HomeMy WebLinkAboutPackets - Council Packets (809) AGENDA
ORO VALLEY TOWN COUNCIL
STUDY SESSION
AUGUST 13, 2008
ORO VALLEY TOWN COUNCIL CHAMBERS
11000 N. LA CANADA DRIVE
STUDY SESSION - AT OR AFTER 5:30 p.m.
CALL TO ORDER
ROLL CALL
1. Presentation of the Public Works Management Study and Findings
2. Water Rates Analysis
3. Shop Oro Valley Campaign
ADJOURNMENT
POSTED: 08/06/08
11:00 a.m.
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The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person
with a disability needs any type of accommodation, please notify the Town Clerk's Office at
(520)229-4700.
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TOWN OF ORO VALLEY
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COUNCIL COMMUNICATION MEETING DATE: August 13,2008
TO: HONORABLE MAYOR AND COUNCIL
FROM: CRAIG CIVALIER, P.E.,TOWN ENGINEER
SUBJECT: STUDY SESSION — PRESENTATION OF THE PUBLIC WORKS MANAGEMENT
STUDY AND FINDINGS
SUMMARY:
The Department of Public Works contracted with The Mercer Group,Inc. in May 2007 to conduct a
Management Study for the department. The Mercer Group is a management consulting firm with offices
around the country that work almost exclusively with public sector organizations on planning,
management, organizational, and operational studies. They have worked with state governments,
counties, cities, regional agencies, school boards, colleges and universities, and non-profit agencies.
The scope of work included a draft and final version of the DPW Management Study Report, an
Implementation Plan and a Public Works Strategic Plan Update. In preparation of the study the project
included employee interviews, site visits and observation of work, and several surveys of DPW employees
to gain insight on a number of issues including organizational culture, management-employee relations,
adequacy of resources, organizational structure, operational practices, and positioning the department
for the future.
Steve Egan of The Mercer Group is the project manager and consultant for the project. Tonight he will
present major findings of the Final Report of the Management Study and make recommendations to
Town Council regarding the management and organizational structure of the Department of Public
Works.
The Mercer Group will also be working with Public Works in the following days to assist the department
in the implementation process of the DPW Strategic Plan.
, \/de zul
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J ene Watson, Assistant Town Manager
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David Andrews, Town Manager
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B. MAJOR FINDINGS AND RECOMMENDATIONS
This section of the report provides Mercer's Overall Assessment of DPW,highlights Five
Big Issues facing the department, reviews Findings for 17 Town-defined Issues and
Questions, and summarizes chapter-by-chapter findings and recommendations.
Mercer's Overall Assessment of DPW
Compared to other Mercer clients and our standard management model, the
Department of Public Works is well-managed, relatively cost-efficient, and effective
in meeting most performance expectations.
DPW services and programs generally have the support of Town officials,
managers,and stakeholders as indicated in our interviews and focus groups.
Key strengths of the department are:
➢ High level of responsiveness to citizen and customer needs, as well as a strong
commitment to resolution of service requests, maintenance of the Town's
infrastructure, and excellent service delivery.
➢ The senior management team is skilled, experienced, and respected internally and
externally.
➢ Likewise,employees are skilled, experienced, and dedicated.
➢ Management systems and controls and performance management systems are
emerging and developing,but not complete.
Divisional strengths are:
➢ Development Review services are improving with a new manager, although there
are more improvements to be made both in DPW and across Town departments
involved in the process.
➢ Engineering services, per our civil engineer, are effectively performed, with a
strong emphasis on construction management and inspection.
➢ Operations is strengthening operations management practices, particularly thru
the Crew Leader Model, and expanding asset management and stormwater
management services.
➢ Transit is providing an excellent service in Coyote Run and through the regional
transit plan moving into other services needed by the community.
The Mercer Group,Inc. 10 Oro Valley DPW-Final Report
Yellow Text=Actions Taken Salmon Text=Actions in Process
Key weaknesses and challenges for DPW are:
➢ Development of the recommended management organization plan will require
new positions and reclassifications, as well as additional funding to implement.
➢ Although the Cartegraph system has been installed, operations management
practices are not yet mature to allow DPW to most effectively "Manage the
Numbers" (time use for people and equipment, work and projects accomplished)
for operational and maintenance components of DPW. The department, however,
is on the right track and moving forward.
➢ Computer technology is not fully implemented to support activity/project cost
accounting. The Town, however, is investing in new financial accounting
software.
➢ DPW needs to take greater advantage of the Permits Plus system in Development
Review in association with other agencies involved in the process.
➢ Equipment and fleet management system is fragmented and focused almost
exclusively on maintenance, with little attention to higher management issues.
➢ Some DPW facilities do not meet current operational needs, but a new Municipal
Operations Center is in the works and Town Hall improvements contemplated.
Divisional weaknesses and challenges are:
➢ The Town needs to ensure all development-related departments are coordinated
and cohesive. Development Review needs to fully use Permits Plus to optimize
processes, which will requirement enhancements and implementation assistance.
The Division also is facing changes in workload as the level of growth declines in
the near future.
➢ Engineering is fragmented with staff in the Town Hall Complex and the
Operations Center on Calle Concordia. Engineering also is facing a change in
workload and focus as the level of growth declines, major projects are completed,
and DPW shifts from a growth/development focus to a maintenance focus.
