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HomeMy WebLinkAbout2012-07-24; City Council; 20974; Part 2 - Parks and Recration Operational Assessment Report - Complete Baker Tilly Report City of Carlsbad, California Parks & Recreation Department Operational Assessment Report July 9, 2012 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Table of Contents Executive Summary ...................................................................................................................................... 1  Introduction ................................................................................................................................................. 10  Project Background ................................................................................................................................. 10  Summary of Project Objectives & Scope ................................................................................................ 11  Summary of Project Activities/Methodology ............................................................................................ 12  Continuum of Options Considered .......................................................................................................... 14  Cost Sharing Arrangements .................................................................................................................... 15  Outsourcing and/or Managed Competition ............................................................................................. 16  Explanation of Data Utilized .................................................................................................................... 16  Department Organization ............................................................................................................................ 18  Budget Overview ..................................................................................................................................... 18  Overview of Outsourced Activities & Contract Management .................................................................. 23  Overview of Memorandum of Understanding ......................................................................................... 34  Department Staffing .................................................................................................................................... 40  Department Management Structure and Organization ........................................................................... 40  Staffing by Line of Business .................................................................................................................... 45  Availability ............................................................................................................................................... 50  Line of Business Analysis ............................................................................................................................ 59  Parks Maintenance Overview ..................................................................................................................... 63  Cost of Service ........................................................................................................................................ 63  Parks Maintenance: Future State Alternatives ............................................................................................ 66  Operational Efficiencies .......................................................................................................................... 68  Custodial Services: Current State Analysis ................................................................................................. 71  Description of Activities ........................................................................................................................... 71  Cost of Service ........................................................................................................................................ 72  Service Statistics ..................................................................................................................................... 73  Benchmarks & Industry Standards ......................................................................................................... 74  Current Outsourcing Activities ................................................................................................................. 74  Custodial Services: Future State Alternatives ............................................................................................. 75  Operational Efficiencies .......................................................................................................................... 75  Managed Competition Candidates .......................................................................................................... 75  Direct Outsourcing .................................................................................................................................. 75  BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Table of Contents (cont.)  Hardscape/Specialty Maintenance: Current State Analysis ........................................................................ 76  Description of Activities ........................................................................................................................... 76  Cost of Service ........................................................................................................................................ 76  Service Statistics ..................................................................................................................................... 79  Benchmarks & Industry Standards ......................................................................................................... 80  Current Outsourcing Activities ................................................................................................................. 81  Hardscape/Specialty Maintenance: Future State Alternatives .................................................................... 84  Operational Efficiencies .......................................................................................................................... 84  Managed Competition Candidates .......................................................................................................... 86  Direct Outsourcing .................................................................................................................................. 86  Landscape Maintenance: Current State Analysis ....................................................................................... 88  Description of Activities ........................................................................................................................... 88  Cost of Service ........................................................................................................................................ 89  Service Statistics ..................................................................................................................................... 93  Benchmarks & Industry Standards ......................................................................................................... 93  Current Outsourcing Activities ................................................................................................................. 96  Landscape Maintenance: Future State Alternatives ................................................................................... 98  Operational Efficiencies .......................................................................................................................... 98  Managed Competition Candidates ........................................................................................................ 100  Direct Outsourcing ................................................................................................................................ 100  Trails/Open Space/Preserve Maintenance: Current State Analysis ......................................................... 103  Description of Activities ......................................................................................................................... 103  Cost of Service ...................................................................................................................................... 104  Service Statistics ................................................................................................................................... 107  Benchmarks & Industry Standards ....................................................................................................... 108  Current Outsourcing Activities ............................................................................................................... 110  Trails/Open Space/Preserve Maintenance: Future State Alternatives ...................................................... 112  Operational Efficiencies ........................................................................................................................ 112  Direct Outsourcing ................................................................................................................................ 112  Managed Competition Candidates ........................................................................................................ 112  Tree Maintenance/Management: Current State Analysis ......................................................................... 114  Description of Activities ......................................................................................................................... 114  Cost of Service ...................................................................................................................................... 114  Service Statistics ................................................................................................................................... 118  Benchmarks & Industry Standards ....................................................................................................... 119  Current Outsourcing Activities ............................................................................................................... 121  BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Table of Contents (cont.)  Tree Maintenance/Management: Future State Alternatives...................................................................... 122  Operational Efficiencies ........................................................................................................................ 122  Managed Competition Candidates ........................................................................................................ 122  Direct Outsourcing ................................................................................................................................ 122  Recreation: Overview ................................................................................................................................ 125  Aquatic Services: Current State Analysis .................................................................................................. 126  Description of Activities ......................................................................................................................... 126  Cost of Service ...................................................................................................................................... 126  Service Statistics ................................................................................................................................... 128  Benchmarks & Industry Standards ....................................................................................................... 130  Current Outsourcing Activities ............................................................................................................... 133  Aquatic Services: Future State Alternatives .............................................................................................. 135  Managed Competition Candidates ........................................................................................................ 137  Direct Outsourcing ................................................................................................................................ 137  Historical Parks Services: Current State Analysis .................................................................................... 140  Description of Activities ......................................................................................................................... 140  Cost of Service ...................................................................................................................................... 140  Service Statistics ................................................................................................................................... 142  Benchmarks & Industry Standards ....................................................................................................... 142  Current Outsourcing Activities ............................................................................................................... 143  Historical Parks Services: Future State Alternatives ................................................................................. 144  Operational Efficiencies ........................................................................................................................ 144  Managed Competition Candidates ........................................................................................................ 144  Direct Outsourcing ................................................................................................................................ 144  Recreation Services: Current State Analysis ............................................................................................ 146  Description of Activities ......................................................................................................................... 146  Cost of Service ...................................................................................................................................... 146  Service Statistics ................................................................................................................................... 148  Benchmarks & Industry Standards ....................................................................................................... 151  Current Outsourcing Activities ............................................................................................................... 152  Recreation Services: Future State Alternatives ........................................................................................ 153  Operational Efficiencies ........................................................................................................................ 153  Direct Outsourcing ................................................................................................................................ 154  Rental Services: Current State Analysis ................................................................................................... 157  Description of Activities ......................................................................................................................... 157  Cost of Service ...................................................................................................................................... 157  Service Statistics ................................................................................................................................... 159  BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Table of Contents (cont.)  Benchmarks & Industry Standards ....................................................................................................... 159  Current Outsourcing Activities ............................................................................................................... 161  Rental Services: Future State Alternatives ............................................................................................... 162  Operational Efficiencies ........................................................................................................................ 162  Managed Competition Candidates ........................................................................................................ 163  Direct Outsourcing ................................................................................................................................ 163  Senior Services: Current State Analysis ................................................................................................... 164  Description of Activities ......................................................................................................................... 164  Cost of Service ...................................................................................................................................... 164  Service Statistics ................................................................................................................................... 166  Benchmarks & Industry Standards ....................................................................................................... 167  Current Outsourcing Activities ............................................................................................................... 168  Senior Services: Future State Alternatives ............................................................................................... 169  Operational Efficiencies ........................................................................................................................ 169  Managed Competition Candidates ........................................................................................................ 169  Direct Outsourcing ................................................................................................................................ 169  Appendices ............................................................................................................................................... 172  Appendix 1: Work Breakdown Structure ............................................................................................... 172  Appendix 2: Current Contract Listing .................................................................................................... 196  Appendix 3: Comparable Jurisdictions & Survey .................................................................................. 