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HomeMy WebLinkAbout1999-11-22 City Council (12)TO: FROM: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL 10 CITY MANAGER DEPARTMENT:ADMINISTRATIVE SERVICES DATE:NOVEMBER 22, 1999 CMR: 421:99 SUBJECT:INFORMATION TECHNOLOGY STRATEGIC PLAN AND IMPLEMENTATION PLAN INCLUDING A BUDGET AMENDMENT ORDINANCE IN THE AMOUNT OF $80,327 FOR PHASE ONE OF THE IMPLEMENTATION PLAN RECOMMENDATION Staff recommends the City Council: Approve the attached Budget Amendment Ordinance, amending the Table of Organization and appropriating $80,327 from the Utility Funds for the implementation of Phase One of the Information Technology Strategic Plan (Attachment B); o Approve the attached resolution amending the Compensation Plan for Management and Confidential Personnel and Council Appointed Officers ( Attachment C). Direct staff to return with an update on the status of Phase One of the IT Strategic Plan and the initial recommendations for the implementation of Phase Two, including proposed funding requirements, as part of the 2000-01 Budget. BACKGROUND At the Finance Committee meeting of October 5, 1999, the Information Technology (IT) Strategic Plan and the proposed Phase One Implementation Plan were reviewed. The findings and recommendations in the IT Strategic Plan fall in four key areas: hardware, network, software, and organization and staffing strategies. Staff proposed implementing the IT Strategic Plan in two phases. Phase One focuses on the critical organizational and CMR:421:99 Page 1 of 3 staffing components of the Strategic Plan and includes the addition of three positions and the reclassification of a number of other positions. The Finance Committee directed staff to return with a Budget Amendment Ordinance (BAO) amending the Table of Organization and appropriating additional funding from the Utility Funds for the staffing changes proposed in Phase One. DISCUSSION This report transmits the IT Strategic Plan; the Phase One Implementation Plan; and, the BAO amending the Table of Organization for the new and reclassified positions in Phase One. The BAO requests an appropriation of $80,327 from the Utility Funds for its portion of the costs for the new and reclassified positions. The BAO is accompanied by a resolution amending the Compensation Plan for Management and Confidential Personnel and Council Appointed Officers for the organizational changes in Phase One. As discussed with the Finance Committee, the costs for the implementation of Phase One were estimates and since that time, the costs have been further refined. The costs for Phase One have changed by $2,893 from the information that was reviewed by the Finance Committee. The total costs for Phase One are detailed in Attachment D. Staff plans to return with a status of Phase One and with funding recommendations for Phase Two as part of the 2000-01 Budget. RESOURCE IMPACT A Budget Amendment Ordinance (BAO) in the amount of $80,327 from the various Utility Funds is requested to fund the reclassification of existing-Utilities Department technology staff, as part of the consolidation with Administrative Services, and the reclassification of several existing Information Technology Division positions. The BAO also includes minor support costs for the new positions. Specifically, the reclassification of 6 existing Utilities Department positions results in direct costs funded by Utility Funds of $19,793. The BAO also includes $60,534 in indirect costs funded by various Utility Funds through the Cost Allocation Plan. This amount reflects costs apportioned to the Utility Funds for the reclassification of several existing General Fund positions. The remaining $189,566 in funding for the implementation of Phase One of the Strategic Plan is available in the City Manager’s Contingent Account. A placeholder of $200,000 was included in the 1999-00 Adopted General Fund Budget for this purpose. The breakdown of these costs is included as Attachment D. CMR:421:99 Page 2 of 3 Ongoing yearly costs associated with the implementation of Phase One will be approximately $451,000, of which $318,000 will be funded by the General Fund and $133,000 by the various Utility Funds. ATTACHMENTS Attachment A - Attachment B - Attachment C - Attachment D - Attachment E - Attachment F - Information Technology Strategic Plan and Phase One Implementation Plan (CMR 374:99), without attachments Budget Amendment Ordinance Exhibit A - General Fund Table of Organization Budget Amendment Ordinances Impacting General Fund Reserves Approved to Date in 1999-00 Budget Amendment Ordinances Impacting Utilities Rate Stabilization Reserves Approved to Date in 1999-00 Resolution Amending the Compensation Plan for Management and Confidential Personnel and Council Appointed Officers. Cost Estimate for Implementation of Phase One of the IT Strategic Plan PREPARED BY:Rod Massey Manager, Information Technology DEPARTMENT HEAD: CITY MANAGER APPROVAL: CARL Y~-- Director, Ndmilri~ive Services JUNE FLEMI City Manager CMR:421:99 Page 3 of 3 TO: ATTENTION: Attachment A City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL FINANCE COMMITTEE 2 FROM:CITY MANAGER DEPARTMENT:ADMINSTRATIVE SERVICES DATE:OCTOBER 5, 1999 CMR: 374:99 SUBJECT:INFORMATION TECHNOLOGY STRATEGIC PLAN AND PHASE ONE IMPLEMENTATION PLAN REPORT IN BRIEF In order to ensure that the City