HomeMy WebLinkAboutR-98-0368J-98-204
4/1 /98
RESOLUTION NO. 9 8` 368
A RESOLUTION, WITH ATTACHMENT, AUTHORIZING THE
CITY MANAGER TO EXECUTE AN AMENDMENT, IN A FORM
ACCEPTABLE TO THE CITY ATTORNEY, TO THE
PROFESSIONAL SERVICES AGREEMENT (PSA) WITH KPMG
PEAT MARWICK LLP (KPMG), THEREBY: 1) PROCURING
ADDITIONAL SERVICES FROM KPMG AS PROVIDED FOR IN
SAID PSA, 2) INCREASING THE FEE FOR SAID SERVICES IN
THE AMOUNT OF $130,000, FROM $200,000 TO $330,000,
AND 3) EXTENDING THE DEADLINE FOR THE PERFORMANCE
OF SAID SERVICES FROM JANUARY 31, 1998 TO
SEPTEMBER 30, 1998; ALLOCATING ADDITIONAL FUNDS, IN
THE AMOUNT OF $130,000, FROM SPECIAL PROGRAMS
AND ACCOUNTS CONTINGENCY FUND, CODE NO. 921002-
270.
WHEREAS, pursuant to Resolution No. 96-805, adopted October 30, 1996, the
City Commission approved a Professional Services Agreement (PSA) with KPMG Peat
Marwick LLP for the provision of external auditing services; and
WHEREAS, pursuant to Resolution No. 97-910, adopted December 9, 1997, the
City Commission authorized the City Manager to expend monies from the Special Programs
and Accounts Contingency Fund, in an amount not to exceed $200,000, for the purpose
of meeting the requirements of the Oversight Board through January 31, 1998; and
WHEREAS, said Resolution further stipulated that an accounting be provided for all
expenditures made by Rodriguez, Trueba & Company and KPMG Peat Marwick LLP; and
ATTACHMENT (SI
CONTAINED
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Resolution No.
98- 368
WHEREAS, it is necessary for KPMG to provide Additional Services, as attached
hereto and made a part hereof, for the preparation of the Operational Plan for the City of
Miami, which will necessitate extending the deadline for the completion of this project
from January 31, 1998 to September 30, 1998; and
WHEREAS, additional funds for the Additional Services, in the amount of
$130,000, are available from Special Programs & Accounts Contingency Fund, Code No.
921002-270;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF
MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution
are hereby adopted by reference thereto and incorporated herein as if fully set forth in this
Section.
Section 2. The City Manager is hereby authorized' to execute an amendment, in
a form acceptable to the City Attorney, to the Professional Services Agreement (PSA) with
KPMG Peat Marwick LLP (KPMG), thereby: 1) procuring Additional Services from KPMG as
provided for in said PSA, 2) increasing the fee for said services in the amount of
$130,000, from $200,000 to $330,000, and 3) extending the deadline for the
performance of said services from January 31, 1998 to September 30, 1998, with
additional funds therefor, in the amount of $130,000, hereby allocated from Special
Programs and Accounts Contingency Fund, Code No. 921002-270.
Section 3. This Resolution shall become effective immediately upon its adoption.
I The herein authorization is further subject to compliance with all requirements that may be imposed by the
City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions.
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98- 368
PASSED AND ADOPTED this 14th day of April , 1998.
JOE CAROLLO, MAYOR
ATTEST:
WALTER J. FOEMAN, CITY CLERK
APPROVED AS TO FORM AND RRECTNESS:
kEL WARD WELL
TERICITY RNEY
W2281:CSK
In accordance with Miami Code Sec. 2-86, since the Mayor did not indicate approval of
ftft 'igoation by signing it in the designated place provided, said legislation now
becormes Wac Live with the elapse often (10) days from the date of Comm' ion ac icn
jaguft awft u ittwut the Mayor exe ' i eto,
Wa r J. , City Clerk
3-
98- 368
February 24, 1998
Mr. Jose Garcia -Pedrosa, City Manager
City of Miami
3500 Pan American Dr.
Miami, Florida 33133
Dear Mr. Garcia -Pedrosa:
Operational Plan for the City of Miami
KPMG Peat Marwick is pleased to submit this revised work plan for assisting the City of
Miami in developing an operational plan. This revised work plan includes more detail for
each of the tasks we propose to carry out, adjusts for the delay in the start date, and
clarifies the project budget.
As indicated in Chapter I1 of the Revised Five Year Financial Plan that the City
Commission Passed on December 30, 1997, the purpose of operational plans is:
"To change the strategic direction of the City and the Departments within it...
Carrying out this mandate requires broad based participation at every level of the
organization. We have developed a project task plan that is rooted in participation and
consensus building -- those who will be carrying out a change in strategic direction are
given an opportunity to share in the determination of that new direction. The project
objective as defined in the Five Year Plan is to "develop an operational plan and to
establish a process for updating and modifying the plan in future years."
The work plan for this project is organized into the following four components:
• An operational plan for the Department of Public Works -- the "pilot project" (final
report issued February 20, 1998)
• An operational plan for the City as a whole -- the "City-wide" operational plan
(Attachment A)
• A "consultant driven" operational plan for the City Attorney and for the City Clerk
(Attachment B)
• Operational plans for all remaining City departments (Attachment C)
The level of effort and the project approach are different for each of these components.