> Operations will face additional challenges and workload as DPW shifts to a
maintenance focus and the Town annexes land. The number and size of crews
will need to be increased. The Asset Management and Stormwater functions are
growing and need to be effectively managed. An industry-standard Fleet
Management program, with a Fleet Manager, should be initiated in Operations.
> Transit staff perceives less than full support for their service at a time when
service expansion and improvements are laid out in the regional transit plan.
The Mercer Group,Inc. 11 Oro Valley DPW-Final Report
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Five Big Issues
We believe there are Five Big issues the Town and the department must address. Some
are controlled entirely by DPW; others by Town-level decision makers.
1. Administration/Management,
Findings: The Town Engineer needs support in advocating for and documenting key
program needs, such as facilities, capital funding, and new staff. Also, DPW needs to
enhance reporting on progress, activities, and performance related to stated goals,
objectives, and strategies.
Recommendations: Several recommendations scattered throughout the report deal
with enhancing analytical, managerial, and administrative support capabilities.
• Restructure the DPW organization plan to reflect the shift from a
growth/development focus to a maintenance focus.
• Create a Management Analyst position to support the Director and division heads
with management and operational issues, systems and controls, and other needs.
• Improve records management,perhaps with the addition of a GIS Analyst.
• Increase clerical support in Operations to facilitate "Managing the Numbers."
• Develop performance measures at the department and division levels.
2. Development Review
Findings: Development-related boards and processes can work more effectively and
efficiently, particularly the Development Review Board (DRB). The Development
Review Division is not fully using the capabilities of Permits Plus and has continuing
work to do on process optimization with the assistance of customers and stakeholders.
Recommendations: Expand training for board members involved in the development
review process. Change appointment criteria and recruit DRB members with greater
technical training (e.g., architects, landscape architects, engineers). Clarify the role
and responsibility of these boards and the Town Council in the development review
process.
Fully implement l ement Permits Plus to make DP W's role in the development review process
more efficient and custom
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Create an informal Development Advisory Group (DAG) that includes industry
stakeholders to continuously review processes and practices.
The Mercer Group,Inc. 12 Oro Valley DPW-Final Report
Yellow Text=Actions Taken Salmon Text=I Actions IN Process
3. Engineering
Findings: Engineering will need to transition from a construction focus to a
maintenance/replacement focus as new road construction projects are completed and
the pace of road-building declines. This issue affects all of DPW, but the roles and
resources of Engineering and Operations in particular.
Recommendations: Merge Engineering into Operations, then strengthen and
redefine interdivisional ties and cooperation, particularly with the Streets,
Stormwater, and Asset Management Sections in the Operations Division, where most
maintenance activities are performed.
4. Operations
Findings: Engineering and Operations will have an increasingly close relationship as
DPW shifts from a construction to a maintenance focus.
Operations needs to enhance its management team, management practices,
organization plan, and staffing to deal with emerging Stormwater and Asset
Management needs and to meet expanding maintenance needs in Streets.
Recommendations: Merge in Engineering services and restructure the organization
plan to implement an industry-standard Fleet Management program.
Fully implement the Crew Leader Model in Streets and expand the size and number of
crews. Employ the Crew Leader Model across Operations.
The FY 2007-2008 Budget approves a Stormwater Manager and a Pavement
Management Manager, which will add management depth in Operations.
5. Transit
Findings: Transit needs to improve internal management of transit programs and free
up the Transit Administrator for regional and town planning.
Transit staff perceives that Transit services are not a top priority for Town officials.
Recommendations: A Transit Coordinator was approved in the FY 2007-2008
Budget to meet management,planning, and operational issues and needs.
The Transit Administrator and Town Engineer should work with Town officials to
market transit services and the improvements planned in the regional transit plan.
The Mercer Group,Inc. 13 Oro Valley DPW-Final Report
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17 Town-Defined Issues and Questions
This section serves as a roadmap, with short answers where appropriate, to the 17
questions posed in the RFP. Details are provided in Chapters II through VI.
Structure of Public Works
1. What and where should Public Works be now, 1 year, 5 yearst 10 years and 20
years? The Development Review, Engineering, Operations, and Transit chapters
provide a preliminary vision for each DPW division over the next one, five, 10, and
20 years. Chapter II, Department of Public Works, and this section of the Executive
Summary summarize these preliminary visions, with final visions to be defined
during the DPW Strategic Planning exercise to follow the Management Study.
One Year (thru the end of 2008): DPW will see limited changes relating to
recommendations not requiring budgetary approval. Highlights are:
• DPW: Complete the DPW Strategic Planning exercises and create a
Strategic Plan based on the Mercer Study and ongoing analysis. Set
up an Implementation Process to work on recommendations in the
Mercer Management Study.
• Administration: Develop budget requests for new positions, including
the Management Analyst, for the next budget cycle. Work with IT to
assess when to create a GIS Analyst position in DPW.
• Development Review: Continue to expand implementation of the
Permits Plus system and to improve processes. Create an informal
Development Advisory Group with industry representatives.
• Engineering: Work with the Town Engineer and Operations on the
merger and staff transfers. Continue work on major transportation
projects.