of Palo Alto continues to provide its citizens with services that are efficient, high quality, and effective, staff recognized that it was necessary to evaluate current information systems needs and organizational structure, and to develop an Information Technology (IT) Strategic Plan. To that end, staff hired The Warner Group to analyze the application and use of information technology and assist in the development of the IT Strategic Plan. Working with staff, The Warner Group has completed the development of an IT Strategic Plan for the City, consisting of findings in four key areas: hardware, network, software, and organization and staffing. Staff plans to implement the IT Strategic Plan in two phases. This report transmits the findings contained in the IT Strategic Plan, and details the first phase of the implementation plan. In addition, this report requests that the Finance Committee direct staff to return to the Council with a Budget Amendment Ordinance and any other needed actions to begin to implement Phase One of the IT Strategic Plan. CMR: 374:99 Page 1 of 9 RECOMMENDATION Staff recommends the Finance Committee: 1.Review and comment on the Information Technology Strategic Plan and the proposed Phase One Implementation Plan detailed in Attachments Two through Six; Direct staff to return to the City Council with a Budget Amendment Ordinance (BAO) to amend the Table of Organization to add three new positions; effect various reclasses; and appropriate an additional $81,000 from the Utility Funds. A resolution changing the compensation plan for the implementation of Phase One of the IT Strategic Plan will accompany the BAO; and o Direct staff to return with an update on the status of Phase One of the IT Strategic Plan and the initial recommendations for the implementation of Phase Two, including proposed funding requirements, as part of the 2000-01 Budget. BACKGROUND The City of Palo Alto is well recognized in the Silicon Valley and around the world, and has earned a reputation for applying state-of-the-art technology in innovative ways to enhance the delivery of government services.. For example, the City was a pioneer in developing a presence on the World Wide Web and maintains one of the most extensive and highly accurate Geographic Information Systems worldwide. To ensure services provided to its citizens are efficient, high quality, and cost-effective, the City of Palo Alto needed to evaluate its current information systems needs and organizational structure and develop an IT Strategic Plan. Such a Plan is critical to the development of a cohesive, citywide information technology strategy that fully addresses organizational, personnel, operational and technology issues. The City sought the assistance of a management consulting.firm to develop the City’s IT Strategic Plan. In 1998, the City selected The Warner Group because of its information technology expertise and its experience in working with local governments in the development of strategic planning documents. For the last year, The Warner Group has worked with a citywide team to: Gather information on the City’s existing technologies, infrastructure and computing environments ¯Identify and analyze the City’s information technology requirements ¯Examine current and emerging technological products CMR: 374:99 Page 2 of 9 Make recommendations regarding the development and/or acquisition of software and hardware to meet the needs identified Determine staffing and organizational requirements for an effective information systems function ¯Develop management techniques for implementing major citywide projects Establish an effective information systems planning process, including a method for communicating projects, tasks, schedules and priorities with City departments DISCUSSION The efforts of staff and the consultant have culminated in the development of a comprehensive IT Strategic Plan for the City (Attachment One). The Plan has findings and recommendations that fall in four key areas: hardware, network, software, and organization and staff’mg strategies. The IT Strategic Plan recommendations range from those that are highly specific (e.g. how to improve backup power capacity), to broad- based recommendations regarding the consolidation of hardware, sofb0vare, and staffing resources. A prioritized list of the recommendations can be found in Appendix F of the Plan. Following the completion of the IT Strategic Plan, staff developed an implementation plan. Proposed Implementation Plan The implementation plan breaks down the Strategic Plan recommendations into specific tasks and actions. Staff is proposing the Strategic Plan be implemented in two phases. Phase One covers the critical organizational and staffing components of the Plan. Phase Two addresses the hardware, network, and software components of the Plan and the remaining organizational and staffing requirements. The primary focus of Phase One is to create an information technology organization that is flexible, customer service oriented and priority-driven. This phase.includes key organizational structure changes; a proposal for new staff as well as certain reclassifications of current staff; and several important increases in the level of service provided to City departments. Phase One provides an important foundation, which will be built upon during the second phase of the