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