HomeMy WebLinkAbout05/00/1989, 1,2,3 - 1989-91 FINANCIAL PLAN POLICIES, OBJECTIVES, AND COUNCIL WORK PROGRAM MEETING DATE:
city Of Sa►n IUiS OBISpo May
COUNCIL AGENDA REPORT
FROM: William C. Statler, Director of Finance W��9�
SUBJECT: 1989-91 FINANCIAL PLAN POLICIES, OBJECTIVES,
AND COUNCIL WORK PROGRAM
CAO RECOMMENDATION
Review and discuss the following policy matters relating to the 1989-91 Financial Plan:
• Council Work Program
• Significant New Policies ER E C E 1 V E, D
• Management Team Objectives MAY 2 61989
CITYM ERK
BACKGROUND SANUf1SrtP.�flO.Ca
One of the purposes of the City's Financial Plan is to identify key policies that guide its
preparation and execution as well as to identify major objectives to be accomplished during
the Financial Plan period. Section B (Policies and Objectives) of the Financial Plan is
devoted to these issues. Accordingly, the following materials are provided for Council review
and discussion:
Council Work Program
The status of the three prior Council Work Programs along with activities proposed for 1989-90
were reviewed and discussed at the Council's May 15, 1989 meeting. Based on these
discussions, a draft work program is provided on page 3.
,Significant New Policies
In addition to providing the General Budget Policies used in preparing the Financial Plan,
Section B of the document also provides for the establishment of new policies that concern
specific programs or management guidelines that relate to the City's financial planning
activities. Provided on pages 4 to 6 are two new policies recommended for inclusion in the
1989-91 Financial Plan:
• Productivity
• Contracting for Services
Additionally, several policy revisions were also recommended in the Comprehensive Financial
Management Plan Executive Summary (pages 11 to 14 of that document) which are also proposed
for inclusion in 1989-91 Financial Plan as General Budget Policies.
Management Team Obiectives
The Management Team Objectives provide an organizational focus for those key activities over
the next two years which concern the operation of the whole City rather than
(IN" acy of san luis OBISpo
RGe COUNCIL AGENDA REPORT
individual departments or programs. Although some of the proposed Management Team Objectives
may reflect a more internal focus than the Council Work Program, Management Team Objectives
should generally reflect and support the activities included in the Council's Work Program.
In developing and recommending individual Management Team Objectives as distinct objectives
from those included in each operating program, the following criteria were considered:
• Does it affect the operations and staffing needs of more than one department?
• Is it necessary for this objective to be accomplished in order for all operations
within the City to be successful?
• Is it a high priority for the organization?
• Will its successful achievement be facilitated by the support of the entire
Management Team?
Provided on pages 7 to 12 are the six Management Team Objectives proposed for 1989-91:
• Productivity Review • Long-Term Financial Health
• Organizational Development • Community Relations
• General Plan Update • Public Facilities Development
SUMMARY
One of the key purposes of the City's financial planning efforts is to identify the major
policies and objectives that will guide the City's delivery of services over the next two
years. Accordingly, the attached Council Work Program, Significant New Policies, and
Management Team Objectives have been prepared and presented for City Council review and
discussion.
APPROVALS:
City A "inistrative Officer
I
FP2/WKPRGRPT
POLICIES AND OBJECTIVES
COUNCIL WORK PROGRAM
A. PUBLIC UTILITIES
1. Continue to develop and implement plans for obtaining supplemental water resources.
2. Continue to implement the Wastewater Management Plan including upgrading the
treatment plant and collection system and providing for the beneficial use of the
treated effluent.
B. PUBLIC SAFETY
1. Review and adopt a Fire Master Plan.
2. Review and adopt a five-year Police Services Plan
3. Review the feasibility of an augmented tracking program for hazardous material
storage and waste disposal..
C. TRANSPORTATION
1. Review and adopt a revised Circulation Element in conjunction with the comprehensive
General Plan update.
D. COMMUNITY DEVELOPMENT
1. Review and adopt a comprehensive revision to the General Plan including: land use,
circulation, parks and open space, downtown strategies, annexation, and noise.
2. Review and adopt the Airport Area Specific Plan.
E. LEISURE, CULTURAL, AND SOCIAL SERVICES
1. Continue to support a three-party agreement to develop a performing arts facility at
Cal Poly.
2. Review and adopt a revised Parks and Open Space Element in conjunction with the
General Plan update, including a comprehensive open space acquisition and development.
program.
F. COUNCIL AND ADMINISTRATION
1. Review and implement productivity and revenue programs that will ensure the long-term
financial health of the City.
