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CITOOF SAN BERNARDI~ - REQU~T FOR COUNCIL~N
From:
RAYMOND D. SCHWEITZER
City Administrator
March 24, 1987
Subject:Review and Approval of the Central
Garage Management Audit by Hughes,
Heiss and Associates.
Dept:
Dat~
Synopsis of Previous CouncillCtion:
7/7/86 -- Approved RFP and authorized City Administrator to solicit proposals for
a Management Audit of the Central Garage.
9/22/86 -- Adopted resolution to select Hughes, Heiss & Associates to conduct a
management audit of the Central Garage Division, Public Works Department,
and set up Council Committee to work with the consultant during the course
of the study.
Recommended motion:
That the final report of the Central Garage Management Audit by Hughes, Heiss &
Associates be approved and the City Administrator directed to work with the Public
Works Director and Garage Superintendent to evaluate the impact of each recommendation
and devise a plan of implementation with time frame.
Contect person: Roger Hardgrave
Supporting date ettlChed: yes
Phone:
5025
Ward:
FUNDING REQUIREMENTS:
Amount:
Source: (ACCT. NO.)
(ACCT. DESCRIPTION)
Finance:
Council Notel:
n.d!'!
Agenda Item No._ ~ r.
CITOOF SAN BERNARDI to - REQUECJ FOR COUNCIL AeON
STAFF REPORT
The Final Report on the Central Garage audit prepared by
Hughes, Heiss & Associates is a product based on observations
and study of the Garage operation, interviews and discussions
with Garage staff and user departments, and analysis of data
gathered on budgets, fleet inventory, usage, maintenance
policies and procedures and staff assignments, etc. The
Council appointed Ad Hoc Committee consisted of Councilwoman
Esther Estrada and Councilman Jack Reilly worked' closely
with staff and consultants, and gave meaningful suggestions
and direction throughout the entire study phase.
The report is organized into six chapters:
ChaDter 1 provides, a descriptive overview of Garage
organization and operations.
ChaDter 2 - provides an assessment of the organizational
structure of the Garage.
ChaDter 3 - provides an assessment of staff utilization and
service levels.
ChaDter 4 - provides an analysis of the management of the
City's fleet.
ChaDter 5 - presents an analysis of the equipment maintenance
information system (MIS).
ChaDter 6 - presents a plan of implementation with proposed
dates for the recommendations.
Major findings and key recommendations for each Chapter are
capsulized in the cover letter of the Final Report. Staff of
the Public Works Department and the City Administrator's
Office have reviewed the report.
Recommendation:
Approve the Final Report and direct the City Administrator to
work with the Central Garage and other affected departments
to evaluate the impact of each recommendation: then devise a
plan of implementation with a realistic time frame.
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HUGHES . HEISS & ASSOCIATES
MANAGEMENT CONSULTANTS
675 Mariners Island Blvd. I Suite 106
San Mateo. California 9440.-
415/57ll-6111
MIIrch 1, 1987
Mr. Raymond Schwel1%er
CIty AdmInIstrator
CIty of San BernardIno
300 North "0" Straet
San BernardIno. CalIfornIa 92418
Dear It'. Schwel 1%er:
I n the Fa II of 1986, we I n I tl ated a study of the CI ty of San B.-nardl no
to analyze the organIzatIon and operatIons of the Central Garage Dlv Islon.
ThIs report presents our fIndIngs. conclusIons, and recommendatIons. The
purpose of th I s I etter I s to encapsul ate these fInd I ngs and r8COllllllendatlons.
Our report Is organIzed Into sIx chapters. Key components of our
analysIs are briefly slIIIIIarlzed below:
Chapter I provIdes a descrIptIve overvIew of current Central
Garage DIvIsIon organIzatIon and operatIons. PrIncIpal fIndIngs
contaIned In thIs chapter Include the fol lowIng:
The staff Ing of the Dlv Islon has decreased by four
posItIons sInce FY 1982-83.
.
Over the SlIftIe perIod of tIme, the sIze of the fleet has
grown by 55 pIeces of equIpment or 11'.
SInce FY 1982-83, total Garage DIvIsIon costs have grown by
approxImately 1~ or 3.6' a year.
The PublIc Serv Ices
two-th I rds of total
maIntenance costs.
