE MORE RESPONSIBILITY TO HIS MANAGEMENT STAFF � I The position of nirector of Public works requires that considerable time be spent an external relationships with administrative staff? Council members, outside agencies and corimunity groups. The director estimates that 60% of his time is required for these activities, which is normal to that position in mosq- cities. During the remaining 40%, however, the Director is actively involved in routine decision-making and cork assignments. (1) All Departmental Correspondence Is Written For The Director's Signature I *.nd Is Signed By The Director Or The City Engineer In His Absence Ili The true measure of the extent of the Director's involvement in routine departmental activities is a yardstick applied to the office in-box. The Public Works Department daily processes thousands of pieces of paper. All i correspondence :rust cross the Director's desk for his signature. This i has caused several problems. During periods of required absence, the Director's office can become a bottleneck for correspondence. dFA 1 The Director's signature on correspondence channels many inquiries and responses directly back to the Director, who may not be fully informed on previous actions, perwit conditions, negotiations, etc. It discourages clear assignment of responsibilities for various projects. (2) The Pole And Authority Of The City Engineer Is Unclear Another measure the Director's involvement in day-to-day activities is the unclear role of the City Engineer. City Engineers typically share administrative responsibilities with Directors for all or a major part of the organization. The present City Engineer has extensive experience in 'j Public Works administration, but has not had an opportunity to fully apply Ithese skills. He appears to have some responsibility but no authority to handle a segment of the administrative affairs of the Department. The Water, Maintenance, Administration and, at times, the Traffic Divisions, continue to report directly to the Director's office. These managers and the Director have defended this practice in the past because the City Engineer, who has occupied his position for two years, was not fully informed about projects preceding his arrival. i g t i t f •f 1 ! f f 1• E •t 1 ® ! t • ! to (3) Field Staff Would Like To See The Public Works Director In The Feld More Often The physical separation of City Hall from the Corporation Yard and Water Division Yard has encouraged a "them" versus "us" attitude among the field crews. Th= fact that the Public Works Director remains immersed in administrative and engineering projects further adds to the feeling of field isolation. A vital part of any Director's role is to build a team spirit among his employees by taking an interest in the quantity and quality of their work as well as to convey the perception that he is representing ` their professional interests in City Hall. I !` (4) Management Of Staff Resources Appears To Be Fairly Good With some exceptions, s.-pervisors seem to be conscious of the need to maintain staff supervision and productivity. Some notable efficient;es f are shown in Exhibit X, following this page. There are some instances where staff resources do not appear to be used economically. For example: a second survey team is used as flag- men on busy arterials -40- �r EXHIBIT X • Huntington Beach DEPARTMF!:T OF PUBLIC WORKS � CREW MANAGEMCNT PRACTICES THAT HAVE INCREASED EMPLDYEE EFFICIENCY WIDESPREAD USE. OF RADIO COMMUNICATIONS (ALL DIVISIONS) SCHEDULING CREW VACATIONS SIMULTANEOUSLY (TREE/LANDSCAPING) OFFICE SHARING BL"rWEEN CITY HALL AND CORPORATION YARD (CONSTRUCTION INSPECTION) FUELING OF EQUIPMENT RT THE END OF THE DAY (TREE/LANDSCAPING) ` VOLUNTARY USE O_ MORNING AND AFTERNOON COFFEE BREAKS TO { REVIVE AND REPORT ON CREW ASSIGNMENTS (SURVEY) i { TREE STAKE PREPARATION AND BARRIER SALVAGING DURING IFCLEMENT N WEATHER (TREE/LANDSCAPING) AUTOMATED FUELING SYSTEM (VEHICLE MAINTENANCE) a r' 7r 1 i % I 1 s 1 i to f qangineers still do ranch of their own drafting electricians are used to change light bulbs mechanics change tires on vehicles in the Acield a permanent workforce, paid an average of $13,000 per year, is used ti clean up refuse in right—of-way supervision of small field crews, such as street striping crews, could be im- proved Only one division, street and tree landscaping has a training and testing program to increase pru- Cfessionalism and provide a sound basis for merit promotions. Departmental managers have recently introduced an experimental bi-weekly 36-44 schedule to increase morale and discourage unnecessary sick leave. Sick leave utilization among permanent employees is almost twice as high in the Maintenance Administration (60.0%) as it is in Engineering and Adrunistration (36.2%) . Departmental usage of sick leave averages 1,000 days per year or 4 ;nan years of productive time. Many divisions "split shift" the weeks so that staff remain available on Fridays of each week. f -41- -� Some supervisors interviewed by the tears; expressed concern that scheduling routine crew maintenance has become more difficult. Team observations. lead us to conclude that while this arrangement is designed to improve productivity, Fridays are unproductive days because of poor super- vision and "short-manned" crews. CETA staff who are not scheduled to be absorbed into the permanent work force are causing morale and work schedule problems among maintenance crews: Many are losing incentive to •.cork. There is no incentive to save sick leave accruals. The future use of CETA project staff requires careful re-evaluation if the Department is to mairtain its present productivity. t -42- 5. AVAILABLE SPACE APPEARS ADEQUATE FOR PF.S5ENT AND NEAR TERM DEPARTMENTAL NEEDS . Planning foresight during the construction of the City Hall and the Corporation Yard and recent approval to relocate *he Water Division Yard to new facilities will provide sufficient expansion space to satisfy the needs of the Department for the immediate future. The Department presently occupies: One third of the ground floor and a small room in the basement of the main Civic Center Building. All of the Corporation Yard. All of the Water Division Yard. (1) Present Engineering And Administration Space Occupancy Is Inadequate The present location of all engineering and administrstiezn staff in open quarters on the ground floor of the Civic Center is not conducive to an efficient work atmosphere, for several reasons: Di.vIsion managers and chiefs occupy semi-enclosed or open offices that invite staff interruptions and pro- hibit private discussions with staff over disciplinary matters or ^ther sensitive subjects. -4 3- J The remaining floor space iQ crowded, noisy and allows no privacy or meeting space for small staff -or staff-citizen meetings. Design and right- of-way staff are located at primary thoroughfares -. on the floor. l File space consumes approximately one third of the total available space. - ;:= (2) A New Water Division Yard Is Urgently Needed Present facilities for the Field Operations of the Water Division ;.. - ; are totally inadequate for operations for the following reasons. E-. 'k There is no uniform change and clean-up area. There are no drafting tables; two inspectors must spread plans on the floor of an office . approximately 6' x 8' . Leaking roofs nose an imminent danger to stored files. Storage space for materials and pipes is lacking; pipe cpnnot be brought in large quantities to minimize costs. h� Lack of parking spaces causes spillover of employee cars onto adjoining private property. Vehicles must travel daily to the corporation Yard to obtain fuel. : - -44- �yT -:' Lack of administrative offtce space prevents the Water Superint6ndent from maintaining daily working relationships with his staff located in the Civic Li t-L'- r.•'`'�+ s _ tom- '-� ram..• f s.v. 1c �i: �{.l -4 � f Yam' 1 ■ in A new facility has been recently proposed and negotiations to purchase the } i '� necessary land have been plans should address 14 NF y �,.t�' ` ,• •� needsll provide for growth of operations. And some R2S2anslon of anerations dr fw spacer allocated as follows: � ,� � ia'`�t.,:� -'•, � �+r. _��" a •. •�. Office and administrative 10#929 s y` / •i_ t 4 •^ ! Y at#. - f _ L :' .� • • • • - 1 Vehicle maintenance 29,493 �iq. ft. The veh'_cle maintenance facility was originally designed tb handle all - present - s# - Wit.•; Y3 1 �•.: f ^� a •r__. maintenance . its the Fire and PAice f. rtmer maintain their own facilities. -e•^ µ ' } � t r-.�tom' OP • 13 t i i ! 1 !I 1 • I l i IA 1 M I ! I ! I I f i 1 Both Fire and Police vehicles are maintained in 6,600 square feet of space allocated as follows: Vehicle maintenance 1.376 office space' 288 Storage 2,160 Helicopter hanger 2,800 A proposal has been made by both departmenta to the City tc construct and relocate to a joint powers garage that would provide maintenance services to city police and fire vehicles as -jell as fire department vehicles from neighboring jurisdictions. Botli departments have defined their needs as double their existing space, or 15,Z24 square feet. Approximately 58000 square feet of this space would be set aside fox a helicopter hanger and shop. The total cost of this facility amounts to approximately $933,000 in capital outlay and approximately $300,000 annually for operations and maintenance. If the City were to deckle to combine the present Police and Fire vehicle maintenace operations with the City garage operations, there would i -46- 1 � i i � i � 1 �i 1 � 1 ! � ! � t � ! � t ! • ! ! i be adequate space to meet both departmental needs if: ' r r Heliport operations remained separate. Only City police and fire equipment was serviced. Mechanical fabrication equipment in the City garage were relocated or reduced ih amcunt. Heavy repair and overhaul work is contracted out. Fire truck hoists Would not be required for this operation. -47- i IV. ENGIt*ZV.RING CONCLUSIONS I j I I � i :Ah ! t •i 1 i E 1 �' i ! 1 I I! I`T. ENGIN%ERING CONMXSIONS { i This chapter discusses the conclusions concerning thF departmental engineering activities and practices. operations related to the following units, all located in City Hall, are discussed in this section: � i Directors office Engineering Division - Design - Development - Construction inspection - Survey - Right-of-gray TraffiL: Engineering Division Administration & Planning Operations & Maintenance Water Division Engineering Division I S I is I • Operations pertaining to functions carried out at the Corporation Yard and the Water Division Yard are discussed separately in the next chapter. 1. ENGINEERING OPERATIONS MAY BE GENERALLY CHARACTERIZED AS EFFICIENT AND PRODUCTIVE Staffing and workload comparisons of city engineering functions with neigh- boring cities show that Huntington EeacL has carried a similar workload at lower costs. The following facts are offered to suprort this conclusion: Huntington Beach per capita expenditure:: for engineering and administration were approximately 54.30, while Costa Mesa spent $5.93 per capita, Gardan Grove $7.59 per capita, and Anaheim ;8.46 r capita during the same per p g period in F'3C 1976. Huntington Beach presently has seven design engineers assigned to 50 active major improvement projects. Newport Beach has 11 assigned to 40 major projects and Santa Ana has 13 assigned to 49 major projects. Hungtinton Beach is designing most projects in-house while Santa Ana contract designs for 3A and Newport Beach contract designs 90%. Comparative workload figures for Development, Traffic, Conetruction Inspection, Survey, Water and ri3ht-of-way activities are not available, but it ca:. be safely assumed that workload demands in each of these areas are higher in a rapidly growing city as compared to older, more residentially stable cities, such as Newport Beach and Santa Ana, -49- t � I 1� 1 +� t �! 