199  BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 1 Executive Summary  The City of Carlsbad (hereinafter, “the city”) is known for providing an extremely high quality of service. The city consistently receives a high level of satisfaction from residents in its annual public opinion survey. The most recent survey, from 2011, showed that 98 percent of residents rate the city’s quality of life as good or excellent, and 94 percent are satisfied with the job the city is doing providing services. The challenge facing the City of Carlsbad is how to maintain these excellent ratings while addressing the very real concerns of a volatile economy and increasing labor and related variable costs. To address this challenge, the city recently created a Best Value Services program. This program aligns with the city’s strategic focus area of being a sustainable organization – i.e., being an adaptable, responsive, and efficient organization that delivers cost effective, high quality services. In other words, a sustainable city organization is one that provides the best quality at lowest cost. The program is intended to evaluate service delivery methods and costs for all city operations except sworn public safety services. In December 2011, the city selected Baker Tilly to assist with the Best Value Services program. The first step in this program is an operational assessment of all the services provided by a particular department. This report summarizes the results of the operational assessment of the Parks & Recreation Department. The recommendations contained in this report are intended to:  Evaluate department performance in relation to best practices and accepted industry standards;  Quantify current resource allocations and expenditures by functional area within lines of business. (i.e., Line of Business: Parks Maintenance – Pest Control (functional area);  Ensure that the city’s resources and strategic priorities are aligned;  Determine the feasibility of alternative service delivery approaches, and enhance collaboration and coordination with other entities; and  Position the city to continue the delivery of high quality services within Parks & Recreation at the lowest cost to taxpayers. Baker Tilly’s strategy in assessing operations was to look at the full continuum of options available to the city. The following provides an overview of some of the options considered during this analysis and the criteria used to make the assessment: > Productivity Enhancements: The options to consider under this category of improvements focus on enhancing the productivity of the organization. There are a number of different ways to look at improved productivity. They include: - Usage of technology to reduce processing times; enabling the reallocation of resources - Process re-engineering allows staff to decrease the number of steps to complete a process. It may also include a reduction in the number of departments participating in a process, the elimination of approvals in order to streamline tasks, and the development of staff specializations so that fewer participants in a process are needed. - Lean government refers to the application of lean production principles and methods to identify and implement the most efficient and value added way to provide government services. > Cost Sharing Arrangements: Consolidation of services and functions offers municipalities the opportunity to realize significant savings while preserving, or even enhancing, service levels. There are many examples of intergovernmental cooperation, ranging from joint purchasing through full consolidation of formerly separate organizations. These arrangements offer a number BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 2 of advantages beyond cost reduction: standardization, reduced processing times and greater organizational communication. The options considered under these arrangements focus on the city’s ability to work with other units to share services, or whether or not options for consolidation exist. > Managed Competition: Although managed competition has existed for decades, it has only recently seen increased implementation. Managed competition is a process used by local governments to identify the most cost-effective method for quality service delivery. It calls for carefully comparing the costs and benefits of contracting with private business or another government entity against the costs and benefits of providing the service in-house. We use two criteria for determining whether or not managed competition is an option at the city: - Where the gap between the current cost of service (internal) and the cost of a potential vendor (external) is narrow enough that the city might be able to negotiate with bargaining units to lower overall cost of service or it is feasible that City employees could lower costs based on changes in service delivery approach. Negotiation strategies may include: increasing staff availability for work, decreasing crew sizes while maintaining safety and quality, and eliminating some bargaining agreement items (e.g., call back pay, duty availability). Baker Tilly selected items for managed competition based upon our professional opinion in identifying gaps which may be addressed by a competitive process. The city, however, may elect to use a different process depending upon circumstances. - When there are less private sector providers available. > Outsourcing: This option considers whether or not there is a vendor in the market who can perform the services in a more cost efficient manner. The cost savings under this option lies primarily in the difference between the public sector and private sector benefit rates. Outsourcing options are typically considered where the gap between what a vendor may charge for a service is substantially less than what the city is currently paying for it. Additionally, a substantial number of third party providers exist in the respective area. The review completed in this report spans the full continuum of options available to the city relative to the delivery of Parks & Recreation services. A total of 48 opportunities with a range of $2.3 million to $4.7 million annually in estimated potential savings, revenue enhancements or resource reallocations are included in this report. Please note that not every opportunity has a tangible savings associated with it. Some are opportunities for increasing the efficiency of staff and do not necessarily translate to dollar savings. In summary, our analysis indicates the following options would provide the most significant savings to the city: > Consideration of outsourcing of the entire parks maintenance function – the parks maintenance function encompasses all lines of business associated with parks maintenance activities (e.g., tree maintenance, landscape maintenance, hardscape maintenance, trails, open space and preserve maintenance). The city has the opportunity to reduce the cost of providing parks maintenance through the use of a third party. This cost impact is derived from differences in the current level of salary and benefits, the reduction of non-productive hours paid, and the economies of scale from a larger parks maintenance operation. Based on comparison of actual labor costs and initial vendor quotes, the potential savings to taxpayers ranges from $1,700,000 - $3,866,000. These cost estimates are preliminary; however, the magnitude of stated cost difference is so significant it warrants a formal process to assess actual cost savings for outsourcing this function. The city should use a work breakdown structure or other mechanism to scope the work for equivalent levels of service. We provide a work breakdown structure for the city in Appendix 1 of the report. This provides a detailed listing of the type, frequency and quality BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 3 of work to be performed. Additionally, actual realization of any cost savings is also dependent upon effective performance contract management. > Consideration of outsourcing of individual lines of business within parks maintenance – if the city determines that it does not wish to pursue outsourcing of the entire park maintenance function, the analysis indicates that consideration of outsourcing two specific lines of business may also result in high quality service at a lower cost. - Landscape maintenance – if the city were to outsource routine parks maintenance (i.e., mowing, weeding, pest control, irrigation maintenance) based on a comparison of public to private sector labor costs the potential exists to save approximately $925,700 per year. - Tree maintenance – if the city were to outsource tree maintenance, based on information from comparing city and a vendor quote, potential savings is estimated at nearly $700,000 a year. > Consideration of managed competition for hardscape and trails – in these two areas, the gaps between the current cost of delivering a service and what a vendor could potentially charge is narrow enough to use managed competition as a strategy for reducing the overall costs of service. > Consider a wider span of control for Parks & Recreation – while both parks and recreation are in alignment with the defined span of control, we would recommend that the city adopt a ratio of 10 employees per manager in order to gain further efficiencies. > Alignment of labor costs with productive hours – productive hours, in this case, is defined as the number of hours available in comparison to number of hours paid. Currently, the city pays for a higher than average amount of “unproductive hours” (i.e., vacation, leave) in many areas of Parks & Recreation. In comparison to the Bureau of Labor Statistics’ national standard of 92.6%, the city has an average availability ratio for full time employees of 85.5%. This means that, on average, the city is paying for 7.1% more unproductive hours than is seen in other sectors for similar work. The city can address this by either increasing part time staff or using private sector vendors to provide work. > Alignment of fees charged with market rate and demand – the city is known for providing an exceptional quality of life experiences for its residents through Parks & Recreation programming and facilities. Currently, the city lags behind other regional government entities by 75% in rental rates. Adjusting fees by even 25% could mean an additional $125,000 in revenue. This adjustment could be done over a period of years to ease the effect on residents. Similarly, fee levels for aquatics programming are lower than government comparables for all programs, with the exception of the masters program. An increase in fees for yearly passes and rentals to non- public entities could result in $34,500 in additional revenue. Additionally, focusing pool scheduling on higher fee activities could result in an additional $30,500 annually. > Enhanced use of technology – the city can reduce operational costs and enhance resource allocation decision-making by using available technology to provide service and manage operations. - Promoting On-line Registrations – currently, only 35% of registrations are completed online. If the city were to increase the amount of online registrations to 50%, it could decrease operational costs by $18,000. An increase to 80% could reduce cost by $100,000. Most governmental entities are targeting 80% or more online transactions for routine transactions such as registrations, permit applications, etc. - Consistent Use of Hansen for Work Management and Performance Tracking – the Hansen work order system is a powerful system for tracking operational performance. Currently, the parks maintenance function is inconsistent in how it uses the system to capture data. In conducting this analysis, we found that there was not one line of business that used this BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 4 system to consistently track work assignments, completion or costs. The city can realize the full potential of this investment by consistently entering and closing work orders to more effectively monitor changes in work levels, identify issues with response times or approaches, and support justification for budget requests. Similarly, a consistent method for tracking and reporting in-house and contractor performance in comparison to metrics is not evident. Ensuring vendors are meeting performance expectations is critical to ensuring anticipated cost savings and retention of required levels of service. The following represents a detailed listing of all opportunities contained in this report. We break them out into three separate charts: Opportunities related to administration, parks maintenance and recreation services: List of Opportunities – Administration (Contract Management, Bargaining Agreement & Staffing) Area & Type of Opportunity Option Opportunity Amount (Annual Unless Otherwise Noted) Beginning on Page Number Contract Management & Outsourcing Operational Efficiency Eliminate ambiguities in contract administration by ensuring that the Department in charge of contract oversight is the one assessing the quality of work. Third party assessments should be eliminated where possible. Does Not Apply Page 23 Operational Efficiency Reduce duplication of Hansen work order data entry through the use of mobile computing platforms TBD Operational Efficiency Establish a rigorous performance contracting process by which all contracts have work type, frequency and quality (performance standards) clearly defined. The city should then use these performance metrics to establish satisfaction with vendor services. Does Not Apply Operational Efficiency Develop contract management training and a cohesive policy for contract managers to improve consistency and effectiveness of contract management. Does Not Apply Operational Efficiency Consider establishing positions that are dedicated to contract oversight. This would relieve some of the responsibilities of other staff and create a specialization in contract management which would allow the city to more effectively monitor vendor performance. Does Not Apply Operational Efficiency Employ "dual contract" management approach to improve contract oversight and effectiveness Does Not Apply Operational Efficiency Establish opportunities for vendor input at the onset of contracts and foster a collaborative contractor environment Does Not Apply BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 5 List of Opportunities – Administration (Contract Management, Bargaining Agreement & Staffing) Area & Type of Opportunity Option Opportunity Amount (Annual Unless Otherwise Noted) Beginning on Page Number Memorandum of Understanding Bargaining Item Consider eliminating standby pay. As staff are compensated for any overtime hours (with minimum guarantees), we would argue that staff are adequately compensated. $ 22,000 per year Page 34 Bargaining Item Complete a full analysis of spending on uniform and equipment reimbursement. Some uniforms are currently rented and the city should consider if this can be expanded or, if the city might be able to keep some of these items in stock, as opposed to reimbursement. TBD Bargaining Item Consider moving to a lump sum longevity payment as opposed to a salary step. By moving to a lump sum longevity payment, the city would reduce the long term costs. Lump sum longevity payments do not factor in to the hourly rates of staff and would reduce the costs of overtime, call back pay, etc. Many municipalities have moved to this method of payment to reduce long term costs. TBD Department Staffing Operational Efficiency Establish a benchmark of 10 for span of control. TBD Page 40 Operational Efficiency Consolidate the existing three commissions into a single commission to free up approximately .6 FTE Does Not Apply Bargaining Item Consider a conversion from multiple categories of leave to a single category of Paid Time Off (PTO). TBD Parks Maintenance List of Opportunities Area & Type of Opportunity Option Opportunity Amount (Annual Unless Otherwise Noted) Beginning on Page Number Parks Maintenance General Direct Outsourcing Outsource all parks maintenance activities $ 1,700,000 to $ 3,866,000 Page 66 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 6 Parks Maintenance List of Opportunities Area & Type of Opportunity Option Opportunity Amount (Annual Unless Otherwise Noted) Beginning on Page Number Operational Efficiency Reduce duplication of Hansen work order data entry through the use of mobile computing platforms $ 20,000 Operational Efficiency Eliminate duplication of tree inventory data between Hansen and contractor’s system $ 7,000 Custodial Services Operational Efficiency Move maintenance of exterior block houses and restrooms to Property & Environmental Management Department No tangible cost savings to Parks & Recreation Page 75 Hardscape/Specialty Maintenance Operational Efficiency Consolidate contracts for one time activities into citywide master contracts $ 13,900 Page 84 Operational Efficiency Fully utilize vendors for specialized services No tangible cost Managed Competition Perform managed competition for hardscape activities $ 216,000 Operational Efficiency Utilize alternative materials for Carrillo Ranch parking lot TBD Landscape Maintenance Operational Efficiency Expand the use of synthetic turf to enhance user’s experience and achieve potential cost savings $ 71,300 Page 98 Operational Efficiency Implement cost containment on fuel Deferred to Property & Environmental Management Direct Outsourcing Outsource landscaping activities $ 925,700 Direct Outsourcing Outsource pest control activities that are currently conducted in-house $ 14,400 to $17,900 Trails/Open Space/ Preserve Maintenance Operational Efficiency Expand use of Volunteer Trail Program to meet trail development goals, enhance existing trails or reduce costs $ 6,700 Page 112 Managed Competition Conduct managed competition for trail maintenance activities $ 111,300 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 7 Parks Maintenance List of Opportunities Area & Type of Opportunity Option Opportunity Amount (Annual Unless Otherwise Noted) Beginning on Page Number Tree Maintenance Direct Outsourcing Outsource tree maintenance activities $ 690,000 Page 122 Recreation Services List of Opportunities Area & Type of Opportunity Option Opportunity Amount (Annual Unless Otherwise Noted) Beginning on Page Number Aquatic Services Operational Efficiency Increase fee levels $ 34,500 Page 135 Operational Efficiency Focus pool use on high revenue generation activities $ 30,500 Operational Efficiency Centralize registration and marketing Not available Operational Efficiency Expand the use of consortium or master contract based purchasing for pool supplies Not available Direct Outsourcing Outsource routine pool maintenance $ 41,200 Direct Outsourcing Increase part time and/or contractual staff $ 0-107,000 Direct Outsourcing Outsource custodial for pool and aquatics park bathrooms Include as part of Property & Environmental Management review Historical Parks Services Operational Efficiency Enhance coordination with Friends of Carrillo Ranch No tangible savings Page 144 Operational Efficiency Coordinate grant writing among city departments No tangible savings Direct Outsourcing Outsource educational programming, visitor services and tours $ 21,900 - $60,100 Recreation Services Operational Efficiency Promote online registrations $43,800 - $112,400 first year to $46,800 - $140,400 annually Page 153 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 8 Recreation Services List of Opportunities Area & Type of Opportunity Option Opportunity Amount (Annual Unless Otherwise Noted) Beginning on Page Number Operational Efficiency Reduce percent of fee revenue provided to instructors from 65% to 60% $ 25,000 Direct Outsourcing Outsource traditional summer and spring camp programs $ 10,500 - $21,500 Direct Outsourcing Outsource coordination of classes and sports programming TBD Rental Services Operational Efficiency Centralization of staff $ 93,900 Page 163 Operational Efficiency Adjust rental rates $ 125,000 Direct Outsourcing Rental support services TBD Senior Services Operational Efficiency Administrative support reduction $ 25,900 Page 170 Direct Outsourcing Outsource transportation services $ 12,500 per year $ 30,000 one-time Direct Outsourcing Outsource congregate meal support $ 21,000 In quantifying potential fiscal impact, it is important to note that: 1) These estimates are not accurate projections of actual savings, but rather are intended to be preliminary estimates used to determine whether or not an area appears to warrant consideration for a different service delivery approach. 