Plan. This report provides a proposal for the components to be included in the Phase One implementation plan. Staff plans to return with a status report regarding the implementation of Phase One and with recommendations for the implementation of Phase Two as part of the 2000-01 Proposed Budget. As a result, only a brief outline of the anticipated components of Phase Two are included in this report (Attachment Seven). CMR: 374:99 Page 3 of 9 Due to the extensive recommendations to be addressed in Phase Two, and the time it is expected to take to implement them, staff expects that there .will be additionalresource requests in future budget years beyond 2000-01. Some of these will represent additional expenses, while others are requests that would have been expected as part of the ongoing operations of the Information Technology function, and as. such, are not driven by the IT Strategic Plan. Phase One Implementation Plan The details of the Phase One implementation plan are shown in Attachments Two through Six and provide the proposed organization of the Information Technology function and the estimated costs for Phase One. The components included in Phase One are implemented first because they address the critical needs and vulnerabilities that currently exist within the City’s information technology function. The major components of Phase One are as follows: 1.Consolidation of IT positions throughout the City into one centralized function 2.Reorganization of the City’s IT Division 3.Increase in services provided to City departments Each of these three components is discussed in detail below. Consolidation of IT Staff." IT staff are currently located in three primary departments (Administrative Services, Utilities and Police). As a result, there are a. number of redundant and disparate IT activities and processes in the City. For example, technical support calls (Helpdesk calls) are currently handled in three separate ways. The decentralization of resources also leaves the City with limited backup support for the City’s technical infrastructure, its mission critical systems (those systems affecting public safety and the delivery of utilities) and its business critical systems (those systems essential to City business operations). For example, the City has one staff member familiar with the existing network infrastructure. If that individual were to be unavailable (due to illness, vacation, new job) during a technical crisis, it could have a significant impact on the City’s mission and business critical operations. Finally, the fragmentation of resources makes it difficult to establish and maintain a cohesive, enterprise-wide strategic vision for technology within the City. In order to effectively address the issues caused by decentralization of the IT function, the IT Strategic Plan recommends a consolidation of resources into the IT Division of the Administrative Services Department. The Director of Administrative Services and Manager of Information Technology have worked with the Police Chief, Director of Utilities and their staff to develop an effective transition plan for the consolidation of the currently decentralized IT staff. This will require the reclassification of selected IT positions (Attachment Three) in order to reflect changes in job responsibilities and to CMR: 374:99 Page 4 of 9 ensure compensation parity. Staff is currently resolving issues surrounding the consolidation of staffing, specifically for those positions represented by a bargaining unit. Staff proposes returning with more information when this staff report is forwarded to the City Council for final approval. Reorganization of IT: There is a critical need to reorganize the Information Technology Division. The current organizational structure was found to have deficiencies in the following areas: Customer service and relationship management; ¯Program and project management; ¯Technology infrastructure development and support; and ¯Recruitment and retention. The Strategic Plan indicates that the current organizational structure lacks a needed focus on customer service and the management of customer relationships. For instance, calls for telephone support are handled through a separate point of contact from calls for personal computer support. In addition, no central responsibility has been assigned for developing, monitoring and managing departmental service level agreements. (Service level agreements identify and define the scope of services provided to each department in addition to reporting requirements, key contacts, problem resolution and review processes, performance metrics, quality of service commitments, and customer satisfaction monitoring.) Also, the current organizational structure is oriented towards application development. Today, IT organizations are evolving from a "build" software development orientation to a "buy" (i.e., implementing pre-built third party applications from software vendors) orientation. This means that more emphasis is placed on project management, needs assessment, and contract management skills. The City’s IT organization needs to acquire and develop these new skills and processes. The current organizational structure provides a fragmented approach to the development of the City’s technology infrastructure (e.g., voice, video and network hardware and software). The current organizational