Attached are work plans for the three components of the operational plan project that
have yet to begin. Also attached is the methodology section from the Public Works
Operational Plan which describes how we conducted the pilot project (Attachment D).
The purpose of this letter is to convey our understanding of the project and to provide a
detailed task plan and budget consistent with the scope and objectives of the project.
With your concurrence, we are prepared to begin the three remaining operational
planning projects immediately.
Project Schedule
We have developed a project schedule for completing all the operational plans within 7
months. Adherence to this schedule depends upon the efforts of City employees
participating in the process.
We expect for the operational planning process for the departments and for the City
Attorney and City Clerk to begin immediately. The City-wide operational plan, which
builds upon information gathered through the department level operational plans, will
begin by May 1 and last through September 30.
Staffing Plan
To carry out this project, we have put together a team of public services consultants with
expertise in strategic and operational planning, benchmarking, and performance
measurement. In addition to myself, Mike Walsh a principal in our Public Service
practice, will be providing project direction and overall guidance. Other key members of
our project team include the following:
• Aaron Estis will serve as the Project Manager for this project. He is a senior
manager in our public services practice and has participated in a wide range of
consulting assignments covering management performance, work flow and process
analysis, organizational analysis, operations management, and public policy.
• Stephanie Stern will serve as a lead consultant for this project. She is a consultant in
our public service practice and participated in the pilot project with the Department of
Public Works. Stephanie has a wide range of experience with government
organizations at the State, county, and municipal levels.
• Mariano Rodriquez is a partner in the CPA firm of Rodriguez, Trueba & Company.
He will lead our efforts at identifying and interviewing stakeholders.
AWNEK
ro k
We will supplement these professionals with additional staff resources from our Miami
office locally and from our public services practice nationally as needed.
If you have any questions regarding this letter, please call me at (305) 789-2608.
Very truly yours,
KPMG Peat Marwick LLP
Jose R. Rodriguez
Partner
Attachments
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PAGE 02
Attachment A: Review of the City Manager's Office
This attachment describes the approach, task plan, and budget for reviewing the City of
Miami City Manager's Office. For each task, we have included the number of
consultants participating and the hours required to complete the task.
Project Approacb
KPMG will review the operations of the City Manager's Office with special attention to
the budgeting process. This analysis will focus on the staffing, organization,
management practices, information flows, and use of technology within the City
Manager's Office.
We will gather information through one-on-one interviews, benehmarking analysis of
other jurisdictions, and process mapping.
Task Plan
To carry out the goals of this project, we have developed the following detailed task plan.
Task 1: Hold kick-off meeting
KPMG will hold a kick-off meeting with the City Manager and his designated
representatives. The purpose of this meeting will be to confirm the overall project
schedule and to address any logistical issues.
Resource requirements:
Hold kick-off meeting: 3 consultants
12 hours total
Task 2: Develop a detailed operational plan framework
The Consulting Team will develop a detailed operational plan framework. This
framework includes the tasks for the project, schedule, staffing, and budget. For this task
we will eonfii-zn which if any external stakeholders will be included, the process ;For
scheduling interviews, and the schedule for regular meetings with the City Manager.
At the conclusion of this task, the Consultant Team will convert the draft operational plan
framework into a presentation document that can be used to explain to external and
internal groups the framework of the operational planning process.
Resource requirements:
Development of detailed framework-
2 consultants
12 hours total
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Task 3: Gather and review secondary research materials
We will review descriptive material about the City Manager's office. The purpose of this
review is to expedite our understanding of the office's staffing organization, work load,
and process flows. Among the documentation we will request are the following:
• Organizational chart
• Staff listing
• Mission, goals, and objectives
• Work load indicators
• Process flow charts
• Budget instructions
In addition to information specific to the City Manager's Office, we will review
information about the City's management and finances in general. Such sources include:
• Strategic Financial Recovery Plan (Steirheim Report)
• Blue Ribbon Task Force Report
• Procurement Assessment Team Report
• Legal Process Review
• Five -Year Plan: Asset Management
We will use this information to gain a basic understanding of the organization during the
initial phase of the project.
Resource requirements:
2 consultants
36 hours total
Task 4: Gather information from primary sources
KPMG will interview all of staff and management in the City Manager's office. The
focus of the interviews will be on the functions carried out by each of the staff, the overall
process, use of technology, and opportunities for improvement.
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Particular attention will be given to the budget formulation and budget execution
processes in the City Management Office. "Through our one on one interviews, we will
determine precisely what role each person in the Manager's office plays in these
budgetary processes.
Resource requirements:
2 consultants
60 hours total
Task 5. Develop "as is"process maps far the budget formulation and budget execution
processes.
For this task, KPMG will analyze the information gathered in the previous tasks to
develop an "as is" process map for the budget formulation and budget execution
processes.
Resource requirements:
2 consultants
36 hours total
Task 6: Conduct benchmarkiAg analysis.
Through consultation with the City Manager's Office, we will identify other peer cities to
compare to Miami. We will survey these cities to determine how they have organized to
address the kinds of management issues that all city managers face -- managing the
budget process, handling information overload, balancing competing interests, etc. We
will gather information though written and phone surveys.
