Title
Additional Resources Needed in Finance and Street Transportation Departments for Citywide Procurement and Engineering Services
Description
Request to authorize the City Manager, or his designee, to allow the Finance and Street Transportation departments to add 26 new ongoing positions and additional one-time resources to address increased Citywide procurement and engineering services needs.
Report
Summary
The City has experienced significant increases in the costs associated with procurements, contracts and capital projects. These increased costs require additional resources totaling $5,300,000 in the Finance and Street Transportation departments' operating and capital budgets to ensure effective and efficient delivery of programs and services to the community. The Budget and Research Department conducted staffing studies for both departments and recommend 26 additional positions and additional one-time resources to meet the growing demand. Additionally, in November 2023, City of Phoenix residents approved a $500 million General Obligation (GO) Bond Program and additional staff are necessary to successfully deliver the projects included in the program.
The Finance Department’s Procurement Division is responsible for purchasing goods, acquiring general and professional services, and promoting open competition and fairness throughout the procurement process. Their primary goal is to ensure goods and services procured meet the needs of customers and provide maximum value to the City. As the city has experienced population growth and new or enhanced services are provided to residents, the complexity and number of both procurements and contracts have grown. The Procurement Division’s staffing levels have not increased to meet the needs of its customers, causing excessive workloads for employees and delays in procurements. The request of $3,380,000 will fund 12 new ongoing positions (one Assistant City Attorney IV, two Finance Procurement Officer Leads, nine Finance Procurement Officers) and one-time costs for equipment and temporary staffing. The estimated ongoing annual cost is $1,800,000, and will be allocated to the General Fund and Non-General Funds. Adding these positions will ensure the Procurement Division can complete their growing workload in a timely manner and increase the City’s ability to operationalize completed capital projects.
The Street Transportation Department’s Office of the City Engineer (OCE) is responsible for the selection and oversight of architects, engineers, and contractors executing most of the City's five-year Capital Improvement Program (CIP). Like the Finance Procurement Division, OCE staffing levels have not increased to meet the growing demand for services, causing excessive workloads for staff and delays in completing projects. The GO Bond Program will also add additional projects requiring these services. The OCE will be instrumental in executing capital projects and it is critical they are appropriately resourced to be successful. The request of $1,920,000 will fund 14 new ongoing positions (one Architect, one Civil Engineer I, one Civil Engineer III, one Contracts Specialist I, one Contracts Specialist II, one Engineering Tech, one Management Assistant III, one Principal Engineering Tech, two Environmental Quality Specialists, four Project Managers) and one-time costs for equipment and temporary staffing. The estimated ongoing annual cost is $1,610,000 and will be allocated to capital projects and the General Fund. Adding these positions will ensure OCE is able to efficiently and effectively oversee existing and new CIP projects.
Financial Impact
The estimated cost of $5,300,000 will be incorporated into the Finance and Street Transportation departments' operating and capital budgets currently in development for the Fiscal Year 2024-25 budget.
Department
Responsible Department
This item is submitted by City Manager Jeffrey Barton and the Finance, Street Transportation and Budget and Research departments.