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HomeMy WebLinkAbout1985-10-06 MinutesS21 MINUTES OF A RETREAT MEETING OF THE BOARD OF DIRECTORS The Fayetteville City Board of Directors began an annual Retreat meeting on Sunday, October 6, at 9:00 A.M. in Room 326 of City Hall, 113 West Mountain Street, Fayetteville Arkansas. PRESENT: Mayor Noland; Directors Bumpass, Hess, Johnson, Lancaster Martin and Orton; City Manager Grimes, Assistant City Manager MCWethy, City Attorney, McCord, City Clerk Kennedy; members of the staff, members of the press and audience PERFORMANCE AUDIT REPORT Mayor Noland began by saying the Board will not be looking at the audit 321.1 in a negative manner but in a positive manner, in that they want to build on what they feel is a good city organization. Jim Murphy presented the findings of Phase. 1 of the audit, on behalf of Arthur Young and Company. Murphy commented that, rather than being an issue of blame or fault, the audit is a report on a level.of responsibility and the manner in which it is carried out. Murphy noted that, because of the continued growth of the city, and the shrinking of federal funding in the future, Fayetteville must look to its government_ and leaders for the type of leadership necessary for the future. Murphy stated that Arthur Young's view in looking for ways to improve revenue generation and cost reduction may appear extremely critical but, as an outside view, will offer a different perspective. Murphy stated the auditors feel, through observations and interviews with the employees, that the work force is ready and willing to. perform their assignments and feel that the work has to be organized and presented to them in a manner through which they can achieve best results. Murphy reviewed the Phase 1 Report in extensive detail. Murphy began by explaining the overall goal of the study was to develop recommendations that would enable the city to improve its managerial effectiveness and productivity. The project objectives were: Increase operational efficiency, Increase organizational efficiency and effectiveness, Improve managerial policies, Increase the extent to which management's objectives are achieved Murphy explained the audit ascertained: 321.2 321.3 321.4 322 October 6, 1985 322.1 Whether the city's departments are managing and utilizing their resources (such as personnel and property) economically and efficiently, 322.2 The cause of major efficiencies or uneconomical practices, 322.3 Whether the city's departments are complying with the laws and regulations concerning matters of economy and efficiency, 322.4 Whether desired results or benefits are being achieved, 322.5 Whether the objectives as established by the Board are met, 322.6 Whether the city's departments are considering the alternatives that might yield desired results at a lower cost. 322.7 Murphy reported that 205 employees, including supervisory and non -supervisory, were interviewed, and that approximately 45 supervisors were interviewed. Among other data reported by Murphy, it was noted that the work force as a whole believes its productivity could be increased by 28%. Murphy reported the results demonstrated_a high level of concern by employees about the productivity of their jobs and the manner in which they are regarded by the City Administration; that overall, employees feel they are underutilized for a variety of reasons discussed in the report, and are dissatisfied with their supervision, compensation and training. Murphy reported the Pay Plan was not evaluated by ,the auditors, although there were many complaints. Murphy reported administration's role was reviewed and the auditors felt there was a lack of: communications with departments; planning, short or long-range; written policies and procedures, supervision of day-to-day operations; and general management philosophy to support the organization. 322.8 Murphy reported the auditors made five general observations that affect city -ride performance at the department level: that the City Manager should adopt a new style in his leadership of the city, defined as "Strategic Management"; that the city should be reorganized; the concept of strategic planning shouldbe developed; programmatic budgeting or a comparable alter- native should be developed; and a city-wide safety program should be imple- mented. 322.9 Addressing reorganization, Murphy explained the proposal suggests the city strengthen management by reorganizing departments into three categories, with each category having a director that would report to the City Manager, rather than the many department heads that currently report to him. Murphy noted these categories would be "Public Works", "Public Safety" and "Adminis- trative Services", and he displayed a chart showing a description of each grouping of departments and their respective functions, as follows: Public Safety Animal Control Emergency Services Fire Police • October 6, 1985 Public Works Administrative Services Airport Asst. City Engineer Buildings & Grounds City Engineer Community Development Inspection Parks & Recreation Planning Pollution Control Sanitation Sewer Street