Loading...
HomeMy WebLinkAbout12 - Performance Measurement SystemCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. _12 January 8, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Homer Bludau, City Manager 949/644 -3000 or hbludau @city.newport- beach.ca.us Administrative Services Department Dennis C. Danner, Administrative Services Director (949) 644 -3123 ddanner@city.newport-beach.ca.us SUBJECT: Performance Measurement System —Award of Contract ISSUE: Should the City retain the services of ICMA (International City /County Management Association) to implement a Performance Measurement System for the City of Newport Beach. Retain the services of ICMA to implement a Performance Measurement System for the City of Newport Beach, direct the City Manager to execute the contract, and approve a General Fund Budget Amendment in the amount of $107,000 from General Fund unappropriated reserves. DISCUSSION: On Saturday, March 24, 2007, the City Council held a Special Meeting in the Friends Room of the Central Library to consider establishing its priorities for the upcoming fiscal year (July 2, 2007 — June 30, 2008), Public input was obtained throughout the meeting. At a regular City Council Meeting held on April 24, 2007, the City Council formally adopted the priorities established at the Special Meeting of March 24th. One of the priorities was defined as follows: institute an Organizational Performance improvement Effort through the identification of service benchmarks and data gathering to measure organizational effectiveness. This priority was referred to the City Council Finance Committee to further define the initiative and to develop a scope of work and timeframe to achieve the objectives of the initiative. To date the City Council Finance Committee has held numerous meetings to discuss the initiative and determine how to proceed with the scope of work. On July 10, 2007, the City Council retained the services of Mr. Phil Batchelor to assist the City in implementing this initiative. It was determined that there were three key areas of the initiative as follows: 1. Understand the level of satisfaction that the citizens of Newport Beach have with the City services that are being provided to them. 2. Establish goals for each of the program areas that the City provides by setting performance measurements that will provide competent, responsive and courteous services to the public in the most cost effective and efficient manner possible. 3. Perform an assessment of the existing service delivery systems to determine what actions should be taken to improve the overall productivity of the organization, systems, procedures, staffing, facilities and operations of the City of Newport Beach. To address the level of satisfaction of City services, ETC Institute was selected to conduct a customer satisfaction survey. The survey was designed in three parts — a survey of our residents, a survey of our development community, and a survey of our business community. The resident's survey was sent out in early December and the results are now being tabulated. To address the second key area (performance measurements) an RFQ was issued in October for a firm to assist the City in establishing a performance measurement system. Four responses to that RFQ were received and the City Finance Committee met on December. 12, 2007 to interview the two finalists — ICMA and GFOA (Government Finance Officer's Association). Both firms presented outstanding proposals and, after careful consideration of both proposals, the Finance Committee selected ICMA to recommend to the City Council to establish a Performance Measurement System for the City. FUNDING AVAILABILITY: The cost of establishing the Performance Measurement System is $107,000 and it is requested that the attached Budget Amendment appropriating these funds from General Fund unappropriated reserves be approved. Submitted by: g�mou,, - /,- Homer L. Bludau, City Manager Dennis C. Danner, Administrative Services Director 1CMA November 1, 2007 Mr. Homer Bludau City Manager, City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Dear Mr. Bludau: Leaders at the Core of Better Communities RECEIVED NOV 02 20071 Office of the City Manager The International City /County Management Association (ICMA) is pleased to submit a response to the Performance Measurements Request for Quotation from the City of Newport Beach, CA. ICMA looks forward to working with the city and offering its expertise as the professional and educational organization for local government officials throughout the world along with those of our renowned program, the Center far Performance Measurement.. As the legal person authorized to bind ICMA's response to the city and on behalf of my colleagues, we greatly appreciate this opportunity and would be pleased to address any comments you may have. You may contact me at 202 - 962 -3589 or Craig Rapp at 612 605 5603. Sincerely, Mark Thompson ICMA Management Team ICMA Leaders at the Core of Better Communities ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements Contact: Craig Rapp, Director, Local Government Solutions and ICMA Consulting Services craig.rapp @icma.org 612 605 5603 o 612 216 5073 f 612 597 3178 m www.icma.org November 1, 2007 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements 1. Describe the professional credentials of ICMA and the specific qualifications of individuals to work on and oversee the implementation of a performance measurement system for the City of Newport Beach. Specify the role, experience, qualifications and the percentage of award to subcontractors. A. Professional Credentials of ICMA The International City County Management (ICMA) is the professional and educational organization for chief appointed managers, administrators, and assistants in cities, towns, counties, and regional entities throughout the world. Since 1914, ICMA has provided technical and management assistance, training, and information resources to its members and the local government community. The management decisions made by ICMA's 8,200+ members affect more than 100 million individuals in thousands of communities - -from small towns with populations of a few hundred to metropolitan areas serving several million. ICMA's mission is to create excellence in local governance by developing and fostering professional local government management worldwide. ICMA accomplishes this by providing a wide range of services to its members and the local government community, including publications, data, information, technical assistance, and training and professional development. ICMA. provides technical assistance to local governments in emerging democracies, helping them to develop professional practices and ethical, transparent governments. ICMA assists local governments in the United States through programs such as the Center for Performance Measurement, Public Safety, the Smart Growth [Network, and other programs that focus on specific areas of need. The ICMA Center for Performance Measurement (CPM) is dedicated to helping local governments measure, compare, and improve municipal service delivery. ICMA's Comparative Performance Measurement Program currently assists over 200 cities and counties in the United States and Canada with the collections, analysis, and application of performance information. The Center builds on work begun in 1994 by the Comparative Performance Measurement Consortium, an initial group of 44 cities and counties whose managers identified a need for accurate, fair, and comparable data about the quality and efficiency of service delivery to their citizens. Consortium members asked ICMA to coordinate their work and then undertook the challenges of narrowing the choices of services to be measured, identified desired outcomes of service delivery, defining indicators, and collecting data. Today, the Center continues its work by • Providing on -site training for new participants • Coordinating meetings for both managers and departmental specialists • Refining data collection templates based on suggestions from program participants • Collecting and "cleaning" program data to ensure the validity of interagency comparisons • Compiling information regarding best practices among program participants • Publishing an annual program report, and • Providing participants with raw data for customizing their own comparisons, graphs, and reports. All ideas discussed in this proposal are the intellectual property or ICMA —not to be shared out or the context of this proposal. For more information contact Craig R. Rapp, 612 605 5603, craig.mpp @icma.org. Page I or 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements The Comparative Performance Measurement Program has since expanded to over 200 communities, with data collection continuing to provide the ability for interagency benchmarking as well as internal performance improvement comparisons. With the continued growth of the program, participants have the freedom to compare to the full sample or to use the online database to customize their own comparisons based on population, climate, urban density, and method of service provision, community demographics, and other characteristics. Service areas evaluated under the program include: • Code Enforcement • Facilities Management • Fire and EMS • Fleet Management • Highway and Road Maintenance • Housing • Human Resources • Information Technology • Library Services • Parks and Recreation • Police Services • Purchasing • Refuse and Recycling • Risk Management Youth Services Local governments participating in ICMA's CPM have demonstrated effective