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HomeMy WebLinkAbout2001-01-22 City Council (12)City of PaloAlto City Manager’s Report 7 TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: UTILITIES DATE: SUBJECT: JANUARY 22, 2001 CMR:115:01. APPROVAL OF A BUDGET AMENDMENT TO AMEND THE TABLE OF ORGANIZATION TO ADD FOUR FULL-TIME EQUIVALENT POSITIONS FOR THE DARK FIBER LEASING PROGRAM RECOMMENDATION Staff recommends that Council approve the attached Budget Amendment Ordinance (BAO) to amend the table of organization to add four full-time equivalent positions in the Utilities Department to support the Dark Fiber Leasing Program. BACKGROUND On November 13, 2000, the City Council approved, in concept, the fiber strategic plan as recommended by staff. Included in the plan is the expansion of staff to support the Dark Fiber Leasing Program (CMR:419:00). Council directed staff to return to Council with a BAO outlining the additional staff requirements and operational support costs. DISCUSSION Four additional staff members are required to meet the increased demands for dark fiber services from City of Palo Alto customers. The number of service requests received in 2000 increased by 300 percent over 1999 requests. While such dramatic growth in demand is not expected to continue, additional staff is required to maintain the daily operations of this growing business and expand the marketing efforts of the Dark Fiber Program. As part of the fiber business plan presented on November 13, 2000, Council approved the additional staff positions required to support the expansion of the Dark Fiber Leasing Program. The four positions required are a Utility Project Coordinator, a Key Account Representative, a Senior Resource Planner for Telecommunications and an. Office Specialist. These positions will augment the current positions of the Telecommunications Manager, a Senior Telecommunications Engineer, and other personnel resources shared within Electrical Operations. CMR:ll5:01 Page 1 of 3 The significant increase in demand for customer connections to the dark fiber network, coupled with short-notice customer requests, has often resulted in connection delays due to project construction requirements. To be responsive to the customer’s needs and help restore what is approaching an unacceptable average connection response time, a Utility Project Coordinator for dark fiber projects has become a necessity. As an added benefit, the valuable field experience gained will help expedite customer requests for advanced engineering, the response times of which have also increased. The Key Account Representative for the Telecommunications group has become an urgent requirement. The Telecommunications Manager continues to spend increasing amounts of time dealing with customer requests, tracking the status of projects and responding to numerous customer specific issues. While it is time well spent, these activities have completely overtaken any marketing efforts in which the Telecommunication Manager would otherwise be involved. As the dynamic telecommunications industry changes, there are numerous opportunities the City of Palo Alto, and more specifically, a fiber utility, may be interested in developing. A Senior Resource Planner with telecommunications experience is a vital asset to develop feasibility studies for new ventures. Additionally, this individual can provide insight to the value of potential long-term alliances that will benefit the Dark Fiber Leasing Program and ultimately a fiber utility. The Fiber to the Home Trial is one such project that a Senior Resource Planner could support by identifying various service providers for the network and coordinating market research for customer service requirements and expectations. The Office Specialist is another urgent requirement for the group. The Telecommunications Manager has spent considerable time coordinating the administrative requirements for the Dark Fiber Leasing Program. Previous attempts to use temporary staff in this role have not been successful due to the training time involved and the need to respond to other normal duties outside the Telecommunications group. Given that a great deal of the work expected