Traffic Water Accounting Business Office City Clerk Data Processing Meter Reader Personnel Purchasing Vehicle Maintenance Concepts of the reorganization, of strategic planning, programmatic budgeting and the safety program were presented in detail by Murphy, as they are shown in the audit report. Findings, recommendations and proposals in detail, as shown in the report, for were included in Phase 1 of the Audit: Police Department, Sanitation Department, ment, and Water and Sewer Department. for cost -savings were presented the following departments which Fire Department, Municipal Court, Street Department, Traffic Depart - Addressing management training needs for each of the above departments, Murphy noted that included in the report is a list of specialized training needed for the upper -management employees. In conclusion, Murphy recommended the city utilize outside help in order to implement the recommendations in the report, and he stated that Arthur Young is prepared to assist in the implementation. Murphy explained that Arthur Young has a system called a "resource management system" which utilizes the talents of people within the organization to develop.a team that continues to "post -audit" the current implementation, and to develop new areas of cost savings. Murphy proposed that .his firm be engaged to continue on the implementation phase by developing the resource management system in three phases: 1. An Arthur Young, city -observed, city -trained situation, with Arthur Young establishing standards and training employees selected to be part of the team; • 323 323.1 323.2 323.3 323.4 323.5 323.6 2. A city -performed, Arthur Young -observed program to last six 323.7 months; and 3. Arthur Young to step out, and the city to be engaged in con- tinuing the process 323.8 .324 324.1 324.2 October 6, 1985 Murphy reported the cost of Arthur Young's participation for six months would be approximately $100,000. Murphy stated the auditors feel the solutions they have presented to current problems will offer employees greater opportunities for upward mobility and job security. He added that the employees throughout the city who have contributed to the audit should be praised for their efforts and the courage of their convictions. 324.3 Director Orton asked if the Board would discuss implementation at this time. Mayor Noland suggested the discussion on that aspect of the report take place at another meeting. 324.4 City Manager Grimes commented that he appreciated Murphy's emphasis on the fact that the city has good employees who truly want to give the city a day's work. Grimes added that he liked the recommendations of the report and looked forward to implementation as rapidly as possible. 324.5 Murphy noted that throughout the audit, there was a real sense that the Board felt they were being put into an unwanted role on a lot of day-to-day issues. Murphy stated he thought there were opportunities for Board training which would educate the Board on how to fulfill their role and how they relate to city management. 324.6 Director Hess remarked that it would be a good idea for the Board as a whole to have an annual seminar on management and' communication skills. 324.7 Director Martin congratulated the staff for cooperating during the audit.. Martin stated the results of the study were not surprising to him and should not be shocking, but demand a response by the Board and by the city. Martin added that the results of the audit showed a very large waste of time, money and taxpayer's resources. Martin stated he thought the city needed to radically revise the way it operates. Director Martin recommended that the city expand the scope of Arthur Young's engagement to include a minimum six-month installation of a "resource management system". Martin recommended that, to assist in this endeavor, the city engage a "project manager" as described by Arthur Young who would be chosen from outside the existing management to represent the city, and not Arthur Young and Company. Martin proposed that the controls of the city be turned over totally to this manager for a six-month period. Director Martin stated he did not think it fair or reasonable to ask the current management to turn the findings of the performance audit into immediate results. 324.8 Director Johnson stated she saw no need for employing both a project manager and Arthur Young and Company at the same time. Johnson stated she thought Arthur Young should train the current management for six months, after which time the current management would resume their management. functions. Director Lancaster commented that even he thought the current City Manager management and the City Board. 