Resource requirements:
2 consultants
60 hours total
Task 7: Analyze alternative budget formulation and execution processes
We will develop and present alternative budget formulation processes for the City
Manager's Office. Among the types of processes we will present include a zero -based
budget approach, a modified zero -based budget approach, traditional incremental
budgeting, performance budgeting, and program budgeting. In our assessment of these
approaches, we will evaluate the alternative based on cost, results, and implementation
considerations. Based on feedback we receive, we will develop "to be" process maps for
the budget formulation and budget execution processes.
Resource requirements:
2 consultants
40 hours total
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Task 8: Develop draft andfinal report
The consulting team will develop draft final report for review by the Executive
Management Team. Based on con utnents received, we will revise the document
accordingly and submit a LO copies of the final report.
Resource requirements:
3 consultants
80 hours total
Budget
This project plan requires approximately 336 hours to complete.
The proposed budget to assess the City Manager's Office is $40,000. This amounts
includes all labor and expenses.
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Attachment B: Work Plan for an Operational Plan for City Attorney
and City Clerk
This attachment describes the approach, task plan, and budget for assisting the City of
Miami in developing operational plans for the City Attorney and the City Clerk. For each
task, we have included the number of consultants participating and the hours required to
complete the task.
Project Approach
The Consultant Team will lead the offices of the City Attorney and City Clerk in carrying
out following major components of the operational plan:
• Vision and Mission statements: The Consultant Team will review the current vision
and mission statements, solicit input from commissioners, management, and
stakeholders and propose new vision and mission statements if appropriate.
• Goals and strategic directions (objectives): Working separately with the
management teams of the City Attorney and the City Clerk, and stakeholders, the
Consultant Team will develop a set of measurable goals and objectives. These goals
and objectives will reflect the need to address deficiencies identified through recent
studies of the City of Miami government and the need to adopt "best practices" in
City agencies.
• Benchmarking and performance measures: The Consultant Team will review how
performance is measured now. It will review performance measures from comparable
jurisdictions and from the private sector. The Consultant Team will work with staff,
management, and stakeholders to develop a manageable set of balanced performance
measures.
High -priority projects: In the course of developing the operational plan, the
Consultant Team will review management and productivity initiatives from previous
reports, as well as any other proposed improvements to the agencies to identify the
immediate high -priority projects.
• Action plan: The Consultant Team will develop an action plan for communicating
the agency's new mission, goals, and objectives to the staff, stakeholders, and the
public. Furthermore, it will describe the specific tasks required to gather, report, and
assess the appropriate performance measures.
The KPMG, Rodriguez and Trueba consulting team will play a direct role in developing
operational plans for the City Attorney and the City Clerk.
Task Plan
To carry out the goals of the Commission, KPMG has developed the following detailed
task plan. Except where noted, all tasks will be performed for both the City Attorney's
Office and the City Clerk's Office.
9 8 - 3b8
Task 1: Hold kick-off meeting
KPMG will hold a kickoff meeting with department leadership. The purpose of this
meeting will be to confirm the overall project schedule. During this meeting, we will
resolve logistical issues and establish a schedule for meetings and regular
communication.
Resource requirements:
Hold kick-off meeting: 2 consultants
16 hours total (4 hours per consultant per
department)
Task 2: Conduct environmental assessment
Working with the department Leadership Team, the Consultant Team will carry out an
environmental assessment to provide a foundation for the operational planning process.
Information to be included in the environmental assessment will be gathered through
several means including document review, a focus group interviews, surveys, interviews
with key internal managers and external constituents, and a staff questionnaire.
Among the documents that we will use include the following:
• Strategic Financial Recovery Plan (Steirheim Report)
• Blue Ribbon Task Force Report
• Procurement Assessment Team Report
• Legal Process Review
• Five -Year Plan: Asset Management
From these documents the Consultant Team will gather all of the comments, findings,
and recommendations that have City-wide impact and include an assessment of them in
the environmental assessment. This task is key to providing information that is used to
develop the operational plan.
Resource requirements:
2 consultants
76 hours total
Task 3: Prepare materials for and facilitate vision / mission statement session
The Consultant Team will facilitate a meeting of the Leadership Team. During this
session, the Consultant Team will present the results of the environmental assessment.
The environmental assessment will provide information on strengths, weaknesses,
opportunities, and threats as background for the vision ( mission discussion. The result of
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this session will be a draft vision and mission statement. Participants in the planning
meeting are expected to solicit feedback on the draft vision and mission statement from
their colleagues. With this feedback, the vision and mission statement can be finalized at
the subsequent meeting of the Leadership Team.
Resource requirements:
2 consultants
16 hours total
Task 4: Prepare for and facilitate goals /strategic objectives /performance measures
session
Preparation for the goals / strategic objectives session include the development of a set of
tentative goals and strategic objectives for discussion by the Leadership Team. After the
initial "vision / mission planning session" the Executive Management Team will meet
again to (1) confirm the proposed vision and mission statement; and (2) develop draft
department -wide goals, strategic objectives, and performance measures.
At the conclusion of this task, the Consultant Team will present a status report that
includes the following:
• Updated vision and mission statement
• Updated goals and objectives
• Updated performance measures
Resource requirements:
2 consultants
24 hours total
Task S: Conduct Benchmarking Analysis of Key Performance Indicators.