of the people in this group will be out in the field, a consistent presence in the. office is also very important for this growing business. In addition to supporting the Dark Fiber Leasing Program, these personnel will also provide resources to assist in other Telecommunications related projects such as Fiber to the Home. RESOURCE IMPACT Funding for the new positions for the remainder of the year will be provided from salary savings in the Utilities Department Electric Fund’s 2000-01 operating budget due to various vacancies. CMR: 115:01 Page 2 of 3 Any additional operational support costs for Dark Fiber Leasing Program during the remainder of the year will also be funded from the 2000-01 Utilities Department Electric Fund’s operating budget. Additional financial resources are not needed at this time. Future year funding of salaries for these positions of approximately $372,957 per year will be included in the base budget as part of the 2001-03 budget cycle. Estimated annual operating support costs of $100,000 will be requested in the proposed budget for the 2001- 03 budget. These costs include leased office space, marketing materials and .general ~upplies. As presented in the Fiber Strategic. Plan, the anticipated revenues from a conservative 20 percent annual growth in the dark fiber leasing program will generate over $4 million in net revenue over the next 4 years. POLICY IMPLICATIONS The staff recommendation does not represent a change from existing City policies. TIMELINE Upon approval of the recommendations in this report, staff expects to hire additional staff in the first quarter of 2001. Staff anticipates returning to Council with the Fiber Utility Strategic (Implementation) Plan in early 2002 after the Fiber to the Home Trial has had time. to develop and essential marketing information has been collected. ATTACHMENTS Attachment A: Exhibit A: Budget Amendment Ordinance Table of Organization PREPARED BY: Leo Creger, Telecommunications Manager DEPARTMENT HEAD APPROVAL: CH of Utilities CITY MANAGER APPROVAL: Assistant to the City Manager CMR:115:01 Page 3 of 3 ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2000-01 BUDGET ADDING 4.0 FULL-TIME EQUIVALENT POSITIONS IN THE UTILITIES DEPARTMENT FOR THE DARK FIBER LEASING PROGRAM WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 19, 2000 did adopt a budget for fiscal year 2000-01; and WHEREAS, the Utilities Department has developed a strategic plan for its telecommunications/fiber operations; and WHEREAS, the dark fiber business plan presented to the Council on November 13, 2000 (CMR:419:00) includes the addition of 4.0 full- time equivalent positions represented by one Senior Resource Planner, one Coordinator, Utility Projects, one Utilities Key Account Representative, and one Office Specialist; and WHEREAS, .funding for the additional positions will be provided from the 2000-01 Utilities Department .Electric Fund’s operating budget as a result of various vacancies; and WHEREAS, future year funding for the additional positions will be included in the base budget as a part of the 2001-03 budget cycle; and WHEREAS, City Council authorization is needed to amend the Table of Organization in the 2000-01 budget .as hereinafter set forth. NOW, THEREFORE, the Council of theCity of Palo Alto does ORDAIN as follows: SECTION i. The Table of Organization as amended to refledt changes shown in the attached Exhibit A is hereby approved. SECTION 2. This transaction will not impact the Electric Fund Rate Stabilization Reserve (RSR) in 2000-01. Future year ongoing costs of approximately $372,957 would be required to maintain the 4.0 full-time equivalent positions. SECTION 3. As specified in Section 2.28.080(b) of the Palo Alto Municipal Code, a majority vote of the City Council is required to adopt this ordinance. SECTION 4. 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 environmental impact assessment is necessary. SECTION 5. 