structure is organized based upon technology rather than around the organization’s business needs. For example, voice infrastructure development and support is separate from data infrastructure development and support, and enterprise systems (e.g., email, network administration, etc.) administration is fragmented into separate support based on the type of operating system technology (e.g., Unix or NT). In the future, with the convergence of infrastructure technologies, it will be critical that.these efforts are coordinated and managed strategically and with a central point of focus. The City’s current approach limits knowledge transfer, increases organizational training costs and creates critical vulnerabilities in the support and maintenance of technology infrastructure. CMR: 374:99 Page 5 of 9 Finally, for the past several years the City has had difficulty recruiting and retaining qualified IT staff. The dramatic shortage of qualified IT staff combined with the competitive technical job market within Silicon Valley underscores the need for the flexibility in the hiring and promotion of existing staff. As a result of these organizational deficiencies, staff is proposing the reorganizatidn of the IT Division into three key groups or "centers of excellence" as noted in Attachment Four. These three groups are IT Project Management and Application Services, Infrastructure Services and Client Services and Operations. The IT Project Management and Application Services Group will focus on project management, application consulting and support, and vendor and contract management. The Infrastructure Services Group will focus on telecommunications and networking infrastructure development and support and enterprise systems administration. Client Services and Operations will focus on customer relationship management, help desk!call center activities, PC and telephone support, daily computer operations (e.g.£ daily system backups and printing), service level management and office automation services. The proposed staffing allocations in these functions are shown on Attachment Five. Staff also requests the ability to hire and promote between the Systems Analyst and Sr. Systems Analyst classifications. Increase Service Levels: With the recent implementation of a new computer-aided dispatch (CAD) System for Police and Fire, there is an immediate need for IT support services 24 hours a day, seven days a week (24 by 7). As additional City processes are automated and new information systems are added (e.g., Utilities Customer Information System, Fire Rostering System, etc.), the need for expanded coverage will continue to grow. The consolidation of IT resources and the reorganization of the IT Division will provide the resources necessary for the provision of 24 by 7 IT support. The Strategic Plan identifies several critical resource needs. A Senior Systems Analyst is needed to support the implementation and maintenance of new and existing public safety systemS such as the Public Safety CAD System, the Police Records Management System (RMS), Fire RMS, Fire Rostering, and Police Mobile Computer Terminals. Second, a Senior Systems Analyst is-necessary to implement, support and maximize the effective use of existing office automation applications such as MS Office, Exchange and Outlook, as well as planned new office systems such as imaging and document management and workflow. Finally, with the continued emphasis on "buy vs. build" (the implementation of third-party vendor software applications and systems rather than custom development by internal staff) there is a critical need for contract management oversight. This emphasis on contract management, combined with the current lack of administrative support within the IT Division creates a need for an Executive Assistant position. The implementation of Phase One provides a number of benefits for the City. These include: CMR: 374:99 Page 6 of 9 ¯Support for mission and business critical systems (i.e., police, fire, utilities systems); ¯Appropriate support for office automation systems used citywide; ¯Coordinated, efficient responses to calls for service; ¯Reduction in redundancy in staffing and skills among departments; ¯The ability to provide Twenty Four by Seven (24 by 7) coverage to the City; and ¯Clearly defined service level agreements for City departments that will allow departments to know what service levels to expect. Many of these benefits will begin to be realized very quickly and the implementation of Phase One of the Strategic Plan should result in immediate improvements in the services provided to departments: ALTERNATIVES TO STAFF RECOMMENDATIONS The IT Strategic Plan describes significant needs and potential resource allocations in order to fulfill all of the recommendations from the Plan. Council could direct staff to implement Phase One only of the Plan and return in another year with a status report detailing the accomplishments achieved with the resources allocated through Phase One. This would delay the initiation of Phase Two of the plan an additional six months. Delaying Phase Two would further delay the implementation of new City systems such as document management, GIS-enabled work management and an electronic commerce- enabled web site necessary to ensure the effective and efficient delivery of existing City services and provide the