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Home My WebLink About0200.091o ~'. '~. . , , , \( 0<, • , . ' ,~. March 21, 1991 HONORABLE CITY COV~CIL Palo Alto, California Attention: Finance and Public Works committee This report is for information only. required. No Council action is Report ill Bz:i.f The purpose ot this report is to present to council the 7inanca Depart.ent, Budget Division's workplan for its first departmental revie.w (Public 'Works Depar'b:lent). It is being 4gendized for fUrther discussion by the Finance and Public Works committee. OVervI •• of Public Work. Departmental .eview PURPOSB: To evaluate operational performance in order to: 1) 2) DID PJlOD!JCl'&: 1) CMR:200:91 realize operation~l efficiencies; and enhance service and effectiveness by ~akin9 recom mendations for op.rAtional improvemeI'l_!"-s. rhe 1992-94 Public works operatinq budget submittal 'Will include recommendations that translate into dollar saving'1i and/or service level improvements within current spending levels. o " , , 2) Budget and Public Works staff yill ~ork jointly on • presentation ot the Public Works budget to Coun cil in a :aa.nner which clarities proqraas and the line items which support those proqrams~ 3) A set ot -.eaningful performance measures wi 11 be devised with the cooperation of PUblic Works ~hich will link performance to the budget for ongoing aonlterin9~ These performance me3sures ~ill be an integr~l part of the budqet presentation to Coun cil. o A link between the budqet.. performance measures, proqraas, ~nd service delivery o A more thorough analysis of ~ large department o A model for future reviews o Potential budget &4ving& &BS~IOJI1I : SCDPI!: CHR:200:91 The ·off year ft time period creates II window of oppor tunity to review programs in more depth than during the noraal budget procesa. The city gains from a periodic aanaqeaent review ot its program expenditures. To review key areas of the General Fund Public Works budi;et. Budge pr09rams to be reviewed include: o Buildinq CUstodial and Building Maintenance o street Haintenance o Traffic Control ~intenance o sidewalk Maintenance o Tree Maintenance o Garaqe Operations Line items will be exaDined according to materiality and in the context ot program reviewa. For example. office supplies within Equipment Manage.ent are not a material axpense, while gasoline expenditures and auto parts are both material and tied into key programs being reviewed~ Note: Excluded. are. administration proqrams and. non general funded proqraDS. Where utility funded programs 2 , " • .-~- o are inteq:r:Slly linked. to general tund. prograllls, i. e., line clearing to tree maintenance, every attempt will be made to analyze them, time peraittinq. rntervie~ key manaqement statf, reviev depart~ental documents, and observe work routines to: o compare .ark performance against internal and external standards "ork quality -delivery of servicesj-custoaer· satisfaction -timeliness of services cost of providing services o appraise clarity of work assignments.. lines of authority, and appropriate delegation o assesa the effectiveness of internal controls to ensure resources are sarequarded o assess effectiveness and efficiency ot in-house vs. contract services More detailed yorkplans by program area are attached. PUBLIC WORKS PERfORMANCE BEYIE!fi DETAIL Of PROGRAM 0PECTIVES 1) To appraise the clarity ot work assignments" lines of author-ity" and appropriate delegation; assess tbe floii of information, adequate. accountability, and current organization charts. o Receive ~nd review current orqanization ch~rts -detersine lines of authori~y -chart the flow of information o Evaluate the scheduling of vork responsibility criteria used to assign tasks -comparison ·'Jf tasle to skill level -ad~ptability of schedule tor the unexpected ongoing certification of maintenance crew CKR:200:91 ] • o Q o Asses5 the tilllelinetls of delivering appropr late quantity and quality ot services -namber ot productive hours per day number ot staff to perf ora job versus standard -performance of staff to target schedule :2) To ev~luate the compatibility of manaqement plans to overall objectives; and to assess the effectiveness, efficiency and economy ot alternativ~ uses of resources (in-house versus contract). o Review service preventive ~aintenance proqram -standards used compared to manufacturers' standards -adherence and correction to those standards o Compare use of contract to in-hou~g service -compare standards for in-house to cO!lltract service in-bouae work versus c~ntract work cost