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95-828�. � Presented 8y �. �� WI�REAS, the Saint Paul City Council has established a goal of working in collaboration with other units of govemment to improve services and achieve greater efficiencies in government; and WHEREAS, on Febri�aiy 8, 1995, The City Council accepted the Report and Recommendations of the Saint Paul/Ramsev Countv Print Shon Task Force dated January 1995 which is attached for reference; and WHEREAS, on Ju1y 11, 1995, the Ramsey County Board of Commissioners adopted Resolution # 95-298 approving the consolidation of the Ramsey County Central Auplicating Facility with the Print Shop operated by the City's Department of Planning and Economic Development and authorizing the Counry Manager to execute a Memorandutn of Understanding related to employee issues; NOW, THEREFORE, BE IT RESOLVED, that the Saint Paul City Council agrees to the consolidation of the two separate City and County printing facilities into one facility operated by the City on behalf of the two governments; and BE IT FURTHER RESOLVED, that as part of this consolidation, the City agrees to take over the Ramsey County's lease and rental agreements for two pzinting presses needed to provide services in the consolidated printing facility; and BE IT FURTHER RESOLVED, that the Citq agrees to accept the transfer of approximately $5,000 worth of miscellaneous printing equipment and office furniture from Ramsey County to the City; and BE IT FURTHER RESOLVED, that the Mayor is authorized to execute a lease with Ramsey County for rental of space in the Ramsey County Government Center West Building to house the new consolidated printing facility; and Covncil File # 9s �a Y Green Sheet # 12095 BE IT FURTHER RESOLVED, that the Mayor and other appropriate officials are authorized to finalize and execute the Memorandum of Understanding related to employees who are associated with the consolidation of the City and Ramsey County printing facilities (draft attached); and RESOLUTION CITY �F SAINT PAlll _ MINNES�TA _a7 �- Z 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 �. � . �� 2�2 BE IT FURTHER RESOLVED, that the City agrees that the effective date of this consolidation will be the beginniug of the first pay period after the fmal adoption of tlus resolution and any associated budget resolutions; and y's-�-a� BE IT FINALLY RESOLVED, that the Saint Paui City Council coxnmends the City and Ramsey County staff who helped bring this project to its fruition. Adopted by Covncil: Date Adopti CerCified by Cou By: Approved b a o: D�.t� By: G Requested by Department of: Finance & Manaqement Servic EY ��"��Y VIXi,- Q� �zu �� Form�2s0 ed b ' ty toP By: Approve y Mayor to Counci � By: I I�(/�(� GP/ DEPARTMENT/OFPICE/COUNqL DATE INITIATED Rinance & Mana ement �ervices 7/10/95 GREEN SHEE �� -12Q95 CONTACT PERSON & PHONE INITIAUDATE I TE �OEPAHTMENTDIRECTOq CINCAUNdL /' Linda Cam 266-8920 a���x �qTYATfORNEY pNCLERK MUST BE ON COUNCILAGENDA BY (OAT� ppUTING � BUOGET DIRECTOR � FIN.B MGT. SERVICES Dlp. � / OflOER � ti7pyOR (OR ASSI5TAN'n ❑ l TO AL # O ATURE AGES (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION REQUESTEp: � Adopt resolution calling for the._merger b� the Ramsey County Central Duplicating Facility with the Print Shop operated by the Department of Planning and Economic Development. RECOMMENDATIONS: npprove (a) w qeiecc (R) PEFiSONAL SERVICE CONTFiACTS MUS7 ANSWER THE GOLLOWING QUESTIONS: _ PLANNING COMMISSION _ CIVIL SERVICE COMMISSION �� Has this personffirm ever worketl uiMer a contract for this departmeni? _ CIB COMMI7TEE YES NO _ S7AFC z. Has this personffirm ever been a city employee? — VES NO � DIS7RIC7 COURT — 3. Does Mis persoNfirm possess a skill noi normally possessed by any curreM city emptqee? SUPPORTS WHICH COUNGL OBJECTIVE2 YES NO Ezplain all yes answers on Separate sheet antl attaeh to green sheet INITIATING PROBLEM, ISSUE, OPPORTUNITV (Who, What. When, Where, Why): A City/Ramsey County Task Force found that consolidation of the printing facilities had the potential to reduce annual operating costs and aavoid pur se of duplicate printing equipment in the near future. The City prinzing fa s the expertise to expand to accomodate Ramsey County needs. JuL � z. �g ADVANTAGES IFAPPROVED: ;a' . ' Anticipate thaC approximately $60,000 in annual print shop operating costs will be saved; avoid $85,000 in equipment replacement costs, and avoid payment of $11,000 in Minnesota Sales Tax. J ��cFi�, F � � ���' f �,� DISADVANTAGES IFAPPROVED: /�� � � L�f� �gci°; �yr,.� .lUL 1'� ���� � � DISADVANTAGES IF NOTAPPROVED: Potential for duplication of efforts and printing equipment. TOTAL AMOUNT OF TRANSAC710N $ SEe companion budget 2 .m 2 �GENUE HUDGETED (CIRCLE ONE) YES' NO FUNDING SOURCE � ��y`+� ( �%1� � ��^'�'�� ��� e ACTIVITY NUMBER �,..`'y � C� � FINANCIAL INFOPMATION� (EXPLAIN) �s=��� MEMORANDUM OF UNDERSTANDING C D� July _, 1995 Consolidation of City of Saint Paul and Ramsey County Print Shops Agreements Related to Employees An agreement among the City of Saint Paul, Ratnsey County, AFSCME Councii No. 14, AFSCME Locals 8, 1842, and 2508. As a result of consolidating Ramsey County's Central Duplicating Shop with Saint Paul's Print Shop in the Department of Planning and Economic Development, the parties agree to the following with respect to the employees associated with this consolidation. I. Wages A. The wages for employees in the classifications of Duplicating Shop Manger and Duplicating Equipment Operator (Two Color) shall be as provided in the Local ] 842 Bazgaining Agreement. B. Individuals in the County's Duplicating Equipment Operator title who transfer to the City shall become part of the City's Duplicating Equipment Operatar class. A pay variable will be used to incorporate the current salazy of the transfened employee(s) so that the individual(s) receive the same bi-weekly salary as before the transfer. C. Once transferred into the City, employees shall be eligible for step increases based on their combined length of service as City and County employees. Transferred employees shall also be eligible for cost of living increases that would be negotiated through the collective bazgaining process. II. Benefits A. The transfened County employees will receive any life insurance, health insurance, ar other benefits negotiated far the bargaining unit. B. Accrued vacation time will transfer up to the City's limit of 120 hours. The County will pay the employee far amounts accumulated beyond that at the time of the transfer. C. Transferred employees will earn vacation in accordance with the appropriate City Union Bazgaining agreement. "Yeazs of Service" will be determined by combining City and CounTy service. 