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HomeMy WebLinkAboutPackets - Council Packets (834) AGENDA ORO VALLEY TOWN COUNCIL STUDY SESSION MARCH 26, 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. LEGAL DEPARTMENT MANAGEMENT STUDY FINAL REPORT BY STEVE BURKETT AND JOVAN GROGAN OF MANAGEMENT PARTNERS, INC. - PRESENTATION AND DISCUSSION ALTERNATIVE FUNDING BENEFITS INSURANCE SOURCES - . PRESENTATION AND DISCUSSION 3. CONSUMPTION AND/OR SALE OF ALCOHOLIC BEVERAGES ON TOWN OWNED PROPERTY - PRESENTATION AND DISCUSSION ADJOURNMENT POSTED: 03/19/08 3:00 p.m. cp The Town of Oro Valley complies lies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type p t e of accommodation, please notify the Town Clerk's Office at (520)229-4700. TOWN OF ORO VALLEY 1 Page 1 of 1 COUNCIL COMMUNICATION MEETING DATE: 3/26/2008 TO: HONORABLE MAYOR AND COUNCIL FROM: DAVID ANDREWS, TOWN MANAGER SUBJECT: PRESENTATION OF LEGAL DEPARTMENT MANAGEMENT STUDY FINAL REPORT BY STEVE BURKETT AND JOVAN GROGAN OF MANAGEMENT PARTNERS, INC. SUMMARY: opportunities to gain efficiencies within departments, management studies As part of a larger effort to identify pp Safety p BuildingDepartment, Information Technology Department, and one is have been completed for the currently underway for the Public Works Department. On November 7, 2007, the Town Council voted to award to conduct a management study of the Town's Legal Department. Specific Management Partners, Inc. a contract g uded: or anizational strategy, practice management, and outside counsel, areas of interest for the study incl g along with the identification of opportunities to improve efficiency and effectiveness. study with a two-dayvisit to Town Hall in November to meet with Legal Management Partners, Inc. began theirs y well as Council Members and department heads. They also provided an interim Department staff, as and gather additional February the project management team to highlight their initial findings presentation in Febr y to information. Through these e visits and information requests, Management Partners was able to gain an accurate • Department and has provided a list of recommendations as part of their final report picture of the Town's Legal that could further aid in the running of the department. This evening, Steve Burkett and Jovan Grogan of p Management Partners are here to provide an overview of the findings included in their final report. ATTACHMENTS: 1. Final Report "ManagementStudyof the Legal Department" by Management Partners, Inc. 29 . David Andrews, Town Manager TOWN OF ORO VALLEY, ARIZONA MANAGEMENT STUDY OF THE LEGAL DEPARTMENT March 2008 MANAGEMENT PARTNERS INCORPORATED ,, br. t„,U ,„„. ,,,,:,.,.:,?,. MANAGEMENT � iJ PARTNERS INCO R P O R A ” E ? March 14, 2008 Mr. David Andrews Town Manager Town of Oro Valley 11000 North La Canada Drive Oro Valley, AZ 85737 Dear Mr. Andrews: Management Partners is pleased to present this report of our analysis of the Town's Legal Department operations. The Town Council, Town Manager, and staff are all interested in quality results for the community which balances cost of legal service with high quality proactive legal advice, defense, and prosecution to protect the Town's best interests. In general, customer satisfaction with the Legal Department is high, and management oversight is above average in comparison to other legal departments we have reviewed. Staffing levels for all work units are appropriate for the current workload and are average in comparison with other peer jurisdictions. Legal Department operations can be improved by strengthening Risk Pool oversight and the use of performance measurement. More detailed tracking of workload by type and time spent would be beneficial in analyzing current and predicting future needs. We are confident that through the reasoned implementation of the 32 recommendations in this report, the Town can improve its Legal Department operations for the benefit of customers, the community, staff effectiveness, advisory bodies and the Council. Thank you for your support of this project. We also greatly appreciate the Management Assistant's and Town Prosecutor's assistance and that of all staff members who gave their time, insight and expertise for this report. They were accommodating and responsive. We look forward to assisting the Town in implementing these recommendations. Sincerely, gz,. ./A47._____ Andrew S. Belknap Regional Vice President 2107 North First Street Suite 470 www.managementpartners.com 408 437 5400 San Jose, CA 95131 Fax 453 6191 TABLE OF CONTENTS EXECUTIVE SUMMARY 1 INTRODUCTION 3 STUDY APPROACH 5 INTERVIEWS 5 BENCHMARKING 5 PROCESS MAPS 6 DOCUMENT REVIEW 6 ANALYSIS AND RECOMMENDATIONS 9 DEPARTMENT-WIDE ISSUES 9 Organizational Structure and Staffing Levels 11 Communication and Roles 13 Customer Service 16 Information Technology 16 Management Systems 19 Office Space 22 CIVIL DIVISION ISSUES 23 Current Staffing and Workload 23 Request for Legal Services Management 25 Liability Case Management 26 Use of External Counsel 31 PROSECUTION DIVISION ISSUES 38 Current Staffing and Workload 38 Prosecution Internal Support Functions 43 Police Department Support 45 CONCLUSION 47 ATTACHMENT A— SUMMARY OF RECOMMENDATIONS 48 ATTACHMENT B — REQUEST FOR LEGAL SERVICE INTAKE PROCESS MAP 51 ATTACHMENT C — REQUEST FOR LEGAL SERVICE FINAL DISSEMINATION PROCESS MAP 53 ATTACHMENT D— DUI CITATION "OPENED FILE" PROCESS MAP 55 TABLES TABLE 1: PEER COMPARISON OF LEGAL DEPARTMENT STAFF FTES 12 TABLE 2: RATIO OF SUPPORT STAFF TO ATTORNEYS 13 TABLE 3: CIVIL DIVISION STAFF FTES COMPARED TO PEER AVERAGE 24 TABLE 4: THREE-YEAR HISTORY OF LIABILITY CLAIMS HANDLED BY RISK POOL 27 TABLE 5: PREMIUMS PAID FOR RISK POOL GENERAL LIABILITY AND EXCESS COVERAGE 28 TABLE 6: LOSS AND EXPENSES PAID ON BEHALF OF AND DEDUCTIBLE RECEIVED FROM ORO VALLEY FOR LIABILITY CLAIMS AS REPORTED BY RISK POOL 29 TABLE 7: THREE YEAR COSTS OF EXTERNAL COUNSEL IN VARIOUS TYPES OF CASES PAID DIRECTLY BY TOWN 33 TABLE 8: AVERAGE HOURLY RATE PAID TO POOL ATTORNEYS AND TOWN- HIRED ATTORNEYS 33 TABLE 9: LITIGATION CASES HANDLED BY IN-HOUSE ATTORNEYS 36 TABLE 10: PROSECUTION DIVISION STAFF FTES COMPARED TO PEER AVERAGE 39 FIGURES FIGURE 1: POPULATION OF PEER CITIES 10 FIGURE 2: LEGAL DEPARTMENT EXPENDITURES PER CAPITA 10 FIGURE 3: CURRENT LEGAL SERVICES DEPARTMENT ORGANIZATION CHART 11 FIGURE 4: TOTAL LEGAL STAFFING PER 1,000 POPULATION 12 FIGURE 5: CIVIL DIVISION CURRENT ORGANIZATION STRUCTURE 23 FIGURE 6: CIVIL STAFFING PER 1,000 POPULATION 24 FIGURE 7: PROSECUTION DIVISION CURRENT ORGANIZATION STRUCTURE 38 FIGURE 8: PROSECUTION STAFFING PER 1,000 POPULATION 39 FIGURE 9: PROSECUTION CASES FILED PER 1,000 POPULATION 40 FIGURE 10: PROSECUTION CASE FILED OVER TIME (IN RAW NUMBERS) 40 FIGURE 11: DUI CASES FILED PER 1,000 POPULATION 41 FIGURE 12: PROSECUTION CLEARANCE RATES 42 FIGURE 13: TERMINATED CASES PER FTE (PROSECUTION) 42 FIGURE 14: CREATED FILES BY TYPE, 2003-2007 44 Town of Oro Valley Management Study of the Legal Department EXECUTIVE SUMMARY Management Partners' assessment of the Oro Valley Legal Department documents a legal office that is well managed and led, and that is meeting the majority of the service expectations of the Town Council and staff. The organization is somewhat unique when compared with other public legal offices that Management Partners has reviewed. It is unusual to find a written legal services strategic plan including goals, strategies and performance standards. The Town should be commended for implementing these kinds of innovative management approaches in the organization. The department has also developed sound policies and procedures for the operation of the office. For example, the written policies and procedures for the use of outside counsel reflect best practices for a municipal law office. During our interviews with the Town Council and staff, we heard primarily positive comments regarding the responsiveness and quality of legal services. Some Town Council members did express concerns about the tone and approach of past legal advice, as well as questions regarding the appropriate level of departmental staffing. Staff interviewed from Town departments uniformly expressed satisfaction with the support and services provided by the legal staff. Based on Management Partners' analysis of departmental workload and peer staffing comparisons, we concluded that the current staffing of the office is appropriate and allows the Legal Department to provide proactive, high quality and responsive legal services. The level of staff is consistent with similar-sized cities, and the ratio of attorneys to support staff is also appropriate based on the peer comparisons. The department has managed these accomplishments despite the lack of continuity and consistent leadership resulting from excessive turnover in the Town Attorney position. Management Partners also observed some communication and role conflict among the Town Manager, Town Attorney and Council. Fortunately, most of these issues have been addressed and resolved by the Town Manager and new Town Attorney. The two now meet on a weekly basis to exchange information, anticipate issues, and develop strategies to minimize potential liability and legal risk to the Town. Like all organizations, the Legal Department has opportunities to improve its operations and become even more effective and efficient. Our major recommendations for improvement include the more effective use of Management Partners, Inc. 1 Town of Oro Valley Management Study of the Legal Department technology to monitor how resources are allocated and to document the performance and effectiveness of the office; the development of additional performance measures that will track not only workload but also efficiency and effectiveness; evaluating the cost benefit of the current Risk Pool as well as options that might be more effective; maintaining the current teamwork and communication among Town Manager, Town Attorney, and Town Council; and conducting an annual survey of customers to quantify the quality and responsiveness of legal services provided to the Town. Combining these improvements with the current solid foundation of strategic planning, the department will be well positioned to accommodate increases in workload expected as the community grows in population and begins to experience service expectations and legal issues associated with medium-sized cities. The Town should plan to continue its current balance of in-house counsel for routine legal services and the use of outside counsel for specialized, time-intensive litigation. Assuming linear growth of the legal services workload consistent with the Town's population growth, the current level of legal staffing will be adequate for the Town until it reaches the 55,000 to 60,000 population range. At some point in the future, the Town may find it is cost effective to self insure for liability coverage rather than participating in a Risk Pool. 2 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department INTRODUCTION Incorporated in 1974, the Town of Oro Valley is a full-service municipal government with a population of over 42,000 and a land area of 34.85 square miles located in northeastern Pima County. The Town of Oro Valley operates under the council-manager form of government. Policymaking and legislative authority is vested in the Town Council, which consists of a Mayor and six Council Members. The Town provides a full range of services including: police protection; the construction and maintenance of streets and related infrastructure; the provision of water services; public transportation services; recreational activities; a public library; and cultural events. The Golder Ranch Fire District and Rural/Metro Fire Department provide fire services for Oro Valley residents, with no impact on the Town's General Fund. The Town Attorney is appointed by the Mayor and Council to act as the chief legal advisor to the Mayor and Council, boards and commissions, the Town Manager, and all Town departments. The Legal Department is primarily funded through the General Fund which is derived from state shared revenues, sales tax, and building permit fees. The Town's Legal Department provides both civil and prosecution services with a total staffing complement of 10.3 full-time equivalent (FTE) employees. This includes five full-time attorneys assisted by paralegals and other support staff. The Town requires quality legal support to provide responses to claims and lawsuits against the Town; to manage litigation of personnel matters involving the Town's employees; to staff boards and commissions; to provide day-to-day advice and assistance in preparation of contracts, resolutions/ordinances, legal opinions and other legal documents; and to provide effective criminal prosecution. The Legal Department budget is currently just under $1 million annually. Through the process of this management study, the Town is seeking documentation and recommendations about the effectiveness of Legal Department operations. There is a desire to define the department's organizational strategy now and into the future, how it should be staffed, what services are to be provided, and an appropriate level of funding to operate efficiently. The Town also seeks to review the management of its legal practice, including use of technology, workload balance, management systems, and timeliness of service. Finally, the Town seeks to assess the use of outside counsel and to determine appropriate levels of outsourcing, contract management and oversight. This report includes 31 specific recommendations for improving department operations and they are summarized in Attachment A. Management Partners, Inc. 3 Town of Oro Valley Management Study of the Legal Department STUDY APPROACH Management Partners used a number of analytical and management techniques in its assessment, as described below. The combined steps enabled Management Partners, to get an organization-wide picture of common themes and issues, and to cross-reference and verify assertions. Interviews Management Partners interviewed the Town Council Members and approximately 20 staff members in the Town for this review, including every staff member in the Legal Department, as well as other key Town employees with knowledge about Legal Department operations. Hearing directly from those individuals responsible for performing the work was an important element in the data collection process. During these interviews, Management Partners asked questions about process strengths, opportunities for improvement and key issues that should be addressed. These interviews produced information about current processes and workloads, community values, expectations and desired outcomes from this study, areas for inquiry and analysis, and suggestions for process improvement. Benchmarking With input from Town management, 10 peer jurisdictions with comparable demographics were chosen. The 10 benchmark jurisdictions included: • Apache Junction • Avondale • Casa Grande • Flagstaff • Goodyear • • Marana • Prescott • Sahuarita • Sierra Vista • Surprise Management Partners, Inc. 5 Town of Oro Valley Management Study of the Legal Department In order to provide some means of comparison, Management Partners conducted a survey to determine the budget, staffing and workloads in peer jurisdictions. The benchmarking information was then used as a base comparison for Oro Valley's performance. Benchmarking results of these comparisons are presented in more detail throughout this report. Process Maps Management Partners developed process maps, or flow charts, of the customer request intake and dissemination processes, and of the driving under the influence (DUI) case file opening process, based upon information provided during the interviews with Town staff. These process maps were validated by employees and then used to identify bottlenecks or potential improvements. The process maps represent the best understanding of the general flow of the Town's processes and serve as a basis for discussion of improvements. Throughout the process of information gathering, we have focused on common themes and problems identified by staff and customers which led to recommendations for improvement. Document Review During the course of this review, Management Partners analyzed numerous documents from the Town and the Arizona Municipal Risk Retention Pool (AMRRP) related to the provision and workload of legal services in Oro Valley. These documents included: • Adopted Town Budgets • Town Business License Renewal and Delinquent Process • Civil Division Written Opinions • Prosecution and Civil Division workload statistics • Legal Department Quarterly Litigation