Loading...
HomeMy WebLinkAbout14D-Finance C'.TV'OF SAN BERNACPINO- REQUEST F~ COUNCIL ACTION -....' From: BARBARA PACHON, DIRECTOR OF FINANCE Su~ect: REORGANIZATION OF PURCHASING DIVISION Dept: FINANCE Date: NOVEMBER 14, 1994 Synopsis of Previous Council action: On November 10, 1994, the Council Personnel Committee recommended this item for approval. Recommended motion: 1. Eliminate the vacant Purchasing Agent position ($49,464-60,120) and replace it with one Purchasing Manager position ($46,740-56,811). 2. Eliminate one Senior Buyer position ($32,208-39,144) and replace it with one Warehouse Supervisor position ($32,208-39,144). 3. Eliminate one Purchasing Clerk position ($19,764-24,012) and replace it with one Assistant Buyer position ($26,652-32,400). 4. Decentralize Facilities Management and Fleet Management warehouse functions and transfer one Storekeeper position to Public Services (no cost or savings to the City). ~ffi/4- J ~~_ / Signature Contact person: Barbara Pachon, Director of Finance Phone: x - 5242 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: Net Savings of $8.400 - Year 1 Source: (Acct. No.) (Acct. DescriPtion) Finance:~hp S/~-Z~ / Council Notes: 75-0262 Agenda Item NO~ CITY OF SAN BERN~DINO - REQUEST FbR COUNCIL ACTION STAFF REPORT A. BACKGROUND with the recent vacancy created by the departure of the Purchasing Agent, a review of the Purchasing operation was warranted. The review included looking at Division policies, procedures, workload statistics, and staffing levels. Based on the review, two primary concerns were identified. The first concern was the Division's staffing levels, classifications, and duties. The second concern was the duplication and repetitive steps for receiving and delivery. In order to address the two primary concerns identified in the review of Purchasing, some minor reorganization changes for the Purchasing Division are being recommended. The proposed reorganization is as follows: 1. Eliminate the vacant Purchasing Agent position ($49,464-60,120) and replace it with one purchasing Manager position ($46,740- 56,811) . The salary range for a Purchasing Manager is approximately $3,000 less than that of the Purchasing Agent. The Purchasing Manager position will be responsible for supervising the Purchasing Division. He/She will give work assignments to Purchasing Staff, directly handle major bid purchases, approve all Purchase Orders, work with Departments on purchase planning and service delivery. 2. Eliminate one Senior Buyer position ($32,208-39,144) and replace it with one Warehouse Supervisor position ($32,208- 39,144). The change from a Senior Buyer to a Warehouse Supervisor is just a title change to more accurately reflect the job. currently being done by the Senior Buyer. The Warehouse supervisor will supervise the daily operations of the Central Stores Warehouse and do purchasing to restock inventory. This position works under the direct supervision of the purchasing Manager. 3. Eliminate one Purchasing Clerk position ($19,764-24,012) and replace it with one Assistant Buyer position ($26,652-32,400). The Assistant Buyer position will assist the Purchasing Manager in the bidding and reviewing of all purchases for City Departments. The Assistant Buyer position will be directly responsible for most routine bids and quotes, placement of orders, maintain and distribute to Departments vendor listings maintained by Purchasing, work with Departments to solve purchasing problems and issues. CITY OF SAN BERNA:4DINO - REQUEST F~ COUNCIL ACTION STAFF REPORT 4. Decentralize Facilities Management and Fleet Management warehouse functions and transfer one storekeeper position to Public Services (no cost or savings to the City). Currently, the purchasing Division receives all goods through the Central Warehouse. Facilities and Fleet then complete a warehouse stock requisition to purchase the items from the Central Warehouse. This system represents a "double-handling" of materials. Facilities Management currently has sufticient storage capacity in close proximity to the Central Warehouse and they have sufficient staffing and inventory control to accommodate direct shipment and storage. Fleet Management is currently making some changes that will soon give them sufficient storage capacity to accommodate direct shipment and storage. Since Fleet does not have sufficient staffing to accommodate the increased workload, it is recommended that one Storekeeper position be transferred from the Finance Department to Public Services. The resulting benefit of decentralizing these warehouse functions is that user Departments will have greater knowledge and control over existing inventory and eliminate the accumulation of obsolete stock. B. COSTING Initially the Finance Department will save approximately $8,400 with the implementation of the reorganization plan. This savings is the result of filling the newly created Purchasing Manager position at the beginning step compared to the top step the previous Purchasing Agent was at. Under the newly approved Merit increase system for the Management/Confidential group, the purchasing Manager position will only receive pay increases that are supported by job performance. Under this merit increase system, it will most likely take more than five years for the Purchasing Manager to reach the top step of the position salary range. Once all positions in the Purchasing Division are at the top salary range, there will be an annual increased cost of $5,079. This increased cost will be absorbed in the Finance Department budget. C. RECOMMENDATIONS It is recommended that the reorganization be implemented, in order to improve the operations of the division.