9� �a�8' D. The County will also pay any transferred employees for other accumulated paid time, such as comp time at the time of the transfer. E. Unused floating holidays will be transfened to the City. F. If the County employee is eligible for severance pay at the time of transfer to the City, the employee may choose between the following: i) The County will pay severance pay at the time of transfer earned rate. No sick leave wouid transfer to the City, but the employee would earn sick leave at the rate applicable for the yeazs of service being transferred. Employees who choose this option would then begin earniug severance pay in accordance with the appropriate City Bazgaining Agreement and, if eligible under the terms of that agreement on the length of City service, would receive appropriate severance pay. 2) Employee may transfer over a11 sick leave earned with the County. No severance pay would be provided by the County at the time of transfer. Severance pay following transfer to the City would be in accordance with the appropriate City/Union Bargaining Agreement and be based on combined City and County service. G. Retiree health benefits will be auailable as provided in the appropriate City/Union Bargaining Agreement. Eligibility and CiTy contributions will be based on combined City and County Service. III. Tes6ng/Promotion Rights A. Transferred County employees shall obtain City promotion rights on the effective date of this transfer. No promotion exams nor appointments to Print Shop tiUes shall be made prior to the effective date of this consolidation. B. County employees who transfer to the City will be eligible to use combined City and County years of service for additional points as provided by City rules in applicable exams. C. Employees will be eligible for Veterans Preference in accordance with State law. IV. Layoff/Seniority A. In light of the current circumstances, for a twelve month (12) transition period following the effective date of the merger, the City agrees that no employee will be laid off from the Duplicating Equipment Operator in the consolidated City print shop. `a � _ �� B. At the end of the rivelve month transition period, the classification seniority for a11 employees within each bazgaining unit sha11 be combined. A single seniority list for each classification shalt be established based on combining City and CounTy experience an the classification. It is understood the City title, Duplicating Equipment Operator, and the CounTy title, Duplicating Equipment Operator Layout and Design are equivalent titles and time served in either will be counted when establishing a Duplicating Equipment Operator Seniority list. V. Probation A. The City agrees to waive the requirement of a probationary period. VI. Effective Date A. The proposed effective date for the transfer is the start of the first pay period after the consolidation proposal is agreed to by the County and the City (i.e. resolutions are adopted by the County Boazd and then the City Council and signed by the Mayor. VIL County Employees Who Do Not Transfer A. The Clerk IV assigned to Ramsey County Central Duplicating will be offered a comparable posirion with the County. B. If there aze unresolved issues related to a County employee's ability to elect to remain a County employee rather than transfex to the City at the time the consolidation receives final approval, nothing in this agreement shall prohibit the parties from attempting to resolve the disagreement through the normal gzievance procedure provided for in the relevant bazgaining unit agreement, nor shall the signing of this Agreement be construed as a waiving of the rights of any of the parties to resolve such disagreements through established grievance procedures. IX. Precedent A. It is agreed by all parties that the decisions specified here apply to this specific City of Saint Paul and Ramsey County consolidation only and that they do not establish a precedent for any future similar undertaking. 9.�-�a� Signatures On behalf of the bazgainiug units: AFSCME Council 14, AFSCME Local 2508, President AFSCME Local 2508, Business Agent AFSCME Local 8, President AFSCME Local 8, Business Agent AFSCME Local 1842, President AFSCME Local 1842, Business Agent On behalf of Kamsey County: County Manager Assistant County Attorney John Johnson On behalf of the City of Saint Paul: Mayor Assistant City Attorney Director of Finance and Management Services Mary Kearney � � S _��-� ..� Report and Recommendations of the Saint PauURamsey Print Shop Task County Force January 1995 c�s_g Table of Contents se�hon Executive 5uminary Section I: Background • Project Initiation • Study Process Section IL• Findings • Printing Expenditures • The Internal Print Shops • Issues • Restructuring Printing Services • Options For Restructuring Section III: Recommendations List of Tables • Table 1: Saint Paul and Ramsey County Department Printing Expenditures • Table 2: Comparison of 1995 Proposed Print Shop Costs • Table 3: Comparison of Costs Per Impression • Table 4: Projected Equipment Replacement Costs List of Graphs • Crraph i: 1993 City Sources of Printing Services • Graph 2: 1993 Counry Sources of Printing Services • Graph 3: 1994 Projected Sources of PED Print Shop Revenues • Graph 4: 1993 Actual Sources of RC Duplicaring Revenues Page 3 5 7 23 � �s_� Executive Summary During the smnmer of 1994 a special CiTy of Saint Paul/Ramsey Counry task force was convened to look at the merits of consolidating the four printing facilities operated by the two governments. Task Force members looked at five different approaches, anciuding a status quo option, three options for partial consolidation, and rivo options for full consolidation of the printing services. Service delivery issues were examined as well as short and long term cost impacts. At the conclusion of the study process, the group determined that benefits would accrue to both