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HomeMy WebLinkAbout2015-04-14-Meeting Mintues Administrative Services Committee Meeting Commission Chamber - 4/14/2015 ATTENDANCE: Present: Hons. M. Williams, Chairman; D. Williams, Vice Chairman; Lockett and Davis, members. Absent: Hon. Hardie Davis, Jr., Mayor. ADMINISTRATIVE SERVICES 1. Motion to approve the resolution supporting the Augusta Housing Authority and Walton Communities, LLC’s application for low income housing tax credits to be named 15th Street Redevelopment – Phase 1. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 4- 0. Commissioner Mary Davis Commissioner Dennis Williams Passes 2. Motion to approve the Housing and Community Development Department's Citizens Advisory Committee By-Laws, as presented. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 4- 0. Commissioner Mary Davis Commissioner Dennis Williams Passes 3. Discuss Economic Development for Augusta. (Requested by Commissioner M. Williams) Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve appointing a sub-committee composed of Mr. M. Williams, Ms. Davis, Mr. Guilfoyle, Mr. Hasan, and Mr. Sias to discuss options for economic development in Augusta utilizing funding that may be currently available. Motion Passes 4-0. Commissioner Dennis Williams Commissioner Mary Davis Passes 4. Discuss the firing of the EEO Director. (Requested by Commissioner M. Williams) Item Action: Disapproved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve discarding this item. Mr. M. Williams and Mr. Lockett vote No. Motion Ties 2-2. Commissioner Mary Davis Commissioner Dennis Williams Ties 5. Task the Administrator with the development and implementation of employee performance reviews for personnel in critical positions. (Requested by Commissioner Lockett) (Referred from March 10 Administrative Services Committee) Item Action: Rescheduled Motions Motion Type Motion Text Made By Seconded By Motion Result Defer Motion to refer this item to the next committee meeting. Mr. Williams votes No. Motion Passes 3-1. Commissioner William Lockett Commissioner Mary Davis Passes 6. Update on the Fleet Management Towing Bid. (Requested by Commissioner M. Williams) Item Action: None Motions Motion Type Motion Text Made By Seconded By Motion Result No action is taken on this item due to the loss of a quorum. 7. Motion to approve the minutes of the Administrative Services Committee held on March 10, 2015. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 4- 0. Commissioner Mary Davis Commissioner Dennis Williams Passes 8. Discuss the Personnel Policies and Procedures Manual. (Requested by Commissioner M. Williams) Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve receiving this item as information and receive the results from the Administrator's review of the manual at the next meeting. Mr. Lockett out. Motion Passes 3-0. Commissioner Dennis Williams Commissioner Mary Davis Passes 9. Review and approve the revised edition of the Personnel Policies and Procedures Manual. Proposed changes to the manual were reviewed by the Human Resources Department and the Law Department respectively. The revisions to the manual were completed in late 2014 and slated to become effective on January 1, 2015. (Requested by Commissioner Lockett) (Referred from March 10 Administrative Services Committee) Item Action: Rescheduled www.augustaga.gov Motions Motion Type Motion Text Made By Seconded By Motion Result Defer Motion to refer this item back to the next committee meeting. Mr. M. Williams votes No. Motion Passes 3-1. Commissioner William Lockett Commissioner Mary Davis Passes 10. Discuss Procurement Department organizational review conducted by Dr. Malik Watkins with the UGA Carl Vinson Institute. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve receiving this item as information. Motion Passes 4-0. Commissioner Dennis Williams Commissioner William Lockett Passes 11. Task the Administrator with developing a succession plan for all critical positions within the ARC Government. Underscore the significance of having the ability to fulfill our mission, without having to recruit outside our government. (Requested by Commissioner Lockett) (Referred from March 10 Administrative Services Committee) Item Action: Rescheduled Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to refer this item back to the next committee meeting. Mr. M. Williams votes No. Motion Passes 3-1. Commissioner William Lockett Commissioner Mary Davis Passes Administrative Services Committee Meeting 4/14/2015 1:20 PM Attendance 4/14/15 Department: Caption: Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: & 15th Street Redevelopment Phase 1 (Age Restricted) Of the Cherry Tree Crossing Redevelopment A Main Street Neighborhood Augusta, Georgia Description of Proposed Project Submitted by WALTON COMMUNITIES, LLC 2181 Newmarket Parkway Marietta, GA 30067 & 15th Street Redevelopment Phase 1 A Main Street Neighborhood Augusta, Georgia Description of Proposed Project Overview 15th Street Redevelopment is a 30-acre mixed-use and master planned community developed and built by Walton Communities, LLC in association with the Augusta Housing Authority. The community will consist of multiple phases of both senior and family apartments. o 15th Street Redevelopment Phase 1 will include +/- 80 units The mission of the developer in the creation of 15th Street Redevelopment is to utilize the support of civic organizations, governmental authorities and residential neighbors in providing neighborhoods that matter in a mixed income and mixed tenure housing environment with first-class amenities in an aesthetically superior combination of land planning, architectural elements and landscaping. & 15th Street Redevelopment Phase 1 A Main Street Neighborhood Augusta, Georgia Description of Proposed Project General Description 15th Street Redevelopment Phase 1 will be developed, built and managed through the joint efforts of Walton Communities and the Augusta Housing Authority. This development will consist of +/- 80 one- and two-bedroom units displaying exceptional interior appointments with the highest quality elevations. The community will be developed and constructed with low-income tax credits allocated by the Georgia Department of Community Affairs. As such, the units serve moderate-income families earning 60% or less of the area median income. These income restrictions allow for maximum household incomes approximately ranging from $23,880 for a family of one to $27,300 for a family of two. In order to reach these potential residents, marketing efforts will reach out to senior centers, churches, work-force employment centers such as the call centers in the area, retail and service industries, local government employees, teachers and seniors. 