application of performance measurement data. These jurisdictions have taken performance data into consideration when measuring progress toward strategic planning and goals (for the overall organization, departments, or individuals) and have successfully applied the data when making management decisions or considering financial issues. Additionally, ICMA and National Research Center, Inc. developed The National Citizen Survey (The NCSTM) as a low -cost citizen survey service for local governments. Tested, flexible, affordable, and efficient, The NCSTM surveys citizen opinion for program planning, budgeting, goal setting, and performance measurement. The NCSTM was designed to coordinate with the ICMA CPM data collection. The NCSTM Services offered by ICMA and NRC includes: • Customized survey form plus up to three optional questions • Customized cover letter • Three mailings to 1,200 randomly selected households: pre- survey postcard and two mailings of the survey instrument All ideas discussed in this proposal are the intellectual property of ICMA —not to be shared out of the context of this proposal. For more information contact Craig R. Rapp, 612 605 5603, craig.rapp @icma.org. Page 2 of 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements • A margin of error (95 percent confidence interval) of no more than +1- 5 percentage points around any percent • Data input and cleaning • Data weighted to reflect population norms . • Three reports: executive summary, statistical analysis of survey results, optional comparison with national norms, all in electronic format • Certificate of participation • Technical assistance by phone and e-mail • Access to Best Practices of winners of The Voice of The People Awards for Excellence and Transformation • Customized norms by region, population, or other factors • Spanish- language version of survey • Addition of open -ended question • Comparisons to results from surveys you've conducted in the past • Demographic and geographic cross - tabulation • Phone survey • Presentation of results to elected officials B. Specific Qualifications of ICMA Team The ICMA offers a highly qualified team to work on and oversee the implementation of a performance measurement system for the City of Newport Beach. The key ICMA staff includes: • Mr. Craig Rapp, Director, ICMA Consulting Services, will provide oversight and direction to the project and will be the primary contact for the City of Newport Beach. As Director of Consulting Services at ICMA, Mr. Rapp provides a broad range of services to local government. He directs [CMA's consulting and technical assistance efforts, focusing personally on strategic planning, organizational improvement, and economic development. In addition, he is a nationally recognized speaker and trainer. Prior to joining ICMA, Mr. Rapp worked for over twenty -eight years as a senior executive in both the public and private sectors, holding the positions of City Manager in three cities, Community Development Director of the Metropolitan Council of the Twin Cities, and Vice President of a local government consulting firm. All ideas discussed in this proposal are the intellectual property of ICMA —not to be shared out of the context of this proposal. For more information contact Craig R. Rapp, 612 605 5603, craig.rapp@icm.org. Page 3 of 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements Mr. Rapp has extensive experience as a facilitator and trainer. He has worked with cities of all sizes conducting leadership retreats and working with community groups. In addition, he has developed training courses for public officials dealing with difficult political environments, as well as lean process improvement and strategic planning that he presents throughout the United States. During his tenure at the Metropolitan Council, Mr. Rapp directed the implementation of the Metropolitan Livable Communities Act — a landmark program that created a region -wide response to the issues of polluted land cleanup, affordable housing and innovative development. In addition, Mr. Rapp oversaw development of Metro 2040, the Twin Cities' first new growth management plan to incorporate the principles of smart growth and address the costs of growth. Mr. Rapp holds a Master of Arts in Public Administration from Minnesota State University, Mankato and a Bachelor of Arts in Urban Studies from the University of Minnesota. • Don Gloo, Senior Management Associate, ICMA Center for Performance Measurement, Mr. Gloo will assist in the review, analysis, refinement/development, implementation, and evaluation of the performance measures. Mr. Gloo will also assist in course training and development for city staff. Since May, 2006, Mr. Gloo has served as senior member of the ICMA Center for Performance Measurement staff. As such, he has been the leader for the regional performance consortia in Minnesota, Colorado, the Chicago metro area, and the St. Louis metro area. He has coordinated and led the training for incoming individual CPM participants, as well as the training for the entire St. Louis consortium. In 2007; Mr. Gloo created and conducted the first -ever, comprehensive survey of CPM members to assess member satisfaction. His survey report was used extensively by the CPM Leadership Committee to set long -term program goals. Mr. Gloo also manages the Refuse and Recycling data collection template, including template revisions, data cleaning, and reporting. Prior to joining the ICMA staff, Mr. Gloo served as an Assistant City Manager in Urbandale, IA (36,000) where he.led the City's Performance Measurement Program for 7 years. This included managing Urbandale's collection, analysis and application of data through the ICMA CPM; managing the City's bi- annual survey of citizen satisfaction; and coordinating Urbandale's participation in Iowa's Citizen - Initiated Performance Assessment Program. Mr. Gloo made extensive use of Urbandale's performance data. For example, in 2006, he authored the City's Ten -Year Staffing Plan, which drew extensively on performance data, as well as on future projections for service demands, demographic trends, and labor market factors. He also conducted and wrote the City's 2004 Salary Survey, which assisted the City Manager and elected officials in ensuring that salaries were competitive with other Iowa cities and counties. As a analyst in the central budget office of Arlington County, VA (200,000) from 1995 through 1998, Mr. Gloo was responsible for overseeing the financial performance of three departments All ideas discussed in this proposal are the intellectual property of ICMA —not to be shared out of the context of this proposal. For more information contact Craig R. Rapp, 612 605 5603, craig.mpp@icma.org. Page 4 of 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements and two special revenue funds totaling over $40 million. Additionally, he led an inter- departmental effort to fully integrate performance measures into the County's budget development process, an effort that resulted in a better decision - making tool for the County Board. In addition to his local government service, Mr. Gloo served for nearly six years with the Federal government at the Office of Personnel Management and the Bureau of Labor Statistics. Mr. Gloo received an MBA from the State University of New York at Buffalo (1987) and a BS from St. Lawrence University (1985). The consultant/subcontractor staff for the project includes: • Mr. Brooke A. Myhre, Senior Consultant, ICMA Center for Performance Measurement, will lead the review, analysis, refinement/development, implementation, and evaluation of the performance measures. Mr. Myhre will also recommend, organize, and oversee course training and development for city staff. Until his retirement in July 2007, Mr. Myhre held the position of Performance Development Manager with the Human Resources Department of the City of San Jose, California. He holds a Master's in Public Administration (1982) from San Jose State University and has 28 years of experience in local government, including operating budget coordination, federal grant administration, as well as contract monitoring and evaluation. He has been involved with performance -based budgeting and management for the past ten years. As Manager of Performance Development, Mr. Myhre had responsibility for citywide workforce development efforts (leadership, supervision, mentoring and skill training) as well as organizational development efforts (community and employee satisfaction surveys, service delivery performance improvement studies, and coordination of San Jose's workforce planning and diversity management strategy to address impacts of the anticipated retirement of up to one- third of the city's workforce over the next five years). In 1997, as the city's Operating Budget Coordinator in the City Manager's Budget Office, Mr. Myhre led a team of San Jose employees charged with developing, in less than seven months, a pilot performance -based budgeting system for 20 city programs with combined budgets of more than $100 million. From 1999 through 2005 Mr. Myhre was a member of San Jose's QUEST Partnership. Using a city wide, integrated approach, called "Investing in Results ", that links performance -based budgeting, continuous improvement techniques, and managed competition, the QUEST Partnership's goal was to help transform San Jose into a customer - focused and results- driven organization. Since 1999, San Jose has involved hundreds of employees — from the "front- line" to management — in determining core services, developing performance measures and