Modesto OKs $470,000 Utilities Department restructuring

The Modesto City Council last week approved a restructuring of the Utilities Department that includes creating new job titles and duties for employees and will cost the city about $470,000 in its current budget year.

Even though the council approved the restructuring Nov. 10, the pay increases for the new positions are retroactive to December 2014, based on deals reached between the city and the Modesto City Employees Association and the Modesto Confidential and Management Association, which represent Utilities Department employees.

Utilities Department Director Larry Parlin said the restructuring eliminates narrowly defined positions and will result in workers who are better trained and are able to take on more duties. He added this is part of a department effort to become smarter and operate more like a business, and includes more use of technology. Parlin said in the long term, the department should have fewer employees through attrition.

Councilman Tony Madrigal wanted to postpone the council vote until Parlin could provide council members with an estimate on how much money he expected the restructuring and other efforts eventually will save the city. Parlin said such an estimate would be difficult to make at this time and he would not have confidence in it.

The other council members did not support Madrigal and approved the restructuring. The vote was 5-1, with Madrigal voting “no.” Councilman Dave Lopez had left the meeting at that time.

The Utilities Department is responsible for the city’s water and wastewater systems and was created in its current form as part of a citywide reorganization in July 2014. Parlin said the proposal affects about 170 of the department’s 276 employees. It creates about 20 new jobs and eliminates more than two dozen.

A city report states the job changes will result in annual pay increases of $440,658 for Utilities Department employees plus $265,172 for three new information technology positions needed to support the department, for a total annual cost of $705,830. But the report states the net cost to the department in the current budget year is $470,683 because of savings from not filling three open positions. Parlin said he may eliminate those positions.

The money for the pay increases and to hire the information technology workers will come from the city’s water and sewer funds.

This story was originally published November 15, 2015 at 6:00 PM with the headline "Modesto OKs $470,000 Utilities Department restructuring."