15th Street Redevelopment Phase 1 will offer a laundry facility, a community room set aside for resident use and a covered porch as well as a pavilion and landscaped courtyard. Programs will also be available for adults; these activites will serve our senior adult residents by sponsoring programs such as the Fifty+ Club. These residents will enjoy cultural activities, field trips, and social functions throughout the year. Many residents will use these functions as their primary opportunity for social interaction. Floorplans at 15th Street Redevelopment Phase 1 will include spacious one and two- bedroom homes with a host of elegant interior features such as crown molding, 9-ft. ceilings, Whirlpool appliances with self-cleaning ovens, separate laundry rooms with pantry shelving and convenient raised vanities in the baths. Each home will be pre- wired for home office technology with high-speed internet and fax capabilities. & 15th Street Redevelopment Phase 1 A Main Street Neighborhood Augusta, Georgia Description of Proposed Project Programs and Services Additionally, the 15th Street Redevelopment Phase 1 will partner with local senior service providers to make available a number of services for seniors, including:  Continuing education  Transportation to facilitate access to social services/doctors/shopping  Information and senior counseling  Recreational activities  Grandparent mentoring programs  Preventive health care programs & health screening Partnering with local churches to provide further supportive services will further enhance the property services. & 15th Street Redevelopment Phase 1 A Main Street Neighborhood Augusta, Georgia Description of Proposed Project Architectural and Landscaping Architectural Design The project will be designed in an architectural style consistent with historic downtown Augusta, utilizing features which are present in neighboring properties. These include the use of brick and hardi exteriors, standing seam metal roof accents, and attractive decks and patios with enlarged columns. Construction materials will include hardi siding in a neutral palette, accented with brick and masonry. Tilt-out insulated aluminum windows will provide an attractive exterior appearance as well as excellent energy efficiency. All ground floor units will be handicap accessible and as such will be fitted with all appropriate handicap features as required by local and federal building codes. Several apartment units will be handicap adaptable and some will have features specifically designed for those with audio &/or visual impairments. Landscaping and Site Design Walton Communities places great emphasis on landscaping to provide lush streetscapes, mature trees and shrubs, colorful seasonal annual and perennial beds and impressive community entrances. 15th Street Redevelopment will continue this tradition by insuring that all planted areas contain landscape materials of high-quality and above-average size. All trees will be a minimum caliper size of 2” in diameter and shrubs shall have a minimum height of 24”. Ground covers shall be a minimum size of 1 gallon and placed a minimum of 18” on center. Areas of central focal point will include the amazingly preserved large caliper oaks on the site, sodded lawns, seasonal planting beds and attractive fencing. High-end entry signage will be comparable to other Walton communities. & 15th Street Redevelopment Phase 2 A Main Street Neighborhood Augusta, Georgia Description of Proposed Project Unit Mix Unit Mix for 15th Street Redevelopment Phase 1 Unit Mix Total Units Unit Size 1-BR/1-BA ±40 750 sq. ft. 2-BR/2-BA ±40 1050 sq. ft. & 15th Street Redevelopment Phase 1 A Main Street Neighborhood Augusta, Georgia Description of Proposed Project DCA Required Amenities Standard Site Amenities 1. Community Room 2. Covered Porch Located in a central area 3. On-site laundry with a minimum of 3 washers and 3 dryers 4. Washer / Dryer Hookups in each unit 5. Game room 6. Covered Pavilion with Picnic / Bar B Que Facilities Unit Amenities 1. HVAC Systems 2. Energy Star Refrigerators 3. Built in Energy Star Dishwasher 4. Stoves 5. Powder-based stovetop fire suppression canisters installed above the range cook top, or electronically controlled solid cover plates over stove top burners & 15th Street Redevelopment Phase 1 A Main Street Neighborhood Augusta, Georgia Description of Proposed Project Additional Amenities Additional Amenities Descriptions  Furnished library  Equipped Computer Center  Fully-equipped kitchens featuring Whirlpool electric range, dishwasher, refrigerator with icemaker, and disposal  Traditional oak cabinetry with generous counter space  Breakfast bar  Double bowl stainless steel kitchen sink with spray  Spacious walk-in closets with double rods for maximum efficiency  Roomy master bath with linen closet and dressing table  Ceiling fans  Six-panel doors and 9’ ceilings  Cable outlets in living room and all bedrooms  Energy-efficient double-pane windows  Computer desk with pre-wiring for home office technology and high-speed internet and fax capabilities 15th Street Development (Phase 1) Page 1 15th STREET DEVELOPMENT A RESOLUTION SUPPORTING AUGUSTA HOUSING AUTHORITY AND WALTON COMMUNITIES, LLC’S APPLICATION FOR LOW INCOME HOUSING TAX CREDITS FOR 15th STREET DEVELOPMENT, PHASE 1, LOCATED AT 1550 15th STREET, AUGUSTA, GA. WHEREAS, the Georgia State Department of Community Affairs serves a vital role in its efforts in assisting with the development of housing in the State of Georgia by:  Improving the living environment for residents of Georgia;  Revitalizing areas and contributing to the improvement of neighborhoods; and  Building sustainable communities; and WHEREAS, the Department of Community Affairs has established certain regulations whereby low-income housing tax credit applications, to be competitive, should receive a Resolution of Support by the governing authority or the pertinent municipality or county; and WHEREAS, the Augusta Housing Authority and Walton Communities, LLC are preparing to develop phase 1 of 15th Street Development consisting of affordable apartment communities at 1694 Hunter Street, Augusta, GA; and WHEREAS, the project will consist of multiple phases; including one phase of +/- 80 units for senior citizens; and WHEREAS, the project is a part of Augusta-Richmond County’s holistic “place based” strategic initiatives for rebuilding this portion of Augusta, including the former Cherry Tree Crossing neighborhood, being a severely stressed neighborhood; and WHEREAS, the project will be required to include areas within the project set aside as greenspace; and WHEREAS, the project is part of Augusta-Richmond County’s Community-Driven Housing Strategy; and WHEREAS, the project is designated as the highest affordable housing priority redevelopment in Augusta-Richmond County in the year 2015; and WHEREAS, the Board and Commissioners understands and supports this projects efforts in the development of phase 1 of 15th Street Development. NOW, THEREFORE BE IT RESOLVED: That the Board and Commissioners of Augusta Richmond County, Georgia, that this Resolution of Support is hereby adopted on behalf of Augusta Housing Authority and Walton Communities, LLC for property located at 1550 15th Street in Augusta Richmond County, effective the date set forth below. 