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Mission The mission of is to serve our community by attracting and retaining a highly qualified workforce and creating a work environment for them that supports their commitment to public service, reflects the diversity of the community, and minimizes risk to the human and fiscal resources of the City. The Department monitors and advises department managers and supervisors on the full array of human resources issues including discipline, conflict resolution, contract and policy interpretation, classification and compensation, grievances, harassment and discrimination complaints, training, and most recently layoffs and job displacement. Additionally the Department is responsible for negotiating labor contracts with 12 bargaining units; administers current contracts; participates in ongoing labor/management committees and meet and confer issues; supports departments in conflict analysis and resolution, restructuring, customer service, and team development; encourages constructive communication and supports change management; and supports other organization development efforts. plans, conducts and oversees recruitment, hiring and position transitions of qualified staff that reflect the diversity in our community. The Department works to provide a healthy environment to retain and develop this staff through diverse benefit plans, employee training and development programs, and excellent employee relations resources including facilitation and mediation services, and also manages, in the most responsible manner possible, the complex personnel transitions occurring due to organizational downsizing and position reduction. The Department's Risk Management division reviews activities of the City and develops programs to minimize the City's exposure to risk, contain loss through proper risk management and control, provide a safe and healthful work environment for City employees, and promote safety in the services provided to City residents. This division administers the various insurance and risk control programs for employees such as employee safety, OSHA, and workers compensation, as well as the City liability and property insurance programs, and ADA compliance. - 14 -

FY 2010/11 Key Objectives General Support all City departments in dealing with the impacts of budget reductions, including assisting with organizational, department and staffing changes. Continue to seek ways to accomplish expanding workload with existing staff. Employment Services Review and seek to improve methods of meeting the staffing needs of the organization, including approaches to recruit for hard-to-fill professional, technical and management positions. Conduct classification and salary studies as necessary to meet the operational needs of the organization. Work to implement new finance/payroll/human resources software through the ARP-IFAS project with minimal disruption, maximum efficiency and responsiveness to customers. Review on-line application software for implementation of new program. Employee Relations Conduct labor negotiations in the spring of 2011 with Transit, Maintenance and Utilities Systems Operators Units, the City Attorney and Mid Management Units. Continue to negotiate a new two-tier retirement program for miscellaneous employees. Participate in on-going labor/management problem-solving committees addressing significant issues raised at negotiations. Training and Organizational Development Assist staff, departments and Council with organizational transitions and budget related changes. Design and facilitate City-wide Strategic Planning process for the next two-year cycle and assist staff and Council in engaging and working with the community to develop neighborhood oriented service delivery partnerships. Continue to offer a variety of training to create a competent, diverse and replenishing workforce. Continue ongoing refinement of the Training Program to meet the changing needs of the organization. Risk Management 4 7 Integrate benefits changes from the Federal Health Care Program. Implement new in-house HRIS with all benefits, including Employee On-Line enrollment option. Review Property Program Coverage and evaluate cost options of all potential coverages such as flood and earthquake. Oversee and coordinate departments compliance with ADA settlement with Department of Justice. Review Workers Compensation trends and injury rates to ensure cost control efforts. - 144 -

Service Indicators FY 2005/06 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 estimate Applications received 4,710 5,648 5,24 2,750 4,02 % of applications received online n/a 56% 66% 65% 82% Recruitments conducted 95 82 67 45 42 New hires 19 146 110 109 26 Retirements, resignations, reductions 104 8 79 56 11 Turn-over rate 9.7% 7.6% 7.% 4.8% n/a Labor contracts open and negotiating 4 2 1 8 10 Training sessions held 76 78 90 90 76 Job/class studies n/a n/a n/a n/a 15 Worker s compensation cases n/a n/a n/a 228 184 Worker s compensation incidents n/a n/a n/a 241 25 Liability claims n/a n/a n/a 15 119 Liability events n/a n/a n/a 278 278 FY 2009/10 Key Accomplishments General Completed the merging of the Risk Management Division into the Department, resulting in increased efficiency and staff use and a reduction in overall staffing of three FTE. Provided a variety of support for reorganization projects in the Utilities and Finance Departments. Employment Services Maintained two independent websites to provide one-stop shopping for employees and supervisors for their employment services and supervisorial needs, including benefits and policies. Coordinated and created comprehensive layoff packages for those employees losing their positions in FY 2009/10. Employee Relations Engaged in "Meet and Confer" sessions with representatives of all employee organizations regarding the impact of budget reductions and layoffs. Engaged in "Meet and Confer" with representatives of employee organizations for 10 open contracts. Benefits and Risk Management Participated in the ARP-IFAS project (human resources/finance/payroll software implementation) to ensure smooth benefit transition and implementation. - 145 -