reports • Legal Department Standard Operating Procedures • Civil Division Operational Manual o Organizational Culture and Leadership Statement o 2007-08 Strategic Plan o Staff Promotion Plan o Prosecution Office Policies o Civil Division Performance Measures o Staff Job Duties • Prosecution Division Operational Manual o Plea Agreement Policy o Strategic Plan o Staff Promotion Plan o Staff Appraisal and Employee Feedback Forms 6 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department • AMRRP Annual Reports (2004-2006) • Oro Valley's AMRRP Contract for General Liability Coverage • Oro Valley's AMRRP Contract for Workers Compensation Liability Coverage • AMRRP Pool Expense and Losses Report for Oro Valley (1988-2007) The combination of these methods of data collection, coupled with Management Partners' knowledge of current industry trends and experience with similar past legal reviews, has resulted in the observations and recommendations presented in this report. Management Partners, Inc. 7 Town of Oro Valley Management Study of the Legal Department ANALYSIS AND RECOMMENDATIONS In undertaking this review, it has become obvious that Oro Valley is a unique environment in which to work and do business. The Town has done an excellent job of planning and organizing the services of the Legal Department. In recent years, however, there has been significant turnover in the Town Attorney position and concern regarding the role of the position and staffing and functions of the Legal Department. These areas of concern are addressed in detail in this report. It should be stated that the very nature of a study of organization and process is to constantly look for ways of improving services. All of the good practices and procedures currently in use are the beginning point from which further improvement is sought. As the findings and recommendations for the Legal Department are reviewed, it is important to note that a management study focuses on opportunities for improvement, not those matters that are already well done. It should also be stated that human organizations are dynamic and constantly changing. They are constantly adapting to the environment within which employees work and are affected by the constant flow of internal changes. Where there are relevant or significant changes affecting matters under review, an attempt has been made to point them out so that the reader will appreciate the context of the analysis. This analysis has been organized into three sections: ■ Department-wide Issues ■ Civil Division Issues • Prosecution Division Issues Department-wide Issues In order to set some context for the report, it is useful to review how Oro Valley's Legal Department compares in general with its peer jurisdictions. Figure 1 below highlights the 2006 U.S. Census population estimates in each jurisdiction. As can be seen, Oro Valley's population of 39,308 is on the low side and falls below the peer mean of 45,368 and the median of 41,528. However, it remains within one standard deviation above and below the mean and, thus, is reasonable to include with this group of peers. Management Partners, Inc. 9 Town of Oro Valley Management Study of the Legal Department FIGURE 1: POPULATION OF PEER CITIES 100,000 - -w 00,000 ------ --,7,, ;., { 60,000 ov , a .0., ;Asp 2 xc , 11111. t t,4 g 0. ,� i.. iia`?.:SS }t 4 : :� 'Ii ... ..... .AW00= Sahuarita Iviaran a Apache Casa Urn Pre sett Sierra Goodyear Flagstaff Avondale Surprise Junction Grande Valley Vista 13,027 29,989 31,046 34,554 39,305 41,523 42,706 47,359 56,213 75,403 85,914 Figure 2 below shows total legal department expenditures per capita for Oro Valley and its peers. At $25.37 per capita, Oro Valley's legal services spending is above the peer mean of $20.16 and median of $22.62, yet still falls below one standard deviation above the mean at $29.22. This illustrates that spending is relatively higher than average, but still within the range of "normal" as shown by the fact that both Flagstaff and Sahuarita are higher in the figure below. FIGURE 2: LEGAL DEPARTMENT EXPENDITURES PER CAPITA $40.00 --``{ $35.00 ' t #:f $30.00 -lam — < $25.00 -�— _ $20.00 -- ...' '•Ill '‘:1 k n}nf 715.00 tc o � 0111 II, ems 1-. 2,,,,,,10.U0 �� 7i� i itl 41.—.. 0 ..., op $5.00 ------- g -7) V :::'-:: *.,- --i 4 lit' A Ki :4;'-' c,, i:,-, ! ill'':,-',t siA P.7i 2< i •v" ..,.. �� �1 `�'".::??cr- +.,.:.-... .... :-w, :.rte $0.00 `;''''1 ,.:: ,..... Avondale Sierra Goodyear Caja Surprise M-arana Apache Prescott Gra Flagstaff Sahuarita �' Vista Grande Junction Valle} 5.96 6.82 13.57 16.99 19.42 22.62 22.69 23.67 25.37 27.41 36.99 It is important for the reader to understand that costs for legal counsel in Oro Valley are divided into three distinct categories: 1) the cost of in- house counsel/staff attorneys, 2) the costs of hired outside counsel, and 3) Risk Pool-related counsel. It should be noted that the expenditures in Figure 2 include outside counsel expenses included in Oro Valley's and peer legal department budgets. The level of budgeted outside counsel expenditure in each peer jurisdiction could not be ascertained for this study; however, it is a safe assumption that every municipality does not budget the same amount for outside counsel expenses, which are largely unpredictable from year to year. 10 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department Although total expenditures are slightly higher than peer cities, they are appropriate for the level and nature of the Oro Valley workload. More detailed discussions regarding legal costs can be found later in this report. Organizational Structure and Staffing Levels The Oro Valley Legal Services Department is currently organized as shown in Figure 3 below: FIGURE 3: CURRENT LEGAL SERVICES DEPARTMENT ORGANIZATION CHART Town Attorney (1 FTE) • • Law Clerk (.25 FTE) • • Town Prosecutor Chief Civil Assistant Civil (1 FTE) Deputy Attorney Attorney (1 FTE) (1 FTE) ••Assistant Town Senior Paralegal Prosecutor (1 FTE) Paralegal II (1 FTE) (1 FTE) Office Assistant • (1 FTE) 3 Civil Paralegal (1 FTE) • Legal Secretary (1 FTE) The department consists of 10.3 FTEs, with 6.3 in the Civil Division and 4.0 in the Prosecution Division. Management Partners surveyed each of the benchmark jurisdictions to determine the number of FTE employees that provide legal services. Table 1 presents a detailed breakdown of staffing for each jurisdiction by position. The reader should note that both Avondale and Sahuarita are removed from the following comparisons because Avondale contracts for civil and prosecution legal services and Sahuarita contracts for prosecution legal services. Management Partners, Inc. 11 Town of Oro Valley Management Study of the Legal Department TABLE 1: PEER COMPARISON OF LEGAL DEPARTMENT STAFF FTEs ,. t Legal Department Apache Casa Oro Sierra :Staffing(FTEs) Junction,: Grande:. ;flagstaff;, :•AGood ear, Valley.; Prescott, Vista Surprise Average Attorneys Civil Attorneys 1.0 2.0 8.0 3.0 3.0 2.8 1.0 4.0 3.1 Prosecution Attorneys 1.0 1.0 4.0 2.0 2.0 1.0 0.0 3.0 1.8 Support Staff Civil Support Staff 6.0 0.5 1.8 1.0 3.3 4.5 0.5 7.0 3.0 Prosecution Support Staff 1.0 3.0 2.5 1.0 2.0 2.0 0.0 7.0 2.3 Sub-total Civil Staff 7.0 2.5 9.8 4.0 6.3 7.3 1.5 11.0 6.1 Sub-total Prosecution Staff 2.0 4.0 6.5 3.0 4.0 3.0 0.0 10.0 4.1 Total Legal Staff 9.0 6.5 16.3 7.0 10.3 10.3 1.5 21.0 10.2 As can be seen, Oro Valley's total legal staffing of 10.3 FTEs is slightly more than the peer average of 10.2. Oro Valley is slightly below the peer average in Civil Division staffing by 0.1 FTE, and below on Prosecution Division staff by 0.2 FTEs. Figure 4 below compares total legal staffing per 1,000 population among peers. At 0.26 legal FTEs per 1,000 population, Oro Valley is above the mean of 0.22 FTEs and just above the median of 0.25 FTEs. However, the Town remains within one standard deviation of the mean and has less legal staff per 1,000 population than both Flagstaff and Apache Junction. FIGURE 4: TOTAL LEGAL STAFFING PER 1,000 POPULATION 0.3] n;. AV g.t / Yx F 0 .- 0.2D -- --- '',,i;',0:-::.-, ' ,4 .. 0.15 ------- .....--70 ..,,,.: • a - ,. 4 V4 • :`i,.•2: 5"+s.� 'LAY., 0.05 ; .: n. sierra vista Goodyear Casa Grande surr.ri:_e Prescott Oro Valley FlactstsTT Apache Lunction 0.04 0.15 0.19 0.24 0.25 0.26 0.28 0.29 12 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department Going from overall staffing to a breakdown by position type, Table 2 below shows the ratio of total support staff (including both paralegals and administrative support) to attorneys. Oro Valley's ratio is slightly below the peer average, with approximately 1.1 support staff FTEs to every attorney FTE (as compared to the peer average of 1.3 support FTEs to every attorney). Overall support staff, thus, is in line with peer jurisdictions. TABLE 2: RATIO OF SUPPORT STAFF TO ATTORNEYS Legal Department ;Apache Casa Oro :Sierra Staffing(FTEs) .Junction Grande Flagstaff. -Goodyear Valley Prescott Vista Surprise Average Total Attorneys 2.0 3.0 12.0 5.0 5.0 3.8 1.0 7.0 4.9 Total Admin Staff 7.0 3.5 4.3 2.0 5.3 6.5 0.5 14.0 5.4 Total Support FTEs Per Attorney 3.5 1.2 0.4 0.4 1.1 1.7 0.5 2.0 1.3 Overall, staffing levels in Oro Valley's Legal Services Department are in line with peer jurisdictions and are not unreasonable for the type of work being performed. More detailed review of staffing for the Civil and • Prosecution Divisions individually can be found in those sections later in this report. Communication and Roles During the interviews conducted by Management Partners in late November of 2007, the primary issue raised by both Town Council and staff was a concern regarding conflict and communication issues among the Town Attorney, Town Manager, and Council. The excessive turnover in the position of Town Attorney over the last several years offers additional evidence of this issue. Indeed, since 1999 the Town has employed five different individuals as Town Attorney and during this period the current Town Prosecutor has served as interim Town Attorney on three different occasions. In addition to the communication issues, our interviews also reflected a perception of a lack of teamwork and trust among Council, Town Attorney and Town Manager. It should be noted however, that despite the turnover and communication issues, most of the Town departments report satisfaction with the services of the Legal Department. Based upon our more recent discussions with the Town Attorney, Town Manager and their staffs, it appears that many of the issues identified have been confronted and resolved. Many of the recommendations that we had tentatively developed as a part of our draft report have already been implemented by the Town. In this section of the report, we will outline several of the more significant problems and issues that we observed early in the project as well as the improvements that have been implemented to address these issues. Because many of our initial recommendations have already been implemented, we will refer to improvements in communication and teamwork rather than restating them as formal recommendations. Management Partners, Inc. 13 Town of Oro Valley Management Study of the Legal Department During our evaluation early in the project, Management Partners observed confusion regarding the role and reporting relationship of the Town Attorney. Over the last few years the reporting relationship has changed from the Town Attorney reporting to and being evaluated by the Town Manager to being hired and evaluated directly by the Council. This led to some confusion between the Town Manager and Town Attorney regarding their roles and relationships and resulted in communication and • teamwork conflicts. Our interviews with the Council also revealed roles conflict and communication issues among the Council and Town Attorney. Some Council Members reported that they often times felt that their policy options were constrained because of the timing or wording of legal advice. Rather than provide an analysis of the options available to the Council and the related legal risk and potential consequences, some Council Members felt as though the legal opinions in fact were directing Town policy. Conversely, some Council Members indicated that at times the Town Council would become involved in administrative issues that should be left to the Town Attorney. Some Council Members reported that they were satisfied with the operations and performance of the Legal Department. This suggests the Town Attorney and Town Council had not clearly communicated and agreed upon their respective roles and expectations. Many of the issues described above have been resolved over the last two to three months by the interim Town Attorney, Town Manager and the recently appointed Town Attorney. The issue of reporting relationship for the Town Attorney is now clearly established; both the Town Attorney's employment agreement and a Council ordinance state that the Town Attorney shall report to the Council. This has eliminated any confusion or concern that the reporting relationship may change again. The process for the Town Manager to participate in the evaluation of the Town Attorney has also been formalized so that the Council will be aware of the Town Manager's assessment of the quality of legal advice provided on administrative matters. The new Town Attorney and the Town Manager have established a strong relationship and effective policies and procedures to assure that they work closely together to represent the interests of the Town. For example, the two have established a weekly meeting during which they discuss current and upcoming issues that will require close coordination by their respective staffs. In this way, the Town Manager can provide early warning to the Town Attorney of possible administrative or policy recommendations that require legal analysis and advice. Oftentimes, potential conflicts or misunderstandings can be avoided if the Town Attorney is brought into problem-solving and can assist with the development of options to be considered by staff and Council. 14 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department The Town Attorney also attends the bi-weekly Town Manager staff meetings so he can be aware of and participate in the operational and administrative issues discussed at those meetings. In this way the Town Attorney can provide informal reaction and advice in the early stages of the development of policy options for the Council. The Town Attorney and Town Manager have also developed a shared expectation that policy advice and legal strategy recommendations on major litigation issues needs to be the result of a thorough discussion of the issues and options by the two of them prior to making recommendations to the Council so that the Council is apprised of the operational, administrative, and legal risks and potential consequences during their decision making process. Recommendation 1: Clarify the roles for the Town Attorney, Town Manager and Town Council. Although most of the issues have been resolved by the Town Manager and Town Attorney, it would be helpful to confirm the roles with the Council. This could be accomplished by scheduling a workshop with the Town Attorney, Town Manager and Council participating in order to clarify roles and expectations. Given the past confusion of roles it is important to discuss the Council expectations for collaboration and teamwork between the Town Attorney and the Town Manager. This is also an opportunity for the Council and the Town Attorney to discuss the key legal and risk management issues facing the Town and the role that each plays in minimizing risk and protecting the interests of the Town. Recommendation 2: Provide annual training for the Council regarding the respective roles of the Town Attorney and Town Council in the risk management programs. This training can be provided by the League of Arizona Cities and Towns or by the Town's Risk Pool. The training can be combined with an annual report of the activities of the Risk Pool on behalf of the Town. The training will also include a discussion of the Town Council's role in minimizing litigation risk as well as their appropriate roles, responsibility and public comment when the Town is involved in active litigation. Recommendation 3: Review quarterly litigation reports to the Town Council in executive session. The Town Attorney currently provides quarterly litigation reports to the Council. These reports should be reviewed by the Council in executive session to assure that they are kept apprised of the status of litigation. Thus, when necessary, the Council will be in a position to make informed decisions on settlements. Management Partners, Inc. 15 Town of Oro Valley Management