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sr-121383-11gPE:SEM:p Santa Monica, California Council 'Meeting: December 13, 1983 / f~ TO: Mayor and City Council 1' ~ / .w FROM: City Staff l DEC 1 3 fLo~i SUBJECT: Realignment of Purchasing Function, Approval of Classification Specification and Adoption of Resolution Establishing Salary For Purchasing Agent and Authorization For Additional Position. Introduction This report requests that Council approve the classification specification for Purchasing Agent, adopt the attached Resolution establishing a salary for that position, authorize an additional posi*_ion of Buyer-for the purchasing function and.. direct the City Attorney to prepare an Ordinance making the purchasing function a division of ,the Finance Department, Background The announcement of the retirement this month of the Director of Purchasing has occasioned an administrative review of the structure and placement of the purchasing function. Purchasing i-s currently a Department level function, in Santa Monica. In similarly situated cities, purchasing is at the Division level and is frequently associated with the Finance function. In addition to addrPSSing the appropriate placement of the function, its staffing pattern was rwiewed to determine if changes were warranted that would facilitate progress on the Women and Minority Business Enterprise Program and on the establishment of data processing systems and documentation for the purchasing function. ~~ ~~~ ~ ~ ~~ The proposed realignment of the purchasing function includes: o Elimination of the Purchasing Department and creation of a Purchasing Division in the Finance Department. o Substitution of a Division Head 2eve1 position of Purchasing Agent far the Department Head level position of Director'of Purchasing. o Addition of one Buyer position to the purchasing function. Existing and proposed organization charts are attached. Since the Purchasing Department was established by Ordinance it will be necessary to adopt an Ordinance formalizing the proposed change. Personnel has"prepared the attached classification specification for Purchasing Agent which the Personnel Beard will review at its December 12 meeting.. The Board's comments, if any, will be forwarded to Council on t-he thirteenth. A salary survey for Purchasing Agent in eight cities similar to Santa Monica and internal salary comparisons indicate that a salary of $3125 per month ($37,500 per year) would be appropr--fate for th"e functian. Budget/Financial Impact The net impact of deleting the existing position of Director. of Purchasing and estabiishment of a division head position of Purchasing Agent and an additional pasitiofl of Buyer is a budgetary increase of $1,424/year (at E-step). However, as it is anticipated that both of the recommended new positions will be filled at less than the top step of their respective salary schedules, a net annual financial savings will _result. Recommendation It is recommended that Council approve the attached classification specification, adopt the attached Resolution, authorize an additional Buyer position for the purchasing function and direct the City Attorney to prepare an Ordinance making the purchasing function a division of the Finance Department. ,"7 Prepared By: Susan E. McCarthy, Director of Personne Mike Dennis, Director of Finance CURRENT Director of Purchasing Assistant Staff Purchasing Assistant Storekeeper Agent IV Staff Warehouse Buyer Assistant Worker II PROPOSED Director of Finance Director ~ Staff of Functions Finance Purchasing ~ Accounting ~ Revenue/ Agent Function Treasury Function Asst. Staff Store- P.A. Asst. keeper IV B r ~ rk (2) As t er Wo i