15th Street Development (Phase 1) Page 2 15th Street Development (Phase 1) Resolution of Support April 14, 2015 ATTEST: AUGUSTA, GEORGIA By: __________________________________________ Hardie Davis, Jr. Mayor _________________________________ ___________________________________________ Lena J. Bonner Witness to Mayor’s Signature Clerk of Commission ________________________________ Witness to Clerk’s Signature CERTIFICATION I, Lena J. Bonner, Clerk of Commission, hereby certify that the above is a true and correct copy of a Resolution as adopted by said AUGUSTA-RICHMOND COUNTY COMMISSION in the meeting held on April 14, 2015. S E A L _____________________________________ Lena J. Bonner Clerk of Commission Administrative Services Committee Meeting 4/14/2015 1:20 PM 15th Street Redevelopment Phase 1 - Resolution of Support Requests Department:Housing & Community Development Caption:Motion to approve the resolution supporting the Augusta Housing Authority and Walton Communities, LLC’s application for low income housing tax credits to be named 15th Street Redevelopment – Phase 1. Background:15th Street Redevelopment Phase 1 will be developed, built and managed through the joint efforts of Walton Communities and the Augusta Housing Authority. This development will consist of +/- 80 one- and two-bedroom units displaying exceptional interior appointments with the highest quality elevations. The community will be developed and constructed with low-income tax credits allocated by the Georgia Department of Community Affairs. As such, the units serve moderate-income families earning 60% or less of the area median income. These income restrictions allow for maximum household incomes approximately ranging from $23,880 for a family of one to $27,300 for a family of two. In order to reach these potential residents, marketing efforts will reach out to senior centers, churches, work-force employment centers such as the call centers in the area, retail and service industries, local government employees, teachers and seniors. 15th Street Redevelopment Phase 1 will offer a laundry facility, a community room set aside for resident use and a covered porch as well as a pavilion and landscaped courtyard. Programs will also be available for adults; these activites will serve our senior adult residents by sponsoring programs such as the Fifty+ Club. These residents will enjoy cultural activities, field trips, and social functions throughout the year. Many residents will use these functions as their primary opportunity for social interaction. Floorplans at 15th Street Redevelopment Phase 1 will include spacious one and two-bedroom homes with a host of elegant interior features such as crown molding, 9-ft. ceilings, Whirlpool appliances with self-cleaning ovens, separate laundry rooms with pantry shelving and convenient raised vanities in the baths. Each home will be pre-wired for home office technology with high- speed internet and fax capabilities. Additionally, the 15th Street Redevelopment Phase 1 will partner with local senior service providers to make available a number of services for seniors, including: · Continuing education · Transportation to facilitate access to social services/doctors/shopping · Information and senior counseling · Recreational activities · Grandparent mentoring programs · Preventive health care programs & health screening Partnering with local churches to provide further supportive services will further enhance the property services. Analysis:15th Street Redevelopment is a 30-acre mixed-use and master planned community developed and built by Walton Communities, LLC in association with the Augusta Housing Authority. The community will consist of multiple phases of both senior and family apartments. o 15th Street Redevelopment Phase 1 will include +/- 80 units The mission of the developer in the creation of 15th Street Redevelopment is to utilize the support of civic organizations, governmental authorities and residential neighbors in providing neighborhoods that matter in a mixed income and mixed tenure housing environment with first-class amenities in an aesthetically superior combination of land planning, architectural elements and landscaping. Financial Impact:There is no financial commitment on the part of Augusta- Richmond County. However, it will assist Walton Communities, LLC and the Augusta Housing Authority if the City of Augusta (thru the Commission) chooses to back their proposed project. This will boost their application in hopes of receiving funding from other sources. Alternatives:Not Any. However, not backing the project could result in the possible denial of the applicant’s applications Recommendation:Given the success of Walton Oaks previous phases, we (Housing and Community Development Department) recommend that the City of Augusta (thru the Commission) back this project and approve the attached resolution. Funds are Available in the Following Accounts: Not Any. REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Administrative Services Committee Meeting 4/14/2015 1:20 PM AHCDD's Citizens Advisory Committee -- By-Law Approval Department:Housing and Community Development Department (AHCDD) Caption:Motion to approve the Housing and Community Development Department's Citizens Advisory Committee By-Laws, as presented. Background:The U.S. Department of Housing and Urban Development (HUD) under authority to it by the Housing and Community Development Act of 1974, as amended, requires each jurisdiction (city, county, etc.) to adopt a ‘citizen participation plan' which must provide for and encourage citizens to participate in the development of the consolidated plan, any substantial amendments to the consolidated plan, and the performance report.” These requirements are to especially encourage low-and-moderate income citizen participation where Community Development Block Grants (CDBG) are employed or sought. Accordingly, low-and-moderate income citizens, non-profit organizations, relevant advocacy groups, and interested parties must be involved in the preparation of the Consolidated Plan (ConPlan) through the mechanisms set up in the Citizen Participation Plan (Citizen Plan). The ConPlan approach is a means to meet the requirements of the CDBG Program. The Citizen Plan requires, at a minimum, citizen input during three (3) stages of the ConPlan. a) The Proposed Plan (Con Plan), b) Substantial Amendments to the Proposed Plan (Con Plan), c) Performance Reports. Analysis:Proper protocal suggests that these bylaws be submitted to the Commission (for acceptance/approval) before the advisory committee commences with their first quarterly meeting April). It is during this April meeting that the bylaws will be discussed and reviewed (by the Committee) as the principal guide by which the advisory committee runs its overall affairs. Financial Impact:The Commission approved the reengagement of the Citizen Advisory Committee on February 17, 2015. This approval enables the advisory committee to act as a representative body for the citizens of Augusta, Georgia as they shall be provided the opportunity to review and comment on the Five Year Consolidated Plan, Annual Action Plan, and Citizenry comments where appropriate. However, the review and approval of these bylaws is necessary to set forth the guiding functions of the advisory committee. Alternatives:To use the By-Laws approved by the previous Commission on June 5, 2013. Recommendation:To approve the Housing and Community Development Department's Citizens Advisory Committee By-Laws, as presented. Funds are Available in the Following Accounts: Not Applicable REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Administrative Services Committee Meeting 4/14/2015 1:20 PM Economic Development for Augusta Department:Clerk of Commission Caption:Discuss Economic Development for Augusta. (Requested by Commissioner M. Williams) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 4/14/2015 1:20 PM EEO Director Department:Clerk of Commission Caption:Discuss the firing of the EEO Director. (Requested by Commissioner M. Williams) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 4/14/2015 1:20 PM Employee Performance Reviews Department:Clerk of Commission Caption:Task the Administrator with the development and implementation of employee performance reviews for personnel in critical positions. (Requested by Commissioner Lockett) (Referred from March 10 Administrative Services Committee) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 4/14/2015 1:20 PM Fleet Management Towing Bid Department:Clerk of Commission Caption:Update on the Fleet Management Towing Bid. (Requested by Commissioner M. Williams) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 4/14/2015 1:20 PM Minutes Department:Clerk of Commission Caption:Motion to approve the minutes of the Administrative Services Committee held on March 10, 2015. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 4/14/2015 1:20 PM Personnel Policies and Procedures Manual Department:Clerk of Commission Caption:Discuss the Personnel Policies and Procedures Manual. (Requested by Commissioner M. Williams) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 4/14/2015 1:20 PM Personnel Policies and Procedures Manual Department:Clerk of Commission Caption:Review and approve the revised edition of the Personnel Policies and Procedures Manual. Proposed changes to the manual were reviewed by the Human Resources Department and the Law Department respectively. The revisions to the manual were completed in late 2014 and slated to become effective on January 1, 2015. (Requested by Commissioner Lockett) (Referred from March 10 Administrative Services Committee) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: BASE REPORT .......................................................................................................... PAGE 1 APPENDIX A: COMPARABLE ORGANIZATION CHARTS .............................................PAGE 17 APPENDIX B: COMPARABLE ORGANIZATION CHART (DEKALB) ..............................PAGE 20 APPENDIX C: PRINCIPLES OF PUBLIC ADMINISTRATION ..........................................PAGE 21 APPENDIX D: PROPOSED FUTURE DEPARTMENTAL STRUCTURE ..............................PAGE 22 APPENDIX E: COMPARATIVE PERFORMANCE METRICS ...........................................PAGE 23 APPENDIX F: PROCUREMENT PROCESS FLOW CHARTS ............................................PAGE 24 APPENDIX G: REFERENCES ......................................................................................PAGE 29 BACKGROUND In support of the local government of the City of Augusta, this report provides documented guidance on the current trends, standards and best-practices associated with structuring and operating, procurement services within local government. This research is provided by the Carl Vinson Institute of Government (CVIOG). The research has a combined focus on gathering information on how procurement department services are provided to internal as well as external service recipients as offered by both Augusta as well as comparable jurisdictions. It identifies and assesses other local governments and utilizes them as comparative entities. This benchmarking will then provide foundational information that Augusta-Richmond may utilize to consider the manner in which its own procurement department services are structured and provided. Information analyzed includes organizational structure, departmental processes, lines of reporting and staffing levels. In utilizing the accumulative benefit of our previous research on organizational design and assessment1, our analysis and recommendations are based upon: 1) Reviews of the structure of divisions within the Procurement Department, 2) The flow of departmental operations, 3) Lessons learned and principals gathered from Comparable jurisdictions, and 4) Best Practices and Standards in the arena of local government Procurement Department service provision. Although other jurisdictions are used as comparables, the orientation of this research is designed to be specifically customized to the needs of procurement in Augusta. It is recognized that the significant history of consolidation in Augusta, as well as the valued contributions of the administrators who have structured previous efforts of departmental 2 structuring must be taken into account. Thus, what follows stands as a set of observations and recommendations to help facilitate the continued evolution of the efficiency and effectiveness of Procurement Department services in Augusta, Georgia. METHODOLOGY Carl Vinson Institute of Government faculty utilized several research methods to investigate current and ideal departmental organization and operations. This process enabled information to be gathered that produced an in-depth view of ideal organizational structure and included: Stakeholder interviews with City of Augusta Administrators, Department Management, select service receiving county-wide agencies, and current staff within the Procurement Department, Identification of comparable units of government to be utilized in bench- marking to build upon previous work - identical jurisdictions were selected (Athens-Clarke, Columbus-Muscogee), Standardized examples based upon best practice examples from the International City/County Management Association (ICMA), Reviews of division organizational structures (schematics). This included procurement based functions and their positioning within the broader organization, Site visits and face-to-face interviews with departmental staff, Identification of key “Best Practices and Standards” associated with well- functioning Procurement Department service provision, and 3 Principles associated with Lean Six Sigma Project Orientation as applied to local governance. Based upon the findings, recommendations on optimal department structures and related operations are provided. The intent of this assessment is to consider how departmental structure matches the demands for local government service. Recommendations are based upon best practices, performance standards, academic and professional literature, Lean Six Sigma Problem Solving Methodology as applied to local governments, and the extensive experience of Carl Vinson Institute of Government faculty. Additionally, this report is based upon credible standards as established by organizations such as the ICMA and other key leaders in organizational design and operations. Since each government is unique regarding culture, governing environment, orientation of service and strategic priorities, it is a misapplication of proper standards to recommend a singular approach to organizing planning and development services.1 However, this report identifies several standard best practices and principles that can be utilized by the August-Richmond administration to make decisions regarding organizational schematics and operations. LOCAL GOVERNMENT PROCUREMENT DEPARTMENTS While often times the function of local government procurement may appear to be a simplified process, the increase in services provided, scale and scope of service provision, and size of local government and add significant complexity to the procurement process. Traditionally procurement processes have been a support function. Support functions are still critical processes as the procurement process is responsible for acquiring the goods and services that local governments need to function and to provide additional services within their jurisdiction. Broader trends have historically required the evolution of how procurement services are provided as the utilization of information technology and performance measurement can help strengthen efficiencies, service provision and managerial control. Particularly unique to Augusta are efforts to achieve the goals of efficiency through addressing broader trends but also as a result of the consolidating governmental services. Thus, this 4 organizational review of the Procurement