implementing a performance -based budgeting and management process. In 2003, San Jose's "Investing in Results" effort received a national "Best Practices" award from the International City /County Management Association. Since 2003, ICMA has also recognized All ideas discussed in this proposal are the intellectual property or ICMA —not to be shared out of the context of this proposal. For more infomtalion contact Craig R. Rapp, 612 605 5603, craig.rapp @icma.org. Page 5 of 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements San Jose as one of t6 cities awarded a Certificate of Distinction in the use of performance measures. For the fast several years, the Government Finance Officers Association has presented its Distinguished Budget Presentation Award to San Jose with special recognition for performance measurement. Mr. .Myhre has been a presenter at a number of performance -based management conferences around the country including those of the GFOA, ICMA, Governing Magazine, NALGA, and Innovation Groups. He has served as a reviewer for the AGA',s Certificate of Excellence in Service Efforts and Accomplishments Reporting Program. Academically, Mr. Myhre has taught Public Budgeting for the MPA program of the Political Science Department at SJSU and has been a guest speaker on public budgeting on numerous occasions. The percentage of award to subcontractors is 60 %. Mr. Myhre is a subcontractor to ICMA; however, he is an integral part of ICMA's Center for Performance Measurement. He transitioned to his current status following his retirement from the City of San Jose, CA, where he had a long association with [CMA -CPM as a program participant. C. Project Organization Chart 2. ICMA Reference List The following is a sample of [CMA's references: • Dashboard Measures for Fountain Hills, AZ The Town Manager of Fountain Hills, AZ asked [CMA for help in identifying a manageable set of performance measures to ensure that the City's priorities are on course. After further consultation with the City, ICMA prepared two sets of ten "dashboard" measures that provide at a quick glance an assessment of the City's progress toward its prime objectives as stated in its strategic plan. All ideas . discussed in this proposal are the intellectual property of ICMA —not Lobe shared out of the context of this proposal. For more information contact Craig R, Rapp. 612 605 5603, craig.rapp @icma.oro. Page 6 of 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements ICMA prepared the two sets of measures so that one set could focus on citizen survey data and the other could exclude that data. Citizen survey data measure the ultimate outcome results, and are thus useful to managers and elected officials with a broader policy perspective. Other (non citizen survey) measures are more useful to city staff in looking to analyze the data and identify possible improvements in service. The sets of measures were prepared and presented within a week and to the satisfaction of the Town Manager. Contact- Tim Pickering, Town Manager, Town of Fountain Hills, AZ- 480/816 -5106, tpickering@th.az.gov. • Custom Data Manipulation The City of Coral Springs, FL needed to assemble and analyze a subset of data from ICMA's database of local government performance information. They did not have the resources to assemble the data efficiently, so they asked ICMA to perform that task for them. Coral Springs requested certain data points from all jurisdictions in the database within a given population cohort. The data requested was from seven different service areas, and included 40 different data categories and descriptive (demographic) information as well. The data was assembled and graphed and a report was prepared within a week, which was then distributed to the client. The client was able to complete their analysis in a timely fashion due to ICMA's quick response in delivering the data. Contact- Christine Heflin, Organizational Development Coordinator, City of Coral Springs, FL- 954/344 -5912, ech @ci.coral- springs.fl.us. • Cascading Measures Analysis As part of its work with regional performance consortia (jurisdictions within a region that work together to compare performance data and identify leading practices and opportunities for service improvement), [CMA has prepared a number of analyses for use by consortia participants. The typical analysis includes presenting in written format data relevant to a specific operation with graphs, mean and median averages, and quartiles. ICMA also includes questions to frame the analysis, questions about specific data points, and other related data. ICMA then distributes the data and works with the jurisdictions in interpreting and analyzing the information. The purpose is not simply to analyze the data for the clients, but to do so in a way that teaches them to analyze the data as well. Jurisdictions then apply the analysis to their own operations in order to identify improvements to their service delivery processes. Contact- Julian Contreras, Budget Analyst, City of Corvallis, OR- 541/752 -7522 x5110, julian.corvallis@ci.corvallis.or.us. All ideas discussed in this proposal are the intellectual property of ICMA—not to be shared out of the context of this proposal. For more information contact Craig R. Rapp, 612 605 5603, craig.rapp@icma.org. Page 7 of 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements 3. ICMA Process to Assist the City of Newport Beach A. Study the city's mission and goals 1. Purpose: This step is designed to confirm the following: • Is there clarity and agreement on why the city exists and on what the city is trying to accomplish? • Do the mission, goals, and objectives still make sense to major stakeholders? • Does alignment exist between the adopted mission, goals and priorities, the residents' and stakeholders' perceived issues and priorities, and the city departments' current objectives, services and service levels? 2. Product: Results of the review will indicate if there is a sound foundation on which to build a results -based performance measurement effort. Policymakers, residents, and other major stakeholders, and city service providers should be in substantial agreement on the purpose and outcomes of the city's work efforts prior to developing performance indicators so that managers and employees do not find themselves faced with conflicting priorities and direction. 3. Process: Using independent review and communication with city leadership: ❑ ICMA staff will review current adopted city mission, priorities and goals, and services delivered. ICMA staff will also perform initial review of: • Resident survey issues and service priorities; • Council priorities, management initiatives, strategic /long -range plans; • Budget and resource allocation patterns /forecasts; • Departmental missions /objectives /priorities/services; • Organizational capacity, attitudes, motivation, and potential barriers to effective implementation. ❑ ICMA staff will meet with city project leadership to validate understanding of city mission, priorities and goals, to identify major stakeholders (such as employee representatives, advisory bodies, advocacy groups, major customers), and to discuss the organizational and environmental context of the performance measurement effort. ❑ Through an appropriate forum, ICMA staff and city project leadership will check clarity, agreement, and alignment of the mission, priorities and goals with major stakeholders. (This is an OPTIONAL step, but if stakeholder involvement is to occur, it must begin early in the process to be perceived as genuine and effective). ❑ ICMA staff and city project leadership will meet with city senior staff to report results of the analysis and stakeholder input and to determine appropriate recommended actions. All ideas discussed in this proposal are the intellectual property of ICMA —not to be shared out of the context of this proposal. For more information contact Craig R. Rapp, 612 605' 5603, cmig.rapp@icma.org. Page 8 of 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements B. Review the results of the Citizen Survey 1. Purpose: This review will determine the following: • What do survey respondents perceive as the current/developing issues for city action, what services are most valued, and what service results do they find satisfactory or think could be improved? • How do survey respondents' perceptions align with (or differ from) those of our major stakeholders and those of residents in comparable cities? • Which city services should be selected for initial participation in the performance measurement effort? 2. Product: A consensus- based, prioritized list of city services to receive consideration for inclusion as performance indicators in the initial phase of the performance effort. 