Study of the Legal Department Customer Service Key to building trust and relationships is some assurance that customer satisfaction is high. As noted earlier in this section, despite turnover in the Town Attorney position, departments are generally happy with the operations of the Legal Department. Customers note that the office is responsive and timely in responding to requests for assistance. The Civil Division does not have a system in place for regularly soliciting feedback from its customers (the Town Council, Town Manager and Town departments) regarding the quality or timeliness of legal services. The absence of such feedback in part means that there is no regular quantifiable assessment of customer satisfaction. The Legal Department can further document its performance through a formal annual customer satisfaction survey. Recommendation 4: Implement an annual customer service survey and track progress over time. The Legal Department can distribute an electronic or hard copy survey to all department users requesting open, honest, and anonymous feedback. Anonymity is crucial to ensuring honest responses. The information provided can be used to gauge customer satisfaction over a period of time, and to identify opportunities for improvement. Information Technology Personal computers and word processing software in the Legal Department meet modern standards. The department's personal computer systems are maintained by the Information Technology Department, which provides technical support and administers a computer replacement schedule for Town government. The department uses standard Microsoft Office and Adobe word processing and spreadsheet applications. Consistent with standard practices, all attorneys and paralegals have to access an online legal research tool. The department purchases annual licenses to Westlaw, an online legal research service that provides access to legal statutes, case law materials, public records and other legal resources. Legal Case Management and Administrative Support System The Prosecution Division uses Prosecutor Dialog, prosecution-specific case management software, and case files to track and manage individual citations and cases. Prosecutor Dialog can produce standard workload and statistical reports; staff expressed general satisfaction with the system. The Division has secured a state grant to upgrade and obtain licenses to a new version of the software (called Judicial Dialog). This upgrade will occur in June 2008. The Civil Division does not use a legal management software suite for basic case management, assignment tracking, and staff time accounting. Civil Division workload statistics are manually populated using standard Microsoft Office applications. 16 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department In the FY 2006/07 budget, the department purchased Amicus Attorney (Premium Edition, Version 7), a legal management software suite, at a cost of approximately $6,000. Installation of Amicus Attorney was completed in July 2006. From the outset, there were software integration problems between Amicus Attorney and the Town's email and calendaring software, Microsoft Office. The Information Technology Department worked unsuccessfully with the software manufacturer to resolve these issues. Efforts ceased after the previous Town Attorney, responding to various complaints from staff, authorized discontinuing use of Amicus Attorney. The software was only deployed department-wide for one month. Management Partners' staff interviews revealed that dissatisfaction with Amicus is widespread amongst staff. In general, staff believes that Amicus Attorney is a legal case management tool best suited for corporate legal offices and their public sector departmental activities do not align with the software's capabilities. Management Partners' experience with legal case management systems and in-house municipal legal departments suggests the opposite. Many cities, large and small, use legal case management systems similar to those offered by Amicus Attorney. Several staff members noted the software's time accounting function as an example of how the program is not designed for in-house municipal legal operations. Management Partners recommends that the attorneys and paralegals begin to keep a record of the cases and departments where legal assistance is provided. Doing so will provide basic information helpful to department managers regarding time spent serving various Town customers and insight as to workload type, and will provide data for charging enterprise and capital funds for legal costs if such a policy is implemented. It is outside the scope of this report to conduct a comprehensive review of the Amicus Attorney system to determine if the software is the most appropriate fit for Oro Valley. It should be noted, however, that the Legal Department opted to postpone purchasing training services from the manufacturer of Amicus Attorney until staff had experience using the system. Due to the authorization to discontinue its use, training from the software manufacturer did not occur. It is unclear if staff frustrations with Amicus Attorney relate more to unresolved software integration issues and insufficient training than to a misalignment in the software's capabilities and the department's needs. At the time of this review, the version of Amicus Attorney owned by the Legal Department is the most current version available for purchase. The market for legal case management systems is constantly evolving. Software developers regularly add modules and system enhancement that align with the operations of an in-house municipal legal department. Past clients of Management Partners have successfully used Amicus Attorney, TownLaw, CountyLaw, and Judicial Dialog legal case management and administrative support systems. Management Partners, Inc. 17 Town of Oro Valley Management Study of the Legal Department Management and administrative tracking work activities in the Oro Valley Legal Department will significantly benefit from a comprehensive automated legal case management and administrative support system. Specific program modules will vary by manufacturer; however, the most significant software management and administrative needs for. the department are listed below: • Litigation case management • Contract management • Time accounting • Advisory/Assignment management Recommendation 5: Release Request for Proposals (RFP) for a legal case management program. Benchmark the RFP results against the legal case management and administrative support system that the department owns but is not currently using, Amicus Attorney. Recommendation 6: Implement a simple time tracking system for all attorneys and paralegals. While time tracking in the public sector does not rise to the level of need as in the private sector with "billable hours," the data is still extremely useful in managing the department. Without time tracking, management does not know what workload demand is, what the most consistent work request types are, and thus, will not have the specific data to justify future staff requests as the workload increases. The data can also be used to quantify the services provided to individual departments should cost allocation of legal services be appropriate in the future. While this recommendation applies to both Civil and Prosecution attorneys, time tracking primarily aligns with the work completed by Civil attorneys. Prosecution attorneys need only track their time as it relates to services provided to other city departments (i.e. training and law assistance to the Police Department). Time tracking need not be precise, but a simple system of logging in all work requests by customer and type, as well as time spent by half-hour would result in significant useful data for analysis by management. In order to ensure more time is not spent tracking than working, the system must be simple and be a requirement for all department attorney and paralegal staff. 18 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department Document Retention During onsite interviews, Management Partners learned that the Legal Department and the Town Clerk's Office were simultaneously, and separately, evaluating document retention solutions for the long term storage of electronic and paper documents. The Legal Department will benefit significantly from an electronic document management system for its electronic documents including scanned versions of paper documents. Due to the sensitive nature of certain documents maintained by the Legal Department, any electronic document management system must contain various redundant levels of security and delineated user rights. Nevertheless, the document retention needs of the Legal Department are not exclusive to the department. Due to the cost and administrative needs of effectively maintaining an electronic document retention system, a Town-wide solution is most efficient. Recommendation 7: Implement a Town-wide electronic document retention system that links Legal Department document retention efforts with those of the Town Clerk's office. Security levels should be created such that confidentiality for departments can be assured while participating in a Town-wide system. Recommendation 8: Designate one person from each department to be responsible for records retention. To develop a system in which the Town accomplishes records retention according to written policies, the Town Clerk's office should be the leader in creating an environment in which departments not only understand their responsibilities, but also are accountable for implementation. • Recommendation 9: Establish procedures to provide clear guidance to employees responsible for records retention. Any employee responsible for records retention should be able to access clearly written policies. Recommendation 10: Establish procedures to make records retention mandatory. Employees who have records retention responsibilities must be accountable for the retention program to succeed. Providing evidence of compliance and penalties for non-compliance will help with enforcement. Management Systems In our experience, the Legal Department in Oro Valley is above average in terms of having a strategic and analytical approach to management of the operation. The department has sound strategic planning and goal setting in place, as well as documentation of policies and procedures. The Civil Division has the beginnings of a performance measurement system. This Management Partners, Inc. 19 Town of Oro Valley Management Study of the Legal Department is not always the case and staff should be commended. There are, however, some opportunities to further strengthen management systems, as outlined below. Performance Measurement Oro Valley's legal Department does have some performance measures in place which are noted in the division's manual. Workload statistics are maintained that could be used to improve the performance measures. Some samples of current performance measures include: • Paralegal ratio of 0.5 to 1.0 per lawyer • Daily caseload reports by attorney and type to monitor status • State Bar compensation surveys • Ample time and funding for lawyers and staff to meet Continuing Legal Education (CLE) requirements • Monthly meetings of both divisions to overcome the "silo" effect and discuss internal issues While a framework of performance measurement exists, it can be strengthened and improved. Performance measurement is the practice of regular and continuous data collection and reporting on important aspects of an organization's services, programs or processes. When used in a local government setting, performance measurement is a tool that helps elected officials to make decisions about policies and resources, while also assisting managers to make decisions about program operations. Performance measures are numeric indicators representing a specific process or set of service delivery activities. By collecting performance data linked to specific activities, the quality -- impact or outcome - of service delivery efforts can be measured. The . Oro Valley Legal Department began using performance measures in 1999; however, due to the high turnover in Town Attorneys, the measures have not been tracked or analyzed on a consistent basis. Further, the department's existing performance measures are not comprehensive or automated. While existing measures create a framework for a successful departmental performance measurement system, the majority are actually goals statements and not numerical measures. Successful performance measures illustrate workload levels; indicate quality of services (effectiveness); and provide metrics for financial oversight (efficiency). Such measures are defined below. Workload measures provide information about the volume or output of a program and are based on questions such as "how much" or "how many." Workload measures provide context about 20 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department service demand or activities, but provide little managerial information about results on their own. Sample Legal Department Workload Measures • Number of claims filed against the Town • Number of lawsuits filed against the Town • Number of lawsuits and administrative actions filed or initiated by the Town • Number of total department requests for service • Number of resolutions prepared • Number of ordinances prepared • Number of DUI cases per 1,000 population Efficiency measures relate program outputs to resources consumed and are based on the question "how efficient." Efficiency measures provide information on how effectively you use your resources to accomplish desired results and meet customer needs. They are expressed as unit costs and as output per labor hour or FTE. Sample Legal Department Efficiency Measures • Cost of total Town legal services as a percentage of total legal costs (General Fund Legal Department budget plus Risk Pool premiums and deductible budget) • Cost of external counsel (within the General Fund Legal Department budget) as a percentage of total.legal costs (total General Fund Legal Department budget) • Total prosecution division costs per cases filed Effectiveness measures indicate the results of a program's effectiveness in accomplishing its objectives and answers the question "how well." Demonstrate quality of program service delivery and indicate how well the program/services achieved desired outcomes. The results of these measures should inspire managerial thinking about continuously improving programs. Sample Legal Department Effectiveness Measures • Percent of claims settled prior to litigation • Percent of new cases resolved • Percent of claims resolved resulting in no monetary payout • Percent of lawsuits resolved resulting in no monetary payout • Percent of claims resolved within established reserve levels • Clearance rate: percentage of cases closed to cases filed • Total convictions per cases filed Management Partners, Inc. 21 Town of Oro Valley Management Study of the Legal Department By strengthening its system of performance measurement to include numerical measures for efficiency and effectiveness, as well as workload, the Oro Valley Legal Department can more thoroughly evaluate its operations and set goals for future improvement. Recommendation 11: Revise existing performance measures and implement a performance measurement system that includes measures for workload, effectiveness and efficiency. To achieve meaningful results from a program of performance measurement, staff at all levels of the organization should be involved in the process of developing measures and regularly collecting and evaluating performance data. Recommendation 12: Automate the collection of performance measurement data with the installation of a legal office management system (software). Currently, department performance measures and statistics are tabulated manually by staff rather than automated for extraction from a legal office management system. Whenever possible, the collection of performance measurement data should be automated so that results can easily and quickly be extracted from computer databases. This would decrease manual computation and collection and improve data quality. Office Space Visual observation of Legal Department offices, as well as concerns expressed during staff interviews show some need for improvement to the physical workspace. Two attorneys, the Assistant Town Attorney and Assistant Civil Attorney, are housed in cubicles in public areas of the building, resulting in a lack of privacy for confidential legal discussions. These two attorneys are also located away from the rest of the Legal Department and their support