governments if some restructuring of the printing functions was implemented as quickly as possible. Savings It is estimated that cost savings for the two governments will be created in three areas from these changes: • Annual print shop operating costs are expected to be reduced by approximately $60,000; • Equipment replacement costs will be reduced by approximately $88,000 over the next two yeazs; • City and Ramsey County department staff will save approxnnately $11,000 each year in Minnesota Sales Tax. These savings will be achieved through more efficient use of staff and equipment, savings on facilities and operating costs, and a likely reduction of one staff position. Key Recommendations 1. A partial consolidafion should be implemented as quickly as possible during 1995 to take maximum advantage of efficiencies and cost savings. This consolidation should include the PED Print Shop, Ramsey County Central Duplicating, and the Saint Paul Police Department Print Shop. The new function should be under the jurisdiction of the City of Saint Paul within the Department of Planning and Economic Development for the present. 2. The shop operated by CommuniTy Human Services should remain in a status quo mode, except that a series of internal nnprovements should be initiated to improve coordination and to more cleazly identify the costs of operating the internal shop. Staff in the shop should collaborate in a number of azeas with the new consolidated facility. The issue of consolidating this shop with the new facility should be revisited at the end of 1995, after the improvements are implemented. 3. The new facility should be located in the Ramsey County Government Center West Building to capture savings in facilities and operating costs. c �S_�a 4. The new consolidated facility should be renamed to reflect the fact that it will be an internal service to both governments. This will allow the City and County to take advantage of an exemption from the Mumesota Sales Tax that eacists for internal services. 5. Two committees should be established, a standing City/County Printing Services Advisory Committee and a short-term technical committee to oversee the restruchuing and automation of the billing system. 6. The Task Force did not address any employee issues (i.e. senioriry, compensation, layoffs) that aze likely to be created by the shift of staff from one government to another. An appropriate group of staff should be designated to begin working on these issues as soon as possible. 7. To achieve the maximum cost savings and other benefits during 1995 the City and County adopt the goal of implementing these recommendations within two months. 0 �'S -���' Section I. Background Project Initiation In eazly summer 1994, the Saint Paul/Ramsey County Joint Purchasing Office was asked by a representative of the Mayor's Office and a Ramsey County Commissioner to investigate the in- house printing services operated by the two governments. Facilities to be included in the analysis were the lazge Print Shop managed by the City's Aepartment of Plauuing and Economic Development, Ramsey County's Central Duplicaring Shop managed by the Department of Information Services, the small shop operated by the Saint Paul Police Department, and the small shop managed by the County's Deparhnent of Community Human Services. A key question from both governments was whether any savings or other benefits could be obtained if the existing printing facilities were consolidated into a single operation. In response to this request, the Purchasing Systems Manager convened a task force of individuals who were knowledgeable about the existing prinUng operations or who had other relevant expertise to contribute to the discussion. Members were as follows: Convener Linda J. Camp, Joint Purchasing Office, Deparhnent of Finance and Management Services Ramse County Representatives Jan Geisen, Central Duplicating, Deparhnent of Informarion Services Don Jones, Communit7 Human Services Department Jim Kavaloski, Department of Information Services Barbaza Swan, County Attorney's Office Jim Theurer, County Manager's Office Vern Wehlage, Budget and Accounting Office Citv of Saint Paul Renresentatives Thomas Boraas, City Council Reseazch Don Brau, Print ShoplDepartment of Planning and Economic Development Dianne Davis, Joint Purchasing Office, Department of Finance and Management Services Carol Otto, Department of Planning and Economic Development Steve Roscoe, Saint Paul Police Department Al Singer, Saint Paul Police Department � s-�a� Study Process The full task force met three times between July and September to discuss the request and to do some background work. Steps at this point included a review of e�sting services and customers for each facility; a review of facilities, equipment, and staffing at each location; and, identification of some of the issues related to a status quo scenario versus those related to a consolidation. In addirion, the group brainstormed various possibilities foz improving printing services. From these discussions, several possible options emerged for furdier discussion including; a) incremental improvements to the status quo; b) consolidarion of some, but not all facilities; and, c) consolidation of a11 facilities. At the conclusion of the third group meeting, it was agreed that a subcommittee would do more detailed analysis of the options and the costs and benefits associated with each and bring a draft report back for consideration by the full task force. This subcommittee met two times to further develop the options and evaluate cost and service issues. Individual members of the subcommittee prepared cost information and did site visits to each of the printing operations. The full committee was reconvened in early December to review the work of the subcommittee and discuss the findings. What follows is a detailed analysis of the City and County printing services and the Task Force recommendations for the future. 