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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% O co 0 re Compensation 4a a E a) 4, W to L 0 > Z >1 Po o -,IJ cn >1 Po o -,IJ cn >1 Po o -,IJ cn 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 4E ■ • 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 ahttp://www.ccbsc cciscoreca =II i=7llxl 141 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?