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HomeMy WebLinkAbout08-15-2017 Item 10 - Human Resources and Finance Departments Office Reconfiguration Spec No. 91525 Meeting Date: 8/15/2017 FROM: Daryl Grigsby, Director of Public Works Monica Irons, Director of Human Resources Xenia Bradford, Director of Finance Prepared By: Violeta Esparza-Reniere, Engineer III SUBJECT: HUMAN RESOURCES AND FINANCE DEPARTMENTS’ OFFICE RECONFIGURATION, SPECIFICATION NO. 91525 RECOMMENDATIONS 1. Approve construction documents for "Human Resources and Finance Departments’ Office Reconfiguration"; and 2. Authorize staff to advertise for bids and authorize the City Manager to award the construction contract if the lowest responsible bid is within the Engineer’s Estimate of $112,939; and 3. Authorize allocation of $185,848 from the General Fund balance. DISCUSSION In the 2016-17 Budget Supplement the City Council approved a Significant Operating Program Change (SOPC) titled Organizational Efficiency, Effectiveness, and Transparency Initiative. This project identified the need for both the Finance, Information Technology, and Human Resources departmental re-organization. Specifically, the project approved additional one-time personnel increases in the Human Resources and Finance Departments during the re-organization and implementation of an Enterprise Resource System. Due to the personnel increase and functional re- organization, current workspaces require reconfiguration to meet current and future staff needs. The proposed office space remodel will improve community and city staff interactions and will address Americans with Disabilities Act (ADA) deficiencies at the Finance public counter. The scope of this project is to reconfigure the office spaces to increase the number of workstations and remodel the front counter. In the 2016-17 Budget Supplement $75,000 was identified as minor capital for additional work space to address immediate needs, including the purchase of computers and workstations to temporarily accommodate the additional staff. Further analysis was performed during 2016-17 fiscal year, following the re-organization, and showed that reconfiguration of the office space will enhance efficiencies by addressing internal workflows and create the required number of desk spaces. Currently, only minor adjustments could be made by placing temporary desks. These configurations are not sufficient to house contract and consulting staff to implement the objectives of the Organizational Efficiency, Effectiveness and Transparency Initiative. Currently, approximately $35,000 of the funding for this project is encumbered for architectural design services. Another $20,000 was used to purchase furniture and workstations for the new hires in both Human Resources and Finance departments. Of the original $75,000 identified for this project, the $20,000 balance was returned to the general fund at the end of the fiscal year. Packet Pg 211 10 CONCURRENCES This project is a collaborative effort from the Human Resources, Finance, and Public Works departments. The project team concurs with these recommendations. Currently, the Community Development Department is reviewing the project plans for future issuance of building permit. ENVIRONMENTAL REVIEW The Community Development Department has determined that this project is categorically exempt from CEQA pursuant to Section 15301 (existing facilities). FISCAL IMPACT The total estimate to complete the project is $185,848. Of the $75,000 allocated for this purpose in the 2016-17 Budget Supplement, $20,848 was unused, lapsed at the end of the fiscal year and was returned to General Fund balance. The Finance Department estimates that $100,000 is available through savings due to staffing vacancies as well as general carryover from the 2016- 17 fiscal year. These savings will also be returned to General Fund as part of 2016-17 fiscal year close. As of the 2016-17 Mid-Year report, the estimated General Fund unassigned fund balance was approximately $3 million. In order to timely address Finance and Human Resources staffing space needs and given the project savings in 2016-17, staff recommends that $185,848 be authorized and allocated for this Capital Improvement Project at this time. Given the savings in 2016-17 from expenditures that were originally allocated for the Organizational Efficiency, Effectiveness and Transparency Initiative, it is estimated that the impact to the General Fund balance is $60,000. 2016-17 Financial Statements are currently being prepared and this allocation will be reflected in the fund balance analysis presented with the Mid-Year report in February of 2018. Construction (Engineer’s Estimate): Staff Relocation $1,750 IT Cabling & Workstation Reconfiguration $54,566 Remodel Work $112,939 $169,255 Construction Contingencies:$15,593 Printing and Advertising $1,000 Total Estimated Project Cost:$185,848 Human Resources and Finance Departments' Office Reconfiguration, Specification No. 91525 ALTERNATIVES Deny approval of funding transfer from the General Fund Balance. City Council may choose to deny or defer the approval to transfer the funding. Staff does not recommend this option. Should this be denied or deferred, the needed Finance and Human Resources Departments’ office space remodel will not occur. This project will improve the workflows within the Human Packet Pg 212 10 Resources and Finance Departments. Current configuration of office space is not aligned with the internal workflows of the departments. Should this project be deferred then construction, material and labor costs will continue to rise and additional funds may be required. Attachments: a - Council Reading File - Remodel Plans b - Council Reading File - Remodel Specifications Packet Pg 213 10 Page intentionally left blank. Packet Pg 214 10