2) In those instances where direct outsourcing is recommended and a cost savings is estimated, this estimate is derived from vendor cost projections developed based on a detailed work breakdown structure for that specific line of business or activity which details service levels as currently performed by the city. Vendors who responded indicated that visual inspections of facilities and assets would be necessary to provide a final estimated cost. It is important to note that some of these recommendations can be implemented in short order without significant disruption to service or effort, and others may take time to transition service delivery and/or negotiate key third party contracts. While many of these options offer significant opportunity to reduce the operating budget relative to Parks & Recreation services, of equal importance is the need to ensure that any change in service delivery approach or provider does not reduce the level of service provided to the public. In order to address the issue of maintaining service levels, we have assumed the following in completing the analysis: BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 9  Any estimate of cost from a vendor uses the work breakdown structure verified by the city as the current approach and performance metrics for providing that service.  The city will hold the contractor to the same level of performance using its experience in performance management with the modifications indicated below.  The use of contractors for providing selected services takes advantage of their expertise in providing specialty services (e.g., operational efficiencies, economies of scale in materials purchased, etc.). Again, it is important to note that, until the city makes decisions about the specific course of action to follow and official request for proposal or bid processes are completed, the estimates included herein are not guarantees of actual savings, but rather estimates of potential savings. The most critical element related to the maintenance of existing service levels will be the presence of a solid and robust performance management framework for both internally and externally delivered services. This will require:  Enhancement of the existing performance management framework for vendors and third party contracts – while the city has a solid vendor performance management framework, we anticipate that this framework will need to be strengthened through more explicit performance metrics, enhanced formality of the contract performance management hierarchy (i.e., who is the daily sign off, who is monitoring performance), and regular comparison between service and cost levels to ensure cost effectiveness without impact on service levels.  Increased formality of internal performance management frameworks – the level of work performance tracking and specificity of how and by whom operational statistics are kept will need to be formalized to focus on the most critical measures and quantifying the level of effort required relative to various service levels (e.g., if there is a different expectation in terms of service level that warrants a higher level of work effort, that will need to be clearly defined).  Focus of internal efforts on those services best performed internally may allow an actual enhancement to service levels given the narrower spectrum of services provided. There are no guarantees that service levels will not be impacted in any manner; however, through the use of sound performance contract negotiation and management, the introduction of clear operational statistics tracking, and the ability of the city to partner with vendors to provide services in select areas by taking advantage of vendor specialization and expertise, the city should be well positioned to carry out its Best Value Services program.   BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 10 Introduction  Project Background  The city is located 35 miles north of the City of San Diego on the Southern California coast. The city has a population of 105,3281 and serves an area of 42 square miles. With three lagoons, more than 46 miles of trails and 40% of the city set aside as open space, Carlsbad has been widely recognized for its responsible approach to growth management and maintaining an excellent quality of life for residents. Carlsbad is a popular tourism destination, home to LEGOLAND, the Flower Fields, and nearly seven miles of coastline. The city is also known as the nation’s golf industry capital and a hub for leading high tech and biotech companies. The city incorporated in 1952 and has a council/manager form of government. The City Council consists of a mayor and four council members. As a full service city, Carlsbad provides water, sewer, library, recreation, police and fire services, in addition to traditional city services. For FY 12, the city has an adopted budget of $260 million. In annual citywide surveys, Carlsbad residents have consistently indicated a high level of confidence in their city government and give the city high marks in everything from quality of life to safety, parks, libraries and other important services. In the 2011 public opinion survey, 98 percent of residents cited the quality of life in Carlsbad as good or excellent; 94 percent of residents were satisfied with the job the city is doing; and 84 percent of residents expressed confidence in Carlsbad city government to make decisions that positively affect the lives of community members. While the city has not been affected by the economy to the same degree as other municipalities across the country, the city is committed to examining its ability to deliver high quality services as it consistently has, for the best price possible. The city has a long standing track record of political stability and fiscal responsibility, holding a AAA credit rating from Standard & Poor’s. According to the General Accounting Office (GAO), there will be a fiscal imbalance for state and local governments for the next 50 years. Government debt as a percentage of the gross domestic product has ballooned to 90.4% — the worst since the 1950s2. To compound this problem, citizens nationwide are facing nearly $3 trillion in unfunded state and local workers retirement liabilities, according to a study by Northwestern University3. The city itself is currently dealing with an approximately $86 million actuarial unfunded liability on its pension plan. The city’s Best Value Services program seeks to ensure that taxpayers are receiving the most efficient and cost-effective delivery of high quality city services.   1 2010 US Census 2 http://www.gao.gov/new.items/d07362sp.pdf 3 http://www.kellogg.northwestern.edu/faculty/rauh/research/NMRLocal20101011.pdf BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 11 Summary of Project Objectives & Scope  In September 2011, the City Council approved a framework for its Best Value Services program. The focus of this program is on ensuring the most cost effective delivery of high quality local government services within the City of Carlsbad. The program is intended to evaluate service delivery methods and costs for all city operations, except sworn public safety services. In December 2011, the city selected Baker Tilly to assist with the Best Value Services program. The focus of the current phase is to conduct an operational assessment. The following provides an overview of the scope:  Assist in documenting current service levels/scope of work  Design operational assessment  Conduct operational assessment and prepare report with recommendations - Complete a preliminary cost analysis - Benchmark lines of business/major services against best-in-class service providers, including: » Informal cost estimates from private companies » Quality and cost data from other public agencies » Best practices/industry standards » Other considerations, as needed - Prepare written report and recommendations » Include relevant qualitative factors  Conduct briefings with City Council, city management and staff, as needed Through this operational assessment, Baker Tilly takes a single department, Parks & Recreation, and provides an overview of the work activities, operational cost and approach to service delivery. The assessment also compares the city on these elements to other similar jurisdictions and national benchmarks (as available). For certain aspects of service, Baker Tilly provides high level data on what the city could expect to pay a private vendor for the same services. Lastly, Baker Tilly provides recommendations on a continuum of options available to the city. The next section discusses the methodology used to accomplish these objectives.   BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 12 Summary of Project Activities/Methodology  In December 2011 and January 2012, Baker Tilly consultants and city staff worked to determine the first city departments to undergo an operational assessment (Phase 2) and the timing of the assessments. The city’s Best Value Services Steering Committee reviewed the list of options for the first assessment and decided to focus the effort on the Parks & Recreation Department. The chart below lists the various lines of business activities included in this review. Department Lines of Business/ Major Service Description Parks & Recreation Aquatic Services Aquatic programs, classes, & rentals Building Maintenance Painting, building repair, and construction Custodial Services Exterior restrooms and block houses, trash & litter service, dog station re-stocking Hardscape/Specialty Maintenance Sidewalks, retaining walls, playground, and sports court maintenance Historical Parks Services Carrillo Ranch art program with the schools, collection, museum services, Magee programs, Stagecoach park ruins, tours, and visitor services Landscape Maintenance Irrigation, natural and synthetic turf, pest control, shrub, groundcover, stormwater pollution prevention, and undeveloped parkland maintenance Recreation Services Camps (traditional & specialized), classes (preschool, youth, adults & seniors), special events, triathlon, sports (youth & adults), teen programs, and community center programming Rental Services Community center rooms, athletic fields, historic sites, and parks & picnics, community garden lease management Senior Services Health & wellness services, hobbies & programs, meals program, and Senior Center programming Trails/Open Space/Preserve Maintenance Preserve management and trail maintenance Tree Maintenance/ Management Comprehensive urban forest management In February 2012, the city and Baker Tilly staff held a kickoff for the project. Meetings focused on developing an understanding of the project scope with city managers and supervisors, as well as with front line staff. Also during this site visit, Baker Tilly consultants presented staff with an information request to provide insight as to the state of the Parks & Recreation Department’s financial transactions, personnel activity and performance. The following serves as a summary of the data reviewed:  FY09-11 expenditure and revenue data, including capital costs  FY12 budget data, including capital costs  Current contracts  Operational and workload statistics BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 13  Policies and procedures for work  FY 09-11 personnel data related to salary paid, benefits paid, leave time taken (vacation, sick leave, etc.), leave time earned (compensatory & overtime), etc.  FY09-11 overhead costs  Customer service data  Bargaining agreements This data was used to facilitate the first round of interviews with Parks & Recreation staff in March 2012. These interviews focused on: Line of Business Description  What functions are included in each?  What other functions/services that this line of business relies on heavily are provided by others in the department or city?  Which services are provided through contractors? Why? Resource Allocation  Verify total budget/expenditure breakouts and trends  Staff allocations  Volunteers  Current equipment allocations (parameters around ownership/maintenance)  Capital investments anticipated  Contracts – which ones are primary to each function? Operating Statistics  How are things reported? (i.e., what does each statistic represent)  Trends in service levels/customers  Trends in costs/revenues Service/Program Performance  What are current key performance indicators?  Typical cycles  Key regulations/requirements  How are they tracked/who reviews/how frequently?  Service quality assessment – how/by whom/how frequently?  Contractor reporting Operations Management  Accountability systems (e.g., work order, scheduling, etc.)  Organizational hierarchy  Key policies/procedural oversight parameters  Contract oversight framework – how do you ensure best value for contract life?  Potential improvements  Future plans/current initiatives The data gathered allowed Baker Tilly consultants to conduct the following activities:  Inventory of activities: In order to appropriately identify all the tasks under the responsibility of the Parks & Recreation Department, staff utilized the data gathered from the interviews and reports to complete the Work Breakdown Structure presented in Appendix 1 of this report.  Inventory of contracts: Supplementing the work activities, city staff provided copies of all of the contracts utilized by Parks & Recreation. These contracts were inventoried, reviewed, and are presented in Appendix 2 of this report.  Activity by line of business & costing: Staff utilized data from the Finance Department in conjunction with allocations to the various lines of business (completed by Parks & Recreation BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 14 analysts) in order to calculate the amount of time spent in each of the lines of business. City staff then provided data on the fully loaded personnel costs4 in order to calculate the personnel cost of service.  Performance metric analysis: Staff reviewed the performance metrics that city staff collect on a regular basis regarding their daily work. These were analyzed for patterns and issues.  Benchmarking & industry standards: After reviewing the performance metrics that are utilized by staff, consultants researched the industry standards that are currently utilized in parks and recreation. We specifically use data from two national surveys conducted by the National Recreation and Park Association and the International City/County Management Association. Other line of business-specific standards were utilized in the individual areas as well. These standards and benchmarks allow us to identify how the city’s performance stacks up against other municipalities. Understanding that, depending upon the local situation, expectations of service may be greater than the industry standards are, Baker Tilly consultants contacted 10 municipalities in the Southern California region for additional comparable data. Because comparison to equivalent quality of service was a concern, the list of comparables was vetted with city staff to ensure that these are of similar size and service delivery expectations. We received responses from six local municipalities on their service delivery approaches, expenditures, as well as their performance standards. These interviews allow us to compare the city’s standards of service against expectations in “like communities”. The results of this activity are listed in Appendix 3. All figures obtained from comparable jurisdictions utilized FY11 calculations, unless otherwise noted.  Expenditures by line of business: City Finance Department staff extracted data utilized for the cost of service functions provided in each of the lines of business. These expenditures are actual.  Development of alternatives: When looking at each of the functional areas, consultants considered the various options that are available to the city in order to improve upon service delivery as well as reduce the cost of service. Most of these alternatives are mutually exclusive of one another and simply represent the full spectrum of options available to the city. Some are small recommendations which can be implemented immediately, while others are more comprehensive and require a large investment from the city to achieve the potential results. The continuum of options are discussed in the next section. Continuum of Options Considered  Baker Tilly’s strategy in assessing operations was to look at the full continuum of options available to the city. The diagram below provides an overview of the various options that were considered. Productivity Enhancements and Strategic Resource Alignment are options that the city can consider without any major structural change to staffing. The options Outsourcing, Consolidated, and Shared Services would require a shifting of work. This shift can be to an outside entity (outsourcing), or it may mean the city will need to significantly affect the design of the organizational structure (consolidation and shared services). Following the diagram, we provide a brief overview of these options. 4 This includes regular salaries, overtime paid, compensatory time paid, sick leave, vacation leave, holiday leave, bereavement leave, worker’s compensation, other paid leave, deferred compensation, social security, life insurance, health insurance, vision, medical, disability insurance, unemployment compensation, auto allowance, cell allowance, uniform allowance, and PERS. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 15 Productivity Enhancements  The options to consider under this category of improvements focus on enhancing the productivity of the organization. There are a number of different ways to look at improved productivity. They include: > Usage of technology to reduce processing times; enabling the reallocation of resources > Process re-engineering allows staff to decrease the number of steps to complete a process. It may also include a reduction in the number of departments participating in a process, the elimination of approvals in order to streamline tasks, and the development of staff specializations so that fewer participants in a process are needed. > Lean government refers to the application of Lean production principles and methods to identify and implement the most efficient and value added way to provide government services Cost Sharing Arrangements  Consolidation of services and functions offers municipalities the opportunity to realize significant savings while preserving, or even enhancing, service levels. There are many examples of intergovernmental cooperation, ranging from joint purchasing through full consolidation of formerly separate organizations. These arrangements offer a number of advantages beyond cost reduction: standardization, reduced processing times, and greater organizational communication. The options considered under these arrangements focus on the city’s ability to work with other units to share services, or whether or not options for consolidation exist.   