3. Process: Through independent review and communications with city project leadership: O ICMA staff will review the [Newport Beach resident survey and results for validity (sample size, representation, methodology, margin of error) and comparability to benchmark surveys from other cities. O ICMA staff and city project team will review and discuss survey results with major stakeholder groups to compare survey responses with the perceptions of those with more extensive involvement with city priorities and services. (This step is OPTIONAL but important to promote credibility and inclusiveness of the initial resident survey and performance measurement process). O ICMA staff and city project team will check the alignment and relevance of resident survey questions and responses to city policies and services to ensure the survey responses represent a fair and accurate baseline for perception of the current performance results of city services. O ICMA staff will compare Newport Beach resident survey responses with benchmark survey data from [National Citizen Survey participants. Additionally, ICMA staff will identify other sources of benchmark survey data from comparable cities. O ICMA staff will assist city project team to develop recommendations for the services to be included in the initial phase of the performance measurement effort. C. Analyze and make recommendations concerning the desirability of using the performance measurement indicators proposed by the city staff. [NOTE: It is important to involve city staff as partners in this process to promote "ownership" of the performance indicators and to equip city staff to continuously improve measures. Therefore, we have included the response to this section in D below. The response to part D includes the joint analysis and development of recommendations on staff - proposed performance indicators. All ideas discussed in this proposal are the intellectual property or ICMA —not to be shared out of the context of this proposal. For more information contact Craig R. Rapp, 612 605 5603, craig.rapp@icma.org. Page 9 of 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements D. Work with the city to augment the performance indicators proposed by the city with additional indicators that are currently being used in other jurisdictions and those that would best meet the needs of the City of Newport Beach. 1. Purpose: This step is designed to accomplish the following: -To review city staff - proposed services and programs based upon priority results of the resident survey, available benchmarking information, and city goals and objectives to determine those that should be benchmarked. -To identify additional performance indicators being used in other jurisdictions and determine their applicability and usefulness to the City of Newport Beach. -To ensure that recommended performance measurement indicators fairly represent the results of city services and provide not only for accountability, but the opportunity to track and improve progress toward meeting the city's goals and objectives. 2. Product: A consensus recommendation (developed jointly by ICMA staff and proposing city staff) on the services to be benchmarked based on criteria including: residents' and stakeholders priorities, city goals and objectives, available benchmark data, and usefulness as a means to track and improve performance over time. 3. Process: At two half -day "workshop" style meetings: O ICMA staff and city project team will review with selected departmental staff the purpose of the performance measurement initiative and the planned use of the measures and will update staff on the findings of the resident survey, stakeholder input and benchmarking analysis. O ICMA staff and city project team will lead selected department staff through a process to clearly define and validate or modify the services being proposed by staff for the initial measurement effort. The basic question is "Are we measuring the right things ?" given what has been learned from the resident survey, review of goals and objectives, and benchmarking analysis. To answer this question, the following will be addressed: • Are the services and their desired results clearly defined? • Are these the services stakeholders care about or need to know about? • Can measuring these service results tell us what we want to know and help us improve? • Do the services align with city mission, priorities, goals, and resident survey results? • Are there additional or alternative performance indicators being used elsewhere that would be appropriate and useful to Newport Beach? IMPORTANT: If not already considered, include services delivered internally to the city, such as human resources, purchasing, contracting, information technology services, which may directly or indirectly impact the performance of external service delivery. All ideas discussed in this proposal are the intellectual property of ICMA —not to be shared out of the context of this proposal. For mole information contact Craig R. Rapp, 612 605 5603, craig.rapp @icma.org. Page 10 of 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements E. Recommend and provide a course of training and development for the city staff that will equip them with the necessary understanding and knowledge to be able to manage and maintain an effective performance measurement system. 1. Purpose: This step will inform, involve, and actively engage Newport Beach staff as partners in creating and sustaining a performance measure system that is meaningful and useful to staff at all levels of the organization. 2. Product: Understanding of the purpose and goals of the Newport Beach performance measurement project, how employees contribute to and may be affected by it, how to define services in terms of results, how to identify and interact with customers and stakeholders, how the performance measurement system integrates with other Newport Beach systems and processes, such as planning, budgeting, and employee development and evaluation. 3. Process: Two principal training efforts are recommended. The first is designed to prepare a central project team to provide on -site leadership of the effort, provide ICMA staff with knowledge and background on the organizational context, and ultimately to be effective in overseeing, operating and sustaining the performance measurement system. The second is the development of an ongoing citywide training curriculum to inform all city employees on the fundamental purpose, elements, and uses of Newport Beach's performance measurement system. O Central City Project Team: ICMA staff will work with the city to identify and train a central project team of city employees to lead, coach, and facilitate the performance measurement effort. The team should include city leadership and key functional players with knowledge of and responsibility for major administrative and service delivery functions. This team will: o Provide in depth knowledge of the city's processes, practices, and organizational environment and will be trained to develop, manage, and sustain the city's performance measurement effort. o Review existing city systems, procedures, and resources available for data collection, analysis, reporting. o Review existing city strategic planning, budgeting, communication, and decision - making processes for opportunities to integrate performance measurement . information. O City -wide Training Curriculum ICMA staff will work with the central project team and other appropriate city staff to develop a curriculum and a set of training modules appropriate to meet the needs of various types of employees such as new hires, existing staff, and employees at all levels from front -line service delivery to leadership based on significant elements of the process as recapped below: All ideas discussed in this proposal are the intellectual property of ICMA —not to be shared out of the context of this proposal. For more information contact Craig R. Rapp, 612 605 5603, cmig.rapp@icma.org. Page I I or 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements o Review city mission, priorities and resident survey findings o Check alignment of departmental objectives, services, resources, and performance to these. o Check alignment of front -line service and customer experience to department objectives and City Council policies /priorities. o Inventory and define services for performance measurement effort. o Validate or develop additional measures based upon agreed -upon criteria. o Obtain stakeholder input on services and performance measures. o Document approved performance measures and collection methodology. o Develop systems to collect, analyze, report and utilize performance data. o Integrate performance data into operational planning and service delivery to address issues and enhance results. F. Recommend a list of peer cities to use as comparative performance measurement indicator norms 1. Purpose: This step will help identify a group of cities that best fit the City of Newport Beach for comparative measurement purposes. 2. Product: A well - defined set of criteria or descriptor data that best characterizes the City of Newport Beach and can be used to identify peer jurisdictions for comparative measurement and a list of peer cities that can be used as comparative performance measurement indicator norms. 3. Process: In consultation with the city project team, ICMA will: O Develop a set of criteria that will help identify cities that are a best fit for comparative measurement with the City of [Newport Beach. O Based on those criteria, [CMA will be able to research and recommend a group of peer cities from its extensive CPM database that consist assists over 200 cities and counties in the United States and Canada. G. Recommend a performance measurement methodology and process for collecting and utilizing the desired information and data needed to measure the efficiency, effectiveness, and quality of the services being provided by the city. 1. Purpose: This step is designed to inform and engage city staff in creation of a performance measurement system in which they can take ownership and which meets the needs of the various customers of the system, including the following: -Develop a valid and sustainable system to regularly collect specific performance information on the results of city services. -Provide information that is useful to assess city service delivery systems and develop recommendations to improve productivity, systems, processes, staffing, facilities and operations. -Provide support for an organizational culture that promotes continuous improvement and fosters excellence. All ideas discussed in this proposal are the intellectual property of ICMA —not to be shared out of the context of this proposal. For more information contact Craig R. Rapp, 612 605 5603. craig.rapp @icma.org. Pgrre12of16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements 2. Product: A customized performance measurement system which meets the needs of Newport Beach that is based on best practices in government performance measurement, enables comparison of performance results to those of benchmark jurisdictions, facilitates communication of results to and input on perceived performance from Newport Beach residents and stakeholders, positively engages city staff, and that is sustainable within the capacity of city staff. 