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Home My WebLink About1996-09-16 City Council (38)City of Palo AI o C ty Manager’s Rep r TO:HONORABLE CITY COUNCIL FROM: AGENDA DATE: SUBJECT: CITY MANAGER DEPARTMENT: City Manager September 16, i996 CMR:383:96 Commercial Telecommunications Staffing Request REQUEST This report requests that Council approve adding one new Full Time Equivalent (FTE) staffposition in the Electric Utility in FY 1996-97 that will assume general responsibility for the Electric Utility’s commercial telecommunications activities. The costs associated with this FTE were included in the Telecommunications Program report approved by Council on August 5, 1996. Because of the need to accelerate the deployment of the telecommunications infrastructure for interested customers and because the requested staffing has already been conceptually approved by Council, staff recommends that this request not be referred to the Finance Committee. RECOMMENDATIONS This report recommends that the City Council 1.) Approve the addition of one new Full Time Equivalent staffposition in the Electric Utility in FY 1996-97 that will assume general responsibility for the Electric Utility’s commercial telecommunications activities, and 2.) Approve a Budget Amendment Ordinance requesting the transfer of $112,000 from the Electric Rate Stabilization Reserve for the salary, benefits, furniture, computer equipment, and training for the new staff position in Commercial Telecommunications and the reallocation of $30,000 within the Electric Fund to the Telecommunications Program for administrative costs. CMR:383:96 Page 1 of 4 POLICY IMPLICATIONS On August 5, 1996, the City Council authorized the Electric Utility to implement a positioning strategy, involving the development of fiber optic infrastructure to be co- located in conduit and on poles with existing Utilities’ communications lines for the purpose of leasing fibers to interested parties (CMR:361:96). As was indicated at that time, one Full Time Equivalent (FTE) staffposition is needed in FY 1996-97 to assume general responsibility for the Electric Utility’s commercial telecommunications activities. No staff is available to oversee the telecommunications program and market services on a continuing basis. These activities must be initiated as soon as possible to have a successful program. The report also indicated that a second FTE may be necessary for the operation and maintenance of the system after installation has been completed (beginning in FY 1997- 98). Utilities has temporarily assigned current Engineering/Operations staff to begin the design and construction phase. An analysis of the needed operation and maintenance activities of the fiber system has been made and this FTE will not be requested. This work will be absorbed by existing staff. The fiber project is being financed by funds made available from the Electric Rate Stabilization Reserve and the reallocation of funds within the Electric Utility budget. Staff proposes that the costs associated with the recommended FTE also be financed initially by funds from the Electric Rate Stabilization Reserve, as described in the Budget Amendment Ordinance included as Attachment 1. The resulting change to the Utility Department’s Table of Organization for 1996-1997 is presented in Exhibit A. EXECUTIVE SUMMARY When the City embarked on the Telecommunications Strategy Study, staff recommended evaluating several options. These options ranged from a "do nothing" approach, requiring no additional effort or staffmg, to the City becoming a full telecommunications service provider, requiring extensive staffing and resource additions. Given that, the study was considered a one-time activity that staff handled by employing a standard approach: reassigning priorities and utilizing consultant support. Now that the study is completed and in order to successfully implement the commercial CMR:383:96 Page 2 of 4 cations positioning strategy appro,v.ed by_the City Cu~.