Productivity  Enhancements •Functional Analysis •Lean Government •Process Re‐engineering •Performance  Management Outsource,  Consolidated &  Shared Services •Cost Sharing  Arrangements •Vendor Evaluation &  Management •Outsourcing and/or  Managed Competition Strategic Resource  Alignment •Productivity Analysis •Governance  Enhancement •Costs of Bargaining  Agreement •Contract Analysis •Risk Assessment BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 16 Managed Competition  While managed competition has existed for decades, it has only recently seen increased implementation. Managed competition is a process used by local governments to identify the most cost-effective method for quality service delivery. It calls for carefully comparing the costs and benefits of contracting with private business or another government entity against the costs and benefits of providing the service in- house. We use two criteria for determining whether or not managed competition is an option at the city: - Where the gap between the current cost of service (internal) and the cost of a potential vendor (external) is narrow enough that the city might be able to negotiate with bargaining units to lower overall cost of service or it is feasible that City employees could lower costs based on changes in service delivery approach Negotiation strategies may include: increasing staff availability for work), decreasing crew sizes while maintaining safety and quality, and eliminating some bargaining agreement items (e.g., call back pay, duty availability). Baker Tilly selected items for managed competition based upon our professional opinion in identifying gaps which may be addressed by a competitive process. The city, however, may elect to use a different process depending upon circumstances. - When there are less private sector providers available. Outsourcing  This option considers whether or not there is a vendor out in the market who can perform the services in a more cost efficient manner. The cost savings under this option lies primarily in the difference between the public sector and private sector benefit rates. Outsourcing options are typically considered where the gap between what a vendor may charge for a service is substantially less than the city is currently paying for the service. Explanation of Data Utilized  As discussed earlier, there are four main sets of data that are continuously utilized throughout the report to compare city work and financials to counterparts: 1) the International City/County Management Association’s (ICMA) Comparative Performance Measurement Report, 2) the National Recreation and Park Association (NRPA) PRORAGIS benchmarking database, 3) data self reported by the six Southern California municipalities participating in our comparables survey, and 4) public & private sector salary data from the Economic Research Institute (ERI). The following serves as a summary of these data sets:  For the last 16 years, ICMA has compiled a summary of performance data collected from local governments from around the United States that participate in the ICMA’s Center for Performance Measurement (CPM) comparative performance measurement program. The full dataset includes responses from nearly 200 cities and counties on 101 questions across 18 service areas. Data included in this report (FY10) was taken from respondents that provided information about their parks and recreation programs and fell within the population categories of 25,000 to 100,000 and over 100,000. The data from this report provides a solid look at performance metrics for the full range of government services. For the purposes of this review, we focused our analysis on responses to the Parks & Recreation questions.  The NRPA’s Park and Recreation Operating Ratio and Geographic Information System (PRORAGIS) benchmarking database is an online database that collects, compiles and reports BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 17 park and recreation department operating and geographic information. PRORAGIS was developed as a replacement for NRPA standards that have guided land acquisition and development for the past 45 years. This information was used to access data from municipalities nationally, as well as comparably sized cities in California.  The NRPA data used in the context of the report includes responses from the 336 jurisdictions that participated in 2011. We also evaluated responses from a smaller subset of survey respondents that could be compared more directly to the City of Carlsbad. This subset of responses is composed of 7 participants located in California with a population size of 20,000 to 160,000. Data extracted for our analysis is from 2011 unless otherwise noted. The measure of centrality used in this study was the median of participant responses.  Understanding that national data does not always tell the regional story, our data analysis was supplemented with data from six local municipalities. These municipalities were vetted with the Best Value Services Steering Committee. In order to ensure their participation in the study, we agreed to blind the name of their municipality. In the survey, participants provided data on over 130 different data points on parks and recreation financial and service levels. This information is used in conjunction with the national data to provide a basis of comparison for benchmarking and performance for the city. The following chart provides some demographic information on the participants in this survey: City Population Area (sq. miles) Income per Capita Comparable A 59,518 19.99 $ 34,336 Comparable B 62,979 14.89 $ 39,167 Comparable C 85,186 52.978 $ 63,015 Comparable D 47,811 39.17 $ 29,788 Comparable E 63,522 19.47 $ 34,169 Comparable F 83,781 24.39 $ 35,768 City of Carlsbad 105,328 39.11 $ 34,863  The ERI Salary Assessor database is a source of public and private sector salary information for a broad sample of positions. We specifically utilized the Consultant Edition of the software. The data is updated quarterly, and the data we used for our analysis is from April 1, 2012. The following webpage describes the Salary Assessor database: http://www.erieri.com/index.cfm?FuseAction=ERISA.Main. Data was limited to organizations similarly sized to the city. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 18 Department Organization   In this section, we provide a high level overview of some of the activities that occur within each of the functional areas and are analyzed herein. We provide analysis of budget information, current outsourcing and contract management, collaborative purchasing, and collective bargaining language impacts. The information presented supplements the analysis within each of the lines of business. Budget Overview   The city has focused on practicing sound financial management in the midst of the current economic downturn and has been successful in their efforts. The city’s leadership has consistently pursued a path of limiting the impact on core city services by limiting expenditures or growth for non-core city functions. In addition, the city’s leadership did not create any new programs, services, or positions in the FY12 budget. The city has budgeted $256.5 million for the operating and capital budget (all city departments), with projected revenues of $230.6 million. This total city operating budget represents an increase of $5.5 million, or 2.9% over the previous year. This is partially due to increases in the Water Enterprise fund, resulting from increases in the cost of purchasing water and recycled water.5 The following presents an overview of the last four years of expenditures and budgeted items for the Parks & Recreation Department. Parks & Recreation Department Budget Summary6 FY09 Actual FY10 Actual FY11 Actual FY12 Budget Personnel $ 7,387,475 $ 7,386,284 $ 7,550,970 $ 7,848,987 % Change -0.02%2.23% 3.95% Maintenance and Operations $ 5,989,020 $ 5,976,353 $ 5,654,890 $ 6,625,346 % Change -0.21%-5.38% 17.6% Capital Outlay $ 317,948 $ 61,842 $ 81,683 $ 0 % Change -414.13%32.08% N/A Total $ 13,694,443 $ 13,424,479 $ 13,287,543 $ 14,474,333 % Change -2.01%-1.02% 8.93% The Department encompasses a wide array of services from maintenance of parks and trails to recreation programs for seniors and youth. The Parks & Recreation Department FY12 total operating budget is approximately $14.5 million. It is important to note that the Parks & Recreation budget is part of the larger Community Services budget which totals $25 million for 2011-2012. The Department’s budget represents 58% of the total Community Services budget (which includes Library and Arts) and approximately 6% of the city’s overall $256.6 million budget. As expected, personnel costs have consistently been the largest portion of the overall Parks & Recreation Budget, averaging approximately $7.4 million or 55% of total Parks & Recreation budget/actual expenditures from FY09 through FY12. 5 City of Carlsbad FY 2011-2012 Operating Budget & Capital Improvement Program, pg. A-1. 6 City of Carlsbad FY 2011-2012 Operating Budget & Capital Improvement Program BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 19 The marginal growth in overall Parks & Recreation costs reflects an overall city strategy of estimating conservative revenue growth. For the last several years, the city has employed principles including:  Minimize service impacts to residents  No new positions and no growth in maintenance and operations  No new programs, unless under a legal mandate  Significant personnel increases should be included in department budget projections  Personnel and operating reductions should be identified in order to offset known budget increases  Exercise prudence in budgeting The city budget also indicates that an “Expenditure Control Budget” process is used for budgeting, where “each department is given a block appropriation containing sufficient funds to provide the current level of services for the upcoming year.”7 These blocks are commonly increased by an index to account for inflation and growth. For FY09 and FY10 budget years, the city decreased budgets in response to decreasing revenues. This decrease can be seen in the 2% reduction in actual expenditures in FY 2010. The following year, the city kept block growth flat, attempting to limit cost increases and do more with fewer resources. Moving forward, the city permitted growth in budget totals as long as they were accompanied by operational reductions. This can also be seen in the Parks & Recreation budget, as expenditures for FY11 decrease by 1% from the prior year actual expenditures, while Maintenance & Operation (M&O) costs decreased by a greater percentage of 5.38% to accommodate the increase in personnel costs. From FY08 to FY11, the Parks & Recreation budget experienced an overall decrease of approximately 3% in expenditures. The Parks & Recreation budget increased by 8.93% between the FY11 and FY12 budget year primarily due to increasing expenditures for habitat maintenance costs of the municipal golf course and shifting some landscaping and maintenance expenditures from the Property and Environmental Management Department (PEM) to Parks & Recreation. This was not due to an actual increase in anticipated spending. Overall expenditures as a percentage of the total budget by category remain relatively consistent among personnel, maintenance and operations, and capital outlay expenditures. However, what is missing from these numbers is the Public Employees Retirement System (PERS) unfunded liability. The city’s actuarial unfunded liability is $86 million. To address this unfunded liability, the city has been budgeting $1.4 million/year to bring this amount current. This unfunded liability is not currently figured into any of the costing calculations discussed throughout this report. From a direct labor resource allocation and cost perspective, the department consists of the following resources: Parks & Recreation Personnel Summary FY09 FY10 FY11 FY12 Full Time Positions 73.5 72.95 71.95 70.95 Hourly/FTE Positions 61.65 61.76 61.76 61.76 Total FTEs 135.15 134.71 133.71 132.71 Overall, the department has reduced total full time equivalents by approximately 2.5 full time equivalents (FTE) since 2009. While the Department experienced a decrease in some full time staff for areas such as 7 Ibid. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 20 landscaping, the decreases were offset by staff transfers from other departments such as Property & Environmental Management (PEM). Overall staffing shifts are discussed in each line of business section of the report. Small decreases in staff numbers for the Department appear to have had minimal impact on overall personnel cost reductions. As staff numbers have decreased by approximately 2.5 FTE from FY09 to FY12, personnel costs have increased from approximately $7.4 million to $7.8 million. This is due in part to the transfer of two positions transferred from external departments to the Department. The FY11 budget reflects the transfer of an Associate Engineer position to provide support for beach and open space programs, and in FY12, the Special Events Coordinator position into the Department. The Carlsbad FY12 budget identifies three sources of revenue:  General: General fund including but not limited to tax levy, donations, intra-governmental sources, intergovernmental sources, and fee revenue.  Special Revenue: Grants or donation revenue that has been allocated to a specific program or purpose.  Maintenance Assessment: Revenues from the Street Tree Assessment District and the Median Assessment District. General Revenue makes up the largest portion of fund sources for Parks & Recreation and has averaged over 90% of total fund sources since FY09. The level of General Revenue remained constant despite the economy’s impact on the largest sources of General Revenue: property tax, sales tax, and transient occupancy tax. FY 2013 Budget At the time of this analysis, the city was in the FY13 budget development process. In interviews with staff, they indicated that, independent of the Best Value Services project, they had been exploring how to reduce costs of service delivery for the Parks & Recreation Department. In order to illustrate these efforts, the following table highlights the items submitted in the FY13 request. These represent reductions in addition to what is recommended within the current analysis. Efficiency Savings Redistributed workload of 4.26 FTEs through retirements and terminations and the heightened convergence strategy, or by adding to existing contracted services $ 261,000 Restructured and re-bid parks and athletic field maintenance contract $ 97,000 Re-bid preserve maintenance contract $ 34,000 Reduction in part time hours during peak and non-peak times (5.04 FTEs) $ 100,000 Efficiencies through staff cross training and outsourcing of score keepers and sports officials (2.59 FTEs) $ 60,000 Use of lower level assistant for pre-school part time staffing $ 7,000 General reductions in M&O spending $ 17,000 Total FY13 Savings Identified $ 576,000 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 21 The estimated savings for FY13 are significant when compared to FY12. With the reductions, personnel costs would be reduced by approximately $361,000, and M&O costs by $215,500. The strategies for cost reductions are a continuation of strategies employed by the city since FY09:  Consolidation, sharing, or elimination of positions  Not filling personnel vacancies and replacing work with part-time staff or contracts  Identification of reductions in expenditures  Creating the best value contracts by negotiating costs Descriptions of cost savings are described in more detail within each line of business analysis, based on available information. Parks & Recreation Budget - Industry Comparison To understand how the city’s Parks & Recreation budget compares to other municipalities, we examined a 2012 study by the National Recreation and Parks Association (NRPA).8 This study represents the first annual compilation of key financial data for Parks & Recreation agencies in the United States and examined over 200 entities of various sizes and across many regions. The following chart provides a high level overview of operating expenditures for survey respondents. In comparing this data, the city is on the higher end of the spectrum in terms of operating expenditures. The city is in the upper quartile of the respondents with operating expenditures of just over $14 million. To more closely assess this data, we compare operating expenditures as a function of population density. The NRPA study indicated that the average parks and recreation expenditures for communities with a population density of more than 2,500 per square mile is $5,125,010. The city, with a population density of 2,507 citizens per square mile and expenditures of over $13 million, is in line with the upper quartile of 8 2012 Parks & Recreation National Database Report, National Parks & Recreation Association Less than  $500,000 14% $500,000 to  $1.0 million 10% $1.0 million  to $5.0  million 45% $5.0 million  to $10.0  million 13% More than  $10 million 18% Operating Expenditure  Ranges BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 22 NPRA study information.9 The upper quartile average in expenditures for municipalities over 2,500 in population per square mile is approximately $17 million. This is likely due to the broad and diverse range of services that the city provides via Parks & Recreation, the city’s status as a tourist attraction, and its mild, year-round climate. The table below presents detail on the operating expenditures by population density. Average Expenditures Based on Population per Square Mile All Responses 1,501 to 2,500 More than 2,500 Lower Quartile $ 1,027,201 $ 2,335,266 $ 1,854,444 Median $ 2,659,668 $ 4,667,446 $ 5,125,010 Upper Quartile $ 6,157,247 $ 10,386,867 $ 17,114,754 Conclusion The city has effectively managed its budget and expenditures amidst a national crisis of reducing revenues and increasing expenditures. This is all done while holding steady services to the public. Additionally, Department management and staff have shown a commitment to identifying cost savings in operations and executing these plans. The city appears to be well positioned to meet most Parks & Recreation infrastructure growth plans. Citywide, the City of Carlsbad has sought to maintain a strong fiscal position for infrastructure projects by placing a portion of the general fund revenue each year (currently at 6.5%) into the Infrastructure Replacement Fund. The city will be able to use these funds to ensure that Parks & Recreation and city-wide infrastructure growth and repairs are completed in a timely manner. In addition to the security of the Infrastructure Replacement Funds, the city and its citizens have pursued policy measures, such as the 2002 Proposition C, that have designated funds for Parks & Recreation infrastructure projects like Alga Norte Park. Despite these measures, a few Parks & Recreation projects identified in the Capital Improvement Plan remain unfunded (Cannon Lake Park, Hosp Grove/Buena Vista Lagoon, Pine Avenue Park, and Robertson Ranch). Despite these general challenges, and a lack of revenue growth in the current economic climate, the city continues to provide a diverse set of Parks & Recreation services to its residents.   9 Carlsbad population density is calculated using the population of 105,328 and 42 square miles. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 23 Overview of Outsourced Activities & Contract Management  As public sector entities struggle to meet budget challenges, they are contemplating alternative service delivery approaches including shared service arrangements, consolidated operations, and service delivery through outsourced providers. Each of these approaches has merit and can be an effective way to retain service levels while effectively managing costs. However, careful consideration of the advantages, disadvantages, and realities of outsourcing are of utmost importance prior to entering into an outsourced service arrangement. Outsourcing can take many forms, but typically falls into one of the following four categories:  A service contract – fee based arrangement to manage part of a municipal service for a short period of time (less than two years)  A management contract – performance based fee for managing a municipal function for the midterm (3 to 6 years)  A concession contract – multi-year contract (20 to 25 years) to provide service requiring significant capital investment as part of transition or start up  A lease – contractor will lease assets from the municipality for a multi-year period Approximately 80 percent of all U.S. cities outsource some services10. Outsourcing is not simply limited to private vendors; services can be outsourced to other public or nonprofit entities as well. When correctly applied and executed, it can maximize performance, increase operational efficiency, and better deploy resources to meet critical goals. However, it should only be applied carefully and selectively to those areas where significant cost and efficiency gains can be attained11. Scholarly studies have demonstrated several factors commonly inhibit the potential success of outsourcing. These factors include12:  Limited or no competition among potential vendors  Contracted products and services that are difficult to specify and describe in written contracts  Vendors that have special knowledge or skills about the product that is unavailable to public managers  Public managers that have a hard time monitoring vendor performance once the contract has been let Regardless of the form, municipalities must keep in mind that by outsourcing, you do not eliminate the responsibility for the quality, responsiveness, or cost of a service. It is simply a transfer of the “location” of the staffing for the service from internally to externally. As quality of service is paramount to the city, ensuring that any vendor understands service expectations and can meet these standards is critical. If an entity is clear about why it is entering into an outsourced service agreement and has clearly defined the specific outcome sought through this arrangement, there can be numerous benefits, including:  Reduction to long term liabilities – The entity is not obligated to cover long term benefits such as pensions and health care upon retirement, thus reducing long term costs. 