Administrative Department Restructuring

The City's Economic Development Manager submitted his letter of resignation, and indicated that his last day of employment will be on or about September 15.  The purpose of this case is to consider the alternatives for the continued performance of the duties of this position once it is vacated.

Strategic economic development is defined as one of the primary goals in the City's Strategic Plan.  Based upon this priority, the  current Economic Development Manager position was authorized, and hired in October of 2013, after a lengthy search process.  It is anticipated that economic development will continue to be a high City priority for the foreseeable future.

Since hiring the position in 2013, a number of important strategic initiatives have been completed.  Among those items were:
 

• Re-structuring of the COR TIF District 14 in order to meet the City's revenue goals for the District and to increase the amount of land  in the general tax base.
• Adopted an "exit strategy" for the COR properties which included a market-based pricing schedule and listing with a professional real estate broker, CBRE.
• Progress toward the sale and development of a number of other key City properties such as the old Municipal Center, the 167th/Hwy 47 Commercial node, and a new business park on the west side of Armstrong.

Of course, a number of business development, retention, and recruitment functions continue to be done by the City on a regular and on-going basis.

The City has a number of options that it can consider, including:

 

1. Do not fill the position, and reduce or eliminate economic development duties as a priority (not recommended).

Advantages:  Cost savings in payroll by eliminating a position.  There would be less staff overall,  and some work could continue to be done by staff, or farmed-out to private consultants.
Disadvantages:  This option is not consistent with long-term strategy of promoting economic development to create financial stability.  Potential loss of tax base and employers.  Reduced land sales and fewer development considerations.  Workload on existing staff may lead to unachieved expectations, low job satisfaction, and turnover. 

 

2. Re-assign duties to existing staff and make internal adjustments as necessary (recommended).

Advantages: Cost savings in payroll by hiring different positions at a lower pay level. Promotional opportunities are offered to existing staff who have demonstrated value to the organization.  A continuity of service is provided if the work is picked-up by someone knowledgeable of the community. 
Disadvantages:  The City would may incur some additional consultant costs for professional services.  Economic Development will be partially  merged with some continued administrative duties.

 

3. Conduct an external recruitment for the position and hire an outside candidate in its current form  (not recommended).

Advantages: A new person could potentially enhance the development team's skills and resources.
Disadvantages:  This option would not result in a cost savings and could increase costs overall.  Economic development efforts would suffer over the three (3) to six (6) months required to fill the position.

Proposal:

Staff supports and recommends filling this position with the following internal restructuring (Option #2 above):

• Promotion of the Assistant to the City Administrator to Assistant City Administrator, with primary economic development duties assigned.  Salary would be increased commensurate for the position.  Note, a promotion was already previously recommended and budgeted in 2015.
• Promotion of the current administrative intern to a full-time, entry-level position with primary duties to include event planning (e.g., Happy Days, Business Appreciation, banquets, Business Expo, etc.), social media, and other administrative support and projects as required.
• Utilize the existing professional services budget to supplement with consultant services as necessary.
• The Community Development Director would have primary responsibility for land use related projects and planning, plus provide technical review and assistance in regard to the Housing Assistance Policy and other housing related policies and projects.

It is proposed that the new positions be filled by September 15, 2014, subject to Council authorization on September 9.

Staff is proposing a restructuring that will allocate the current duties of the position to existing staff.  It is anticipated that a payroll savings will result.

City Administrator Ulrich.

Staff is recommending Option 2 above, and as outlined in the proposal.  Subject to consensus direction, this item is anticipated  to come back to the Council for action on September 9.