325 October 6, 1985 if the city does hire a consultant, 325.i must still be the liaison between Director Martin suggested that City Manager Grimes be put through a training program and removed temporarily as City Manage*, that some individual replace him for a six-month time period as a "caretaker city manager", to implement_ as many of the reorganization changes as possible, to help develop a job definition and performance standards for the City Manager; and that, after the six-month period, Grimes would resume his role as City Manager. In answer to Director Bumpass, Jim Murphy agreed that this proposal was the thrust of Arthur Young's recommendation. Murphy clarified that Arthur Young would be involved in the installation of the "resource management system", but not the "project manager" position. Director Bumpass asked if the intent of the proposal was that City Manager 325.4 Grimes would interact and communicate with the project management while he is undergoing training. Murphy concurred with Director Martin that the City Manager should not be expected to undergo training on the job and at the same time direct the reorganization effort. Director Bumpass asked what direction would be taken if it were found, after the training and reorganization is underway, it is the opinion that we don't have the right players". Director Martin responded that he thought the Board, if that question came up, would have to make some "tough decisions". In answer to a question from Director Orton, Martin stated the project manager would have authority to hire and fire. Mayor Noland stated there was a request from Director Martin for the Board 325.6 to meet in executive session. 325.2 325.3 325.5 SPECIAL MEETING. A special meeting was called to order at 2:25 P.M. with seven directors present. In answer to a question from Director Lancaster, City Attorney McCord noted the statute requires that the Board of Directors employ a City Manager at all times, but that the City Manager has the right to take a leave of absence. Regarding executive sessions, McCord explained the statute provides that "executive sessions will be permitted only for the purpose of considering employment, appointment, promotion, demotion, disciplining, or resignation 325.7 325.8 325.9 326 October 6, 1985 326.1 of a public officer or employee". McCord informed the Board that, if they go into executive session, they must vote to do so and state the reason. 326.2 Mayor Noland stated the executive session was for the purpose of discussing the implementation and the personnel aspects of the performance audit report. Noland added the Board would discuss the implementation of a public safety director, a public works director and an administrative services director. Director Martin added the Board would discuss the retention of an additional manager. 326.3 The City Attorney explained to the Board that if they discuss employment, it must be that of specific individuals. Mayor Noland stated the Board would discuss the City Manager and his role in the reorganization. The City Attorney asked if the Board would discuss the employment of City Manage* Don Grimes. 326.4 Reporter Phyllis Rice asked the Board if they would be discussing "employment, appointment, promotion, demotion or disciplining". Mayor Noland responded that the Board would discuss employment., Director Johnson stated the Board would discuss "implementation of the performance audit as it relates to Don Grimes". The City Attorney repeated the conditions under which an executive session could be held. 326.5 In answer to a question from Director Lancaster, the City Attorney stated it would be illegal for the City Attorney to sit in on the executive session. 326.6 The Mayor asked that the room be cleared for the executive session. The City Attorney asked the Board to state the reason for the executive session and to vote. Director Johnson stated the Board would discuss the demotion of Don Grimes. Upon roll call, the Board voted, 7-0, to go into executive session. 326.7 Following the executive session, the meeting was reconvened at about 3:23 P.M. 326.8 Mayor Noland, seconded by Orton, made a motion that the City Manager be granted an educational sabbatical for a six-month period, during which time he would visit other cities and participate in educational programs. Noland added that Grimes, during this period, would be granted some compen- sation and some expenses toward the educational opportunities he might pursue. Noland stated the starting date would be determined by whatever program Grimes might work out, and at the end of the six-month period Grimes would return as City Manager of Fayetteville. 326.9 Upon roll call, the motion passed, 7-0. 326.10 Director Bumpass asked if the Board would entertain negotiations with Arthur Young and Company to develop a project management team to implement some of the recommendations of the performance audit report. Director • 327 October 6, 1985 Johnson suggested this matter be discussed at a regular Board meeting. 