staff, which results in a minor reduction in communication. The lack of office space results in the unusual situation of having paralegals assigned to an office but two attorneys located in cubicles. It should be noted that the Senior Paralegal in the Prosecutor Division is the administrator for a criminal justice database, which is required to be stored in and accessed at a secure location. .While not to the point of dysfunction, some consideration of improvements to Legal Department office space would improve morale and communication. Recommendation 13: Consolidate all Legal Department staff into a single location. The goal is to form a more cohesive work unit. Recommendation 14: Provide an office for every attorney to ensure privacy. Attorneys regularly must engage in very private discussions on confidential matters. The norm is to provide attorneys with offices for this reason; to safeguard the trust clients have in keeping 22 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department matters confidential. Not only can other staff overhear private legal conversations, but visitors to Town Hall can as well. Attorney time is also valuable and comes at a cost premium; offices tend to reduce interruptions and distractions as well as allow the attorney to control his or her level of accessibility at any given time. Civil Division Issues The Civil Division is responsible for providing advisory and transactional support to the Mayor and Council, boards and commissions, the Town Manager, and all departments, which includes preparing opinions, contracts, deeds, ordinances and resolutions. This division also defends the Town and pursues legal claims on its behalf, either directly or through outside legal counsel which it supervises. Current Staffing and Workload As noted earlier, the Civil Division is comprised of 6.3 FTEs, including three attorney FTEs, two paralegals, and one secretary as shown in Figure 5 below. It should be noted that the Law Clerk position has been vacant for two years because of the lack of office space. FIGURE 5: CIVIL DIVISION CURRENT ORGANIZATION STRUCTURE Town Attorney (1 FTE) • • Law Clerk (0.25 FTE) Chief Civil Assistant Civil Deputy Attorney Attorney (1 FTE) (1 FTE) • • Paralegal II (1 FTE) Legal Secretary • (1FTE) • Civil Paralegal (1 FTE) Management Partners, Inc. 23 Town of Oro Valley Management Study of the Legal Department As shown in Figure 6 below, Civil Division staffing for Oro Valley is slightly above the peer mean of 0.13 FTEs per 1,000 population but matches the peer median at 0.15 FTEs and falls within one standard deviation of the mean, meaning it is within a reasonable range. Staffing for the Oro Valley Civil Division is comparable to that in peer jurisdictions. FIGURE 6: CIVIL STAFFING PER 1,000 POPULATION 0.25 0.20 --457 0.15 r. ock x i; <,3„.„ 0.10 „., •" ii 0.05 • n..;;:� Y .:) • ..nF.' .v1 ... ..�.n om.i::'. i _ ....�w : •.-........: •...':. ..:ti.... ..........+:�"?.�XX:.�....... .�.•.'Gi':�`?.'z....... ...tov:•.A:,n. r'.•.iGS::.?��'�?�.............::C' . ........w.. ........«--....««. Sierra Vista Casa Grande Goodyear Surprise Sahuanta Oro Valley Flagstaff Prescott Apache Junction 0 0 0.07 0.08 0.13 0.15 0.16 0.17 0.18 0.23 As noted earlier in this report, overall Legal Department staffing is line with that of peer jurisdictions. The Civil Division's staffing at 6.3 FTEs, just is 0.2 FTEs above the peer average of 6.1. Looking more closely, Oro Valley's Civil Division compares to the peer average as shown in Table 3 below: TABLE 3: CIVIL DIVISION STAFF FTES COMPARED TO PEER AVERAGE Staff Type Oro Valley Peer Average % of Average Attorneys 3.0 3.1 97% Total Admin Staff 3.3 3.0 110% TOTAL: 6.3 6.1 103% Civil Division attorney staffing of 3.0 FTEs is just under the peer average of 3.1, while the size of Oro Valley's support staff is slightly higher than the peer average of 3.0 FTEs. The additional staffing of 0.3 FTEs relates to an intern Law Clerk position that is currently vacant. On a full time staffing basis, legal support in the Civil Division is equivalent to the peer average. Management Partners concludes that any decrease in existing staffing, particularly professional attorney staff, would likely result in a decrease in service levels and responsiveness of the division to legal requests from the Council and department customers. In interviews, one item noted repeatedly by staff attorneys as impacting their workload capacity is their regularly required presence to support a variety of boards and commissions. Staff estimated that attendance at these meetings consumes approximately 900 work hours per year. Management Partners' review of these requirements shows that attorney 24 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department support is not always required and is being over-used. In many cases, a staff attorney need not be present at every meeting. In addition to meetings of the Town Council and the Planning and Zoning Commission, the other high priority boards for regular attorney attendance are the Development Review Board and the Design Review Committee. The remainder of the boards and commissions should request attendance by the attorneys on an as-needed basis. Recommendation 15: Reduce the number of meetings attended by Civil Division attorneys. Doing so will free up valuable attorney time for daily transactional work and help to maintain professional attorney capacity into the future. Request for Legal Services Management Customer satisfaction is the ultimate determinant of performance in the delivery of any professional service, and therefore client perceptions about customer service and responsiveness are critical. Management Partners interviewed several department heads during the course of this management study. Overwhelmingly, customer departments are pleased with the response time and quality of work provided by the Legal Department. Customers appreciate attorneys' open door policies and stated that they feel informed and knowledgeable about the status of pending legal requests. Some customers reported that the request for legal services process is overly bureaucratic; nonetheless, they remain satisfied with overall response time. The "bureaucracy" that customers note relates to the "Request for Legal Services" (RLS) intake sheets. The RLS process is further explained below. Despite its perception of being bureaucratic, however, Management Partners recognizes the department's intake sheet process as a necessary mechanism to track customer requests and populate workload statistics. The Oro Valley Legal Department has implemented intake sheets for RLS to initiate work assignments. Departments seeking legal assistance are encouraged to submit their request on a RLS intake sheet. The Legal Secretary logs the intake sheets into the department mail log (Microsoft Word file) and forwards the intake sheets and any associated documents to the Paralegal II, who meets with the Chief Civil Deputy Attorney to discuss allocation work assignments to individual attorneys and paralegals. Following the Chief Civil Deputy Attorney's decision on work assignments, the Paralegal II completes the following task prior to routing work assignments to the appropriate staff for completion: • Ensures RLS is complete, with necessary documents attached • Communicates with customer, if necessary • Determines if a standing opinion exists or if the RLS question has previously been answered Management Partners, Inc. 25 Town of Oro Valley Management Study of the Legal Department • Forwards a copy of the RLS intake form to the Paralegal 1 for input into the RLS tracking log (Microsoft Excel file) and calendaring for email reminders • Determines which attorneys and paralegals should complete the request and forwards a For Your Information (FYI) memo to the Chief Civil Deputy Attorney In general, the RLS system runs smoothly. Most departments are accustomed to making requests for service on the RLS intake sheets. In order to better understand the process, Management Partners created process maps of the current RLS intake and dissemination processes (see Attachments B and C to this report). Management Partners believes that the initial review to ensure that the required documents are attached as well as recorded in the RLS tracking log and calendaring responsibilities should be assigned to the Legal Secretary, thereby creating extra capacity for paralegals to review contracts, complete RLS forms, draft ordinance and resolutions, etc. It is important to note that the efficiency of RLS intake responsibilities will increase with the implementation and use of a comprehensive legal case management and administrative support system. Recommendation 16: Assign intake review and calendaring responsibility to the Legal Secretary. As noted above, the Town Attorney and other attorneys have an open door policy that is praised by customer departments. While there is excellent customer service, due to the open door policy, attorneys often receive informal requests for assistance which do not appear in the workload tracking data. The prevalence of such informal requests that are not tracked is unknown. Staff estimates that approximately 90% of requests are currently tracked. Since the potential loss of 10% of workload data is problematic, attorneys need to ensure that these informal requests are communicated to support staff and reflected in workload tracking data. Recommendation 17: Ensure that attorneys communicate substantive informal requests to support staff for workload tracking purposes. Attorneys should take down all basic RLS information in writing from verbal requests and pass this information to support staff to add to the workload tracking logs. Liability Case Management The Town has contracted with the Arizona Municipal Risk Retention Pool (the Risk Pool) to defend the Town against covered claims and lawsuits in matters such as damages from wrongful acts, certain employment claims, land use and zoning issues. The contract provides that the Risk Pool will provide, at its expense, legal defense as well as payment of claims and judgments under certain conditions up to policy limits. While the scope of Management Partners' review of the Legal Department does not include 26 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department an analysis of the Risk Pool contract, certain terms and provisions of that contract have a direct impact on the staffing levels of the department, the use of external counsel, and the amount of legal fees paid by the Town Attorney to outside counsel. To the extent the Risk Pool contract affects the use of external counsel in the Legal Department, it is addressed in this report. The Risk Pool pays for legal costs related to the Town's accidents and negligent acts, but shares legal costs with the Town in declaratory judgment and injunctive relief suits. For example, the Risk Pool pays 50% of the first $25,000 of legal fees and 25% of the second $25,000 up to a total amount of $100,000 for the reporting period; the Town pays all legal expenses over $50,000. The Risk Pool shares costs of claims and suits arising from land use, zoning, subdivision and redevelopment matters. The Town pays 20% of the cost of litigation, including legal fees, and settlement or judgment, and the Risk Pool pays 80%. Workers compensation, contracts entered into by the Town, and intentional acts, except reasonable force by law enforcement officers, are not areas covered by the general liability Risk Pool contract. An additional contract with the Risk Pool covers Workers Compensation claims and absorbs legal expenses for such claims. Both contracts with the Risk Pool permit the Risk Pool to choose counsel to represent the Town and negotiate the hourly rate with counsel. Claims against the Town are submitted to the Finance Department which serves as administrator of the Risk Pool contracts and forwards them to the Risk Pool. The Risk Pool determines if the claim is covered by the Risk Pool contract and, if it is, proceeds with defense; if not, it declines coverage and returns the claim to the Legal Department for its review and processing. As shown in Table 4 below, the Town reports that over the last three years, 93 liability and land use claims were handled by the Risk Pool, of which six claims were litigated. This table excludes the "Pay for Pager" case which was a multi-year dispute initially handled by the Risk Pool and continued by external counsel hired by the Town. TABLE 4:THREE-YEAR HISTORY OF LIABILITY CLAIMS HANDLED BY RISK POOL Type of Claims Year Claims Filed Claims Litigated Litigated 35 2 Zoning 2005 Wrongful Death Wrongful Arrest Cost Assessment 2006 34 4 Public Records Permit Issuance 2007 29 1 N/A TOTAL 94 7 N/A Management Partners. Inc. 27 Town of Oro Valley Management Study of the Legal Department The number of liability claims handled by the Risk Pool has been decreasing slightly over the last few years. No cases were litigated last year. Data was not available on the number of claims filed with the Town for which coverage was declined by the Risk Pool and returned to the Town for handling. The Risk Pool selects and hires counsel to represent the Town, and has the power to settle claims on its behalf. The hourly rates for counsel hired by the Risk Pool were reported as ranging from $125 to $325 per hour. In addition to general liability coverage, the Town contracts with the Risk Pool for Workers Compensation coverage. The three-year average for Workers Compensation claims filed against the Town is approximately 31 claims per year. Only one claim in the three-year period was litigated. As Table 5 below shows, the total premium paid for liability coverage for the Risk Pool and for excess coverage has risen about 27% over the last five years, with an average annual premium of $680,938. Risk Pool premiums have steadily increased while excess coverage premiums have decreased during the same period. It was unclear from the information provided the specific factors which gave rise to the premium adjustments or whether the experience rate of the Town was a factor in determining the rates. TABLE 5: PREMIUMS PAID FOR RISK POOL GENERAL LIABILITY AND EXCESS COVERAGE FY03-04 FY04-05 FY05-06 FY06-07_ FY07-08 AMRRP 599 096 $642,510 $665,835 $681,109 Premium $509,847 $ ' Premium for 66,517 $ 69,751 $ 58,637 $ 59,640 $ 51,746 Excess $ ' TOTAL $576,364 $668,847 $701,147 $ 725,475 $732,855 In addition, the Town pays a premium reported as approximately $250,000 per year for Workers Compensation coverage, resulting in premium payments for insurance coverage approaching one million dollars per year. Table 6 shows the payments made and expenses incurred by the Risk Pool on behalf of the Town for the past four years as reported by the Risk Pool. It also indicates the deductible paid by the Town as its share of the judgments, settlements and expenses. Note that there are two columns for FY05-06; the first column includes all costs and the second FY05-06 column excludes payments and expenses from a single $2,625,000 wrongful death case for negligent road design that occurred that year. 28 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department TABLE 6: Loss AND EXPENSES PAID ON BEHALF OF AND DEDUCTIBLE RECEIVED FROM ORO VALLEY FOR LIABILITY CLAIMS AS REPORTED BY RISK POOL FY03-04 FY04-05 FY05-06 FY05-06 FY06-07 Loss Paid $48,791 $62,546 $2,660,187 $35,187 $88,927 Expenses $29,701 $24,090 $173,117 $43,554 $15,620 Deductible ($14,631) ($17,211) ($25,283) ($5,283) ($15,734) TOTAL $63,861 $69,425 $2,808,021 $73,458 $88,813 The Risk Pool and its administration through the Finance Department are inextricably tied to the Legal Department's staffing needs and external counsel requirements. Claims not covered by the Risk Pool are sent to the Law Department for handling either by in-house or external counsel. In cases where the Town chooses not to accept a settlement recommendation by the Risk Pool, the Risk Pool will pay a limited amount of legal fees and when such limit is reached, the Legal Department must assume responsibility for the case in-house, hire outside counsel, or assume the remaining cost of the attorney chosen by the Risk Pool. In cases involving land use, the Town absorbs 20% of the cost of the counsel chosen by the Risk Pool. As can be seen from the table above, one major incident such as the wrongful death claim listed in FY05-06 can change the experience rate dramatically. What is more relevant to a discussion of in-house staffing levels and general use of external counsel is an evaluation of the more normal caseload over a given period and the cost implications that might arise from cost sharing with the Risk Pool. Funds for extraordinary