Working with the Leadership Team, we will help identify a set of peer cities to be
compared to Miami. The group will include cities of similar size and as far as possible
with similar characteristics. Using the performance measures developed through the
operational planning process, we will compare Miami to the peer cities to identify areas
in which Miami may be able to improve its level of service or decrease its costs.
The results of this task will be used to identify key areas of focus for the operational plan
and to set realistic yet challenging targets for the departments.
Resources required:
2 consultants
32 hours total
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Task 6: Operational assessment
The consulting team will review previous reports, interview manager and selected staff,
and review benchmarking data to identify key priority issues and cost saving
opportunities. For the City Attorney, this review will focus number and types of staff in
the organization. It will also analyze the assignment of cases to contract lawyers versus
the assignment of cases to staff attorneys.
For the City Clerk's office, we will investigate the current use of technology in the office
and the potential for process improvement and enhanced customer service through the use
of information technology.
Resources required:
2 consultants
56 hours total
Task 7: Develop draft and final Operational Plan Document
The consulting team will develop draft final report for review by the Executive
Management Team. Based on comments received, we will revise the document
accordingly and submit a 15 copies of the final report.
Resource requirements:
3 consultants
200 hours total
Budget
This project plan requires approximately 500 hours to complete.
The total proposed budget to assist the City in developing operational plans for the City
Attorney and the City Clerk is $60,000. This amount includes all labor and expenses.
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Attachment C: Work Plan for the Department Level Operational Plans
This attachment describes the approach, task plan, and budget for assisting the City of
Miami in developing operational plans for its departments. For each task, we have
included the number of consultants participating and the hours required to complete the
task.
Approach
The Consultant Team, made up of KPMG professionals, will facilitate an effort to
develop an operational plan for the 25 City agencies listed below:
• Police
•
Internal Audits and
• Office of Professional
Reviews
Compliance *
• Fire Rescue
•
Finance
• Office of Community
Information
• Parks and Recreation
•
Office of Budget and
• Community
Management Analysis
Development
• Solid Waste
•
Office of Civil Service
• Office of Workforce
Board
Development
• Planning and
•
Office of Hearing
• Information Technology
Development
Boards (10)
• Building and Zoning
•
Office of Equal
• Office of Asset
Opportunity/Diversity
Management
Programs *
• General Services
•
Office of Labor
• NET (13)**
Administration
Relations
• Conferences,
•
Office of Federal and
Conventions and Public
State Liaison
Facilities
• Purchasing
•
Human Resources
* This agency is included in the training, but is excluded from the rest of the operational plait because it is
too small to warrant the standard operational planning process.
** The Neighborhood Enhancment Teams are treated as one agency for the purposes of the operational
plan.
As consultants to the operational planning process, we will provide a framework for
developing an operational plan including an overall schedule, training, standards, and
tools (such as questionnaires, presentation outlines, common performance measures,
relevant reports, etc.). The key to carrying out this process is establishing and guiding a
Department based Project Teams composed of City staff.
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A Project Team is a group of employees within an agency that are responsible for leading
the organizational planning process. We will assist each Project Team in carrying out
following major components of the operational plant:
• Vision and Mission statements: The Project Team will review the current vision
and mission statements, solicit input from staff, management, and stakeholders and
propose new vision and mission statements if appropriate.
• Goals and strategic directions (objectives): Working with staff, management, and
stakeholders, the Project Team will develop a set of measurable goals and objectives.
These goals and objectives will reflect the need to address deficiencies identified
through recent studies of the City of Miami government and the need to adopt "best
practices" in City agencies.
• Benchmarldng and performance measures: The Project Team will review how
performance is measured now. It will review performance measures from comparable
jurisdictions and from the private sector. The Project Team will work with staff,
management, and stakeholders to develop a manageable set of balanced performance
measures.
• Identification of cost saving opportunities: It is anticipated that through
conducting the benchmarking analysis, the Project Team may encounter instances in
which City of Miami operations appear to be less efficient than the average of its
peers or than the "best in class". The Project Team will investigate these disparities
to determine whether or not they indicate a cost saving opportunity for the City.
• High -priority projects: In the course of developing the operational plaza, the Project
Team will review the management and productivity initiatives from previous reports,
as well as any other proposed improvements to the agencies to identify the immediate
high -priority projects.
• Action plan: The Project Team will develop an action plan for communicating the
agency's new mission, goals, and objectives to the staff, stakeholders, and the public.
Furthermore, it will describe the specific tasks required to gather, report, and assess
the appropriate performance measures.
The role of the KPMG will be to:
• Create an overall project framework, schedule, and format for final deliverables
• Assist each City department in selecting members of its Project Team
• Develop and present a training course for all Project Team members
• Co -facilitate one planning sessions at the department level
• Provide resources for Project Teams (benchmarking sources, sample vision
statements, mission statements, and performance measures)
• Monitor, evaluate, and report Project Team progress
• Review and advise teams on project deliverables
The Consulting Team for this project is composed KPMG public services professionals.
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Task Plan
To carry out the goals of the Commission, KPMG has developed the following detailed
task plan.
Task 1: Hold kick-off meeting
KPMG will hold a kick-off meeting with the City Manager and others that the City
Manager may designate. The purpose of this meeting is to confirm the overall project
schedule which includes the department by department operational plans. During this
meeting, we should resolve any logistical issues and identify the members City
Manager's staff that will oversee the department level operational planning process.