• Operations: Work with the Town Engineer and Engineering on the
merger and staff transfers. Get new management positions in
Stormwater and the Crew Leader Model fully up-to-speed. Get
Council approval for a Fleet Management program and a Fleet
Manager position.
• Transit: Get the Transit Coordinator position funded, approved, and
filled.
The Mercer Group,Inc. 14 Oro Valley DPW-Final Report
Yellow Text=Actions Taken Salmon Text=Actions in Process
➢ Five Years (thru the end of 2012): DPW will continue to implement longer-
term recommendations in the Mercer Study. Highlights are:
• DPW: The DPW reorganization will be fully implemented with an
Assistant Town Engineer overseeing the expanded Operations
Division. New facilities at Town Hall and the MOC will be coming on
line by 2011-2012. Continue to track the impact of area and
population growth on core DPW services. Reapply the Mercer
Employee Surveys in 2 to 3 years to measure change as the
Management Study recommendations are implemented.
• Administration: GIS and records management will be a major area of
focus with a DPW GIS Analyst on staff.
• Development Review: Will continue process improvements with the
assistance of an informal Development Advisory Group and other
Town departments. DRD will work on infill projects and likely will
begin working on initial development applications for the annexed
North end area toward the end of this period. Workload and staffing
needs will need to be reassessed based on the pace of development.
• Engineering: Engineering will continue transitioning to a maintenance
orientation, while working on final major road projects and preparing
to plan for the back-bone infrastructure needs in the annexed area to
the North. Improvements in records thru GIS will be an ongoing area
of focus.
• Operations: Engineering will be fully merged into Operations, the
Crew Leader Model will be fully implemented, and Asset
Management fully staffed. Cartegraph will begin providing data on
workload, productivity, and cost-effectiveness to accurately measure
the impact of growth in area and population on services and resources.
By the end of the period, a fully functional Fleet Management
Program, with a central Town Garage,will be in place.
• Transit: Continued development of transit services according to the
Regional Transit Plan, with short-term objectives (expanded hours,
park-and-ride, etc) in place. As population reaches 50,000, Oro Valley
will transition to a direct relationship with the Federal Transportation
Administration.
The Mercer Group,Inc. 15 Oro Valley DPW-Final Report
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➢ Ten Years (2013 through the end of 2017): DPW will
• DPW: Revisit the Management Study in ten years to update the
analysis and vision for DPW. Continue to track the impact of area and
population growth on core DPW services.
• Administration: Revisit administrative support needs as DPW matures
and grows. Possible staff additions are a DPW-based IT specialist to
support administrative, operational, and regulatory systems.
• Development Review: Development in the North will be well
underway, as well as ongoing infill projects in current Town
boundaries.
• Engineering: Initial road and public facilities projects will be in the
construction phase in the North end. Continued focus on maintenance
and replacement of core infrastructure.
• Operations: With infill in existing Town boundaries and annexation to
the West, the third Street Crew will need to be expanded to full staff
(five people). With development of the North End, a fourth Streets
Crew likely will be needed to serve that area of town. All
infrastructure and assets will be entered into and managed through the
GIS system.
• Transit: Likely expansion of routes and services to annexed areas to
the North and West.
The Mercer Group,Inc. 16 Oro Valley DPW=Final Report
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➢ Twenty Years (2018 through the end of 2027): DPW will
• DPW: Continue to track the impact of area and population growth on
core DPW services. Revisit the Town's Space Needs Study early in
this time period.
• Administration: Continued monitoring of administrative support needs
as DPW matures and grows.
• Development Review: Development in the North will continue,as well
as ongoing infill projects in current Town boundaries.
• Engineering: Continued road and public facilities projects will be in
the construction phase in the North end. Continued focus on
maintenance and replacement of core infrastructure.
• Operations: Workload and services will continue to be tracked by
Cartegraph,with operational data driving staffing and resource needs.
• Transit: Continued expansion of services to meet growth in area and
population.
The Mercer Group,Inc. 17 Oro Valley DPW-Final Report
Yellow Text=Actions Takeo Salmon Text=Actions In Process
2. What services and what service levels should we be providing?
See Chapter II for DPW-level organizational issues and Chapters III through VI for
division-level issues. Key areas for improvement include:
➢ DPW: Mercer sees less of a change in services and service levels, than a
change in orientation from growth, development, and construction to
maintenance and renewal.
We also see no change in the Town's expectation for very high levels of
customer service and ongoing maintenance of the Town's high quality
investment in infrastructure and other physical assets. Also, we see no change
in the Town's expectation for citizen input and responsiveness.
➢ Administration: We believe this function should be strengthened through the
evolution of the Administrative Coordinator to the equivalent of a division
head position and the addition of Management Analyst and GIS Analyst
positions. In the long-term a dedicated DPW IT Specialist may be needed.
➢ Development Review: As in all development-related agencies, DRD has a
continuing need to review and improve processes to ensure they are easy to
understand and navigate, efficient, and predictable in timing and outcome.
This effort will be most successful if undertaken in cooperation with all Town
agencies involved in the development review process and with the advice of
industry stakeholders and citizens.