10 Outsourcing in State and Local Governments: A Literature Review and a Report on Best Practices. University of Tennessee Center for Business and Economic Research. September 21, 2006. ftp://ftp.nashville.gov/web/sserv/Outsourcing_Lit_Review_Final_0926.pdf  11 “Outsourcing Methods & Case Studies: City of Colorado Springs.” Public Financial Management, Inc. April 10, 2009. 12 Contract-Management Capacity in Municipal and County Governments. Public Administration Review. March/April 2003, volume 63, issue 2. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 24  Reduced labor costs – The hourly rate paid for service may be lower than the cost of a public sector compensation plan, thus resulting in reduced recurring costs and an ongoing positive budget impact.  Industry specific expertise and contacts – Often individuals and entities providing outsourced services have significant experience in a specific activity or service, and therefore, are considered experts with special insight in running that type of operation efficiently and effectively (e.g., NAPA only does parts management for fleet operations). Many times, municipal managers will assume that the outsourcing of operations will be more cost effective than performing services in-house; this is not always the case. Public sector managers must carefully weigh the particulars relative to service expectations and cost structures for these types of arrangements. Some potential pitfalls of outsourcing include:  Hidden costs – Watch for additional fees, precluded services, situational rate increases, etc.  Asset disposal – Existing assets such as systems or equipment may need to be liquidated at a loss. Even newly acquired capital may no longer be useful if the vendor provides such assets.  Transfer of knowledge – The methods and quality of services provided are often linked to historical practices. If these practices are not effectively communicated, changes in service quality may be felt. Likewise, if a vendor does not communicate its processes, the public entity may have difficulty managing outcomes. Overview of Carlsbad Outsourcing for Parks & Recreation Services To conduct this analysis, the city provided a complete list of routine and non-routine contracts from FY 09 – 11. Based on this information, the city managed 96 total parks and recreation contracts with a total actual cost of approximately $2.3 million during FY 2011.13 These contracts cover the full scope of services offered by the Parks & Recreation Department. For parks maintenance activities, contracts have been made to provide landscaping, tree pruning, plant restoration, buoy maintenance, and several other services. These contracts are made primarily with external vendors. For recreation activities, contracts range from individual instruction of sports classes to providing senior meals. Recreation contracts are a combination of contracts with individual service providers, recreation vendors that provide a large variety of courses and programs, and a few maintenance contracts for pool services. The choice to contract these services is for a variety of reasons. For parks maintenance activities, staff may not have the required licenses, equipment, or it is simply found to be more cost effective. For recreation activities, contracts provide expertise on program and course subject areas that staff do not have. Benchmarked Outsourcing Outsourcing has increasingly become a valid alternative for governments, but it has been done in such a quick manner that benchmarking statistics are not readily available. To measure the city’s performance, we turn to the survey of comparable municipalities that we conducted. Of the six respondents, one did not provide enough detail to be compared here (Comparable B). 13 Represents total contract value (actual), not expenditures. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 25 Comparison of Contracting Levels for the City of Carlsbad’s Regional Peer Group14 Category City of Carlsbad Comparable A Comparable C Comparable D Comparable E Comparable F Parks & Recreation Direct Expenditures $10.0M $3.5M $14.2M $5.6M $6.1M $8.1M Outsourced Contract Value $2,287,601 $1,806,173 $4,895,670 $582,000 $2,200,535 $2,104,077 Percentage of Contract Expenditures as a Total of the Parks & Recreation Direct Expenditures 23% 52% 34% 10% 36% 26% Examples of Outsourced Activities -Major concrete repairs -Pest control -Preserve management -Adult sports -Youth sports -Senior meals -Aquatics pool repairs - Some tree trimming All maintenance activities -Landscape maintenance -Electrical -Plumbing -Tree trimming -Janitorial -Concrete services -AC services -General property maintenance and construction -Recreation contract instructors -Adult sport officials -Parks and facility maintenance -Medians and roadside maintenance -Enrichment classes Not answered -Restroom cleaning -Major repairs -Class instructors Overall, the city contracts slightly less than most of its regional peers, at a rate of 23% of direct expenditures (not including overhead). Of the municipalities surveyed, all but one reported higher levels of contracting than the city. For municipalities with higher levels of contracting, overall this can be attributed to higher levels of outsourcing parks maintenance activities. In addition, most municipalities outsource some level of recreation courses and enrichment activities. City of Carlsbad-Specific Outsourced Activities The city employs a wide range of professional service contracts in several categories including: Senior Services, Parks Maintenance, Recreation, and Aquatics. Appendix 2 provides a detailed listing of all the outsourced contracts utilized by the city. In FY11, the city executed approximately $2.3 million in outsourced contracts for operations in Parks & Recreation. 14 Comparable A expenditures do not include aquatics costs. Comparable D expenditures do not include parks maintenance costs. Comparable E expenditures do not include recreation or aquatics costs. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 26 Parks maintenance contracts make up the larger portion of contracts both in terms of quantity and value, representing 61% of total contract expenditures for FY 11. Also, the majority of contract value is part of ongoing contracts, where a vendor consistently provides the same service; as opposed to one time contracts, where the contractor is limited in duration and service. Over 90% of contract value for FY11 can be associated with ongoing contracts. This appears to indicate that the city uses contracts strategically. That is, contracts are used for planned services rather than reactive needs. Also, this puts the city in a positive position to estimate contract costs in budgeting. Since such a large portion of the contracts are for multiple years, there is greater predictability in contract expenditures on an annual basis. Contract Management Based on our experience, we believe the most successful outsourcing programs are highly organized. Good governance can also deliver improved service levels, streamlined administration, easier performance monitoring, and a cultural shift toward better performance and management of internal projects throughout an organization. One study estimates that 2-5% in savings is likely when strong governance structures are put in place15. A successful contract-management approach often contains the following organizational capacities:16  Feasibility Assessment Capacity – The capacity to determine whether to make or buy the good or service (is a service appropriate for contracting)  Implementation Capacity – The capacity to bid the contract, select a provider, and negotiate a contract  Evaluation Capacity – The capacity to evaluate the contractor’s performance Governments spend a considerable amount of time on selecting a vendor, but often forget that after a vendor has been selected, the focus must shift to managing the contract, which includes monitoring vendor performance, communicating with service recipients, and executing incentive programs17. Contract management programs often become ad hoc and are often not routinized until the end of the contract term. In a 2006 industry survey about managing outsourcing relationships, more than half of public sector professional purchasers and buyers and 60% of service providers felt at least 30% of their annual contract value was at risk because of poor or nonexistent governance. In other words, cost savings would not be realized because of ineffective contract management. Contracting is not a one-size-fits-all proposition. The success or failure of any alternative service-delivery arrangement likely depends on how well governments can manage the entire contract process, from assessing the feasibility of contracting through implementation to monitoring and evaluation—activities that require strong government contracting capacity. Governments investing in contract management capacity may be better positioned to harness the promise of effective contracting while avoiding its pitfalls. 18 Unfortunately, no research has been conducted to indicate how contract management capacity can improve contract performance (contract management capacity includes the people required to manage the contract, the skills that these individuals will need in order to effectively oversee the contract, and the available technology which allows for the management and tracking of data). Best practice and experience indicates that developing an authentic collaborative relationship with the contractor is the best 15 Government Technology, 2009 16 Public Administration Review. March/April 2003, volume 63, issue 2. 17 “Managing Public Service Contracts” Public Administration Review. 2006. 18 Public Administration Review. March/April 2003, volume 63, issue 2. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 27 way to achieve long-term performance benefits. 19 Additionally, analyses suggest governments adjust their contract management capacity in response to specific problems that threaten to undermine contract performance. Specifically, these problems include:  Dissatisfaction with previous contract outcomes  Contracting for the provision of public goods and services with high transaction costs  Contracting more with private firms than with nonprofits or other governments  Contracting in the presence of significant political opposition from important constituent groups Tools for Contract Management As part of the comparable municipality survey, participants were asked to identify best practices for the selection and monitoring of contracts. This was done to ascertain how other municipalities are managing contract performance and staying on top of their vendors. The table below provides a synopsis of the responses provided. Category Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Selection of Contracts Focus on best service Parks: Evaluate quality and price Aquatics: Identify community need and look for instructors Parks: Low bid and performance Recreation and Aquatics: Focus on best service Recreation: Focus on best service Aquatics: Focus on low bid Not answered Focus on best service Measurement of Contract Performance Monthly inspections with allowable deductions to payments if service expectations not met Checklist based on requirements and specifications Aquatics: Participant comments and attendance Parks: Use of inspectors and written reports Recreation and Aquatics: Participant and staff evaluations Aquatics: Monthly performance reports, annual meetings Use of inspectors Use of inspectors and regular meetings with contractors Most municipalities identified best service or a combination of best service with low bid as the primary means to select contracts. In this respect, the city compares with its regional peer group. However, in our experience, best value and quality in respect to contracting is only as good as the monitoring that is performed on the contract. 19 Contracting Capacity and Perceived Contracting Performance.” Public Administration Review. 2009. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 28 Each of the municipalities contacted reported having some method of contract performance measurement. All of the methods described are common tools used for performance review. These tools are strengthened by a solid scope of work that clearly defines the work to be performed, its frequency and quality. Compared to its peers, the city appears to have adopted many of the practices already employed. Based on our initial assessment and an understanding of how the city compares to its peer group, the city appears to be managing contracts well, but has several opportunities for improvement. For example, the city appears to use some contract management tools inconsistently across its many contracts, such as the use of performance requirements. Performance guidelines are listed in parks maintenance activities such as with the landscaping and tree contracts. However, required levels of performance are not used in contracts for recreational class instructors. The following section provides an overview of contract management tools the city is currently using, and recommendations for improvement. Contract Administration In many municipalities, contracts are managed through a combined effort of a centralized procurement office and direct oversight by the applicable department. This separation of responsibilities can create efficiencies. By allowing centralized and specialized staff trained in contract development and negotiation to focus on developing a sound contract and enforcement mechanism, department staff are free to manage the day-to-day activities of the contract. This includes monitoring quality and performance of the vendors. For Parks & Recreations contracts, the city uses a decentralized procurement approach where contracts are both developed and managed at a department level. For some Parks & Recreation services, contract administration becomes more complex as different departments act as contract administrators. For example: the Sadler Electric and T&J Janitorial contracts are administered by the Property & Environmental Management (PEM) Department, yet work is at times directed by Parks & Recreation staff. In some circumstances, this difference in contract administration and alignment of the service to the appropriate department is a result of the recent reorganizing of the Parks & Recreation Department. Responsibilities for certain services have not fully transitioned to the appropriate department. An example of this is seen with the cleaning of block houses, where PEM and Parks & Recreation continue to discuss which specific activities should be handled by each department. This misalignment has a direct impact on the services provided by the Parks & Recreation Department. First, Parks & Recreation does not have direct ability to manage the relationship with the contractor. This may prevent timely issue mitigation, imposing contract penalties, and fostering a trusting relationship with the contractor. Parks & Recreation is also unable to directly control contract renewals or development of new contract language. An example of this is seen in Custodial Services. Currently, the janitorial services contract for maintenance of the exterior restrooms and block houses is maintained by PEM. Although PEM serves as the primary point of contact on this contract, Parks & Recreation staff check on the work/services performed. When there are problems with performance or quality, Parks & Recreation staff must work through PEM to resolve them. Second, confusion is also created with budgeting for these contracts and may result in underfunding Parks & Recreation services. Parks & Recreation should work with city management and other departments to clearly delineate responsibility (oversight and enforcement) of “gray area” services to a single department (such as the Custodial Services example described above). Administration of contracts providing these services should be aligned to the assigned department as well. Parks & Recreation can benefit from this change by having more direct control over contractors providing services under their purview and effectively budget for these services. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 29 Defining Contract Performance A common best practice for municipalities is to clearly identify performance outcomes in contracts. If performance is not clearly defined in the contract, it can be difficult to determine if the contractor is not meeting, or perhaps exceeding expectations. Clearly defining performance reduces risk for municipalities because it holds contractors accountable for their work and permits the use of incentives and penalties for not meeting expectations. The city employs this tool in many of its contracts, most consistently being utilized in larger parks maintenance contracts. For example, the West Coast Arborist contract provides very specific direction on the frequency of work, location of work, and even defines how the work should be performed according to city requirements and industry standards. In these types of contracts, the city has positioned itself to closely monitor contract performance. The city also uses a variety of support tools to measure contract performance. In many contracts, the city provides examples of evaluation forms that will be used to measure performance via routine inspections. These forms set clear expectations between the contractor and the city on what will be evaluated and the methodology used. The city is able to keep a record of performance over time and use this information to actively mitigate poor performance and make contract renewal decisions in the future. While these type of performance definition and evaluation tools are readily applicable, and often necessary, for large scale and complex services like landscaping and tree maintenance, it can be extended to other types of services as well. For these large maintenance contracts, specific frequencies for activities and response times are indicated in the contracts. However, the city does not currently identify specific performance expectations in its standard contract for individual instructors of enrichment classes and youth sports. In addition, for other small maintenance-type contracts, such as the Knorr Systems contract for pool maintenance, work duties are very loosely defined and no clear performance expectations are indicated. For example, no completion times or reporting requirements are described. Quality could also be defined in terms of outcomes such as the appearance of the pool once the work is completed. Detailed performance outcomes may not be required for all types of contracts. As performance outcomes increase, additional oversight and management are required to monitor performance. In general, performance outcomes should be written into all contracts. Special focus should be placed on new contracts or for existing outsourced services where performance becomes an issue. For example, additional performance expectations should be written into individual instructor contracts that require a certain satisfaction rating from participant reviews. Opportunity • Eliminate ambiguities in contract administration by ensuring that the Department in charge of contract oversight is the one assessing the quality of work. Third party assessments should be eliminated where possible. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 30 When defining performance expectations or performance outcomes, use of explicit requirements is a best practice. This includes: > Requirements in terms of results translated into production methods/metrics, > Clear definitions of performance measurement methods and goals, (i.e., Key Performance Indicators (KPIs), efficiency and effectiveness measures) > Description of how the contractor’s performance will be evaluated in a quality assurance plan > Positive and negative incentives based on key metrics (including plan for frequency of review and by whom) Contract Oversight To actively manage and monitor contract performance, the city uses a variety of staff types and levels to perform this function. In some cases, specialized contract management staff carry out the day-to-day oversight and inspections, such as the Parks Inspector II position. This position spends a significant portion of his/her time inspecting contractor work and meeting with contractors to discuss performance. For other types of parks maintenance contracts, higher level staff split their time between contract management and other duties. This is the case for contracts like Habitat Restoration Services, which is managed by the Parks & Recreation Associate Engineer. For recreation services, a similar pattern is seen. For recreation programs, a recreation supervisor oversees individual instructor contracts. However, the Recreation Services Manager oversees contracts for senior services and the resident caretaker agreement for Carrillo Ranch. Staff members do not receive special training to manage contracts. Providing consistent guidance for contract managers and a standardized oversight process may improve the consistency in which contracts are managed. Overall, the city appears to allocate adequate oversight to its many types of contracts. The city assigns responsibility to different levels of staff depending on the intensity of oversight required to efficiently manage contracts. For example, for parks maintenance activities, such as landscaping, which requires frequent inspections, responsibility is assigned to a specialized staff member who has the time and experience to execute the task efficiently. During the site visit interviews, the city’s staff indicated that, while the current contract oversight structure is meeting existing contract demands, staff are being stretched to their limits in availability. These duties are not a core part of their position function but rather, add-on activities. Staff indicated that the city would have to increase the number of staff to manage contracts with additional increases in contracting. The city demands the highest quality services from its contractors, and to meet that level of service, significant contract oversight and monitoring is required. As the city considers the potential to increase contracting, it must also consider developing the oversight infrastructure in parallel to the increase in contracts. This will need to be accomplished through a combination of increased or dedicated staff and policies and procedures to manage the numerous contracts. Opportunity • Establish a rigorous performance contracting process by which all contracts have work type, frequency, and quality clearly defined. The city should then use these performance metrics to determine satisfaction with vendor services. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 31 The city may also consider making slight modifications to its oversight structure. A best practice for managing contracts is using “dual contract management points.” This system of contract management and oversight includes a centralized contract manager reviewing the “bigger” picture relative to outcomes, and a department specific manager reviewing daily tactical information and metrics. The table below outlines an example of how roles and responsibilities are shared between these two roles. Central Purchasing Manager Department Contract Manager Monthly Review Tactical Metrics/Outputs Sign off on vendor payment Reconcile Charges & Fees to Services Rendered Review Complaints Quarterly Assess overall Financial Performance (up charges, extra fees, etc.) Review Tactical Metrics/Outputs Review trends and identify needed changes or contract amendments Trend performance relative to metrics Trend complaints Annually Review actual fiscal impact Summarize key variances from anticipated costs, performance Review outcomes and summary of outputs, efficiency, and effectiveness measures Review vendor summary of outputs, efficiency, and effectiveness measures, and recommend performance objectives for next year Define performance measurement objectives or changes Define performance measurement objectives or changes Determine financial penalties and rewards In many respects, the city is using a similar structure with a “lead” manager (such as the Parks Inspector II position) with support being provided by higher level staff (Parks Supervisor or Trees Supervisor) when needed. However, increased institutionalization of this system by developing formalized Opportunity • Develop contract management training and a cohesive policy for contract managers to improve consistency and effecitiveness of contract management. Opportunity • Consider establishing positions that are dedicated to contract oversight. This would relieve some of the responsibilities of other staff and create a specialization in contract management, which would allow the city to more effectively monitor vendor performance. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 32 policies, procedures, processes, and tools can increase the effectiveness of the city’s contract oversight function. Contract Incentives and Disincentives The use of contract incentives and disincentives is also a best practice used to improve contract performance. Incentives may come in many forms including monetary bonuses or guaranteed contract renewals if certain performance criteria are met. Also, disincentives can be effective in deterring poor performance and are commonly seen as a monetary penalty if performance is not met. The city uses a series of disincentives in many of its contracts. Most common is a standard contract term that states the city can retain 10% of contract amounts until the service is completely and adequately delivered. This term appears in the majority of vendor (not individual instructor) contracts. However, the city uses this tool primarily for large capital projects and not smaller maintenance projects. For example, the city used this tool for bathroom renovations in the parks. This baseline disincentive is likely to have the greatest impact near the end of the contract, but may have minimal impact during early phases of the project. The city may consider applying this contract term only to applicable large projects, rather than all maintenance contracts. If the term is not used actively for a contract type, it should be removed to avoid confusion or weaken the effectiveness of the tool. To mitigate this risk, the city uses monetary penalties for poor performance that occur at each regular invoicing period for some of its parks maintenance contracts. For example, in the T&J Janitorial Contract, a percentage of payment may be reduced if a 95% or higher inspection rating is not achieved. These types of disincentives encourage contractors to provide consistent performance throughout the duration of the project. Finally, the city also uses contract renewal terms to incentivize contract performance. For most vendor contracts, the city offers an initial base period with multiple year options for the future. Contractors have an incentive to perform well with the opportunity to maintain contract relationships, and even increase payment if higher costs can be justified in option years. Contract renewal appears to be at the discretion of the city and guaranteed renewals are not offered as part of the contract terms. While the city uses a variety of disincentives to improve contract performance, it should consider expanded the use of incentives. The use of incentives offers a way to proactively encourage positive or higher than expected performance, rather than reacting to negative performance. Contractors can be rewarded for focusing on how to continually offer Best Value Services to the city. Examples may include:  Monetary bonuses for: - Exceeding minimum performance requirements - Identifying cost saving opportunities - Recommending and implementing “enhancements” to parks, rather than solely executing maintenance activities  Increasing pay or bonuses for high performing, or returning. class instructors Opportunity • Employ "dual contract" management approach to improve contract oversight and effecitveness BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 33 The city may also consider the expanded used of routine performance disincentives. Having contract terms that reduce routine payments encourages consistent performance for the duration of the contract. These types of disincentives are best applied to long-term contracts that perform routine and regular activities for the city, as opposed to one-off type activities. Finally, the city may consider the use of guaranteed renewals for contracts if objective performance criteria are met. If clear performance expectations are set with the contractor, it will have a precise understanding of what needs to be achieved to renew the contract, as opposed to a subjective opinion of the city’s staff. This can instill a sense of accountability for some contractors. This strategy should be used with caution as some contractors may simply meet the expectations and not exceed expectations to have their contract renewed. Vendor Input Proactive involvement of contractors in municipal service evaluations and reporting functions can improve the relationship with the municipality and create additional benefits. As contractors are more involved in assessing quality and identifying financial impacts of decisions, they can have clearer expectations for their work. The city currently uses regular meetings with vendors to identify issues and solutions for the work contractors are responsible for. In many contracts, the city clearly defines the frequency which these meetings will occur between the contractor and assigned city project manager. For most contracts, these are monthly meetings. Vendors have an opportunity to use these meetings to express concerns, report on performance, and identify areas for improvement. Based on the needs of the city, these appear to be meeting the city’s current needs. More frequent meetings may be required for higher profile services or poor performing contractors, as needed. Strong vendor communication is a practice that should be continued and strengthened if possible. All communications must be clear and multidirectional. With their expertise, vendors may have suggestions for improving service. As long as the city opens the lines of communications with vendors, the potential for higher quality is possible. The city must also be responsive in replying to vendor questions or performance issues. If issues are not addressed quickly, the vendor will not have an opportunity to improve performance. Overall, for reporting to be effective, two-way and consistent dialogue is critical. Conclusion Overall, the tools available for the city to improve contract management performance are interrelated and have tradeoffs. As performance expectations increase, the amount of time, effort, and infrastructure required to monitor performance increases as well. The city has the contracting experience to manage additional contracts moving forward. Difficult decisions will have to be made though, about the benefits and costs of increasing the infrastructure required to meet the potential growth of contracting.    Opportunity • Establish opportunities for vendor input at the onset of contracts and foster a collaborative contractor environment. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 34 Overview of Memorandum of Understanding   Currently, the city has one collective bargaining agreement which affects work in the Parks & Recreation Department. This agreement is with the Carlsbad City Employees Association (CCEA). The agreement is effective through December 31, 2012. Bargaining agreements are often the main driver of service delivery costs as they set the hours, wages, and special pay types that employees are entitled to. Many times, municipalities will cite these agreement-related costs as the reason for considering outsourcing services. Baker Tilly staff reviewed the most recent agreement and met with city staff to discuss the work rules that provide the greatest barriers to delivering cost effective services. The following charts represent a summary of these issues, as well as an approximate cost impact of each. Please note that the cost impacts are approximate and may have some variance. Bargaining Item Article 14, Section 3: Call Back Pay Call back duty occurs when an employee is ordered to return to duty on a non-regularly scheduled work shift. Call back does not occur when an employee is held over from his/her prior shift or is working prior to his/her regularly scheduled shift. An employee called back to duty shall be credited with a minimum of two (2) hours work commencing at the time of the page, except an employee shall not be entitled to said minimum if the assignment has been scheduled in advance and the employee is provided with at least seven (7) calendar days notice of said assignment. The two (2) hour minimum also will not apply if the work is performed on the phone or remotely via computer and takes 30 minutes or less to complete, in which case the employee shall be credited for a minimum of thirty (30) minutes work. Description/Issues  There are two main issues with call back pay: First, when callbacks arise less than two hours prior to the start of normal working hours, staff would actually Bargaining Item Article 14, Section 1: Overtime Any employee required to perform in excess of forty (40) hours in a seven (7) day cycle and/or in excess of an employee's scheduled work day shall receive compensation at the rate of time and one-half his/her regular rate of pay, except as outlined in Section 2 below. The regular rate of pay shall be calculated in conformance with the FLSA. Description/Issues  One of the methods by which municipalities have managed overtime costs is through the assignment of multiple shifts or work schedules. As we discuss below, the city manages seven day a week coverage, minimizing the amount of overtime needed.  Overtime can increase the cost of service if it is used in excess and to the point where productivity is at risk. This does not appear to be a problem for the city. Currently, the city averages 1,866 hours, or approximately .9 FTE. We would consider this an acceptable amount. Cost Impact Most of the costs associated with overtime expenses shown in the table below are for first responders at Parks & Recreation activities. The overtime earned by Parks & Recreation employees is minimal. The data below represents the last three years of overtime costs for Parks & Recreation staff. FY09 Cost FY10 Cost FY11 Cost $96,686 $88,409 $90,161 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 35 receive overtime for normal work hours. For example, if a staffer receives a callback at 6 AM when they would start at 7 AM, they are receiving overtime during the regular working hours. Second, if the work performed takes a small amount of time (i.e., less than 30 minutes to complete) staff receive two hours of call back pay. The city does have protections in place for instances such as these in the case of remote work completed via computer. Cost Impact Data is not available; the city does not track these items separately and is unable to account for the number of times callbacks have occurred, nor when they are within two hours of a normal shift. Bargaining Item Article 14, Section 4: Compensatory Time In lieu of receiving overtime pay pursuant to Section 1 above, an employee may elect, subject to department approval, to receive compensatory time off on a time and one-half basis. No employee shall accrue more than eighty (80) hours of such compensatory time. Should any employee exceed eighty (80) hours of accrued compensatory time, he/she shall be paid at time and one-half his/her regular rate. An employee may use such compensatory time within a reasonable period after making the request if the use of compensatory time does not unduly disrupt the operations of the department. At any time, an employee may elect to "cash out" any portion of his/her accrued compensatory time balance at his/her regular rate of pay by requesting this "cash out" on his/her time card. Description/Issues  Compensatory time avoids a “payout” of overtime hours and is often used to supplement vacation/personal leave. The current requirement to limit compensatory time to 80 hours reduces the city’s financial liability. There are many municipalities which do not limit the maximum number of hours staff may keep, increasing the future financial burden of the municipality to the cash out wage of the future salary as opposed to the wage at the time the compensatory time was earned. Cost Impact Deferred. The cost impact of this is difficult to calculate as staff do not cash out at the salary they earned the compensatory time; rather, they cash out at the salary at the time of cash out. However, the compensatory time hours earned is sufficiently low enough to not be of significant impact. Below is an accounting of the hours by fiscal year: FY09 FY10 FY11 1,163 724 551 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 36 Bargaining Item Article 14, Section 7: Training Time Training time outside normally scheduled work hours shall be compensated pursuant to Code of Federal Regulations (CFR), Section 785.27, et seq. Travel time outside normally scheduled work hours shall be compensated pursuant to CFR Section 785.33, et seq. When feasible, the Department will adjust the employee's work schedule to minimize the impact of travel and training time. Description/Issues  If training time is conducted outside of, and in addition to, normal working hours, this time would be compensated at the appropriate overtime rate. However, city staff indicate that they do not incur overtime related to training as they simply adjust working hours to accommodate all training opportunities. Cost Impact None – staff schedules are adjusted to accommodate training and eliminate overtime. Bargaining Item Article 14, Section 10: Standby Pay Wear a city-provided pager and carry a city-provided cellular phone during standby assignment; Accept $30.00 per day for each day on standby assignment. Description/Issues  The current agreement allows for staff to receive overtime compensation for any time worked outside of normal work hours and ensures a minimum level of overtime for callbacks. This provides adequate compensation for any time incurred after hours. This provision gives an employee additional compensation just for having a city pager and/or phone.  