Reviewed benefits programs with reductions in benefit costs and increase in benefit options for longterm disability, simplifying benefit structure in vision. Training and Organizational Development Reorganized and made training offerings more efficient and relevant to current circumstances in the organization. Continued improvement of the Building a Diverse Workforce training program including working with Public Safety to develop a curriculum to meet their needs. 4 Doubled staff participation in the City-wide Mentoring Program to invest in current employees and plan for succession in management positions. Increased threefold the number of cross departmental mentoring relationships. Provided leadership and facilitation for the Spirit of Innovation: A Community Leadership Summit to Create Santa Rosa's Next Strategic Plan. 4 Facilitated public meetings on a variety of issues, including downtown parking policy and meetings with Boards and Commissions impacted by budget reductions. Provided facilitation and change management services to a number of interdepartmental reorganizations, process improvement and efficiency efforts, and labor relations efforts involved in budget and staffing reductions. Coached and mediated over 100 employees. Developed a new Preventing Workplace Harassment Curriculum including a module on bullying. Developed a new Managing Change and Transition Planning series of mini trainings/work sessions, including Business Planning, Mediation for Managers, Informed Consent, and Process Improvement. Coordinated the offering of trainings conducted by other city staff such as Project Management, Budget 101 and Beyond Budget Basics. Coordinated and mediated ongoing City-wide Management/Labor Union Coalition. The coalition was formed to foster open communication between City Management and Labor Groups during budget reduction discussions. Expenditures by Fund 2007-08 2008-09 2009-10 2009-10 2010-11 Funding Source Actual Actual Estimate Budget Request General Fund $1,812,71 $1,681,859 $1,561,896 $1,642,059 $1,419,52 Risk Management Fund $20,98,166 $28,004,797 $22,089,87 $25,508,804 $24,722,12 Units 5 & 9 Stipends $0 $1,447,991 $0 $0 $0 Total $22,795,879 $1,14,647 $2,651,7 $27,150,86 $26,141,844-146 -

Expenditures by Category 2007-08 2008-09 2009-10 2009-10 2010-11 Actual Actual Estimate Budget Request Salary $1,566,870 $1,522,758 $1,44,80 $1,511,588 $1,86,266 Benefits $496,869 $441,94 $45,07 $468,267 $4,86 Serv ice and Supplies $20,56,44 $28,967,740 $21,616,67 $25,041,2 $24,17,564 Indirect Costs $195,796 $202,215 $148,151 $148,151 $148,151 Capital Outlay, Projects and Other $0 $0 $8,528 -$18,466 $0 Total $22,795,879 $1,14,647 $2,651,7 $27,150,86 $26,141,844 Major Budget Changes The FY 2010/11 budget request is down approximately $1 million from FY 2009/10. The decrease in the General Fund is primarily due to the elimination of one Organizational Development Consultant and a reduction in hours for a second Organizational Development Consultant and a Senior Administrative Assistant. Benefits are down accordingly. A variety of services and supplies were reduced department-wide as well. All of these reductions were made to combat the General Fund deficit. The Risk Management Fund is down mainly due to reductions in health insurance costs and unemployment insurance. Due to the recent rounds of position reductions, the City greatly increased our budget for unemployment last year (FY 2009/10), but the costs have not been realized, leading to a reduction this year (FY 2010/11). Expenditures by Program 2010/11 Request Risk Management 94.7% 0.6% Organization and Staff General Development 0.% Administration 2.0% Employment Services 2.4% - 147 -

Employees Historical Staffing 21.00 20.00 19.00 18.00 17.00 16.00 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Organization Chart Director (1) Employee Relations Manager (1) Administrative Secretary- Confidential (1) Employee Services / Risk Manager (1) Organizational Development & Training Specialist (0.6) Senior Administrative Assistant- Confidential (2.6 HR, 1.8 Risk Management) Analyst (4.6) Technician (1) Risk Analyst (2) Analyst (1 Limited Term) - 148 -