➢ Engineering: Engineering should continue to manage construction projects,
with most, but not all, designs contracted. Key areas of in-house focus will
continue to include planning and funding the Capital Improvements Program
(CIP), design management, design of minor Town projects, construction
management and inspections, and records management.
➢ Operations: Asset Management (facilities, fleet, traffic, stormwater) services
need to expand as they are under-served and under-resourced at present.
Creation of a Stormwater Utility and Manager and a Pavement Management
Manager in the 2008 budget and reorganization of the Traffic crews will
strengthen this function.
Basic streets and drainage crews also need to expand to meet current demand
and infrastructure quality expectations, as well as to keep up with the growth
in infrastructure with annexations. We see a Third Streets Crew in the near
future and a fourth crew when development commences in the North End.
➢ Transit: Continue to invest in Transit services to meet the goals in the
Regional Transit Plan.
NI
The Mercer Group,Inc. 18 Oro Valley DPW-Final Report
Yellow Text=Actions Talcen Salmon Text=Actions In Process
3. What staff do we need to provide these services?
See Chapter II for DPW-level organizational issues, Chapters III through VI for
division-level issues, and Exhibit 5, Implementation Plan, for budgetary impacts of
the Mercer Study. Key areas for improvement include:
➢ DPW: Merge Engineering and Operations into an "Operations" Division (or
similar name)headed by an Assistant Town Engineer(new in 2009 budget).
➢ Administration: Add three positions to strengthen this function:
• Management Analyst(2009 budget)
• GIS Analyst(2010 budget)
• DPW Information Technology Specialist(after 2011)
➢ Development Review: Shift one position to Operations as DPW reorients
from a growth, development, construction focus to a maintenance focus.
Watch what happens to workload as development commences in the North
End in about five years.
➢ Engineering: Merge this division into Operations and shift three positions
within the new Operations Division.
➢ Operations: Add resources at the crew level to keep up with current demand
and the growth in workload as the Town grows:
• Street Crews #1 and #2: Add entry-level one position to each in the
2009 budget.
• Street Crew#3: Create with a crew leader and two workers in the 2009
budget.
• Street Crew #4: Create when development in the North End results in
workload to justify the crew.
• Facilities Crew: Expand to a crew leader and facilities technician in
2009 and watch for the need to expand as workload is better measured
with Cartegraph.
• Traffic Crew: Merge all crews and personnel responsible for signals,
signs,and markings into one unit within Asset Management.
➢ Transit: Add the Transit Coordinator as soon as funding is approved. Add
drivers as routes and services expand with annexation.
The Mercer Group,Inc. 19 Oro Valley DPW.-Final Report
Yellow Text=Actions Taken Salmon Text=Actions in Process
4. How should we be organized?
See Chapter II for DPW-level organizational issues, Chapters III through VI for
division-level issues, and Exhibits 3 for recommended organizational charts. Key
areas for improvement include:
➢ Department's Management Structure: With the change in focus from
growth and development to maintenance, DPW should merge the current
Engineering and Operations divisions, with the Engineering and Operations
Managers now reporting through an Assistant Town Engineer.
➢ Development Review: Continue as a DPW division reporting to the Town
Engineer. Also, continue to operate within a matrix management system in
cooperation with Planning, Building Safety, and other Town departments
involved in the development review process.
➢ Engineering: Merge with Operations with the Engineering Manager now
reporting through the Assistant Town Engineer.
➢ Operations: Merge with Engineering with the Engineering Manager now
reporting through the Assistant Town Engineer. Enhance supervision of
crews through full implementation of the Crew Leader Model in Facilities,
Streets, and Traffic units.
As the Stormwater program grows, consider the need to move it up to a
section level in Operations rather than being placed in Asset Management.
As the Fleet Management program grows, consider the need to move it up to a
division level in Public Works rather than a section in Operations.
➢ Transit: Continue as a division of DPW. Add a Transit Coordinator to the
management team.
The Mercer Group,Inc. 20 Oro Valley DPW-Final Report
Yellow Text=Actions Taken Salmon Test=Actions In Process
5. What funding level do we need?
Growth in operational funding will be needed to support new positions recommended
in the report, implement a Fleet Management Model town-wide, and to keep up with
the existing capital improvement plan, including the new MOC. Key areas for
improvement include:
➢ Personnel: See Exhibit 5, Implementation Plan, for budgetary impacts of
position recommendations in the Mercer Study. The impact of new positions
will be spread across several funding sources--Federal, State,and local.
➢ Fleet Management: This new program should be supported by internal rates
and charges to all user agencies through an Internal Service Fund. The
Town's fleet capital program similarly should be funded through an
equipment replacement fund support by rates and charges (a/k/a"leases").
➢ Operating Accounts: Continue to meet inflationary needs, while expanding
divisional-level budgets to better track costs by program.
In addition to impact fees, optimize operational revenues by implementing
fully-costed user fees (direct service delivery costs plus the cost of
supervision, administrative support, overhead, equipment and facility use, lost
time factors, and the like) for operational services with fees and charges.
➢ Capital Needs: The Capital Improvement Program provides an excellent road
map to capital needs. Funding sources, including impact fees and
intergovernmental revenues (e.g., PAG), seem adequate to fund the current list
of CIP projects in the near future, but may not be adequate in the long-term as
the North End develops.