Department is not a critique of past policies and procedures or management. It is an assessment based upon best standards and practices that represent ideal structure and operations. This report should be viewed as institutional support in the continual evolution towards continuous improvement and not a critique of previous structure or practices. While this report focuses on the Procurement Department, it should be considered within the context of all functions that are associated with the purchase of goods and services for the City of Augusta regardless to a specific department. COMPARABLE JURISDICTIONS Our review begins with considering the organizational structure of how procurement services are provided in the comparable units of government: Athens-Clarke and Columbus- Muscogee Consolidated Governments. Additionally, we have included perspectives on department structure based up the extensive knowledge and experience gained from actual service at the local level, as well as exploration of organizational structures for procurement departments at multiple local governments. This assessment is also based upon recommendations on best practices and standards provided by ICMA. In assessing the organizational structure for the comparable jurisdictions, both follow a basic outline as follows. In summary, Procurement processes in both jurisdictions are maintained under Finance. However, in reviewing other larger governments, it is not uncommon to find large procurement operations functioning separately from finance with purchasing/procurement being set up as a department versus as a division within a finance department2, As mentioned, it is common for smaller units of government to subsume procurement under the finance function. However, larger units of government with higher levels of procurement will generally have this function broken out into a separate department. Within the scope of the Procurement Department review, the current organizational configuration of Athens-Clarke, Columbus-Muscogee, and the City of Augusta are 5 provided. (See Appendix A) To illustrate this scenario, the organizational chart for Dekalb County has been provided as well. (see Appendix B). This chart clearly illustrates the separation of procurement from the finance function; thus, it is appropriate for the City of Augusta to maintain its current configuration of separation. ADDITIONAL COMPARISONS As a means of further assessment, the adopted budgets for Athens-Clarke and Columbus- Muscogee for fiscal year 2015 were reviewed. This review included departmental/division expenditures, total procurement summations and total number of employees. Please note that both Athens-Clarke and Columbus-Muscogee organize purchasing/procurement as a division. Augusta-Richmond classifies procurement as a separate department. FY13 FY14 FY15 %Change Athens-Clarke3 370k 385k 389k +3.7 Augusta-Richmond4 675k 749k 826k +10 Columbus-Muscogee5 404k 422k 410k -2.67 Table 1: Departmental Expenditures per/Fiscal Year Athens-Clarke Not provided 6 Augusta-Richmond6 750,000,000 9 Columbus-Muscogee7 164,152,890 7 Table 2: Actual Procurement Summations and Number of Personnel 6 Significant differences in expenditures between the City of Augusta and comparable consolidated governments do exist as Augusta expenditures are generally twice as high as the comparable jurisdictions. However, consideration must also be given to the significantly higher number of internal and external clients served as well as the actual total purchase amounts of goods and services for the respective local government that is taking place. This consideration must also take into account the number of personnel utilized: Columbus-Muscogee has seven (7) staff dedicated specifically for Procurement Activities, Athens-Clarke has six (6) staff members designated solely for Procurement Activities, and Augusta utilizes similar levels of personnel, nine (9), to accomplish much higher volumes of work (this is further discussed in recommendations on personnel levels). STRUCTURAL REVIEW A review of the Augusta Code and departmental operations indicates that this department is responsible for all Augusta related procurement activities as well as the courier services and print shop. The principles of administration indicate that departments be organized based upon the identification of the major functions and processes (including critical); divisions/units and sub-units, are then created based upon this identification and the need to group similar functions. A general inventory of the services provided by this department includes the following: Maintain knowledge of Augusta’s Procurement Code and Regulations, Business Law (contracts and sales), and the operations, processes, relative requirements of internal and external customers, and general business trends (e.g. new markets, new products, improved methods, new sources, etc.), 7 Locate and select sources of supply of required materials or services; Procure equipment, materials, and services as requested; Pursue adjustments on claims for shortages, poor quality, etc., in material received; Train and assist City personnel in the operation of the City’s computerized procurement system; Ensure equal opportunity for all business owners; Sell, trade, or otherwise dispose of surplus supplies belonging to Augusta, Georgia; Prequalify suppliers and products through the study of testing data; Maintain the official Augusta, Georgia bidder's list; Develop and adopt operational procedures; Examine solicitation documents and contracts to ensure compliance with state and federal laws as well as any court ordered injunctions; Resolve protests except as otherwise designated by the City of Augusta Code, Maintain legal records regarding procurement and represent the City in any legal challenges; Discourage collusive bidding and obtain as full and open competition as possible on all purchases and sales; Cooperate with using agencies so as to secure for Augusta, Georgia the maximum efficiency in budgeting and procurement; Establish and maintain programs for specifications development, contract administration, and inspecting, testing and acceptance, in cooperation with the public agencies using the commodities, services and construction products. AUGUSTA SPECIFIC OPERATIONS A review of the inventory of services shows functional compatibility within the overall department. Although the functions of the Print Shop and Mail Courier could be considered functionally separate, there are no violations of the principles of administration to include them in the procurement department. In depth review illustrates that the units/sub-units are produced by the grouping of administratively similar functions 8 (e.g. sealed bids and contracts; and, procurement/acquisition). Utilizing the principles of administration and organization8 (see Appendix C), a review of the organizational structure yields the following: Positional instructions flow from one supervisory role, although circumstances were noted where in certain situations there is occasional interplay with elected officials. When this takes place it violates the principle of unity of command. Organizational form supports its function through the concept of “unity of direction.” A consistent finding is that those individuals involved in the procurement process understand that departmental operations are prioritized based upon the Augusta Code. This implies that strategic goals and a proactive orientation is in place. Increased centralization of procurement supports this orientation. Solid and effective organizations are characterized by clear lines of authority and reporting. The review yielded that the hierarchical chain of command is appropriate. Similar functions are concentrated within departmental units. A primary component of administration and management is the ability to control operational processes - this regards an acceptable ratio of supervisors to sub- ordinates. This ratio is dependent upon the consensus on strategic priorities as well as the nature/complexity of the work performed and organizational stability. It is acceptable to have a higher ratio with repetitive operations; operations that are more complex tend to require lower ratios. A standard has been to utilize no more than five (5) to six (6) direct reports for each manager. The review finds that managerial span of control could be improved by strengthening departmental mid-level management. Span of Control could also be improved by subsuming certain functions underneath a position other than the Department Director (e.g. Print Shop and Mail Courier). 