HomeMy WebLinkAboutAgenda Packet City Council - 05/10/2011 (W)Budget Work Shop
May 10, 2011
Employee Compel 'sat loll.
Terforinatice Metric Systern/13alanced Score Card
Contract Maiiagernetit
Employee Compensation
What is the purpose of an organization's compensation
P
lan:
recruit and retain qualified employees.
increase or maintain morale/satisfaction.
reward and encourage peak performance.
achieve internal and external equity.
reduce turnover and encourage loyalty.
History of the City's Compensation Plan
2001-02 —Compensation and Classification Study conducted
to meet departmental business objectives such as:
Replacing an aging and obsolete system
Attract and retain employees
Support re-engineering efforts for utility, Solid Waste and Park
Maintenance Division through development of a skill -based pay
system
Provide internal equity of jobs within designated pay levels
Designing competitive pay plans
Provide the City with an affordable phased -in implementation plan
that began in Fiscal Year 2002-03
2002-03 — Phase I implementation. Most employees received a
pay increase based on a pay range in each pay plan that was
adjusted that better reflected 90% of the competitive labor
market rate. Other employees received pay adjustments
ranging from I% to 2.3% based on longevity and location of
their pay ranges at the time of transition
2003-04 — Phase 11 implementation. On July 2003 all employees
received a 3% pay increase, except for employees at the
maximum of their ranges who received a 2% pay increase.
Effective December 1, 2003 all employees receive a 2%
increase, except employees who already reached the
maximum of their pay range.
4
00:.. 2004-05 — Phase!!! Implementation (partial only). A 3%
increase was concurrently implemented for all
employees.
111. 2005-06 — Phase IV Implementation (partial only. Effective
August 5, 2005 all non-exempt employees (hourly)
employees receive a 2.25% pay increase.
00' 2006-07 — Phase V implementation. No pay adjustments
were adopted
2007-08 - Effective August 2007 all employees received a
3% pay increase.
2008-09 - Effective November 4, 2008 all employees
except employees in Information Technology Pay Plans
were granted a 2.5% pay increase
2009-10 — No pay increases for civilian employees. Pay
increases for Municipal Court Judges were implemented.
The increases ranged from 2.5% to 4.9% and were phased
on August 2009, January 2010 and May 2010.
00:.. 2010-11 — No pay increases for civilian staff were
granted.
7
Skill Based Pay Programs — Support the development of
multi -skilled workers through rewarding employees who
continuously learn and acquire complex core skills
required for a department to meet its business
objectives.
Implementation Schedule:
August 2003 through June 2004 —Water/Waste Water
April 2004 -MetroCom
February 2005 — Storm Water/Gas
August 2007 - Park Operations
Competency Based Career Ladders
January 2005 - Information Technology
September 2006 Work Coordinator in Slcill Based Worker
Departments
November 2007 -Police Identification Staff Career Ladder
Municipal Court Judge Career Ladder is being developed
Engineer Career Ladder is being developed
Each year the Human Resources Department conducts a
market study to determine how our compensation pay
ranges and actual pay rates compare to other cities such
as:
Amarrillo Laredo
Austin -Lubbock
Dallas -McAllen
El Paso - Pasedena
Ft. Worth -San Antonio
Garland -Victoria
Galveston Waco
Houston
I0
2011 Market Study
Executive
Executive Compensation Ratio 75%
Average
85%
82% 89%
2011 Market Study
Exempt
Exempt Compensation Ratio
Average
12
95%
9I%
2011 Market Study
Legal
Legal Compensation Ratio
Average
91%
96%
71%
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2011 Market Study
Engineering -Private
Engineering Compensation Ratio
Average
19
81%
76%
77%
2011 Market Study
IT -Private
IT Compensation Ratio Average
20
9 I% 89%
88%
93%
2011 Market Study
Health -Private
Health Compensation Ratio Average
21
88%
85%
85%
95%
Next Step
Staff will further evaluate the need for improvements to
the compensation plan and as a result of this evaluation
and with consideration of current financial constraints an
action plan may be developed, at the City Manager's
direction, for further Council consideration.
22
ORGANIZATIONAL PERFORMANCE
METRICS
Balanced
Scorecard Ove
iew
Consistency across departments
Mission critical focus
Fewer, more meaningful measures
Action oriented
Use computer data (less compilation)
Focus on performance — not on reporting
Adopted Balanced Scorecard to Focus
R
ight Measures
Are we satisfying our customers?
Are we fiscally responsible
and financially viable?
26
P
ro
cess
Are we executing effectively ant
efficiently?
Are we poised to adapt
and improve over time?