6 �S_��-� Printing Expenditures Section II: Findings Both the City of Saint Paul and Ramsey County aze "information intensive" organizations. To carry out their public service missions, each routinely creates, collects, processes, and disseminates a wide range of informafion in a variety of forms. While there is an increasing emphasis on electronic options, sigzuficant resources aze still expended for printed materials. The table below provides a three-year overview of acival and anricipated printed expenses for the two governments. The numbers aze actual or proposed departmental expenditures for printing services under City budget codes 0241 and 0242 and Ramsey County budget code 020501. Actual or proposed costs for operating the print shops aze not factored in nor aze departmental copier purchases. Tabie l. Saint P�pI �nd Ramse�' �ounty #l�parfinent Privtin� Expenditnres Enti �aint Pau1 neparkllents Ramsey County I�eparqtuents Tt�t�ls 1943 1494* Aatual To Date $627 $332,123 $82fi,476 $6Ub,�40 $1,453,947 $138,SG3 19�5 Tatal Pr4vosed E�endiYures $631,U$b $1,59p,640 $686,371 $2,119,�89 $2,3�7,�157 $3,71�,�27 City eXpendi�urea thraugft Novembcr 199A; CounE}= expe�ditutes Yh1'augh Ockober 1994. CiTy and County departments obtain printing services in several different ways. By faz, the largest share of services are obtained from one of the four in-house print shops. In addition, the Joint Purchasing Office bids out vazious services that cannot be obtained in-house. Deparhnents also make use of a master contract for forms management services and purchase printing under the authority of City and County small purchase (Pick up Order) policies. (See Graphs 1 and 2 for distribution of sources during 1993.) �_��-�' 1. 1993 City Sources of Printing Services 1993 City Sources of Printing Services Intemal Print Shop 55% Up Orders 7 0% ontract 10% Graph 2. 1993 County Sources of Printing Services 1993 County Sources of Printing Services Intemal Print Shop 61% Up Orders 7% ntract Formal Bids 25% Formal Bids 18% 7 4% �s_�a-� The Intemal Print Shops At one time, several City of Saint Paul departments operated their own print shops, including the Saint Paul Pubiic Library, the Division of Pubiic Health, the Personnel Office, and the Department of Plamuug and Economic Development (PED). By 1985, a11 had been phased out except the PED Shop which then began providing services more broadly within the City, and eventually to County departments as well. Ramsey County Central duplicating was originally operated as a shazed City/Ramsey County service under the auspices of a"City/County Services" unit. This was jointly funded by the two governments. Although the history is not entirely clear, the shazed printing operation was eventually subsumed under the Ramsey CounTy Central Services Deparhnent that was created in late 1974 or eazly 1975. Statistical records from 1979 show that 41% of this print shop's business came from the City. However, business from the City steadily declined to 24.7% in 1990 when the PED Print Shop purchased a high speed duplicator. City use of the central County shop has continued to decline to only 11 % in 1993. PED Print Shoo The lazgest internal facility, in terms of volume handled, and with the most sophisticated equipment, is the Print Shop under the jurisdiction of the City's Department of Planning and Economic Development. Capabilities include 4-color and multi-colar printing, layout and design of materiais, collaUng, printing a11 size booklets, type setting, customer and standard folders, and high speed duplicating. The shop is located on the second floor of the Lowry Square Building. It is staffed as follows: 1 Duplicating Shop Manager, 2 Duplicating Equipment Operators, and 1 Duplicating Equipment Operator/2-Color. This printing facility is operated as an enterprise fund. That is, the operation must generate revenues sufficient to cover costs. (No other City budgets subsidize this activity.) Services are billed at actual cost plus a 5% markup, which is set aside to finance future equipment replacement. It is estimated that, in 1994, 74% of the revenues will come from City depariments. Ramsey County will generate approximately 26% of 1994 PED Print Shop total revenues. � �S -ba-� Graph 3. 1994 Projected Sources of PED Print Shop Revenues 1994 Projected Sources of PED Print Shop Revenues Ramsey (.�����y 26% °_D �S% Ramsey Countv Duplicating Ramsey County also operates a large central duplicating facility, transferred from Property Management to the Departrnent of Information Services in February 1994. It also provides a range of printing services, though it is particularly well equipped to handle high speed duplicating. Color and offset capabilities are more limited than the PED shop. The County facility is located in the West Building with good storage capabilities and access to a loading dock. Current staff include: 1 Clerk IV, and 2 Duplicating Equipment Operators/Layout. Like the PED shop, this faciIity recovers its costs by biIIing for services provided. In 1993, 88% of total revenue was generated by Ramsey County departments, I 1% by City departments and, 1% from other sources. 10 Ciry of Saint Paul 49% �S_ �2�' Graph 4. 1993 Actual Sources of RC Duplicating Revenues 1993 Actual Sources of RC Duplicating Revenues Ramsey Countv 88% Other 1% 11% De�artment Facilities The City and County each have an additional small printing facility operated primarily for the benefit of a single department. On the City side, the Police Deparhnent has its own shop located in the Public Safety Building on East l lth Street. IY is equipped with a Kodak 97 copier and one Multi offset press, along with a small number of pieces of support equipment. It is staffed by one Duplicating Equipment Operator. Jobs produced in a typical year include forms, envelopes, booklets, newsletters, and award certificates. This actzvity is noY operated as a revenue cenTer, but rather is supported by the General Fund. Ramsey County's Department of Community Human Services also has its own in-house print shop located in the Ramsey County Government Center East Build'ang. Users of this facility include functional azeas such as administration, social services, and personnel, along with the County Nursing Home and Lake Owasso. There are two Duplicating Equipment Operator/Layout positions that work under the direction of a supervisor within the Support Services sectiott. All three individual handle other non-printing related duties as well. The equipment in this loca6on, a new high speed duplicator and two relatively old Multilith offset presses which will need to be replaced in the near future. Like the Police shop, this facility also has a limited range of support eguipment, such as a plate maker and drill punch. 