3. Process: Through a variety of engagement methods: O ICMA staff and city project team will lead selected department staff through a process to determine and agree on criteria to be used to evaluate indicators and measures. The fundamental aspects to be covered are: What makes a good measure? Are we measuring the right things right? Are the measures meaningful, useful, and sustainable? Elements of the evaluation will include: • Identify a balanced set of measures covering competency, cost - effectiveness, responsiveness, and customer satisfaction; • Identify any new or alternative performance measures needed and examples from other cities /jurisdictions to be recommended; • Determine how the measure data will be used for reporting and decision - making purposes as well as for analysis of operations and resources to address any performance issues or enhance performance result; • Determine the staff, systems, and other resources needed and available to ensure implementation and sustainability of performance data collection, analysis, and reporting; o Evaluate draft measures to ensure they are technically sound, feasible and sustainable in terms of validity, availability and timeliness of data, and capacity of staff and systems. O Through focus groups and/or other appropriate methods, ICMA staff and the city project team will involve major stakeholders to review initial services and draft measures to ensure they communicate what stakeholders want to know as well as what managers need to know. Based on input, ICMA staff and city staff will determine, if revisions are needed. 13 ICMA staff will work with the city project team to develop a "methodology checklist" as a sustainable tool to maintain documentation of each approved performance indicator and measure to ensure valid, consistent, and timely collection and reporting. H. Assist the city in implementing the performance measurement process. 1. Purpose: The purpose of this step is to assist the staff understand how to implement the measurement process in performance on collection, 2. Product: The outcome of this assistance will be a fully informed and knowledgeable staff who can implement the performance measurement process. All ideas discussed in this proposal are the intellectual property of [CMA —not to be shared out or the context of this proposal. For more information contact Craig R. Rapp, 612 605 5603, emig.rapp @icma.org. Page 13 of 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements 3. Process: ❑ Conduct two days of on -site training. Staff members are provided a brief overview of performance measurement. Then, small group meetings are held for each service area. In these sessions, definitions of terms and questions about the service area templates are clarified, and any questions that the jurisdiction may have about the performance measurement process or performance measurement in general are discussed. ❑ Once the training is complete, ICMA staff will be available for minor consultations on issues related to data collection /analysis and application of findings to city operations. Assistance with more complex issues is available at an additional charge. ❑ Although not a required part of this proposal, ICMA strongly recommends that the City join CPM. CPM is the premier comparative performance measurement program for local governments, and features over 200 participating jurisdictions, a convenient online data collection and reporting system, and a rigorous data cleaning system to ensure the validity of the data for comparison and analysis. Additional benefits of participation include: o Downloadable sets of CPM data from FY 1996 to the present • Ready -made, customizable charts and graphs to further analysis of data • An electronic discussion group for participants to discuss issues • Participant rosters • Access to ICMA's electronic library and additional reference materials I. Prepare a final report and presentation to be made to the City Council. ICMA staff will assist city project team in preparation and presentation of a final report and recommendations to the City Council on the performance measurement project. It is recommended that formal City Council approval of the measured services be accomplished using an open participation process to ensure all stakeholder input is heard. Craig Rapp, ICMA Director, will assist in the presentation of the report to the city's leadership. 4. Costs of Providing Above Services Cost with options* $107,000 *These costs include the options of CPM Membership and additional labor costs to carry out tasks A 3., A. 4., B.2., and G.2. as shown in the Project Schedule. Cost without options* $92,000 *These costs exclude the options of CPM Membership and additional labor costs to carry out tasks A 3., A. 4., 13.2., and G.2. as shown in the Project Schedule. All ideas discussed in this proposal arc the intellectual property of ICMA —not to be shared out of the context or this proposal. For more information contact Craig R. Rapp, 612 605 5603, craig.mpp@icma.org. Page 14 of 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements 5. Indicate how soon the process will be initiated once an agreement is signed. Once an agreement is signed, ICMA can immediately initiate the process to assist the city and in accordance with a schedule that meets the requirements of city. 6. Provide a schedule indicating the various milestone dates to be achieved in completing this engagement and estimated completion date for the entire project. TASK M O N T H A. Study City Mission and Goals 1 2 13 4 5 6 7 8 9 10 11 12 1. Independent Review of city documentation ✓ 2. Meet with city leadership ✓ 3. Major Stakeholder forum to review mission, priorities, goals ✓ 4. Meet with city senior staff to report results of stakeholder input and any recommended actions ✓ B. Review Results of Citizen Survey 1. Independent review of resident survey ✓ All ideas discussed in this proposal are the intellectual property of ICMA —not to be shared out or the context of this proposal. For mom information contact Craig R. Rapp, 612 605 5603, craig.rapp @icma.org. Page IS of 16 ICMA Submittal to Assist the City of Newport Beach Establish Performance Measurements 2. Major Stakeholder review and input on Resident Survey results ✓ 3. Check alignment and relevance of survey responses to confirm base) ✓ 4. Benchmark Resident Survey responses to NCS, other jurisdictions ✓ 5. Develop recommended list of city services to be included in initial phase ✓ C. Analyze and recommend desirability of using performance indicators proposed by city staff Included in D. below) D. Augment performance indicators proposed by city staff to meet the needs of the city 1. Conduct workshop meetings with city staff to review purpose; AND jointly evaluate and recommend initial performance indicators ✓ E. Recommend and provide course of training for staff 1. Train city Project Team ✓ ✓ ✓ ✓ ✓ 2. Develop citywide training curriculum ✓ F. Recommend list of peer cities ✓ 1. Develop criteria to compare with other cities ✓ 2. Recommend peer cities G. Recommend a performance measurement methodology and process that meets city needs 1. Workshop with city staff to define criteria and jointly evaluate propos measures ✓ 2. Assist.in stakeholder review and validation of draft measures and revision as needed ✓ ✓ 3. Assist staff to develop "Methodology Checklist" and document procedures for collection, analysis, use and reporting of performance d ✓ H. Assist the city in implementing the process 1. Two half day trainings ✓ ✓ 2. Consultation ✓ ✓ ✓ ✓ I. Prepare a final report and presentation to the City Council ✓ ✓ 7. Indicate any discount, reduction, or other accommodations that would be offered the city if ICMA were to provide annual follow -up services for the next two to three years. ICMA could offer: o A refresher two -day training for $2,400 in year 2 and/or year 3 if needed o Any ICMA -CPM workshop - -- elected officials, management & leadership team - - -at a fee less than the normal $3,300 (half day) or $4,000 (full day) fee. All ideas discussed in this proposal are the intellectual property or ICMA —not to be shared out of the context or this proposal. For more information contact Craig R. Rapp, 612 605 5603, craig.rappOicma.org. Page 16 of 16 City of Newport Beach NO. BA- 08BA -036 BUDGET AMENDMENT 2007 -08 AMOUNT: $07,000.00 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase in Budgetary Fund Balance X Increase Expenditure Appropriations AND �X Decrease in Budgetary Fund Balance Transfer Budget Appropriations No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations from additional estimated revenues PX from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase expenditure appropriations from unappropriated General Fund fund balance to award a contract to implement a performance measurement system. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account Description 010 3605 General Fund - Fund Balance REVENUE ESTIMATES (3601) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Division Number Account Number Division Number Account Number Division Number Account Number Division Number Account Number Division Number Account Number Signed: Description Description 0611 Admin Services - Resource Management 8080 Services - Professional & Technical Approval: Administrative Services Director Signed: A, Administrative Approval: City Manager Signed: City Council Approval: City Clerk Amount Debit Credit $107,000.00 ` Automa(rc $107,000.00 Date vL -4 f9 Date Date COUNCIL AGENDA quo. A. (71 -ca-Dew PROFESSIONAL SERVICES AGREEMENT WITH INTERNATIONAL CITY /COUNTY MANAGEMENT ASSOCIATION FOR CONSULTING SERVICES RELATED TO PERFORMANCE MEASUREMENT SYSTEM AND BENCIEVIARKS THIS AGREEMENT is made and entered into as of this 81' day of January 2008, by and between the City of Newport Beach, a Municipal Corporation, hereinafter referred to as "the City of Newport Beach ", and the International City/County Management Association, a not - for -profit corporation incorporated under the laws of the State of Illinois, whose principal office is located in Washington, D.C. (hereinafter "the CONSULTANT ") and whose Federal I.D. number is 36- 2167755. WHEREAS, the City of Newport Beach desires to retain the CONSULTANT, and the CONSULTANT desires to be retained, pursuant to the proposal attached hereto as Exhibit `B" and incorporated herein in its entirety; NOW, THEREFORE, in consideration of the mutual promises contained herein, the City of Newport Beach and the CONSULTANT agree as follows: 1. SERVICES The services to be rendered by CONSULTANT under this Contract are set forth in Exhibit `B" attached hereto. 2. SCHEDULE The schedule for services to be rendered by CONSULTANT is set forth in Exhibit `B" attached hereto. The project and final report shall be completed per the schedule in Exhibit "B ", which is one hundred seventy (170) business days after this Agreement is fully executed, subject to a mutually agreeable extension if necessary. k� wax1MI Dl►Y Alla 1 Payment by the City of Newport Beach under this Contract shall be governed by Exhibit "A" (page 8) and Exhibit `B" attached hereto. 4. TERMINATION Unless the CONSULTANT is in breach of the Contract, the CONSULTANT shall be paid for services rendered to the City of Newport Beach's satisfaction through the date of termination. This is a legal- binding contract and can not be terminated without cause. After receipt of a termination notice and except as otherwise directed by the City Manager, the CONSULTANT shall: A. Stop work on the date and to the extent specified; B. Transfer all work in process, completed work, and other materials related to the terminated work to the City of Newport Beach; and C. Continue and complete all parts of the work that have not been terminated. 5. PERSONNEL The CONSULTANT is, and shall be, in the performance of all work, services and activities under this Contract, an independent contractor, and not an employee, or agent of the City of Newport Beach. All persons engaged in any of the work or services performed pursuant to this Contract shall at all times, and in all places, be subject to the CONSULTANTS sole direction, supervision, and control. The CONSULTANT shall exercise control over the means and manner in which it and its employees perform the work, and in all respects the CONSULTANT's relationship and the relationship of its employees to the City of Newport Beach shall be that of an independent contractor and not as employees or agents of the City of Newport Beach. The CONSULTANT represents that it has, or will secure at its own expense, all necessary personnel required to perform the services under this Contract. Such personnel shall not be employees of or have any contractual relationship with the City of Newport Beach, nor shall such personnel be entitled to any benefits of the City of Newport Beach including, but not limited to, pension, health and workers' compensation benefits. The CONSULTANT warrants that all services shall be performed by skilled and competent personnel consistent with applicable technical and professional standards in the field. 6. AVAILABILITY OF FUNDS The City of Newport Beach's performance and obligation to pay under this contract is contingent upon an annual appropriation for its purpose by the City of Newport Beach City Council. The City of Newport Beach City Council has appropriated sufficient funds in the operating budget(s) for which the work to be performed will occur and until the contract has been fully executed. 7. INSURANCE REQUIREMENTS The CONSULTANT agrees to provide the City of Newport Beach with a CERTIFICATE or other documentation indicating that the professional liability insurance is an active policy and maintains the insurance throughout this Contract. Insurance shall be in force until all work required to be performed under the terms of the Contract is satisfactorily completed. In the event the Insurance Certificate provided indicates that the insurance shall terminate and lapse during the period of this Contract, the CONSULTANT shall furnish, at least thirty (30) days prior to the expiration of such insurance, a renewed Certificate of Insurance as proof that equal and like coverage for the balance of the period of the Contract and any extension thereunder is in effect. The CONSULTANT shall not continue to work pursuant to this Contract unless all required insurance remains in full force and effect. INSURANCE COVERAGE 1. Commercial General Liability Commercial General Liability Insurance to cover liability for bodily injury and property damage. Exposures to be covered are: premises, operations, products /completed operations, and contractual. Coverage must be written on an occurrence basis, with no less than the following limits of liability: A. Single Limit Bodily Injury & Property Damage Each Occurrence $2,000,000.00 B. Personal Injury Annual Aggregate $2,000,000.00 2. Professional Liability Coverage is for up to $5 million. The City of Newport Beach must be named as an additional insured for the Commercial General Liability coverage. The City of Newport Beach reserves the right to require any other insurance coverage it deems necessary depending upon exposures. 8. SUCCESSORS AND ASSIGNS The City of Newport Beach and the CONSULTANT each binds itself and its partners, successors, executors, administrators and assigns to the other party and to the partners, successors, executors, administrators and assigns of such other party, in respect to all covenants of this Contract. Except as stated above, neither the City of Newport Beach nor the CONSULTANT shall assign, sublet, convey or transfer its interest in this Contract without the written consent of the other. Nothing herein shall be construed as giving any rights or benefits hereunder to anyone other than the City of Newport Beach and the CONSULTANT. 3 9. LAW GOVERNING THIS CONTRACT The Contract shall be governed by the laws of the State of California. Any and all legal action necessary to enforce the Contract will be held in the County of Orange. No remedy herein conferred upon any party is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law, in equity, by statute or otherwise. No single or partial exercise by any party of any right, power, or remedy hereunder shall preclude any other or further exercise thereof. Dispute Resolution "In case of a dispute regarding the interpretation of any part of this Contract, the parties shall use their best efforts to arrive at a mutually acceptable resolution. The Consultant shall proceed diligently with its performance of the work under this Contract pending the final resolution of any dispute arising or relating to this Contract. The Client shall continue to pay the Consultant for its performance under the Contract except for those items related to the dispute." 10. CONFLICT OF INTEREST The CONSULTANT represents that it has no interest and shall acquire no interest, either direct or indirect, which would conflict in any manner with the performance of services required. Consultant employees, consultants, or subcontractors may undertake outside professional activities provided such activity and involvement does not conflict or interfere with this Contract. In addition, employees, consultants, or subcontractors will not directly or indirectly, alone or with others, engage in or have any interest in any person, firm, or entity that engages in any business activity that is competitive with the business performed under this Contract. 11. EXCUSABLE DELAYS The PARTIES shall not be considered in default by reason of any failure in performance if such failure arises out of causes reasonably beyond the control of the PARTIES and without their fault or negligence. Such causes include, but are not limited to: acts of God; natural or public health emergencies; and abnormally severe and unusual weather conditions. Upon either PARTIES's request, the other PARTY shall consider the facts and extent of any failure to perform the work and, if the PARTIES's failure to perform was without its fault or negligence, the Contract Schedule and/or any other affected provision of this Contract shall be revised accordingly to a newly agreed upon timeline. It shall be the 11 responsibility of the PARTIES to notify the City of Newport Beach promptly in writing whenever a delay is anticipated or experienced, and to inform the City of Newport Beach of all facts and details related to the delay. 