HomeMy WebLinkAboutMO # 1445MUNICIPAL ORDER NO. 1445
A MUNICIPAL ORDER ADOPTING THE OPERATIONAL
EFFICIENCY PLAN RECOMMENDED BY THE CITY MANAGER FOR THE CITY OF
PADUCAH; AUTHORIZING SPECIFIC COST REDUCTION ACTIONS INCLUDING
THE LAYOFF OF CITY EMPLOYEES AND PROVIDING SEVERANCE PAYMENTS
TO THOSE EMPLOYEES OF THE CITY OF PADUCAH, KENTUCKY
WHEREAS, the world wide recession is impacting all levels of
government across the United States; and
WHEREAS, the Paducah City Manager and Finance Director have
projected revenue losses and mandated expenditure increases equal to 10% or more of the
City's General Fund budget; and
WHEREAS, the City Commission anticipates that the worst impact of the
recession has not yet been felt in Paducah; and
WHEREAS, the City Commission anticipates that the impact of the
recession in Paducah may last two years or more; and
WHEREAS, the City Commission desires to manage the City's finances
proactively reducing expenditures before the City is in financial crisis and doing so in a
manner that has the least possible impact on service delivery to Citizens.
BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY:
SECTION 1.
1. The Operational Efficiency Plan presented to the Commission by the City
Manager and dated April 14, 2009 is hereby adopted.
2. The Engineering and Public Works Departments are hereby merged into a unified
Department.
3. The Finance and Human Resources Departments are hereby merged into a unified
Department.
4. The following positions are abolished and the employees occupying those
positions are discharged effective with the adoption of this municipal order:
Public Works Director
Public Works Department Secretary II
Engineering Department Secretary II
Public Works Horticulturist
Public Works Carpenter
Public Works HVAC Technician
Public Works Plumber
GIS Coordinator
Human Resources Director
Finance Accounts Payable Account Clerk
Police Clerk
Inspections Code Enforcement Officer
5. The City Manager is authorized to pay three months severance to employees
losing their jobs by extending the biweekly payment of their base salary with the
last payment being made on July 24, 2009.
6. The City Manager is authorized to pay three months severance to employees of
City funded agencies losing their jobs during the month of April 2009 as a result
of implementation of the Operational Efficiency Plan.
7. The City Manager is authorized to extend health insurance benefits to employees
and employees of City funded agencies losing their jobs until June 30, 2009.
8. The City Manager is instructed not to recruit candidates to fill the positions listed
in the plan to remain vacant and not to recruit candidates to fill the positions listed
in the plan to be vacated by attrition until authorized to do so by the City.
Commission.
9. Until further action by the Commission, the Fire Department minimum manning
level is reduced from 17 to 16 and the Fire Chief is authorized to call in off duty
firefighters to work overtime anytime it is necessary to maintain an on -duty
compliment of 16 firefighters.
10. The Commission will monitor the City's financial condition and as soon as
possible intends to return the Fire Department to an authorized level of 59
Firefighters, Lieutenants, and Captains.
11. The City Manager is authorized to make the change of assignments and the
transfer of employees between Departments as listed in the plan.
12. The City Manager is instructed to prepare personnel actions and personnel table
amendments for Commission ratification to reflect the above changes.
13. The City Manager is instructed to incorporate the Operational Efficiency Plan into
the FY2010 draft budget and to bring to the Commission for consideration with
the budget additional opportunities to reduce expenditures; however the
Commission anticipates that these opportunities will not include additional
layoffs.
14. The Mayor is instructed to advise the Paducah Renaissance Agency and
Redevelopment Board to anticipate a FY2010 appropriation form the City of at
least $30,000 less than the FY2009 appropriation for their operations.
15. The Mayor is instructed to advise the Paducah Human Rights Commission to
anticipate a FY2010 appropriation from the City of $50,000 to carry out their
services to the Community.
