OC Public Works Reorganization Proposal

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1 OC Public Works Reorganization Proposal Shane L. Silsby Director of OC Public Works June 17, 2014 Page 1 of 7

2 Page 2 of 6 Introduction OC Public Works provides infrastructure planning and engineering; facility design, construction, and maintenance, fleet services, community planning, survey, construction management, operations and maintenance, and environmental oversight of County watersheds and agriculture on a County-wide basis to unincorporated areas, cities, and other County agencies and departments. Our mission as a department is to protect and enrich the community through efficient delivery and maintenance of public works infrastructure, planning and development services. The values that we strive to exhibit are integrity, accountability, service and trust. Restructuring the department will optimize efficiencies, enhance synergies, increase customer service, and ultimately, reduce the Department s reliance on the General Fund. Background OC Public Works has been the subject of multiple Internal and Performance audits over the past decade, including the 2009 and 2012 Planning Audits, the 2011 Fleet Audit, the 2012 Administration and Procurement of Contracts Audit, and the ongoing Construction Management Audit. In each audit, OC Public Works was directed to review the applicable Service Area's organizational structure, processes, and internal controls to increase efficiencies and enhance customer service. As a result of these audits, County-wide initiatives were launched by the CEO and the Board directing OC Public Works to develop strategies for centralization of fleet services, Public Works contracting and project management, and facility maintenance. These directives for centralization, together with unstable revenues as a result of economic conditions, and a workforce profile where 40% of incumbents are eligible for retirement, all served as a back drop and provided momentum to examine the structure of OC Public Works. The OC Public Works Director conducted a survey of the OC Public Work s employees that concluded on December 31, The Director s Survey requested input on how to improve employee morale, increase efficiencies and enhance customer service the three main pillars of the organization. Two management workshops were held to discuss the results of the Director s Survey and to begin the assessment of the department s organizational structure to determine the optimum structure. Managers reviewed organizational charts for the entire department and identified areas with duplication of efforts, service gaps, dilution of core businesses, and potential consolidations. Phase one of the restructuring assessment was accomplished on March 7, 2014 with the concurrence of the CEO to propose the broad reorganization of OC Public Works into ten core Service Areas. OC Public Works then conducted a detailed review of the organization as a second phase of the restructuring. This review was accomplished through meetings with the Director, each Service Area Deputy Director, the Administrative staff, and the department s Human Resource Services (HRS) representative. In these meetings, the group reviewed the existing organization to identify changes that would increase communication, efficiency, and customer service. Page 2 of 7

3 Page 3 of 6 The review of each Service Area included three meetings to discuss each position, unit, and function within the Service Area, how best to achieve core business goals, how best to achieve organizational efficiencies, and strategies to create a more flexible and focused organization. Each meeting served to further refine work units within a Service Area, as well as the movement and consolidation of administrative functions to Administrative Services. The consolidation of administrative functions is expected to increase consistency of contracting and procurement processes across the Department and to reduce redundancies in the planning and implementation of budget/finance services. Further review included identification of positions that exist in Service Areas where incumbents are performing duties other than those directly related to the duties, responsibilities, training, experience, and skills outlined in a classification specification. As a result, proposed position movement between services areas includes realignment of these positions into the appropriate Service Area. Throughout out the reorganization meetings, HRS was present and provided feedback regarding the movement of positions and proposed use of new positions to ensure consistency in reporting relationships, attention to the occupational series of a classification, and proper assignment of position classifications within work units. Upon completion of the initial draft of the proposed organizational structure, the Director along with the HRS representative engaged the appropriate Labor Organizations in discussion of the reorganization process. The Director conducted meetings with the Orange County Employees Association on May 16, 2014, the Orange County Managers Association on May 21, 2014, and the Alliance of Orange County Workers, on May 23, A telephone call to the International Union of Operating Engineers on May 19, 2014 was not returned. Information regarding the proposed changes to the organizational structure was communicated to employees in a series of meetings with the Director. The first of these meetings were with work units being moved between Service Areas, next meetings were held with specific individuals who are proposed to be moved between Service Areas, and finally, all hands meetings with each Service Area were conducted. The Director, Assistant Director, Service Area managers, HRS representation, and union representation were involved in all or some of the meetings. The Orange County Employees Association participated in nearly all of the meetings involving their represented employees and has provided the Department with a letter of support regarding the proposed reorganization (Attachment 1). Summary of Recommended Actions Phase one of the restructuring includes the proposed reduction of nine Administrative Manager III (AMIII) positions. The proposed restructuring in Phase two is consistent with Board direction, as well as the recommendations of the various Performance and Internal audits over the past five years. The proposal includes the following department-wide results: Page 3 of 7