2 Continue to develop and implement strategies for improved intergovernmental relations
at the local, state, and federal levet.
3. Develop and implement community relations strategies that will better communicate the
results of the City's programs to our citizens.
4. Develop and implement an ongoing program to familiarize the Council with departmental
operations and activities.
W1CPRGPOL
POLICIES AND OBJECTIVES
SIGNIFICANT NEW POLICIES - PRODUCTIVITY
Ensuring the "delivery of service with value for cost" is one of the key concepts embodied in
the City's Mission Statement (San Luis Obispo Style - Quality With Vision). To this end, the
City will constantly monitor and review its methods of operation to ensure that services
continue to be delivered in the most cost-effective manner possible. This review process
encompasses a wide range of productivity issues, including:
1. Analyzing systems and procedures to identify and remove unnecessary review requirements.
2. Evaluating the ability of new technologies and related capital investments to improve
productivity.
3. Investing in the organization's most valuable asset - its human capital - by developing
the skills and abilities of all City employees, with special emphasis on first-line
supervisors.
4. Developing and implementing appropriate methods of recognizing and rewarding exceptional
employee performance.
5. Evaluating the ability of the private sector to perform the same level of service at an a
lower cost.
6. Periodic formal review of operations on a systematic, ongoing basis.
7. Maintaining a decentralized approach in managing the City's support service functions.
Although some level of centralization is necessary for review and control purposes,
decentralization supports productivity by:
• Encouraging accountability by delegating responsibility to the lowest possible
level.
• Stimulating creativity, innovation, and individual initiative.
• Reducing the administrative cost of operation by eliminating unnecessary review
Procedures.
s Improving the organization's ability to respond to changing needs and identify
and implement cost-saving programs.
• Assigning responsibility for effective operations and citizen responsiveness to
the department.
saNEWaoL
POLICIES AND OBJECTIVES
SIGNIFICANT NEW POLICIES - CONTRACTING FOR SERVICES
OVERVIEW
Increasingly, contract services have been used by the City in a variety of areas, including:
consultant services, transit operations, building and landscape maintenance, and building plan
checking. However, there are further opportunities for the use of this approach in delivering
City services. The need to address this issue was reflected in the 1987-89 Financial Plan in
two ways:
• A policy requiring evaluation of ability of the private sector to deliver the service
in conjunction with any requests for additional regular staffing.
• Pilot programs using the private sector for landscape maintenance, tree trimming, and
building maintenance.
The purpose of this policy is to formalize the City's commitment to using private sector
resources in delivering municipal services as a key element in our continuing efforts to
provide cost-effective services.
POLICY SCOPE
At least four types of private sector services that the City might use fall within the scope
of this policy:
Construction Contracts - Under the City Charter, all construction projects with a cost in
excess of $5,000 must be performed by the private sector pursuant to competitive bidding
procedures.
Professional and Special Services - For non-construction purposes, the City has had the
most experience with professional and special service contracts, which include engineers,
architects, attorneys, underwriters, financial advisors, and auditors.
Temoorary Outside Emplovment Agency (OEA) - For short-term, peak workload assignments, the
City might use personnel from an OEA. Although OEA staff work under close supervision of
City staff, they are employees of the OEA, not the City.
Onerations and Maintenance - Private sector contracts can be used to perform a broad range
of ongoing operating and maintenance services.
GENERAL POLICY STATEMENT
• Subject to the evaluation criteria outlined below, private sector delivery of
services provides the City with a significant opportunity for cost containment and
productivity enhancements.
e In evaluating the costs of private . sector contracts compared with in-house
performance of the service, indirect, direct, and contract administration costs of
the City will be identified and considered.
a Whenever private sector providers are available and can meet established service
levels as cost-effectively as in-house staff, they will be considered.
• For programs and activities currently provided by City employees, conversions to
contract services will generally be made through attrition.
POLICIES AND OBJECTIVES
SIGNIFICANT NEW POLICIES - CONTRACTING FOR SERVICES (continued)
EVALUATION CRITERIA
Within the general policy guidelines stated above, the cost-effectiveness of contract services
in meeting established service levels will be determined on a case-by-case basis using the
following criteria:
• Is a sufficient private sector market available to deliver this service?
• Can the contract be effectively and efficiently administered?
• What are the consequences if the contractor fails to perform, and can the contract
reasonably be written to compensate the City for any such damages?
• Can a private sector contractor better respond to expansions, contractions, or
special requirements of the service?
• Can the work scope be sufficiently defined to ensure that competing proposals can be
fairly and fully evaluated, as well as the contractor's performance after bid award?