12. DISCLOSURE AND OWNERSHIP OF DOCUMENTS The CONSULTANT shall deliver to the City of Newport Beach for approval and acceptance, and before being eligible for final payment of any amounts due, all documents and materials prepared by and for the City of Newport Beach under this Contract. All written and oral information not in the public domain or not previously known, and all information and data obtained, developed, or supplied by the City of Newport Beach or at its expense will be kept confidential by the CONSULTANT and will not be disclosed to any other party, directly or indirectly, without the City of Newport Beach's prior written consent unless required by a lawful order. All drawings, maps, sketches, programs, data base, reports and other data developed, or purchased, under this Contract for or at the City of Newport Beach's expense shall be and remain the City of Newport Beach's property and may be reproduced and reused at the discretion of the City of Newport Beach. All covenants, agreements, representations and warranties made herein, or otherwise made in writing by any party pursuant hereto, including but not limited to any representations made herein relating to disclosure or ownership of documents, shall survive the execution and delivery of this Contract and the consummation of the transactions contemplated hereby. 13. NONDISCRIMINATION The CONSULTANT warrants and represents that all of its employees are treated equally during employment without regard to race, color, religion, disability, sex, age, national origin, ancestry, marital status, and sexual orientation. 14. ENFORCEMENT COSTS If any legal action or other proceeding is brought for the enforcement of this Contract, or because of an alleged dispute, breach, default or misrepresentation in connection with any provision of this Contract, the successful or prevailing party will be entitled to recover reasonable attorney's fees, court costs and all expenses (including taxes) even if not taxable as court costs (including, without limitation, all such fees, costs and expenses incident to appeals), incurred in that action or proceeding,, in addition to any other relief to which such party may be entitled. 5 15. SEVERABILITY If any term or provision of this Contract, or the application thereof to any person or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this Contract, or the application of such terms or provision, to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected, and every other term and provision of this Contract shall be deemed valid and enforceable to the extent permitted by law. 16. ENTIRETY OF CONTRACTUAL AGREEMENT The City of Newport Beach and the CONSULTANT agree that this Contract together with the Exhibits hereto, sets forth the entire agreement between the parties, and that there are no promises or understandings other than those stated herein. None of the provisions, terms and conditions contained in this Contract may be added to, modified, superseded or otherwise altered, except by written instrument executed by the parties hereto in accordance with Article 17 - Modification and Changes. In the event of any conflict or inconsistency between this Contract and the provisions in the incorporated Exhibits, the terms of this contract will supersede and prevail over the terms in the incorporated Exhibits. 17. MODIFICATIONS AND CHANGES Only the City of Newport Beach City Manager or his/her representative has authority to issue modifications to this Contract that materially change or modify any of the specifications, terms, or conditions of this Contract. Only the City of Newport Beach City Manager may, by written order, make changes within the scope of work of this contract including but not limited to any one or more of the following: (a) description of services to be performed; (b) period of performance; and (c) place of performance. No change order shall be binding unless so issued by the City of Newvort Beach City Manager in writing and, until approved by the CONSULTANT's Contracting Administrator or their designated representative unless they are of an administrative matter. 3 18. NOTICE All notices given under this Contract shall be sent by certified mail, return receipt requested, and if sent to the City of Newport Beach shall be mailed to: City Manager City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 WITH A COPY TO: City Attorney City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 and if sent to the CONSULTANT shall be mailed to: Vickie L. Brooks Director, Grants & Contract Administration International City /County Management Association (ICMA) 777 North Capitol Street, Suite 500 Washington, DC 20002 IN WITNESS WHEREOF, the parties hereto have set their hands and official seals the day and year first above written. APPROVED AS TO FORM: City Attorney for the City of Newport Beach ATTEST: am LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation By: Homer Bludau, City Manager for the City of Newport Beach WITNESSES: SIGNATURE Print Name: Date: SIGNATURE Print Name: INTERNATIONAL CITY /COUNTY MANAGEMENT ASSOCIATION (ICMA) BY: SIGNATURE Print Name: Title: Date: EXHIBIT A Fees and Payment Schedule Inconsideration of the activities performed by the CONSULTANT, the City of Newport Beach agrees to pay the CONSULTANT the amount of $107,000, for services rendered, not including reimbursable costs. Upon execution of this contract, an initial payment equal to 25% or $26,750.00 of the total amount shall be paid to ICMA. An additional three (3) payments shall be invoiced to the Newport Beach City Manager. Each additional installment shall be for $26,750.00, made out to the International City /County Management Association and will be paid within 30 days after receipt of each agreed upon project deliverable as described in Exhibit B. Upon the completion of the final deliverable, the remaining costs and actual reimbursement costs for travel and other direct expenses will be submitted to the City Manager for approval and paid by the City of Newport Beach Administrative Services Director within 30 days of the presentation of the final report to the Newport Beach City Council as seen in Exhibit B. 0 EXHIBIT B Scope of Work/Project Deliverables ICMA will assist the City of Newport Beach, CA in developing a performance measurement system and appropriate benchmarks for selected City services. ICMA understands that the Newport Beach benchmarking initiative is a City Council initiated and directed project that will be administered in collaboration with City staff. ICMA's principal roles in this initiative are to provide public sector benchmarking data to the City, knowledge of best practices in performance measurement, and to provide training to facilitate the development and integration of a performance measurement system and approach that will enable the City to measure and improve its performance. The following process will be utilized in this engagement: • ICMA will work with the Newport Beach City Council Finance Committee (Finance Committee) to receive overall direction. • ICMA in all elements of the work plan will provide independent review of City documents, reports, data and information. • ICMA will meet with the City Manager, department heads and other City staff to develop recommended actions that will be presented to the Finance Committee for approval. • The Finance Committee will review, modify as necessary and take recommendations to the City Council for final approval. • ICMA will provide periodic status reports to the Finance Committee and the City Council. DELIVERABLES: (A -I) ICMA will undertake the following scope of work and provide the described project deliverables. All deliverables shall be in a format that is easily transferable to a performance based budgeting system. RV For the purpose of developing recommendations for the services to be included in the initial phase of the performance measurement effort, ICMA will perform the following: • Study the city's mission and goals and City Council priorities Deliverable A: ICMA shall review the City Council priorities, the City's newly adopted General Plan and Council adopted documents relating to benchmarking. Should ICMA find that a lack of clarity exists with stated Council priority and Council adopted documents, then ICMA shall work with City staff to draft recommendations for clarification to the Finance Committee for its review and subsequent review and approval by City Council. • Review the results of the Citizen Survey and identify principal areas of satisfaction and dissatisfaction with services among citizens. • Review historical and budgeted financial data for the City including revenue and operational costs and trends by department. • Review existing City data on Service Load Indicators. • Review resources (employees, support staff, consultants). • Review historical and budgeted capital improvement project loads for the City and the City's facilities replacement plan, as well as historical performance in delivering capital projects. Deliverable B: Based on an objective analysis of data and consultation with City staff, provide the Finance Committee with a list of recommended internal and external services for benchmarking in the initial phase of the benchmarking project. The Finance Committee will recommend the list of services for benchmarking to the City Council. Deliverable C: Identify additional service load indicators needed for the City of Newport Beach, based on indicators used successfully by other communities. Deliverable D: Provide the Finance Committee with ratios of service load data to resource profile (e.g., expenses, of employees, consultants, etc.) among comparable communities. Deliverable E: Recommend appropriate benchmarks for measuring the delivery of public works projects, based on those used successfully in other municipalities. 