11 �5-��-� `Pab2e 2. Compariso� of i995-Proposed-Prinf �hop Cosfs �ateevrv PED Shou IZ� S�on . Pc�Fice Shon Hum. �erv. Totals Persannel $173,QZ2 $116,463 $ 33,fl97 $ 74,3$3 $413,96'7 Ogeratiug $ I $ 3,b54 __ $ 45t} $ 3b4 $ 6,?D4 �upport Faciilities $ 2Q,flOfl $ i�,U29 $ * � * $ 33,fl2R Equipment &$ 61,2Z� $ 76,t758 $ 2,�99 $ 18,300 �I58,38� M�intenanee Supplies $117,728 $ 73,D25 $ �a,QQ6 $ S�,OOt� �+2b�,fi53 t�ther $ bU,586 $ 1,8Q� $ 4,33� $ 0 �+ 6�i,825 Totals $&46,3�9 $���,(331 � 66,685 $1�2 $943,I�8 �` Allo�at�an af ac7ual facilities cosfs was ncat availabl�_ The proposed 1995 budgets for the four shops appear in Table 2. Issues As part of the research and analysis process, Task Force members identified a number of issues related to the fuhxre direcfion of printing services for the City and Ramsey County. Some of these issues will exist whether or not a resttucturing of services takes place. Efficiencies Efficiencies in printing services are directly linked to the type of equipment available and the management of individual printing jobs. For example, if jobs are properly planned, more work can be run in a day than if the machine is idle for some period of time, thus resulting in more cost effective use of equipment and staff. 12 �S_��� 3'able 3. Comparison nf Costs Per Impressioa En#it 1993 Actuat Fmpressions PED Siiog 23,506,bQQ Police - - RG Dup_ Hum.Serv. T'�D Shop Police l�C Dup- T�Twn. Serv Z,i oa,000 7;382,b35 4,84�,OUQ 1993 Fropnsed 29,1Q(�f�OQ 2,3(Yi�,U(Jb 4,2Q�,i�flQ S,�t00,U4U �943 Aatnal Costs $393,I9U $ 62,736 $28S $126,aflfl 1995 1'rc>posad P $4�t4 399 $ 6&,b8� $?84,Q39 $152,b�43 1493 Gosftlsnpressian $_fll7perimpressi�n $.U2�3per ungzessian $.039per impressinn $.fl26per�nprassian t9X5�asfsttmpre�sivn $.015 per impre,ssiern $.U24perimpression $.fl3 per impression $A2R per impzessian One way to look at the overall efficiency of an operation is to relate annual shop operating costs to the number of "impressions" (an impression is one pass of one page through a printing machine) produced in a year. Task Force members used this approach to assess the efficiency of the four print shops. By this measure, the PED Print Shop is the most efficient, with an actual cost per impression during 1993 of $.017 and an estimated cost per impression for 1995 of $.015 (see Table 3). Service Deliverv By faz, the biggest issue generated by any kind of restructuring of printing services is quality of services. The two internal department prinring facilities exist primarily because the users want to be able to feel confident that quality printed materials will be available when needed. This concern exists for users of the two central print shops as well. A quesrion raised when examining various options for printing was whether customer service would remain the same or be improved. A lower quality of service would not be acceptable. 13 �[ S 8a-� Under the current structure, City and County departments have several printing oprions to choose from. If one of the two main shops cannot meet a deadline, the other shop may be able to accommodate the request. The multiple facilities provide a measure of back up as well as competirion. If a consolidation were to take place, these elements would be lacking intemally, though competition and backup wouid be available through private printing sources. One consolidarion strategy explored was the idea of combining all of the required printing equipment into a single location at the present site of RC Duplicating in the Ramsey County Government Center West Building. Advantages to this approach include: the availability of storage space, easy access to loading docks for bulk paper deliveries and job pickups, significant savings in facilities costs, and the possibility of making an array of printing services available in one location. Questions were raised about whether, with a single, consolidated faciliTy, it would be possible to easily and cost effecUvely drop off and retrieve printing jobs. Accessibility is an important service issue for all City and County prinfing customers. Some members of the task force felt it was possible that new "hidden" costs could be created in transporting documents under a relocation of faciliries. Paper Costs Paper costs have been rising and aze likely to continue to spiral higher during the next year. Some of the current paper contracts established by the Joint Purchasing Office do not appear to meet the needs of the various print shops. These contracts need to be restruchued to take maximum advantage of opportunities such as bulk deliveries and purchasing directly from the manufacturer. While such steps cannot prevent a price increase, they can help stabilize costs. Equipment A number of pieces of equipment will need to be replaced within the next 3 years. This includes both printing presses and the smaller support items, such as drilling equipment. As printing requirements grow more sophisticated, so will the need for more sophisticated equipment. Task Force members raised the question of whether it made sense for each location to be creating the same kinds of internal capabilities. Under a consolidated environment, fewer pieces of more efficient equipment would need to be purchased. Over a period of time, this would result in savings in capital and maintenance costs. Table 4 provides estimates of future equipment replacement costs if the four print shops continue to operate independently from one another. Another tangential benefit of consolidating equipment is in the area of plate making; the cost involved with duplicate equipment or sending out for negatives would be greaUy reduced. 