1 3 1 1 � l • 1 M ! � i ! � t �� Exhibit ;I, following this pager displays staffing ccmpirisons by type for Huntington Reach, Newport leach and Santa Ana. (1) Staffing Adjustments Have Not kept Pace With Staff in Workload �s No major structural changes have bean made to the city engineerin, coerations in the past decade and staffing has grown only 18% during the past five years. The reason for this appears to be twofold: The Director's desire to maintain a "lean" operation ` with relatively few staff. City anticipation of a levelling of the explosive growth rate experienced in the 601's and 70's. The expected decline in workload has not occurred and show3 no trend in that direction. The total number of permits reviewed by the department continue to climb annually at a rate of 12%. Departmental managers inter- viewed in surrounding, older cities confirm that after the initial "rave" of development occurs, a second "wave" of smaller residential expansion and improvement follows that in many respects requires more permits to be reviewed and inspected by their staffs. A brief discussion of the work- \8� -50- IZ' t • i t• 1 4 r t 1 1 1 i ! . # ii i ! ! • r �! EXHIBIT XI Huntington imach UGPAIl1I1 M OF PtaLIC WORKS COMI'AHMSOH OF STAFFING Hv TYPE MR THREE 0-1ITUM a SHUINERRING OPC1kTIONS DLSIe?i TPAPFIC DEVELOd'llllR' INSPECTION Mobtinyton Wjwport Santa Huntington No�+Wrt Santa Huntington Newport Santa(]} tuntington 1M>rpatt Sanwa PU;ZT104. &each bead% Ana beach Beach Ara beach beach Ana beach beach Attr. Engiover ICivll. Trans. Traffic) 3 1 1 1 2 1 Enghwer hsv"iatu 2 1 3 1 2 1(7) Engiamer Arsistunt 1 3 Engineariuy Coordinator 1 4 «' 1.5 Vigineuriog Technician 1 3 2 1 Engineering Aldo 2 S 1 1 2 1 1 Inspectors 1 B 4 10 Sur.eyors Real Property Agents Other 1 l 6 11 lie 7 S 9.5 3 2 INA a S 30 SUM'EY wh"N Huntington WMK rt Santa Huntingtoa me- rt Santa Huntington Newport Santa Beach Buade ARK beach Beach Ana Beach maad: Ana Ereger.eer (Civil Trans. Traffic} Engineer Associate £nyinaer Asaistant 1 Engineering Coordinator 2 1 Enyineeriny Technician 1 Engineerteeg Aade 1 1 1 Inspectors Surveyory 11 3 B Real Prororty Agents 1 2 Others ll 3 6 i 0 6 3 1 O tl} [easiyp section ireclwkY: Struat liyliuml *IIIgi.-vor AStit. 444141 Az:.roc. I:nyuwe:r ter C.I.P. t.lannieey. ulutetu and xpuciil Projects. Eaginum iuy t,r.,tt:.were Foe hlamu t3mc a. t=! Tleia I+erlsioee rurveetly trarmfurrud rrtm dusiyte sectim. I t} Inclular water ue..liuewer... load impact on each division and section having engineering reaponsibiiitlas follows. (l.l) The Engineering Section Appears To Be Understaffed To Efficiently beet Present Workload Requirements The Engineering Section presently contains 30 staff who are engaged in design, development survey and inspecticn activities. The Design Section workload was discussed previously. Until recently the Development Section con- tained 2 staff who reviewed Permit applica- tions, gathered engineering utaff comments and conditions, and answered developers and residents" questions. in response to public criticism over untimely and unresponsive reviews+ the department recently requested and received permission to transfer an associate civil engineer pW tion to this activity. This action will improve the engineering expertise availab a to the public through this activity, but problems still remain. Deaign engineers will still review the ma jari-Ly of the applications, that cone through the department. This "spillover* consumes an estimated 30% to 40% of their time which is heeded for design work and contract administration. The Zi.Tht-of-Nay agent must also spend 15t to 20% of his time on development related -51- Iz- IR i W1 issues. The priority status and erratic nature of this workload suggests that it be centralized and relatively Isolated froth the design and right-of-gray work to minimize disruptions. The Right-of-Way Agent is presently severely over-extended at th a workload of 132 proper- ties. Agents normally can handle no more than 15 to 20 parcels at one time effectively. Almost one half of these are for Public Works projects, 30 are for Parks: and Recreation and 28 for the Redevelopment Agency. The cost effectiveness of this activity to the city is clear. Potential cost savings and future cost avoidance will pay the annual salary many times over. Properly belonging to this function is real property management, which is presently scattered across three city agencies; Harbors a Beaches, Finance and. City Attorneys Office. Then City has a^quired sufficient surplus property that necessitates the professional management of these properties to yield the highest returns to the city by returning them- to the tax rolls and through lease arrangements. Examples of city neglect of this activity include an abandoned reservoir presently - standing vacant and the old City Hall that is not producing sufficient revenues to cover maintenance costs. The incumbent city Right-of-Way agent has qualifications and prior experience in this activity, but he would require additional assistance to assume this reponsibility. -52- C` The Surve1r .Section has the largest staff of the three cities conpared in Exhibit XI currently a:: 11 authorised, 10 on board. Santa Z na has 6 staff and Newport Beach has 3 for similar operations. This relatively large number of staff allows them to routinely provide full survey tenchrark data to engi- neers who request only partial measurements of certain project locations, a practice that has proven to be a tira saver in the past Presently, only 401 of thair work is genera- ted by city requests from Public Warks, Parks i Recreation, Police, etc. The remainder is to vAmt state requirements, citizen requests for boundary markings and internally generated. The section typically does two surveys for each public improvemnt project--a preliminary survey with cross-sectional benchmaarking every 25 feet, and a construction survey that requires staking. The section recently ac- quired an infra-red survey distance meter that has tremendously increased the productivity of one of the three survey crews. Whiles a reduction of one survey crew appear3 to offar a feasible cost savings to the city, the section faces a major job of re-surveying the boundaries of the city in the near future. (I.2) Traffic Engineering Staffing Appears Adequate The Traffic Engineering Division appears to be adequately staffed at T employees relative io 5 in Newport Beach and 8.5 in -53- �... 1 4 t 10 t 16 1 06 1 0 1 Santa Ana. Division Marageaent appea;s to have trouble, however,, integrating externally imposed workloads with internally generated workloads. In particular, the division has been unresponsive in the timely processing of permits and projects requiring joint par- ticipation with the Design Section. Nora direct involvement of higher level management in work assignment appeftrs to be the most feasible solution to this continual problem. (1.3) Three Engineering Positions Are Assigned To The rater Div =_on The Division has one position for Engineering Assistant and two aide positions. The assistant position (recently downgraded from Associate Engineer to allow a transfer to the Development section) is now vacant and nomaily responsible for design and coat estimating work on watei wells. The Coordinator position is dedi- cated to record keeping and .development activities while the aide position does design work on extensions and development wank. Because of the relatively small a=urt of design work 3.n the Water Division, there positions are not primarily engaged in Engineering work, but rather record keeping and development work. -54- -0 C' These positions could be more effectively used in the Engineering Division, where staffing shortages exist and be replaced with accounting staff to maintain accounts for all utilities. Design and Development work would be conducted as needed by the Engineering Division and' charged back to the Water Fund at a net savings to the city. This procedure is Standard in the neighboring citiss of Newport Beach and Santa Ana. 2. THE ENGINEERING WORKLOAD CAN BE MORE EFFECTIVELY DANDLED THROUGH ORGRNIZATIONAL RE UCTURING AT NO SIGNI ADDITIONAL COST our analysis of engineering operations leads us to conclude that wo::kload can be more effectively accomplished and costs avoided through organizational restructuring. Restructuring the present staff alignment can avoid cost through: Better utilization of staff time. Earlier installation of improvements at lower costs. !Maintenance cost avoidance through more thorough plans checks and inspections. Addition of new positions can save coCh:s by: Better project and maintenance cost monitoring. Producing revenues through real property management. -55- IP �. MA;kTEMMCE AUa PIar.D apsMTioNs I i � 1 i '� i i� 1 � i • i I M I 1• 1 i� i �� 1 R • 1 � 1 � V. MKINTENANCE AND FIE*AA OPERATIONS This chapter presents our findings and conclusions concerning the field opera- tions at the Corporation Yard and the Water- Division Yard. The chapter is organised Into two major sections: City maintenance operations, including.- - street maintenance - equipment and vehicle maintenance - street# tree and landscape maintenance - g buildin maintenance - sewer and storm drain aai:ttenan-s Water averations, including-. production li disLribut3.on inspection A summary of our findings and major conclusions pertaining to each of the major i city maintenance operations are discussed below. -S 6- lip I A. CITY MAINTENANCE OPERR.TIONS 1. STREET MAINTENANC2 EXPENDITURES COULD BE REDUCED THROUGH BETTER MAINTENANCE SCHEDULIAG AND EQUIPMENT i►MAGENENT The Street M&intenance Division currently has 53 permanent and CETA positions distributed as follows: 17 staff on paving and patching. 13 staff on power and hand sweeping. 19 concrete finishers. 4 supervisors and crew leaders. (1) Street Repair Expenditures Could Be Reduced Through Better Cost Management Street maintenance schedules art: not developed on a timely basis to prevent deter:.oration. Streets are not annually surveyed for condition and usage. Paving and patching schedules based on maintenance requirements, capital improvement and marking plans are not drafted Labor and equipment usel to support the separately fundeC Shamel Ash program are not charged tc that program. 40% of paving crew time is required to support this program. Consequently, some paving work had had to be con- tracted out at one-third higher cost to the city. (2) High Unit Costs For Street Cleaning Could Be Reduced By Better Equipment And Crew Management Present costs were analyzed to determine the cost savings potential of contract service over force account work. Costs were analyzed for four sub-operations: i Power nweepers. Power debris collection. vaztor cleaning. Hand debris collection. personnel, maintenance, supply and equipment outlay costs for each operation were collected and annualized. A summary schedule of expenditures by type and revenues may be seen in Appendix A-6, following this report. The net cost this year for all cleaning operations is projected to be $344,730. r m - oo 5$- • Also shown is the anticipated first year inpact of adding a parking control program proposed in the fiscal -!ar 78-79 budgat request. Future year ticket revenues would presumably offset all parking program costs. Comparison of sweeping unit costs with neighboring cities that perform force account work and an updated contract bid for Huntington Beach are shown in Exhibit Me following this page. Estimated cost per curb mile for Huntington Beach force account power sweeping is $8.79. Estimates for Santa Ana, Anaheim force account work and Huntington Beach contract work cluster around $5.00 per curb mile. Also shown is a comparison of Santa Ana and Huntington Beach cost per cubic yard to collect debris. Huntington Bea-:h costs are estimated at $4.88 per cubic yard for power debris collection only. When power and hand debris costs are combined, the city pays $9.26 per cubic yard. Santa Ana expends $2.61 per cubic yard of uebris collected. -59- MMIBIT XIT Huntington Beach DEPAR'a"ZNT OF PUBLIC it�L"•,81CS UNIT COST OOMARISMS FOR SWFWSR OPEMTIONS FY 78 PROGRAM COST" NoitR Z% UNIT COSTS Annual ....nnal KGENCY Power Debris Curb Cu. bard Curb Cubic Total Curti sweeping Collection Total KLle3 Debris bile Yard Wiles Coat Santa Ana $237,500 $35,000 $353,700 47,500 13,000 $5.30 $2.81 $7.44 Anaheim 498,000 IM INA 1OO,OM INK 4.96 TVA INA Huntington Beach 221,554 59,523 281,077 25,200 1212002 8.79 4.88 11.15 Huntington Beach Contract INA INA 125,700 254400 INA INA INA 5.00 1• Excludes vactos coats, revenues generated, parking control and hard debris costs. 2. Est. based on 2,748 tons 0 4.4 cu. yrds./ton. The following reasons account for the high cost of street cleaning operations in Huntington Peach: Eight full-sized sweepers, one tenent sweeper and one vactor are maintained for four drivers. The department has tried to dispose of sweepers in the past, but has not received suitable offers. Each sweeper costs the city approximately $15,140 to maintain and operate, excluding driver salaries . Street sweeping schedules are fixed by Council request qn a bi-weekly cycle, rather than by frequency of street use and need. A crew or 7 staff patrol major arterials weekly in four trucks to collect an estimated 2,400 cubic yards of debris by hand annually, or 6 man hours per cubic yard. The APWA standard time for this activity suggests 1.18 man hours per cubic yard or five times the present productivity level in Huntington Beach. Approximately 14% of the net street cleaning costs are associated with the vactor operations. This piece of equipment 4s primarily used to support sewen and storm drain cleaning operations. 