9 Additionally, it appears that the department is utilizing a high degree of overtime in order to fulfill its workload. This could be addressed by filling the two vacant positions directly associated with procurement processes. Consideration should also be given to making a determination on whether or not staffing levels are adequate enough to maintain the current expectation on procurement production. While recommendations will be made regarding the above findings, they do not significantly undermine department operations. However, there are additional observations regarding procurement based functions that must be identified. o The Augusta Code specifies that “the Procurement Director is designated as the principal public procurement official for Augusta, Georgia, and shall be responsible for the procurement of commodities, services, construction, and professional service products…”. Additionally, the code also specifies the Director is responsible for “working to ensure equal opportunity for all business owners”. The Code also establishes programs for Disadvantaged Business Enterprises (DBE) and a Local Small Business Opportunity Program (LSBOP). o The scope of this work was to focus primarily on the Procurement Department. Based upon how the overall procurement program is established in the Augusta Code, it appears that while the Procurement Department follows well established Best Practices and Procedures, the separate establishment and operation of the DBE and LSBOP programs violate the basic administrative principles of Specialization/Division of Labor, Unity of Command, Unity of Direction, and Scalar Chain/Line of Authority. The basic implication is that the current structure applies responsibility to the Procurement Director without providing the structural accountability needed to provide managerial control. It also increases the probability that critical procurement based goals 10 may become politicized and exposed to pressures that violate the stated goals of the Augusta Code. This is also a Risk Management concern for the City of Augusta as a result of the legal challenges that generally arise from the application of code based procurement procedures. Thus, it appears that not all procurement based activities are centralized and the current structure provides operational and structural fragmentation. AUGUSTA SPECIFIC RECOMMENDATIONS Based upon the comparative review of ICMA’s recommendations and the comparison with Athens-Clarke and Columbus-Muscogee, the following observations and recommendations are provided. It is recognized that best practices and standards must be tailored within the context of local government needs. Thus, the following observations and recommendations are provided for the purpose of initiating policy based discussion understanding that any final decisions should be locally based. Based upon best practices and standards associated with the principles of public administration influencing organizational design, and Lean Six Sigma standards as applied to local government operations, observations and recommendations are provided. To ensure the validity of identified issues, consideration was primarily given to those concerns that were identified via multiple sources. While this may have the implication of leaving a major concern unaddressed, valid concerns must be verified from multiple sources so as to identify the issues germane to the entire department. The issues identified through this process are commonly found in organizations that have consolidated and have implemented procurement policies that include objective bidding, submittal, review, and awarding of local government contracts. Thus, while the issues are significant, they are common challenges that arise in organizational development. The issues identified center on organizational consensus on strategic direction, continued automation/technological upgrades, training and certification, and compensation and classification. The following general observations and recommendations are provided: 11 Organizational Consensus on Strategic Priorities. Increasing the utilization of professionalized management in local government service provision has become a standard that has improved the efficiency and effectiveness of local governance8. Professional management implies that a separation exists between elected officials and governmental administration and managers provide the managerial control and performance evaluation of staff to ensure that organizational goals and objectives are achieved. As previously mentioned, there are no clear violations of the principles of public administration in the organization of the department. However, application of the Augusta Code, in regards to procurement, contradicts the principles of administration within the context of a consideration of procurement activities in other departments (e.g. DBE and LSBOP). Additional observations indicate that while the Department is not in significant violation of administrative principles, the Span of Control could be reduced by transforming non-specific procurement activities (e.g. Mail Courier and Print Shop) into positions that do not report directly to the Director. However, it does appear that the department is not positioned effectively for the future in consideration of the volume of work performed and to ensure successful future succession (e.g. appropriate managerial support of the Director position). The Department does utilize performance metrics to assess operational progress and to determine the impact the department has on building efficiencies and savings in the procurement process. However, there also appears to be an absence of consensus within the City of Augusta’s local government on what constitutes efficiency and effectiveness. Including performance metrics in decision making facilitates the ability to effectively forecast future needs while also supporting decision making on how the department should be organized so as to facilitate the ideal future structure of procurement based functions. Thus, it is recommended that the City of Augusta Local Government work with the Administration, Procurement Department, DBE and LSBOP programs to consider the merging of these procurement functions so as to fully maximize the 12 benefits of utilizing professional management to increase overall managerial control over all procurement activities. In consideration