effectiveness review work history for major repair ca~e90rie~ and by classes of vehicles and al~ernatives used 3) To assess the effectiveness, efficiency and economy of established internal controls to ensure that appropriate qoals end objectives are met; resources are safeguarded, ~ laws and requlations are followed and disclQsed~ CMR:200:91 o Analyze curre."'lt perforaance standards -repair work {flat rate book comparison) onqoing monitoring and adherence -review standards against actual performance o Evaluate work quality .aintenance history of vehicles -·coDeback-work rate -customer satisfaction (turnaround time) o Assess parts inventory control standards consistency with 3tores procedures -inventory turnover rate parts orderinq based on schedlll2d repair work -emerqency parts replacement • • I o / Analyze gasoline inventory control beginning and ending inventory monitoring -recordlteep i r19 delivery procedures and safeguards -review dispensinq procedures -methods. fo~ detecting lOFs/leakaqe o Tire repair and replacement pr09ra~# including inventory control OBJEC'UTBS POll CUB'rODIlIL l\JII) BOILDrJlO IlAIIft'DlUCII. 1) To appraise the clarity of work i!ssiqnments, lines of authority,. and appropriate c:leleqation; assess the flow of information, adequat.e accol1ntabili ty t and current organizaticn charts~ o Receive and review current organization charts determine lines of authority chart the flow of information o ~~aloate the schedulinq of york responsibility -Criteria used to assign tasks -Cemparison of task to sxill level 2) TO evaluate the compatibility of .anagement plans to overall objectives; and to assess the. effectiveness,. efficiency and economy of alternative uses of resources (in-houDe versus contract). o Review building maintenance schedule scheduling of routine inspections -criteria used tor scheduling -scheduling emerqency calls and special requests o Assess criteria to determine in-house or contract -security issues compare cost effectiveness per unit of output JJ To assess the effectiveness, efficiency and economy of established internal controls to ~nsure that appropriate goals and objectives are meti resources are safequarded~ an~ laws and regulations are followed and disclosed~ CMR:200:91 5 • \ , o / / o o Review standard. tor cuatodial service progra~ • .t.ndarda u •• d in-house compared to contract -review ot etandards aqainst actual performance -r~.ponBe time tor special requests o tvaluata work quality -ongoinq quality control monitorinq and adherence -log or complaints or special requests -customer a&tistaction with work performed o Analyze the uae or inspection checklists -verity use of list -review for adherence 1) To app~ai.e the clarity of work assiqnments~ lines of authority, and appropriate delegation~ o evaluate the .ch~ulinq ot work responsibility -criteria uDed to assiqn t~sks -•• ttinq of priorities -i8pact on schedule tor e&erqencies 2) To evaluate the coapatibility of management plans to overall objective.; and to asseSs the effectiveness, efficiency and economy of alternative uses of resources (in-hou •• varsus contract). o Review the preventative :aainten.ance program for' streets, sidewalk, traffic control, and trees aalntenance. -determine priority ror work -standards •• t tor schedulea and timelines 3) To asse •• the effectiveness, efficiency and economy of established internal controls to ensure that appropriate qoals and objectives are :aet; resources are safeguarded, and laws and regulations are followed and disclosed. CMR:200:91 o Analyze current performance standards -all areas includinq contracts -industry 8~and.rds -onqoinq aonitorinq and adherence -review standards against actual performance .. o o Evaluate wort quality -chec~list to ~nsure quality performance -contract monitoring Initial Kickoff Meeting with Finance Director, Budget staff, Public works Director' Administrator, and PW Division Heads involved in audit -overview of audit scope and purpose -qathering of initial data February 5, 1991 FIELDWORK ·February-late o Fa~ilities Manaqement o Operations o Equipment Manage.ant DRAFT FINDINGS TO PW COMMENTS BACK FROX PW Interi. budget DRAl'T REPORT TO PW DRAFT REPORT TO CITY MGR, including Public Works Comments WORK WITH PUBLIC WORKS TO MAKE PRESENTATION TO COUNCIL ON DEPARTMENT tlVRK WITH PUBLIC WORKS TO INCORPORATE RECOKMENDED CHANGES INTO 1992-94 BUDGET CMR: 200: 91 7 March Mid April Hid May April-June Hid JUly E~rly August Fall 1991 Ot19oinq Nov-ember 1991 Throuqh April 1992 o Related staff ~.port.: CIIIl:200:H .. / CMR 222 0 C!IR 10) 0 ClIP. 160 91