3. 114PROVED ORGANIZATION AND MANAGEMENT OF VEHICLE AND EQUIPMENT VAINTENANCE OPERATIONS OFFER POTEM' IAL COST SAVINGS The vehicle and equipment maintenance staff and facility are characterized by several positive features: Staff enjoy adequate space, sufficient tools and safe working conditions. -60- `` + Complete vehicle maintenance records of labor, material and suppl5r costs are maintained for each vehicle. fuel pumping labor is eliminated and control improved with an automated fuel dispenser. Vehicles are serviced according to emergency status. The parts inventory is limited to high-turnover items to reduce carrying costs and obsolescence. Present Management Practices And City Policies Contribute Tt. A barge maintenance Budget ' Repairs made with inc::eas:ng frequency on aging equip- ment that is well past its economic life. Higher svmeper maintenance requirements. • Extended preventive maintenance cycles of four months for most light weight vehicles in the fleet. Utilization of one mechanic for two to three hours per day changing tires in the field. Performing 95% of overhauls and repairs in-house rather than contracting these out to expedite ser- vicing and repair of other vehicles. Fabricating equipment at a high unit costs where the budget does not Allow for purchase. High parts retrieval tine because of wide variations in equipment purcha3ing practices. High absenteeism. -61- (2) The Present Staffing Level In The Central Garage Appears Inadequate For The Number Of Vehicles Ma nta ne Comparisons of staffing patterns in Huntington Beach to surrounding cities suggest that the Central Garage is understaffed at I mechanic for every 39 vehicles in the city's rolling *Mock flee:. APWA industry standards suggest 1:17 while neighboring city program managers feel 1:24 is adequate. An internal comparison of positions and vehicles among the four vehicle maintenance programs in Huntington Beach is shown in Appendix A-7, following this report. Also shown in this Appendix are similar figures for Santa Ana, which maintains a centralized garage. Individual departrent and city- wide i -.tios are shown in Exhibit YIII irimediately following this page. (3) Huntington Beach Could Achieve A Satisfactory Vehicle Service Ratio And Gast By Consolidating All MechZn-xvcal Maintenance Functions When total mechanics available are compared to total rolling stock to be serviced, the city-wide ratio approximates a satisfacZ-ory ratio applied in neighboring cities. The cost advantages of consolidation becomes obvious when city-wide expenditures for vehicle and equipment maintenace are combined. Appendix A-8 at the end of this report shows -.62- '' i L*IIBIT XIII Huntington Beath DEPARTMENT OF PUBLIC 61f M COMPARISON OF MEC1iWCS TO ROLLING STOCK MAINTAINED RATIOS { HUHTINCkPOH BEACH SANTA ANA Haxbors Central aad Fire Police Garage Reaches Total Total Total Mechanics 3 3 7 2 15 Lo Total Rolling Stock 21 72 276 32 401 4G8 Ratio Mechanics to Vehicles: Average 147 1:24 1:39 1:16 1:27 1t26 I • 1 1! 1 • 1 ! i I � I i i i • i !t 1 ! i ! � i 1! " EXHIBIT XIII Huntington Beach DMARRTIVINT or VA1,6IC WORKS CONNi9RRISCIM OAF MMANICS TO ' ROLLING STOCK 11 NTAIMD MMIG S HUNTINGTON BUCH SANTA AM Harbors C*ntral end � Fire Police Garage Beaches Total Total Total Nechanicst 3 3 7 2 is 20 Total Rolling Stock 21 72 276 32 401 469 Ratio :tachanics to Vehiclea: Average 147 14 24 109 1816 1:27 1:26 a summation of all vehicle maintenance objects of expense and program budgets for FY 1978. It shows that: $8820876 is currently being spent annually to maintain , 401 vehicles in the city's fleet. This averages to $2,202 per vehicle. Specifically excluded fry this figure are fuel costs, insurance and all non-vehicle equipment maintenance costs outside of Public Works. one could reasonably question whether the entire maintenance function could be con- tracted out on a less costly basis. 4. STREET TREE AND LANDSCAPE MAINTENANCE APPEARS TO HE COST EFFICIENT Despite the fact that service objectives remain unmet in the Street Tree and Landscape Division, staffing and per unit coots of this functica appear to be at an adequate level. This function now consumes t26 of the total Public Works salary and operating budgets almost as much as vehicle maintenance, which con- ceivably is a higher priority program and is presently understaffed. 'I -63- i 4 • 1 ! �! ! ! 1 •I i ! E t • i i! i '� i � i i ce ! !� A number of sound management practices make this division efficient% An internally designed training program motivates staff to improve their skills and places promotions on a merit basis. - .,Annual,maintenunce schedules are drafted and closely moni- • - thrcughout the year. Management is conscious of aelecting and Landscaping road- sides and medians With low-maintenance but attractive vegeta- tion. The division maintasns an internal plans check and inspection staff of 2 to ensure landscaping in the right-of-way motto city standards. Public requests for individual trimming services are scheduled under the regular maintenance cycle if, after inspection., the situation is fo,Md t' be non-hazardous. Records of man-hours,, work load achievemsnts and per unit costs are routinely maintained and compared annually to identify and respond to undesirable cost trends in operations. 5. BUILDING MAINTENANCE EXPENDITURES ARE DIFFICULT TO MONITOR BECAUSE OF THE DIVERSE ACTIVITIES AND ACCOUNTS AaMINISTERED BY THE BUILDING MAINTENANCE CIVISION The Building maintenance Division is p"sently reaponsfbie for a wide range of activitieel including% Preventive and unscheduled maintenance of 126 city owned buildings and 23 other structures � -64- � s i � w � w � � si _ i � � �w � • � w � 6 � i i • carpentry electrical • plumbing custodial painting Maintenance of street signs, striping and city-owned street lights. Maintenance of a departmental atc.ress operation. Body and paint repair for city-owned vehicles. ? Fabrication and installation of building improvements requested by city departments. Maintenance and reconstruction of block walls in the city right-of way. (1) The Building Maintenance Division Administers A roximatel• 261 Or .8Mirlion Of The Public Works Genera Fund Approurlation, Coma ed In 16 Program Accounts The city was authorised a building and grounds maintenance budget of $1,812,100 for fiscal 1277-1978. OZ this amount, approximately 99% is administered by the Building Maintenance Division, or $1,797,500. -65- . Costs are broken down as follows= 30% for salaries and benefits. 33% for utilities. 14% for maintenance contracts. 23% for maintenance materials and Supplies. From the total amount, approximately 23. 3% is c:iarged back to user departments, mostly for utilities. A schedule of -appropriations and trans- fers for buildings and grounds maintenance is shown in Appendix A-9, following this report. Building and gro::nds maintenance expenses administered by the depart- ment are represented in the following accounts, either as a cost objective or as an entire program: 420 450-452 &60 470 480-490 Sane of these accounts are functicnal labor accounts such as 460 for painting, others are general or miscellaneous accounts such as 450 and 490, still others are contingency accounts (4S2) and cost center accounts (480- 487) . The heterogeneity of these accounts and the accounting practice of .`3 � -56- - - - -- 1 * 1 •1 1 s i I I ir I IR I W 1 I ! 1 �� r.narg?ng materials consumed for work orders makes any cost center analysis an extremely tedious task, (3) An Anal sis Of Scheduled And Unscheduled Maintenance Records Shows That Maintenance Of The Civic Center And Parks & Recreat or. Consumes Almost 0 Of The Recorded Maintenance Work Hours An a%idit of preventive maintenance records and work orders showed the following percentage distribution oa time by cost center since the beginning of the fiscal year: Parks and recreation facilities 28.2% Civic Center 19.88 Fire stations 13.74 New Corporation Yard 10.8% Harbors and Beaches 10.21t Central and Annex libraries 4.81 Sewer lift & flood control stations 4.2% Old Civic Center and yard 3.9% Miscellaneous buildings 2.8% Water facilities 1.7% Appro::imately 56% of this time was consumed by preventive maintenance aci.lvities,, the remainder for work orderu. A summary of costs for labor,, I materials and equipment showed distributions similar to those above. t This could be expected since most of the cost of maintenance io for labor. -67- (41 Better Mann emant of Building And Grounds Maintenance Is Recuired To Ach eve An Efficient Arad Cost Effective Opp-ration A revie-7 of the preventive maintenance and work order records for building and grounds maintenance showed staff utilization practices that aro not cost efficient. For example: Electricians costing the city an effective rate of $13.22 per hour are frequently dispatched to replace light bulbs. t� A total of 16 visits consuming 93 hours of one employee's time were; made to refinish the wooden benches outside City Hall between 11/1/77 and 3/15/78, costing the city a total of $1,192.40. Staff have become highly specialized in functional groupings of painters, electricians, carpenters, masons, etc. , so that cross utilization for -qain- tenance activities is limited. Improved cost management is discouraged by a limited charge back system for work orders. Requesting departments are nct motivated to limit their requests because they pay only materials costs. Consequently, much capital improvement work is conducted under the wort: order system. Examples of t-1-^ types of work and costs these requests can generate include: Cabinets were built on 3/20/78 for a fire station at a totztl cost of $3,759 to the city% $730 was charge- able to the Fired Department for materials. -68- —L n • The Parks and Recreation Department has had 104 work orders completed by the building and Maintenance chop between 7/1/77 and 4/15/78 for a total of 1,385 man hours and at a total cost of $23,290= '}Y=== approximately $8,500 of this amount was charged back. Vim. The Division does not review requests for work to determine whether purchase and rL iacemm�t are cost saving alternatives to shop €abriCation. P � 9 P R-= Examples .�f high work order costs this year for the Parks and Recreation department include: At least $3,683 in labor an4 materials were expended on routing, painting r nd mounting 13 wooden signs. - At least $937 and 60 hours of staff time has been expended repairing legs on 10 ping-pong tables. t1� Since the beginning of this fiscal year, 244 work orders (excluding; _ nameplate fabrication) have been performed for all departments at a total cost of $66*812. This averages $274 per work order. Because this type of work is so expansive, the department has had to transfer money budgeted for contingency repairs into routine maintenance accounts. On 1/3/78, the department requested that a total of $15,000 be transferred from Account #452 to the Civic Center and Library Maintenance accounts. (� -69- 1�a ti 6. SEWER AND STORM DRAIN MAINTENANCE OPERATIONS ARE ADEQUATELY STAFFED FOrR THE PRESENT This division consists of 12 staff and one supervisor is responsible for maintaining: 15 flood control stations. 32 sewer lift stations. 400 xr'_'.es of sewer lines and underground storm drainage lines. While it requires only 6.7% of the Public Works General Fund budget, this does not reflect true costs since it must rely upon: Street cleaning staff for vactor flushing of lines. Building Maintenance staff for servicing electrical i motors in sewer lift stations. iWater Division staff for expert advice when servicing petrolane consuming diesal pump engines. Future --taff savings are possible through: Further installation of storm drain improvements to reduce time spent on emergency pumping of flooded street sections. • Further installation of a failure detection device outsiQe pump stations to reduce internal inspection time. '� -70- .D i • B. CIT:'. WATER OPERATIONS This section presents our findings and conclusions concerning the Water Division production, distribution, inspection and maintenance operations. 