situations, in the event cost sharing becomes an issue, are more commonly expended from contingency funds rather than annual departmental budgets. The history of recent claims for Oro Valley was not readily available from either the Finance or Legal Departments, although much of the relevant information was provided when requested from the Risk Pool. It is essential that the Town Council, the Legal Department, and the Finance Department be fully apprised of not only the nature of cases being settled, but the amounts paid out by the Risk Pool on behalf of the Town, the rationale behind its payments, and the amounts paid by the Risk Pool for legal counsel. Such information is crucial for the Town to make well- considered judgments about the Town's acceptance of Risk Pool recommendations and continuation of legal representation when necessary, as well as to form the basis for decisions concerning current case management, analysis and projection of future needs for legal staff and budgeting for costs of deductibles, settlements and judgments and for proactive risk management. The premium for the Risk Pool, the cost of payment of claims under $10,000 and the shared cost of judgment and legal fees represent a significant cost for the Town. Periodic review of the Risk Pool contract, its Management Partners, Inc. 29 Town of Oro Valley Management Study of the Legal Department provisions, experience rate and premium cost will assure the contract is responsive to changing needs. Shifts in the types of claims filed may suggest opportunities for more use of in-house counsel, reduced reliance on external counsel, and Risk Pool representation. Information related to the Risk Pool and costs associated with liability management was not readily ascertainable from Town budget documents. Budget allocations for Town payments for deductibles and Risk Pool premiums appeared to be contained within the General Administration budget, but were not identified with sufficient specificity to separate them from other general expenses. Council and departments need to be advised on a regular basis of the amounts of claims paid on behalf of the Town for various departmental activities in order for the Town to be proactive in eliminating future risk as well as determining the cost-effectiveness of belonging to the Risk Pool. Readily available information will provide departments with guidance in determining need for expenditures related to prevention of safety hazards and risk of loss prevention. • Recommendation 18: Obtain regular reports from the Risk Pool. These reports should include numbers of claims handled, disposition of claim, amounts expended on the Town's behalf, counsel hired by the Risk Pool to handle claims and hourly rates. It would also be beneficial to include the Town operations or service areas related to the claim, as well as comparison of claims and costs with other members of the Risk Pool. Recommendation 19: Revise the budget document to identify the amounts paid by the Town to the Risk Pool in payment of premium costs, deductibles and shared costs. Recommendation 20: Periodically conduct a detailed cost benefit analysis of Risk Pool experience. Such a review should include premium rate and distributions on behalf of the Town including a comparison with review of comparable jurisdictions. Recommendation 21: Explore alternatives to use of Risk Pool counsel. The Town should evaluate whether handling of minor claims administration in-house would reduce cost of the Risk Pool premium sufficiently to justify additional staffing in Law Department. Recommendation 22: Create a Risk Manager position to monitor the Risk Pool contracts. The primary responsibility of this position would be to develop and implement a comprehensive risk management program for the Town. This would include management of the Risk Pool contract, evaluation of liability trends, risk 30 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department assessments, and risk management training for all departments. Recommendation 23: Establish a targeted risk loss prevention program to attempt to minimize numbers of liability and Workers Compensation claims. The Town's Risk Manager would be held responsible for identifying risk trends and creating and implementing proactive programs to reduce incidences. Recommendation 24: Adopt a risk management protocol for communication between the Town and the Risk Pool when incidents occur which may give rise to claims against the Town. The protocol would establish reporting relationships, timing of notification, and responsibilities for coordinating information among the administrative departments, the Town Attorney, the Risk Pool and the Town Manager from the time a Town employee becomes aware that an incident has occurred that may result in a claim against the Town until final resolution of any claim filed. Use of External Counsel The use of external counsel varies greatly among jurisdictions. The size of the Town's legal staff, its internal expertise, and the volume of work are the keys to determining the appropriate balance of in-house representation and use of external counsel to supplement the work of the staff. Staffing levels of the Legal Department are within normal ranges for a municipality of Oro Valley's size that desires to maintain an in-house capacity for routine corporate matters and contracts with a third party administrator for management, and defense and payment of general liability claims and other matters. The contract with the Risk Pool provides the resources for defense of most tort claims and land use issues in which the Town is involved. Legal fees are absorbed by the Risk Pool in general liability cases even when the Town reimburses the Risk Pool for the loss incurred under the deductible provisions. The cases, therefore, for which the Town might seek external counsel fall into a few specific categories common to most jurisdictions: when the matter is highly specialized and the expertise is beyond the capacity of the Legal Department; when there is a conflict of interest that prevents the Town Attorney from ethically representing the Town's interests; and when the resources of the Town Attorney's office are insufficient for adequate representation because of workload issues. Management Partners, Inc. 31 Town of Oro Valley Management Study of the Legal Department To assure that external counsel is used in the most cost-effective and appropriate manner, best practices require that there be: • An established policy for the criteria to be used to determine when it is appropriate for external counsel to be hired, • Objective criteria for the selection of external counsel, • A process for determining reasonable and competitive cost of services, for guidelines for compensation, • Performance expectations and standards, • Monitoring of cost and case progress by the Legal Department, and • An evaluation process which provides an assessment of representation and recommendation as to future engagement of counsel. The Civil Division's manual contains a section entitled "Selection and Retention of Outside Counsel" with comprehensive guidelines addressing the primary. elements identified as best practices in the use of external counsel for public law offices. The manual sets forth guidelines for obtaining outside legal services including factors of staff workload and timeliness, cost-effectiveness, staff expertise, case type and geographic location. Retention of counsel is accomplished by sole-sourcing or competitive contracting, depending on the expertise required. Limitations are in place to assure contracts are not concentrated to only a few providers. Maximum limits on hourly rates are established based on the average Arizona state-wide rates. The manual sets forth the expectations for the representation, identifies specific reimbursable costs, and provides for monitoring and evaluating performance. The Legal Department has an effective policy in place for adequate management of external counsel consistent with best practices. Based on Management Partners' experience in other jurisdictions, the Legal Department's use of external counsel has been conservative and appropriate. The Legal Department reports that over the last three years it hired external counsel in five cases where it had sole responsibility for hiring counsel separate from the Risk Pool involvement. Those cases fell into two primary categories: conflicts of interest including election cases, and condemnation cases where specialized knowledge may be required. Table 7 shows the entire range of cases for which external counsel costs were paid by the Town Attorney. This table includes both cases in which the Town Attorney chose to involve outside counsel, those in which the Risk Pool chose counsel and the Town was required to share costs, and those in which the Town Attorney assumed responsibility for legal costs after involvement by the Risk Pool terminated. Information regarding the type of cases for which these legal fees were paid was not provided. 32 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department TABLE 7: THREE YEAR COSTS OF EXTERNAL COUNSEL IN VARIOUS TYPES OF CASES PAID DIRECTLY BY TOWN Pool Shared Contract Condemnation Conflicts Miscellaneous Cost Land Use Pay/Pager FY04-05 $15,461 $24,053 $ 15,551 $ 3,609 $ 38,109 FY05-06 $ 9,958 $34,967 $ 34,512 $ 623 $123,561 FY06-07 $ 60 $ 3,614 $ 1,391 0 $ 69,814 TOTAL $25,479 $62,634 $51,454 $4,232 $231,484 Three-Year Average $ 8,493 $20,878 $ 17,151 $ 1,411 $77,161 Of these costs, payments for representation in conflicts of interest cases are unavoidable as the Town Attorney cannot ethically represent the Town in such circumstances. Of the remaining cases, unless there is specific expertise in-house, the volume of cases is so small that to develop the necessary expertise and to direct the limited resources of the department to that effort would not be cost-effective. Shared costs with the Risk Pool are required through contract and cannot be avoided. The most significant cost to the Town was the "Pay for Pagers" case, a contract dispute with major policy implications and substantial application of resources. Other outside counsel, such as bond counsel for financial matters, may be used but instances are infrequent and are therefore not a part of this review. Table 8 below shows hourly costs by type of external counsel hired. TABLE 8: AVERAGE HOURLY RATE PAID To POOL ATTORNEYS AND TOWN-HIRED ATTORNEYS 2005 2006 2007 Average $190/permit Counsel $190/zoning $190/fund issue Hired by Risk $130/tort $130/records 0 $160/hr Pool $130/tort $200/condemn. Town-Hired $160/election $200/condemn. $195/condemn. $184/hr $'165/election $185/conflict Town Hired $325/Contract Specialist Pay for Pagers $325 $325 $325/hr Itis important to note that the cost of Risk Pool attorneys is not part of the Town Attorney's external counsel budget. Legal fees are, for the most part, paid as part of the Town's Risk Pool premium. Management Partners, Inc. 33 Town of Oro Valley Management Study of the Legal Department Entities such as the Risk Pool that contract for larger volume of work with legal counsel often have the opportunity to negotiate lower rates for service that are more competitive than those that can be acquired by a small procurer. The difference between the two average hourly rates is minimal and even the higher rates are within normal ranges for services of this nature in this area. The Town Attorney reports that an Arizona Supreme Court survey indicates that the state average for billable attorney time is $280 per hour. With one notable exception, as shown above, Oro Valley is below the state average. The exceptional situation was the multi-year "Pay for Pagers" case which involved special expertise from a law firm in Tucson and was a significant case having impact on Town policy. It can be expected that costs for special expertise not available in the local legal community will often exceed even the state average. Periodic requests for Requests for Quotes (RFQs) from legal counsel in areas in which litigation or need for specialized representation can be reasonably expected may produce a more competitive rate. Recommendation 25: Request qualifications from legal counsel in areas where external counsel is anticipated or used repetitively and establish a list of providers with negotiated rates. Generally, costs for legal counsel in matters handled by the Risk Pool are covered by the cost of the Risk Pool premium and are therefore not part of the Legal Department budget. Except in certain limited cases, there is no additional cost to the Town for legal services. The amount paid by the Town is the judgment or settlement which falls within the $10,000 deductible limit. The costs of legal counsel and the remaining portion of the judgment or settlement, if any, are paid by the Risk Pool. However, in cases where a settlement has been proposed by the Risk Pool and the Town determines that it will not accept the settlement, costs of legal counsel beyond that allocated to the settlement must be paid by the Town. Accordingly, there are outside counsel costs associated with continuing a case when settlement has been recommended and rejected. Since the case has been initially prepared and handled by counsel hired by the Risk Pool, it is often more effective, although likely to be more costly, to continue with the same representation than to attempt to bring in new counsel unfamiliar with the case. The rates of the counsel hired by the Risk Pool, in those cases, have already been established by the Risk Pool and are unlikely to be reduced by counsel at later stages of litigation. Costs for outside counsel have varied dramatically from 2004 through 2007. The Civil and Prosecution budgets have been combined in past years at $100,000 for external counsel; however, the Legal Department currently has a program budget which separated the two divisions for budget purposes and reduced the allocation to the Civil Division for external counsel to a level of$80,000. The hourly rates paid by Town-acquired counsel for cases handled by the Legal Department ranged from $160 per hour to $200 per hour. Of those expenditures over a three-year period, an average of $8,493 was 34 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department expended on condemnation cases. The remaining costs were election or conflict cases which could not have been handled in-house, specialized cases, or completion of Risk Pool cases. Litigation is externally driven and cannot be foreseen with any accuracy. While it may be possible to handle condemnation cases in-house as discussed later in this section, it is a move which should be carefully assessed based on quality of results. The data suggests that even with such a change, the costs of obtaining outside counsel for legal assistance where in-house counsel is not appropriate, can be expected to exceed the $80,000 budgeted for the year. The Town Attorney has used conservative policy guidelines for use of outside counsel, and nonetheless has needed funding as high as $200,000 for appropriate representation. Significant reduction of budgeted funds available to hire outside counsel may have the unintended consequence of influencing decisions on whether to continue litigation or settle Risk Pool cases as well as deter obtaining outside opinions on sensitive matters or major Town issues. The fact that the Legal Department is small increases the need for funds to obtain necessary expertise. The policies contained in the "Selection and Retention of Outside Counsel" manual state that rates in excess of the stated maximum must be approved by the Council, providing a safeguard to unfettered spending on external legal counsel. The department should assess its use of outside counsel whenever there is a legal staff change which significantly alters the level of expertise of in- house attorneys. At least every three years it is prudent to make an assessment of litigation trends, experience rate and anticipated needs based on evolving Town priorities. Because the use of outside counsel in Oro Valley is used primarily for litigation for which it must seek external counsel, budget adjustments for outside counsel might be more in line with actual need if predicated on a three-year average. However, since most of the cost of outside counsel is for cases in which the Town has little or no discretion in going outside, an amount should be reserved in a contingency account to accommodate unexpected litigation costs. Recommendation 26: Assess the usage of external counsel at least every three years and when staff expertise changes in order to provide reasonable estimates of need for external counsel. Recommendation 