Department accounts for al most
CIty EquIpment operatIng and
Chapter II prov Ides an assessment of the organIzatIonal structure
of the Central Garage DIvIsIon. Key fIndIngs and recommendatIons
Include the fol lowIng:
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The equipment Maintenance Superintendent should be
reel asslf led to Fleet Manager and the responslbll Itles of
the positIon broadened to prov Ide full-tIme management and
control over all aspects of the CIty's fleet, assure
greater flexibIlIty In meeting the CIty's fleet
requIrements through pooling of vehicles, enable the CIty
to reduce fleet costs through I ntens Ive ana I ys I s of
utI! lzatlon and fleet size. and to Improve the plannIng and
analysIs of need for equipment repl acement.
A User's Comm Ittee shoul d be established to prov Ide a forllll
for exchange of concerns regardIng the quality of equipment
mal ntenance, turnaround tIme for repa I rs, and equ I pment
replacement needs.
The roles and respons/bll Itles of the Central Gerage DIvision
and the PurchasIng Dlv Islon In the procurement and werehouslng
parts need to be clearly del lneated. The Storekeeper I lISsllJ'led
to the Parts Roan shoul d be assigned responslbl! Ity for callIng
parts warehouses to locate needed parts; the Storekeeper I
shoul d "chase" parts. Staff of the Central Garage Dlv Islon
should not be Involved In these actIvitIes.
The rol e of the FI eet Ma I ntenance Superv I SOl'" shou I d be
refocused on hIgh "payback" analysis of fleet cost control
opportun I tl es.
Chapter III prov Ides an lISsessment of staff utll lzat/on and
servIce levels. Key findIngs Include:
The turnaround for equIpment maintenance and repairs 15
excellent. A total of 80s of all repaIrs receIve "sam~day
servIce". In other words, the maintenance and repaIr of
the ,equIpment Is c:cmpleted the same day of arrival at the
DivIsion.
LIttle overtIme Is required to acc:cmpl Ish the work
performed by the DIvIsIon.
Rei atl vel y Ilttl e equ I pment mal ntenance 15 be I ng "f lII"IlIed
out" to outsIde vendors.
The level of staff utll lzatlon can be Improved. this Is
IndIcated bV a number of factors. FIrst, the amount of
Indl ract or I abor hours -- or the overhead - lIIlIounts to
,,, of total hours worked. Second, the actual tIme taken
by staff to repaIr equIpment exceeds the manufacturer's
allowed shop tIme In many Instances. thIrd, work samplIng
IdentIfied the level of productIvity of equIpment
maintenance and repair staff as 67S versus an expected 85S.
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The preventIve maIntenance of lIght equIpment meets the
objectIves of the DIvIsIon, but that of heavy equIpment
fall s fer short of these obJectIves.
A number of actIons shoul d be taken to Improve the eff Iclent utIlIzatIon
of staff as well as the preventIve maIntenance of heavy equIpment.
The EquIpment Meehanlc Forllllen need to spend more tIme on
the shop floor supervIsIng theIr staff and need to functIon
as "servlcewrlters".
A work plannIng and schedulIng system should be
Implllllented.
A part-tIme hourly laborer should be authorIzed for the
Central Garage DIvIsIon to relIeve equIpment maIntenance
staff fran several low skill tasks. The cost of thIs
posItIon would apprOKlmately $5.000 annually In salary.
The We' der I pos I tl on shou I d be de I eted. and the cost
5llvlngs utll Ized to establ Ish another posItIon -- an
EquIpment Mechanic Hel per to Improve preventIve
ma I ntenance of heavy eq u I pment.
Maintenance of SIll a I I grounds maIntenance equIpment should
be contracted. ThIs wIll cost an addItIonal $8.000
annually, but wfll free up 31. of the tIme of an EquIpment
Meehanle for preventIve malntenanee of heavy equIpment.
The repaIr of refuse bins should be reassIgned to the Publ Ie
Serv lees Depar1ment and the efforts of the Auto Body
Repa I rman refocused on body repa I rand pa I nt I ng. Th I s w fll
enabl e the CIty to reduce Its annual budget for contract
body repaIr and paIntIng -- Account 53125 -- by $35.000.
.
A swIng shIft should be establIshed to perform preventIve
malntenanee of heevy equIpment. Key poInts regardIng thIs
swIng shIft are presented below:
The swing shIft should be establIshed wIth exIstIng
staff. The analysIs of staff utilIzatIon elearly
IndIcates the capacIty to handle addItIonal work.