of the current structure, it is recommended that the Span of Control of the Procurement Director be reduced by removing the mail distribution and print shop functions as direct reports. It would be appropriate to make these functions direct reports to the Administrative Assistant. As noted, the Procurement Department handles significantly higher volumes of work than its direct comparable jurisdictions. Organizations that think strategically, utilize forecasting to identify future needs and utilize those forecasts to make strategic decisions. Thus, it is recommended that the City of Augusta utilize its forecasting abilities to make projections on future volumes. These projections should also be used to give full consideration to the organizational structure proposed by the Procurement Director (See Appendix D). As stated, there needs to be organizational consensus on strategic priorities amongst local government leadership. It has become increasingly common to utilize performance measurement to support managerial directives. Thus, it is recommended that the Commission and Administration work with the Procurement Director to develop a consensus on the performance metrics that will be utilized to specifically track Procurement Department functions. Currently, the department utilizes metrics such as Cost Containment to track the ability to leverage institutional buying power. Examples of performance metrics utilized by the comparable jurisdictions is included in Appendix E. Continued Automation/Technological Upgrades. In discussions with the Procurement Director, it is noted that The Procurement Department initially began to automate in 1999. Since this initial effort nine (9) system upgrades have taken place with the additional upgrade to “One Solution” being currently implemented. Feedback indicated that the Information Technology Department has been instrumental in this 13 process, and CVIOG had the opportunity to directly observe a recent procurement system training session with staff members from both internal and external system users. Based upon previous observations of the use of automation/technology in other departments, there may be a natural learning curve as well as a resistance to utilizing new systems and procedures. Thus it is recommended that the City of Augusta and service receiving agencies place additional emphasis and support on increasing training opportunities and mandating successful participation. o Additionally, as procurement processes continue to be updated, other opportunities should be continually explored to reduce reliance on performing manually repetitive tasks. Note that dialogue with department management has indicated the intention to continue process modernization. System upgrades, such as the current updates, are in-line with what other procurement departments in comparable units of government are currently implementing. Currently, the department produces and maintains a significant amount of paper-based records. If the department is to increase record keeping efficiency and acquire additional efficiencies by increasing the utilization of electronic processing, then adequate staffing must be in place. Based upon the significant degree of over-time the department currently utilizes, it is apparent that staffing levels are not adequate enough to support the scanning necessary to complete a full modernization of the current system. This is further supported by the Grand Jury investigative findings (2012), whereas staff was highly involved in converting paper-based records into an electronic format. The Grand Jury found that this is taking significant time and effort, although this review also found that staff is already highly involved in keeping up with their current day- to-day operations. 14 o Thus, it is recommended that the City of Augusta place a high priority on providing adequate staffing to support record keeping modernization by creating and filling the ‘Secretary/Scanner’ position. This function will help address the back-log that exists regarding paper-based scanning, will free other staff to focus in on their primary job responsibilities, and increase departmental capacity to further reduce paper-based procurement processing in the future. Training and Certification. The review finds that key personnel have the appropriate amount of academic and experiential qualifications to qualify for their specific positions. However, utilization of professional training and continuing education opportunities would help prepare the department for further modernizations and further support the departmental orientation of continuous improvement. Additionally, participation in continued professional development opportunities that are procurement based can help build the credibility of the department through increased technical competency, and facilitates staff including industry standards in departmental operations. Effective provision of procurement services is associated with credible training and certifications from relative institutions. There are multiple institutions that can provide financial management training, on-site, off-site and through on-line portals. Thus, it is recommended that the City of Augusta provide training opportunities for employees within the Procurement Department. These opportunities include becoming certified as a Professional Public Buyer (CPPB), amongst others. Additionally, opportunities can be explored through the Universal Public Procurement Certification Council, Georgia Procurement Association of Georgia, Carl Vinson Institute of Government, and the Georgia Department of Administrative Services. To facilitate this process, resources must be allocated so as to ensure that professional development standards become a significant component of departmental culture. Consideration should also be given to connecting continuing education and training to future increases in compensation and classification. 15 Compensation and Classification. The departmental implications of developing an organization wide consensus on strategic priorities, merging organization wide procurement functions, increasing managerial support and engaging in metric based succession planning, will require consideration of the full range of responsibilities and compensation of each position. Recently, the department has expanded its capabilities by filling the compliance officer position. However, the compensation and classification of current and potential future positions will need to be considered to support the future organizational consensus on strategic objectives. A sound classification and compensation system provides a basic framework for making compensation decisions throughout the organization, keeping a balance between roles, responsibilities and required skills. Rewarding employees for their professional accomplishments, a sound classification system also facilitates an organization achieving its strategic goals and provides a foundation for departmental development and succession planning. Thus, it is recommended that the City of Augusta in collaboration with the Procurement Department and its Human Resources Department reassess the classification system and compensation structure of Procurement within the context of strengthening and establishing mid-level management and maintaining competitiveness with comparable jurisdictions. This is particularly important with those positions that should be upgraded based upon increased supervisorial responsibility. POLICIES AND