SUBJECT:
Title
Organization Updates and Discussion
Body
DEPARTMENT: Administration
Department
PRESENTER(S): Malcolm Fleming, Town Manager
First Name Last Name, Title
TIME ESTIMATE: 15 minutes
only required for non-consent items
POLICY ISSUES:
Structuring the Town’s departments to ensure exemplary service to Town residents, businesses and visitors. The Town’s new Home Rule Town Charter requires the Town Council approve departmental changes/additions by ordinance.
STAFF RECOMMENDATION:
Recommendation
Staff recommends creating a new Utilities Department, creating an additional Deputy Town Manager position, and updating the Erie Municipal Code to formally recognize all Town departments the Board of Trustees (now Town Council) approved in previous actions (but did not amend the Code to document such actions).
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
Staff have been working closely over the course of the last year to ensure effective succession planning as well as sufficient depth within the organization to serve current and future residents with services commensurate with a community of choice. To achieve these goals and to maintain a high level of service, staff proposes the following structural changes, which are fully supported by leadership, and the affected staff members.
Forming Separate Public Works and Utilities Departments
Public Works is currently the largest Department in the Town of Erie in terms of Director reports, full-time staff, operational and capital improvements budgets. Uniquely, Public Works oversees separate general fund, and enterprise fund (water,
sewer, storm and airport) budgets. Public Works currently accounts for roughly 40% of the Town’s operational expenses and over 70% of its capital expenses. Meanwhile, the capital side is growing significantly. Overall, the Public Works budget on an annual basis is twice the size of the next biggest budget (Parks & Rec).
Public Works’ the current value of utilities-related Capital Improvements total close to $1 billion. There are significant current and future facility expansions that need constant attention: Town Hall, PD, LAWSC, a second Rec Center and Performing Arts Center. In total these facility expansions and additions will cost over $200 million as well. Erie residents’ long-term costs will be largely dependent on decisions we make today in these areas. These two significant areas of Town investment (Utilities and Facilities) need proper focused oversight at the Director level. Staff believes the solution is to create two separate Departments, as is common in communities our size and larger.
Public Works would handle primarily the growth-focused side, Engineering, Transportation, Facilities and Airport. Utilities would oversee Water & Wastewater and O&M. As the separate Public Works and Utilities Departments grow, a deputy director position, or two, could help relieve the workload for the respective directors.
By making this change now, we would allow for the recruitment of a new Public Works Director with specific experience in engineering, transportation and project management. This overall plan would create little pressure on the General Fund as it will be almost entirely borne by the utility funds, which is appropriate as those funds would benefit most from the proposed change. This structural change would also facilitate future hiring for both positions because the experience and skill set for both positions would be of reasonable scope.
The attached memo from Public Works Director Todd Fessenden provides more detail and justification for this proposed departmental structure.
Second Deputy Town Manager
As the Town’s population grows, so have our programs, projects, and the breadth of service we provide to residents, businesses, and visitors in Erie. To provide the most effective service, we have elevated to department status the Administration, Economic Development, Communications & Community Engagement, Human Resources, and Information Technology Departments and created a new Environmental Services Department.
Leading, strategizing, and overseeing 11 departments, providing effective support for the Council, and keeping up with and implementing public management best practices is a monumental task. We also have phenomenally talented Directors and Managers who are actively recruited and who we need to take active steps to retain. With this in mind, and following best practices from other municipalities, we propose adding an additional Deputy Manager position to the Leadership Team. This new structure would enable the Manager to devote more attention to the Council’s top priority policy issues. It would also help with retention, provide a stronger Town Manager succession structure, and growth and development opportunities for Directors.
The three charts on the following pages illustrate the current organizational structure, the structure reflecting the proposed division of Public Works into separate Utilities and Public Works Departments, and the proposed structure reflecting the addition of a second Deputy Manager position and distribution of departments among the Town Manager and Deputies.
As part of his approach to mentoring, Town Manager (TM) Fleming has rotated direct oversight of Department Directors with Deputy Town Manager (DTM) Wiley so over a period of years DTM Wiley is responsible for, gains experience in, and applies a fresh perspective to all program areas. TM Fleming intends to continue this practice if the Council approves the additional DTM position.
Having discussed these proposals with the Council during the Jan. 16 Council Retreat, and then again in this Jan. 23 regular Council meeting, staff intends to ask Council on Feb. 13 to approve an Ordinance updating the Municipal Code to formally list and recognize all Town departments. This Ordinance would include the Environmental Services Department, created in 2023, and the proposed Utilities and Public Works Departments. Staff will also ask the Council to approve funding to create the new Utilities Department Director position and the 2nd DTM position as part of the 1st Supplemental budget amendment.
COUNCIL PRIORITY(S) ADDRESSED:
ü Prosperous Economy
ü Well-Maintained Transportation Infrastructure
ü Safe and Healthy Community
ü Effective Governance
ü Fiscally Responsible
ATTACHMENT(S):
1. Memo