16. The City Manager is instructed to give priority to achieving the Land Record
Database Project goals as described in the plan.
SECTION 2. This Order shall be in full force and effect from and after
the date of its adoption.
ATTEST:
Tammara S. Brock, City Clerk
Adopted by the Board of Co nxnissioners, April 14, 2009
Recorded by Tammara S. Brock, City Clerk, April 14, 2009
\mo\Operational Efficiency Plan
OPERATIONAL EFFICIENCY
PLAN
April 14, 2009
James W. Zumwalt
City Manager
This Operational Efficiency Plan describes changes to the City organizational
structure and staff that the City Manager recommends in response to the national
economic crisis. The plan follows the strategic management approach
recommended in the ICMA/Alliance for Innovation Navigating the Fiscal Crisis:
Tested Strategies for Local Leaders white paper which the Commission has
reviewed:
A. Adopt Assumptions
B. Agree On Service Hierarchy
C. Contribute to Recovery
D. Seize Opportunities Crisis Makes Possible
E. Cut Once and Quickly
F. Communicate, Communicate
A. Adopt Assumptions
= This Operational Efficiency Plan assumes that we are not at bottom yet and that recovery
will take two years. I anticipate that the full impact of the recession has not yet been felt
in Paducah and that City revenues will decline further before they begin to increase. The
plan assumes that we will have to cut General Fund expenditures by at least 10% or $3
million.
B. Agree On Service Hierarchy
At your March 31 workshop you reviewed and commented on the staff's work to
categorize the City's services in the Service Business Hierarchy Model that Lyle Sumek
introduced to you. This discussion has influenced development of the Operational
Efficiency Plan.
C. Contribute to Recovery
The decisions the Commission makes about City spending can have some impact on the
region's economic recovery if you:
• Maintain Spending and do not cut Revenues
• Invest in Capital Projects
• Continue to Innovate and Take Smart Risks
• Continue to Make Paducah Stand Out from the Crowd
We are positioned to follow these steps if the Commission holds true to our commitment
to earmark the Investment Fund for Economic Development, Neighborhood
Redevelopment, and Capital Investment.
- --.-. 1.I-,,-_ .... _ a.... -.-....-... , .
7.
D. Seize Opportunities Crisis Makes Possible
During a financial crisis it is sometimes possible to change priorities, restructure or
improve the organization, or develop cooperative partnerships with other organizations;
all changes that might not have been possible without the pressure of the crisis. In
preparing the Operational Efficiency I have looked for opportunities to use the crisis in
this manner.
E. Cut Once and Quickly
The total impact of the Operational Efficiency Plan is an annual cost reduction of about
$2 million. As we work on the FY2010 budget we will propose other changes so that we
reach the 10% goal proposed in item "A" above.
F. Communicate, Communicate
Speculation about possible layoffs has stressed each of you and every member of the City
organization. We all recognize that when the City deletes a position we are doing more
than just causing an innocent employee to lose a job, we are firing a whole family.
After the commission agrees on the steps we will be taking and the affected individuals
have been personally notified, we need to be as open and transparent as possible about
the changes we have made, the individuals affected by them, and what we are doing to
help those individuals through their personal transitions.
Recommended Sequence of Events
TUESDAY, APRIL 7,2009: Commission meets in executive session and
reaches agreement on employees to be laid off and positions to be dropped.
WEDNESDAY & THURSDAY, APRIL 8-9,2009: Zumwalt meets privately
with each employee who is being laid off to advise him or her of the decision, to
give the employee a severance letter agreement, and explain the severance terms.
THURSDAY & FRIDAY, APRIL 9-10,2009: Employee Assistance Program
Counselor will be available for employees who have received a layoff notice. We
will also try to schedule the Workforce Investment Board Rapid Response Team.
TUESDAY, APRIL 14, 2009: Commission discusses Operational Efficiency Plan
at your televised Commission Meeting. During the meeting Commission votes to
put the plan into action and to make layoffs effective immediately.