For the department level operational planning processes, we anticipate that the
department head and key managers will participate in their department's Project Planning
Team.
Resource requirements:
Hold kick-off meeting: 4 consultants
16 hours total
Task 2: Develop a detailed operational plan framework
The consulting team will develop a detailed operational plan framework. This framework
includes the tasks for the project, schedule, staffing, and budget. For this task we will
confirm every department to be included in the operational planning process, determine
the size of the training classes, the content and length of the classes, the number of
participants, and the number of classes to be held. We will also estimate the level and
timing of support that the consulting team will provide to the City throughout the
operational planning process.
At the conclusion of this task, the Project Team will convert the draft operational plan
framework into a presentation document that can be used to explain to external and
internal groups the framework of the operational planning process.
Resource requirements:
Development of detailed framework:
2 consultants
16 hours total
Task 3: Develop and deliver a training course for selected City staff
We will develop a training course on developing an operational plan. The course will
explain the difference between a vision and a mission statement and will describe the
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goals, objectives, and performance measures. The objective of the course is to enable
participants to guide their fellow workers through an operational planning process
consistent with the City Commission's, City Manager's, and Oversight Board's
objectives.
During this training course, we will instruct the participants on how to conduct an
environmental assessment. The training course will indicate what information is to be
gathered, where it can be gathered from, and how it should be presented. Information for
the environmental assessment will be gathered through several means including
document review, focus groups with the external stakeholders and customers, interviews
with key internal managers, and a staff questionnaire.
Among the documents that we will make available to the Project Teams during the
training include the following:
• Strategic Financial Recovery Plan (Steirheim Report)
• Blue Ribbon Task Force Report
• Procurement Assessment Team Report
• Five -Year Plan: Asset Management
From these documents the Project Teams will gather all of the comments, findings, and
recommendations by department and include an assessment of them in the environmental
assessment. This task is key to providing information that is used to develop the
operational plan.
We expect to train at least two and no more than six employees from each participating
agency (depending on the agency's size). Based on the assumption that 25 agencies /
departments will participate, we assume that we will need to train approximately 90 City
staff. Each class lasts one and a half days and includes 20 to 25 people. We expect to
conduct 4 sessions.
Here is the table of contents and the time frames for the proposed training:
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Schedule for City of Miami Training
MN
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8:15 - 8:30 Breakfast and Orientation
8:30 - 9:00
Introductions
9:00 - 9:30
Operational Plan: An Introduction
Exercise A: "Break the Ice"
Exercise B: "Operational Planning"
9:30 - 11:00
Building a Framework for an Operational
Planning Process
Exercise C: "Developing the Planning Framework"
11:00 - 11:15
Break
11:15 - 12:15
Facilitating Planning a Session
Exercise D: "Facilitating a Session"
12:15 - 1:15
Lunch Break
1:15 - 2:15
Vision, Mission, Goals, and Strategies
Exercise E: "Write a Mission Statement"
2:15 - 3:15
Selecting appropriate performance
measures,
Exercise F: "Balanced Scorecard"
Optional Exercise: "Personal Balanced Scorecard"
3:15 - 4:00
Putting together an Environmental
Assessment
Exercise G: "SWOTI"
4:00
END OF DAY ONE
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PAGE 11
n,�'s.wu:: r"i':aa'ii'• • �a�yN� `•�{'�R i y`, « i�iiai►�i` s:
8:15 - 8:30 Breakfast and Get Comfortable
8:30 - 9:30
Recap Day One and Intro to Day 2
Discussion
9:30 - 10:30
Identifying High Priority Projects
Exercise H. "Anytown Public Library"
10:30 - 11:45
Benchmarking
11:45 - 1:00
Lunch Break
1:00 - 1:45
Documenting and Communicating the
Process
1:45 - 2:30
Revise planning framework
2:30 - 3:30
Recap Day 2
Q&A
3:30
END OF DAY TWO
At the conclusion of the training sessions, we will assist the City in establishing a
operational planning support group that will link the participants together, enabling them
to learn from one another on a continuous basis. We will plan for, organize, and facilitate
the first three meetings of this group which will occur during the course of this project.
This support group will be invaluable for sustaining the capacity within the City to
improve upon the operational plan continuously.
Resource requirements:
Course Preparation:
Course Delivery:
3 consultants
85 hours total
2 consultants (per course)
112 hours total (2 days per course, 4 courses)
Operational Planning Support Group:
2 consultants
32 hours total
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Task 6: Provide additional support and advice to Project Teams
For this task, the Consulting team will provide 16 hours of technical assistance to each of
the 21 project teams. The type of technical assistance provided will depend on the needs
of the Project Team. Among the types of assistance we are prepared to give are the
following:
• Identification of high priority projects
• Benchmarking
• Identification of potential cost saving opportunities
• Development of an action plan
• Facilitation
The purpose of this task is to enable the Project Teams to complete all components of
their Department's operational plan.
Resource requirements:
4 consultants
336 hours total (16 hours for each of 21 Project Teams)
Task 7. Review final work product
The Consulting Team will allocate 12 hours for each department to review the final work
product. We will review and comment on the presentation of the vision, mission, goals,
objectives, and performance measures as well as any benchmarking, priority issues, or
action plan that the Project Team might include.