~]. ~~~.W FTE staff position is needed ~trl~g~a~~f3~ te~unications activities. The-newFTE’sresponsibitities witlinclude: Coordinate the design and construction of telecommunications facilities. Evaluate additional telecommunications infrastructure development opportunities. Investigate potential partnering opportunities. Develop pricing and marketing strategies designed to limit risk exposure and make optimal use of the Electric Utility’s telecommunications facilities. Actively market the Electric Utility’s commercial telecommunications facilities. Negotiate and write contracts for the lease of the Electric Utility’s telecommunications facilities. Coordinate joint marketing efforts directed toward end users on behalf of telecommunications service providers leasing the Electric Utility’s telecommunications facilities. Keep abreast of technological, business, legislative, and regulatory developments in the telecommunications industry. Analyze and prepare reports on legislative and regulatory activities. Prepare and deliver testimony to support the Electric Utility’s position at various regulatory arenas. Represent the Electric Utility on external agencies’ committees, task forces, and working groups. After three consecutive years of reducing staff and the budget, the Utilities Department concluded that there is no available authorized staffto perform these duties on a continuing basis. Any shift of personnel to avoid adding the FTE will be harmful to the operation of other assignments in the organization. To facilitate the necessary staffing, Human Resources recommends that the current classification of Senior Resource Planner be utilized at this time. Human Resources will examine the need for a reclassification and CMR:383:96 Page 3 of 4 POLICY IMPLICATIONS On August 5, 1996, the City Council authorized the Electric Utility to implement a positioning strategy, involving the development of fiber optic infrastructure to be co- located in conduit and on poles with existing Utilities’ communications lines for the purpose of leasing fibers to interested parties (CMR:361:96). As was indicated at that time, one Full Time Equivalent (FTE) staff position is needed in FY 1996-97 to assume general responsibility for the Electric Utility’s commercial telecommunications activities. No staff is available to oversee the telecommunications program and market services on a continuing basis. These activities must be initiated as soon as possible to have a successful program. The report also indicated that a second FTE may be necessary for the operation and maintenance of the system after installation has been completed (beginning in FY 1997- 98). Utilities has temporarily assigned current Engineering/Operations staff to begin the design and construction phase. An analysis of the needed operation and maintenance activities of the fiber system has been made and this FTE will not be requested. This work will be absorbed by existing staff. The fiber project is being financed by funds made available from the Electric Rate Stabilization Reserve and the reallocation of funds within the Electric Utility budget. Staff proposes that the costs associated with the recommended FTE also be financed initially by funds from the Electric Rate Stabilization Reserve, as described in the Budget Amendment Ordinance included as Attachment 1. The resulting change to the Utility Department’s Table of Organization for 1996-1997 is presented in Exhibit A. EXECUTIVE SUMMARY When the City embarked on the Telecommunications Strategy Study, staff recommended evaluating several options. These options ranged from a "do nothing" approach, requiring no additional effort or staffing, to the City becoming a full telecommunications service provider, requiring extensive staffing and resource additions. Given that, the study wasconsidered a one-time activity that staff handled by employing a standard approach: reassigning priorities and utilizing consultant support. Now that the study is completed and in order to successfully implement the commercial CMR:383:96 Page 2 of 4 ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1996-97 TO PROVIDE AN ADDITIONAL APPROPRIATION FOR THE TELECOMMI!NICATIONS PROGRAM AND INCREASE THE LOAN FROM THE ELECTRIC FUND WHEREAS, pursuant Go the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 24, 1996 did adopt a budget for fiscal year 1996-97; and WHEREAS, on August 5, 1996 Council approved funding for a new Telecommunications Program to promote the formation of a competitive market for commercial telecommunications activities in Palo Alto; and WHEREAS, the addition of one new, regular full time equivalent staff position is required to assume responsibility for the success of commercial telecommunications activities; and WHEREAS, to fund this position, an increase in the loan from the Electric Fund to the telecommunications program is required; and WHEREAS, some of the needed funds come from the Electric Rate Stabilization Reserve and some will be reallocated from other Electric Utility operations accounts to the telecommunications program; and WHEREAS, City Council authorization is required to amend the 1996-97 budget and the 1996-97 Table of Organization as hereinafter set forth. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION i. The sum of One Hundred and Forty Two Thousand Dollars ($142,000) is hereby appropriated to the functional area Commercial Telecommunications in the Telecommunications Program. This appropriation includes a $103,000 appropriation to salaries, a $9,000 appropriation to non-salaries, and a $30,000 appropriation to allocated charges. This appropriation shall be funded as follows: a. The sum of One Hundred and Twelve Thousand Dollars(S112,000) is hereby transferred from the Electric Rate Stabilization Reserve to the appropriation for the functional area Commercial .Telecommunications; and b. The sum of Thirty Thousand Dollars ($30,000) is hereby reallocated within the Electric Fund to the functional area Commercial Telecommunications. SECTION 2. The transactions described in section 1 will reduce the Electric Rate Stabilization Reserve from $14,881,600.to $14,769,600. SECTION 3. The sum of One Hundred and Forty Two Thousand Dollars ($142,000) is hereby reserved in the retained earnings of the Electric Fund for the Telecommunications Program. SECTION 4. The attached Table of Organization as amended to reflect changes shown in Exhibit A is hereby approved. SECTION 5. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 6. The Council finds that the appropriation of funds does not constitute a project under the California Environmental Quality Act. Environmental review for the Capital Improvement Project has not been completed at this time. This Council action makes expenditure of funds expressly contingent upon completion of an environmental review. SECTION 7. As provided in Section 2.04.350 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Deputy City Administrative Department Manager, Services Director of Utilities a. The sum of One Hundred and Twelve Thousand Dollars(S112,000) is hereby transferred from the Electric Rate Stabilization Reserve to the appropriation for the functional area Commercial Telecommunications; and b. The sum of Thirty Thousand Dollars ($30,000) is hereby reallocated within the Electric Fund to the functional area Commercial Telecommunications. SECTION 2. The transactions described in section 1 will reduce the Electric Rate Stabilization Reserve from $14,881,600.to $14,769,600. SECTIQN 3. The sum of One Hundred and Forty Two Thousand Dollars ($142,000) is hereby reserved in the retained earnings of the Electric Fund for the Telecommunications Program. SECTION 4. The attached Table of Organization as amended to reflect changes shown in Exhibit A is hereby approved. SECTION 5. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 6. The Council finds that the appropriation of funds does not constitute a project under the California Environmental Quality Act. Environmental review for the Capital Improvement Project has not been completed at this time. This Council action makes expenditur9 of funds expressly contingent upon completion of an environmental review. SECTION 7. As provided in Section 2.04.350 of the Palo Alto Municipa! Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: EXHIBIT A TABLE OF ORGANIZATION - UTILITY FUNDS Adopted Budget 1996-97 Changes Equipment Operator Executive Secretary Field Serviceperson, W-G-W Gas System Shop & Field Repairer Gas System Technician Heavy Equipment Operator Industrial Advisor, Utility Marketing Services Inspector, PW/WGW Instrumentation Electrician Lineperson/Cable Splicer Lin.eperson/Cable Splicer-Apprentice Lineperson/Cable Splicer-Lead Manager, Competitive Assessment Manager, Electric Operations Manager, Utility Marketing Services Manager, Resource Conservation Manager, Resource Planning Manager, Supply Resources Manager, Utilities Operations W-G-W Manager, Utility Rates Mechanical Unit Repairer Meter Reader Meter Reader, Lead Office Specialist Power Engineer Program Coordinator, Resource Conservation Residential Advisor, Utility Marketing Services Resource Conservation Field Representative Resource Conservation Field Specialist Resource Conservation Representative Resource Planner 2.00 2.00 0.00 0.00 3.00 9.00 0.00 3.00 1.00 10.00 0.00 4.00 1.00 1.00 1.00 0.00 0.00 1.00 1.00 1.00 2.00 6.00 1.00 0.50 3.00 0.00 1.00 0.00 0.00 0.00 7.00 Adjusted Budget 1996-97 2.00 2.00 0.00 0.00 3.00 9.00 0.00 3.00 1.00 10.00 0.00 4.00 1.00 1.00 1.00 0.00 0.00 1.00 1.00 1.00 2.00 6.OO 1.00 0.50 3.00 0.00 1.00 ,0.00 0.00 0.00 7.00 EXHIBIT A TABLE OF ORGANIZATION - UTILITY FUNDS Adopted Budget 1996-97 Changes Resource Conservation Technical Specialist Senior Engineer Senior Power Engineer Senior Programmer Analyst Senior Resource Planner Staff Secretary Supervisor, Electric Operations Projects Supervisor, Electric Systems Superwsor, Shop & Field Services W-G-W Superwsor, Systems Operations/Scheduling Superwsor, Utilities Computer Services Supervisor, Utilities Customer Service Center Supervisor, Utilities Meter Reader & Field Serv. Superwsor, W-G-W Superwsor, Water Meter Cross Connection Superwsor, Water Transmission Systems Operator/Scheduler Truck Driver Utilities Accounting Technician Utilities Credit & Collection Specialist Utilities Engineering Estimator Utilities Field Service Representative Utilities Installer Repairer Utilities Installer Repairer, Assistant Utilities Installer Repairer, Lead Utilities Rate Analyst Utilities Locator Utilities Market Specialist Utilities Market Analyst Utilities Systems Technician Utilities Key Account Representative 0.00 5.00 3.00 1.00 1.00 8.00 0.00 5.00 1.00 0.00 1.00 1.00 1.00 4.00 1.00 1.00 0,00 1.00 1.00 1.00 3.00 6.00 14.00 2.00 5.00 1.00 1.00 2.00 2.00 2.00 2.00 1.00 Adjusted Budget 1996-97 0.00 5.00 3.00 1.00 2.00 8.00 0.00 5.00 1.00 0.00 1.00 1.00 1.00 4.00 1o00 1.00 0.00 1.00 1.00 1.00 3.00 6.00 14.00 2.00 5.00 1.00 1.00 2.00 2.00 2.00 2.00 EXHIBIT A TABLE OF ORGANIZATION - UTILITY FUNDS Adopted Budget 1996-97 Changes Water Meter/Cross-Connection Technician Water Transmission Operator Water Transmission Operator, Lead Water Transmission Specialist Water Transmission Specialist-Lead Total Utilities Department 2.00 0.00 0.00 2.00 1.00 206.50 1.00 Adjusted Budget 1996-97 2.00 0.00 0.00 2.00 1.00 207.50 4 EXHIBIT A TABLE OF ORGANIZATION - UTILITY FUNDS Resource Conservation Technical Specialist Senior Engineer Senior Power Engineer Senior Programmer Analyst Senior Resource Planner Staff Secretary Supervisor, Electric Operations Projects Superwsor, Electric Systems Supervisor, Shop & Field Services W-G-W Supervisor, Systems Operations/Scheduling Superwsor, Utilities Computer Services Superwsor, Utilities Customer Service Center Supervisor, Utilities Meter Reader & Field Serv. Supervisor, W-G-W Superwsor, Water Meter Cross Connection Supervisor, Water Transmission Systems Operator/Scheduler Truck Driver Utilities Accounting Technician Utilities Credit & Collection Specialist Utilities Engineering Estimator Utilities Field Service Representative Utilities Installer Repairer Utilities Installer Repairer, Assistant Utilities Installer Repairer, Lead Utilities Rate Analyst Utilities Locator Utilities Market Specialist Utilities Market Analyst Utilities Systems Technician Utilities Key Account Representative Adopted Budget 1996-97 0.00 5.00 3.00 1.00 1.00 8.00 0.00 5.00 1.00 0.00 1.00 1.00 1.00 4.00 1.00 1.00 0,00 1.00 1.00 1.00 3.00 6.00 14.00 2.00 5.00 1.00 1.00 2.00 2.00 2.00 2.00 Changes 1.00 Adjusted Budget 1996-97 0.00 5.00 3.00 1.00 2.00 8.00 0.00 5.00 1.00 0.00 1.00 1.00 1.00 4.00 1.00 1.00 0.00 1.00 1.00 1.00 3.00 6.00 14.00 2.00 5.00 1.00 1.00 2.00 2.00 2.00 2.00