4 1. LESS TH_1N ONE-THIRD OF THE TOTAL WATER DIVISION BUDGET IS REQUIRED FOR ENGINEERING, ADMINISTRATION, PRODUCTION AND MAINTENANCE SERVICES :k Present annual expenditures for system production and maintenance amount to approximately $1,600,000 or 30% of the total water allocations for FY 788 exclusive of capital outlay and taxes, fees, leases, depreciation, bond redemption, etc. The division is investing almost one-quarter of its budget in upgrading its system and one-half of the budget is consumed by non-service type fees, taxes, leases, deprecia- tion and bond redemption payments. Exhibit V1, located in Chapter II, shows the dis- tribution of each of these expenditure categories as percentages of the total budget after functional allocations are made from the existing program accounts. (1) The Current Program Structure Is Not A Useful Management Tool For Monitor ng operations Expend Lures The Water Budget is organized into seven program areas. These are: 9201--Source of supply--operation 9202--pumping expenses--operation sue^ V -71- t • t d ! ! i! i •i t • 1 1 9 1 !• i i t • d d a t d � 1 i 9203--water treatment plant--operation 9204--transmission and distribution 92,J5--customer accounting j 9206--admiristratiw and general f 9207--•other expenses 9208--other income deductions 9209--capital outlay 9600-9601--WWOCWB accounts Objects of expense are particularly confusing since they are unique in each :account. Since accounts do not follow organizational lines, unit expendi- tures for labor and materials are difficult to monitor. (2) Staffing Comparisons With Other Cities Ate Not Reliable Indices of Staffing Adequacy Division staffing is presently authorized at 44 positions with 43 on- board. Residential and commercial water services have increased from 37,221 on 1/31/76 to 39,636 on 1/31/78. This provides a ratio of 1.11 staff positions per 1,000 services. The department has developed comparative ratios for I neighboring cities that sho►r Fullerton= Santa Ana, Garden Grove, Newport Beach, orange, Anaheim, and Long Beach averaging 1.65 Employees (non-weighted) 4 per 1,000 services. The figure is somewhat misleading, however, because of different operations and accounting practices. For example, a comparison of -72- _,G1 r Huntington Beach to Santa Ana, which has a very similar production capacity and number of services, shows: Accounting and engineering functions differ: Huntington Beach has one staff position dealing with delinquent accounts and 3 engineers, whereas Santa Ar,a has no staff in eithe.: capacity in the Water Department Maintenance and exte,ision practices differ: Huntington Beach has 14 staff performing primarily maintenance tasks while Santa Ana has 20 maintenance staff and iG capi- tal extensions staff which include posi- tions in the Street Department to repave and engineering to design extensions The remainder of this analysis, therefore, will focus on the internal operations. i I2. WATER PRODUCTION IS CHARACTERIZED BY EFFICIENT, COST CONSCIOUS MANAGEMENT Production staff are responsible for maintaining: 3 reservoirs Pumping operations at 7 city wells. 10 water booster pumps. MWD line tie-ins Calibrating for all city primping operations. ?3- s E to 1 iw f Other functions that can be included in production are: Chlorination and florination. Monitoring of water quality. Production workload is based on an annual cycle of well water production_ during winter months and MWD water importation during summer months. Anticipating seasonal usage and adjusting production is a vital task for production staff. Under estimation or over estimation of need not only affects service but has an adverse fiscal i.mpar-' 1 during the summer months: j I t4faD water presently costs $86.00 per acre foot and must be taken with 24 hours advance notice at a cons- tant rate for a specified period. (1) The Present Pro ram To Expand Ground Water Production Should Result In Cost Savings Since 1976, the city has lost two wells and added one well for a current total of seven. Ground water is not only softer w_''.th no taste or odor problem, but its production has economic advantages: The 7 wells presently produce an average of 80% of the c:ity's water needs during the winger months and 40% of the total city demand . -74- Ground water can be produced at a cost of $43 I. .r acre foot, including the cost of personnel, operations an3 pump tax. KWD water is supplemented at a cost of $06 per acre foot. This is 12% higher than last year and next year's cost is expected to rise to $99 per acre foot, Even with a $70 per acre foot: pump tax penalty for pumping over 70% of the city's water requirements, the cost of well water is less than :FWD water. I (2) The Pump Operator In The Production Crew Must Be A Skilled Mechanic The crew responsible for wells and reservoirs ccnsists of one crew leader, 3 mechanics and one pump operator. The mechanics must be skilled at maintaining and over'- auling the large natural gas pumps but also skilled at electrical and welding work. The pump operator circulates daily among the pump sCations, monitoring engines and taking chlorine readings. To F be effective, he must be capable of recognizing faulty engine performance and report any problems back to the mechanics before engine failure occurs. The present classification sf this position does not require these skills. t • 1 t • t •! ! • 1 I �� 1 Is t M 1 • t 1 • t ! � 2. EXPANDING THE CAPACITY OF THE DIM11BUTIONS STAFF TO HANDLE NEW INSTALLATION WOULD RESULT IN HIGHER QUAL TY_ CONTROL AND LOWER IN TALT-NTION AND MAINTENANCE COSTS The Field Operations section of the Water Division presently has 4 crews which share responsibilities for: ` Repairing service and attain line leaks. Replacing valves. Repairing and replacing faulty meters. To a limited extent, they also install new main linew and services. Maintenance operations now consumes most of their time: Service installations are backlogged one month. No large service installations are accepted. In many cases, the customer must contract out the installation to receive timely service. Th,:re are several problems associated with this practice: Contract work is generally 20% more expensive. • The quality of the work occasionally is poor and must be redone by the city. -7G- D - � 1 The quality of the meters is sometimes poor which may eventually result in faulty readingst lost revenues and early replacement by the city staff. r Demands on inspectors' Lime increases in direct relation to the amount of contract work. • Meter setting visits are increased. Crews find that lower quality contract materials used in the past now requirea considerable maintenance time to replace valve bolts, lines and meter gears. This time commitment reduces time available for direct installation to minimize future maintenance requirements. 3. WATER DIVISION ADMINISTRATION DOES NOT RECEIVIE THE FULL SUPPORT OF THE FINANCE AND BUILDING AND COMMUNITY DEVELOPMEWr DEPARTMENTS Lack of support From other city departments that coordinate activities or pro- vide support to the Water Division has caused some problems: The Water Division is not always notified by the Building and Community Development Department when a ce_tificate of occu- pancy is issued. Coordination is essential to inspect connec- tions and set the meters to begin billing operations -- continued used of "construction" water after occupancy by residents has resulted in lost revezries -77- p • - city crews are responsible for correcting deficiencies in services if the certificate of occupancy has been issued without final water inspection. The Finance Department has not provided responsive service to :.he Water Division despite the fact that $120,000 of water revenues support two accounting positions and data procaasing in the Department: The conversion of monthly billing to a bi- monthly cycle as an economic measure was not a high rriority in the Finance Department workload. Ro formal accounting of annual carry over of surplus funds transferred to the General Fund has been provided the Division for three years. 1 -7E- CN I i VI. RECGMMENDATIQNS d VI. -RECOMMENDATIONS During the past two decades, Huntington Beach experienced an accelerat • 3 growth rate more rapid than most cities in the country. Earlier this report noted that the addition of public improvements to the city's inventory during this period has contribu- ted substantial workloads to the Department of Public Works, particularly in the area of maintenance revuirements. The impact has been most dramatic over the past decade because of the lag time between construction and repair. Since 1972, the departmental i budget for general engineering and maintenance activities has more than doubled. Most of the growth has taken place in maintenance activities. The Haintenance Adminis- tration now administers 77% of the General Fund budget and supervises 80% of the staff. During this same period, no major organizational chang=s have taken place. Staff j hav,� been fitted into an existing structure more suited to a small city than one adapted to program budgeting, cyst accounting, similar types of service and management coordination. This chapter presents our recommendations to improve the efficiency and effective- ness of departmental operations. Organizational and program management changes are recommended to improve service responsiveness, cost accountability, workload balance and management coordination. The following section presents our recommendations pertaining to organizational structure. -79- A. ORGANIZATIONAL RECOMENDATIONS 1. RESTRUCTURE THE TOP MANAGEMENT ORGANIZATION TO IMPROVE DELEGATION OF AUTHORITY AND RESPONSIBILITY The. Dapurtment should be reorganized into four major administrative offices under two managers reporting to the Public Works Director. The two positions and their responaibilities are: City Engin"r, with responsibilities for: Water, sewer, storm drain and street/traffic design, survey, plans check and inspection activities. Street and parkway maintenance activities. Hater production, distribution and maintenance � activities. Sewer and storm drain repair and maintenance activities General Services Superintendent, with responsibilities for: Vehicle purchasing, maintenance, repair and replacement. Building and grounds maintenance and repair. -80- r The proposed structure is shown in Exhibit XIV, £cllowing this page. Some of the advantages to this structure are pointers out below: The Department would be organized AlAto four di3ti::ctly different operations, ,-ore :manageable in size and with service budgets of similar size and purpoca: - General Services: $1,9 million (excluding utilitiee) - Engineering: $1.6 million Utilities: $2.0 million !excluding capital expan- sion and non-service costs) Street and Parkway Maintenance: $1.2 million Scheduling and monitoring of development and maintenance projects I in the public right-of-way are centralized under the City Engineer. Traffic engineering and sign maintenance tin Street and Parkway Maintenance Division) are closely coor- dinated. Strcet widening, water line excavation and street repaving are closely coordinated. The role and utilization of the City Engineer is enhanced. city service operations are centralized under General Serviceo to standardize cost accounting practices, improve cost management, and provide a management stL-acture more directly responsive to city needs. - - - - ----— � taz A a a a a>R 1 a el I 4p I 1 y EXHIBIT XIV Huntington Reach Department of PuKe Works PROPOSED ORGANIZATIONAL STRUCTURE PUBLIC WORKS DIRECTOR CITY GENERAL ENGINEER SERVICES SUPER- INTENDENT UTILITIES ASSISTANT STREET AND VEHICLE BUILDING SUPER- CITY PARKWAY AND AND INTENDENT ENGINEER MAINTENANCE EQUIPMENT GROUNDS [AINTENANCEMAINTENANCE SUPERINTENDENT SUPERVISOR SUPERVISOR STREET STREET TREE AND CLEANING LANDSCAPE AND MAINTENANCE1 REPAIR SUPERVISOR SUPERVISOR 1 t gi 2. RESTRUCTURE ENGINEERING OPERATIONS TO BALANCE THE WORKLOAD The present assignment of positions to engineering activities in Design and Development Fngineering, Traffic Engineering, and Water Engineering should be reorganized to: Achieve more efficient staff utilization. Provide more responsive service to developers and the publ-;.c. tieet the workload demand more effectively. The restructuring can be accomplished by: Reassigning three positions to new units or sectior.s. Revising responsibilities of four positions in their present locations. Creating five new positions. Eliminating five existing positions. The net effect would be a slight increase in salaries, but no increase in the total number of positions. The Following specific actions should be taken to -82- �� --- — t V It • ! ill i 8i { t t i F� i 1 ! ! t 1i► t ! • implement the new organizational structure: (1) Create An Assistant City Engineer Pcsition And Eliminate The Design And Development Chief Position Position would report to the City Engineer and have line responsibility for all design, right-oi-way, traffic engineering, development, construction inspection and survey activities. Appoint section chiefs for Mesign Section and Development Section. This change will strengthen engineering coordination. (2) Establish A Special Projects Staff To Handle Special Design And Administrative Work Position would be staff to the City Engineer. Responsibilities would include: - CYP update. - A,inual project master planning. - Budget preparation. - Financial and operations analysis. - Work reporting. - Building and parks capital improvements design and review. i -83- .