foundation for new City services in the future. In addition, critical vulnerabilities in the City’s technology infrastructure would continue to exist that have the potential to impact current City business operations. Finally, delaying Phase Two would reduce the City’s ability to support and maintain the City’s technology systems in the most effective and cost efficient manner possible. RESOURCE IMPACT The proposed staffing component for Phase One for the remainder of the 1999-00 Fiscal Year, as shown on Attachment Six, is anticipated to cost $186,000 for the General Fund and $81,000 for the Utilities Funds. The General Fund 1999-00 Adopted Budget included $200,000 for implementation of the IT Strategic Plan. Funds of $81,000 for the Utility Funds are available in the various Utility Rate Stabilization Reserves. As discussed above, staff is-working on various personnel related issues related to the consolidation of three IT functions into one centralized function. As such, a BAO and specific costing for Phase One are not included at this time. Upon direction from the Finance Committee, staff would return to the Council with a BAO, amending the Table of CMR: 374:99 Page 7 of 9 Organization and if needed, a resolution amending the compensation plan. The yearly ongoing costs associated with the implementation of Phase One of the Strategic Plan are approximately $445,000, of which $312,000 will be funded by the General Fund and $133,000 by the various Utility Funds. An estimated breakdown of these costs is included in Attachment Five. It should be noted that while the reporting relations for the Utility Department Information Technology personnel will change with the approval of Phase One of the IT Strategic Plan, staff recommends moving the budget from the Utilities Department to the General Fund as part of the 2000-01 Budget. There will be no change in the total costs as a result of this change, simply a change in the Table of Organization and a reallocation of funds from the Utility Funds to the General Fund. The BAO would also include minor support costs for the new positions. As discussed above, staff recommends initiating implementation of Phase Two of the Information Technology Strategic Plan be considered as part of the 2000-01 Budget. POLICY IMPLICATIONS Phase One of the IT Strategic Plan supports a numberof program elements of the Comprehensive Plan. These are detailed in Attachment Eight. The elements supported are primarily in the Governance and Transportation chapters of the Comprehensive Plan and are in the areas of providing technological support and assistance to facilitate the flow of information for different issues. TIMELINE Elements of Phase One of the implementation plan will begin upon Council approval and be completed prior to June 2000. Phase Two of the implementation plan is projected to initiate with the start of the next budget year (2000-2001) and to be completed as funding permits. ATTACHMENTS Attachment One: Attachment Two: Attachment Three: Attachment Four: Attachment Five: Attachment Six: Attachment Seven: Attachment Eight: Information Technology Strategic Plan Phase One Implementation Plan Components Proposed Position Changes and Additions Proposed Functional Reorganization for the IT Division New Organization Chart for the IT Division Cost Estimate for Implementation of Phase One Outline of Phase Two Implementation Plan Components IT Program Elements Supported in the Comprehensive Plan CMR: 374:99 Page 8 of 9 PREPARED BY:Rod Massey Manager, Information Technology DEPARTMENT HEAD:~_--~_ ..- ~""-- .... ~Direct~r, Ad~e Services CITY MANAGER APPROVAL: ~~ ,~./ ( ~IUNE FLEMING ~i~ Manager CMR: 374:99 Page 9 of 9 Attachment B ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1999-00 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $80,327 FOR THE INFORMATION TECHNOLOGY STRATEGIC PLAN AND PHASE ONE IMPLEMENTATION PLAN WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 28, 1999 did adopt a budget for fiscal year 1999-00; and WHEREAS, to ensure services provided to its citizens are efficient, high quality, and cost-effective, the City of Palo Alto decided to evaluate its current information systems needs and organizational structure and develop an Information Technology (IT) Strategic Plan; and WHEREAS, the Warner Group was selected to develop the IT Strategic Plan because of its information technology expertise and its experience in working with local governments in the development of strategic planning documents; and WHEREAS, the estimated costs for the Phase One Implementation is $189,566 for the General Fund and $80,327 for the Utility Funds. There is currently $200,000 in the General Fund Contingent Account set aside for implementation of the IT Strategic Plan; and WHEREAS; there will be future year General Fund and Utility Funds ongoing costs as a result of negotiated salary increases; and WHEREAS, City Council authorization is needed to amend the 1999-00 budget as hereinafter set forth. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION i. The sum of Two Hundred Fifty.Thousand One Hundred Dollars ($250,100) is hereby transferred from the sources described in Section 2 and appropriated to the following General Fund budget accounts: a.