.. The swIng shIft should be allocated three posItIons: A
lead EquIpment MechanIc, EquIpment Meehanle Helper.
and an EquIpment Servlee Worker. Currently, there Is
a vllCllnt EquIpment Meehanle posItIon In the light
EquIpment SectIon. ThIs posItIon should be allocated
to the sw Ing shIft and upgraded to lead EquIpment
Meehanlc. The EquIpment Meehanlc Helper posItIon --
created by utll Iz Ing the cost 5llV Ings generated by
the del.etlon of the Welder I should be allocated to
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the swing shIft. An EquIpment ServIce Werker
alloc:ated to the Heavy Equ I pment Sect I on shoul d be
allocated to the swIng shIft. EstablIshment of the
swing shift will cost an additIonal $4,000.00
annually In sal ary and frInge benef Its due to the
upgrade of the EquIpment Machanlc to Lead EquIpment
Meehan I c.
.. The hours of the sw Ing shIft shoul d approxImate
1:00 pm to 9:30 pm.
.. The Sterekeeper I assIgned to the parts roan shoul d
prov Ide coverage fer at least hal f of the sw Ing
sh I ft. Th I s w I I I requ I re another Sterekeeper I,
currently assIgned to the warehouse, to provIde
coverage fer pert of the mernl ng until the other
Sterekeeper I arrIves at 9:00 l1li.
.. The sw Ing sh 1ft shoul d be establIshed as soon as
possIble.
Chapter IV provIdes an analysIs of the management of the CI1y's
fleet. Key recommendatIons Include the fol lowIng:
A slgnlf lcant portIon of the CI1y's fleet Is underutlllzed.
The EquIpment MaIntenance SuperIntendent should IdentIfy
specIfIc opportunItIes fer reducIng the fleet. ReductIon
of the Cltyrs fleet -- In the magnItude of 6' to 12J - Is
cl early achlevabl e.
An equIpment pool should be establIshed both at CI1y Hall
and at the Central Garage Dlv Islon and the number of
vehlcl es assIgned to employees reduced.
The, Central Garage DIvIsIon should develop perfermance
contracts wIth operatIng depar1ments regardIng the number
of equl pment avail abl e fer use by these depar1ments.
The CI1y needs to develop a cl1ywlde polIcy on equIpment
abuse, the EquIpment MaIntenance SuperIntendent should
document Instances of equIpment abuse and notIfy the
oper at I ng de par 1ment , and cia II Y oper ater eq u I pment
checklIsts shoul d be ut I I Ized fer heavy equ I pment.
The preventIve mel ntenance progrllll shoul d be rev lsed and
Include utIlIzatIon of checklIsts, and notIfIcatIon of
operatIng depar1ments of when theIr equIpment Is due fer
preventIve maIntenance.
Replacement guIdelInes need to be developed fer equIpment,
and the Equipment MaIntenance SuperIntendent should prepare
a fIve year ~I an fer repl acement of equl pment.
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The CIty shoul d Instill I sIx to seven hoists for ..e.lntenance
and repair of heevy equIpment on a "phesed-on" basis ovr
the next three to four y..rs. Two three post hol sts shoul d
be Installed In FY 1987-88. The cost of these 1wo hoists
would approxImately $60,000 IncludIng InstallatIon.
Chapter V presents an analysIs of the equIpment maIntenance
InformatIon system. Key recommendatIons Include the followIng:
An addItional shop schedulIng and control system should be
developed at an estImated cost of $4,000.
Four addItIonal computer terminals are needed for the
Central Grage DIvIsion. The cost of this equIpment would
approxImate $15,000.
The autanated fuelIng system needs to be pranptl y lInked to
the CIty's maInframe.
HlstorlCllI datil for equIpment maIntenance needs to be
entered Into the equIpment maIntenance Informatl9/'l system.
The cost of a part-tIme clerk to enter thIs detll would
apprOKlmately $5,000.
The lleta ProcessIng DIvIsIon and the Central Garage
DIvIsIon needs to reach agreenent on the format of the
output reports for the equIpment maIntenance InformatIon
sy stem.
The Central GlI/"age DIvIsIon should pranptly enter equIpment
ldentlf IClItlon detll Into the equIpment maIntenance
InformatIon system.
Chapter V I presents a plan of Impl ementatl on for these
recommend,tlons.
It has been a pl8llsure to work wIth the CIty of San Brnardlno In thIs
lISS I gnment.
GlI/"Y Goel In
Sen I or Assoc late
SlnC8re~
~HEISS & ASSOCIATES
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