Agenda - Council Work Session - 08/26/2014

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CC Work Session 2. 3. Meeting Date: 08/26/2014 Information Title: Administrative Department Restructuring Purpose/Background: 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) .