Resource requirements:
4 consultants
336 hours total (16 hours for each of 21 Project Teams)
Budget
Including normal hours necessary for quality review, this project plan requires
approximately 1,150 hours to complete. Each City department will receive, on average
55 hours of consultant support for developing their operational plan. This equal to about
8 days per department.
The proposed budget to assist the City in developing department level operational plans is
$170,000. This amount includes all labor and expenses.
8 98- 308
3/30/ 988 2
Attachement D: Methodology Section from Public Works Operational
Plan
Appendix A -- Approach & Methodology
The purpose of this study was to develop an operational plan for improving the
City of Miami Department of Public Works. This section describes the project
team's approach to developing the operational plan that would provide guidance
and direction not only in the next year, but that could be updated and modified
for future years, as defined in the Five Year Plan.
As part of the pre -development phase, the Director of the Department identified
key staff members to form an internal project team that would work closely with
the consulting team to develop the operational plan for the Department.
Following are the major steps taken in the joint effort by the internal project team
and the consulting team.
• Developed vision, mission and department objectives. The internal project
team held meetings that were facilitated by the consultant team to develop
meaningful statements of vision, mission and department objectives, as well
as goals and strategies for the Department. In addition, the consultant team
also conducted focus group meetings in which every member of the
Department had an opportunity to make a contribution to the development of
the vision, mission and department objectives. The internal project team and
the consultant team also met with external stakeholders to ensure that their
perspective was taken into account in the development process.
• Developed performance measures. The consultant team solicited input from
the staff, management, and stakeholders to develop a set of balanced
performance measures that would provide useful information to all the parties
involved. The criteria for these measures included ensuring that they be
balanced according to four perspectives -- customer, financial, continuous
improvement, and policy impact. These performance measures also relate
specifically to the goals and objectives identified in the previous step.
• Conducted benchmarking study. The consultant team also surveyed
comparable jurisdictions and the private sector to identify how comparable
jurisdictions compare with Miami in the public works area. The jurisdictions
were chosen on the basis of similarity to Miami in terms of climate and
geography. The benchmarking analysis is included as Appendix B.
• Conducted environmental assessment. To provide a foundation to the
operational planning process, the team conducted an environmental
1
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assessment of the Department. Information for the environmental
assessment was gathered from interviews and focus group meetings.
• Identify high -priority projects. In the course of developing the operational
plan, the project team reviewed the management and productivity initiatives
from previous reports, as well as any other proposed improvements to the
agencies to identify the immediate high -priority projects. Following are some
of the materials reviewed:
0 Strategic Financial Recovery Plan (Steirheim Report)
0 Blue Ribbon Task Force Report
0 Procurement Assessment Team Report
0 Legal Process Review
0 Five -Year Plan: Asset Management
Additionally, the consultant team identified as operational planning priorities,
projects that have a high benefit -cost ratio, can be completed in a short
period of time, do not require a high level of resources, and can be initiated
from within the department.
• Develop an operational plan. The project and consultant teams worked
together to develop an operational plan designed to improve the efficiency
and effectiveness of the Miami Public Works Department. The plan outlines
a strategy for communicating the agency's new mission, goals, and
objectives to the staff, stakeholders, and the public. It also describes the
specific tasks required to gather, report, and assess appropriate performance
measures for the Department.
• Produce a final report. Using the valuable input provided by the internal
project team, the consultant team documented the operational plan
development process, and presented it in this report. Also documented here
are the environmental assessment, the vision, mission, goals and
performance measures, and the operational plan and priorities.
The collaboration of the internal project team and the consultant team provided a
unique opportunity for the Department to utilize its in-house expertise in the area
of public works management, while at the same time taking advantage of the
consultant teams experience in the field of operational planning in municipal
government. The result is an operational plan that will provide significant change
in the near term, and will lay the groundwork for continued improvement in the
Department of Public Works.
2
TO
FROM
CITY OF MIAMI, FLORIDA 30
INTER -OFFICE MEMORANDUM
Honorable Mayor and DATE . April 1, 1998 FILE
Members of the City Commission
SUBJECT: Operational Plan for the
City of Miami
Jose Garcia -Pedrosa
City Manager
RECOMMENDATION
REFERENCES: City Commission Meeting
April 14, 1998
ENCLOSURES:
It is respectfully recommended that the City Commission approve a resolution, with attachment,
authorizing the City Manager to execute an Amendment with KPMG to procure "Additional
Services" as provided in Section IV of the Professional Services Agreement and allocating funds
for said "Additional Services" in an additional amount of $130,000; thereby increasing the fee
from $200,000 to $330,000, payable from Special Programs and Accounts, account code 92-
1002-270 and extending the deadline to perform said services from January 31, 1998, to
September 30, 1998.
BACKGROUND
Pursuant to Resolution 96-805, the City Manager was authorized to execute a Professional
Services Agreement with KPMG Peat Marwick for the provision of external auditing services.
On December 9, 1997, pursuant to Resolution 97-910, the City Commission authorized the City
Manager to expend monies from the Special Programs and Accounts Contracting Fund in an
amount not to exceed $200,000 for the purpose of meeting the requirements of the Oversight
Board through January 31, 1998. Attached hereto, KPMG has provided a detailed scope of work
to prepare the Operational Plan for the City of Miami at a new total proposed budget of
$330,000, representing a $130,000 increase over the previously approved and authorized amount.