27: Provide estimates for budgeting based on a three-year experience rate and provide sufficient contingency for unanticipated litigation. This will allow the Town to approximate anticipated expenditures and ensure there is adequate funding for cases where the Town must seek external counsel. Management Partners, Inc. 35 Town of Oro Valley Management Study of the Legal Department The Town Attorney has selectively chosen to handle a limited number of cases in-house rather than hire external counsel. Cases handled by in- house staff over a three year period are shown in Table 9 below. TABLE 9: LITIGATION CASES HANDLED BY IN-HOUSE ATTORNEYS Number of Cases Type of Case 2005 0 N/A 2006 1 Condemnation 2007 2 PSPRS (Retirement) Building Safety Expanding the use of in-house counsel for litigation can be a useful tool in reducing litigation costs. If there is excess capacity for an attorney with litigation experience to assume additional work, it is an efficient use of attorney resources. Often even the cost of an additional attorney will be offset by the savings incurred by doing more routine personnel and civil litigation in-house. This is, however, not always the case. Nature of work, expertise required, and frequency of need are all part of the equation. For example, one area of representation where in-house counsel might be used is in the continuation of representation in Risk Pool cases when the Risk Pool ceases counsel payments. Whether the continuation of representation by a particular counsel is cost-effective can only be assessed on a case-by-case basis; however, in general, the additional time and, therefore, cost of bringing in new counsel unfamiliar with the case at later stages of litigation can duplicate effort, cause delay and not guarantee improved results. The potential liability may warrant the use of expert litigators rather than in-house counsel whose practice is of a more general and corporate nature. In-house civil attorneys serving part-time as litigators on an infrequent basis have less opportunity to be current on rules and local practice. Court deadlines can be inflexible and can be a competing priority for civil attorney work. While it is possible that an in- house attorney could have or develop the expertise to handle such cases, the training and skills that may be required for the relatively low number of cases in which the Town is involved, and the possibility for large awards suggest that outside counsel may still be the most appropriate choice for these few cases even if the rates paid to Risk Pool counsel may be higher than the average rate paid to counsel when contracted directly by the Town Attorney. Another area where the Town Attorney has the ability to exercise discretion in obtaining outside counsel is in condemnation cases. Oro Valley concluded four condemnation cases during the three-year period reviewed. Condemnation cases are an area of law that is often the subject of outside counsel contracts because of the specialized nature of the presentations and evidence required to prove valuation of property being taken. The current Town Attorney, however, has substantial experience in land use and condemnations and his expertise may provide an opportunity to bring these cases in-house. 36 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department Very little monitoring or assessing of the Risk Pool contract by the Legal and Finance Departments were evident in this review. It is important to recognize the value of monitoring the Risk Pool and cases handled by external counsel. The potential for major expenditures for legal counsel fees as well as judgments and settlements requires that this be a priority of the departments. Given the expenditures and potential risk involved, the Town can support and justify a new risk management position. It would also be appropriate to assign an attorney in the Civil Division to work closely with the risk manager and to continually monitor, observe and evaluate the performance, conduct of the case, expenditures and results for both the Risk Pool and external counsel. Effective in-house monitoring would include receipt and review of all pleadings and correspondence, review of all invoices for reasonableness of hours expended on various tasks and application of appropriate rates, consultation with external counsel on a regular basis for status update and policy direction. Monitoring should be one of the primary responsibilities of the Civil Attorney, and should also include production of reports to Council and affected departments on a regular basis. Because of the potential costs to the Town in legal fees as well as substantial judgments, this should be a high priority in Legal Department assignments. Recommendation 28: Assign a Civil Attorney to be responsible for monitoring and evaluating both the performance of the Risk Pool and external counsel. In conclusion, the cases for which external counsel was hired by the Town Attorney in the three-year period we reviewed were appropriate, and in some cases necessary, for adequate and ethical representation of the Town. Where it was not mandated by circumstances, but within the Town Attorney's discretion to use external counsel, decisions were made with restraint and in areas where the use of seasoned litigators added value. The manual for "Selection and Retention of External Counsel" adopted by the Legal Department is a thorough and comprehensive plan for restrained and appropriate use of external counsel. The department has assigned attorneys to the role of monitoring and coordination of external counsel; however, a greater emphasis needs to be placed on continual monitoring of costs and performance in order to assure that the use of outside counsel is meeting Council goals and priorities. Management Partners sought information from peer benchmark cities on their use of outside counsel. Unfortunately, the information was not provided and we therefore cannot say with any certitude whether external counsel costs are in line with benchmark cities. Based on our experience in other jurisdictions, Oro Valley's use of external counsel appears conservative and appropriate. Management Partners, Inc. 37 Town of Oro Valley Management Study of the Legal Department Prosecution Division Issues The Prosecution Division is responsible for prosecuting misdemeanors in the Town. These crimes include violation of the Arizona Revised statutes and the Town Code. Under these laws, the Prosecution Division prosecutes zoning, building safety, alcohol, nuisance, assault, criminal damage and traffic offenses. The prosecutors will work with the Police and other Town departments to ensure safety for Town citizens. Current Staffing and Workload As noted earlier, the Prosecution Division is comprised of 4.0 FTEs, including 2 attorneys, 1 paralegal, and 1 office assistant as shown in Figure 7 below. FIGURE 7: PROSECUTION DIVISION CURRENT ORGANIZATION STRUCTURE Town Prosecutor (1 FTE) Assistant Town Senior Paralegal Prosecutor (1 FTE) (1 FTE) Office Assistant (1 FTE) As shown in Figure 8 below, at 0.10 FTEs per 1,000 population, Prosecution Division staffing for Oro Valley is slightly above both the peer mean of 0.09 FTEs. Oro Valley's staffing is the median of the peer distribution. These statistics illustrate that Oro Valley Prosecution Division staffing is comparable to its peers. • 38 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department FIGURE 8: PROSECUTION STAFFING PER 1,000 POPULATION1 0.12 - ...., ,.- s „�y s r gil 0.10 n <sw,t:s �<,�>` :',,-..,,;.,f.:1: :-tx5, w 0.08 °� •.;' i fi 4,"i WA la ._ ,..i � ,< ,.i 0.06 .;�.ti . ;'. 1 , g: 0.04 -------- 4x<106,,V.. - 0.02 .. .:.:. •:r...i:'� - ... '• ww..w„v.. 'J{..i: i5'.• is � I c • jSxi. '..410`],..',7-.,,,•,:w .wr.J' r :,, wvsw ¢; Y ,. - Goodyear Apache Junction Prescott Oro Valley Flagstaff Casa Grande Surprise 0.06 0.06 0.07 0.10 0.11 0.12 0.12 While overall Legal Department staffing precisely matches the peer average as shown earlier in this report, Prosecution Division staffing is slightly lower than the peer average. Table 10 below illustrates how Oro Valley's Prosecution Division compares to the peer average. TABLE 10: PROSECUTION DIVISION STAFF FTEs COMPARED TO PEER AVERAGE Staff Type Oro Valley Peer Average % of Average Attorneys 2.0 1.8 111% Total Admin Staff 2.0 2.3 87% TOTAL: 4.0 4.1 98% Any decrease in existing staffing, particularly professional attorney staff, would likely result in a decrease in service levels and responsiveness of the division to legal requests from the Council and department customers. To better understand prosecutorial staffing levels, Management Partners benchmarked workload using cases filed per 1,000 population as shown in Figure 9. 1 Sahuarita is not represented because its prosecution services are contracted out. Sierra Vista is not represented because the Town contracts with the County for criminal prosecution services. Sierra Vista prosecutes violations of Town ordinances (nuisance and curfew) in-house. Management Partners, Inc. 39 • Town of Oro Valley Management Study of the Legal Department FIGURE 9: PROSECUTION CASES FILED PER 1,000 POPULATION 350 : . 300 � � ,.jy¢�S :�;•.` o.'j . itt v 250 4 It: :1; > Y r 200 _.... y3pCC 150 ---- < k� . 10 t x> v,y14 tti . 50 11:4 ?ft.! ti • t ,. ¢v �J tySl, "h. Tl- v f F ti y. .:«• �pie:;i$'4`k�h • Apache Casa Junction Surprise Goodyear Avondale Sahuarita Oro Valley Grande Marana Flagstaff Prescott 170 195 241 246 247 252 307 310 316 339 As can be seen, in FY06-07, Oro Valley had 252 new prosecution cases opened per 1,000 population. This is slightly below a peer mean of 262, just above the peer median of 250, and well within one standard deviation of the mean. In general, it appears that prosecutorial workload in Oro Valley is fairly average in comparison to its peers and is not extremely high or low for the region. While Figure 9 above reflects a comparison of workload against peers in one fiscal year, Figure 10 below shows the number of Oro Valley's prosecution cases filed in raw numbers over a period of time from FY00- 01 through FY06-07. FIGURE 10: PROSECUTION CASE FILED OVER TIME(IN RAW NUMBERS) 14,000 _.................................................................... • • • • • 12,000 10,000 8,000 - • • • • • • 6,000 --- - 4,000 - -r - FY 00/01 FY 01/02 FY 02/03 FY 03/04 FY 04/05 FY 05/06 FY 06/07 As shown, the Town saw a slight increase in prosecution workload from FY02-03 to FY03-04, but workload has now stabilized to a lower level. 40 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department As another, more specific measure of prosecution workload, Figure 11 below shows the number of DUI cases filed per 1,000 population. FIGURE 11: DUI CASES FILED PER 1,000 POPULATION 25.00 ----- 20.00 20.00 `;> �ypv,YJc *.4 15.00 `� :01 10.00 ' #; o;c y� ,;f3i• i 5.00 ;a� r.aweew.+•• b . yUI ...............:. / _,...�....,....:.3:Y:::._c .wr.. ror..• .•.n „r. .. .. Apache Casa Sahuarita Surprise Junction Avondale Goodyear Marana Oro Valley Prescott Grande Flagstaff 4.07 5.04 5.89 6.03 8.70 11.20 11.30 11.73 14.73 22.04 With 11.3 DUls filed per 1,000 population, Oro Valley is above both the mean of 10.1 and median of 10, showing a slightly higher DUI incidence and workload than among its peers. However, the DUI workload remains within one standard deviation of the mean so is not on either end of the spectrum. One useful measure of effectiveness for the Prosecution Division is a review of clearance rates, e.g., cases closed out as a ratio of new cases. A clearance rate of less than 100% means that a work backlog is increasing, with more new cases opened than cases cleared. A clearance rate of more than 100% means that the backlog is decreasing, with more cases cleared than being opened. In recent years, Oro Valley's Prosecution Division had seen a growing backlog of cases. As Figure 12 below shows, the division now has a 107% clearance rate, meaning that it is closing more cases than those new cases coming in; thus, the unit is appropriately working to reduce the backlog. Management Partners, Inc. 41 Town of Oro Valley Management Study of the Legal Department FIGURE 12: PROSECUTION CLEARANCE RATES .4;..1 oir 11 20 0`:4 —ter -R-t 18 0P. -Y.. 14 0%-tei r •°,;~ yn t ion:.— --,,' . — vi, ----- —. .0 . te-- -,,:: r ,;., , : -:,, 8 0%------- ' !",-*:-' ' ::: ,A0,4 i, A CIE til. ...,* tt r .. PI '- 1-- ----jr, rim' 4.4:5!:41. 41 , I :: :fi ,:::s.,,;..: ' rg 1111i 2a _ — t 0 , t Casa Pres �tt F Ia toff Goodyear ,`oPache Serra Oro Vall r Avondale Sahuarita Sur pre h,tararna Grande Jun don VGta 05% 00 , 102% 104% 105% 10T% 108% 115% 117% 121% 188% Finally, it is instructive to benchmark the number of cases terminated per • prosecution employee. A terminated case is a case that is closed within a given period of time, and includes cases that are transferred, plea bargained, fines paid, probation granted, as well as cases that are won or lost. Figure 13 below shows terminated cases per prosecution employee FTE. Data for several peers is not included as they have unique situations. For example, Avondale contracts for its civil and prosecution services, Sahuarita contracts for prosecution services and Marana has a combined court and legal department. FIGURE 13: TERMINATED CASES PER FTE(PROSECUTION) 5p00 --- � 4 50 0 --------- ` 4,000 ::. Cti 3 0 0 -'fir .W...A.A, .;.!,:t.: - -::: ' 0VO.4if,:- — :. 0r 3p00 _J� � �` r rek '42:111.1.1.1.11.= tef.;✓ ; 2 p 0 0pi4 r-. . -,,,1 t 1x00 = - --- 0111 � till. ,. ile RAsfi1 G 4,1 __ Y • ti s. Igloo — Anil . .. ...o.o: ... `::j✓�1,�,.1�0.. g ..:.;:. } L0 0err _ om � J, f!,.. ii, 2.':::',..: . rr__ f,v:•r.( % yYalt.Y>%\ "''',,,,,,,:-,,,PW.-- :Xa-xiiCR . / .., J• N. Yti+�vfy:% / 4 . ':vi> ., - SurpriseApache Casa Grande Ap ach e Ju n�:tion Flagstaff Oro Valley Goodyear Prescott 1.cl5 2.534 2.7g-3 2.8Q7 3.118 3.£65 4.157 As can be seen, with 3.118 terminated cases per prosecution employee, Oro Valley is just under the peer mean of 3,134 cases and well above the median of 2,897. Oro Valley remains within one standard deviation of the mean. In summary, the Prosecution Division terminates slightly more cases than is average among peers. 42 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department In summary, across the board, Oro Valley's Prosecution Unit appears to have average staffing levels and an average workload which has risen slightly in recent years but is fairly stable at current levels. Oro Valley has a slightly higher rate of DUI cases than among peers and the Prosecution Division is successfully working to reduce its backlog. Prosecution Internal Support Functions Management Partners interviewed Prosecution Division support staff to become knowledgeable of the division's internal legal support functions. Following the interviews, staff provided our team with detailed accounts of their daily activities in the following areas: • Court calendaring • Development of Failure to Appear Warrants • Disclosure request and receipt procedures • Diversion file creation process • File closure process • File creation processes • File destruction process • In-court support • Mail receipt procedures • Phone call procedures • Victim notifications With respect to the division's file creation process, staff provided Management Partners with an outline of the discrete processes for "opening files" on DUI, criminal traffic, domestic violence, assaults, shoplifting, registration of contractors, and leaving the scene of an accident citations. Prosecution Division case files are opened for the aforementioned citations, as well as any other citation that results in charges being filed against a defendant. In FY06-07, a total of 10,454 citations were issued. Approximately 10% (or 1,019) of all citations resulted in files been created. Figure 14 below depicts the type of cases for which files were created in calendar years 2003-2007. Management Partners, Inc. 43 Town of Oro Valley Management Study of the Legal Department FIGURE 14: CREATED FILES BY TYPE, 2003-2007 ■2007 0 2006 0 2005 Civil Traffic 0 2004 1 132003 • :`.R A•�i_;c;:iG'c 1:,%%'•;..;5}-•};:L.£- •c :dY!!i'.;c..:7.7::::is Class One Misdemeanor 1 I Y K Criminal Traffic I Domestic Violence Drugs I I I • • • • DUI A •. • • Other • 0 50 100 150 200 250 300 350 The bulk of prosecution workload in Oro Valley is comprised of DUI, criminal traffic, and civil traffic cases. In recent years, criminal traffic cases have decreased significantly while DUls have increased. After dropping sharply in 2005, DUI citations have increased 152% since 2005. Such analysis is valuable, both in helping the Town manage attorney staffing and workload, but also in identifying specific prevention programs and activities that might be worthy of funding. Management Partners examined the division's internal support functions, with special attention to the discrete activities for opening files performed by the Senior Paralegal and Legal Assistant. We conclude that, in general, the division has created a thoughtful support process that leverages the benefits and talents of prosecutors. In general, staff activities align with the division's organizational hierarchy and skill set of staff members. The division has two senior staff members, the Town Prosecutor and the Senior Paralegal, that have worked for the Legal Department for more than 19 years. Together, they have created a structure for legal support and general office protocols that are consistent with industry standards for a small in-house prosecution operation. Similar to the Civil Division, the Prosecution Division has a manual that includes policies and procedures, a strategic plan, plea agreement policy, staff promotion plan, and staff appraisal and employee feedback forms. 44 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department In .addition to the aforementioned documents, preservation of the organization knowledge of division staff is essential. For example, the description of daily activities related to opening files that was created for Management Partners upon request should be officially recorded and included in the division operational manual. The creation of process maps as a desk reference and process reengineering tool is also recommended. As an example to illustrate the benefit of process mapping the division's established but unrecorded processes, we have created a process map of the activities the Senior Paralegal and Legal Assistants conduct related to opened files for DUI cases (see Attachment D). During interviews, staff noted, and Management Partners agrees, that there are areas of improvement related to work distribution between the Senior Paralegal and the Legal Assistant. The Senior Paralegal is working above capacity. Once all division processes are recorded, support staff and division managers should examine work assignments and transfer appropriate responsibilities from the Senior Paralegal to the Legal Assistant. This adjustment will ease the workload of the Senior Paralegal and provide additional resources to handle recent increases in the division's workload. Recommendation 29: Record Prosecution Division internal support processes and create process maps to retain organizational knowledge. Recommendation 30: Identify Prosecution Division duties that can be transferred from the Senior Paralegal to the Legal Assistant after Prosecution Division internal support processes have been recorded. Police Department Support In most cities with prosecution attorney staff, attorneys are made available to provide legal advice to the police department. The Prosecution Division similarly provides the Oro Valley Police Department (O.V.P.D.) with personnel for, and training on, legal issues. Currently, Oro Valley's prosecution staff provides informal "on call" assistance onsite at the Police Department for such purposes. Under the current system, police personnel will call Prosecution Division attorneys to request onsite assistance for major incidents (officer involved shootings, significant drug arrests, murders, etc.) According to Legal Department staff, typically the assistance is needed only once or twice a year and there have been no significant issues on record that show a lack of available legal assistance when needed. While overall workload has remained fairly stable in terms of raw numbers, the number of traffic cases opened has declined in recent years while DUI cases opened are up substantially. Management Partners, Inc. 45 Town of Oro Valley Management Study of the Legal Department In the past year, the Prosecution Division has held the following training sessions for, or with, O.V.P.D. personnel: 1. 2006-07 Supreme Court decision updates (all officers) 2. How to write good police reports (all officers) 3. Local Issues/Citations that may be useful (all officers) 4. Oro Valley Police Citizens Academy- trains the local civilian population on how the police and prosecutors offices work and what we do (class for civilians) 5. Diversity training (Prosecution Division and some Police Management) 6. What to do for people with diplomatic credentials; consular notification and verification (all officers) 7. Update on Phlebotomy issues (for O.V.P.D., Marana P.D., Tucson P.D. personnel) Despite the provision of on call legal advice and support in training police personnel, staff in the Police Department noted that they would like to have a dedicated full- or part-time legal adviser for the department. Management Partners does not see sufficient evidence to warrant an allocation of additional dedicated legal staffing at the Police Department. The Prosecution Division should continue to provide on call support to the Police Department and assist with training sessions as has been past practice, but should re-evaluate the situation based upon workload every two years. Recommendation 31: Develop standing legal opinions for common/unresolved legal issues related to police services. In order to assist police personnel and new prosecutorial staff in the future, standing opinions should be formed and documented. 46 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department CONCLUSION Oro Valley's Legal Department has undergone tremendous change during a period of turnover in the Town Attorney position. Despite this turnover, many positive management controls have been implemented and appear to have worked well. Clarification as to reporting relationships and role of the Town Attorney position has occurred with the hiring of the current Town Attorney. Legal Department staffing appears consistent with that of its peers and requires no adjustment at this time. Use of external counsel has been prudent and appropriate. The Civil Division has a framework of performance measurement in place that should be strengthened and implemented department-wide. The department can improve management controls and analysis through greater tracking of time spent on specific case types and ensuring that verbal requests for service are included in workload logs. Civil Attorney capacity can be increased by reducing commission and board reliance upon unnecessary regular legal staffing at meetings. The Legal Department can play a critical role in providing oversight of the Town's Risk Pool contract, legal defense, and costs. The recommendations contained in this report are designed to improve the department's operations, now and into the future. The employees who participated in the process revealed an earnest desire to improve systems and a wealth of creative ideas to do so. Thoughtful and reasoned implementation of the recommendations in this report will have a positive impact on Legal Department operations, its employees and its customers. The Town should take care to educate customers on any changes taking place so that they are aware and included in the transition process. Management Partners wishes to thank the Town Manager, Town Prosecutor, all Legal Department employees, and all Town staff for their participation in this review process. Management Partners, Inc. 47 Town of Oro Valley Management Study of the Legal Department ATTACHMENT A - SUMMARY OF RECOMMENDATIONS Recommendation 1: Clarify the roles for the Town Attorney, Town Manager and Town Council. Recommendation 2: Provide annual training for the Council regarding the respective roles of the Town Attorney and Town Council in the risk management programs. Recommendation 3: Review quarterly litigation reports to the Town Council in executive session. Recommendation 4: Implement an annual customer service survey and track progress over time. Recommendation 5: Release Request for Proposals (RFP) for a legal case management program. Recommendation 6: Implement a simple time tracking system for all attorneys and paralegals. Recommendation 7: Implement a Town-wide electronic document retention system that links Legal Department document retention efforts with those of the Town Clerk's office. Recommendation 8: Designate one person from each department to be responsible for records retention. Recommendation 9: Establish procedures to provide clear guidance to employees responsible for records retention. Recommendation 10: Establish procedures to make records retention mandatory. Recommendation 11: Revise existing performance measures and implement a performance measurement system that includes measures for workload, effectiveness and efficiency. Recommendation 12: Automate the collection of performance measurement data with the installation of a legal office management system (software). Recommendation 13: Consolidate all Legal Department staff into a single location. Recommendation 14: Provide an office for every attorney to ensure privacy. Recommendation 15: Reduce the number of meetings attended by Civil Division attorneys. Recommendation 16: Assign intake review and calendaring responsibility to the Legal Secretary. Recommendation 17: Ensure that attorneys communicate substantive informal requests to support staff for workload tracking purposes. Recommendation 18: Obtain regular reports from the Risk Pool. 48 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department Recommendation 19: Revise the budget document to identify the amounts paid by the Town to the Risk Pool in payment of premium costs, deductibles and shared costs. Recommendation 20: Periodically conduct a detailed cost benefit analysis of Risk Pool experience. Recommendation 21: Explore alternatives to use of Risk Pool counsel. Recommendation 22: Create a Risk Manager position to monitor the Risk Pool contracts. Recommendation 23: Establish a targeted risk loss prevention program to attempt to minimize numbers of liability and Workers Compensation claims. Recommendation 24: Adopt a risk management protocol for communication between the Town and the Risk Pool when incidents occur which may give rise to claims against the Town. Recommendation 25: Request qualifications from legal counsel in areas where external counsel is anticipated or used repetitively and establish a list of providers with negotiated rates. Recommendation 26: Assess the usage of external counsel at least every three years and when staff expertise changes in order to provide reasonable estimates of need for external counsel. Recommendation 27: Provide estimates for budgeting based on a three-year experience rate and provide sufficient contingency for unanticipated litigation. Recommendation 28: Assign a Civil Attorney to be responsible for monitoring and evaluating both the performance of the Risk Pool and external counsel. Recommendation 29: Record Prosecution Division internal support processes and create process maps to retain organizational knowledge. Recommendation 30: Identify Prosecution Division duties that can be transferred from the Senior Paralegal to the Legal Assistant after Prosecution Division internal support processes have been recorded. Recommendation 31: Develop standing legal opinions for common/unresolved legal issues related to police services. Management Partners, Inc 49 Town of Oro Valley Management Study of the Legal Department ATTACHMENT B - REQUEST FOR LEGAL SERVICE INTAKE PROCESS MAP Management Partners, Inc. 51 Town of Oro Valley Management Study of the Legal Department Customer Assistance Process Map page for Contracts and Formal(Written)Opinions Attorney's Office Town of Oro Valley Customer Department START (Customer Makes)— est Sitarist.eqrx st on intake Sheol? • • • • YES • fJ0 Enter Request in Mail 1, (Phone,Ermil, (Word file) or In-Person Request) (Legal Secretary) • • • • caffilfffitiffitialltstei [Paralegai nl CRuslomer Asked lo)..................................................................... Requester e. YES Hes Tops BeenEnter Tracking TraGng Addressed h Pnor Opnon? NO—, Email (�ro1e9a1 in (Exch ale) paralegal IJ • (Customer Accepts YES. Previous Opinion • • vk,o should ample* the Request? O'PtY Atorneyl • Request Rotted to Staff (Paralegal Ill • • • • • • • I • • • • Public Safety, Norr Standard • • kr porton Legal Ordinances, Standard Resolutions Contracts Contracts • OueJstioms • • • • • • Draft t„tnion/ lhq � / Drag t7cWon/ thrall Oainion/ ggitgiu nil QtDUtY B &mom pawl Attorney, tC^il )Blistmed 1D I CP�r al n li• • Perform her Padarm far • • • • • • • • Rainy Review (Paralegal iQ IPanalegai in • • • • • • • • • • • • • Militant lkkt.Boal • • Eta Edtt� {Parala9M it 1a1e9i1• • • I) • • • • • • • r CtlY4!!D tiffsam eadorm lwil Fr rvr m Fina( aelaaki MORI • • • Epau Ml Snakier teem Mod= ! Beim [SII Deputy [awl L eputy Fan.ge ul paralegal In • • (ParaksW tl] Attorney) r ttarxtyl • • • • • • • (Panaiegsl t Draft cover Muno • or (Paralegal Prakgal it •• •• • • Woman! • • • Rini= hderm Fled • psi Deputy Bram • Attorney Of (Town• Atorneyt • Town Auorneyp • • Final E Process 52 Management Partners, Inc. Town of Oro Valley Management Study of the Legal Department ATTACHMENT C - REQUEST FOR LEGAL SERVICE FINAL DISSEMINATION PROCESS MAP Customer Assistance Final Dissemination Process Map for Contracts and Formal(Written)Opinions Page 2 Attorney's Office Town of Oro Valley Customer Department Customer Communicates Concerns to Response Author • Additional Questions? 4. • Response Author Performs • Further Research and • Revises Response • START Disseminate Response to Customer [Primarily Completed By Legal Secretary and Occasionally By Paralegal Il] • the Respon • Received by the Customer Sufficient? • • File Response to Customer Sufficient Legal Secretary] I' END Customer accepts • response END Record as complete in Request Tracking Log (Excel file) / [Paralegal l] / Management Partners, Inc. 53 Town of Oro Valley Management Study of the Legal Department ATTACHMENT D - DUI CITATION "OPENED FILE" PROCESS MAP , .. -...... Prosecution DUI Citation"Opened File'Process Map Page 1 Attorney's Office Town of Oro Valley Outside Legal Legal Department Dept START ( Frosec.ut,on M3,Led .Report Fworarded to Legal Deo,Ey Pol:oe De•partcent 4,-• ,,Vnat Type o, Report7 .• POLICE PEPORT .... Enter-in fExtel fEe) [Off ce Assistant .• .• .• REPORT 'cir Prepare File 4 -Check for prior conv,cticns Enter in Prosecution f.lal Log -Research schedJled Dour.dates (Excel fie) -Dratt"Lets!.Pr.,to-Arraignment'for Victims [Dtf:oe Ass•stantj -Order 91 1 CD.,warrant C3S.t.,digits: ohctos.and audio tapes.if necessary .• • [Ott:ce Assistant 4 Packets Arraignment and Pre-Trial Activities Blood blended' ..• ..i.... . (while in court) • .• -fiillnute Ent-y data input into Prosecutor .• • Dialog • . .• -Research infonr.atien on prier convictior:s .• • . • • • -VerC•y that,hotim.s have beer:notrfed YES .•• . • -Obtain ad-d,tional lnforrnation upon re-quest .• 4• .• .• • .• • .inner Paralegal .• .• • • Order Blood Packets NO I .• Pa -gal Pest Arraignment Activitie-s r_Serici, .• • • -Search'Prosecutor Diaiog-for onor charges tied against Defendant in Oro . • .• Val.iey C-oo .• 4 • -Calendar future hearings,caleu,:ate'Rule .••• • , 3"tme•kmitations • Proce . -Review Por;oe recort for completeness ss Lab Resufts • -In•put case information 41"Prosecutor .•*. .• .• Dialog" - . -Review iab rep., : i -Prepare"File Face Sheet'and''Ac:tileity -Reocre lab rest.ts(blood aloe:nal .k,---1 cohtent,in P,oseeutor C:alog and on -Order specialized officer traitiing logs.. . 7.-,ile Face Sheet ;1Senicir Paralegal] f.Senicr Paralegal 1 Communication and Correspondence 4 -Mai,avalla.be disclosure informatior:to Defense Attorney Forward'..ab resulls to -Send notitcaton letters to victims DefendantiDefenst Attorney -Run:drivers"license a,td certified regisTation,nquiries -Request Digital Videos,friterview Taims. EOM.Assi.stan.1 <.::: Phote-s,etc.through the Pekoe Deparrnent -Request ary rn,ssing:tocurrentaion • -Write synopsis of the case for"Prosecutor .• : Dialog" 4 [Off oe Assistant Forward Lab:R.eport to 1 Appropriate Prosecutor Finat'Opened File"Activities (tenor Faralega) -Check to on sure we have all pertnent witness information -Draft ietc r to appwriate Corers Te,aesjing certiicaori of phors,if defer,ant too DW mr,,tions witiin ice past five years -Prepare and tie 1:4otice c4Alle.gation with the Cour -Assist Prosecutors,to corn***any Defense Attorney any melons• TEerior Paral.egal Management Partners, Inc. 55 9‘ a- C,, CO a) —Cs ti) = H " v i COK -----1 3 si) e n CI) 0 N CDCD = a (1) ...... . m o = = 0 -- —h I a_ r" x ry CD _Za) 73 (/) r-Pk 0 . - CD ,pz r—ii W 1?-1 ..i 1\) 0 -2 r., 0 ..„, F.+. 0. LD 3 CD C < co 3 73 0- cl) a) 51) ‘< . ci. 0 CD a) 3 -111"< CD =- Cr) = CD . . .% • • • . 73 -oKcom5- O a a) a) -o ...I- < o -o = 'I(3 CD CDCDO ? 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X 0 (1) = O r"'D- 07 73-, 0CD Z Eh -a .•J 0 ° 0 0 (D oi r--1- a 2, 0.) o CD =+, � � z CD_ a) CDrn S O� CQ(I) y' i --1 sa) 3" -a 3 o —1: C7' 3 a) 2 3 z __, ,..,,-5 (,) 6- . 0 —PI � C7 (1) CD Cnp � n M `< (/) -a Q- 0 (1) ‘" u) Ci) � E �' � ii3 ° r-1— r—i- 0 (/) 0 = ( r+ o O 0 `< c in ...._ (I) co "5 (13 (f) r-f- � = Sy r-I- CD =- � -03 CD ‘C 0 V --) (7). p (1) 0 CD ---s rif7 0 (1) CD x m- (/) -, 0 _4,, › o 5- (t) D u) c z ,-.+- al › 0) . 0,) o 3 3 ci5 ,— = 5 , r-iell� (Q� NCp ....IN (1) � (f) ma, � =~• � � O Vii f,74- - -.pz > (,) %., _ 73 2) 0...i u) = ", 3. ° . = * '-'4' 2 '_--5. , __„ (T, -0 CD CI i.":3 Q CO 0 -1 CD CD ah CD n O (i) u) ---1 � c.) -C-D5 CD = = CD ra a (--13. a_ 3 a) • 1,, FrT r : (1) CD CD { z (I)cp, z - ■ z y CD IP""+` O 40 r"'+' 0 c y '°z •.0 CDv V? TOWN OF ORO VALLEY 2 Page 1 of 2 COUNCIL COMMUNICATION MEETING DATE: 03/26/08 TO: HONORABLE MAYOR AND COUNCIL FROM: Sandra L. Abbey, Human Resources Director SUBJECT: Benefits Insurance Alternative Funding Sources SUMMARY: In order to remain competitive in recruitment, retention and employment practices, it is necessary to maintain a comprehensive benefits package. However, with health insurance claims driving high increases in costs, maintaining such benefits packages while managing costs requires a long-term benefits strategy. Human resources plans to develop a three year benefits strategic plan that will dovetail with the Town's Strategic Focus areas of Financial Sustainability, Quality of Life, and Leadership/Communication. The first step in developing this benefits strategy is to consider the goals associated with these focus areas as they relate to the Town's benefits programs, and to review the benefits funding alternatives that can best help us reach these goals. Three goals have been identified to help the Town maintain a comprehensive benefits package, while managing costs. Because 80% of costs are driven by claims, managing claims is the most likely way to manage costs. Therefore, the goals identified are those most likely to improve claims: 1) Promote the wellness of employees (Quality of Life, Financial Sustainability) 2) Increase education and communication regarding the complex field of healthcare and insurance (Leadership and Communication, Quality of Life, Financial Sustainability) 3) Develop smarter consumer attitudes and behaviors among our employees (Financial Sustainability, Quality of Life) There are a few types of benefits funding alternatives that are options for the Town: fully insured (current option); fully insured member of an association (such as the AZ League of cities and towns H-Pact)alliance; full insured with a retention option; self-funded with protective stop-loss insurance; or fully self-funded. The pros and cons of these options, with a view toward the potential for the Town to maintain comprehensive benefits, and manage costs through focusing on the above goals, leads to the recommendation that follows. The purpose of this study session is to review the rationale behind developing these goals, the pros and cons of the benefits funding alternatives, and to request the support of the Mayor and Council in our endeavor to develop a long-term benefits strategy to help us maintain a competitive benefits package while effectively managing costs. Our benefits consultants from Lovitt & Touché are available to present the pros and cons of the various funding alternatives and to answer any questions the Mayor and Council may have. TOWN OF ORO VALLEY Page 2 of 2 COUNCIL COMMUNICATION MEETING DATE: 03/26/08 RECOMMENDATION: It is recommended that the human resources staff develop a long-term benefits strategic plan that, if appropriate to meet out goals, moves toward self-funding of at least some benefits programs in order to better manage healthcare claims costs through improved employee wellness, increased education and communication regarding healthcare and insurance, and the development of smarter consumer choices by employees. I S:ndra Abbey, Human Re % rces 64ALf:A OrrviimA. David Andrews, Town Manager f 0 \l'ill 0 M ......./""),..., • , rifk • . Ni •Milt IIIIIII S *°.;"-.1 ' 0 I • III le 111111111111 9° 41..1 \ T1 .1 CD . MEM III cr ....• MN■ Falk- 0 116‹ ■ ■ .0 ,...... X 4, 0 ,„,,,,lcn • • A fr # X Z"'" freII ... „, I . oa •NI) f Q. , lioNv ••SIR- .! .' v*ab. , ZMI 's." - — l' . '. lialt (C) el. ;, ,, >, ,. 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SUTT -0 SD %.< W. 0:4 ja co clA g 2 5. 0 oc oz ,,. -co 13 CC2 ft2 = '� — ...... m s. ,-•+. < 11 A) = X. < rC•r O *' O CCD ams 0 CD 0 O Q, BO � � � � � ftp C, � -,, C� 0Q N � �• CQ n N + CO O LS' 0 mi Cn 0 0 Sy CD N Cn 'C F. - CO -.cr, -. = ^. -. X o co CD = 'a CD C1J 0 _ = �D r* r•r Cn C7 0, tD CDi1 Cn 0 Cn O to 0 z; 0.. :-r C � - - \ O O- 0- a. a. co -a TOWN OF ORO VALLEY Page 1 of 2 COUNCIL COMMUNICATION STUDY SESSION DATE: MARCH 26, 2008 TO: HONORABLE MAYOR AND COUNCIL FROM: AINSLEY REEDER, PARKS AND RECREATION DIRECTOR SUBJECT: CONSUMPTION AND/OR SALE OF ALCOHLIC BEVERAGES ON TOWN OWNED PROPERTY SUMMARY: Currently, the consumption and sale of alcoholic beverages on Town owned property is prohibited by Town Code Chapter 16 as follows: 16-1-4 Intoxicants and Disturbing the Peace in Park A. No person shall consume spirituous liquor in any Town Park Facility. B. "Spirituous liquor"includes alcohol, brandy, whiskey, rum, tequila, mescal, gin, wine, port, ale, beer, and malt liquor, malt beverage, absinthe or compound or mixture of any of them, or of any of them with any vegetable or other substance, alcohol bitters, bitters containing alcohol, and any liquid mixture or preparation, whether patented or otherwise, which produces intoxication, fruits preserved in ardent spirits, and beverages containing more than one-half of one percent of alcohol by volume. During the past year, the Parks and Recreation Advisory Board (PRAB) began to discuss this code and gather information regarding how other jurisdictions handle the issue in their parks. The Board began the discussion for two reasons. First, the Parks Staff noticed a significant spike in the number of alcohol cans and bottles that were in the trash receptacles at the parks. Secondly, the Greater Oro Valley Arts Council (GOVAC) had expressed interest in the sale of alcohol at festivals and events. On February 22, 2008, the PRAB Chair Dennis Ottley sent a letter to the Mayor and Town Council on behalf of the Board regarding their findings. In this letter, the policies for the other jurisdictions and organizations were included for Council's consideration. (See attachment.) A number of Town Council members have provided feedback, including the identification of two potential directions for this issue. Those options are described below: Beer (and/or Wine) Permits: First, it has been suggested that permits be available for purchase from the Parks and Recreation Department for small parties renting ramadas at the parks. Ramadas are limited to 50 people per ramada, so an individual alcohol permit would be for 50 persons or less. Other jurisdictions charge around $25 for each daily alcohol permit. Patrons would be required to keep the alcohol in the ramada area. The Department frequently receives requests for alcohol permits for family reunions, corporate picnics, and club events. As mentioned above, there has been an increase in the volume of trash found in the park from patrons who have been consuming alcohol in the parks. Many jurisdictions use this permitting system to monitor and control the use of alcohol on Town properties while increasing revenues through permit fees. Beer (and/or Wine) Gardens: A second suggestion has been to allow the organizations such as GOVAC the ability to set up beer and/or wine gardens in the park during events. These "gardens" would allow adults to enter a fenced, secure area, pay a fee and consume beverages within the confines of the fenced area. No alcohol i TOWN OF ORO VALLEY Page 2 of 2 COUNCIL COMMUNICATION STUDY SESSION DATE: MARCH 26, 2008 would be allowed outside of the garden area. Like the ramada permits, the Town would receive a permit fee from the sponsoring organization. The City of Tucson is charging about $100 for each permit. The sponsoring organization would also be responsible for providing proof of insurance and all requisite licensing. ATTACHMENTS: 1) February 27, 2008 Letter from PRAB to the Mayor and Town Council e--) -4—v*-31----V— -- ._____,L.5„La. Ainsley Reeder, Pa s and Recreation Director r e Watson, As 'stant Town Manager David Andrews, Town Manager Mayor Paul Loomis Oro Valley Council Members Subject: Update on Alcohol Consumption in Town Parks PRAB has had this as an item on their agenda for a few months. I would like to provide you with an update on the information we have gathered so far to help you determine if allowing alcohol in our parks and/or public areas is a viable direction to take on the part of the Town. We have brought in Tom Ellis, Director of Parks and Recreation, Marana, AZ, and Fred Gray, Director of Parks and Recreation, City of Tucson, to give us information relative to their policies, as both jurisdictions allow alcohol in their parks for various events. In addition, I have been in contact with Chris Mayer, Events Director for the Tucson Zoological Society, and Kurt Tallis, Marketing Director for the 4th Avenue Merchants Association. Ainsley and I attempted to contact Golden Eagle Distributing and Findley Distributing to gather information from their perspective, however, neither company had a representative return our calls. Town of Marana Tom Ellis informed us that the town allows alcohol in the district parks with the purchase of a beer and wine permit for $25.00. This can be done while reserving a ramada with an occupancy of less than 50. If over 50, the patron will have to purchase a liquor license through the state. Other items of interest: ...The town will not allow alcohol sales during special events when the town is promoting family fun events, i.e., 4th of July celebrations. It's been Mr. Ellis'opinion that patrons don't like the fact that they would be confined to a specific area to be served alcohol during special events. ...Behavioral problems have been minimal. ...The town, for other special events, prefers to have an outside sponsor, such as the Chamber of Commerce, coordinate the event. They, in turn, will contract with a vendor who has met all the requirements in obtaining a liquor license. In this way, the vendor is held responsible for controlling and serving the alcohol as well as tearing down the area after the event. ...Mr. Ellis, when asked about serving liquor at auditoriums or performance venues, suggested contracting a licensed vendor to dispense the alcohol. The licensed vendor has to have the proper licenses and insurance, although the town will probably have some degree of liability in this area. City of Tucson Fred Gray informed us that the town allows alcohol in the district parks with the purchase of a beer permit. Beer permits are distributed to park patrons who are holding special events, picnics or family reunions that have rented a ramada. Fees vary per event such as: $18.00 residents/$23.00 non-residents for a regular event and $90.00 resident/$115.00 non-resident per day for a special event. Other items of interest: ...With the purchase of a permit, consumption of alcohol is limited to the ramada area. ...City golf courses, Hi Corbett Field and Reid Park Zoo are exempt from the fees due to contracting with licensed/insured vendors and security. ...The special events, usually held at Hi Corbett or the Reid Park Zoo, utilize licensed/insured vendors and certified pourers are contracted out to serve at the event. If the event includes a beer garden, the area will be structured with fencing or tenting and security must be provided at the entrances of the Garden to insure that patrons with alcoholic beverages are confined to the area permitted. ...Special events are negotiated on a case-by-case basis in which Risk Management will indicate the insurance requirements before signing the final approval. City of Tucson continued ...The City of Tucson does not sponsor a 4th of July event, deferring to the Tucson Convention Center, who contracts with their own sponsors and vendors. ...The City of Tucson realizes $75,000 in revenue from the issuance of temporary beer permits annually. Tucson Zoological Society Chris Mayer reported that they allow alcohol at special zoo events, but a licensed contractor, Service Systems Associates (SSA), handles all dispensing of alcohol. They can only sell alcohol in the confines of the zoo, and only after hours. (Almost as if they were a private facility at that point.) I communicated with SSA, and got some further information. They hold the exclusive right to serve alcohol in Reid Park Zoo, and can also provide food. With the zoo, one can arrange for a different food vendor, but if a drop of alcohol is served, SSA does it. ...They have several different kinds of scenarios, depending on the customer's needs. Some are: -beer only -wine only -beer and wine -full service bar Depending on the customer, they can set it up in any number of ways: -cash bar -sponsor pays for every drink -sponsor pays for "x" amount of drinks, then it reverts to a cash bar for the consumer -sponsor determines a finite drink limit. ...SSA works under the umbrella of the City of Tucson's liquor license. SSA, which is headquartered in Denver, doesn't have a liquor license of its own. ...A customer cannot furnish the liquor for SSA to dispense, as this is against AZ statutes. 4th Avenue Merchants Association I called the Merchants Association to see what kind of interface they have with the major distributors here in Tucson, and was put in touch with Kurt Tallis, their Marketing Coordinator. Kurt relayed several points of interest of what they do to put on the 4th Ave Street Fair twice a year. ...They apply for a beer permit through the City of Tucson. Because of the size of the event and the fact they dispense at 6 locations, their permit cost is $462.00. ...The Association then orders the beer through O'Malley's Bar, which has the proper liquor license. O'Malley's receives the order, and is the distribution point for the 3 day venue. ...The Association arranges for the cordoned off beer garden locations. ...The Association utilizes non-profit neighborhood association members in the proximity of 4th Avenue to dispense the beer. ...The Association arranges for the appropriate levels of insurance and any other licenses that are necessary. ...The Association arranges for proper security at the beer venues. A security guard is at each entrance to insure the patron is of proper drinking age, and that no patron leaves the confines of the beer venue with alcohol in hand. ...The Association also pays for the additional City of Tucson Police needed to monitor the event. ...The Association has a variety of sponsors, such as Golden Eagle, a Budweiser distributor, who provides revenue as a sponsor and probably provides banners, etc for the beer venues. ...Once all the alcohol expenses have been paid, the 4th Avenue Merchant's Association gives 50% of the net proceeds to the neighborhood associations. This is a snapshot of the various types of occasions where liquor is served either at city properties'or in public areas. Some assumptions can be made concerning the Town of Oro Valley if we were to move forward, and they are: 1. An ordinance would need to be drafted and passed by mayor and council for the consumption of alcohol in our parks and/or public areas. 2. The town may need to procure-a liquor license in order to issue permits for the consumption of alcohol in our public parks and/or public areas. 3. The Town would need legal advice on what type of liability they might have and what level of insurance would be necessary. 4. Fees, rules, procedures and appropriate paperwork would need to be established. 5. It would be necessary to establish close cooperation and seek input from the TOV Police Department and other local governmental departments. As you can see there is still be much more to be done in order to have a town ordinance in place for the consumption of alcohol. PRAB is more than willing to continue to pursue information at the direction of mayor and council. We would gladly make ourselves available if mayor and council wanted to schedule a study session in order to have a constructive dialog on the subject and see what additional information you might need in order to move forward. Thank you, dea Dennis Ottley, Chai Oro Valley Parks an a Re. eation Advisory Board