$217,100 is transferred to Contingent Account. the General Fund Salary b. $33,000 is transferred to the Administrative Services Department, Application Support Functional Area. SECTION 2. The funds described in Section 1 are transferred from the following sources: a. $189,566 is transferred from the General Fund Non-salary Contingent Account. $60,534 is appropriated and transferred from unappropriated estimated Utilities revenues, as follows: $24,313 from Electric Fund $12,157 from Gas Fund $ 2,796 from Refuse Fund $ 4,697 from Wastewater Collection $ 5,157 from Wastewater Treatment Fund $ 8,208 from Water Fund $ 3,206 from Vehicle Equipment SECTION 3. This transaction will have no impact on the General Fund Budget Stabilization Reserve. SECTION 4. The sum of Nineteen Thousand Seven Hundred Ninety Three Dollars ($19,793) is hereby appropriated to the Salary Contingent Account in the Utilities Administration and the revenue is correspondingly increased. SECTION 5. The sum of Eighty Thousand Three Hundred Twenty Seven Dollars ($80,327) is hereby transferred from the reserve funds hereinafter described, to the allocated charges in the Utility Funds and Internal Service Fund. The amounts so transferred are from the following funds, which will be reduced by the amount listed: From:To:Amount Electric Supply RSR Electric Supply $31,207 Electric Distribution RSR Electric Distribution $2,545 Gas Supply RSR Gas Supply $7,137 Gas Distribution RSR Gas Distribution $9,838 Refuse RSR Refuse $2,796 Wastewater Collection RSR Wastewater Collection $6,719 Wastewater Treatment RSR Wastewater Treatment $5,157 Water RSR Water $11,722 Vehicle Equipment Retained Vehicle Equipment Earnings $3,206 Total $80,327 SECTION 6. The appropriation transfers approved by Section 5 will reduce the following reserves: From:To: Electric Supply Rate Stabilization Reserve $12,190,000 $12,158,793 Electric Distribution Rate Stabilization Reserve $6,582,000 $6,579,455 Gas Supply Rate Stabilization Reserve $3,556,000 $3,548,863 Gas Distribution Rate Stabilization $4,470,250 $4,460,412Reserve Refuse Rate Stabilization Reserve $4,739,500 $4,736,704 Wastewater Collection Rate $7 132 750 $7 126 031Stabilization Reserve .... Wastewater Treatment Rate $3 241 000 $3 235 843Stabilization Reserve .... Water Rate Stabilization Reserve $6,389,500 $6,377,778 Vehicle Retained Earnings $9,697,830 $9,694,624 SECTION 7. The attached Table of Organization is hereby amended to reflect changes shown in the attached Exhibit A. SECTION 8. As specified in Section 2.28.080(b) of the Pa!o Alto Municipal .Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 9. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmenta! impact assessment is necessary. SECTION i0. 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 Director of Services Administrative Exhibit A TABLE OF ORGANIZATION - GENERAL FUND Adjusted Adopted Actuals Budget Budget 1997-98 1998-99 I999-00 Changes Adjusted Budget 1999-00 ADMINISTRATIVE SERVICES DEPARTMENT Accounting Assistant 2.00 Accounting Specialist 12.00 Accounting Specialist-Lead 4.95 Assistant Director of Administrative Services 1.00 Assistant Storekeeper 1.00 Buyer 1.45 Computer Operator (a)1.00 Contracts Administrator 3.00 Coordinator, Computer Services 1.00 Data Entry Operator 1.00 Director of Administrative Services 1.00 Deputy Director, Administrative Services 0.00 Executive Assistant (b)0.00 Executive Secretary 1.00 Financial Analyst 2.00 Manager, Accounting 1.00 Manager, Budget 1.00 Manager, Communications & Personal Comp 0.00 Manager, Computer Operations & Applicatio]1.16 Manager, Data Comm. & Telephone Services 1.00 Manager, Information Technology Services 1.00 Manager, Investments, Debts, & Projects 1.00 Manager, Purchasing & Contract Admin.0.95 Manager, Real Property 1.00 Manager, Technical Support (c)1.00 Office Specialist 1.00 Personal Computer Technician (a)3.00 Programmer Analyst (d)1.00 Senior Accountant 4.00 S~nior Buyer 1.00 Senior Financial Analyst 7.00 Senior Systems Analyst (c,e,f)3.00 Staff Accountant 3.00 Staff Secretary 3.00 Storekeeper 3.00 2.00 12.00 4.95 1.00 1.00 1.45 1.00 3.00 0.00 1.00 1.00 0.00 0.00 1.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.95 1.00 1.00 1.00 3.00 2.00 4.00 1.00 7.00 3.00 3.00 3.00 3.00 2.00 13.00 3.95 1.00 0.00 1.45 1.00 3.00 0.00 1.00 1.00 1.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.95 1.00 1.00 0.00 3.00 2.00 4.00 1.00 9.00 3.00 3.00 3.00 4.00 -1.00 1.00 -1.00 1.00 -2.00 7.00 2.00 13.00 3.95 1.00 0.00 1.45 0.00 3.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.95 1.00 0.00 0.00 4.00 0.00 4.00 1.00 9.00 10.00 3.00 3.00 4.00 Exhibit A TABLE OF ORGANIZATION - GENERAL FUND Supervisor, Data Processing (c) Systems Analyst (d,f) Telephone Technician Warehouse Supervisor Adjusted Adopted Adjusted Actuals Budget Budget Budget 1997-98 1998-99 1999-00 Changes 1999-00 1.00 1.00 1.00 -1.00 0.00 6.00 6.00 6.00 -1.00 5.