APRIL — JULY 24, 2009: Laid off employees who have signed their severance
letter agreements receive biweekly severance payments equal to their base pay.
City continues their health insurance coverage until June 30.
WEDNESDAY, APRIL 15,2009: Laid off employees are eligible to apply for
unemployment insurance payments.
JULY 1, 2009: Laid off employees eligible to extend their health insurance
coverage through COBRA at reduced rates funded through the Federal
Stimulus Program.
TUESDAY, JUNE 2, 2009: Commission Budget Advance. Commission
incorporates additional policy changes and cost savings in the FY2010 City
Budget.
Organizational & Personnel Changes
The touchstone for decisions that I have used in making all the recommendations in the
Operational Efficiency Plan has been: "What changes will reduce costs and have the
smallest adverse impact on services we deliver to the City's citizens?"
The plan includes three major organizational changes:
• Public Works and Engineering Departments are merged
• Finance and Human Resources Departments are merged
• GIS is moved from Engineering to Information Services
As these major changes are implemented the involved staff will look for ways to
make additional changes that reduce costs and/or improve customer services. Many
of the staff changes will be permanent. Some will be temporary with the City hiring
employees to fill the vacated positions when financial conditions change.
Public Works & Engineering
Public Works and Engineering Departments are merged under City Engineer and
Public Works Director Rick Murphy. As Rick works out the details of merging the
two staffs into a combined operation, I anticipate that he will find opportunities for
changes that will bring additional efficiencies and savings. Initially the following
changes will be made:
• Positions Deleted
o Public Works Director
o Public Works Department Secretary
o Engineering Department Secretary
o Public Works Horticulturist
o Public Works Carpenter
o Public Works HVAC Technician
o Public Works Plumber
o Public Works Worker (Currently vacant)
• At least two additional positions will be left unfilled when they are vacated by
attrition
o Public Works Worker
o Public Works Worker
• Fire Department Clerical Specialist will be transferred to a vacant position in
Public Works.
• Summer Youth Program will be deleted unless flexible federal grant funding
becomes available through the Workforce Investment Board
• Transfer the Engineering Geographic Information Services Division
including the GIS Technician to the Information Services Department.
• Position Deleted
o GIS Coordinator
Finance & Human Resources
Finance and Human Resources Departments are merged under Finance Director
Jon Perkins
• Positions Deleted
o Human Resources Director
o Human Resources Intern
o Accounts Payable Account Clerk (Merge two positions into one)
o Revenue Clerk (Currently Vacant) Position will be replaced with a part
time temp
Fire
• One Deputy Fire Marshall position is currently vacant and will not be filled.
• The Fire Department Clerical Specialist will be transferred to a vacant position in
the Public Works Solid Waste Division, which is not part of the General Fund.
• We currently have two vacant Fire Fighter positions and anticipate at least one
more at the end of the fiscal year. These positions will remain unfilled for the
immediate future:
o Fire Fighter (Currently Vacant)
o Fire Fighter (Currently Vacant)
o Fire Fighter
• The City will apply for a Fire Staffing Stimulus Grant and if we are successful use
it to fill the vacant Fire Fighter positions. If we do not receive the grant funding,
we will fill the vacant Fire Fighter positions as soon as the City's finances allow
us to do so.
• To avoid increasing Fire Department overtime costs, the Department's
Minimum Manning Standard will be reduced from 17 to 16.
Police
Leave three currently vacant Police Officer positions temporarily unfilled and do
the same with a fourth position when it is vacated by attrition.
o Police Officer (Currently vacant)
o Police Officer (Currently vacant)
o Police Officer (Currently vacant)
o Police Officer (When vacated by attrition)
Apply for Police Staffing Stimulus Grant and if we are successful use it to fill the
vacant Police Officer positions.
