TO:
Honorable Mayor and Members of the City Council
FROM:
Mark Danaj, City Manager
SUBJECT:Title
Consideration and Approval of Resolution No. 14-0066 Amending the City of Manhattan Beach's Personnel Rules Establishing the Addition of Four New Strategic Classifications and Corresponding Salary Ranges and Benefits Levels (City Manager Danaj).
ACCEPT RECOMMENDATION
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Recommended Action
RECOMMENDATION:
Approve Resolution 14-0066 to amend the City of Manhattan Beach's Personnel Rules establishing the addition of four new strategic classifications and establishing the corresponding salary ranges and benefits.
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FISCAL IMPLICATIONS:
The annualized cost of these four positions including salary and benefits is estimated at approximately $847,700. These positions can be accommodated within the projected five year budget forecast and still maintain a balanced budget (revenues exceeding expenditures).
However, as noted in previous budget study sessions, the City Council will need to take steps to correct the General Fund subsidies of Storm Water and Street Lighting in order to maintain the long term fiscal health of the General Fund and protect the reserves that have been established. Additional information is included later in this report.
BACKGROUND:
In accepting the appointment of city manager a few months ago, I was asked by the City Council to carefully evaluate the organization's service delivery model and resource allocations against the needs of the community. I quickly discovered that with the various key economic development projects; the caliber of our residents and their desire to be actively engaged with the City, the City is was in need of some key resource investments. To that end, the purpose of this memorandum is to recommend the addition of four strategic positions, which are discussed below.
DISCUSSION:
The city organization is strong and professional, and is very committed to the community. However, as I look forward to our desire to be more deliberatively strategic in our planning and service execution as well as our need to prepare for the future of the city and the expectations of our residents, I find a few key gaps in our current staffing compliment.
As part of this analysis I reviewed a survey comprised of the cities historically used by Manhattan Beach to compare staffing levels (see attached chart). This measurement is defined as the number of full-time staff per 1000 residents; a well-accepted measure of city service delivery.
The numbers ranged from a high of 21.14 employees per 1000 residents in Santa Monica to a low of 2.75 employees per 1000 residents in Hawthorne. Manhattan Beach has 7.89 full time employees per 1000 residents which is below both the average in our survey of 10.35 employees per 1000 residents and the median of 8.05 employees per 1000 residents (Inglewood). This data shows that we are not overstaffed as an organization and that the City is likely one of the more efficient local governments in the area, especially given the high expectations of quality service.
I also evaluated the areas in which the City has a need for additional expertise, which has either not been needed in the past or has been accomplished by current staff or external resources. The demand for this specialized knowledge and/or the time commitment needed to successfully meet the demand now exceeds our current staff expertise and/or staffing levels.
Thus, the following recommendations are made after thoroughly considering the financial sustainability of the City and the value versus cost added by the recommended positions. From this analysis, I am recommending the City add the following positions:
Economic Development Manager - This position will direct, plan and oversee the planning and coordination of the City's economic development activities including but not limited to the downtown business plan.
At its heart, economic development is about building healthy economies in order to have healthy communities. There are many benefits to having a focus on economic development at a local level, including but not limited to:
o Quality of Life - more local tax dollars and jobs raise the economic tide for the entire community, including the overall standard of living of the residents.
o Increased Tax Base -the additional revenue provided by economic development supports, maintains, and improves local infrastructure, such as roads, parks, and emergency medical services.
o Business Retention - businesses feel appreciated by the community and, in turn, are more likely to stay in town, contributing to the economy.
o Economic Diversification - a diversified economic base helps expand the local economy and reduces a community's vulnerability to a single business sector.
o Productive Use of Property - property used for its "highest and best use," while preserving local character, maximizes the value of that property.
Human Resources staff conducted a base pay salary survey with the comparable cities historically used by the City. Based on the results of this survey, staff is recommending the Economic Development Manager classification be assigned to Management/Confidential (MC) Salary Range M5 $9,951.00 - $12,947.00. Additionally, staff recommends that this classification receive the benefits provided to "At Will" non-Department Head MC employees.
The estimated total cost for this position including salary and benefits is $201,900.
Communication/Civic Engagement Manager - This position will direct, plan, oversee and significantly enhance the City's communication efforts and programs including but not limited to expanded social media efforts (Twitter, Facebook, Pinterest, Instagram, citymb.info, etc.), working with departments to enhance/improve their presence in the community, assisting them with external communications, and acting as the City's Public Information Officer including in the City's Emergency Communications Center (EOC).