Harvesting Real Time
Data Supports Daily
Operations
,,,_,_,____
PeopleSoft
H R,,,---
%,.._.._______.__
,------ MetroCom
MAXIMO
Dispatch
Firehouse_
27
HTE
Daily
Operations
Moves City Toward Performance
Management "Best Practices"
Counting Outputs
Reports
(After the Fact)
Compiling Lots of Dat
by Hand
28
Measuring Outcomes That
Matter
Actions
(Real Time)
Harvesting Data From
Our Business Systems
All Levels Benefit:
Tailored Scorecards Focus on
Appropriate Level of Detail
29
Visioning
— — — •
Strategic
Tactical
Operational
Linked City's Mission to ci
Scorecard
The City of Corpus Christi is dedicated to delivering
responsive services that address our diverse community's
needs and enhance the quality of life in our All -America
City. We will accomplish this through fiscal discipline,
continuous improvement, straight -forward communication,
wise stewardship of resources, and excellent customer service.
30
City Manager & ACMs
Developed City Scorecard
QUADRANT
GOAL
OBJECTIVE
METRIC
Customer
i
Provresolve
Customer Service
Respond to and
requests in a
timely fashion.
On-time Customer Response
Promote 11 1
Maintain clean, safe
neighborhoods
Crime Rate per Capita
On-time Code Enforcement
Financial
i 1
Exerci i i
Manage spending to
meet operating
budgets
Budget Spent to Date
Provide
Stewardship
Financial
Reduce unit cost of
service
Unit Service Costs on Target
Process
Effective r
Coordination and
Communication
Provide responsive,
reliable internal
services
On-time Internal Services
Equipment Availability
Sustainability
1
Have a High Quality
(Skilled) Workforce
Retain qualified
employees
Employee Turnover
Defined Scorecard
Launched Performance
Dashboard
Developed Departmental & ACM Cards that "Roll Up"
to the City Card
Created a Web Dashboard
to View Data Directly from
all Major Business Systems
Streamlined Reporting to
Align With Scorecard
Establishing Baseline
3 2.
Departmental Linkage to City Mission, Goal, Objective
GOAL
OBJECTIVE
METRIC
DEPARTMENTAL METRICS
Provide Excellent
Customer Service
Respond to &
resolve
requests in a
timely fashion
On-time
Customer
Response
Police - % of Emergency Priority 0 & 1) Call Responses
Under 8 minutes and 22 Seconds
Gas - % Responses to Gas Leak Reports < 40 min.
WW - % Initial Responses to Customer Reported Backup
in Home or Business < 4 hrs
Promote Quality
of Life
Maintain clean,
safe,
neighborhoods
Crime Rate per
Capita
Police - Monthly Crime Rate (per capita) (m)
On-time Code
Enforcement
NS - % of Property/Premises Care Violations Mitigated
or Resolved < 30 days
Fire - %Fire Code Violations Mitigated w/in 30 Days (m)
Exercise Fiscal
Discipline
Manage spending
to meet operating
budgets
Budget Spent to
Date
All - % Expenditures Spent to Date
All - % Revenues Collected to Date
Provide Wise
Stewardship of Fin.
Resources
Reduce unit
cost of service
Unit Service
Costs on Target
All - % Reduction in workers compensation costs
Gas - % of New Tap Installations Costing < $200
Effective Internal
Coordination and
Communication
Provide
responsive,
reliable internal
services
On-time Internal
Services
Maximo - % of Actual Labor Planned & Scheduled
Maximo - Ratio of Actual Workload to Budgeted Labor
Equipment
Availability
Fleet — Avail. of Required SW Side Ldg Refuse Trucks
Fleet - Availability of Required Marked Police Vehicles
Have a High Quality
(Skilled) Workforce
Retain qualified
employees
Employee
Turnover
All - % of Workforce Leaving City Employment — (Total,
Voluntary, Involuntary)
Scorecard Drives Daily Operations
34
performance
Take steps to
(i.e., Re -assign
II
directly
improve
staff for faster
rforman
response t
pe
pe
ce
m
es)
BSC Drives Continuous Improvement
BSC targets are "stretch goals"
When all our "actuals" are on target
(green),
it's time to aim higher (new target),
or to include more metrics
When an "actual" misses targE
termine cause and take actic
needed
BSC Drives Key Programs or Initiatives
• Root and detailed cause analysis
• Corrective action plans/initiatives
• Budgetary Impact
Objective Measure
Statement of what
strategy must
achieve
How success will
be measured
Target
Level of
performance
needed
1 1
Balanced
ective
Scorecard
Measure Ta
rg
Respond to/Resolve
Requests in Timely
36 Fashion
Average Call
Wait Times
< 90
seconds
Initiative
Key action required
to achieve targets
n
t
Acl
at
ve
Training
More Staff
Extended Hour
http://vmmccbsc.cc scorecardisioreiardmain,htm
8
City of Corpus Christi
Balanced Scorecard
About Balanced Scorecard
Print: Card Targets
Card:
eriod;
Cid
•
Fiscal Year
■
2007-08
■
1
1
1
Select a scorecard and a time
period: day, week, month, quarter,
or fiscal year.