The scope of work is delineated in the correspondence from KPMG Peat Marwick and detailed in
Attachments A - D with costs allocated as follows:
Attachment A City-wide Planning & Resource Allocation Plan $40,000
Attachment B City Attorney's and City -Clerk's office $60,000
Attachment C All City Departments $170,000
Attachment D Public Works Operational Plan $60,000
TOTAL $330,000
98- 368
Therefore, it is respectfully recommended that the City Commission authorize an increase in the
amount of $130,000 to the budget proposed by KPMG for said services, extending the deadline
to perform such services to September 30, 1998, and further approving the detailed scope of
work outlined in the attachment to perform the operational plan for the City of Miami.
JGP:CMC:nr
98- 368
April 3, 1998
Mr. Jose Garcia -Pedrosa, City Manager
City of Miami
3500 Pan American Dr.
Miami, Florida 33133
Dear Mr. Garcia -Pedrosa:
Operational Plan for the City of Miami
KPMG Peat Marwick is pleased to submit this revised work plan for assisting the City of
Miami in developing an operational plan. This revised work plan includes an operational
plan for the citywide planning and resource allocation process. This process includes many
of the key functions in the City Manager's office.
As indicated in Chapter II of the Revised Five Year Financial Plan that the City Commission
Passed on December 30, 1997, the purpose of operational plans is:
"To change the strategic direction of the City and the Departments within it..."
Carrying out this mandate requires broad based participation at every level of the
organization. We have developed a project task plan that is rooted in participation and
consensus building — those who will be carrying out a change in strategic direction are given
an opportunity to share in the determination of that new direction. The project objective as
defined in the Five Year Plan is to "develop an operational plan and to establish a process for
updating and modifying the plan in future years."
The work plan for this project is organized into the following four components:
• An operational plan for the Citywide Planning and Resource Allocation process
(Attachment A)
• A "consultant driven" operational plan for the City Attorney and for the City Clerk
(Attachment B)
• Operational plans for all remaining City departments (Attachment C)
• An operational plan for the Department of Public Works -- the "pilot project" (final
report issued February 20, 1998) (Attachment D)
The level of effort and the project approach are different for each of these components.
Attached are work plans for the three components of the operational plan project that have
yet to begin.
98- 368
4/0319a 9:'16a
The purpose of this letter is to convey our understanding of the project and to provide a
detailed task plan and budget consistent with the scope and objectives of the project. With
your concurrence, we are prepared to begin the three remaining operational planning
projects immediately.
Project Schedule
We have developed a project schedule for completing all the operational plans within 6 to 7
months. Adherence to this schedule depends upon the efforts of City employees participating
in the process. We anticipate that many of these studies will be conducted concurrently over
the next 6 to 7 months.
Staffing Plan
To carry out this project, we have put together a team of public services consultants with
expertise in strategic and operational planning, benchmarking, and performance
measurement. In addition to myself, Mike Walsh a principal in our Public Service practice,
will be providing project direction and overall guidance. Other key members of our project
team include the following:
Aaron Estis will serve as the Project Manager for this project. He is a senior manager
in our public services practice and has participated in a wide range of consulting
assignments covering management performance, work flow and process analysis,
organizational analysis, operations management, and public policy.
Stephanie Stern will serve as a lead consultant for this project. She is a consultant in
our public service practice and participated in the pilot project with the Department of
Public Works. Stephanie has a wide range of experience with government organizations
at the State, county, and municipal levels.
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14/03/98 9d1&a l
We will supplement these professionals with additional staff resources from our Miami
office locally and from our public services practice nationally as needed.
If you have any questions regarding this letter, please call me at (305) 789-2608.
Very truly yours,
KPMG Peat Marwick LLP
Jose R. Rodriguez
Partner
Attachments
98- 36,118
4/03/98', 9':16a
Attachment A: Review of the Citywide Resource Allocation Process
This attachment describes the approach, task plan, and budget for reviewing the citywide
resource allocation process which begins in City Manager's Vices and includes all city
departments. For each task, we have included the number of consultants participating and
the hours required to complete the task.
Project Approach
KPMG will analyzed the planning and resource allocation process including the planning
function, budget formulation, budget execution, and evaluation of results. This analysis will
consequently address several issues including: staffing, organization, management practices,
information flows, and use of technology to support the citywide resource allocation process.
We will gather information through one-on-one interviews, benchmarking analysis of other
jurisdictions, and process mapping.
Task Plan
To carry out the goals of this project, we have developed the following detailed task plan.
Task]: Hold kick-off meeting
KPMG will hold a kick-off meeting with the City Manager and his designated
representatives. The purpose of this meeting will be to confirm the overall project schedule
and to address any logistical issues.
Resource requirements:
Hold kick-off meeting: 3 consultants
12 hours total
Task 2: Develop a detailed operational plan framework
The Consulting Team will develop a detailed operational plan framework. This framework
includes the tasks for the project, schedule, staffmg, and budget. For this task we will
confirm which if any external stakeholders will be included, the process for scheduling
interviews, and the schedule for regular meetings with the City's Project Manager for this
operational plan.