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 Director of Utilities EXHIBIT A TABLE OF ORGANIZATION - UTILITY FUND 1999-00 2000-01 Adjusted Adopted 2000-01 Budget Budget Changes 2000-01 Adjusted Budget UTILITIES DEPARTMENT Administration, Electric, Gas, Wastewater Collection and Water Account Representatives Administrator, Utilities Administrative Assistant Associate Power Engineer Assistant Director Utilities/Administrative Services Assistant Director Utilities/Engineer/ Operations Assistant Director Utilities/Resource Management Business Analyst Cathodic Technician Cement Finisher Chief Electric Underground .Inspector Chief Inspector, WGW Coordinator, Utility Projects * Customer Service Representative Customer Service Specialist Desktop Technician Director, Utilities Electrical Assistant I Electric Underground Inspector Electric Utility Compliance Technician Electrician Electrician-Lead Engineer Engineering Technician III 4.00 4.00 4.00 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 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 1.00 1.00 0.00 0.00 1.00 0.00 0.00 3.00 3.00 1.00 4.00. 4.00 4.00 4.00 3.00 3.00 3.00 0.00 1.00 1.00 1.00 1.00 1.00 3.00 5.00 5.00 1.00 2.00 2.00 2.00 3.00 3.00 13.00 14.00 14.00 6.00 6.00 6.00 5.00 6.00 6.00 8.00 6.00 6.00 TABLE OF ORGANIZATION - UTILITY FUND 1999-00 2000-01 Adjusted Adopted 2000-01 Budget Budget Changes Administration, Electric, Gas, Wastewater Collection and Water- continued Engineering Manager, Electric Eng!neering Manager, WGW Equipment Operator Executive Secretary Gas System Technician Heavy Equipment Operator Inspector, Field Services Lineperson/Cable Splicer Lineperson/Cable Splicer-Lead Maintenance Mechanic Manager Utilities Telecommunication Manager, Competitive Assessment Manager, Public Relation Manager, Supply Resources Marketing Engineer Meter Reader Meter Reader-Lead Manager, Electric Operations Manager, Field and Customer Service Manager, Utilities Operations WGW Manager, Utilities Rates Manager, Utilities Information System Manager, Utilities Marketing Services Office Specialist * Personal Computer Technician Power Engineer Resource Planner Senior Engineer 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 3.00 3.00 9.00 9.00 3.00 3.00 10.00 11.00 4.00 4.00 2.00 2.00 1.00 1.00 1.130 1.00 1.00 1.00 1.00 1.00 1.00 1.00 6.00 6.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.!30 1.00. 1.00 0.00 1.00 1.00 1.00 2.01) 1.00 0.00 3.00 3.00 5.00 5.00 4.00 4.00 2000.01 Adjusted Budget 1.00 1.00 2.00 2.00 3.00 9.00 3.00 11.00 4.00 2.00 1.00 1.00 1.00 1.00 1.00 6.00 1.00 1.00 1.00 1.00 1.00 0.00 1.00 3.00 0.00 3.00 5.00 4.00 TABLE OF ORGANIZATION o UTILITY FUND 1999-00 2000-01 Adjusted Adopted 2000-01 Budget Budget Changes 2000-01 Adjusted Budget Administration, Electric, Gas, Wastewater Collection and Water- continued Senior Market Analyst Senior Systems Analyst Senior Technologist Senior Power Engineer Senior Resource Planner * Senior Utilities System Technician Senior Field Services Representative Staff Secretary Supervisor Shop and Field WGW Supervisor Electric Systems Supervisor, Utility Const. Inspection Pgms. Supervisor Utilities Customer Service Center Supervisor, Utilities Meter Reader and Field Services Supervisor, Wastewater, Gas, Water Supervisor, Water Transmission Systems Analyst Truck Driver 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 Systems Technician Utilities System Operator Utilities Accounting Technician Utilities Key Account Representative * Utilities Locator 2.00 2.00 1.00 0.00 0.00 4.00 5.00 5.00 2.00 2.00 0.00 0.00 1.00 1.00 8.50 8.50 1.00 1.00 5.00 6.00 0.00 2.00 0.00 0.00 0.00 0.00 4.00 4.00 1.00 0.00 2.00 0.00 1.00 1.00 1.00 1.00 5.00 6.00 5.00 5.00 15.00 15.00 2.00 2.00 5.oo.5.oo 1.00 1.00 0.00 0.00 5.oo 5.oo 1.00 1.00 2.00 2.00 1.00 2.00 1.00 1.00 2.00 0.00 4.00 5.00 3.00 0.00 1.00 8.50 1.00 6.00 2.00 0.00 0.00 4.00 0.00 0.00 1.00 1.00 6.00 5.00 15.00 2.00 5.00 1 0.00 5.00 1.00 3.00 2.00 TABLE OF ORGANIZATION - UTILITY FUND 1999-00 2000-01 2000-01 Adjusted Adopted 2000-01 Adjusted Budget Budget Changes Budget Administration, Electric, Gas, Wastewater Collection and Water- continued Utilities Market Analyst Water Transmission Specialist-Lead Water Transmission Specialist Water Meter/Cross Connection Technician * Addition on 1.0 Coordinator, Utility Projects, 1.0 Senior Resource Planner, 1.0 Utilities key Account Representative, and 1.0 Office Specialist to support expanded Dark Fiber Leasing Program.