14 �� - 8 2-� Ta61e 4. Projecteil Equipment Beptaeemeat Costs� � _ _ �fems - - - Amauat _ CI� Shop New I'ress - $ 23,0(TO Plake h'��er $ 9d1Q� Sutitotai � 32�U4U Palice Shap I�C �entral Iluplicafing Crrai�d TofaI Plate IvIaker Cuitator Subtatat New Press Plate �ker Baoklrx Maker Collatw' Fotder Su�sttit�l '� EsEimated reptaceFrc�ts �to oecm� in 1996 ar 199'F Billine Services $ 4,4Q0 $ 4.UOt� $ 13,U40 $ 53,Di1fl $ } tfOD $ S,54Q � b,5D0 $0� $ 7�c,&t10 $1 I�,846 The billing function is currently quite cumbersome within the two central printing shops and would become more so under any kind of consolidation if no changes were made. There is a need to look at options for automating billing tasks and integrating the system with City and County financial systems. Electronic Options The availability of more and more computer technology within both local governments has strong implications for the future of printing services. As more and more deparhnent staff rely on electronic mail and document transmission capabilities, the need for printing certain kinds of paper documents will be reduced. Both Saint Paul and Ramsey County are looking carefully at how services are delivered. As processes are re-engineered, it is typical for forms and other kinds of paper work to be eliminated or greatiy reduced. Printing equipment itself is being revolutionized by computerization. Enhancements to capabilities will provide the opportunity for greater efficiencies that will very likely have an impact on the scope and costs of services in the future. 15 �S - �2-� Finally, the availability of electronic document transmission within City and County operations will make it easier for customers to transmit requests directly to a printing facility. This has the potential to help resolve some of the pickup and delivery issues associated with any kind of restruchiring. User Trainine There was universal agreement among Task Force members that users of printing services very often do not fully understaud the printing op6ons that aze available and how to select the most cost effective option for a particulaz need. Some also may not understand how to appropriately plan for printing services to take advantage of opportunities to save time and money. In the past, the print shops have played a limited role in educating customers about various options. All agreed that any improvements in future printing services should include having print shop staff take a more proactive role with customers. Possibilities identified here included offering periodic training sessions and providing some kind of manual on available printing services. Sales Tax Under Minnesota law governments who purchase printing services from another governmental entity are required to pay the 6.5% State sales taY to the State on those services just as they would pay tax on services received from a private vendor. However, printing services provided internally are exempt from this requirement. Consequently, Ramsey County Central Duplicating is currently required to collect the sales tax from City customers and the PED shop is required to collect the tas from County customers. It is estimated that in 1994 the total amount of sales tax collected from deparhnents by the two main print shops is approximately $ 10,700. During the course of the study process, the State Department of Revenue was contacted to determine the impact of consolidation on sales taac. Information provided indicated that if the consolidated fund was structured as an internal service to both governments, then departments would not be required to pay the sales tax. The estimated annual cost would then be eliminated. Communitv Human Services Snecial Issues A nuxnber of special issues surfaced with respect to the Community Human Services (CHS) prinfing function. Services provided by the Deparnnent are financed by a range of funding sources, including vazious state and federal grants. Likewise, an array of federal, state, and local requirements greaUy impact how services aze delivered, including the types and numbers of forms and documents needed. Unlike the other printing functions analyzed, the CHS print shop is not budgeted as an independent activity. Rather, costs associated with providing this service aze typically merged with costs for other support services for the departrnent. In addition, staff responsibilities are sunilazly merged. That is, the two print shop staff also provide other support services and report to an individual who handles other non-printing related responsibilities. For a11 of these reasons, 16 � _ ��-� it is much more difficult to sepazate out the printing funcrion and assess any benefits to be gained through a merger or restructuring of printing services. Some internal ground work is needed before a sound analysis is possible. Orgauizational Placement The Task Force briefly discussed the placement of a consolidated print shop within the orgauizational structure of the City. Some individuals raised questions about whether it made sense to continue operating a prin6ng function within a department whose mission revolves azound development and planning issues. There was consensus that the print shop funcfion had been working well in this location, and that it would make sense to keep a consolidated shop within PED during the transition. The issue could be revisited later if there was a need to do so. Restructuring Printing Services Overall, Task Force members felt there were a number of ways that City and County printing services could be improved. Such things as restructuring the paper contract, providing customer training, and taking advantage of electronic technologies, should happen under any restructuring scenazio. Severai options for restructuring through combining the print shops were developed and compared. Advantages and disadvantages associated with any of the consolidations are as follows: AdvantaEes 1. Fewer points of contact and accountability for prinfing services for customers 2. More efficient use of equipment 3. Avoids costly duplication of equipment • lazge presses • support items such as drilling and binding equipment • negatives/plate making 4. More intemal printing services under the jurisdiction of an experienced printing manager 5. Potential savings in areas of • faciliries • materials • staff • operating support • equipment • sales ta�c paid by departments 17 �S_�a� 6. More efficient use of available staff • flexibility • improved backup capabilities (vacations, sick leave) • cross trauring 7. Consolidated billing • customer impact • cost and time savings 8. Uniform internal billing rates 9. Support exists within both govemments for restructuring services 10. Better able to keep up with technological changes Disadvantaees 1. Creates questions about whether same level and cost of service will be provided 2. Accessibility to a central facility may be an issue for some customers 3. Potential layoff of staff 