Governments across the US are increasingly using online civic engagement to improve how their communities are involved in government decision-making processes. Those governments know that online civic engagement can become the centerpiece of transparent, inclusive, responsive and accountable government; and that in turn increases public trust in government as well as more active participation.
This position will add value by leading new, innovative civic engagement initiatives citywide, including certifying key departmental employees in effective civic engagement methods and techniques, facilitating an internal communications roundtable and well as launching online civic engagement tools.
Human Resources staff conducted a base pay salary survey with the comparable cities historically used by the City. Based on the results of this survey, staff is recommending the Communication/Civic Engagement Manager classification be assigned to MC Salary Range M5 $9,951.00 - $12,947.00. Additionally, staff recommends that this classification receive the benefits provided to "At Will" non-Department Head MC employees.
The estimated total cost for this position including salary and benefits is $201,900.
Information Technology Director - This position will direct, plan and oversee the City's Information Technology Department including but not limited to the formation and implementation of an overall information system strategy, alignment of information technology resources to support city wide business processes and strategic direction as well as the use of technology to enhance community engagement, track and measure customer service requests, leverage open data initiatives, and explore opportunities to digitize the city services upon a foundation of transparency and access.
Information technology is an essential part of any local government, from website, to GIS, to financial accounting, public works, and permitting, nearly every aspect of an organization's operations depends on its information technology resources. The value of adding this position to the organization will be felt internally as well as externally, and will assist the City with strategically planning its future technology needs and resource allocations to meet those needs.
Human Resources staff conducted a base pay salary survey with the comparable cities historically used by the City. Based on the results of this survey, staff is recommending the Information Technology Director classification be assigned to MC Salary Range M7 $13,054.00.00 - $17,031.00. Additionally, staff recommends that this classification receive the benefits provided to Department Head MC employees.
The estimated total cost for this position including salary and benefits is $242,000.
Assistant Director of Finance - This position will assist the Finance and Administration Director by, including but not limited, to performing specialized professional accounting work, coordinating the City's annual operating budget, auditing financial records and documents, interfacing with external auditors, and managing staff. This position existed in the City previously.
Fiscal responsibility and sustainability are at the core of any communities planning efforts as municipal finance fuels local government. Financial success requires a sound enabling environment as well as sound practices for local government budgeting, financial management, and revenue generation. The value of adding another tier of detail and oversight in the Finance Department is a prudent move as the City continues to forge ahead on some key strategic investments.
Human Resources staff conducted a base pay salary survey with the comparable cities historically used by the City. Based on the results of this survey, staff is recommending the Assistant Director of Finance classification be assigned to MC Salary Range M6 $11,021.00.00 - $14,338.00. Additionally, staff recommends that this classification receive the benefits provided to "At Will" non-Department Head MC employees.
The estimated total cost for this position including salary and benefits is $201,900.
Fiscal Outlook
As stated in the Fiscal Implication section above, the five year budget forecast indicates that we can accommodate these new positions while maintaining a balanced budget (revenues and in excess of expenditures).
However, in the broader picture, continued General Fund subsidies of the Storm Water and Street Lighting funds have a deleterious effect on General Fund reserves. Under current forecasts (including the new positions) the General Fund Economic Uncertainty reserve of $4 million will be tapped into starting in FY 2016-2017. This underscores the importance of correcting the funding mechanism of Storm Water and Street Lighting through revised fees and assessments, which require a Proposition 218 vote. The next discussion on Storm Water and Street Lighting subsidies is schedule for the November 18, 2014 City Council meeting.
CONCLUSION:
I take my responsibility of ensuring fiscal sustainably of city operations very seriously, so any recommendation to augment our staffing model will always be done judiciously. I believe these four positions will serve the City well and equate to a very strategic staffing model in areas where the City is currently not being served. I recommend City Council approve resolution 14-0066 amending the Manhattan Beach Personnel Rules adding four new strategic classifications and the corresponding salary ranges and benefits levels.
Attachments:
1. City Staffing Levels Chart
2. Resolution No. 14-0066
3. City of Manhattan Beach Personnel Rules Attachment A - Classification Plan
4. City of Manhattan Beach Personnel Rules Attachment B - Management Confidential Salary Ranges
5. City of Manhattan Beach Personnel Rules Attachment C - Classified Service
6. Management/Confidential Benefits Summary