327.1 Director Bumpass asked if Arthur Young should be invited to submit a proposal including costs. Director Martin suggested the matter be considered at the next regular Board meeting. Reporter Phyllis Rice asked if the Board would .follow its professional selection policy in the selection of a project manager. Director Bumpass stated "that certainly is a consideration we have to have before we can enter into a contract". Director Martin stated he would consider it an extension of Arthur Young's present engagement, because the Board would be asking Arthur Young to implement the recommendations of the performance audit. SOLID WASTE MANAGEMENT REVENUE BONDS The Mayor noted that left on third reading at the last Board meeting was an ordinance approving the issuance and sale of Solid Waste Management Revenue Bonds by the Northwest Arkansas Resource Recovery Authority. Director Lancaster, seconded by Johnson, made a motion to table this item. Lancaster commented that his motion was not meant to kill the project but was made because "some other things have come up in the community and some discussions have been had, and there are some more things I think we need to look at". Upon roll call, the motion passed, 6-0-1, with Director Martin abstaining. Director Hess commented that if the Board tables the issue too often, it's going to be to late to vote in favor of the project. Director Orton asked if the ordinance was tabled until the next regular Board meeting. Director Lancaster responded that he wished to "leave it open until we research some of the alternatives". Orton agreed. • CITY VS. FRANCES M. MITCHELL The City Attorney asked the Board to decide whether to accept the settlement of $550,000 offered by Ms. Frances Mitchell in regard to land owned by her to be used as a sludge application site after improvements to the city's Wastewater Treatment Plant are completed. McCord explained the city is acquiring 393.5 acres from Ms. Mitchell which was appraised at $450,000 by the city's independent appraiser, Keith L. Schultz. McCord added that in October of last year the Board authorized a 20 per cent increase in the city's offer, to $540,000, which was not accepted at that time and eminent domain proceedings were commenced. McCord stated the case was set for trial on October 16. 327.2 327.3 327.4 327.5 327.6 328 October 6, 1985 328.1 Director Johnson, seconded by Martin, made a motion that the city settle for $550,000. Upon roll Call, the motion passed, 7-0. ADJOURNMENT 328.2 Director Johnson, seconded by Orton, made a motion to adjourn the special meeting. Upon roll call, the motion passed, 7-0. The meeting was adjourned at about 3:37 P.M. 328.3 The Board resumed its retreat discussions. ON-CALL EMPLOYEES 328.4 The Board was to consider a discussion of compensating employees for being on-call. Director Bumpass suggested postponement of consideration of this item pending the reorganization. 328.5 Director Lancaster asked why Finance Department employees would be on-call. Finance Director Linebaugh explained that mete* reading employees would be the only Finance Department employees on-call. Linebaugh explained the meter reading division is part of the Finance Department rather than the Water and Sewer Department. Linebaugh explained that these workers are on call for such emergency situations as broken water lines where water must be turned off, or for turning on water after hours. Director Johnson asked why those employees could not be given comp time in lieu of on-call time. Linebaugh responded that the meter readers already have more work than they can do and are using meter repair workers for the backlog of meter reading. 328.6 Director Johnson asked for information on the financial impact of compensating the on call employees on an annual basis. PAY PLAN DISCREPANCIES 328.7 The Board considered a review of pay plan discrepancies, as presented at the October 1 Board meeting. • 328.8 Personnel Officer Jeanette Crumpler explained some positions were not surveyed as benchmark positions (when the salary survey was conducted) and do not fit into the classifications in which they have been placed. Crumpler explained the Animal Control Officer is in the same classification as a Laborer but works without supervision and deals with the public on a daily basis. Crumpler added that the city has not had success in keeping an Animal Control Officer. 329 October 6, 1985 Crumpler noted that there were other discrepancies but that those before 329.1 the Board were the most blatant. Crumpler explained that one Fire Department employee's salary is out of 329.2 line because, for some unknown reason, over a period of years his salary was not brought up to the same level as other employees. Crumpler explained that Clerks III's under the old pay plan were reclas- 329.3 sifted, under the new pay plan, as Clerk/Typists, regardless of the duties they performed; and that Clerk V titles were changed to the title of Secre- tary. Crumpler explained that Phyllis Schrepel is currently classified as a Clerk/Typist but, taking into consideration her supervisory respon- sibilities, should have been classified as.a Secretary. City Manager Grimes stated he felt the Pay Plan did not recognize the 329.4 level of skills and special knowledge of signalization of the Traffic Superintendent. Director Bumpass pointed out that, according to the reorganization, the 329.5 Traffic Superintendent would be integrated under the Public Works Department, and that there may be many job descriptions which will be rewritten. Crumpler reported the staff recommends giving police officers hired in 329.6 1982 and 1984 a 1/2 step raise for two years because they have caught up to those hired in 1981 and 