� $R s Jr I t - 6 * I e4P f Position would require a registered engineer. • Data collection and sur.Lmarization assistance should be provided by the present Administrative Assistant to the Director. This addition will strengthen the responsibility and capability for performance of tasks outlined above. (3) Transfer An Assistant Sngineer Position From Water To The 1 Design Section Position (now vac%.nt) would snare responsibilities for water capital extensions and sewer and storm drain improvement projects. Charge back water design time to water fund. This transfer will improve staff utilization and expand design resources. (4) Transfer Front Desk Clerical Operations And Water Engineering Aids Position To Development Section Transfers would further centralize plans check process and buffer remaining staff from irregular workload. -84- r i I (5) Create A Field Service Section Chief Position With Responsibilities For Survey And Construction Inspection Position could be fi11�i3 on an interim basis by promo- tion of one of the section chiefs. Responsibilities would include support to and monitoring of all public improvement, subdivision and permit work in the field. This position will centralize coordination of field engineering activities. (5) Create An Assistant Traffic Engineer Position From An Existing Traffic Engineering Position With Line Responsibilities For Traffic Engineer in I Position would report to the Traffic Engineering Chief. E Responsibilities include coordination of planning, research, and maintenance operations. Assignment of responsibility will assist the planning ' and controlling of a wide range of activities. f ' Transfer One Position In Traffic Engineering To Construction Inspect an Responsibilities would include inspection of all traffic signing, signalling and striping as well as street widening, re-surfacing and other street projects done by force account or contract. 1 4I 1 1 4P 1 f Transfer will result in better staff utilization through cross-training and Expanded street cash contract inspec- tion capabilities. (a) Create An Assistant Real ProL�erty Agent Position With Responsibilities For Real Property Managemant Position would report to the Real Property (right-ot- wa;►) Agent. Responsibilities would include right-of-way support work as well as real property management %.A surplus City property. (9) Eliminate Four Of Eleven Positions in survey Loss of one of three crews is partially offset by increased productivity offe.ed by the new survey distance meter. Prior to elimination, city boundary suuvey should be considered for need, scheduled if determined necessary and executed under the present staffing arrangement. a A summary of engineering responsibilities assigned to positions and section as they would appear ender the propose-t restructuring is shown in Exhibit XV, following this page. Exhibit MIX, following Exhibit XV, shows the proposed organi2ational structure of each position. I -86- � f X111BIf xv Iluottrypua tkack lkW/tment sir Mrww Wl"Al PkOM%E1)A!L%;NMENT OF ENGINEERING RESMNSIDIL1TI0c 1 .E atnr.9 P.-%tuns DIRECTOR with Councrl•Administratic.n And Public Groups •PuWk WrsrlsAdmWstratwn CITY PEr4ntevi%AdmWorstion ENGINEER •Street lb Pwkvwy Administration SPECIAL PROJECTS ASSISTANT •Building:... —.0nannPlannirSM-Wr FNCCITY ,Admwwwalion •PartsImpovattxtttsOssgn I of Erlower ft a Capitol tmprovcmmts Pit—inpltApdats S4rvxes u Protect Accauriting and Ptarning a Operations ForemUralAmtYlit �.____�_ •Budtst t=t�uatiott 3ESIGN REAL TRAFFIC FEV ELOPItIENT FIELD PROPERTY ENGINEERING SERVICES MANAGEMENT ' ar—h Contract •R1W Acquisition •Trattrc Syvarms •Subd:visoun and s Omzflrrq durance Mminaxatwn •Real Property Pluming A Reuwch Permit Plans CAak •Roaming 6 Estimating Management •DesW Zallic •DerNopmenr Stren,Water,Sewer& .•tow Improvements fenCoi:ectian Storm Drum Impovwnwits •Traffic Con" aputtic f-tfomuca t •Assessment OrArwt maintenance a SURVEYPtarntng&Eutmetirg Adn4nimratwn WtIST. IHSP. •Prkrrrq Control •Impact *conduct Simile Conntruc:son •"numSurvey a1 ap R1W fllstrarrBMnt Construction •Wimaln RacordW4 for Below mound Satla is and Surface Impovernanb •irra.rra C.w.tpttarrea to ell Appeoveo SraMaeds.Plana ae S7acilitatiarra � V� - d O _ ■ :� ■ a ■ we ■ . ■ O ■ ■ a ■ ■a i EXHIBiT XVI Huntington Beach Department of tnblk Works PROPOSED STRUCTURE OF • ENGINEERING RM ATED POSITIONS hakxAt aw StMX[x { O�RlCWW- env UTILnl[s EMG1fiER :.fi[RINTENDENT tKOU PIWA if SIM"Mm CT3►1[Al t AS3MMMT [TittElMi�IEtA • MY ACCOUNT ERa71[E11fAR t'AlltDOW MT krNl! EN6�lEtk � CL2RR ARK Ai3T. [RCRT.w faOOORTt t O(YaE kW TT.AJi1C j OErIICiN[NT • VELD [kGiC[iF.S'�7C 7ROi[RTr [N!{DR[IL11G IERV C[f ClM1L ERCIIttER AS=ENCR ASNM EN"% j • A.�ISTAIti t arrr.tT[ 7�iTRTLLIT flEAL t[RintilRlMO RAN[ f10�4TAUC'iION AMEr �wcw[Q laCwllk iAORRTr TRAtisC CDOROi MM t>'[atSR WONCTIM t+u/�d� RiEMi EMG1M[R tl`ATERt cWPI CMEi t1Y.Ip[lR1M3 `RpG lRGINt[RINS ENGIRElRIl16 AltgliUri 1E"..MtEERIN6 ENG�M[R7RG IROMf CONfT11UC?7! sunr[r i[tiR1E[iwly • A!9[ [�`�#rR COOkDiITOR i[CIINYdAN OEiRlTA7i 1N<Kcm ►ARir CHIN Cum" t%1N[TR. [NGMItERtRG lilGiRtlRIMG COMM. cookoN roR A!O! CONWIL suRr[r COMM "A" ax[rk au[i t i1"PC rkr[cTw MEW MMITfOlriS CREATED FRIM EXL'Mku POSITIONS K Q 3. CREATE A UTILITIES DIVISION OUT OF THE PRESENT WATER AND SEWER AND STORM • DRAIN UNITS The Sewer and St-3rm Drain maintenance activities should be combined with Water operations to realize several operational economies. Among these are: Centralization of electrical and mechanical expertise for piunp engineers. Sharing of heavy rolling stock and rotation of natural gas engines. Avoid costs of etxcavation equipment for sewer lines once sewer line replacement fund is established.' Expand seven day stand by capability for emergency crews. iewport Beach has had a similar arrangement for over a decade and managers of the progran maintain it is a safe and efficient operation. To guard against cross- contamination, crews are organized into the following functional groupings; Water maintenance and service repair. Reservoir production. Sewer maintenance. Flood control and sewer lift station,.. Water and sewer construction. Water meter reading and repair. -87- C� r l �■ • s 7 IMF %1) Phase Sewer And Storm Drain Maintenance Operations Into Water Operations .'after The Propose Cost Accounting System Is • Implemented Because the two operations have separate funding sources$ the merger should not take place until after the Department has implemented a cost accounting system that is capable of tracking crew time and materials costs costs separately. (2) Centralize All Utility Cost Monitoring In The Water Supervisor's Office Billing journals for water services are maintained by Water engineering staff as a manual check against financial reports. Journals for gas and electricity are maintained by Building Maintenance staff to monitor utility expendi:.ures by cost center. These functions should be centralized under an account clerk in the Water Supervisor's office. Monthly summary reports should be forwarded to the Building and Grounds management so that this information can be entered into a formula for a flat maintenance rental fee. The recent transfer of utility budgets out of Building Maintenance to non- departmental funds makes this action efficient and practical. ■ � � i w 1 � � � 1 `7 � f `� 1 �JS � it a • * � 4. REORGANIZE THE MAINTENANCE ADMINISTRATION INTO TWO SEPARATE SEP.VICE RELATED UNITS The four remaining divisions in the Maintenance Administration should be re- structured to: Create an independent service-oriented division to pro- vide city-wide maintenance services on a charge back basis. Achieve more continuity and integration between engineering planning and maintenance operations. Establish units of more manageable size and reduce the current atmosphere of "crisis management" in maintenance operations. (1) Create A %eneral Services Division From The Present Mechanical Maintenance Division And Build:ang Maintenance Division The Mechanical Maintenance section would have three sections: - Mechanical repair and overhaul. vehicle servicing. vehicle body repair and painting. -89- t t i i * i �i ! ! ! �' ! S� i i ! ! i • F t• The Building and Grounds Maintenance Section would have the Following three sections: Custodial services. Shops. Building maintenance and repair. { Electricians should remain centralized in Building Maintenance to maintain critical expertise: Back-up service for street lighting and sewer pump stations should be charged back to user departments. An independent stores operation servicing both of the above sections as well as other divisions would comprise the third major section of the General Services Department. The proposed structure is shown in Exhibit XVII, following this page. (2) Create A Street And Parkways Maintenance Division From The :resent Street Maintenance Division And Street And Tree Landscaping Division The Street Maintenance Section would be comprised of five major units: Paving, comprised of two paving crews and one patch crew. Concrete finishing. Street and culvert cleaning, comprised of power sweeping, debris collection and uactor operations. -90- s ! t i6 t ! t �t t # t f s E i• tT � f wt t s E ie EXHIBIT XVII Huntington Beads Department of Public Works PROPOSED GENERAL SERVICES � ORGANIZA71ON PUBLIC WORKS DIRECTOR I CITY GENERAL ENGINEER SERVICES SUPER- INTENDENT VEHICLE AND STORES BUILDING AND EQUIPMENT FOREMAN GROUNDS MAINTENANCE MAINTENANCE SUPERVISOR SUPERVISOR [MECHANICAL VEHICLE VEHICLE CUSTODIAL AINTENAFi^E BUILDING PAIR AND SERV',CING BODY REPAIR SERVICES SHOP AINTENANCE VERHAUL CRt-w ND PAINTING LEAD FOREMAN AND REPAIR 'YI LEADER LEADER EAD WO?KER V40RKER FOREMAN i Street signing and striping, presently located in Building Maintenance. Street light maintenance, presently located in Building Maintenance. The Street, Tree And Landscape Maintenance Section would be comprised of its three present units: Street tree maintenance. Landscape and median maintenance. Plans check and inspection. The proposed organizational structure is shown in Exhibit XXVIII, follow- ing this page. Placement of traffic maintenance functions pertaining to Traffic Engineering under this unit was considered but determined not prac- tical in the short-term% Traffic Engineering should first make structural and productivity improvements within its own unit. The direct line relationship between engineering and maintenance would comprise a confusing exception to a proposed structure that clearly distinguishes be- tween line and support functions. If the placement of traffic maintenance functions under Street and Parkway Maintenance proves to be operationally impractical after reorgnaiza- tion, they should be placed directly under Traffic Engineering. � 91 J tt� t ® I � �- i ! 1 �1 1 i I. : , I IJ� I >>f i • i I • � � EXHIBIT xVIII Huntington Beach Department aF Public Yorks PRGPOSED STREET AND PARKWAY MAINTENANCE ORGANIZATION PUBLIC WORKS DIRECTOR CITY ENGINEER STREET AND PARKWAY MAINTENANCE SUPERINTENDENT STREET TREE STRMAINTENANCE. AND LANDSCAPE MAINTENANCE AND MAINTENANCE CLEANING SUPERVISOR SUPERVISOR STREET TREE LANDSCAPE PLANS CHECK nGCONCRETE STREET AND STREET STREET LIGHT AINTENANCE AND MEDIAN AND FINISHING CULVERT SIGNING AND MAINTENANCCREW AINTENANCE INSPECTION CREW CLEANING STRIPING LEAD LEADER CREW LEADER STAFF LEADER CREW LEADER PREW LEADER WORKER s B. PROGRAH MA,NAGEMNT RECOMMENDATIONS 1. THE CAPITAL IMPROVEMENTS EXECUTIVE COMMITTEE SHOULD ESTABLISH PROCEDURES FOR POLICY AND PROJECT PRIORITY REVIEW An Executive Committee comprised of the Directors of the Public Works, Finance, Parks and Recreation, and Planning Departments and the City Administrator was established within the last year to formulate a city-wide Capital Improvements Plan consistent with the General Plan. This committee should establish quarterly meeting dates to: Review progress of capital improvements projects. Review present staff commitments and deter-mine priorities i for future staff and fiscal resource commitments. ` Develop recorutended project completion schedules on an annual basis. Recommend action and policy guidelines to the Planning Commission and the Council. The actions of this committee will facilitate the successful implementation of the next recommendation. -92- a = a a a a a s a 2. DEVELOP PROJECT SCHEDULING AND MONITOR-NG TOOLS �► Many of the concerns highlighted in Chapter III concerning engineering project management can be overcome with two single but effective management tools described i below. (1) Design And implement A Master Project Schedule At The Beginning Of Each Flacal Year This master schedule would incorporate all departmental work to be initiated or completed during the year. Projects scheduled should include major force account projects, such as street repaving, as well as cash contract work. The schedule should identify by type of project: c Project name. Project manager. Budgeted amount. Phasing by month. Required actions such as environmental impact, negative declaration, etc. rorce account or cash contract. A similar format used by a neighboring city is shown in Appendix A-10, following this report. r 1 W i of 1 ! 1 io 1 0 f st 1 • i � � (I) Separate Self-Replenishing Funds From Program Accounts • Combine similar accounts for mechanical maintenance and building maintenance into a fund for each. Establish sub-accounts for each cost center. Design a report format for accounting for each fur.1 and its cost centers showing labor, materials ant4 supplies, vehicle and building rental, and administrative overhead objectives and transfers for each. once operational, anticipated monthly cost center outlays should be drawn down and placed in the fund. Previous month actual expenditures should be reconciled with the anticipated draw down. (2) Consolidate Cost Objects of Program pperating Accounts Into Six To Ten Standard Objects Include building and vehicle rental in all city program accounts. (3) Establish A Contingency Fund For Emergency Repairs And Major Overhauls Non-itemized fund is replenished with transfers from user program funds. p -95- (4) Revise The Water Fund Program Structure To Aid Program Managers At The Water Yard The Fund should have six accounts, as follows: - Administration - Production and supply - Distribution system maintenance - Utility depreciation (itemized by facility) - Customer Accounts - Capital extensions The account structure chances should be made in such a manner as to maintain the integrity of information reported to the State. ?. CONDUCT FINANCIAL ANALYSES AND MAKE BUDGETING MODIFICATIONS (1) Review Industry Costs To Determine True City Costs Sewer fees Water in-lieu tax Sewer line replacement- 4 (2) Establish A Sewer Line Replacement Fund { ---_ � 1 ! � ! ! ! !! ! !1 1 3 l 1 � i 1 ! 1 ! ! f� 1 1 • 1 1 ! F (3) Implement An Equipment Justification Format As Required Budget Hack-Up (4) Budget Materials For Replacement In Operations Bud ets. Budget Labor And Materials For Improvements In Ca ital Outlay Budgets 5. DESIGN ACID IMPLEMENT A COST ACCOUNTING SYSTEM (1) A oint A Staff Task Force To Design The System The task force should be comprised of the following staff (named by their present titles) who have experience or expertise in this field% 4 Building Maintenance Supervisor I � Street Tree and Landscape Supervisor Mechanical Maintenance Supervisor Engineering Division Chief (2) Revise Workload Reports Select and define a limited number of appropriate workload indicators. Assign responsibilities for reporting and su mnarizing activity or unit counts. y -97- M (3) Establish Time Reporting Procedures To Parallel Workload Reports Collect by cost center or project. Collect by type of activ.6 Collect by half-hour units for all staff. (4) Revise And Standardize The Work Order System Standardize use for charge back work only. Include charges for labor, materials and supplies, vehicle rental and administrative overhead. Establis . cost estimating, cost review and approval and prioritization procedures for all najor work over $300. 6� AUTOMATE COST ACCOUNTING AND IMPROVE FILE SYSTEMS (1) Explore Automated Applications To Relieve Manual Summarization Tasks And Improve The Timeliness Of Cost Accounting Data Prior4ty efforts should address primary system requirements for project and cost center accounting. - System should be designed after Program Account restructuring. -98- cn � � : 3 � i � t �! t � t t � t i� t w ! ` i t • t ii i Secondary applications for inventory control and main- tenance scheduling should be considered at the sane time but implemented latex. (2) :assign An Engineering Task Force To Improve Filing Structure 1 And Procedures The Department should continue efforts initiated in this area and assign responsibilities for specific tasks. 7. IMPLEMENT EFFECTIVE ENGINE::<ING WNAGENENT P-PMCTICES (1) Section Chiefs Should Sign All Of Their own Correspondence Create a daily circulating file of public correspondence copies with a one day hold period, when feasible, for Director and City Engineer cowaterts. All internal correspondence to the Council, City Administrator and other departments should be signed by the Director. (2) Contract Jut More Design Work And Improve Contract management Skills Of Engineers Offer short training courses in contract management 4 to engineers who wish to attend. i i -99- (3) Add Real Property Management To Present Responsibilities As A Revenue Generating Activity Inventory and assess property. Establish guidelines and procedures for managing surplus real property owned by the city. Desirable types of enterprises. Type and duration of leases. (4) Centralize ResFonsibilitx For Certificate Of Occupancy Sign-Off To Avoid Department Liability For Work This task is presently performed by Construction Inspection Chief.. It should be assigned to new position of Field Services Chief or Development Chief. A routing slip should be attached to final documents so that each division is accounted for, including :dater. Building and Community Develop- ment Department certificates issued without the review of the appropriate Public Works Divisions should be documented and forwarded to the City Administrator. i 1 i it t l Id 0 (5) Mana ement Should Schedule More Frequent Field Visits To The Water And Corporaticn Yards The Director should set aside one day per month to informally visit with a divi3ion supervisor and his crew leaders. 8. TAXE STEPS TO IMPROVE MAINTENANCE PRODUCTIVITY (l) Institute A Practice Of Random Radio And Field Site Checks By Supervisors Of Their Crews The large number of departmental vehicles allows potential "roaming" by crews which wastes staff time and fuel. (2) The Productivity Impact Of The 36-44 Hi-Weekly Plan Needs Further Examination A sufficient base for comparison of before and after sick leave records has not yet been accumulated. (3) Develop A List And Schedule Of Unskilled Support Tasks For CETA Crews To Assist Maintenance Operations Assign a staff supervisor for each. Exercise caution that CETA staff do not perform work performed previously by laid-off city employees. -101- l i I • i P t Ili 1 • 1 E • t 1* t q i • t 6 1 9. REDUCE STREET MAINTENANCE COSTS THROUGH PLANNING, EQUIPMENT_DISPOSAL AND STAFF ATTRITION (1) improve Street Repair Planning And Management Practices Inientory street usage and conditions. Establish a desirable maintenance cycle for major streets. Coordinate annual- repair plans with Engineering Division plans for capital improvement projects and establish schedule. Derive staff, equipment and materials resources needed. (2) Take Immediate Steps To Reduce Street Cleaning Costs Comparative analyses contained in Chapter V of this report suggest that the street cleaning operations can be performed at almost 42% 1Qss than the cost of the present operation without significantly affecting the present scope of service. Cost should he approximately $200,000 per year instead of a net $344,730 based on the following breakdown: Power sweeping--$5.20/curb mile x 25,200 or $131,040. Power debris__$_.GO/cubic yard x 12,200 cubic yar2s, or $61,000. -102- M t i 1 # i ! I • l 1 '� I IIP 1 `7actor opera tions--$48,209 x 151 for street cleaning (remainder for sewer and storm drain) or $7,321. : A contractor has offered the city a proposal to perform power sweeping of a similar annual curb mileage and price. The city should attempt to reduce its costs but continue to perform force account sweeping for two reasons: At least one sweeper should be available for special clean-up of construction work or pre-sweeping for -. street striping. ! Force account sweeper program managers in neighboring cities expressed concern over any city*s ability to maintain responsive service under contract, particu- larly where competition is minimal. The Department should act to avoid future excessive costs by: Disposing of five of the eight sweepers, each main- tained at an annual cost of $15,140. Swit-h one driver to night shift sweeping (11:00 AM to 1:00 AN) in commercial areas 'to k.aep one machine is inactive at all times for maintenance. Establish 18 :--.sidential sweeping zones for remaining two sweepers to cover during the day over 9-day cycles, 24 times a year. Remaining 0:wo weeks and "loth day" { should be spent sweeing State Highways to produce revenue... six is ! -103- � Discontinue routine patrols of hand debris collection and redu=e staff size by attrition. Assign crews to other street maintenance activities and pick up debris through a radio call-in procedure followed by all public works crews. i if the program managers do not feel these reductions can be made without shifting seweping program costs to other non-user programs or maintaining an acceptable level of service, then the potential service levels between force account and contract work are not great enough to justify an additional cost of $145,000 annually to the city. I 10. CENTRALIZE AND A*ITOMATE AM VEHICLE MINTENANCE FUNCTIONS TO INPROV_ aERVICE AND REDUCE COSTS (1) Improve Scheduling And Cost Accounting Identify information and ADP hardware r _;:ds. (2) Transfer Vehicle Ownership And Staff To General Service: Negotiate priority seruicinq with all department managers and City Administ)ator. -104- M r. Parks and. Recreation, Harbors 6 Beaches, pool cars • sh. culd be transferred first, Fire and Police later. All new purchasas should be owned by Vehicle Maintenance Division. Leave present Police and Fire vehicle Maintenance 1 staff and facility at present location for service operations, or study the feasibility of servicing police vehicles at the Civic Center. Schedule all Fire and Police overhaulu and -aajor repairs through Central Garage. { (3) Reduce Equipment Fabrication Program And Contract Out Major Heavy Equipment Repairs (4) Establish Vehicle Rental Rates Establish hourly rental rates for each cuss of vehicle once full costs of purchase, operation, maintenance and replacement are known.. Use rates for budgeting, monthly billing and work order billing purposes. Summarize costs by program monthly and charge back to user department. (S) Establish Equipment Purchase And Disposal Procedures • (6) A Conceptualization of Information now Requiremens- Is Shown In Exhibit Xix Following This Page 11. IMPLEMENT COST CONTROL PROCEDURES FOR BUILDING AND GROUNDS MAINTENhNCE (1) Charge Back Full Costs For Work Orders Reduced demand for capital improvements should permit more maintenance tire. (2) Inventory Maintenance Needs And Develop Schedules By Building i Get bid estimates and compare to force account labcr costs. Schedule contract work when cheaper. Develop maintenance scheduleu for work to be accomplished by city force account by building by crew (3) Reclassify Some Specialized Maintenance Position Classifications To Maintenance Technician To Achieve Greater Assignment F exibi itj And Staff Utilization Now that city growth and facility expansion has levelled, fewer r.nstalfations of improvements are needed. -106- j Mxuw�r xlx IrY.iaws::s Ercb • IIs�ela�eol d r�.ea,wwia CONL'MUALIZATV)N OF INFORMATION FLOW FOR AUTOMATED VEHICLE MAWENANCE SVSTFaI I!