Maintenance funding through the construction sales tax, however, may not be
adequate to main the Town's infrastructure. DPW needs a regular source of
funding to accomplish maintenance and renewal standards, especially surface
treatments. DPW estimates these needs at$3,000,000 per year for seven years
(to catch up) and $1,200,000 thereafter to maintain(the current appropriation).
Data from the PAG Road Condition Analysis (available now), Cartegraph
(coming), and Engineering studies of traffic trends (ongoing) will support
decision-making on funding needs for new projects and maintenance.
One other challenge for the Town will be to pay for the construction of public
infrastructure (e.g., streets, parks, bikeways and paths, stormwater features) in
the North End annexation area, which may require a different set of impact
fees and charges than current Town boundaries due to an expected lower
density of development.
The Mercer Group,Inc. 21 Oro Valley DPW-Final Report
Yellow Text=I Actions Taken Salmon Text=Actions In Process
6. What and how much outside services and outsourcing should we do?
See Chapters III through VI that deal with division-level issues. Key areas for
improvement include:
➢ Administration: Pull in support for DPW-level GIS applications and
recordkeeping through a GIS Analyst position and over time for IT support
through an IT Analyst position.
➢ Engineering: Continue to outsource major designs, but retain the capacity to
design smaller Town projects (e.g., rest rooms, parking lots). Continue
planning and funding the CIP, construction management, and inspection
programs in-house.
➢ Development Review: Continue Town-based development review services,
including permits.
➢ Operations: Continue to outsource major construction and special
maintenance projects, leaving Operations with routine and emergency
maintenance.
As justified by improved cost accounting with the Cartegraph operations
management system, change the mix of in-house and contract services over
time as most cost-beneficial to the Town.
With the development of a central garage, basic maintenance services (lube-
oil-filter, minor maintenance) will come inhouse, while major and specialty
maintenance will remain contracted. Again, cost-effectiveness will determine
which services are contracted.
➢ Transit: Continue the current mix of Town and regionally provided services.
The Mercer Group,Inc. 22 Oro Valley DPW-Final Report
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7. Review impact of annexations.
See Chapter II, particularly the Preliminary Vision for Public Works, for a discussion
of the impact of possible annexations. With annexation to the Southwest effectively
blocked for the near term and annexation to the North slowing evolving under State
direction, annexations will have limited impact on DPW over the next five years.
Possible DPW impacts include:
➢ North: This area of 14.22 square miles is estimated to add 17,726 dwelling
units and 37,742 people according to data provided by the Planning
Department. DPW, first in Development Review and later in Engineering and
Operations, will need to be prepared to deal with the impacts of development
in about five years.
A Southwest: No impact expected in this 2.2 square mile area with 3,500
people. If annexed at some time in the future, the Operations Division will
add a significant number of lane miles and associated infrastructure, such as
street signs, signals, drainage ways, and paths.
➢ West: Limited expected impact in this 2.59 square mile area with 1,000
people as it is relatively rural in character.
8. Should we develop a Fleet Maintenance Division for all our Town Vehicles?
See Chapter II, Section F, Resource Management. The Town should strongly
consider implementation of a Fleet Management Concept for all Town vehicles. Key
areas for improvement include:
> Fleet Manager: Hire a Fleet Manager as soon as possible to work with all
Town departments and agencies to improve fleet management practices and
define all elements of the Fleet Management Program, which would include a
vehicle replacement fund and internal service fund.
> Central Garage: Develop a central Town garage at the Municipal Operations
Center and staff it as suggested in Chapter II.
➢ Town Operation or Contractor: With no established Town-wide fleet
management operation, the Town is a candidate for contract operation of its
new central garage.
The Mercer Group,Inc. 23 Oro Valley DPW-Final Report
Yellow Text=Actions Taken Salmon Text=Actions in Process
Performance Review
DPW is committed to improving processes to be more efficient and customer responsive,
with some improvements in place and others underway.
9. Development Review Process.
See Chapter III, Development Review Division. Areas for improvement include:
➢ Process: DRD, like all development review agencies, needs to continuously
review and improve processes and practices (some across Town departments).
DRD is fully committed to this exercise. Four issues need to be addressed:
• Organizational changes including creation of a DPW Management
Analyst to support process improvements.
• Creation of a division-wide (all employees) Change Process, not just
one developed from above.
• Strengthening the One-Stop Shop by locating the Fire District Plans
Examiner at Town Hall.
• Improving Front Counter operations.
We suggest DRD implement the continuous improvement program in
cooperation with industry stakeholders through an informal Development
Advisory Group, which would assist not only DRD, but also the Planning and
Building Safety Departments.
➢ Permits Plus: DRD needs to take full advantage of the Permits Plus System,
which may need to be upgraded and fine-tuned to fully meet all Town needs.
➢ Performance Management: DRD also needs to develop, likely in
cooperation with Planning and Building Safety, performance measures and
timelines for the Development Review Process. A Customer Feedback/Rating
process and form also need to be implemented.
10. Grading Permits/Improvement Plan Process.
See Chapter III, Development Review Division. Areas for improvement include:
➢ Process: DRD needs to make micro-improvements in this process, including
codification of steps and requirements, alongside the more significant effort
above to enlist industry input and ideas for continuous improvement.