PROCEDURES In further support of this study, the Augusta Procurement Department provided substantive and detailed documentation regarding restructuring, policies/procedures, and internal department process flows. The provided documentation was reviewed and compared to the comparable jurisdictions, where applicable, and standard processes recommended by ICMA. Please note the following observations: 16 The policies and procedures that support the procurement process were reviewed. This included the enabling aspects of the Augusta Code, material and service procurement processes, selection of procurement methods processes, public notice’s, bidder pre-qualification processes, bidder’s list development, pre-bid conferences/addendums, bid acceptance and bonding, e-verification, bid/proposal evaluation, compliance, p-card, ethics statement, and employee confidentiality agreement. The review finds that these processes have the level of specificity to fully support effective procurement. Additionally, the time-line for policy updating appears to be sufficient as well. As a significant component of this review, the Procurement Department submitted documentation on all process flows throughout the department (See Appendix E). Upon review, it is found that these processes are well documented and show the necessary distribution and separation of duties as well as the depth of analysis to indicate substantive managerial control. For more information, contact: Malik R. Watkins, Ph.D. Carl Vinson Institute of Government University of Georgia malik@uga.edu 17 APPENDIX – A: ATHENS-CLARKE COUNTY UNIFIED GOVERNMENT (PROCUREMENT) 18 APPENDIX – A: (CONTINUED) COLUMBUS-MUSCOGEE PROCUREMENT DEPARTMENT 19 APPENDIX – A: (CONTINUED) CITY OF AUGUSTA PROCURMENT ORGANIZATION CHART 20 APPENDIX – B: (CONTINUED) DEKALB COUNTY ORGANIZATION CHART 21 PRINCIPLES OF ADMINISTRATION Specialization/Division of Labor Concentrating similar functions together in a department/unit facilitates specialization of skills and processes and allows for increased focus and efficiency. Unity of Command Positional instructions should be received directly from one superior only. Accountability to more than one position should not disrupt the flow of information to positions that have direct responsibility. Unity of Direction The principle of unity of command must be supported with consensus on the specific strategic goals and performance measures utilized to guide and manage positional functions. Scalar chain/Line of Authority Reporting and authoritative relationships between elected officials, administrators, department heads and staff must be respected. Information flow and reporting must be clear and flow through the hierarchical chain of command. Span of Control The concept of span of control states that only a specific number of subordinates can be effectively and efficiently supervised by one person. While the ideal number of subordinates varies based upon managerial capacity, the nature of the work performed and overall organizational stability, an acceptable standard has been to structure organizations so that each manager has no more than five to six direct reports.4 APPENDIX C: – PRINCIPLES OF ADMINISTRATION 22 APPENDIX D: – PROPOSED DEPARTMENT STRUCTURE BY DIRECTOR 23 Budget Component Description Goal to provide more training opportunities for internal and external customers in order to enhance their efficiency and improve their transition to the new financial system (Indicator becomes number of individuals trained and number of representative agencies). Objective to reduce the errors by internal customers by 50% Performance Indicator Number of Customers Trained Goal To complete a standard operating procedures (SOP) manual in order to enhance division efficiency and provide a codified resource for old and new staff members. Objective Reduce the number of time an employee must search for reference information. Performance Indicator Number of SOPs completed or updated Goal to encourage use of the Procurement Card in all departments in order to reduce unnecessary lag time obtaining purchases under $1,000 and reduce travel reservation lags. Objective Reduce the number of purchase orders and checks generated for small purchases and for travel purposes. Performance Indicator Number of card holders. Goal Reduce cost to procure goods and services through the use of a procurement card (P-card) program, statewide contracts, cooperative procurement agreements and General Services Administration (GSA) contracts. Performance Indicator Percentage of purchase orders issued in 5 days (actual and forecasted metrics are utilized to assess this variable as well) APPENDIX E: – PERFORMANCE MEASUREMENT EXAMPLES 24 APPENDIX F: PROCUREMENT DEPARTMENT FLOW CHARTS CHARTS PROVIDED BY AUGUSTA PROCUREMENT DEPARTMENT 25 APPENDIX F: PROCUREMENT DEPARTMENT FLOW CHARTS (CONTINUED) CHARTS PROVIDED BY AUGUSTA PROCUREMENT DEPARTMENT 26 APPENDIX F: PROCUREMENT DEPARTMENT FLOW CHARTS (CONTINUED) CHARTS PROVIDED BY AUGUSTA PROCUREMENT DEPARTMENT 27 APPENDIX F: PROCUREMENT DEPARTMENT FLOW CHARTS (CONTINUED) CHARTS PROVIDED BY AUGUSTA PROCUREMENT DEPARTMENT 28 APPENDIX F: PROCUREMENT DEPARTMENT FLOW CHARTS (CONTINUED) CHARTS PROVIDED BY AUGUSTA PROCUREMENT DEPARTMENT 29 APPENDIX F: PROCUREMENT DEPARTMENT FLOW CHARTS (CONTINUED) CHARTS PROVIDED BY AUGUSTA PROCUREMENT DEPARTMENT 30 1. Streib, Gregory. Applying Strategic decision making in local government. In Local Government Management: Current Issues and Best Practices, edited by Douglas Watson and Wendy Hassett. ASPA. M.E. Sharpe, Armonk, New York. American Society for Public Administration. 2003. P. 322-323 2. Management Policies in Local Government Procurement, edited by John R. Bartle, W. Bartley Hildreth, and Justin Marlowe Sixth Edition. ICMA Press (2013). 3. Columbus Consolidated Government, Fiscal Year 2015 Operating Budget. http://www.columbusga.org/finance/Financial_Planning/CIP-Book-FY15.pdf. Accessed February 2015 4. Augusta, Georgia, Adopted Budget Fiscal Year 2015, http://www.augustaga.gov/DocumentCenter/View/6154. Accessed February 2015 5. Unified Government of Athens-Clarke County, FY 2015 Annual Operating & Capital Budget. https://www.athensclarkecounty.com/DocumentCenter/Home/View/22006. Accessed February 2015 6. Gerri Sams. Personal Interview. February 2015. 7. Sheila Paulk and Andrea McCorvey. Personal Communication. February 2015 8. Harmon, Michael and Richard Mayer. Organization Theory for Public Administration. 1986. Little, Brown and Company. Boston. P. 127 – 134. For more information, contact: Malik R. Watkins, Ph.D. Carl Vinson Institute of Government University of Georgia malik@uga.edu APPENDIX G: REFERENCES Administrative Services Committee Meeting 4/14/2015 1:20 PM Procurement Department Organizational Review Department:Administrator Caption:Discuss Procurement Department organizational review conducted by Dr. Malik Watkins with the UGA Carl Vinson Institute. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Administrative Services Committee Meeting 4/14/2015 1:20 PM Succession Plan for Crititcal Positions Department:Clerk of Commission Caption:Task the Administrator with developing a succession plan for all critical positions within the ARC Government. Underscore the significance of having the ability to fulfill our mission, without having to recruit outside our government. (Requested by Commissioner Lockett) (Referred from March 10 Administrative Services Committee) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: