Fort Walton Beach Council agenda — 10-22-2007 special agenda — reading text

also report operationally to the Utilities Division Operations Manager rather than the department director. Recommendation # 58: Revise the Utilities Department organization structure and Ordinance 1659 to reflect actual organizational relationships. In addition, certain personnel changes should be made, not only to support the revised organizational concept but also to more closely align related functions. The recommended changes are as follows: Alternative Services Delivery Study for Fort Walton Beach, Florida Page 13-6  Utilities Recommendation # 59: Retain the Administration and Stormwater Divisions and establish two ( 2) new divisions that incorporate the other four ( 4) current divisions. A new Operations Division would include the Wastewater Construction unit, the Wastewater Collections unit, the Water Construction unit, and the Surveys & CAD unit. A new Treatment Division would include the Wastewater unit and the Water unit. Recommendation # 60: Eliminate the Wastewater Operations Superintendent position ( currently vacant) and establish a Treatment Division Manager position. The current superintendent position is not necessary since his only significant direct report is the Wastewater Plant Supervisor. The other three ( 3) direct reports are only single positions, which could more effectively report elsewhere. The Maintenance Mechanic, as well as the service worker who assists him, and the Lab Manager should report directly to the plant supervisor. The Wastewater Pretreatment Coordinator should report to Collections Systems in the Operations Division since the coordinator' s functions directly support collection system responsibilities. Recommendation # 61: The Service Worker III in Wastewater Construction, who is responsible for sewer line video inspection, should report to Collection Systems since that work directly supports collection system responsibilities. Alternative Services Delivery Study for Fort Walton Beach, Florida Page 13- 7  Utilities The positions reporting directly to the Utility Department Director, under this recommended structure, would be the Operations Division Manager, the' Treatment Division Manager, the Environmental Specialist, and the Senior Staff Assistant. The financial impt of the recommendation would be a slight increase in costs due to the salary difference between the Wastewater Operations Superintendent and the Treatment Division Manager. However, we believe this increase would be more than offset by increased efficiencies and operational effectiveness. Utilities Recommended Organization Chart UTILITIES DEPARTMENT UTILITIES DIRECTOR ( 1) SENIOR STAFF ASSISTANT ( 1) ENVIRONMENTAL SPECIALIST ( 1) Alternative Services Delivery Study for Fort Walton Beach, Florida Page 13-8  Utilities 13. 3 Alternative Service Deliverv Ootions Contracting Out of Utility Department Services Finding: Private companies could supply the services currently provided by the department. Private companies routinely perform this type of work so it would be possible to contract out services being provided by the department. Some governmental agencies have even privatized all of their water and/ or wastewater operations but this is normally due to extraordinary circumstances. The more typical situation is that agencies contract for the goods and/ or services that they cannot provide cost- effectively. This is the approach currently used by the City. For example, the department contracts for water pump repairs/ replacements, wastewater lift station pump repairs/ replacements, repairs at the wastewater treatment plant, hauling of dried greases to an approved landfill, and certain CIP projects. Some have suggested that consolidation with Okaloosa County may be of benefit. This approach, however, would significantly reduce the City' s control over its utility policies, priorities, and service levels. On the surface, it also appears there would be little financial benefit. The County' s rate structure is lower for wastewater services but higher for water. A $ 10. 5 million Utility System Improvement Bond was issued in 2005. The bond covenants, the associated infrastructure renewal and replacement plan, and the multi- year water and sewer rate plan approved by City Council would also make it difficult, if not impossible, to privatize the City' s utility operations. Alternative Services Delivery Study for Fort Walton Beach, Florida Page 13-9  Utilities In summary, there is little, if any, financial benefit that would result from contracting out operations. The enterprise fund results show that income is covering all expenses and, in fact, the City Manager' s Proposed Budget for FY 2007- 08 includes Reserved - Undesignated Net Assets" of $ 1. 5 million. Recommendation # 62: Continue to provide water, wastewater and stormwater services through the Utility Department and its personnel. Alternative Services Delivery Study for Fort Walton Beach, Florida Page 13- 10