4 Page 4 of 6 a. Flattening the organization by combining similar functions; b. Correcting supervisory and management spans of control to equalize workload and provide better oversight of work units; c. Creating career ladders to encourage staff development and succession planning; d. Developing an organization that will align staff more closely to the programs that fund their activities and reduce General Fund subsidies to areas that have outside funding to more accurately reflect the full total costs of each Service Area; e. Insuring County-wide collaboration and consistency in the procurement and management of capital improvement projects; and f. Sizing the organization and allocating positions appropriately to maximize efficiencies and create the flexibility necessary to provide consistently high level, quality services to County customers, stakeholders, and the citizenry of Orange County. In addition, highlights of restructuring include the following initiatives, summarized below by Service Area: OC Infrastructure Programs: Combines current OC Road, OC Flood, and OC Project Management to OC Infrastructure Programs to centralize the engineering programming, design and project management functions Centralizes project management function within OC Infrastructure to ensure consistency of approach and overall efficiencies Removes purchasing duties from OC Infrastructure staff to allow increased focus on core business activities OC Construction: Relocate the Job Order Contracting Unit to the OC Construction Service Area to increase consistency and accountability OC Operations & Maintenance: Move the Inspections Services Unit devoted to private development to Community Development to allow OC Operations & Maintenance to focus on core business activities OC Survey: Consolidate GIS personnel into OC Survey to ensure efficiencies Page 4 of 7

5 Page 5 of 6 OC Environmental Resources: OC Watersheds title change to OC Environmental Resources reflects the merger of OC Watersheds and the OC Agricultural Commissioner. Since both OC Watersheds and the OC Agricultural Commissioner perform State mandated environmental regulatory functions, the merger is designed to maximize grant opportunities and leverage staffing and financial resources Relocate the OC Operations & Maintenance Spray Unit to OC Environmental Resources to merge with the Weed Abatement Unit in order to create collaboration and cross training opportunities and enhance customer service OC Community Development: OC Planning title change to OC Community Development encompasses the large scope of work being performed that includes planning functions but also includes land development, permitting, code enforcement and Building Official responsibilities Relocate the Inspection Services Unit from OC Construction to OC Community Development to centralize all activities related to planning and private land development within the same Service Area OC Fleet Services: Provide additional administrative support in response to the Board directive to centralize fleet services County-wide OC Facilities Design & Construction: Creation of a new Service Area (previously part of OC Facilities and Asset Management) which focuses on the design, construction and operation of the County s facilities. This is proposed to address span of control issues, provide greater managerial support and create succession development opportunities Complete the Real Estate Services centralization within CEO through the FY 14/15 budget to create synergies between services provided by Corporate Real Estate and Real Estate Services OC Facilities Maintenance & Central Utility Facility: Creation of a new Service Area (previously a part of OC Facilities and Asset Management) to focus on facility maintenance and the Central Utility Facility Page 5 of 7

6 Page 6 of 6 Administrative Services: Strategically integrate the Department s Information Technology Unit with overall County efforts Shift Accounts Payable responsibilities and staff through the FY 14/15 budget to the Auditor-Controller (A/C) to provide consistency with other satellite A/C units Centralize all Procurement activities to Administrative Services to increase consistency between procurement of goods and services, architect-engineering services and Public Works construction contracts These restructuring initiatives resulted in the recommended movement of over 215 positions between Services Areas, deletion of 57 vacant positions, addition of 45 positions at lower level classifications, and recommended reallocation of seven filled positions. Pending approval by the Board, it is anticipated that the new organizational structure will be effective July 1, 2014, however, full implementation is anticipated to take up to six months. A new budget structure will be put in place and all budgetary and position movements will be recommended to the Board in the First Quarter Budget Report in November Staff will be engaged to develop transition plans as work and positions are shifted within and between Service Areas to insure continuation of service at current levels. Conclusion OC Public Works has worked closely with HRS representatives throughout the reorganization process. Additionally, HRS has worked with supervisors and managers to develop the addition/deletion and classification reallocation requests submitted for approval as a part of this report. The HRS Director has been provided with the requests for additions of positions and reallocations as a part of an expedited review process developed to facilitate this restructuring effort. If approved by the Board, the additions and deletions as well as the reallocations will provide the ability to assign immediate resources in the appropriate places and at the right classification levels. This will increase efficiencies as workloads are disbursed more evenly, with staff performing the duties having the same classification, experience, education, and training. Attachment: 1. Letter from Orange County Employees Association dated June 17, 2014 Page 6 of 7

7 Attachment 1 Page 7 of 7

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