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 TOTALS 79.51 80.35 81.35 3.00 84.35 Footnotes: (a) Reclassification of 1.0 Computer Operator, 1.0 Personal Computer Technician. (b) Addition of 1.0 Executive Assistant as part of the IT Strategic Phase One Implementation. (c) Reclassification of 1.0 Manager, Technical Support and 1.0 Supervisor Data Processing to 2.0 Senior Systems Analysts. (d) Reclassification of 2.0 Programmer Analysts to 2.0 Systems Analysts. (e) Addition of 2.0 Senior Systems Analysts as part of the IT Strategic Phase One Implementation. (f) Reclassification of 3.0 Systems Analysts to 3.0 Senior Systems Analysts. Exhibit A TABLE OF ORGANIZATION - UTILITY FUNDS Adjusted Adopted Actuals Budget Budget 1997-98 1998-99 1999-00 Changes Adjusted Budget 1999-00 UTILITIES DEPARTMENT Administration, Electric, Gas, Wastewater Collection and Water Account Representatives 4.00 4.00 Administrator, Utilities 1.00 1.00 Assist. Director, Utilities Administrative Serv.1.00 1.00 Assist. Director, Utilities Operations/Eng.1.00 1.00 Assist. Director, Utilities Resource Mgmt.1.00 1.00 Associate Power Engineer 0.00 0.00 Business Analyst (a)2.00 2.00 Cathodic Technician 1.00 1.00 Cement Finisher 1.00 .1.00 Chief Electric Under~ound Inspector 1.00 1.00 Chief Inspector W-G-W 1.00 1.00 Coordinator, Utilities Projects 3.00 3.00 Customer Service Representative 3.00 3.00 Customer Service Specialist 3.00 3.00 Director of Utilities 1.00 1.00 Electrical Systems Dispatcher 5.00 0.00 Electrical Undergound Inspector 1.00 1.00 Electric Utilities Compliance Technician 0.00 1.00 Electrical Assistant I 1.00 3.00 Electrician 14.00 15.00 Electrician-Lead 6.00 6.00 Engineer 5.00 5.00 Engineering Manager, Electric 1.00 1.00 Engineering Manager, W-G-W 1.00 1.00 Engineering Technician III 8.00 8.00 Equipment Operator 2.00 2.00 Executive Secretary 2.00 2.00 Field Serviceperson, W-G-W 0.00 0.00 Gas System Technician 3.00 3.00 Heavy Equipment Operator 9.00 9.00 Inspector, PW/WGW 3.00 3.00 Instrumentation Electrician 1.00 0.00 Lineperson/Cable Splicer 10.00 10.00 Lineperson/Cable Splicer-Lead 4.00 4.00 Maintenance Mechanic 2.00 2.00 Manager, Manager, Manager, Manager, Manager, Manager, Manager, Manager, Competitive Assessment Electric Operations Field and Customer Service Utilities Marketing Services Supply Resources Utilities Information System Utilities Operations W-G-W Utilities Rates 1.00 1.00 1.00 1.00 0.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 4.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 1.00 1.00 1.00 3.00 4.00 3.00 1.00 0.00 1.00 2.00 3.00 13.00 6.00 5.00 1.00 1.00 8.00 2.00 2.00 0.00 3.00 9.00 3.00 0.00 10.00 4.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 -1.00 4.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 4.00 3.00 1.00 0.00 1.00 2.00 3.00 13.00 6.00 5.00 1.00 1.00 8.00 2.00 2.00 0.00 3.00 9.00 3.00 0.00 10.00 4.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Exhibit A TABLE OF ORGANIZATION - UTILITY FUNDS Adjusted Adopted Actuals Budget Budget 1997-98 1998-99 1999-00 Changes Adjusted Budget 1999-00 UTILITIES DEPARTMENT Administration, Electric, Gas, Wastewater Collection and Water Manager, Utilities Telecommunications Marketing Engineer Meter Reader Meter Reader, Lead Office Specialist Personal Computer Technician (b). Public Relations Manager Power Engineer Resource Planner Senior Engineer Senior Field Services Representative Senior Market Analyst Senior Power Engineer Senior Resource Planner Senior Systems Analyst (c) Senior Utilities Systems Technician (d) Staff Secretary Supervisor, Electric Systems Supervisor, Shop & Field Services W-G-W Supervisor, Utilities Customer Service Center Supervisor, Util Meter Reader & Field Serv. Supervisor, W-G-W Supervisor, Water/Meter Cross Conn. Supervisor, Water Transmission Systems Analyst (a,c,d) Truck Driver Utilities Utilities Utilities Utilities Utilities Utilities Utilities Utilities Utilities Utilities Utilities Utilities Utilities Accounting Technician Credit & Collection Specialist Engineering Estimator Field Service Representative Installer Repairer Installer Repairer, Assistant Installer Repairer, Lead Rate Analyst Locator Key Account Representative Market Specialist Market Analyst System Operator 1.00 1.00 6.00 1.00 0.50 0.00 1.00 3.00 5.00 5.00 0.00 2.00 3.00 2.00 0.00 0.00 8.00 5.00 1.00 1.00 1.00 3.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 6.00 15.00 2.00 5.00 1.00 1.00 2.00 0.00 2.00 0.00 1.00 1.00 6.00 1.00 0.00 0.00 1.00 3.00 5.00 4.00 1.00 2.00 4.00 2.00 0.00 1.00 8.50 5.00 1.00 1.00 1.00 4.00 0.00 1.00 1.00 1.00 1.00 1.00 3.00 5.00 15.00 2.00 5.00 1.00 1.00 2.00 0.00 2.00 5.00 1.00 1.00 6.00 1.00 1.00 0.00 1.00 3.00 5.00 4.00 1.00 2.00 5.00 2.0O 0.00 1.00 8.50 5.00 . 1.00 0.00 0.00 4.00 0.00 1.00 1.00 1.00 1.00 1.00 5.00 5.00 15.00 2.00 5.00 1.00 1.00 2.00 0.00 2.00 5.00 1.00 1.00 1.00 1.00 6.00 1.00 1.00 1.00 1.00 3.00 5.00 4.00 1.00 2.00 5.00 2.00 1.00 0.00 8.50 5.00 1.00 0.00 0.00 4.00 0.00 1.00 2.00 1.00 1.00 1.00 5.00 5.00 15.00 2.00 5.00 1.00 1.00 2.00 0.00 2.00 5.00 Exhibit A TABLE OF ORGANIZATION - UTILITY FUNDS Adjusted Adopted Actuals Budget Budget 1997-98 1998-99 1999-00 Changes Adjusted Budget 1999-00 UTILITIES DEPARTMENT Administration, Electric, Gas, Wastewater Collection and Water Utilities Systems Technician (b) Water Meter/Cross Connection Technician Water Transmission Specialist Water Transmission Specialist-Lead 2.00 1.00 1.00 -1.00 0.