The Mercer Group,Inc. 24 Oro Valley DPW-Final Report
Yellow Text=Actions Taken Salmon Text=Actions in Process
11. Right-of-Way Permits.
See Chapter III, Development Review Division. Areas for improvement include:
➢ Process: DRD needs to make micro-improvements in this process alongside
the more significant effort above to enlist industry input and ideas for
continuous improvement.
12. Project Design Administration.
See Chapter IV, Engineering Division. Areas for improvement include:
➢ Process: This process, which involves several activities, appears well
organized except that Project Assessment activities need to be broadened. We
also identified two general issues, which are:
• Difficulty in communicating with Engineering Division staff working
out of two locations.
• Need for a more Participative Management Model with greater
employee involvement in decisions, more open communications, a
stronger team structure, and recognition/reward programs.
13. Construction Administration.
See Chapter IV, Engineering Division. Areas for improvement include:
➢ Process: This process, which also involves several activities, appears well
organized, but could benefit from work on the two general issues mentioned
above.
14. Funding Strategy. Procurement/Internal and External.
See Chapter II, DPW, and III, Engineering Division. Areas for improvement
include:
➢ Fees and Charges: In addition to examining Impact Fees, the Town and
DPW should review all operational fees and charges to ensure the full cost of
service (direct, supervision, support and overhead, depreciation) is measured
and, with appropriate discounts and waivers, fully-costed fees are
implemented to increase revenues.
The Mercer Group,Inc. 25 Oro Valley DPW-Final Report
Yellow Text an Actions Taken Salmon Text=Actions in Process
15. Coyote Run.
See Chapter VI, Transit Division. Areas for improvement include:
➢ Town Support: Address staff concerns that Town officials may not fully
support Transit programs or, stated another way, that Transit may be a lower
priority service than many other Town services.
➢ Regional Plan: Continue to implement the Regional Transit Plan, with
adjustments in the near future as the Town annexes land to the North and,
perhaps, the West.
16. Interaction with other Departments.
See Chapters III through VI, DPW divisions. Areas for improvement include:
➢ Development Review Process: This process involves Public Works,
Planning, Building Safety, Fire, and other Town departments. Work on
process improvements, therefore, must be a united effort involving all of these
departments.
17. Operations, including street maintenance, traffic signing, pavement marking,
drainage, stormwater, facility maintenance, vehicle and fleet maintenance, and
traffic signals and street lights.
See Chapter V, Operations Division. Areas for improvement include:
➢ Organization Plan: As Public Works reorients from a focus on growth,
development, and construction to a focus on maintenance and replacement,
these operational services need to be more closely tied to engineering services.
We support,therefore, merging the Engineering and Operations Divisions.
• Asset Management Section: This section needs to be strengthened to ensure
Town buildings, stormwater infrastructure, and traffic control systems are
serviced at a high level. Recommendations include pulling all traffic crews
into this section under a single supervisor and expanding the Stormwater team
(in place with the 2008 budget and the stormwater fee).
➢ Fleet Management: The Town should implement an industry-standard Fleet
Management program directed by a Fleet Manager.
➢ Crews (Leadership, Number, and Size): With current workload levels and
upcoming annexations, the size and number of each crew will need to increase
to keep up with service expectations.
The Mercer Group,Inc. 26 Oro Valley DPW-Final Report
Mew Text=lctlsns Taken Saimsi Tsxt=Actisus Prscsss
Implementation of Mercer Recommendations
Chapter VII of the report defines an Implementation Process directed by the Assistant
Town Manager and Town Engineer/DPW Director, Implementation Issues and
Constraints, and an Implementation Plan and Schedule, which can be used as an ongoing
scorecard as DPW works on implementation.
Table 3 in Chapter VII compiles resource recommendations impacting the budget.
Major investments total $985,000 and include:
➢ Assistant Town Engineer: $130,000
➢ Management Analyst: $75,000
➢ Fleet Manager: $90,000
➢ Four Mechanics: $240,000 offset by contract savings (not in total investment
above)
➢ Crews#1/#2: Add a position each at$90,000 total
➢ Crew#3 (new): Add a crew leader and two workers in 2009 at$140,040 total
• Crew#3 (new): Add two more workers in 2010 at$90,000 total
➢ Crew #4 (new): Add an entire crew when the North End develops at $230,000
total
➢ Add Equipment for Crew Expansion: Backhoe($75,000) and Trucks($75,000)
Offsetting cost savings and revenue enhancements are expected to reduce this level of
investment,but cannot be estimated at this time.