• Does the use of contract services provide us with an opportunity to redefine service
levels?
• Will the contract limit our ability to deliver emergency or other high priority
services?
• Overall, can the City successfully delegate the performance of the service but still
retain accountability and responsibility for its delivery?
89-91FP2/SGNEYPOL
POLICIES AND OBJECTIVES
MANAGEMENT TEAM OBJECTIVE - PRODUCTIVITY REVIEW
OBJECTIVE
To provide for systematic, ongoing review of City operations to improve the delivery of
service.
BACKGROUND
This Management Team Objective has been developed as an outgrowth of the Productivity Policy
introduced in this Financial Plan as well as the Human Resource Management Policy introduced
two years ago. At least one operation will be evaluated each year in order to identify
opportunities for improving the cost-effective delivery of services. With this ongoing review
approach, it is anticipated that all City operations will receive a comprehensive review of
their organization, staffing, goals, objectives, and activities over a continuing five to six
year cycle.
These operational reviews will be performed using a combination of in-house and consultant
resources depending on the complexity, timing, and resources available to perform the review.
Building on the Organization Development. Management Team Objective, it is expected that the
Mid-Managers will participate in the implementation of this objective. Due to their heavy
reliance on temporary employees and opportunities for contract services, Recreation, Parks and
Landscape Maintenance, and Parking will be considered for review during 1989-91.
ACTION
1. Draft proposed workscope, develop review team concept
and membership, and identify required level of
consultant assistance, if any. 1/90
2A. Prepare analysis and evaluation of operations using criteria in the
Human Resource Management, Productivity, and Contracting Policies. 5/90
2B. Concurrently review the provisions of the Human Resource Management
Policy as they relate to temporary staffing, role of regular
employees, alternate work schedules, and the use of flex-time. .5/90
3. Review preliminary report findings with affected departments. 6/90
4. Submittal of draft recommendations to the CAO and Management Team,
including any recommended revisions to the City's Human
Resource Management Policy. 7/90
5. Presentation of review findings and recommendations
to the City Council for their approval and adoption as necessary. 8/90
6. Develop productivity review program for 1990-91. 8/90
OUTCOME
COST-EFFECTIVE DELIVERY OF SERVICE: Improvements in operations to ensure that City services
are responsive to citizen needs and are delivered efficiently and effectively.
MrOPRODR
POLICIES AND OBJECTIVES
MANAGEMENT TEAM OBJECTIVE - ORGANIZATIONAL DEVELOPMENT
OBJECTIVE
To provide a framework for organizational development that will improve the efficiency and
effectiveness of City operations.
BACKGROUND
Working from the foundation of the 1987-89 Organizational Development objective, the
Management Team will work to more effectively involve middle managers into City operations.
Additionally, the Management Team realizes a need to rebuild and redefine roles as a result of
the changing membership and organizational environment.
ACTION
A. MANAGEMENT TEAM
1. Organize team-building activities focusing on
organizational development. Ongoing
2. Develop and implement strategies to facilitate Management Team
and Mid-Manager communication. 12/89
3. Develop and implement an action plan to strengthen the working
relationship of the City Council and Management Team. 1/90
B. MID-MANAGERS
1. Establish a Steering Committee with representatives
from throughout the organization. 7/89
2. Prepare a mission statement for the mid-management group. 8/89
3. Develop specific objectives to meet established
mid-management goals. 12/89
4. Create subcommittees to work on implementation objectives. 2/90
5. Identify specific projects for mid-management groups to
address during the second year. 6/90
OUTCOME
TEAM DEVELOPMENT:
A. Build and reinforce the Management Team and Mid-Manager Group.
B. Strengthen the working relationship between the Council and Management Team.
ORGNZOEV
• j
POLICIES AND OBJECTIVES
MANAGEMENT TEAM OBJECTIVE- COMPLETION OF GENERAL PLAN UPDATE
OBJECTIVE
To provide comprehensive planning and development policies for the City.
BACKGROUND
For approximately 18 months, the City has been involved in an update of three critical
elements of the General Plan' Land Use, Circulation, and Parks/Open Space. Completion of this
update is critically important in guiding the City's future.