4. Staff issues (compensation, seniority, etc.) would need to be worked out with unions under a consolidation 5. Less internal competition 6. No internal back up services 7. Billing rate stability unlaiown during transition period 8. Amount of sauings most likely will be small during initial years of consolidation 9. Adjustment for print shop staff and customers Options For Restructuring A suminary of each alternative identified follows. It is important to note several items related to the costs used. fF.3 �S_�a� co� As previously stated, the PED Shop and the RC Central Duplicating shop cover their costs by chazging customers for services. All costs of operations, including facilities, aze cleariy identified in their annual budgets. This is not true for the two internal shops. In the case of the Police Shop, the General Fund Activity inciudes many of the costs for operations, but exclude such things as fringe benefits, space, and electricity. It also includes costs for paper needed to run the deparhnent copiers. Print shop costs for Community Human Services (CHS) aze not separately budgeted, but rather are aggregated with other internal service costs. For purposes of the costs compazisons, every effort was made to identify all of the costs actually associated with each operation, whether it appeazed directly in a print shop budget or not. In some azeas, such as facility costs for the two internal shops, it was difficult to pull out specific amounts, so the best information available was used. There are some other "soft costs" associated with printing services that were discussed by Task Force members, but not fully specified here. These include the time department staff spend prepuing documents to be printed, distributing prin6ng items, and transmitting copies of items to be printed. Because of the difficulty in producing accurate assessments, none of these kinds of soft costs are included in the analysis. (Refer to Table 4 for detail on equipment replacement costs.) Ontion 1. Status OuolIncremental Imnrovements Under this option, all print shops would continue as they have in the past, with the following improvements: • The master contract for paper would be restructured to provide greater benefit to all shops. • Representatives of the four shops would interact more frequently and share information about equipment, customer issues, and other related items. • The shops would sponsor training to help customers make better printing decisions and better understand procedures for placing work requests. • Improvements would be made in the billing systems. Though there would be greater coordination, each shop would continue to purchase presses and supporting equipment as needed, creating the likelihood of duplication of equipment. Limited cost savings are envisioned with this option; in £act, costs are likely to increase because of the need for all shops to replace equipment. 19 qs-�a � Estimated 1995 City/County Print Shop Costs: $ 943,158 Estimated 1996/97 Equipment Replacement Costs: $ 119,800 Estimated Revenue From Surplus Equipment: $ 0 Total Projected Costs: $1,062,958 Estimated Cost Per Impression: Remains the same as in Table 3 Estimated Sales Tax Savings: 0 Ontion 2. Partial Consolidation Three options for partial consolidations were evaluated: a) Consolidation of the two larger shops b) Consolidation of PED, RC Duplicating, Police with Collaboration with CHS c) Consolidation of PED, RC Duplicating, CHS with Collaboration with Police 2a. Consolidation of the two laz eg r shops only Here the PED Print Shop would consolidate with Ramsey County Central Duplicating. The two department shops would continue in their present mode, though there would be greater coordination with the consolidated shop. Improvements would include restructuring of the paper contract, improving and combining the billing function, and customer training. The combined facility would be in the location of the present RC Duplicating facility in RC Government Center West. Under this scenazio, cost savings are possible because of the co-location of the two facilities (overall reduction in rent and some administrative costs), savings on equipment purchases, and potential sauings because one posifion would be eliminated. Some equipment could be sold as surplus. Customers would not have to pay the State sales tas. Estimated 1995 City/County Print Shop Costs: $ 893,876 Estimated 1996/97 Equipment Replacement Costs: $ 45,000 Estimated Revenue From Surplus Equipment: $ 9 225 Total Projected Costs: $ 929,651 Estimated Cost Per Impression For Consolidated Units: $.023 Estimated Sales Tax Savings: $10,700 20 - ,,� 2b. Consolidation of PEDlRC Durolicatin�(Police, Collaboration with CHS This option combines the PED Shop, the Police Shop, and Ramsey County Central Duplicating into one operation. All of the changes and areas for savings identified in 2a above aze also applicable. Additional benefits are provided because of even greater efficiencies in equipment use and avoidance of even more equipment replacement costs in the future. Many pieces of support equipment could be sold as surplus. Though the Community Human Services (CHS) Print Shop would not be formally consolidated here, a strong partnership would be created. CHS would work to make some improvements in internal operations and send appropriate jobs to the consolidated shop rather than attempting to do them in-house. Staff would consult with manager of the consolidated facility on equipment before new purchases were made. The subject of consolidating with the other shops would be revisited at the end of 1995. Estimated 1995 City/County Print Shop Costs: $ 885,163 Estimated 1996/97 Equipment Replacement Costs: $ 32,000 Estimated Revenues From Surplus Equipment: $ 1( 5•345� Total Projected Costs: $ 901,818 Estimated Cost Per Impression For Consolidated Units: $.021 Estimated Sales Tax Savings: $10,700 2a Consolidation of PED/RC Durolicatine, CHS, Collaboration with Police This option is similaz to 2b, but consolidates the CHS with the two larger shops and leaves the Police Shop in a status quo mode. It is estimated because of the unique needs of CHS customers, it would not be possible to completely eliminate the printing operation in the RC Government Center East Building. It would be necessary to retain at least one machine