Title
Chief Administrative Office recommending the Board take the following actions:
1) Approve the restructuring of the fiscal and administrative services of Environmental Management in order to provide support for the fiscal and administrative needs of Development Services; and
2) Adopt Resolution amending the Authorized Personnel Allocation Resolution by adding one (1) Sr. Department Analyst position and deleting one (1) vacant Department Analyst in Environmental Management; deleting one (1) vacant Fiscal Technician and adding one (1) Sr. Accountant and two (2) Fiscal Assistants I/II to Environmental Management; and doing a Reduction in Force (RIF) deleting three (3) Fiscal Technicians in Development Services. (Est. Time: 30 Min.)
Resolution 031-2010
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Fiscal Impact/Change to Net County Cost: This fiscal restructuring is estimated to save approximately $80,000 in General Fund dollars.
Background: The current economic downturn has presented many challenges to the County. As departments have made staffing reductions, often times the first area to be downsized was in the administrative and fiscal units. Fiscal units have been downsized to a level that does not provide adequate depth or allow for the most effective use of resources within a department. In the case of Development Services, the Department has been left with no fiscal management staff and only lower level fiscal support in the form of three fiscal technicians. In the case of Environmental Management, the Department currently has one strong financial manager with minimal mid-level support and no lower level fiscal support.
In order to make these parts and pieces whole again, one option would be to give each department more FTE's at varying levels to provide the depth needed for a successful fiscal unit. However, a different way to look at it, given the current fiscal position of the County, is to look for efficiencies through restructuring. If the path of adding more staff is followed there is the issue of providing appropriate training and oversight. Currently in the case of Development Services there is no fiscal management staff which makes training and oversight very difficult. Another issue that arises from these fractured units is a lack of consistent processes that create more work for the Auditor-Controller and the Chief Administrative Office.
The restructuring of the Development Services and Environmental Management fiscal and administrative support needs into a centralized service unit creates strong fiscal and administrative units with depth, capacity and consistent systems that allow for the greatest efficiencies across departments. This restructuring utilizes an existing strong fiscal manager to create a centralized finance and administrative unit that will serve multiple departments. This unit will be responsible for budgeting, contracts, grants, AP/AR, payroll and procurement for Environmental Management and Development Services. A memorandum of understanding will be established to describe the service agreement between both Departments and individual department heads will still be held accountable for the finances of their department.
Currently the Development Services Department has three fiscal technicians performing finance and administrative tasks for the department. The department has been without a fiscal manager for over a year. Additional support has been provided by the Chief Administrative Office with minimal support from Environmental Management. Development Services has significant needs in financial process development, rate analysis and day to day fiscal management. There is no mid or upper fiscal management capacity in the department.
Environmental Management has a very strong Fiscal Administration Manager and a few mid-level analysts, but a recent retirement and department promotion has left them with no low level fiscal support and the opportunity to restructure the unit to provide greater depth and capacity at all levels.
When analyzing the fiscal needs of these departments individually, it is very hard to justify full time positions to fill the pieces that each needs. However, when looked at together, it does make sense that the combined needs of both departments would justify the addition of a Sr. Accountant, the replacement of an Administrative Analyst with a Sr. Department Analyst (a lower level position), as well as the downsizing of the lower level fiscal support in the form of the deletion of four Fiscal Technicians and the addition of two Fiscal Assistants (lower level positions). These changes create a unit with capacity at the appropriate levels to serve the needs of both departments. Both departments will have the benefit of a strong Fiscal Administration Manager who has experience in the County and a proven track record of strong, consistent, process oriented accounting. Attachment A provides a proposed organization chart for this centralized Finance and Administration Unit.
All the FTE's within this unit will be FTE's of the Environmental Management department and will report to the Fiscal Administration Manager. The CAO will work closely with the Auditor's office to ensure that costs are allocated to both departments based on a supported cost accounting methodology. The CAO is currently working with with DOT to assess space needs for all three departments located on the first and second floor of Building C. The goal is to make sure that this unit is centrally located to meet the needs of both departments. Once a final space plan has been determined, moves will be implemented.
It should be noted that this restructure does involve a reduction in force for three Fiscal Technicians in the Development Services Department. However, there will be two Fiscal Assistant positions added to the Environmental Management Department that these employees would have an opportunity to apply for. The RIF date has been left open ended so that this new centralized unit can be successfully implemented prior to reducing the remaining fiscal staff within Development Services. The goal is to have the new unit fully staffed and functioning by July 1, 2010.
Reason for Recommendation: As financial resources continue to decline, the County must look at some creative solutions to gain efficiencies. The restructuring of fiscal and administrative duties across like departments achieves these efficiencies.
Action to be taken following Board approval: Board chair to sign amended personnel resolution and forward a copy to Human Resources.
Contact: Laura Schwartz x6541