Fort Walton Beach Council agenda — 11-26-2007 special agenda — reading text

Purchasing I Purchasing I:.(.,~ i'~ CITY COUNCIL I CITY MANAGER Ii PURCHASING DIRECTOR I 1) E STAFF ASSISTANT II ( 1) I: INVENTORY SENIOR BUYER CONTROL 1) SPECIALIST ( 1) BUYER ( 1) t: L FULL-TIME EQUIVALENT SUMMARY ACTUAL MID-YR BUDGET I 03/ 04 04/ 05 05/ 06 06/ 07 07/ 08 PURCHASING DIRECTOR 1. 00 1. 00 1. 00 1. 00 1. 00 BUYER 2. 00 2. 00 2. 00 1. 00 1. 00 I INVENTORY CONTROL SPECIALIST 1. 00 1. 00 1. 00 1. 00 1. 00 1. 00 1. 00 SENIOR BUYER STAFF ASSISTANT II 1. 00 1. 00 1. 00 1. 00 1. 00 I FULL TIME EQUIVALENT ( FTE) TOTAL 5. 00 5. 00 5. 00 5. 00 5. 00 I I Alternative Services Delivery Study for Fort Walton Beach, Florida Page 6- 2 I C t Purchasing 6. 2 Maior Policies and ODerationallssues I Purchasing Policies I Finding: The Department' s key policies are consistent with recognized municipal policies. The Department has established progressive policies and practices I consistent with widely recognized public sector policies and practices. These include the use of monthly and blanket purchase orders, open accounts with selected providers, I use of the ( Florida) state contract system, and the application of various dollar levels for I different purchasing requirements. The policies are firm but sufficiently flexible to enable Departments to operate successfully and without interruption. I Recommendation # 20: Continue existing purchasing policies with periodic review for currency and adherence to modern standards. I I: Finding: The level of staffing in Purchasing may be reduced without substantial impact on service levels. The assignment of five ( 5) positions to the purchasing function for a City the size of Fort Walton Beach is excessive. As a result, it appears that some positions are underutilized and less than productive relative to the amount of work required. The work of the Inventory Control Specialist position could be covered by other staff, and duties reallocated to ensure continuous flow in the office. Total wages and benefits for the Inventory Control Specialist position are anticipated at $ 42,409 for I the upcoming fiscal year. This amount can be saved through reallocation of work. I Recommendation # 21: Eliminate one ( 1) staff position ( Inventory Control Specialist) in Purchasing. I I I Alternative Services Delivery Study for Fort Walton Beach, Florida Page 6-3 I I I Purchasing I 6. 3Alternative Service Deliverv ODtions I Contracting Out Finding: Private companies could supply the services currently provided by the I A Department. private company could perform this type of work so it would be I possible to contract out services being provided by the Department. This is not a typical approach for this function, as it is typically handled within the municipality. Contracting I the purchasing function would result in some loss of control and may have some undesired side effects such as reduced quality of goods and services. It is not certain I that substantial would be available With the savings by contracting this service. I reduction of one ( 1) position, the cost of the purchasing function would be reduced to a level that a contractor would require. Cities smaller than Fort Walton Beach may rely I more on the individual departments to engage in their own buying of goods and services, although some of the more complex purchases may be handled by an administrator. The more decentralized approach must be balanced against issues of accountability, favoritism, and the application of generally recognized standards. In an increasingly litigious and complex society, certain safeguards are desirable. Having L professional staff with training in the field minimizes the exposure of the City to time consuming and potentially costly challenges. I~"; 1:'.., Recommendation # 22: Continue to provide purchasing functions through the I Purchasing Department and four (4) personnel. I I I Alternative Services Delivery Study for Fort Walton Beach, Florida Page 6-4 I I II I I SECTION 7.0 I INFORMA TION TECHNOLOGY I I I I E: L I I I I I Management Advisory Group, Inc. 2007 I I I,.~! 7.0 Information Technology I The Information Technology Department is responsible for the operation and I maintenance of the City' s network, computers, servers, and website. There are 19 sites I that are serviced, including 17 remote sites, and the City Hall and Annex. 7.1 Oraanization and Staffina I There are four ( 4) positions within the Information Technology Department. They include: I Information Technology Director; I Data Processing Coordinator ( 2); and, Network Analyst. I All three ( 3) positions report directly to the Information Technology Director. The Data Processing Coordinators focus on managing the AS- 400 mainframe, install software on PC' s, help maintain the web site, serve as a liaison with HTE, and serve on- call during evenings and nights as needed. The Network Analyst is responsible for ensuring connectivity within the network and also providing hardware assistance. The level of service to Departments is excellent. Nearly all requests for service from City departments are answered within one day. Also, staff skills produce some I savings, because staff has the ability to repair personal computers when they are broken or need new parts. This minimizes the cost of repairs. I Exhibit 7- 1 on the following page represents the current structure as noted in the I recommended City budget. I I Alternative Services Delivery Study for Fort Walton Beach, Florida Page 7-1 I t Information Technology I Information Technology I CITY COUNCIL I CITY MANAGER I INFOR ATION I TECHNOLOGY DIRECTOR 1) I DATA PROCESSING NE1WORK COORDINATOR ANALYST ( 1) 2) L. FULL-TIME EQUIVALENT SUMMARY ACTUAL MID-YR BUDGET t 03/ 04 04/05 05/ 06 06/07 07/ 08 MIS DIRECTOR 1 . 00 1 . 00 INFO TECHNOLOGY DIRECTOR 1. 00 1. 00 1. 00 E DATA PROCESSING COORDINATOR NETWORK ANALYST 2. 00 1 . 00 2. 00 1 . 00 2. 00 1 . 00 2. 00 1. 00 2. 00 1. 00 FULL TIME EQUIVALENT ( FTE) TOTAL 4. 00 4. 00 4. 00 4. 00 4. 00 I I I I I Alternative Services Delivery Study for Fort Walton Beach, Florida Page 7-2 I E Ii Information Technology 7.2 Maior Policies and ODerationallssues I Major Policies and Practices I Finding: The Department' s key practices are mostly consistent with recognized industry standards. The Department has established progressive policies and I practices consistent with widely recognized public sector policies and practices. These include the application of precautions and security for the network, establishing virus I protections, and establishing the ability to evaluate Internet sites ( for safety) prior to I opening. The policies are firm but sufficiently flexible to enable Departments to operate successfully and without interruption. The one concern is that the City does not appear I to be able to stay on a five ( 5) year replacement cycle for its computers. This leads to a practice of allowing computers to work " until they die".