+1PUT PROMS Oul"T IMME�IiOIIr w ElllENEE SiMFLLE TOT"NVIN,Jmv ----... COCT COMM 1lONtaUNMET MAL WfT Mrsw CMAaa.TO Y41kfaw 1 AIiOCAT'iONS . laTatS4.."lACIMaNTaIiOCRTIC71a ✓ FIIOQRAAa VEMICLE SNEFTL[ . ra«KL*s>«uaa . o�aTTnesawaTsawrlsaswTvs►acu TnTAL AIMML wC1YKaTTMa 0001"M T a A7 46ML WMAL Okla a fted2m n w11DS"OCATWO _AMIwMi w W WIATwa • AOMINtSTRAT10NAdW `� aALANUANDsaMiaPMCO , ;OTALaIONTMLVCIIARQESFOR EOUM INT EYOGET aunsarr 10118TAL W9M VEHICLE RENTAL tV Pr.611Ais . a�+uwtawwwatoaTs VEHME FILE EQUIPMENT ft&KACW*t&T EASE FH t REFSACLUCHT MMICYLIS AILOCATIOW to"Yuman . PINICMASE AND OSPOSAL OATA wawa ANSalloaal • 11lCQaf1E1WEOSEIIVICESCMEDYLES -ACTYALSAKTICMno oan scan . sawrea scwouus 'I -T�f•PMa1lawCr ---�. COST PER VEIMCLt TO1PAMi:AdN • StRVWA SAIO REPAIR cmim IS UPW ATE FILE ANOOKFAtt um%m a AMf wn,AYo frwn - SEMM SCHEOULI EV INHEk MI oaTa ROMANCE P"nCow a cum"TT -VEHICit _artowa em a waif _ -w1IMIaaIIIar 1 coot -PdI11TEA%&3UPKKTW[WD . PARTS AND SYPKV OROEIIS -� PARTS ANDSLI!!lY S�irRFKE ��`. Mr:Ts AMD SIIP!L.lS CONIIIISEO . Ie�ISAs.aw ANDOIIOEWEO . cwV411M11T -OUAMTITV 1 �'aa -COST can M�erwa g Uiat�Moa a�.orAe. -SI MK% II :a aarfaR • VP VAMII Tiff co" -DcLrARV Can . fLWft*VEEDOWWAIMN --------r EwL.OVEESWILE VOLOntur&. ATIOM • MIkM11a11 • 1alAlMCA1MaWMMaa v �.T 1 • I ! • i 1! i � _ __ •_ i __ i • i l• i � i • I i � I i � Electricians, as an exception, should maintain their classification. Reduce through attrition and transfer As necessary. (i) Establish Buisling Rental Rates Charge for all maintenance work on a square foot utilisation *-axis, including utilities. Request aquare footage allocatior. by program of departments for billing purpesas. 12. FUTURE STREET TREE HAINT}MANCE COSTS COULD BE AVOIDED THROUGH AN AGGRESSIVE_ PROGRAM, OF PROPERTY OWNER EDUCATION AND MAINTENANCE Program Managers should conduct a trial permit program in selected areas of the city that should include: A :sail-ant brochure offering free tree planting in the right-of-way fra:ting the owner's property if the owner will rsquest and sign a permit to maintain the tres once pia.&ted. Agreement would also cov%r replacement of it dips with a similar tree or repaving the resulting hole. The planting of low maintenance type trees. The use of Federal money, where possible. -19?- i,,, • i i I* 1 M 1 • 1 1 6 1 10 1 i 1 it a 1 ! a The division should develop a public information brochure to' be distributed in property owners' m. it boxes during trimming operations of trees already planted, explaining; The purpose of the trimming and the bene- ficial effects on the health of the trees. The need for property owners to share in the maintenance of t%e trees in the Dwediate right-of-way area. Trimming in- ructions for small and inter- mediate-sized trees. 13. EXPAND WATER WELL PRODUCTION AND INSTITUTE QUALITY CONTROL MEASURES TO AVOID FUTURE COSTS OF WATER OPERATIONS (1) Continue The Present Emphasis On Capital Expansion Of Ground Water Cappab litY If Cost Justified I Develop a ten-year projection comparison of source utilization costs at prezent level of production and importation of MWD watez. Project population growth and via-,a. Project operational costs based on past trends. Project necessary rate increases. Develop a ten-year projection comparison of utilize- ' tion costs at expanded level of production and reduced level of importation of MWD Water. Use same base assumptions for growth. ..r.Yra ti:3rr...+iirliiYii+ -���tr...�r°a.s.� ..-�.r---''---' -�r •s•.�•• 1 Project capital outlay and amortization costs. Project necessary rate increases. (2) Expand Distribution Crowns To Improve Capital Installation Capa lty (3) Rtguire Contractors To I *all Cit Purchased And Stocked Water Meters This should reduce costs through b;Ak purchases and reconditioned meters. As a quality control measure, this should reduce future maintenance costs. Prevention of early replacement. Prevention of erroneous metering. As an inventory control step, it will allow closer monitoring of meter setting needs to avoid late start-up of billing. (4) Upgrade The Position -)f Pump Operator To Mechanic I To Improve EquiRMent monitoring k � t I � I � 1 � i � i ! � ! i� 1 ! ! •1 1 � 1 i i • (5) Rona otiate The Coo erative Agreement With The Department Of Finance For The Provision 7 Accounting Sere ces If Account ng In ormat on Cannot Be Supp ie In The Future Require and pay for full-time accountant rather than account clerk services if necessary. If agreement cannot be reached, cancel agreements negotiate a direct agreement with Data Processing and hire accounting staff to maintain accounts and keypunch data. 13. ADJUST SPACE UTILIZATION TO IMPROVE EFFICIENCY OF OPERINTIONS (1) Expand EngineerinS Gperations Into The East Corridor on The Grouna Floor Of City Hall Alternative relocation of some staff to vacant fifth floor premises was considered. Ground floor expansion is considered more feasible because: All staff need frequent access to the file plans. The east corridor is an infrequently used entrance to City !call, since main ant",-ance doors are located on three sides of the elevator bank. -ilQ- - � � � � r •r r • � r • a rs � • r • r r • � r • Exhibit XX, €ollowing this page, illustrates a suggested floor plan that would provide adequate space and minimize work disruptions by optimizing traffic patterns. This platy or a yore suitable plan developed by the Departmnt should be cost estimated and proposed to the Council. (2) S ce Beuiren�ents For Tye New Water Yard Should Include Future Sewer Ana Storm Drain Needs The Superintendent and his support staff should be Ic--ated in tbe new quarters. (3) Mchanical Fabrication Egui2ment Should ke Relocated Or Redu—c-e-a To H&ke Room For Centralized V c e tie ntenance Services i I w ■ i I f w t I:xui:rT xx Ilwgwawm aftrb Wpa twom 4 hAk Wwk;. MOPOSED FLOOR PLAN ' FOR EWANEERiNG AND ADMINISTRATM o^TA II rMcm TRAFFIC s l �M ENflMIEiRIMIi � s Y � � � aMOMrEER i ..T plain S! - HIES a NVK'as � CONSTRUCTION = RIGNCTIDN t ALi T ci W vv L �.•J Ema tER REAL .Ilrl!•ERTY i FRONT DESK DESIOM DEMELMAENT w i lUL —__j I I VII. HE=v STEPS I i i i all 1 0 1 1 � VII. NEXT STEPS The recommendations on the Department of Public,Works organization and opera- tions are intended to: Make operators more cost efficient tbrcugh cost reduction and avoidance. Make programs more cost effective by Consolidating similar functiors Improving managevent information for cost-based decision- making Providing more responsive service Make -caff more productive at present costs. A 1. SOME RECOMMENDATIONS WILL REQUIRE MINOR ADDITIONAL EXPENDITURES To ACHIEVE � COST REDUCTIONS ._ Realizing the benefits outlined abode will require some additional expenditures in the areas of staff and data processing equipment. While. the direct and indirect outlays and savings are not que►ntified iii this report, it is expected that savings achieved by implementation of the recommendations will far exceed the additional i t ! t r ` a i costs. The cost increase, reduction and productivity implications of the recommenda- tions contained in Chapter VI are shown in Exhibit XXI, following this page. 2. MANAGEMENT CON-TITMENT TO COST REDUC!'IONS IS ESSENTIAL IF ADDITIONAL OUTLAYS ARE TO BE MADE The intention of this report is to work within existing budget constraints to reduce costs and improve productivity where reasonable opportunities exist. The addition of positions in the Engineering Division without making the accompanying staff transfers and reductions would simply overlay additional staff an an ineffi- cient structure. 3. AN IMPLa~MENTATION SCHEDULE SHOULD BE DRAFTED A1;D SPECIFIC RESPONSIBILITIES ` ASSIGNED TO CARRY OU'i' THE RECOMMENDATIONS. A reasonable timeframe for accomplishing the majority of the recommendations is estimated by the study team to be 12 months. The sequence of ea -h recomsendation is important since some must be accomplished prior to the start of others to ensure success. Sosae pressing concerns are outlined below. -113- v _ • - , � i i! i i i i • 1 M! l � R � t i i t ii Mini? xxI Huntington Death Departnent Of NoWic larks • COST PM PRODl1CTIVITY IMPACT; OF 111E AECOMMMATIONS IorcoaN*ndation Cott Increase Coat Reduction Improved Productivity At Sane cost ORGaMITA_'IOM 1, Rcotganise top manage- Improved overall planning and mcnt service responsibilities 2. Restructure Engineer- . Salary differences ill Reduction of four survey posi- More efficient diatribiti-.)n of inng . Salaries for three positiunt (2) tions workload among 3. Create a utilities hedoc—d cost from equipment and division crew sharirg. 4, R+orgtnLse Maintenan:e See recaa_—.ndations 8, 9. 10. Division It, 12 PROGM-A "cMuAa<Mrr I. Set and review policy Amid inflationary costa of Less tiara consumed by low { priorities delayed projects priority work 2. Develop and implement Avoid potential loss of MWP Staff efforts were clearly project scheduling county morales directed end Scheduled tools 3. Modify program account 'I structure 4. Conduct fiscal Possible redaction of voter Avoid :ewer operations one analysis in-lieu tax to general fund replacement losses Avoid unnecessary equipment and bull-ding Improvement octaars III For %y naces%Qry promotional increases for I . Assistant City Engineer Assistant Traffic Ingireer Field. Design, and DevelrNiment Chinfs 4 (4 Special Project Engineer, nrslstant Ara: property Agent, PAecunt Clerk R EMMSIT xkl (2) e _ Recomwendation Cost Increase cast Reduction Improved Productivity At_Same Cost 5. Implement cost Lass of productive time to time . Genera-le offsetting revenues am-ountirg reporting from otNr fund sources 6. Atstomste c%.st account- capital outla, for hardware and . letter estimating of forcd . Reduce analysis and budgat pre- ing and restrjcture :oftwere accowt. slid ctntraet work paration fire files operating c.apenses . Orderly files will reduce pr. - Reduce !iie search time sect delays. public Itabiliti� and potential sever installation under esjacity 7. Improve e-Ineering cost of case: contract design . Offsetti::j revenues produced . Reduced staff time on design managemen: .Ark from property management drafting an- revisions Avoid potential maintenance . Lesa delay down time costs later A. Improve maintenance . Ra3uce idle crel time Productivity . improve CETA pmJuctivitf i. Reduco ctreet main- . Avoid higher cost contract . Lesa crew dose time through tenance Mato paving irproved scheduling . Avoid untimely street f1li2++ram and repaving cysts . Reduce street cleaning costs by 514J.WO 10. Otntralite vehicle setter ey'lipment utilisation a: Bore efficient scheduling with maintenance fever vehicles a larger crew . Watract repairs performed at lower costs . Liver operating costs through scheduled maintenance and replacement 11. Improve r111ding and . Lower costs through contracting Less down time of fourneywen arousals cost crc::rol= for spucialised but occasional through greater assignment work flexibility Eliminate unnecessary building 3.mprovewents Create: offaetting cr.arga back reMenUe3 Reduction of sevvral inursxy- men positinas P � EXHIBIT XXI (1) • Arcommendatton Cost Incrrasu cost Reduction IsLnmved Productivity At Same Mat 12. Encourage neighbor- Coat of materials and wailings Avoid future maintenance costs hood maintenance of same or increased budget for street trees trees 13. Expand well proauc- cost of additional yell drilling. Avoid higher cost MiG supply tion and =rstallctinn installation crew and equipment Avoid future mainter,ncc :oatst capacity lost revenue and higher contract costs 14. Adjust space utili- Minor cos. of -_xpansicn into lass interruption of engineering tatior unoccupied space staff activities I ' . fit i r t lot (1) Immediate Decisions Are Required On Some Recommendations Program account structure changes should be made prior to the beginning of the new fiscal year on June 30, 1978. Since this will require Financial Department cooperation, staff co=mitments must be made soon. Negotiations are in progress to acquire a Cite for the Joint Powers Fire And Police Heliport ::nd Garage. This report recommends centralization of all depart- men-'�al vehicle maintenance at the Corporation Yard garage as a means of improving productivity and reducing costs. Planning for space requirements at the new Water Facility and Yard will soon coam--nce. This report recommends that sewer and stoma drain operations be relocated from the Corporation Yard to this facility, which will require additional space. (2) Implementation of Some Recommendations Should Precede Others To Assure Success Manning for izno_ementation should take into consideration the following milestones. Program account modifications should precede crganizational changes. � -1i4- Management should strive to make program account changes prior to the start of the new fiscal year; if this canact be accom- plished, then minor channes to allow charge back accounting and consolidation rjt fund accounts should at least be completed. Modification of budget requests or author- ! izations to reflect 30 day starting balances for fund accounts and reduced operations i where recommended should be accomplished. Automate vehicle maintenance records and summarize building maintenance records by coat center to derive unit costs. i Once unit costs are known, transfer anticipated annual expenditures Lack to user department programs. Proceed with other program accounting modifications. i (2) Create X2Z Management Positions And