HomeMy WebLinkAboutStaff Report 361-05If
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City of Palo Alto
City Manager's Report
TO: HONORABLE CITY COUNCIL 10
FROM: CITY MANAGER DEPARTMENT: City Manager's Office
DATE: September 12, 2005 CMR: 361:05
SUBJECT: APPROVAL OF CONTRACT AMENDMENT IN AN AMOUNT NOT TO
EXCEED $20,000 WITH MIKE MILLER FOR CONSULTING SERVICES
FOR UTILITIES POLICIES AND PROCEDURES AND
ORGANIZATIONAL REVIEW
RECOMMENDATION
Staff recommends that the Council approve an amendment to the contract with Mike Miller for
consulting services for $20,000, for a total contract amount not to exceed $105,000, for services
related to the investigation of the Utilities Department as well as the consequent need to create
andlor update Utilities policies, procedures and department organization.
BACKGROUND
In December 2004, the City Manager and City Attorney were made aware of allegations of
misconduct in the Utilities Department Engineering and Operations Division. To assist the
management team assembled to investigate the allegations, an investigator was retained. In
addition, staff retained a former City employee who had served as the Deputy Director of Public
Works Operations (and subsequently the Director of Public Works for the City of Livermore)
before retiring.
The original contract for consulting services anticipated reviewing and making recommendations
to City management on Utilities Department and Municipal Services Center operating policies
and procedures, work practices and rules. In addition, the consultant was to provide
administrative support to Utilities management and Human Resources in documentation of the
disciplinary process based on what was at the time a single incident of misuse of City property.
As the investigation progressed, however, it became clear that the misconduct allegations were
more widespread. Ultimately, 19 employees received disciplinary notices and the investigation
and preparation of discipline consumed the majority of the consultant's time.
The consultant assisted City management staff in the preparation of administrative documents
related to the investigation, assisted the Utilities department in preparing factual background
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materials needed for disciplinary documentation by reviewing City Policy and Procedures, work
rules and Merit Rules and Regulations; and reviewed each of the investigator's four reports and
supporting information to assist City staff in the preparation of administrative documents.
DISCUSSION
As a result of the significant amount of time required to administratively support the investigator,
as well as assisting the Human Resources and Utilities Departments in the preparation of
disciplinary actions, work contemplated in the original scope of services was not completed. In
addition to completing this work, the following revisions and additions to the original scope of
services are proposed:
• Review and make recommendations related to existing Utilities Department operating
division policy and procedures, work practices, and rules. Recommendations may include
revisions to current departmental policies and procedures, and assisting in developing
training programs or other mechanisms for compliance to current and future rules and
organizational structural changes.
• Solicit, review and compile information from other California public utilities and investor-
owned utilities with regards to Palo Alto Utilities and Engineering and Operations Division
and propose alternatives for improved efficiency, cost reduction, and consolidation where
appropriate.
• Review security measures for all facilities and assist in preparation of funding and
implementation plan.
• Evaluate current and potential vacancies in the Utilities Department and, in conjunction with
the City Manager's Office and Human Resources Department, evaluate and propose
alternatives for improved organizational reporting relationships
RESOURCE IMPACT
The original contract was for $75,000. An additional $10,000 was added when the scope of the
investigation became clear. The major part of that funding has now been expended. The
contract amendment will allow the consultant to complete all of the work contemplated. Funds
are available in the Utilities Department administration budget.
POLICY IMPLICATIONS
This recommendation does not represent any change to existing City policies.
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PREPARED BY
son, Assistant City Manager
CITY MANAGER APPROVAL ~Mager
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