1983. Crumpler noted the recommendation is made in response to a petition submitted by police officers. In response to Director Bumpass, Crumpler stated she had no figures available 329.7 on the cost to implement this recommendation. • In response to Director Martin, Crumpler stated the staff was waiting 329.8 for Board reaction to the recommendation before talking to those employees who would be negatively affected. Mayor Noland questioned whether the recommendations would bring up the 329.9 salaries of any employees who fell behind in the past because of the old policy of allowing department heads to distribute raises based on merit. Director Hess pointed out the staff 'was asked to present a recommendation and he commented that if the Board relies on the staff to present good information, it is the Board's duty to either say "yes or no", or the staff's time has been wasted. Hess noted the Board agreed there were some inequities and said they would address them. Director Orton asked that, if there are other inequities, the Board address all of them. In answer to the .Mayor, City Manager Grimes stated there is a possibility that there are other inequities not included in the recom- mendation. Crumpler noted those included in the recommendation were the - only requests for change which the staff felt were valid. 329.10 329.11 330 October 6, 1985 330.1 The Mayor asked if the Board wished to place this item on the agenda of the, next Board meeting. Director Johnson asked for information on the financial impact of the recommendations. Crumpler stated she would try to prepare that information by the next Board meeting. INJURY SAFETY 330.2 Director Johnson distributed to the Directors a suggested management statement of safety policy which she recommended be adopted at a future Board meeting. 330.3 Director Lancaster stated he did not know whether it was up to the Board to write such a policy. Mayor Noland stated he thought the policy was a "statement of overall support". RADIO'SYSTEM 330.4 Purchasing Officer Sturman Mackey presented a report on the status of the 800 MHz Trunking Communication System. 330.5 Mackey reported installation of the tower should begin within 48 hours after all tower material arrives during the week of October 14. Mackey reported some component parts of the system will arrive between October 23 and November 10 and will be stored temporarily in Interim City Hall on the second floor. Mackey reported the equipment will be installed after the tower has been installed. 330.6 In answer to a question from Director Johnson, Mackey reported that he hoped it would take no longer than four months to develop an Operations and Procedures manual. Mackey explained that, in the meantime, Motorola Project Director Harold Rice will train every operator. Mackey stated a decision had not yet been made as to who will develop the manual. Director Martin commented that if the system begins operation before the manual is developed, he thought the users would never read the manual. City Manager Grimes agreed that the manual must be given to the users when the system begins operation. Director Johnson suggested a decision be made regarding who will develop the manual and that the manual be completed before the end of November. 330.7 Jim Murphy noted that the auditors discovered, in conversations with depart- ments, that there are varying levels of understanding of just what the equipment can do. Murphy noted that one of the existing dispatchers could be trained first and take a leadership role in training other dispatchers, but that the training needs to start immediately. Mackey added that Motorola will provide on-site training as part of the contract. October 6, 1985 MOVIE COMPANY REQUEST 331 Mackey told -the. Board that a:: movie' company had asked for permission to 331.1 use a burned out house at 615 North College for -use in - a movie. Mackey explained this house is due to be demolished by city ordinance and he asked if the Directors would permit a postponement of the demolition. The• City Attorney advised that the Board could delay the demolition date 331.2 and. ask the contractor to obtain permission from the property owner to use the site. No objections were expressed by the Board. BUDGET Y Director .Hess pointed out that. this; is.: the time of year when the budget process.begins and hestressed...the need for:: addressing the performance audit quickly. Mayor Noland asked if department heads could be oriented towards thinking in terms of the new process by December. Murphy stated he thought it was too late this year to do a full programmatic budget. - He recommended that, if the Board anticipates increases, the budget be capped at last,year's level,,.using any increase. as a reserve to be tapped onlyron request, as the reorganization.:develops. Director Johnson stated she would be in favor of capping the budget at last year's level. Director Martin requested a review of the budget before capping it, commenting that he might be in favor of cutting the budget. ADJOURNMENT With no further business being taken up by the Board, the meeting was adjourned at about 5:00 P.M. 331.3