1
1
1
1
1
City of Corpus Christi
Balanced Scorecard
About Balanced Scorecard
Pmt Card
Card:
Period:
38
I Can select a scorecard for
1 any group or department.
J#i:Irmial-aim ALCM Grp
-Coirrnmuly Development
- Economic Development
Services
— Fniance
— General Services (Facey Maiienan i
- General Services (Fleet)
- Human Resorrces
— Management and Budget
—
Municipal kffornrakon Syslems
- (ay Managers [fig
F
Aviaknn
Iliorney
_
Fre
— Cirri
— Police
- — Pubic r*ommaion
=De�relopmert M Group
Development Services
— Health
— Human Relaioos
— ,..s
— Museum
Neighbourhood Services
— Park and Re reakion
- Pubic Werk ACM Group
Engireetirg
— Gas
— Said Was Golleccion
Can chart "actual" over last year
to monitor trends.
+:11y of +:orl us I. hiisti Balarli:+ 1 i:oi is al - osoft Internet [:=:I Ioi i
I - II IIxi
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■
•
http: //www . ccbsr=, ii Jsioreiard i sioreiardmain, htm
MI=
Window [Auto Scroll] .
City of Corpus Christi
Balanced Scorecard
Card:
Period: Month
Can download two years of "actuals" years
11 for analysis.
1'
1
1
1
1
1
1
1
1
Esc a. a: lsc of w:.11 dh::,I dtne ,-e1 cfill a:jl[IId=I -1.114 losoft Internet E�:p IOIeI
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Window [Auto Scroll] II.
Card Owner
start : : CC BSC Update :
start = . CC BSC update 111808
Align Organization Around
Balanced Scorecard
Monthly Reviews
BSC Accessible to All City Staff
Monthly Reporting Organized Around BSC
Leadership Development Program
BSC Video
110, This performance metric tool is only one possibility
and requires further review by the City Manager.
Contract Performance/Cost Management
Summary of Services Outsourced by the City
This year approximately $142.3 million of service will be
contracted out by the City
The majority ($128.2 million or 78%) is contracted through
the Engineering Department for construction and professional
services
$13.6 million is contract in the General Fund and $9. I million
in the Enterprise Funds Water Gas, Wastewater and Storm
Water)
42
Contract Performance/Cost Management
The City uses a variety of processes to procure contracts
governed by Federal or State law, City Charter or
organizational policy:
Forma or Seal Bids
Informal bids
Request for Proposals
Request for Qualifications
Request for Information
Etc.
Other consideration is given to contracts that are professional
services as defined by State law
All contracts over $50,000 require Council approval
Responsibility for procurement may reside with Purchasing
Division, Engineering Department, individual Department and
possibly a contracted consulting firm
43
Contract Performance/Cost Management
'i .•i D. :•r w•_4117._.11 . _•4 :.[•tw =41 C... M.= . _•
0 Accurately forecast the demand for outsourced resource.
0 Align the goals and objectives of both the contractor ractor and the city. Clearly identify what is
expected to be accomplished and when it should be accomplished.
0. Measure accurately what work is being accomplished. Match the work performed with
invoices.
0 jointly with the contractor, inno rate, re-engineer work processes and achieve technology
inaction to improve productivityefficiencyand Ii Use rewards and incentives when
possible for innvation nd improvements.
0 Build in the contract gain sharing incentives and perces.
0 Ensure transparency and accountability.
0 plan for change. Build in as much flexibility as possible. Neste and re -negotiate agreements.
44
Contract Performance/Cost Management
Manage contract cycle, maintain version history and control change
process. Keep the contract and related documents up to date.
Hope for the best but prepare for the worst. Difficult issues might
arise along the way and hurt the outsourcing relationship.
Preparation should start before the contract is signed. Be clear on
dispute resolution, termination rights and handling of
subcontractors. Have a clear exit strategy.
When possible, pricing should be negotiated in order to reflect
planned growth and projected as well as un -projected peak demand.
Demand should be quantified in advance to obtain a more favorable
price. Un -projected demand will likely drive costs higher. Reserve
the right to renegotiate requirements and pricing if necessary
45
Contract Performance/Cost Management
The inclusion of these guidelines in a contracting process
requires involvement of:
Purchasing
Finance
Legal
Engineering
Department receiving services
Assistant City Manager
City Manager
46
Contract Performance/Cost Management
Through the budget process staff will be able to indentify
funds proposed to be used for contracting of services.
Where possible, staff will be able to share with Council,
as requested, the value, term vendor and description of
the service.
Throughout the fiscal year staff will work to closely
adhere to procurement laws and policies.
Staff will seek to develop internal policies and reporting
methods that will improve the organization's adherence
to the standard contract management guidelines
mentioned earlier in this presentation.
47
QUESTIONS?