At the conclusion of this task, the Consultant Team will convert the draft operational plan
framework into a presentation document that can be used to explain to external and internal
groups the framework of the operational planning process.
Resource requirements:
Development of detailed framework:
2 consultants
12 hours total
9 8 - 3b8
4/03Z98 9:27a
Task 3: Gather and review secondary research materials
We will review descriptive material about the resource allocation process including
background information on the City Manager's office and all functions reporting to City
Manager's Office. The purpose of this review is to expedite our understanding of the City's
staffing, organization, work load, and process flows as they relate to the resource allocation
process. Among the documentation we will request are the following:
• Organizational chart
• Laws, ordinances, policies and procedures related to the budget process
• Staff listing
• Mission, goals, and objectives
• Work load indicators _
• Process flow charts
• Budget instructions
In addition to information specific to the City's resource allocation process, we will review
information about the City's management and finances in general. Such sources include:
• Strategic Financial Recovery Plan (Steirheim Report)
• Blue Ribbon Task Force Report
• Procurement Assessment Team Report
• Legal Process Review
• Five -Year Plan: Asset Management
We will use this information to gain a basic understanding of the organization during the
initial phase of the project.
Resource requirements:
2 consultants
36 hours total -
Task 4: Gather information from primary sources
KPMG will interview staff that play a major role in the resource allocation process including
those in the City Manager's Office and others throughout the City government. The focus of
the interviews will be on the functions carried out by each of the staff, the overall process,
use of technology, and opportunities for improvement.
38- 3b8
2
4/03/98 9:27a'
Particular attention will be given to the City's budget formulation and budget execution
processes. Through our one-on-one interviews, we will determine precisely what role each
person in the Manager's office plays in these budgetary processes as well as determining the
role of department heads and agency budget staff. Other potential interviewees include the
Mayor and Commissioners.
Resource requirements:
2 consultants
60 hours total
Task 5. Develop "as is" process maps for the budget formulation and budget execution
processes.
For this task, KPMG will analyze the information gathered in the previous tasks to develop
an "as is" process map for the budget formulation and budget execution processes.
Resource requirements:
2 consultants
36 hours total
Task 6: Conduct benchmarking analysis.
Through consultation with the City Manager's Office, we will identify other peer cities to
compare to Miami. We will survey these cities to determine how they have organized to
address the kinds of management issues that all city managers face -- managing the budget
process, handling information overload, balancing competing interests, etc. We will gather
information though written and phone surveys.
Resource requirements:
2 consultants
60 hours total
Task 7.• Analyze alternative budget formulation and execution processes
We will develop and present alternative budget formulation processes for the City. Among
the types of processes we will present include a zero -based budget approach, a modified
zero -based budget approach, traditional incremental budgeting, performance budgeting, and
program budgeting. In our assessment of these approaches, we will evaluate the alternative
based on cost, results, and implementation considerations. Based on feedback we receive,
we will develop "to be" process maps for the budget formulation and budget execution
processes.
Resource requirements:
2 consultants
40 hours total
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3
4/03/98 9:27a
Task 8: Develop draft and final report
The consulting team will develop draft final report for review by the Executive Management
Team. Based on comments received, we will revise the document accordingly and submit a
10 copies of the final report.
Resource requirements:
3 consultants
80 hours total
Budget
This project plan requires approximately 336 hours to complete.
The proposed budget to assess the citywide resource allocation processes is $40,000. This
amount includes all labor and expenses.
98- 3b8
4
4/03/98 9:27a'
J- 8-204
4/1 8
RESOLUTION NO.
A RESOLUTION, WITH ATTACHMENT, AUTHORIZING THE
CITY MANAGER TO EXECUTE AN AMENDMENT, IN A FORM
CCEPTABLE TO THE CITY ATTORNEY, TO TH
OFESSIONAL SERVICES AGREEMENT (PSA) WITH KP
P T MARWICK LLP (KPMG), THEREBY: 1) PROCU G
AD IONAL SERVICES FROM KPMG AS PROVIDED FG IN
SAID SA, 2) INCREASING THE FEE FOR SAID SERV ES IN
THE A UNT OF $130,000, FROM $200,000 TO $ 0,000,
AND 3) TENDING THE DEADLINE FOR THE PER RMANCE
OF SAID SERVICES FROM JANUARY 31 1998 TO
SEPTEMBER 0, 1998; ALLOCATING ADDITIO AL FUNDS, IN _
THE AMOUN OF $130,000, FROM SPE AL PROGRAMS
AND ACCOUN 11CONTINGENCY FUND, DE N0. 921002-
270.
WHEREAS, pursuant to Resolu n No 6-805, adopted October 30, 1996, the
City Commission approved a Professiona ervices Agreement (PSA) with KPMG Peat
Marwick LLP for the provision of exter audit g services; and
WHEREAS, pursuant to Re ution No. 9 10, adopted December 9, 1997, the
City Commission authorized the ity Manager to expe monies from the Special Programs
and Accounts Contingency nd, in an amount not to ex ed $200,000, for the purpose
of meeting the requirem is of the Oversight Board through J uary 31, 1998; and
WHEREAS, sai Resolution further stipulated that an acco ting be provided for all
expenditures made y Rodriguez, Trueba & Company and KPMG Peat arwick LLP; and