Exhibit 5 summarizes five implementation factors and actions for each recommendation:
> Priority
➢ Estimated Completion Date
➢ Responsibility
> Comments or explanations on implementation issues or constraints
➢ Cost or savings,where measurable
The first step in implementation of the Mercer Report will be the DPW Strategic
Planning exercise that will commence once the Final Report is delivered. In this
exercise,we will address:
> DPW and Division Mission and Values Statements
➢ Strategies and actions to support the Town's strategic goals that apply to DPW
➢ Goals, objectives,and activities
➢ Performance measures
> Management and operational reports
➢ Organizational culture issues identified in the Mercer Employee Surveys
➢ Fine-tuning the Implementation Plan and Schedule in Exhibit 5
The Mercer Group,Inc. 27 Oro Valley DPW-Final Report
TOWN OF ORO VALLEY 2
COUNCIL COMMUNICATION STUDY SESSION August 13,
g 2008
TO: HONORABLE MAYOR AND COUNCIL
FROM: Shirley Seng, Water Utility Administrator
Philip C. Saletta, Water Utility Director
SUBJECT: Water Rates Analysis
SUMMARY:
On April 16, 2008, Water Utility Staff presented a Notice of Intent to the Town Council to increase the water rates based
on the Water Utility Commission's Preferred Financial Scenario. Council had concerns regarding the proposed water
rates and voted to continue the Notice of Intent until such time that Staff could respond to those concerns. Water Utility
Staff responded to those concerns and discussed policies and procedures related to water rate increases at a June 11, 2008
Study Session.
OVWU Staff will further discuss the following items as part of our presentation:
➢ Water Rate Structure: Base Rate, Commodity Rate and Tiers
➢ Preliminary Financial Scenarios
➢ Customer Billing Analysis
➢ Proposed Process and Schedule
OVWU Staff originally performed two preliminary financial scenarios and these were included in the April 16, 2008
Water Rates Analysis Report. The relationship between the base rates, commodity rates and the tiers will be discussed.
Conservation pricing is an important aspect of a tiered rate structure and balancing conservation with revenues is a key
component of the continued financial solvency of the Water Utility Enterprise. In addition, impacts to certain customer
classes are problematical depending upon the customer meter size and history of water use.
There are numerous possible solutions to address the Council's concerns; however,these scenarios also need to insure that
the revenue generated from new rates will meet revenue requirements and debt service coverage. In addition, and in
accordance with policy, future rates should avoid sudden and large-scale shifts in water rates. Staff is currently working
on additional financial scenarios and will discuss the major elements and concepts of those scenarios with Council. Staff
seeks Council direction in terms of which scenarios to pursue and include in an Addendum to the Water Rates Analysis
Report.
TOWN OF ORO VALLEY
COUNCIL COMMUNICATION Page 2 of 2
The scenarios include the following concepts:
1) Keeping the base rate the same or slightly decreasing it.
2) Additional tiers—increasing the number of tiers from 4 to 5 or 6 tiers
3) Reducing the amount of usage within each tier for smaller meter sizes
4) Slight adjustments to usage within tiers for larger meter sizes to avoid rate shock.
5) Discussion of a Water Conservation Credit for residential customers that are using less water.
6) Discussion of a Water Conservation Charge for residential customers that are high water users.
The following schedule is proposed:
8/11/08 Water Utility Commission
8/18/08 Water Utility Commission Finance Subcommittee (Tentative date)
9/08/08 Water Utility Commission
9/17/08 Council consideration of Notice of Intent
10/17/08 Notice of Public Hearing mailed to customers
11/05/08 Public Hearing and consideration of Adoption of Water Rate Increase
12/06/08 If adopted, new water rates become effective
Staff will be requesting direction from Council regarding possible financial scena '• and the proposed schedule.
. i
Shi 14111kng,Water tih VI istrator
j.,-...zi . ..„,./&.,,(4...
Phili C. Sa tta
,,P.E.,Water Utility Director
ma
David L. Andrews, Town Manager
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TOWN OF ORO VALLEY
Page 1 of 1
COUNCIL COMMUNICATION MEETING DATE: August
g 13, 2008
TO: HONORABLE MAYOR& COUNCIL
FROM: Amanda Jacobs, Economic Development Specialist
SUBJECT: Shop Oro Valley Campaign
SUMMARY:
The item before you is a draft"Shop Oro Valley" campaign. The purpose of the "Shop Valley" Campaign
Cam aign
is to:
1. Support Oro Valley businesses and the local economy
2. Retain existing businesses in Oro Valley
3. Promote an increase in sales tax generated by Oro Valley business
4. Decrease sales tax leakage to nearby communities
The campaign will educate Oro Valley residents on the importance of shopping locally and promote the quality
of Oro Valley businesses.
ATTACHMENTS:
1. "Shop Oro Valley" Campaign
&/1') '
Amanda Jacobs, • • omic Development Specialist
David Andrews, Town Manager
"Shop Oro Valley"
Prepared by
Amanda Jacobs
Economic Development Specialist
Town of Oro Valley
1
Purpose of"Shop Oro Valley" Campaign
The purpose of the "Shop Oro Valley" campaign is to:
1. Support Oro Valley businesses and the local economy
2. Retain existing businesses in Oro Valley
3. Promote an increase in sales tax generated by Oro Valley business
4. Decrease sales tax leakage to nearby communities
Campaign Fundamentals
Objectives
• Educate—Demonstrate how local sales tax revenues provide community services
and programs
• Promote—Value and quality of businesses found locally
Campaign Duration
The Town will launch the "Shop Oro Valley" campaign in November 2008 and will
continue until November 2009.