and one staff person. Estimated 1995 City/County Print Shop Costs: $ 857,679 Estimated 1996/97 Equipment Replacement Costs: $ 13,000 Estimated Revenues From Surplus Equipment: $ 1L3•asol Total Projected Costs: $ 856 829 � Estimated Cost Per Impression For Consolidated Units: $.020 Estimated Sales Tag Savings: $10,700 21 �s-�a� Option 3. Full Consolidation Under this option all shops would come under the jurisdiction of a single printing manager. In oprion � satellite facilities are left at the Police Department and RC Government Center East, though there is a single point of accountability and management. Estimated 1995 City/County Print Shop Costs: $ 857,679 Estimated 1996/97 Equipment Replacement Costs: $ 0 Estimated Revenues From Surplus Equipment: $(9.2251 Total Projected Costs: $ 848,454 Estimated Cost Per Impression For Consolidated Units: $.019 Estimated Sales Tax Savings: $10,700 Under option 3b a satellite facility would be left at RC Government Center East, but not at the Police Department. There would be a single point of management and accountability. Estimated 1995 City/County Print Shop Costs: $ 847,166 Estimated 1996/97 Equipment Replacement Costs: $ 23,000 Estimated Revenues From Surplus Equipment: $ 19 270 Total Projected Costs: $ 859,896 Estimated Cost Per Impression For Consolidated Units: $.018 Estimated Sales Tax Savings: $10,700 � �-,�2 � Section III: Recommendations Based on a review of the service, fmancial, and other issues, Task Force members feel that the City of Saint Paul and Ramsey County printing functions be resriuctured and not remain in the present configuration. Consensus was reached that the City and Ramsey County should begin implementing option 2b--Consolidation of PED, RC Central Duplicating, Police--as quickly as possible to achieve the maximum amount of benefit during 1995. A detailed summary of the recommendations are as follows. Consolidation Recommendations 1. Consolidate the PED Print Shop, Ramsey County Central Duplicating, and the Police Print Shop into a single facility, under the direction of the existing Print Shop Manager position and under the jurisdiction of the City of Saint Paul in the Department of Planning and Economic Development.* (This would mean a shift of Ramsey County Equipment Operators to the City and the likely layoff of a RC Clerk Typist IV from the duplicating operation.) 2. Relocate the PED and Police Deparhnent equipment and staff with the RC Central Duplicating staff and equipment at the Ramsey County Government Center West Building. A small amount of renovation and expansion space will be needed. 3. Sell or redistribute internally all dupiicate and unneeded equipment that results from the relocation following standazd City and County surplus disposal procedures. Any revenues generated should go to the govemmental unit that originaily purchased the equipment. 4. Allow the CHS Print Shop facility to remain within the department, but begin implementing the following changes: • Improve forms(records management through consolidating client forms, eliminating obsolete forxns, and implementing electronic alternatives; • Better coordination of printing within CHS; • Maatimize use of the new central duplicating faciliry to assure that most cost effective options aze chosen; • Collaborate with the new central duplicating facility on operating problems, assessing customer needs, print shop safety issues, reshucturing maintenance agreements, etc. • Maximize use of communications technology to eliminate the need for printed forms, communicate with customers of the CHS shop and the new centrai duplicating shop; • Sepazate out and document CHS print shop operating costs from the other support services to make it easier to assess efficiencies and the need for further consolidation. 5. Including the CH5 shop in the new consolidated shop should be revisited at the end of 1995 after the above improvements aze made. 23 � a� 6. Rename the new central duplicating facility to reflect the fact that it is an internal service to both governments, though under the jurisdiction of the City of Saint Paul. This will atlow both govemments to take advantage of an exemprion from the 6.5% Mizuiesota Sales Tax. 7. Immediately establish a smail technical advisory comsnittee to begin restructuring the billing system. It is recommended that members include representatives from the City Accounting Division, Ramsey County Budget and Accounting, and appropriate computer staff. 8. Immediately establish a standing Printing Services Advisory Committee to help oversee the transition and advise the new print shop staff on customer service and other issues on an ongoing basis. The committee should be structured as follows: • 1 representarive of the Saint Paul Police Department • 1 representative from the CHS Print Shop • The current manager of the PED Print Shop • An appropriate buyer from the Joint Purchasing Office • 2 City department printing services customers • 2 Ramsey County department printing services customers • The current manager of RC Central Duplicating • 1 representative of Ramsey County Information Services (computer expertise) • 1 representative of Saint PauPs Information Services Division (computer expertise) 9. The new Advisory Committee should immediately conduct a survey of printing services customers and use this information to help guide the restructuring and to develop future information and outreach activities. 10. The manager of the new consolidated facility should continue to work with staff in the Saint Paul Police Department to structure services to address some of the special needs of SPPD that will be created by the shift of facilities and staffing. This should include assistance with ordering and inventorying of printed materials, along with pick up and delivery of printed items. 11. As soon as possible, begin implementing the other improvements, such as restructuring the paper contract and offering customer training. * Note: Task Force members felt that the consolidated facility could be managed equally well by either the City or Ramsey County. The final recommendation was to consolidate under City jurisdiction because there was a slight advantage created by the fact that the largest shop with the newest equipment was on the City side, along with the printing manager position. 24