Positions Deleted
o Police Investigative Aid (Currently vacant)
o Police Clerk
Inspections
Position Deleted
o Code Enforcement Officer (Fountain Avenue)
Vacant Position to Leave Temporarily Unfilled
o Building Inspector
o Code Enforcement Officer
• Train Office Staff to supplement Nuisance Code enforcement staff by doing some
work in the field.
Information Services
Merge Engineering Geographic Information Systems (GIS) Division into the Information
Services Department under Information Services Director Greg Mueller.
Although our GIS system is a significant resource, it is far from reaching its potential.
For example, the city still utilizes paper plat books and keys in information into a
computer database related to the old plat books. Once we get a unified, accurate,
automated system of parcel and land management records in place, we will have new
opportunities for efficiency improvements in many departments that work with maps and
land records. These improvements will benefit both the city and its sister agencies which
are part of the MAP—GIS Consortium.
Specific tasks that need to be accomplished as part of this Land Record Database Project
to move the system forward include:
1. Merge the HTE land records management system currently used by Planning,
Inspection, and Engineering with the GIS database.
2. Build our land records system so a new property tax software package can
become part of the system.
3. Identify a way to merge county and PVA data into the system.
4. Enhance the 911 -system address database.
5. Improve service to the Paducah and McCracken Geographic Information System
(MAP—GIS) consortium members as well as to the public in the form of web -
based access to GIS data.
A team including Planner II Ben Petersen, GIS Technician, Brian Zimmermann and
Information Services staff members will be assigned to accomplish the Land Record
Database Project. Once these tasks are satisfactorily accomplished, the GIS system and
personnel involved in this restructuring will be re-evaluated and reassigned in a way that
gives to most value to the city organization as a whole.
• Position Deleted
o GIS Coordinator
o Information Services Intern
Renaissance Agency
• Reduce City funding for the Redevelopment and Renaissance Agencies by at least
$30,000. Leave the Agencies with the decision of how to best deliver their
services with reduced funding.
Human Rights Commission
• Reduce City funding for Human Rights Commission from $105,000 to $50,000 a
year. Leave Human Rights Commission with the decision of how to best deliver
their services wit h reduced funding.
Planning
• Temporarily Assign Senior Planner to Information Services Land Record
Database Project.
• Add Fountain Avenue Code Enforcement responsibilities to Community
Development Planner's duties.
• Position Deleted
o Intern
Parks Services
• Reduce programming & part-time staff +/-$60,000
Clerk & Manager
• Positions Deleted
o City Manager Intern
o City Clerk Temp
Severance Terms
Laid off employees will receive:
• Three months base salary. Severance will be paid in bi-weekly payments just like
their City paychecks with the first payment April 17 and the last July 24.
Payments will begin after the employee signs a severance letter agreement.
• Health insurance coverage through June 30, 2009
• Payout of accrued vacation leave with the May 1 payment.
• Eligibility for unemployment insurance beginning immediately.
• Eligibility for extended COBRA coverage at reduced rates beginning July 1, 2009
Direct cost of severance salaries will be $161,000. Cost of severance salaries, health
insurance and other required costs is approximately $219,000.
Other Issues to Address
Through April and May City staff will work on the FY2010 budget. On June 2 the
Commission will hold a daylong Budget Advance to finalize the City's financial plan for
the coming year. Issues that will be addressed as we work on the budget include:
• Departmental overtime budgets
• Public Works budget for temporary workers
• Travel & training budget. (I am preparing an administrative procedure that would
have employees pay 1/3 the cost of Travel, Conferences, Classes & Training for
Certification & Personal Development.)
• Operating Subsidies to Associated Agencies
• Leased Buildings
• Fleet changes
• Take home cars
• New Service Fees
• Surplus Properties Disposal
• Changes to 2010 Health Insurance Plan
o Waiver Credit
o Wellness Program
• Investment Fund Changes
o Operating Subsidies to Economic Development Agencies
o Operating Subsidies
• Solid Waste Fund
o Leaf Bags
o Future attrition adjustments with new sidearm loader T