Usually, one person from landscaping and one from trees are assigned standby pay each day. The following summarizes the number of standby days that were paid for the last three years. FY09 FY10 FY11 716 723 725 Cost Impact FY09 Cost FY10 Cost FY11 Cost $21,480 $21,676 $21,750 Bargaining Item Article 15: Working Out of Classification Whenever the needs of the city require an employee to temporarily perform the duties of a higher classification than that in which the employee is currently employed for a period of more than twenty-one (21) calendar days, the employee shall receive additional pay. In such cases, the employee shall be paid at an appropriate level which will assure an increase of not less than five percent (5%) greater than the salary of his/her current position. Description/Issues  Out of classification pay appropriately compensates individuals for “acting up” in a position. The city has a clause that minimizes the effect of this item by restricting it only to a period of time greater than three weeks.  In FY09, there were 6 people receiving this type of pay; FY10 there were 10 staff; and, in FY 11 there were no employees receiving out of classification pay. Cost Impact FY09 Cost FY10 Cost FY11 Cost $2,516 $324 $0 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 37 Bargaining Item Article 17: Bilingual Pay The city will provide additional compensation to an employee, designated by the Human Resources Department, in the amount of $40.00 per pay period for the performance of bilingual skills. The determination of the number of persons/positions to be designated as bilingual is at the sole discretion of the city. In order to qualify for and receive bilingual pay, employees must pass a bilingual proficiency test in the Spanish language as determined appropriate by the city. This Article shall not be subject to the grievance procedure. Description/Issues  Currently, there are a limited number of staff receiving bilingual pay, limiting the impact of this bargaining item. The following chart provides an overview of the number of employees receiving bilingual pay: FY09 FY10 FY11 12 11 10 Cost Impact FY09 FY10 FY11 $7,200 $7,010 $5,980 Bargaining Item Article 18: Uniforms and Equipment The city shall continue to purchase safety boots or safety shoes for classifications as determined by the city. The city shall establish, subject to consultation with the affected employees, a voucher system to purchase safety footwear from city-approved vendors. Individual acquisitions made outside the voucher system must be pre-approved for reimbursement after review by the employee's supervisors. Acquisition of safety footwear shall be limited to a maximum of two (2) times per year not to exceed a cost of $150 per acquisition. In special circumstances as determined and pre-approved by the employee's supervisor, safety footwear acquisition requiring an expenditure over $150 may be made one (1) time per year, not to exceed a cost of $200. The city will reimburse any employee who is required to wear safety glasses and/or goggles up to one hundred seventy-five dollars ($175) in a calendar year for the cost of prescription lenses for such glasses and/or goggles. Description/Issues  To minimize costs resulting from this contractual item, the city could consider maintaining stock and issuing the uniforms directly to staff. Currently, the city does have a contract with a rental service to provide some uniforms for staff. However, staff still receive reimbursement for some items, and it is these that we suggest can be reviewed for efficiencies. Cost Impact The costs provided here reflect only those costs associated with employee reimbursement related to the Memorandum of Understanding (MOU); they do not include costs from rental companies. FY09 Cost FY10 Cost FY11 Cost $10,549 $37,841 $25,094 The city has been able to mitigate the costs of these items in a number of different ways. The primary effort is seen in the maintenance of a flexible and seven-day-a-week schedule for staff. By maintaining BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 38 the current schedules of 10/40, 5/80 and 9/80, the Parks & Recreation Department has spread staff coverage across the seven days, and as a result, minimizes the cost of overtime and call backs. Without such a staffing strategy, the city’s costs for overtime and call backs would be upwards of 50% more. In addition to these bargaining items, staff have expressed concerns with the bifurcation of the Maintenance Worker positions. Here, staff in Maintenance Worker I are automatically promoted to Maintenance Worker II after 12 months. The costs of this issue have not been factored into this analysis. To affect a change to this would require a major negotiation change to the contract. The table below summarizes the cost impact of each of the items described. In total, the city has identified issues averaging over $175,000/year. This represents 3.5% (average) of the expenditures for regular salary costs for Parks & Recreation employees. In general, this is lower than the typical industry posting. Recent projects that Baker Tilly consultants have worked on have anywhere between 9% – 12% cost impact on bargaining items. The City of Carlsbad’s is approximately one-third of our experience. Bargaining Item FY 2009 Cost FY 2010 Cost FY 2011 Cost Three Year Average Overtime $ 96,686 $ 88,409 $ 90,161 $ 91,752 Training Time $ 0.00 $ 0.00 $ 0.00 $ 0.00 Standby Pay $ 21,480 $ 21,676 $ 21,750 $ 21,635 Working Out of Classification $ 2,516 $ 324 $ 0.00 $ 947 Bilingual Pay $ 7,200 $ 7,010 $ 5,980 $ 6,730 Uniforms and Equipment $ 10,549 $ 37,841 $ 25,094 $ 24,494 Tool Reimbursement $ 0.00 $ 0.00 $ 0.00 $ 0.00 Longevity Pay $ 35,347 $ 40,631 $ 15,008 $ 30,329 Total Cost for All MOU Items $ 173,778 $ 195,891 $ 157,992 $ 175,887 Regular Salary Costs (Actuals) $ 4,925,632 $ 5,112,677 $ 5,135,529 $ 5,057,946 Cost Impacts as % of Salary Costs 3.5% 3.8% 3.0% 3.5% Overall, we consider the costs associated with the MOU to be reasonable and do not substantially affect the cost of service. In an effort to reduce these numbers, we suggest the following recommendations: Opportunity • Consider eliminating standby pay. As staff are compensated for any overtime hours (with minimum guarantees), we would argue that staff are adequately compensated. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 39   Opportunity • Complete a full analysis of spending on uniform and equipment reimbursement. Some uniforms are currently rented, and the city should consider if this can be expanded or, if the city might be able to keep some of these items in stock, as opposed to reimbursement. Opportunity • Consider moving to a lump sum longevity payment as opposed to a salary step. By moving to a lump sum longevity payment, the city would reduce the long term costs. Lump sum longevity payments do not factor into the hourly rates of staff and would reduce the costs of overtime, call back pay, etc. Many municipalities have moved to this method of payment to reduce long term costs. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 40 Department Staffing  Department Management Structure and Organization  Current Management Structure The City of Carlsbad Parks & Recreation Department has experienced an unusually high level of turnover in the Director position over the past several years. In times of transition between Directors, having a robust and experienced level of senior management has been helpful. There is some concern, however, that this level of management staffing has become too robust. The figure below represents the current management structure of the city’s Parks & Recreation Department. This does not include all employees, or even all employees with supervisory responsibilities, but attempts to depict the levels and structure of the top management positions. Organization Chart of Management Parks and Recreation Director Recreation Services Manager Parks Superintendent Recreation Services Manager Park Development Manager Trees Supervisor Parks Supervisor Rec. Area Manager Rec. Area Manager Rec. Area Manager Rec. Area Manager Rec. Area Manager Throughout the report, we make reference to “traditional parks” and “traditional recreation” activities. The Carlsbad Parks & Recreation Department used to be organized along such lines. In the figure above, traditional parks positions are shown in green and traditional recreation positions are shown in blue. To clarify these terms, traditional parks activities include such as things as landscaping, custodial services, hardscaping, tree maintenance, and the like; while traditional recreation items include activities such as educational programming, facility rental, and athletic programming. The table below shows specifically how the lines of business are treated when we use these terms in the report. Parks Custodial Services, Hardscape/Specialty Maintenance, Landscape Maintenance, Tree Maintenance/Management, and Trails/Open Space/Preserve Management Recreation Aquatic Services, Historic Park Services, Recreation Services, Rental Services, and Senior Services BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 41 While the organizational chart depicting current management positions appears to be predominately blue (representing recreation), the total staff effort in terms of hours is more heavily devoted to parks activities. As depicted in the figures below, the average hours worked per year expended were 40% towards parks activities and 60% towards recreation. The number of the top level management positions is similarly divided; roughly 37.5% toward parks and 62.5% towards recreation. While, typically, all management positions are compared to total staff, the top management positions are considered separately in this report for three reasons: 1) recent changes have been made in this management level, 2) vacancies exist, and, 3) concerns regarding the number and type of top management positions were expressed during field work. These figures include filled and vacant manager positions. Of note, one of the Recreation Area Manager positions shown is currently vacant. Management Analysis Using the organizational chart identified earlier in this chapter, we identify the number of management positions below. Please note that the .5 position identified in Parks and .5 in Recreation represent an even split of the Parks & Recreation Director’s time to these areas. Parks Recreation # % # % Management Positions 4.5 37.5%7.5 62.5% Hrs/Yr of Effort (Average 2009-11) 92,583 40.4%136,324 59.6% Span of Control: Manager to Employee Ratios The management structure discussion in the previous section raises questions about the appropriate number of management positions required for the various functions. A common approach to analyzing such concerns involves calculating the “span of control.” Simply put, span of control is the number of employees overseen by one manager; or, the number of direct reports a manager has. A narrow span of control means that each manager oversees only a small number of employees, while a wide span of control means that a larger number of employees report to each manager. The table below compares Parks & Recreation to a number of other industry benchmarks. Span of Control Comparison As you can see from the table below, the span of control for Carlsbad Parks is not quite as wide as other comparable city parks departments in California (10 direct reports per manager), but is wider than others when you compare it to the average of comparable public sector entities and industry recommendations together. Given the available research, we would set a range for span of control at 7 – 10. While both Parks and Recreation staff fall within this range, the city may be able to gain further efficiencies by adopting a span of control at the higher end of this range. This would bring the city in alignment with the comparables in the area. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 42   Percent Mgmt.  Span of  Control  City of Carlsbad‐ Actuals (2009‐11)      Carlsbad Parks 11.9% 7.4  Carlsbad Recreation 11.0% 8.1  Points of Comparison      Selection of CA City Parks Depts 9.1% 10.0  Selection of CA County Parks Depts 17.7% 4.6  Private Industry A 10.0% 9.0  Private Industry B 10.2% 8.8  King Co, WA 15.4% 5.5  City of Palo Alto, CA 14.5% 5.9  City of Portland, OR 13.3% 6.5  City of Seattle, WA 13.7% 6.3  Seattle Parks and Rec Dept. 18.5% 4.4  State of Texas  8.3% 11.0  National Performance Review 6.3% 15.0  Average of Comparables 14.6% 6.9  Governance Like other departments in the city, the Parks & Recreation Department has a Director and a management structure that is ultimately accountable to the City Manager. In the Parks & Recreation Department, however, there are also three advisory committees or commissions:  Parks & Recreation Commission  Senior Commission  Beach Preservation Committee Each of these bodies meets once monthly. Parks & Recreation personnel attend these meetings and provide supporting information and occasionally conduct analysis as well to respond to specific requests. Opportunity • The city should consider establishing a benchmark for span of control. We would recommend a level of 10 FTE per each manager. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 43 The Department estimates that a total of roughly 1.2 FTE of time is expended in support of these commissions annually. Of this, 0.6 FTE is expended in support of the Parks & Recreation Commission, and 0.3 FTE is expended in support of each of the other commissions. Of the respondents to our survey of parks and recreation departments in comparable municipalities, 75% report to only one board or commission. Nationally, 37% of parks and recreation departments have an advisory board, 46% have a governing board, and 17% do not report to a board or commission20. While the national figures do not specifically state the number of oversight bodies per department, it is interesting to note that while the City of Carlsbad’s Parks & Recreation Department reports to three different advisory boards, 17% report to no boards at all. Structural Changes A number of structural changes and position reductions have already happened across the various lines of business. For example, the current pool facility employs approximately 9 FTE positions. This number has decreased by roughly 1.5 FTE during the past two years through the elimination of part time positions. Also, a Maintenance Worker I/II position was eliminated and replaced with a contracted position for a savings of $5,000 in the past fiscal year. In addition to these changes, the Department has also recently executed, or planned, the following actions to yield efficiencies in the coming fiscal year – these cost savings will show up in future years’ actual costs. They represent an example of the work that the Department has undertaken independent of this analysis to reduce costs and increase efficiency. Parks/Trees Maintenance Division:  Redistributed the workload of 4.26 FTEs (1 Tree Trimmer II – Retired; 1.5 Maintenance Worker II – Retired/Resigned/ Unfilled; 1 Maintenance Aide – Terminated; and .76 Hourly Grounds Aide – 20 PRORAGIS Budget and Funding Report. National Parks & Recreation Association. Report run April 13, 2012. Opportunity • Consolidate the existing three commissions into a single commission to free up approximately .6 FTE. Opportunity • Consolidate the existing three commissions into a single commission to free up approximately .6 FTE. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 44 Unfilled) by increasing the efficiency of maintenance crews and adding areas to existing contracts – reducing annual potential expenditures by $260,631.  Re-structured and re-bid the agreement for Parks and Athletic Fields Landscape Maintenance Services – reducing the annual not-to-exceed value of the previous agreements by $97,230.  Re-structured and re-bid the agreement for Maintenance, Management, and Monitoring of City-Owned Habitat Management Plan Preserve Lands – reducing the annual not-to-exceed value of the previous agreement by $191,796. Recreation Division:  Savings in the amount of $277,696 was identified through full time staffing efficiencies, reduced maintenance and operations costs to reflect current spending levels, and increased usage of contractors.  The community coordinator full time position will be shared with the Communications Department to help improve the efficiency and effectiveness of marketing efforts.  A coordinated effort between full time and part time staff at the community centers led to a reduction in part time hours during non-peak time. ($100,000)  Youth and Adult Sports continue to find efficiencies through cross training of staff and outsourcing the score keepers and sports officials. ($60,000)  Preschool part time staffing requirements and pay was evaluated and, in some cases, a lower level assistant could be hired to lead to a savings in expenses. ($7,000)  Staff continues to closely monitor best value practices, redistributing resources to reduce M&O spending where applicable. ($17,000)  Continue to manage the operation of the Senior Center with existing staff resources. Parks & Recreation Administration will not recommend filling the Recreation Area Manager vacancy. ($93,696) Conclusions The Department should be applauded for having an appropriate span of control but should consider whether progress can be made in order to create additional savings. One option to consider is eliminating the vacant Recreation Area Manager position and restructuring the Recreation Area Managers into a structure that considers more than just geography. In terms of governance, the analysis also points to a high number of commissions to which the Department reports. These improvements could better focus the efforts of the Recreation Area Managers, reduce the total cost of services and increase the efficiency of the organization.   BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 45 Staffing by Line of Business  Effort in Full Time Equivalents (FTE) The City of Carlsbad primarily uses the term FTE (full time equivalent) when discussing part time or hourly staff effort. In this case, the city calculates 2,000 hours per year as one FTE. For employees hired in a full time capacity, the city takes a different approach. Instead of calculating these employees as “equivalents,” they describe this staff effort in terms of number of positions. Each of these full time positions is calculated at 2,080 hours per year. With this methodology, Carlsbad’s FY12 budget reports the following staff levels for the Parks & Recreation Department.   FY10 Actual FY11 Budget FY12 Budget FY13 Budget Full Time Positions (2,080 hrs = 1 FTE) 73.0 72.0 71.0 68.4 Hourly Positions (2,000 hrs = 1 FTE) 61.7 61.8 61.8 56.6 Total FTE in Parks & Recreation 134.7 133.8 132.8 125.0 While the total level of Parks & Recreation Department staff appears to be trending downward, the level of FTE per 1,000 residents is roughly 50 percent higher than the national figures21 and regional figures for jurisdictions of similar size. The table below provides national data for jurisdictions both smaller and larger than Carlsbad in terms of population. It also provides the data for the average of comparable California municipalities surveyed. National figures are from fiscal year 2010 and California comparables are from fiscal year 2011.  Total Dept. FTE per 1,000 population Carlsbad (Population 105,328) 1.28 Population 25,000-100,000 (median) 0.82 Population over 100,000 (median) 0.76 CA Comparables Surveyed 0.88 Another way to look at the current staffing for the Parks & Recreation Department is by ratio of full time to part time or hourly staff. According to information from the National Recreation & Parks Association (NRPA) database22, Parks & Recreation Departments were staffed 61% by full time employees and 39% by part time employees in 2011. Using Carlsbad’s 2011 figures from the FY12 budget, the split for the Carlsbad Parks & Recreation Department was 54% full time and 46% part time. This means Carlsbad uses part time staff more heavily than the national average, as shown in the following figure. One of the benefits of using a higher percentage of part time staff is the decreased cost of benefits. 