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HomeMy WebLinkAboutMinutes - November 16, 2004 SSCITY OF LODI INFORMAL INFORMATIONAL MEETING "SHIRTSLEEVE" SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, NOVEMBER 16, 2004 An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, November 16, 2004, commencing at 7:05 a.m. A. ROLL CALL Present: Council Members — Beckman, Hitchcock (arrived at 7:07 a.m.), Howard, and Mayor Hansen Absent: Council Members — Land Also Present: Interim City Manager Keeter, City Attorney Schwabauer, and Deputy City Clerk Taylor B. CITY COUNCIL CALENDAR UPDATE Deputy City Clerk Taylor reviewed the weekly calendar (filed). C. TOPIC(S) C-1 "Electric Utility Department's proposed reorganization study" With the aid of overheads (filed), Alan Vallow, Electric Utility Director, provided Council with information related to reorganizing the Electric Utility Department. He reported that in February 2004 Electric Utility staff recognized that a large number of retirements over the next two years will initiate a turnover in employment as promotions, new hires, and training takes place. Mr. Vallow stated that with the retirement of several senior personnel, Electric Utility will show a loss of job experience equaling 145 years in field services and 167 years in engineering and operations. It would be appropriate to review job descriptions and classifications of these positions to determine if they best meet the needs of the department prior to promoting and recruiting personnel and return to Council with a proposal based on the results. In recent years, retirements have created vacancies and many of the assignments have been picked up by internal staff members. In addition, many of the more complex duties have been assigned to professional consultants sharing their expertise with current staff, and through the support of the Northern California Power Agency (NCPA). Mr. Vallow did not recommend at this time that $150,000 be spent for a consultant to analyze utility efficiency and to design an organizational model structure as was previously proposed. As a result of meetings with Jim Krueger, Finance Director, Mr. Vallow reported that crossover in the performance of financial reporting and other duties in Finance and Electric Utility have further initiated interest in an internal review of organization structure. It is possible that combining functions and eliminating duplication of effort may save money for Electric Utility and the General Fund. Mr. Vallow additionally shared that staff expects the technical services area to grow at a rate twice that of other areas within Electric Utility and the department is currently implementing a three-year plan to develop skill sets to prepare for telecommunications and fiber optic technology. In answer to Mayor Hansen, Mr. Vallow explained that positions will be filled from within the department whenever possible. Reflecting current skill sets, most individuals qualified for these specialized positions are working as consultants or for agencies such as NCPA. In these circumstances, the intent is to disseminate duties of retiring personnel among existing staff and then reclassify vacated positions to better meet the needs of the current organization before the recruitment process is initiated. Continued November 16, 2004 In response to Council Member Howard, Interim City Manager Keeter shared that, while the City currently has 25 vacant positions in the general fund due to a hiring freeze, Electric Utility is an enterprise, which has the ability to fill vacancies. She also reported that the current and impending vacancies provide Electric Utility an opportunity to restructure positions and tasks, but it will take time to write job classifications and reclassifications in addition to the recruitment process. In answer to Council Member Hitchcock, Mr. Vallow stated that the Finance Department has the role of financial reporting, meeting the special needs of Electric Utility, including rates analysis and routine bond issue reports. Duplication of effort is being explored and identified, and a transfer of utility funds to the general fund for services will be adjusted to appropriately reflect reimbursement for the performance of these duties. Additionally, a shift in workload may occur as duplication is eliminated and duties are reassigned to a more appropriate department. D. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS None. E. ADJOURNMENT No action was taken by the City Council. The meeting was adjourned at 7:50 a.m. ATTEST: Jacqueline L. Taylor Deputy City Clerk W November 15 - November 21 November 2004 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 242526 27 28 29 30 December 2004 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 222324 25 26 27 28 29 3031 Monday. November 15 Thursday. November 18 Special Closed Session Meeting - 8:OOam Hutchins Street SquareLj 8:OOam 8:30am SJ Partnership Board meeting (March Ln. - Stockton, CA) 4:30pm Millswood Middle School - Dedication Ceremony (233 N. Mills Avenue, Lodi) 5:30pm 7:OOpm Chamber of Commerce - Casablanca Beer, Wine & Piano Lounge 1st Anniversary Celebration (20 W. Elm St.) 7:30pm Swing Fever - Lodi Community Concert (Hutchins Street Square, Charlene Power Lange Theatre) Tuesday. November 16 Friday. November 19 7:OOam Shirtsleeve Session (Carnegie Forum) 2:OOpm LAFCO City Selection Committee Wednesday. November 17 Saturday. November 20 S:OOpm City Council Meeting (Closed Session) (Carnegie Forum) 7:OOpm City Council Meeting (Carnegie Forum) Sunday. November 21 Kari Chadwick 1 11/12/2004 5:03 PM ORGANIZATIONAL CHART ELECTRIC UTILITY SUPERINTENDENT Carl Llrxh&m TECHNICAL SERVICES Vacant -Tech. Ser. Menem . _Jess Kerekes - Elec. Tech,., (Tnao. Anip d) Allen Aadand - Elec. Tech. Vacant - Elec. Technician tl - Bscaician Robert Aadand - Electw3an SERVICE TROUBLESHOOTING DIVISION Jerry Michael - Sr. Efec, Trouble Shooter Brian - Elec. Trouble Shooter A—rkvi-d..-Cie.. T—... cl.......-. Orgeniratioml Strncwm Reviewed & Approved ey: November 15, 2VA CONSTRUCTION/ MAINTENANCE SUPERVISOR Fisher CONSTRUCTION/MAINTENANCE Rich Willett - Elec. Foreman Earl Haley - Elec. Foreman Daniel Perauson - Elec. Foreman Michael Henry• EWc. Foremen Kenneth Enzi - Elec. Unman James Fendlsy - Elec. Lineman Vacant - Elec. Lineman Vacant - Elec. Lineman Mike Bo - Elec. Lkmn*n Tim L31Mett - Equip. S aiist ELECTRIC UTILITY DIRECTOR Alan N.Va1aw DIRECTOR ELECTRIC SERVICES Mel Or" ADMINISTRATIVE SECRETARY Linda Tremble SUPPORT SERVICES Melinda Wilson - Administrative Clerk Karan E - AdrMNs" We Clark DIRECTOR BUSINESS PLANNING & MARKETING Vacant BUSINESS PLANNING, RATES & RESOURCES Vacant - Mgr. Rates & Resawm* Vacant - Mgr, Cwtomer service d Prowalre Sondra Hutt - Sr. Elea. Uta. Rate Analyst* Stacy Olson - Rate Anahrst Rob Lochner - Mgr. Custorrrer Service & ame ICe Brown - Program Coordnator APPARATUS MECHANIC METERING BM Dohaa Biu Sehmer - Elec. Meter Tech. Vacant - Metering ElecMdan CONTRACT Chris Daniel - Equip. Specialist Ekon Lamborn - Elec. Lineman Dave Shutt - Elec. Linemen * ONLY 2 POSITIONS TO BE FILLED AT ANY TIME DIRECTOR ENGINEERING & OPERATIONS Hans Hansen SENIOR ADMINISTRATIVE CLERK Kath Fawced ENGINEERING Demetrio Bucaneg - Sr. Power Engineer AI Smatsky - Sr. Elec. Estimator Dave Comer - Elec. Estimator John VardarJack - Elec, Estimator Ed trick - Elec. Estimator --...Gerald Klrg - Elec. Estimator John Sk" - Elec. Estimator Scwlw,) Gary Mai - Elec. Estimator (coaa.a) Retool T - Elec- Dradft Tech. Carl WoN - Elec. Dratfin Tech. cam UTILITY OPERATIONS Kevin PAftw - l 1T Pat - Ula. Ser. . Reif. r Rob Anderson - UAe. Ser. owator II Mark Verbitsk - Ute. Ser. Operator 11 Rob Brown - uta. Ser. Operator 11 Park Johnson - Uta, Ser. Operator II (Tey coowwo WDATA1CAMM1S0EXH15rrM ,hn-111505.dwr Plow: Nov 15,2M. Functional Breakdown © 2004 Interliance, LLC Proprietary and Confidential �S, INTERLbWCEgc ELECTRIC UTILITY STAFFING EXPERIENCE • 24 MONTH FORECAST ADMINISTRATION Authorized Positions 5 Contract Positions 0 Change in Staff (0) Experience Loss (0 Years) FIELD SERVICES Authorized Positions (23) Contract Positions 3 ^T Change in Staff (4) Experience Loss (145 Years) BUSINESS AND RESOURCES Authorized Positions (6) Contract Positions (1) _ Change in Staff 0 Experience Loss (0 Years) ENGINEERING AND OPERATIONS Authorized Positions (17) Contract Positions (3) Change in Staff (7) Experience Loss 167 Years AI�lITRC14MCELLC Lrtloa m a VW&plbusiness cAportanim, July 5, 2004 Alan N. Vallow Electric Utility Director City of Lodi Dear Alan: l 51 Kalm n brire. Sidle K Cusru .$Iesa. Culiftmoia 92626 www.inlerlianve cum Teh (711) S40-8389 Fax: {711) 540-6113 The following is our proposal to support the Utility for the City of Lodi This proposal supports the efforts of City of Lodi Electric Utility to analyze the operational efficiency of the utility organization and develop a strategy for maintaining the technical and organizational knowledge that is at risk due to pending retirements. The project will involve the following efforts. * Finalize the design of the organizational functional model and define the key drivers of success for the organization. Develop an overall measurement model and define the key measure for the organization. Pilot the measures within the organization. • Develop recommendations on the organizational structure and relationships both internal and external (ie. NCPA) and how these relationship are managed Scope of Work 1) Otganizational Function Model This effort will focus on completing the functional model for the organization and clearly defining "what it is" the organization does. This information will provide the basis for defining the key success drivers for the organization and also provide data as the critical function that may be impacted by upcoming retirements. 2) Development of Measure Model This phase will focus on the development of the detailed measure model including the following a) Identify and define the key objectives of the organization. Interliance utilize existing documentation to clarify, define and develop a clear picture of organizational objectives for the utility. This step will be used as a foundation to create the key measurements of the organization as well as ensure that key measures are aligned to successfully achieve each business objective. A key measurement is a clearly defined measure that is used to effectively "measure, manage and/or control' the successful accomplishment of an organizational objective. Normally, a business objective will have more than one key measure that, when fully implemented and managed will assist the organization to effectively control the outcome of each business objective. Proprietary and Cmftn0al 1 of 6 An organization will normally have a series of business objectives such as "Provide a Safe Workplace, Organizational Effectiveness, Financial Strength, System Reliability, Ensure or Maximize Customer Satisfaction, Workforce Capability," etc. The following Chart depicts the system structure of deployment of business objectives through development of measures, programs and initiatives. De.&erabler. The final deliverable for this step will be a document that clearly describes, and defines each key organizational objective. An additional deliverable will be a matrix that links each objective to the key metrics. b) Define the key measures of activities/ functions that drive the organization toward successfully achieving the organizational objectives. Based on the functional breakdown of the organization, each function will be analyzed and aligned with the business objectives. At that point, the key measures will be developed for each specific objective to ensure that all aspects of successfully accomplishing a business objective are measured. The following is an example of an Objective vs. Measurement Matrix that is used in development and analysis of this step. 2of6 Deliverables. The final deliverable for this step will be a document that recommends how to deploy the key measures and a series of deployment charts complete with definitions, preliminary targets, and data sources. c) Prioritize the measures The deployment of the measure into the organization will be prioritized based on the following criteria. 1. The importance to the organization 2. Availability of data that will allow reporting of the measure 3. Overall effort to deploy Deliverables: The final deliverable for this step will be a document that sets forth the above information, as well as a series of recommendations for implementation. d) Collect initial data to model measurement system Based on the prioritization of the measures, data will be collected to allow the measurement model to be built with actual data. Where data is not available this will be identified and a plan will be developed that will allow collection of the data. Deliverable... All information will be compiled in a series of appropriate documents to allow implementation of the next steps. e) Set and define targets Interhance willwork with utility personnel to develop the specific targets that will drive performance of the measures. Target methodologies will be individually created for each measure. For example, some targets will be set based on historical trends, others based on competitive information, etc. 30f6 skakms AbMa ' Nness ObJsetiws w. Business e s w 2 We Ix R 3a a 31 ! 3 v e A c, g $ e t S s:! e ce F a us. w w a U a w w w a z ¢ v Soft Wbecpla(* - - - -- Proftble F F F H E31*wmeMslly Sons!" F H Dependable H F F Cryania°ansl Compefenw F F H Emple"ra(Choke H F F F F- - - - Oklenl W *niaeAssetV%kie F F business Grown F Lmotislhw a Cn�1ve F Sbang CommuniyRaloWnship F Deliverables. The final deliverable for this step will be a document that recommends how to deploy the key measures and a series of deployment charts complete with definitions, preliminary targets, and data sources. c) Prioritize the measures The deployment of the measure into the organization will be prioritized based on the following criteria. 1. The importance to the organization 2. Availability of data that will allow reporting of the measure 3. Overall effort to deploy Deliverables: The final deliverable for this step will be a document that sets forth the above information, as well as a series of recommendations for implementation. d) Collect initial data to model measurement system Based on the prioritization of the measures, data will be collected to allow the measurement model to be built with actual data. Where data is not available this will be identified and a plan will be developed that will allow collection of the data. Deliverable... All information will be compiled in a series of appropriate documents to allow implementation of the next steps. e) Set and define targets Interhance willwork with utility personnel to develop the specific targets that will drive performance of the measures. Target methodologies will be individually created for each measure. For example, some targets will be set based on historical trends, others based on competitive information, etc. 30f6 This process will also transfer the skills necessary for the organization to maintain and adjust the targets as required to drive performance improvements. Delfverabks All information will be set forth in writing to allow implementation of the next steps. f) Develop measure performance charts Interliance will develop charts to allow reporting of the Utility's performance on each of the key measures identified pursuant to paragraph 2(a) . These charts will be developed in Microsoft excel and the data transferred to the utility. Additionally, Interliance will identify data collection requirements and data sources This effort will focus on clearly identifying specific data sources required to build the performance charts, frequency of reporting the data and how the data is to be entered into the excel program. Interhance will work with the utility to automate the data collection and generation of the charts where feasible. Deliverables The deliverable will be a series of pilot charts created in an advanced excel structure to allow data population and management. g) Train personnel in the measure management process Interliance will train key utility personnel in how to utilize the measurement system to better manage the performance of the organization. This training will include one-on-one coaching as required. 3) Organizational Analysis This effort will focus on how the organization is structured to achieve the stated functions of the organization and to achieve its desired objectives. It will also focus how organizational relationships are managed both internally and externally, focusing on the key roles and responsibilities. Specific areas to be address include: • Knowledge capture of key personnel in the organization • Organizational restructuring • Succession planning • Development of policies and procedures • Defining key process, roles and responsibilities, and business improvement effort. 4) !!I!q Coats and Bffi°g Schedule This project will be accomplished a time and material basis with an estimated costs $150,000 plus applicable business expenses, which will be billed at actual costs. Estimate of expenses are 10%-15% of the overall project costs. Client may cancel the project at any time if it appears the project will run over the estimated cost. In such event, client shall be obligated to pay no more than the costs incurred and fees frilled up until the cancellation. The following are Interliance's hourly rates for each of the team resources for the project: 4OF6 Billing will submitted bi-weekly and payment is due within 30 days of the receipt of the invoice. 5) Other Contract Specifics Independent Contwor Status — At all times during the performance of this contract, Interliance shall be an independent contractor and will no be considered an employee of the City of Lodi for any purpose. Confiden ality — Interliance agrees to hold, and agrees to require any employees working on this project to hold, in strict confidence, and not to use for any purpose outside this contract, all proprietary or secret information, printed material, processes, procedures, of the City of Lodi learned as a result of the performance of this contract unless and until such information becomes part of the public domain. Interlliance's Commitment In conclusion, Interhance is committed to providing the highest --quality support, materials, and programs that will be an asset to the City of Lodi and will reflect the quality and integrity of its operation. We look forward to supporting the City of Lodi in meeting its operational objectives and will take an uncompromising approach to high standards throughout. Interliance, LLC By: Brad Kamph Date: July 5, 2004 Title: Executive Vice President Approval to Proceed: The following signature signifies agreement to the scope of services, fee schedule and terms and authorizes Interliance to proceed with the project proposal as outlined. 5of6 Positio�r Houdy Rates 1. Project Manager $225 2. Senior Consultants $175 to $200 3. Consultant $125 to $150 4. Project Coordinator $95 5. Administrative support $45 Billing will submitted bi-weekly and payment is due within 30 days of the receipt of the invoice. 5) Other Contract Specifics Independent Contwor Status — At all times during the performance of this contract, Interliance shall be an independent contractor and will no be considered an employee of the City of Lodi for any purpose. Confiden ality — Interliance agrees to hold, and agrees to require any employees working on this project to hold, in strict confidence, and not to use for any purpose outside this contract, all proprietary or secret information, printed material, processes, procedures, of the City of Lodi learned as a result of the performance of this contract unless and until such information becomes part of the public domain. Interlliance's Commitment In conclusion, Interhance is committed to providing the highest --quality support, materials, and programs that will be an asset to the City of Lodi and will reflect the quality and integrity of its operation. We look forward to supporting the City of Lodi in meeting its operational objectives and will take an uncompromising approach to high standards throughout. Interliance, LLC By: Brad Kamph Date: July 5, 2004 Title: Executive Vice President Approval to Proceed: The following signature signifies agreement to the scope of services, fee schedule and terms and authorizes Interliance to proceed with the project proposal as outlined. 5of6 CITY OF LODI H. Dixon Flynn, City Manager Date APPROVED AS TO FORM: D. Slephen Schwabauer City Attorney Interliance LLC Brad Kamph, Executive Vice President Date 6 of 6 C WrERLMAI ur y G O N f u L T 1 N s Interliance Overview Intediance Overview Interliance brings a unique set of skills and a broad base of expertise in supporting the Electric Utility industry to achieve its operational effectiveness and performance goals. Since 1985 Interliance has been helping Utility and Energy companies to optimize business performance and workforce performance. We bring a unique set of skills and expertise in integrating the multiple initiatives of asset management, operational integrity, regulatory compliance, cost