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HomeMy WebLinkAboutMinutes - City Council - 2011-11-10 - Special Meeting 162 City Council, Special Meeting Civic 'Center Council Chambers 777 Cypress Avenue Redding, California November 10, 2011 2:00 p.m. The meeting was called to order by Mayor Missy McArthur with the following Council Members present: Rick Bosetti, Dick Dickerson, Patrick Jones, and Francie Sullivan. Also present were City Manager Kurt Starman, City Attorney Rick Duvernay, Assistant City Manager/Interim Electric Utility Director Barry Tippin, Public Works Director Brian Crane, Interim Development Services Director Bill Nagel, City Clerk Pamela Mize, and Executive Assistant Sharlene Tipton. The City Manager introduced Department Directors that were in attendance: Interim Personnel Director Sheri DeMaagd, City Treasurer Leslie Detwiler, Interim Support Services Director Rod Dinger, and Finance Director Steve Strong. I Public/Private Partnership Studies - Water/Wastewater Utilities, Development Services Department, and Information Technology Division [B-130-070] City Manager Starman highlighted the Report to City Council (staff report) dated October 25,2011, incorporated herein by reference, and recommended that the City Council accept the Public/Private Partnership Studies as prepared for the W ater/W astewater Utilities, Development Services Department, and Information Technology Division and provide direction to staff relative to each topic. W A TERIW ASTEW A TER UTILITIES Sami Kader, Water Works Engineers (Water Works), delivered a PowerPoint presentation, incorporated herein by reference, relative to its findings regarding privatizing the City's four Water/Wastewater Treatment Plants. Mr. Kader noted that Water Works' approach to the study included a review of the experiences other agencies have had in privatizing their water and wastewater treatment programs and cost considerations of public and private water and wastewater treatment operations. I Mr. Kader noted that because potential cost savings are not definitive, and significant non- cost issues do not favor privatization, transitioning to private utility operations is not recommended. He stated that Water Works' recommendation is that City staff continue to operate and maintain the water and wastewater treatment plants, and that the City embark on a best practices study at each of its treatment facilities to examine power use, chemical use, operational parameters, etc. in order to identify possible optimization opportunities or short payback capital projects that have the potential to reduce or offset some of the larger segments of operating cost (specifically electricity usage). William Schwarz, Southwest Water Company, spoke relative to its interest in entering into a concessionary agreement with the City should the Council decide to proceed with outside vendors. Council Member Jones advised he would vote no due to potential retirement savings not being utilized. A MOTION WAS MADE by Council Member Sullivan, seconded by Council Member Dickerson, to accept the report and recommendations provided by W aterW orks Engineers I to utilize City staffto operate and maintain the water and wastewater plants and to implement a best practices study at each of its treatment facilities to examine power use, chemical use, operational parameters, etc. in order to identify possible optimization opportunities or short payback capital projects that have the potential to reduce or offset some of the larger segments of operating cost (specifically electricity usage). The Vote: Ayes: Council Members- Bosetti, Dickerson, Sullivan, and McArthur Noes: Council Members- Jones Abstain: Council Members- None Absent: Council Members- None 11/10/2011 163 I INFORMATION TECHNOLOGY DIVISION Randy Tan, Matrix Consulting Group (Matrix), delivered a PowerPoint presentation, incorporated herein by reference, relaying its findings relative to the Information Technology (IT) Division. The Matrix project team conducted interviews with City executives, policy makers, and management staff to understand the context and efforts to date in privatizing City services; conducted interviews with IT staffto understand key tasks and functional areas of responsibility; collected technology asset information to understand hardware and software utilized throughout the City; and conducted a City-wide employee survey to analyze IT service efficiency and quality. Mr. Tan noted that the key recommendations by Matrix are as follows: The City should continue in-house staffing to operate and maintain the IT division. The IT Division should implement a Project Management Office to centrally manage large-scale projects, including the development of policies and procedures, technology standards, strategic planning, etc. The City should centralize information technology staff resources, particularly re- allocating staffing from the Redding Electric Utility (REU) and/or the Police Department to achieve potential cost savings. The IT Division should target a staffing ratio of 2.5 percent of total City staff, equating to an allocation of 19-20 positions, which include the resources allocated from REU and/or the Police Department. Gerard Kersten spoke in support of the report and commended the City's IT staff. Council discussion ensued. I A MOTION WAS MADE by Council Member Dickerson, seconded by Council Member Sullivan, to accept the report and recommendation of Matrix Consulting Group to continue to utilize City staff to operate and maintain the Information Technology Division and to direct the City Manager's office to explore potential cost savings through centralization and consolidation. The Vote: Unanimous Ayes DEVELOPMENT SERVICES DEPARTMENT Interim Development Services Director Bill Nagel delivered a PowerPoint presentation on behalf of Paul Zucker, Zucker Systems of San Diego, incorporated herein by reference, relaying its findings relative to the Development Services Department. Zucker Systems' primary goal was to examine possible reductions in cost to the City while maintaining an equivalent level of service to the public. Zucker Systems interviewed City staff, the Planning Commission, the Mayor, Council Members, and various private consultants and conducted a survey of the development community as part of the study. I Mr. Nagel stated that Zucker Systems' recommendation was to continue to utilize City staff to operate and maintain the Development Services Department and enlist the assistance of private contractors/consultants for overflow work, as workload increases, as employees retire, and for specialty needs. A MOTION WAS MADE by Council Member Bosetti, seconded by Council Member Dickerson, to accept the report and recommendation of Zucker Systems to continue to utilize City staff to operate and maintain the Development Services Department and to explore the use of private contractors/consultants for overflow work or increased workload. The Vote: Ayes: Noes: Abstain: Absent: Council Members: Bosetti, Dickerson, Sullivan, and McArthur Council Members: Jones Council Members: None Council Members: None 11/10/2011 164 ADJOURNMENT There being no further business, Mayor McArthur declared the meeting adjourned at the hour of 4:05 p.m. APPROVED: I ATTEST: ?~g~ City Clerk I I 11/10/2011