11 2nd payment installment due upon completion and acceptance of deliverables A -E. For the purpose of identifying recommended performance indicators to be developed in the initial phase of the performance measurement effort ICMA will provide the following: • Work with the City to augment the performance indicators proposed by the City staff with additional indicators that are currently being used in other jurisdictions and those that would best meet the needs of the City of Newport Beach. Deliverable F: Provide the Finance Committee with a list of performance indicators proposed by City staff/ICMA staff and a list of performance indicators used by comparable jurisdictions. Finance Committee to recommend to City Council a list of key performance indicators (KPI's) to be utilized for this initiative. For the purpose of assisting the City to establish the knowledge and systems to successfully initiate and sustain the performance measurement effort ICMA will provide the following: • Recommend and provide a course of training and development for the City staff that will equip them with the necessary understanding and knowledge to be able to manage and maintain an effective performance measurement system. Deliverable G: Provide recommendations on how best to assemble a central project team of City employees prepared to lead, coach, and facilitate the performance measurement effort. Deliverable H: Develop a curriculum for City-wide use designed to provide a clear understanding of the purpose and goals of the City of Newport Beach's performance measurement project and address the following issues; how employees contribute to and may be affected by the process, how to define services in terms of results, how to identify and interact with customers and stakeholders, how the performance measurement system integrates with other City systems and processes, such as planning, budgeting, and employee development and evaluation. • Recommend a list of peer cities to use as comparative performance measurement indicator norms Deliverable I: Develop a well - defined set of criteria or descriptor data that best characterizes the City of Newport Beach and can be used to identify peer jurisdictions 12 for comparative measurement and a list of peer cities that can be used as comparative performance measurement indicator norms. • Recommend a performance measurement methodology and process for collecting and utilizing the desired information and data needed to measure the efficiency, effectiveness, and quality of the services being provided by the city. Deliverable J: Develop recommendations to create a customized performance measurement system which meets the needs of the City of Newport Beach that is based on best practices in government performance measurement, enables comparison of performance results to those of benchmark jurisdictions, facilitates communication of results to and input on perceived performance from the City of Newport Beach residents and stakeholders, positively engages city staff, and that is sustainable within the capacity of city staff. 3rd payment installment due upon completion and acceptance of deliverables F, G, I, J and upon completion of 80% of deliverable H. The additional 20% of deliverable H will be included in final payment installment. Prepare a final report and presentation to the City Council. Deliverable K: Present a report of the entire project and formal presentation to the City Council. 4th and final payment installment due upon completion of remaining 20% of deliverable H, acceptance of final report by City Council, and all other remaining tasks. 13 EXHIBIT C ICMA Process to Assist the City of Newport Beach Craig Rapp, Director, 1CMA Consulting Services will provide oversight and direction on this project, will work with City leadership, and will be the primary contact for the City of Newport Beach. Brooke Myhre, Senior Consultant, will coordinate all project deliverables on site including review of documents, development of measures, and staff training. Don Gloo, Senior Management Associate, will provide assistance in the development of measures, provision of staff training, and the coordination of all additional CPM staff. Schedule TASK M O N T H 1 2 3 4 5 6 7 8 1. Study City Mission and Goals ✓ ✓ 2. Review Results of Citizen Surve ✓ ✓ 3 -6. Review and analysis of city and comparable jurisdiction data ✓ ✓ 7 Augment performance indicators proposed by city staff to meet the needs of the city/present to Finance Committee ✓ ✓ ✓ 8 Recommend and provide course of training for staff ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 9. Recommend list of peer cities ✓ ✓ 10. Recommend a performance measurement methodology and process that meets city needs ✓ ✓ ✓ 11. Prepare a final report and presentation to the City Council ✓ ✓ 14 X12 — l/s ok January 8, 2008 To: City Council and the City Manager From: Council Member Don Webb Subject: Performance Management System Item 12 We have a lot of priorities we are asking the staff to implement. We have a meeting this Saturday to discuss those priorities. I propose that we continue this item for two weeks to allow us an opportunity evaluate what priority a "performance measurement system" has compared to our other high priorities. Nowhere in the staff report or in the proposal, the contract or the scope of work is the City Staff time and costs estimated to implement and carry out this process. I suspect it will be significant. If the City Manager can estimate that for us by Saturday, it will give a base to use to see how this program fits in with the other important items we want to accomplish. Many of my questions listed below can better be discussed on Saturday rather than during tonight's meeting. Two weeks is not a critical delay for this project. Don Webb's questions. To perform the Services ICMA in Exhibit A- Scope of Work will: Review the City's mission and goals and City Council Priorities. 1. What mission, goals and CC priorities have we given them or expect them to use? Review "Council adopted documents related to benchmarking. 2. Which documents did we adopt related to benchmarking? Review the results of the Citizen Survey. 3. V►'hv is this contract which will use the Citizen Survey being let before the City Council has an opportunity to review the Survey? Deliverable B 4. Will the Finance Committee let the City Council know what the recommended list of services for benchmarking are before the consultant proceeds with the study? If not why? Deliverable D 5. During the proposal process we discussed comparable cities. It was my impression that the CC would be given the opportunity to review the comparable cities to be used, as well as to offer ones we thought would be appropriate. When will the CC be given the opportunity to review the chosen comparable cities? Page 12 first bullet 6. How many staff members will be needed to prepare the "performance indicators "? How many estimated staff person hours are needed to gather the information and prepare the "performance indicators "? Deliverable G Provide recommendations on how best to assemble a central project team of City employees prepared to lead, coach, and facilitate the performance measurement effort. 7. This is accompanied by a course of training and development. How much will it cost for ICMA to come in and train our project team because they are only providing the curriculum for the training and development in this contract? How much time will the key staff have to spend learning how to teach the rest of the staff the performance measurement effort? Deliverable H Develop a curriculum for City -wide use... 8. Are we going to train all city employees? If not what percentage? Will City staff do the training? For the trainers how much time away from their jobs will it take? If they don't do the training what are the estimated consultant costs to do the training? What is the total time and cost estimated to get all of our staff trained? Page 12 third bullet Recommend a list of peer cities to use as comparative performance indicator norms 9. Also see comment 5. Will the CC have any input into which cities are to be used? E Deliverable J 10. Only provides recommendations on how to create a performance measurement system. I thought that at the end of this process we would have a performance measurement system with benchmarks for the staff to implement. It looks like to me our consultant is creating a large book that makes a lot of recommendations and leaves us with a process that will require a huge amount of staff time to figure out how to implement. 11. Will we need to add to the staff a Performance Management Manager and several trained technicians to make sure this process is properly implemented? 12. A lot of new reports will need to be generated, how much staff time will be needed to do this? 13. Should we put together, from the beginning, performance measures for 13 Departments and over 800 employees? OR Should we look at our citizen survey and try to handle the areas where citizens see we need improvement first? Then use the process of establishing performance measures for those areas needing improvement as a foundation to build performance measures for all areas. 3