Campaign Strategies
With the goal of increasing local sales tax revenue,the following essential strategies and
components are recommended
Target Audiences
This campaign will be targeted to:
• People who are looking for local shopping opportunities
• Professionals who are looking for convenience
• Families who benefit from Town services
Oro Valley Business Navigator
The "Shop Oro Valley" campaign will link to the Oro Valley Business Navigator
(Navigator). The Economic Development division will continue to encourage business
owners to promote their businesses free of charge by listing their business information on
the Navigator so that potential shoppers will be able to access a list of Town vendors and
profiles of businesses located within Oro Valley.
2
Key Message and Graphic Elements
The message will be kept direct ("Shop Oro Valley") and strongly oriented toward
building awareness and educating residents and visitors on the importance of making
p
purchases in Oro Valley (see attachment A: Shop City of Santa Clarita Ads).
• The central message is Oro Valley's budget is based on revenuesg enerated from
retail sales. Sales tax dollars are a critical revenue source and fund ongoing daily
g
operations, including infrastructure, public safety and parks and recreation.
• The slogan is simple and direct: "Shop Oro Valley"
• The tagline, where used, is direct and on message: "Your communitydepends on
dp
it"
(see attachment B: "Shop Oro Valley" logo)
Partnership with the Northern Pima CountyChamber of Commerce and the he Explorer
Newspaper
The Town of Oro Valley, the Northern Pima County Chamber of Commerce (Chamber)
)
and the Explorer Newspaper will collaborate to make the "Shop Oro Valley" campaign a
success.
In addition to Town Hall, "Shop Oro Valley"material will be available at the Chamber
office or any participating business (a list ofg
artici atin businesses will be located on
p p
the "Shop Oro Valley" web page). The Explorer Newspaper has
agreed to provide
g
matching ads, feature stories on participating Oro Valley businesses andp romotion of the
drawings.
Incentives for Consumers
The following incentives may be offered bymerchants to encourage consumers
Oro Valley:
g to "Shop
• Discounts
• Monthly or quarterly drawings for cash, gift certificates or other items
• Promotion through the Oro Valley Vista and otherp ublications
• Listing on the "Shop Oro Valley"webpag e
3
Campaign Kick-off and Promotion
Communication tools include:
1. News release
2. Oro Valley Vista
a. November 2008 (News release)
b. November 2008 —November 2009 (Slogan, tagline and graphics)
3. 1/4 size ad in the EXPLORER Newspaper
4. Radio PSA
5. Comcast PSA
6. Periodic emails to constituents from Town Manager, Mayor or Council Members
7. Postcards distributed to Oro Valley residents
8. Utility bill insert
9. Posters in merchants' windows
10. Bumper stickers for town vehicles
11. Town website
a. Develop "Shop Oro Valley" web page
b. Link to the Oro Valley Business Navigator
Cost
Item Cost
17 ads ('/4 size) in the EXPLORER $10,200
Newspaper—Fiscal Year 2008-09
Printing and mailing of one postcard to Oro $2,200
Valley residents—November 2008
(Holiday message)
1,000 Posters (11 x 17) $400
2,000 Magnetic Bumper Stickers $800
Total: $13,600
4
Measurement
1. Analysis of sales tax revenues pre/post campaign—The evaluation will use a
combination of sales tax reports by local retail centers and for the town as a
whole. Data from fiscal year 2007-2008 will serve as a benchmark, and will be
compiled in the same format when compared to future reportingperiods. This is
not to suggest that all changes in sales tax will be related to the campaign, but
provides an indicator of change and the overall success of the campaign.
2. Merchant interviews
3. Number of visitors on the "Shop Oro Valley"web page and the number of visitors
on the Oro Valley Business Navigator.
Summary
The "Shop Oro Valley" campaign will support and help retain Oro Valley businesses.
The campaign will educate Oro Valley residents on the importance of shopping locally
and promote the quality of Oro Valley businesses.Daily operations, including
infrastructure, public safety and parks and recreation depend on local sales tax revenue.
With education and awareness, Oro Valley residents will be able to better understand the
value of their shopping choices go far
beyond theirpurchases.
Y
5
Attachment "A"
Shop City of Santa Clarita Ads
Shop Santa Clarita: Ads Page 1 of 6
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Categories:
Accounting & Finance
Aircraft& Supply
Alternative
Medicine/Hypnotherapist
Antiques&Collectibles
Appliance Stores
Attorney- Family Law/
Divorce
Attorney-Business and
Employment
Auto Dealers- New
Auto Dealers- Used
Auto Supply
Automotive Parts&
Service
Banks
Beauty/ Skin Care
Boats / Motorcycles
Books &Stationary
Bridal & Formal Wear
Building
Materials/Hardware
Stores
Business Services
Business to Business
Services
Catering
Cigars/Tobacco
Coaching &Consulting
Coffee/Juice Shops
Computers
Construction Equipment/
Trailers and Supplies
Craft Supplies / Hobby
Stores
Dentist
Drugstores
Education
Electronics
Employment Agency
Entertainment
Event Planning
Family
Fashion / Apparel
Fine Art
Floor Covering
Florists
Food & Dining
Furniture
General Merchandise
Gift& Home
Gift Stores
Golf Courses
Grocery/Food Stores
Hardware
Health / Fitness
Heavy Industry Shop City of Santa Clarita Ads
http://www.shopcityofsantaclarita.com/ads.asp 05/13/2008
• Shop Santa Clarita: Ads
page 2 of 6
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