Costa Mesa To Discuss Outsourcing Nearly EVERY Job
THE EXCREMENT HAS HIT THE OSCILLATING UNIT!
Just after 1:30 p.m. today almost CEO Tom Hatch announced that the Budget Working Group (Gary Monahan and Jim Righeimer) are placing an item on the agenda for Tuesday's council meeting in which they will basically recommend the council to consider outsourcing almost EVERY job within the city. To avoid misinterpretation of the memo I've provided the entire text below.
From: HATCH, THOMAS
Sent: Friday, February 25, 2011 1:39 PM
Subject: Organizational Update
Fellow City Staff,
This will be a short update for now but I wanted to immediately inform you of a Report that is being added to the City Council Agenda for Tuesday, March 1, 2011. The title of the report is “Outsourcing of City Services” and the item was requested by the City Council Budget Working Group. At the Study Session of February 8, 2011 the City Attorney provided a report on “Noticing Requirements for Outsourcing or Layoffs.” The report determined that the City Council needs to make a decision about which particular services are going to be outsourced before any six month noticing requirement starts. The Budget Working Group wants the City Council to consider making the decision on outsourcing some services on March 1, 2011 and therefore a report is being presented on Tuesday. Below is the language of the Report and the Report is just being finalized and will be added to the Agenda and posted to the website this afternoon. The leadership of the associations is being informed of this item and the likely impacts from the issues. In short, if this report is approved, then for the services identified below, a process will begin to fully investigate which employees are impacted and how exactly employees will be noticed. Bumping right issues will also need to be addressed. There are important details related to the noticing issues and need further discussion by Department Heads and this will occur on Monday.
Below is the language of the Report and the final Report will be posted to the website this afternoon. As more information is available, we will share it as soon as we can.
The City Council Budget Working Group is recommending that the City Council outsource the City services listed in this staff report and direct the Assistant City Manager to begin the process of noticing employees of this action.
At the City Council Study Session of February 8, 2011, the City Attorney presented a staff report (Attachment A) that outlined the requirements for noticing employees for outsourcing or layoffs. This report was requested by the City Council Budget Working Group in an effort to understand the process for appropriately notifying employees of future outsourcing. The report states, “For layoffs which would result from contracting out a specific service, each affected employee would be entitled to at least six months’ notice pursuant to Administrative Regulation 2.26 and the City is also required to meet and consult with the applicable bargaining units (or employees if not part of a bargaining unit) to identify the specific employees/positions which would be subject to layoff as well as the impact of such layoffs/contracting out on the remaining members of the unit.”
The City Council Budget Working Group is concerned that a six month noticing requirement per applicable Memorandum Of Understandings and/or Administrative Regulations will not allow for implementation of changes until several months into the next fiscal year. Any decision to outsource services by the City Council on March 1, 2011, would not become effective until September 1, 2011 or later date. The financial concern is that with the noticing requirements any budgetary savings from a change in the system for delivering services would not be realized at the beginning of the next fiscal year and likely would not be effective until well into the new fiscal year.
Given the constraints identified above for a six month noticing process and given the successful outsourcing of similar services by other cities, the Budget Working Group is recommending that the City Council act now to decide on outsourcing these identified City services:
- The entire Fire Department operations;
- Street Sweeping services;
- Graffiti Abatement services;
- Park Maintenance services;
- Parkway and Median Maintenance services;
- Fleet Maintenance services;
- Street Maintenance services;
- Facility Maintenance services;
- Animal Control services;
- City Jail services;
- Special Event Safety services;
- Information Technology services;
- Telecommunications services;
- Building Inspection services;
- Reprographic services;
- Graphic Design services;
- Payroll services; and
- Employee Benefit Administration services.
Per the City Council’s direction, the City has commenced a complete organizational review of the structure of how municipal services are provided to the community. This process is expected to take up to six months or more to complete. As portions of this comprehensive review are completed, the detailed analysis and alternatives for service delivery will be provided to the public and employees for review and input prior to the City Council deliberating and determining the new structure for service delivery of each identified service. The options for new service delivery could include the following: a private vendor, another public agency or joint powers agreement, a non-profit agency, restructured City staff operations, or another method still to be determined. As this process moves forward, the formation of recommendations about new service delivery systems will be based on the thorough evaluation of the best and most efficient method for delivering a particular service to the community and may likely require formal bidding processes.
The City Council may decide not to outsource all or some of the services identified.
The fiscal impact for outsourcing the identified City services is unknown at this time.
After discussing alternatives and the timing constraints for outsourcing, the Budget Working Group is recommending that the City Council outsource the City services listed in this staff report and direct management staff take the appropriate legal steps to notice employees of this action.
Thomas R. Hatch
Assistant City Manager
City of Costa Mesa
77 Fair Drive, Costa Mesa, 92626
Ph. (714) 754-5288 Fax. email@example.com
THE PERFECT ORGANIZATION - ONE BOSS AND NO MINNIONS
It's clear from Hatch's memo that there are NO jobs that are not on the table for elimination. In a previous entry I postulated that Righeimer and his buddies idea of a "perfect" organization would be one with only the CEO and a bunch of contract analysts to manage the outsources functions. You thought I was being ridiculous... OK, now what?
MORE TO FOLLOW
This is breaking news and I'm sure there will be much, much more to follow - perhaps later today. I'll let you know when I know. Have a nice weekend!