reduction, efficiency improvement, workforce strategies, management systems, organization and reorganization strategies, and in transitioning cultures from traditional business models into service organizations in a competitive environment. We are known for our strategic and tactical capability of managing comprehensive and complex projects and our practical approach to implementation. We work in a scalable and flexible model so that we can support the internal team with the tools, methodologies, analysis, strategic planning and support needed for each project small or large. We also focus on transferring our skills, methodology and tools to the team so that they can be self-sufficient in their own system management and continuous improvement long after our engagement. We have worked extensively in a broad base of energy and utility industries including wholesale electric utility planning, operations and new generation project development, joint action agencies and large municipalities, as well as investor owned utilities and other process industries including mining, pipelines, refining and others. We bring a base of knowledge and experience of best practices to each engagement we undertake. A few representative clients are: • Cinergy • PG&E • Southern California Edison • Tennessee Valley Authority (IVA) • Northern California Power Agency • Centerpoint Energy • City of Lodi • East Bay Municipal Utility District • Entergy • ChevronTexaco Preparod by Intediance, LLC 1 11/15/2004 RoptMlary and Confidential (T �• r IA:C C 0 N G u L T I N A • ExxonMobil • BP • U.S. Borax and Chemical Company • California Energy Commission (CEC) • Cal -OSHA by w4"Imnw, LL.0 2 1111512004 v and COM%wrA el System Structure f?; iR10�liW# :�� : atxtie;ird Mwsutros of s E Succetts e 0 2003 interliance, LLC Proprietary and Confidential How will we know that we achieved it? And how much and at What rate is required to support the objective? Compensation is tied to successful achievement. Measures of PSuccess How will we do it? Details and plans of how it will be accomplished in the short-term '- ( �Jff INTERLANCEfc C o M s u L T I N 6 System Deployment AP INTERLANCEac 02003 Infarliance, LLC Proprietary and Confidential C O N S U L T I N C. Measurement Deployment MEASUREMENT DEPLOYMENT MODEL PMU wommM a POWER OY TG * a T�L PRODu[TION TEAM Su" "TU PRODU nk TEAK PNOwOTNek T"m bwff-T S4/Pd1T T! LD tw STAMN MAM "R AkAOEANNrt rug" MOEMMTM)N RIiOY I SUYILES ONOYP LGO OROLM LE ccom Arm CONWLTAMT PLAM Wdsc E4pA,EN CONwLTAM PLAMiEII ? " - .�.�� -. ✓ Y � + �:h FTS Y ClM Con Wi Wr uWTM sm�m T.., Fux Cok1., W, S i Ys rvw_ WM WOW-- � :rr nw , � L--- I Fhdtl4ai T ... • Tro ' —E---� Mp! R. Anl � Ey Nrll — MSIR wNW HxINm Hi UrYI /urlmW �F(-• pM�Bon 1 \ �wlloon B/UN Eli Nti eep OR'F B�dpE Mn alp Oryx ENaNBVln al00,lk INM AwT - QW10Ma�tlPi f: } 4k�'r 4 € YdWal W,r: 7_ kd Warqun r. ' . 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N¢ CEJ 2003 Interliance, LLC Proprietary and Confidential Measurement Deployment N Q 2003 ]nterhance, LLC Proprietary and Confidential C� IWERLMNCEuc Y C O M B U L T I N G Management Job Profiling Job Descriptions Review & Adjust As Necessary Develop Competency Models Job Specific Supervisory Management Develop Develop Develop Functional Key Business Job Profile Expand Breakdown Metrics =*'OExpand Detail Including & (What We Do) Align Metrics Key Performance Measure Modify &- Punctions 6 m m Adjust Metrics With Jab Profiles mV c M, Q Process Improvement ■�I�III r Based On Performance Of Metrics, Job Profiles Change As Processes Change 0 2003 Interliance, LLC Prvpnetary and Confidential C)1ATERU.4WEqc XC o N 6 U L T I N 6 Business Optimization Develop Identify Most Strategic Functional Important Measurement Breakdown Processes System =Op- (What We Do) (Prioritize) f OF Implement Improvements mad 0 Evaluate and Select Best Ideas n Hnv onr ooe 0 2003 Interliance, LLC Proprietary and Confidential Create Initial Process Maps ("As Is" for Key Processes) Identify Improvement ideas (Solutlons): • Brainstorm • Benchmark • Lateral Benchmark KANO Identify Process Owner and Stakeholders Conduct identify Process Root Needs Performance (VOC) Analysis Identity Key Measures and Track Performance x FPP oe n q 1WERL141WEac C o H s u L r i H a