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 TOTALS 208.50 211.50 215.50 0.00 215.50 Footnotes: (a) Reclassification of 1.0 Business Analyst to 1.0 Systems Analyst. (b) Reclassification of 1.0 Utilities Systems Technician to 1.0 Personal Computer Technician. (c) Reclassification of 1.0 Systems Analyst to 1.0 Senior Systems Analyst. (d) Reclassification of 1.0 Senior Utilities Systems Technician to 1.0 Systems Analyst. Attachment C Budget Amendment Ordinances Impacting General Fund Reserves Approved To Date in 1999-00 Estimated Beginning Budget Stabilization Reserve (BSR) Balance Adopted Budget Addition to BSR Downtown Urban Design Improvements, CIP 19608 Downtown Parking Structure Feasibility Study, CIP 19530 Salary and Benefit Increases Reuoactive to July 1, 1999 for Management and Confidential Employees City Manager Executive Recruitment Friends of the Palo Alto Library Grant Arts Council of Santa Clara County Grant Palo Alto Art Center Foundation Donation Cost of Sound Wall for Tennis Facility at 3005 Middlefield IT Strategic Plan Downtown Parking Structure Feasibility Study, CIP 19530 Citizens Options for Public Safety (COPS) Local Law Enforcement (LLE) Block Grant ($120,349) (S70,000) ($432,200) ($26,000) ($58,000) ($5,407) ($10,000) ($50,000) ($250,100) ($143,000) ($135,901) ($26,192) S58,000 $5,407 $10,0t30 $60,534 $135,901 $26,192 $189,566 $18,877,888 $1,2914,000 ($120,349) (S70,000) ($432,200) ($26,000) $0 $0 $0 ($50,000) $0 ($143,000) $0 $0 ($432,200) ($317,917) BSR Balance After BAO’s $19,250,339 Attachment D ~ Budget Amendment Ordinances Impacting Utilities Rate Stabilization Reserves Approved To Date in 1999-00 11/18/99 Electric Fund Estimated Electric Distribution Rate Stabilization Reserve (RSR) Balance Customer Information System (CIP 9357) IT Strategic Plan $6,837,000 ($255,000)($255,000) ($2,545)($2,545)($4,213) Total BAOs RSR Balance After BAO’s ($257,545)$0 ($257,545)($4,213) $6,579,455 Electric Fund Estimated Electric Supply Rate Stabilization Reserve (RSR Balance IT Strategic Plan $12,190,000 ($31,207)($31,207)($51,666) Total BAOs ($31,207)$0 ($31,207)($51,666) RSR Balance After BAO’s $12,158,793 Gas Fund Estimated Gas Distribution Rate Stabilization Reserve (RSR) Balance Customer Information System (CIP 9357) IT Strategic Plan $4,534,000 ($63,750)($63,750) ($9,838)($9,838)($16,284) Total BAOs ($73,588 $0 ($73,588)($16,284) RSR Balance After BAO’s $4,460,412 G~-Vund ......................................................................................................................... Estimated Gas Supply Rate Stabilization Reserve (RSR) Balance $3,556,000 IT Strategic Plan ($7,137)($7,137)($11,812) Total BAOs ($7,137)$0 ($7,137)($11,812) RSR Balance After BAO’s $3,548,863 Attachment D Budget Amendment Ordinances Impacting Utilities Rate Stabilization Reserves Approved To Date in 1999-00 11/18/99 Refuse Fund Estimated Refuse Rate Stabilization Reserve (RSR) Balance $4,782,000 Customer Information System (CIP 9357)($42,500)($42,500) " IT Strategic Plan ($2,796)($2,796)($4,689) Total BAOs ($45,296)$0 ($45,296)($4,689) RSR Balance After BAO’s $4,736,704 Wastewater Collection Fund Estimated WWC Rate Stabilization Reserve (RSR) Balance Customer Information System (CIP 9357) IT Strategic Plan $7,154,000 ($21,250)($21,250) ($6,719)($6,7t9)($11,111) Total BAOs ($27,969)$0 ($27,969)($11, ! 11) RSR Balance After BAO’s $7,126,031 Wastewater Treatment Fund Estimated WWT Rate Stabilization Reserve (RSR) Balance $3,241,000 IT Strategic Plan ($5,157)($5,157)($8,649) Total BAOs ($5,157)$0 ($5,157)($8,649) RSR Balance Afler,BAO’s $3,235,843 Water Fund Estimated Water Rate Stabilization Reserve (RSR) Balance Customer Information System (CIP 9357) IT Strategic Plan $6,432,000 ($42,500)($42,500) ($11,722)($11,722) Total BAOs ($54,222)$0 ($54,222) RSR Balance After BAO’s $6,377,778 ($19,387) ($19,387) Vehicle Equipment Fund Estimated Retained Earnings $9,697,830 IT Strategic Plan ($3,206)($3,206)($5,379) Total BAOs ($3,206)$0 ($3,206)($5,379) Retained Earnings Balance After BAO’s $9,694,624 Attachment E RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE COMPENSATION PLAN FOR MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL APPOINTED OFFICERS ADOPTED BY RESOLUTION NO. 7890 AND AMENDED BY RESOLUTION NOS. 7897 AND 7902 TO CHANGE CERTAIN SALARIES AND CLASSIFICATIONS The Council of the City of Palo Alto does RESOLVE as follows: SECTION i. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Management Compensation Plan, adopted by Resolution No. 7890 and amended by Resolution Nos. 7897 and 7902 is hereby amended by changing certain employee classifications and salaries, as set forth in Exhibit "A", attached hereto and incorporated herein by reference. SECTION 2. The Director of Administrative Services is authorized to implement the amended classifications and salaries as set forth in Section !. SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Director of Administrative Services Director of Human Resources 991116 sdl 0032282 c 0 z 0 z 0 z ATTACHMENT F Cost Estimate for Implementation of Phase One 1999-00 Costs (Prorated Costs) * Ongoing Cost, Furore Years) New Position Costs -Two Senior Systems Analysts - salary -Executive Assistant - salary -Non Salary Costs $107,692 $215,384 $44,001 $88,003 $33,000 $11,400 Reclassification Costs -Various Reclasses for 11 FTE -Consolidation Reclasses $65,407 $104,651 $19,793 $31,671 Total Costs for Phase One $269,893 $451,109 Direct Costs Funded By Utility Funds Costs Allocated to Utility Funds ** General Fund Costs - Phase 1 $19,793 $31,671 $60,534 $101,520 $189,566 $317,917 Amount Remaining In Placeholder -$10,434 *Prorated Costs assume reclasses are effective November 1999 and new positions are effective January, 2000 ** Allocation to Utility Funds is based on the current allocation of costs from Information Technology to the Utility Funds