The City Council is asked to accept the City of Union City Organizational Management Audit prepared by Management Partners and to refer the report to the Fiscal Stability Committee for review and recommendation.

The Fiscal Stability Committed directed staff to solicit a third party to conduct an organization management audit of Union City and to perform an evaluation of Alameda County Fire Department contracted fire services.

Staff solicited proposals from:

1. Management Partners to conduct an Organization Management Audit, and
2. Center for Public Safety Management, Provider of Public Safety Technical Services for the International City/County Management Association, to evaluate the delivery of fire protection services provided under contract by Alameda County Fire.

Staff briefed the City Council that the two studies were commissioned at its October 9, 2018 meeting.   

Management Partners interviewed each City Council member, each Department Head, management staff, conducted focus groups of City employees, provided all staff the opportunity to respond to a survey, and compared Union City with similar sized cities to prepare the organizational management audit.

The Organizational Management Audit identified 89 recommendations in 12 categories for change and improvement of City operations.

1.  Fiscal Stability Plan. The City’s significant long-term structural General Fund gap will need to be addressed through a comprehensive fiscal stability plan.

2. Staffing. City staffing levels are lower than comparable agencies.

3. Strategic Planning. Executive staff and Council members noted the need to develop a strategic plan to guide the City’s efforts to ensure decision making addresses operational, service and policy changes consistent with City goals. Management Partners is preparing a Strategic Plan with City the City Council and senior management staff.

4. Streamlining Recruitment. Filling vacant positions is taking longer than reasonably expected and is impacting operating departments’ service delivery.

5.  Professional Development and Competitive Compensation. The City is losing knowledgeable staff to other communities and is not providing sufficient professional development opportunities.

6. Succession Planning. The organization lacks sufficient succession planning to proactively address anticipated turnover, and institutional knowledge is lost as people retire.

7. Provision of Non-typical Municipal Services. The City is providing some services that are typically provided by counties or other agencies.

8. Alternative Maintenance Service Delivery. The use of City employees for street sweeping, street tree and fleet maintenance services may not be cost competitive with alternative service delivery options.

9. Recreation Program Cost Recovery. The low level of cost recovery for recreation programs and services is placing a financial burden on the City’s General Fund, with no policies in place that would change this equation.

10. Reorganizing for Greater Efficiency. Some reassignments are necessary to consolidate functions within one department or area of the organization.

11. Process Improvements. Improving processes in areas including human resources, community and recreation services, economic and community development, finance and risk management will streamline operations and improve service delivery.

12. Technology Tools. The City’s focus on a strategic approach to technology should be enhanced and expanded.

The top five Management Partners recommendations are:

Fiscal Sustainability

• Expenditure controls
• Service delivery changes
• Revenue enhancements
• Service level reductions
• Cost recovery study and policies to increase revenues
• Community Development Services
• Recreation programs
• Various reductions or changes in services and costs

Economic Development Initiatives

• Streamline planning permit processes
• Create new/expanded business improvement districts
• Prioritize economic development activities based on fiscal sustainability needs

Sustaining the Employee Workforce

• Conduct Citywide compensation survey for competitiveness
• Create comprehensive professional development program

Alternative Service Delivery Opportunities

• Reduce General Fund costs for youth and family services through partnerships with non-profits and other agencies
• Reduce or eliminate General Fund costs for Mark Green Sports Center by contracting or repurposing use
• Contract California Certified Unified Program Agencies (CUPA) program to save General Fund dollars
• Conduct RFP for street sweeping services to determine cost effectiveness
• Conduct RFP for fleet services maintenance to determine cost effectiveness

Technology Improvements

• Land management system
• Encroachment permit tracking system
• Computerized maintenance management system (CMMS)
• Finance/Enterprise resource planning (ERP) system
• Employment applicant tracking system

Senior staff and all City employees were provided the opportunity to review the Organizational Management Audit for fact checking and to provide comment to Management Partners.

The Strategic Planning process, currently underway by the City Council and senior staff are evaluating elements of the Management Partners recommendations including revenue enhancements, employee retention, technology, and evaluating service fees.  The next Strategic Planning meeting is set for July 11, 9:00 am at the Ruggieri Senior Center. The Strategic Planning process is the best vehicle for identifying City Council priorities and programs to achieve City goals.

Some of the Management Partners recommendations will require Meet and Confer obligations with employee bargaining groups and Amendments to Memorandums of Understanding.

The City Council evaluated some recommendations on the cost of delivering service and through the budget process.

Given the Strategic Planning work currently underway by the City Council, staff recommends that the City Council accept the Management Partners Organization Management Audit, and refer the Organization Management Audit to the Fiscal Stability Committee for review. 

The Center for Public Safety Management will present its study and recommendations on Alameda County Fire Department services to the City Council at a July 16, 2019 study session.

Attached to this staff report are the:

City of Union City California, Organizational Management Audit, June 2019, prepared by Management Partners

Referring the Organization Management Audit to the Fiscal Stability Committee will not impact the budget.  Implementation of Management Partners recommendations could result in cost reductions and revenue enhancements for the General Fund.

Staff recommends the City Council accept the Management Partners Organization Management Audit refer the Audit to the Fiscal Stability Committee for review.  The Fiscal Stability Committee will recommend to the City Council the items in the Audit that should be implemented.