Temporarily Fill Them Until Permanent Replacements Can Be Recruited Public Works Director should write position der�-- _p- tions of key positions. Permanent replacements should write position descrip- tions of their key supervisor positions and proceed with reorganization. -115- (3) Assign And Monitor Implementation Efforts For Remaining Recommenda- t rns For Management Procedures (4) Complete Reorganization And Procedural Recommentations In Time To Submit A Revised Budget Request For F'x I i i I i 1 APPERDIX A i • 1 ! Or 1 ii s • t • 1 l • ! i• i • i i i s �D ! R • i APPENDIX A-1 F1S76ZTI1iGVM BEACH DEPAR'1IGM CIF PUBLIC V RXS INTERVIVS CONDUt.IED BY STCfiY TaAH TITLE HIM PUBLIC WORKS DEPARTMENT Public Wr-rks Director Hartge Administrative Aide Whipple avatar Superintendent 8levatorski Field Supervisor McCrea Meter P-egair Foreman Chambers Production Crew Leader Winwlow Water Inspector Ballwin City Engineer 8anboay Design & Development Division Engineer Lacher Development Engineer Civil Engineering Association Killer Construction Inspection Chief Percy Construction Inspector Plate Su*vep Supervisor Boucher Survey Crew Chief Boardman Traffic Fngineer Leyva Maintenance Superintendent Division Engineer Kiser Mechanical Maintenance Supervisor Pittillo Mechanical Maintenance Crew Leader Danks Mechanical Maintenance Records Clerk Herman . Sheet, Tree s Landscape Supervisor Smith Street/Tree Crew Leader Sian Oeffelen o Lan4scape Crew Leader Norton Plan decker Hirao Street Maintenance Supervisor William o Street Maintenance Crew Leader Norton Building Maintenance Supervisor Stafford Sewer Maintenance Supervisor Welborn — Ych.. ar ---- 1 � ! i � I � i �1 l 4 i E • `1 � I • i • i I • I lit APPENDIX A-1 (2) TITLE NME 07HER MANAGEMENT STA" Cit. ASministrator Belsito Deputy City Administrator Harlow Pljtt--=-iug Department Director Selich Personnel Department' Director Thompson Data Processing Chief Bra-lett Purchasing office- liar Finance Director Arguello Assistant Director of Finance Ho--ton Assistant to the City Administrator (2) Matthews Cohoon COUNCIL Mayor Pattinson Councilman Sicbert Councilman Coen Councilman Shenkman Councilman Bartlett Councilwoman Gibbs ` ! • t t • ! t• f � 1 •t f • t t • ! 1• f •1 ! 4 ) t � APPENDIX A-2 HUNTINGTON BEACH DV'.RTME1RT Or PUBLIC WORKS PUBLIC WOR1C9 EXPENDITURES BY TYPZ AND YEAR FISCA?a YEARS 1971-IS78 1971 1972 1973 1974 IS75 1976 1977 1978 ~� i I. h:MENDITURESe i Salaries a eenetiti $1,358.400 1.628.744 1,887,769 2,I60,378 3,373.680 2,651.707 3,096,949 3.SI9,835 . Operating Expeaaei 706,200 B7S,582 947,293 1,940,563 1,716,280 . 1,006,595 2,004,130 10709.609 . General Fund Capital Outlay 134,000 24,194 545,822 132,850 23,175 87,496 - - . Revenue Sharing Capital Outlay 1226,927) (227,000) General Fund Totals $2,194,000 2,528,520 3,320,874 4,239,891 4.113,135 3,745.708 5.101,087 3*229,454 General Fund s Revenue Sharing Totals easre same rtaim same sase sus% 5,329,014 5.506,454 III. GEREPURL FUttD TOTAL 10,738,906 13,781,541 16,569,699 10,543,895 21,451,239 23,329,616 28,222,345 30,976,571 Ir. PERCENTAGE OF GENERAL FUND 20.41 19.3 20.4 22.9 19.2 16.1 la.l 16.1 ' From prior Year eapenditurer in authorised budget requ=sta. wcluitz eiwenditun s for rotor engineering and maintenance. •• Authorised budget I Ir ! I f t 1 • i fr ATIMMIx A-3 HiNfTIfM,M EEAOI QEAARTNENT OF MO LIC MOHM a AOJt1F'MOM TO REFLECT ACTUAL DW MENDITURES 5-Year 9ASIZ II Uveraga A+r+ual 1971 1972 1972 1974 1975 1976 1977 197afe Increase I. GMVATI1IG !70 MICS S 706,200 675,582 947,282 1,940,663 10716/290 10006959E 2,034,138 1,709,609 Other Departmental Utilities* (364,000) (427,000 (494,400) (617,000) (879,140) (243,763 (843,Mo (7009000) lmwrat Omryed back - - - - 31,---A 119.434. 265,448 440,000 WTAL 342,200 448,302 "1,863 103230567 B6R,946 Su'266 1,421,S86 1,u9.609 II. TW%L SAIARIBS no OPERATING NXPM DITURM $1,701,60Q 2,077,125 2.349,6S2 3,483,941 3,242,625 3,533,973 4,S1B,536 4,969,454 III. PESCMAGZ Or GZKZML FUH' 15.8% 1S.1 14.2 16.6 LS.1 L5.1 16.0 16.0 IV. 7ML SRLARIL-S, OPERATING i>O=MTt81SS AND CRPrTAL OOlIAYS a ee $1,836.000 2,101,320 2,89S,474 3,622,791 3,265,900 1,621,459 4,745,462 5,246,454 16.3% • Iscludes street lightimq (for pears 71-75). civic cent*r/other mnicipai huildinga. pumpraerer. exclsdes traffic signal a corporattom yard. •e WAsod appropriation. 2118M •e• 6scludes water expenditures. f ..� APPFMIX A-! ..uKrINGT N Briz! DBPAmpmer of PUB.= w was AxnysIS of GZ:pEQ:: ru mD DpbpATM 21 '" I I FOR VMZAW m W a AM WIMT0U%MCE AC MTISS PIsm YEAR, 1977 Engineering And corporation AduLnistration Yard 'Dotal Dollars Percent Dollars Percent Dollars Percent OUS?116- BUOGET S 158,179 100% $1,963,747 100% $2,O21.926 100% Estimated Miniwn Suppliss 17,000 10.5 625,404 33.5 642,400 31.0 Estimated Minion= Oantracts 16,000 11.3 251,00O 13.5 269,OOC 13.3 Utilities 34,O0O 21.2 8a.0O0 45.5 882,000 43.6 Materials for Other Depm,rtments (net) - - 59.000 3.1 59,0W 2.9 Assainder (discretionary) 90,279 57.0 8O,347 4.3 17O,5" a.' • Estimated siinium to sleet mandated, saf=ty. basic operationsm excluding other cosssmnications. publications, stwlies. etc. I l t • i i ! • ! # i #! i ! t � t ► r � � APP6li0•Sx A-5 D"Aldla ' of ME=iROM SELECM L D ITM CALMUR Tun 1973 14�4 19?5 1976• 1977 S. Ef1GilIF�RIIIG 1. itaysloprtnt Plan Checks ngroYaMnt l26 4a5 - Grading Pesults eaviered DevslOpamt Zeiss 704 1.007 GcadLng 41 Osrtificats of Occupancy ?%LVLWZ 1,332 1,09 Deeds Drafted 205 390 2. Construction YMMetion . Cask contracts 75 30 20 . Subdir'w.'wn Pariahs, Public MighO-of-May 25 21 26 . Encroacbsent Permits i.200 676 791 . harbor P*mttz is a fftreet "I*Afay Pewits 36 36 Pool bond 214 371 Certificate, cl occupancy issuad 1e400 l.s24 3. . Pest oz elevation Staked 6. Wood Abatessat Owolaints Amwered 339 226 Acres Cleaned ICityfPrivatey 780 657 S, Traffic "Lneering . Signal Service calls 749 687 . Aaquest for Service 452 459 6. Design Cash Contracts Designee! - Nigh-ar, Street, utility 21 - Fark 11 i - Asseaesent Distzicts 3 1 • 1974 Auelget Aaquest •• Annual a-pnrtn .� s tTT'94 OLE'6! Z�li� "Otter IN'iwV] ' 90T't MOOT W"id mp2w • ON SI`•t 006't PslOord sgu" tt!'tT 0004ST POA•sds sass= mot ars t saTw:.g :ai 1548WIft - TOt•E W941 ►6t•t �Qoi• SUMa 3141301t KC'T O!C 96C ONOT Pswotd sssA; T29 Sta'I C3t'T COT ¢s4x=11t3 sssa,} 0001ST Matt It661P., 00E49' 4—T3,i weft" • 7 ZEZ •C m GET uTaat &-i "MM 9E ►C aT*d&t emn3 mKnt • a•S 9 PaPP4l =MMAS 10 "TTlt CTC to[ t0C Sic oat MSDU yamS )O 861TM LCS'tt MICE + isli 30l t+OIIal*a "Tilt qZN - 00C'St a0C'tL S►a'a► 00019C 00040t Adams is"a sstTK 4=N - 9604K TO!'iC 00006 PamOd i01 02"k iwm WE 4t•t 011 Pau+ai s01M q=0 ai�v43 ' VOL US Psgaitj sugt, t19/tct SC9/1*1 sqw nl=ad soltM • TICT/% CLah6S •sdt, loans • tw/►f "L"/LL t clu (obwugt/o4ot i) sAvt"Ao twea.-o�uru�3aTg1 isuAS 't 3ii�i3LMIlAi 'CI • w LL6t 069L5T osSL6I ►L6t %tLGT 1t) S-Y 7tI41t8d�1f t • I ! � e � i � i � 1 ! � � !� 1 � i �1 ! � f 1 � RYPCMD19 wo511) 1971* 1974 VMS& 1976•0 1977 Ix. PAIM (continued) 4. Mechanical Mainsteaaice Vehicles and Equipment 300 230 2" 296 3:2 S. Building Maintenance York Orders 2,040 2,500 2,500 102M wildings Maintained 94 % 146 Lights Maintained 600 96S 96S 1.000 '-II. YRI;R 1. lhtsr Line Poet Installed 1S,867 8,332 I l _ i ® i !�' i � i O� � t • 1 1 O ! M t 4 f O 1 ! O ! !O AYPD41X A-6 Huntington Bead+ DWKRLMIIN OF PUELIC WDOWS a FFAMYEEMV Pr 1978 EX-9,WDiTtl,� rM STMMI CLEMING OPEW.T10"S OF ITPE Total 1�ata1 rY 79 Including Power Power }land Present Parking mod" swan is Yactor flahris Debris Program Control Control CXgEE7fDZTt11lS Salaries =4 tanalits S I10,420 20,126 37,4S7 44.56b = 202.563 32.000 ; Za4,5G9 1laintaaaQce 24,384 1,533 7,212 1,560 34,6b9 34,687 Special ;u 1106 13,000 2,Q00 - - 15,900 15.800 Capital Dotlarl . Depreciation 41,973 11.875 7,411t 3,"B 64,836 . seplaaawnt Capital 41,875 1'.,975 7.418 3.668 64,836 j 64,836 I TOTAL 221,554 48,209 59,509 53,462 382,730 52.000 414.730 i 'S Traffic Ccnt.rol AavenU882 30,000 30,000 State Hig".wiay Wabo sevant2 30,000 - 8.000 - - JB,iXlO tMAL 30.000 9.000 32,000 30.0w b8,000 wr COCT I91,554 48,209 51,5:.5 S3.442 344,730 22.000 3X,729 I. Annualised over 8 Year 117* average. 2. Eatimted from 3 month, billing. ' r APPENDIX A-7 Huntington Boach FEPArM(MV OF PLMLEC WOPM COMPARISON OF V=iICLE XAINTL VVXE At]'nMRIBED POSITIONS AND VEHICLE COUNTS BY TYPE HUNTINGTON BEACH SANTA AM Had*ra Total Fire Police Garage Beaches Staff Supervisor 1 1 .5 Foreman/Crew Leader I 1 2 4 1 - - Welders 2 2 1 Senior Mechanier 2 1 1 4 1 Equipment Mechanic 11 2 2 1 5 8 Equipmnt Mechanic III 3 Service men 2 2 6 Records Clerk .5 14 1.5 Y' Stores 1 1.5 302 5.5 3 � ^aOTAL 4 5 14 2 25 22.5 Total Zbtal " Equip.6 Fa_uip.6 ,.` Vehicles Maintained Vehicle Vehicle Mbtorcy cles - 14 - - 1�3 43 Light Vehicles 9 58 191 26 284 301 Heavy Equipment 12 - 85 6 103 124 Miscellaneous Equipment 9 - 46 15 70 217 30 72 322 47 471 685 ' CETA . * 1 CETA ,, ►- i # # l I �# 1 ! # { I� I 11 t C �PF�x�sx x—a {• -- Huntington Beach - WPAR MEW OF PUBLIC Worms CITrWIM VEHICLE 11AIHTE LNCE r.LW—,k3IC:S IY 7a CERTRAL GARAf.EWr Harbors i Mechanical Equi?aent machanicai Engim Car e Authorimd E3p2nditures Fire Polito Beaches Haintenanoa wainttnance Fabrication Twpair Pool Eoay Repair :ctal ' Persamsl 8S.700 66,000 46.000 110,885 78,2G9 4S.194 40,CS1 : 472,099 llain0etancel 71.5002 89.!;003 28.0774 72.3085 71.700S 61.1705 31.500S 2.7815 12,94' 441.477 `r SAL r_4 s 914.376 lievinnws ({=►�s:7aback} (31,S00) `" -pat Lapinw al i rat 1. zxclulmn fuel Costs. 2. AcComt ! 103. 304 }= 3. Account 1 320 ` 4. AccouRt.0 340, 341, 343. 344, 346, 348 S. A=Cnt 4 430, 431, 432, 452, 433 fly- t=r-- APPENDIX 1-9 Huntington B"Ch OEPRRM iT OF PL1E= WOOS RMALYSIS OF B167I01M AND GAOIMM MAMTRANCE APPROPRIATIONS WJDGCT--FY 78 BUDGET TRAHSI`SRS TO DAZE TO*PLL Other t2EMriated Outs Ina Ins I. PUBLIC WORKS BUILDING AND GROUNDS MINTEMANCE BUDGET. . Salaries and banefits $5",000 - _5�4� 4.000 Operations 1,176.000 (25,000) 960500 60000 1.253,500 Utilities 1978000 597,000 cmtracts 220,000 16,500 236,500 Naintenanae 245,C00 (25.000) 60.000 6,000 286,000 Svpplies 114#000 2e:.000 134,000 TOTAL BUDGET 1,720.000 (25,00a) 96,500 6,000 1,797,500 Charges to other deparbesnts (419,000) (71,500 715.00 - (419,000) Het Public Works Budget 1,301,VA (96.500) 168,000 6,000 1,3780500 V� II. CHARM BACKS TO flMR DEPARTHRM 419 000 III. O:BER DE29RTMM* MIMING a GROUNDS NhINTMUME DLTAMT Harbors a Beach Naintenance 37,800 (11000) 36,800 Fir* W.tenance 12,800 (5,000) 7,800 TOTAL 50,600 (6,000) 44,600 IV. TOTAL BUDGET/GROUNDS MAINTERMCE $lt842,100 *Includes vark order charge back accounts only. 1 APPENDIX A-10 Huntington Beach DEPARTYIM OF PUBLIC WORKS ILTZ*-TR1ITIOM OF AIR.-UM, CAPITAL PF=CTS SCHEDULE Girt at of wwr weds - SrNie Mama G"&3we+a4 an .. 02Z- A CAPflX s JECTS S+OWAULE VA 0 Pory 1 _ems PROJECT suftet J it $ C M D .i F 6l A M J q! ev Il, BJiRl011 Fa10 71 S ! S I ry ra—rc 1. Bulkhead ! St. End AWae Al f. 30000 I C tnc 2. Tieber tilt lospectioR ritm 6,000 1c 3. Reconstruct Copiops %akoam 70.000 I >1 ! C U.S.C.E. Pewit 3. Replace Pier tight.Systaea Mvidsm 50,000. C S. bach Stabilization r Safety 71600 I C 6• ao!911baa Ptais ao t• Mwifton 1,460 C Subtotal 49.l60. !. DR!<1l11 MEWECTS 1. Storm Drain tip. PrWam Mvtdftsm 10,000 Ic 2• 541000 FM.Drai >A Al t. 10 I C tratf orzts 3. iacuint V. cknaa 5.000 I C redtractor 4. MIDs�Oty Wood a Rain Al 0. -Nrja R C S. Irvina4laycrest Stem Dralio Webb 63.SW 0 Subtotal M.Sw ±EL ommi © cORSt 9100109 1MAM PEP.MHTS c $ppsa to SHT.L OF 7 C-City ) -' 0-0ther ) Design t APPENDIX A-11 Huntington Beach DEPARTi+ W OF PUBLIC WORKS I:.LUSTRATION OF MNTHLY PROJECTS REPOT PMIC WM KrAsllM IONA SWIG* dr+ktivs1 c sstiebta 1t1Mb Does tlarll M_ H?R I ... _ t,.r.a.t projacts. tWils r s ' 1.Oealyl t�NMea toll M1p 'stmjwla -- J1 �h al ItaM ?.torw as I�r wove!Ws loot. thew.byte !i pNl ,rs ba�ell sat i.Taq�lattly lrsl st.falNialael liver to lhs t s.irtYo.ail lfla tlala jStaralitll.16�r1� �- 1b t;.Malart•aalaaa Ms+s-LMt1y :t1M.Mt 39 "t I a.lseyart i1M.R11*eMt ksa. SWMAIil � !0 Awlt ?.tMaaaRl AR.ilrart tM. �tUN ?11 Most .111Mn1 r lariti n .illia.Orr �i 1 o.4110..hoot hsui1P bw st w 1 ltcp tl.Otsastsr Assltawes 4rNll4r► At.Tsa.itats. M - li I 4 ! I l.UNUI ima tnwlt ftu Irole.Oatcr Gent. zmaato As•iktlh 1111.1 W Gent. 3.t'?%..A stwo @ws AtLo t laltaO �Oatar Gtwt. dat 4.619 C^trnnmr a PURI". COMA.S.Msito sm s"Itim C"to"s sun ,ima I pera+ 1 M l i.11tll tlas Td.Phm It shve.GrIffith if toy 1 3 1111 ftfk slove.ftwWontl if 11gt s•Mrsth Orion HrR tow.60013m►a le A�rll >tilawta 4.tas�ectlsa 11naa Eton laws iagr. April i i.faenat tiatlalA�lhtat 1.1lt.blrCo 60 sprit } �:swR*-lute* traal[wi liwi, �al 1 l.Sraad coral p 1Ana 1Mratr to+s �~ Rlas i-d , 1Q.1at.[sl.t W. Allm r