ACTION
A. LAND USE AND CIRCULATION ELEMENTS
1. Prepare and recommend policies for the Land Use Element. 10/89
2. Complete Phase 11 of the Circulation Element for public review. 4/90
3. Complete the Draft Environmental Impact Report. 8/90
4. Complete the Draft Land Use Element for public review. 9/90
5. Final Adoption of Land Use and Circulation Elements by City Council. 1/91
B. PARKS AND OPEN SPACE ELEMENT
1. Complete study of stream corridors and draft stream
protection/access policies. 8/89
2. Prepare and recommend open space policies and acquisition
program, including financing strategies, for public review. 4/90
3. Final adoption of Parks and Open Sapce Element by City Council. 1/91
4. Begin implementation of acquisition and development
of the open space program. 1/91
OUTCOME
UPDATED GENERAL PLAN: Land Use, Circulation, and Parks/Open Space Elements, with a
comprehensive open space acquisition and development program.
MTOGENPL
f
POLICIES AND OBJECTIVES
MANAGEMENT TEAM OBJECTIVE - LONG-TERM FINANCIAL HEALTH
OBJECTIVE
To implement programs that will ensure the long-term financial health of the City.
BACKGROUND
The 1987-89 Financial Plan included the performance of a Comprehensive Financial
Management Plan (CFMP) and the related development of financial management tools as key
Management Team Objectives. The resulting Financial Services Study, prepared with
consultant assistance from the firms of Evensen Dodge and Vertex Cost Systems, was
completed during this time frame and presented to the Council as an integral component of
the 1989-91 Financial Plan development and review process.
The Financial Services Study presented a variety of findings and recommendations
regarding City financial management policies as well as new and enhanced revenue sources
that will be required if the City is to maintain current operating program levels and
accomplish its capital improvement program goals through the year 2000.
ACTION
1. Present the findings and recommendations of the
Financial Services Study to community groups. 8/89
2. Incorporate the comments and feedback from the
Council and community into the CFMP. 9/89
3. Develop draft policy guidelines for the proportion of
non-enterprise services to be funded through user fees. 10/89
4. Develop draft programs and policies for ongoing rate
and fee review. 11/89
5. Present proposed implementation actions to Council for review
and discussion. 1/90
6. Adopt implementing ordinances and resolutions. 3/90
OUTCOME
FISCAL INDEPENDENCE: Implementation of financing policies, new revenue sources, and rate
structures that will support the City's commitment to an excellent program of municipal
services and the construction of necessary public facilities.
89-91 RUMTUSINP
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POLICIES AND OBJECTIVES
MANAGEMENT TEAM OBJECTIVE - COMMUNITY RELATIONS
OBJECTIVE
To identify and implement methods of augmenting and improving our current community relation
efforts by:
1. Informing citizens about important polices, activities, and operations.
2. Improving citizen access to City government.
3. Being responsive to citizen inquiries and concerns.
BACKGROUND
The City Council and Management Team have long recognized the importance of community
relations in meeting the service delivery expectations of our citizens. The City newsletter,
Thursday night information booth, and the water conservation program are recent examples of
City-wide efforts to enhance our community relation efforts.
ACTION
1. Design an ongoing program to improve community relations. 9/89
2. Assign coordinator for community relations program. 10/89
3. Evaluate alternatives and begin pilot implementation. 11/89
4. Convert successful implementation programs to departmental objectives. 5/90
5. Fully integrate community relations programs and philosophy with
City-wide operations. 11/90
OUTCOME
EFFECTIVE COMMUNITY RELATIONS: A comprehensive community relations program that expands on
existing efforts and is fully operational.
COMRELAT
POLICIES AND OBJECTIVES
MANAGEMENT TEAM OBJECTIVE - PUBLIC FACILITY DEVELOPMENT
OBJECTIVE
To provide adequate public facilities for the effective and efficient delivery of City
"services.
BACKGROUND
During discussions of the 1987-89 Financial Plan, the City Council requested an assessment of
existing City facilities and future facility requirements. In November of 1988, the Council
approved the Overview and Options phase of the San Luis Obispo Facility Master Plan.
Additional study of Civic Center improvements and Fire Station One has been authorized, and
completion of these facilities is scheduled for the 1989-91 time frame.
ACTION
1. Complete the remaining phases of Facility Master Plan including
long range schedule for the development of public facilities. 9/89
2. Complete the site analysis, selection, and acquisition
for Fire Station One replacement. 10/89
3. Select the design strategy for Civic Center expansion. 1/90
4. Study and design Fire Station One replacement
(Planning approvals) 2/90
5. Schedule and implement financing plans for the facilities. 7/90
6. Complete plans for the Civic Center expansion, and Fire Station One
replacement. 7/90
7. Begin construction of these two facilities. 11/90
OUTCOME
FACILITY MASTER PLAN IMPLEMENTATION: Completion of schedule for facilities development and
the construction of the Civic Center and Fire Station One projects.
MTOFACIL