21 Comparative Performance Measurement FY 2010 Data Report. ICMA Center for Performance Management. August 2011 22 PRORAGIS Budget and Funding Report. National Parks & Recreation Association. Report run April 13, 2012 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 46 While the budget figures give an overview of staff effort, the information is not as detailed as the actual payroll data. With that in mind, we used three years of actual payroll data provided by the city to conduct our staffing analysis. Specifically, we used three complete years of data from FY09 through FY11. This data allowed us to look more closely at staff levels over time by each of the ten lines of business identified by the Parks & Recreation Department for analysis (Aquatic Services, Custodial Services, Hardscape/Specialty Maintenance, Historic Park Services, Landscape Maintenance, Recreation Services, Rental Services, Senior Services, Tree Maintenance/Management, and Trails/Open Space/Preserve Management). Unfortunately, the city does not currently code payroll data by line of business. Instead, both hours worked and paid are tracked by individual employee number and by organizational key, or “org key.” These org keys correspond to a variety of items. An org key can represent specific activities, such as Senior Transportation, Youth & Adult Sports, or Special Events, or an org key can represent a location, such as Stagecoach Community Center, or Carrillo Ranch. In order to translate the payroll data into hours worked and hours paid by business line, conversion calculations were required. We worked in conjunction with Parks & Recreation Department Analysts to construct two conversion worksheets. One worksheet mapped each full time employee’s hours uniquely across business lines, based on that employee’s responsibilities. The other worksheet mapped the part time employees’ hours across business lines, based on the total time recorded by each org key. The table below shows the results of these calculations. 39% 46% 30% 40% 50% 60% 70% 80% 90% 100% National Average Carlsbad Parks & Rec Use of Hourly Staff Part Time Full Time BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 47 Again, it is important to remember that these figures represent hours logged in the payroll system as worked. Hours budgeted, but not worked, such as vacation or sick time, would not enter into this calculation. Similarly, if a full time or part time position remained vacant for any portion of time, this would reduce the hours of effort represented in the table above. For example, according to budget figures, total FTE in 2010 was 134.7, but actual hours worked in 2010 equates to only 111.0 FTE of effort, a difference of 23.7 FTE. An actual reduction in staffing of this size would only be possible if there were no leave time granted and no frictional productivity loss related to employee turnover. This is not a realistic possibility. Instead, some municipalities have attempted to realize reductions in staffing costs through contracting with external service providers, or shifting existing staffing strategies to include more hourly part time staff and fewer full time employees. The following chart demonstrates the mix of part time, full time and volunteer effort by line of business over the past three years using data from payroll and volunteer tracking reports (actual figures). This information will be discussed in more detail within the current state analysis section of each line of business. Hours Worked FTE Hours Worked FTE Hours Worked FTE Aquatic Services 21,086 10.4 20,193 10.0 18,189 9.0 Full Time 5,460 2.6 6,047 2.9 5,526 2.7 Part Time 15,626 7.8 14,146 7.1 12,663 6.3 Custodial Services 14,771 7.2 14,213 6.9 13,754 6.7 Full Time 9,957 4.8 9,887 4.8 8,843 4.3 Part Time 4,814 2.4 4,327 2.2 4,911 2.5 Hardscape/Specialty Maintenance 10,750 5.2 10,019 4.8 10,247 5.0 Full Time 9,064 4.4 8,485 4.1 8,551 4.1 Part Time 1,686 0.8 1,534 0.8 1,696 0.8 Historic Park Services 5,126 2.5 4,962 2.4 4,275 2.1 Full Time 1,868 0.9 1,876 0.9 1,869 0.9 Part Time 3,258 1.6 3,086 1.5 2,406 1.2 Landscape Maintenance 44,815 21.8 43,829 21.3 42,443 20.6 Full Time 32,766 15.8 32,813 15.8 30,054 14.4 Part Time 12,049 6.0 11,016 5.5 12,388 6.2 Recreation Services 77,639 38.5 72,719 36.0 71,986 35.6 Full Time 17,941 8.6 18,369 8.8 18,645 9.0 Part Time 59,699 29.8 54,350 27.2 53,341 26.7 Rental Services 18,440 9.1 17,853 8.8 18,372 9.0 Full Time 8,479 4.1 8,530 4.1 8,311 4.0 Part Time 9,961 5.0 9,323 4.7 10,061 5.0 Senior Services 20,621 10.2 18,600 9.2 18,913 9.3 Full Time 6,295 3.0 6,003 2.9 6,029 2.9 Part Time 14,327 7.2 12,597 6.3 12,884 6.4 Trails/Open Space/ Perserve Mgmt. 7,539 3.6 7,533 3.6 9,427 4.5 Full Time 7,214 3.5 7,250 3.5 9,088 4.4 Part Time 325 0.2 282 0.1 339 0.2 Tree Maintenance/ Mgmt. 15,601 7.5 16,502 8.0 16,308 7.9 Full Time 14,046 6.8 14,628 7.0 14,816 7.1 Part Time 1,554 0.8 1,873 0.9 1,492 0.7 Total Effort 236,387 116.0 226,422 111.0 223,914 109.8 Full Time 113,090 54.4 113,888 54.8 111,732 53.7 Part Time 123,297 61.6 112,534 56.3 112,181 56.1 2009 2010 2011Lines of Business BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 48 Staffing Trends The previous figure gives a sense of the variety of staffing approaches taken by the different lines of business. In general, the parks maintenance activities rely far more heavily on full time staff than part time staff and utilize little to no volunteer effort. The Trails/Open Space/Preserve Management line of business is the only one using volunteers for maintenance activities. The recreation side relies more heavily on part time staff than full time staff, and regularly utilizes volunteers. The strongest example of volunteer use is in the Senior Services line of business, in which the hours of volunteer effort nearly equal the hours of effort by paid staff. When looking at the department in aggregate, there has been an overall reduction in paid hours, however this appears to be driven by the larger lines of business (Recreation Services, Landscape Maintenance, Senior Services and Aquatics). The smaller lines of business generally maintained, or slightly increased, paid hours. The figures below show the trends in terms of total effort for the Department as a whole. Effort in Hours Worked 2009 2010 2011 Full Time Effort 113,090 113,888 111,732 Part Time Effort 123,297 112,534 112,181 Volunteer Effort 9,114 10,940 12,423 Total Effort 245,501 237,362 236,336 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 49 As you can see above, the total paid effort decreased each year, while the volunteer effort increased. The net effect of these changes was still a reduction in hours of effort department wide, and reflects a successful effort by the Department to reduce costs while maintaining services. Conclusions Regarding Staffing by Line of Business The Department has done well to reduce personnel expenditures over the three years included in our analysis. When compared to both regional and national figures; however, the Department still appears to be staffed quite generously. In any future efforts to identify opportunities for moderating staff size and personnel expenditures, the Department should consider how time is recorded and tracked in payroll data. This will enhance reporting capabilities to support management decisions regarding staffing levels. In addition to the level of staffing, the analysis included type of staffing. It revealed that the recreation lines of business utilized more part time staff than did the parks maintenance lines of business. As the benefits costs associated with part time staff are lower, cost savings could be possible by increasing the proportion of part time staff used in park maintenance. Another note of success for the Department is the increase in hours of volunteer effort each year. This growth may have offset some of the reductions in paid effort, while allowing service levels and quality to remain unchanged in the eyes of the public.   BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 50 Availability   Personnel costs are by far the largest expense category in most municipal budgets. Therefore, highly effective municipalities must closely monitor staffing costs and productivity to maintain performance standards at the lowest overall unit cost of service. In this analysis, we use availability instead of productivity as a proxy measure for efficiency. Availability is different from productivity in that availability is not measured by the number of units produced per employee (output), but rather by the number of available hours, compared to the number of hours paid. Available hours are hours worked by the employee, excluding leave time. Calculating an availability ratio (hours worked over hours paid) allows you to quantify the current effort in any given area. You can determine how many hours, rather than how many bodies it takes to complete a given set of tasks. The availability ratio can also allow the city to review how employees use the leave time allotted to them and consequently predict the future availability of staff to perform work. This measure can also help the city consider options for future staffing, including number and type of employees needed. As stated in the section on staffing by line of business, actual payroll figures for FY09 through FY11 were the source of both hours worked and hours paid, and two crosswalks were used to translate this data to hours by business line. Once the hours were allocated to the appropriate business line, total hours worked (by both part time and full time staff) were divided by total hours paid to calculate the availability ratio for each business line. These ratios were then compared to standards published by the U.S. Bureau of Labor Statistics (BLS) in related industries. Each year, the BLS calculates and publishes ratios of hours worked to hours paid by industry. The industries are grouped into North American Industry Classification System (NAICS) supersectors. Each supersector is a compilation of multiple similar industry codes used by the NAICS. There are thousands of codes, but analysis is typically published on the sector or supersector level. There is no “Parks & Recreation” supersector in the BLS data, but there are clear parallels. The Natural Resources supersector closely aligns with park maintenance activities and the Leisure and Hospitality supersector closely aligns with recreation activities. The ratios for these two supersectors are shown individually throughout the analysis as is the average ratio calculated across all NAICS supersectors. These points of comparison gauge the availability of each of the business lines. Analysis of Leave The employees at the city receive different types of leave dependent upon their classification and longevity. The chart below represents the average leave received by full time employees per year by an employee who works 8 hours per day for 5 days per week after 5 years of employment. Leave Type Estimated Days/Year Holidays 13.0 days Vacation 15.2 days Sick Leave 12.2 days Total 40.4 days or 8 weeks The table above only represents typical categories of leave accrual. It does not include compensatory (comp) time, executive leave, bereavement leave, workers compensation, or other leave such as military leave, administrative leave, and jury duty. From FY09 through FY11, the Department’s full time employees utilized an average of 345 hrs of leave per employee per year. This means that between holidays, vacation, sick and other leave, the average full time employee was unavailable for work roughly 8.6 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 51 weeks per year. The chart below demonstrates how the leave time was utilized across the Parks & Recreation Department from FY09 through FY11. As shown above, approximately one third of leave taken by full time employees in the Department was for holidays, one third was for vacation, and the remaining third was for other categories of leave. This nearly equal use of vacation and holiday time by Department employees, 33% and 35% respectively, essentially matches national figures. The average state and local government worker is granted 11 paid holidays per year and 15 vacation days per year after 5 years of service.23 A 2010 survey indicated that the average worker in the US used approximately 78% of granted vacation24. The average expected vacation use would then be 11.7 days, approximately equal to the 11 holidays granted on average. Full Time employees working for a full year25 in the Carlsbad Parks & Recreation Department used an average of 13 holidays and 12.5 vacation days per year between 2009 and 2011. The table below provides additional detail concerning the average annual leave usage by full time staff in the Parks & Recreation Department. Leave Type Days Used Vacation 12.50 Sick 8.16 Holiday 13.06 23 Bureau of Labor Statistics, Employee Benefits Survey, March 2010 24 CNN Money. “$67 Billion in Vacation Days, Out the Window.” May 25, 2011. Available at http://money.cnn.com/2011/05/25/pf/unused_vacation_days/index.htm 25 Employees who were hired midyear or were on payroll less than 12 months for other reasons were excluded. SICK 20% VACATION 33% HOLIDAY 35%BEREAVEMENT 1% WORKERS COMP 1% OTHER LEAVE 10% BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 52 Leave Type Days Used Bereavement 1.36 Workers Compensation 3.40 Other Leave (Includes Compensatory and Executive Leave) 4.64 Total 43.12 The employees of the Parks & Recreation Department use slightly more holiday time and vacation time than the national averages. Two of the 13 holidays granted to department employees are floating holidays. Without these, the Department would more closely align with the national average of 11. In terms of vacation, the higher usage by the Department could be attributed to staff longevity, resulting in greater access to vacation days. Across all 50 states, the median number of sick days accrued per year by state employees is 12 days, and all federal civilian employees receive 13 days per year26. With these public sector entities in mind, the 12.2 days accrued per year by the average Parks & Recreation employee seems reasonable. As for use of sick days, the average American worker uses 5.6 sick days per year27, but federal government employees approaching retirement, use on average between 8 and 9 days of sick leave per year.28 In comparison to these figures, the 8.16 sick days per year used by the average Carlsbad Parks & Recreation employee seems high. The sick leave granted and used by the Department seems especially high when compared to the private sector. The following figure shows the average number of sick leave days provided to full-time private industry workers in plans with fixed annual paid sick leave days, by years of service, in selected industries. The data is from the March 2009 National Compensation Survey (NCS)29. The industries groups created by NCS for this survey which most closely align with parks and recreation activities are the leisure and hospitality industry and the construction industry. Unlike the BLS supersectors mentioned earlier, there is no natural resources category in this survey. 26 Congressional Research Service. “Sick Leave: Usage Rates and Leave Balances for Employees in Major Federal Retirement Systems.” March 20, 2008. 27 Wolters Kluwer Law & Business. “CCH 2007 Unscheduled Absence Survey.” October 10, 2007. 28 Congressional Research Service. “Sick Leave: Usage Rates and Leave Balances for Employees in Major Federal Retirement Systems.” March 20, 2008. 29 Bureau of Labor Statistics. “Paid Sick Leave: Prevalence, Provision, and Usage among Full-Time Workers in Private Industry.” February 29, 2012. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 53 Sick Leave Days Provided Per Year by Industry and Years of Service   Not only does the NCS collect the amount of sick leave provided by industry, but it also collects the average amount of sick leave used for each job. Workers in industries most closely aligned with parks and recreation activities, the leisure and hospitality industry and the construction industry, used only about 2 days of sick leave per year. This is a significantly lower number than the 8.16 sick days per year used by the average City of Carlsbad Parks & Recreation employee. With this disparity in mind, we recommend that the city investigate absence control programs. Examples of absence control programs include: buying back unused sick leave, giving bonuses for low absenteeism, and requiring verification of illness. The most effective of these approaches, according to national survey results is the creation of paid leave banks.30 The table below provides additional detail on other options. Absence Control Program Effectiveness Rating* Percent Use Paid Leave Banks 3.6 60% Disciplinary Action 3.4 89% Buy Back 3.4 53% Bonus 3.3 51% 30 Wolters Kluwer Law & Business. “CCH 2007 Unscheduled Absence Survey.” October 10, 2007. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 54 Absence Control Program Effectiveness Rating* Percent Use Verification of Illness 3.2 74% Yearly Review 2.9 82% No Fault 2.9 59% Personal Recognition 2.6 57% *(1: Not Very Effective to 5: Very Effective) The city may wish to further explore the benefits of a conversion from multiple categories of leave to a single category of Paid Time Off (PTO). For example, the city could reduce absenteeism by transitioning to a pool of PTO hours, rather than the current segregated types of leave (sick, vacation, personal, etc.). This would, in turn, increase the amount of time available and increase the efficiency of service delivery. A study conducted by the World at Work organization found that in 384 different organizations using a PTO plan, 55% reported that the switch improved absenteeism.31 In a different study, this gain in efficiency is quantified. The National Center for Policy Analysis reported that employers spent an average of 14.6 percent of their payroll on absentee costs. This was markedly higher that the 8.7% absentee cost associated with employers that used a PTO plan.32 That means the ratio of hours worked per hours paid could be expected to increase by approximately 5.9 percent, providing over two additional hours per week for each employee. As an example of potential annual savings, the following calculation shows what 5.9 percent gains in efficiency in an organization with 71 full time employees, compensated at an average of $25 per hour could mean. Availability by Business Line As mentioned in the previous section, the amount of leave used relates directly to employee availability. From FY09 through FY11, the availability ratio (hours worked over hours paid) for full time employees of the Parks & Recreation Department was 85.5%. Availability ratios can be impacted by the bargaining unit 31 World at Work, “Paid Time Off Programs and Practices,” (2010). Available at http://www.worldatwork.org/waw/adimLink?id=38913 32 National Center for Policy Analysis, “Employee Time-Off Costs Plenty,” (2002), available at http://www.ncpa.org/sub/dpd/index.php?Article_ID=6528 Opportunity • We recommend that the City consider a conversion from multiple categories of leave to a single category of Paid Time Off (PTO). 5.9% X 40 hrs/wk X 52 wks/yr X $25/hr X 71 employees = $217,828/year BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 55 status and the seniority of full time staff, which both dictate the amount of available leave. The figure below shows the availability ratios for each business line when looking only at full time employees. Availability of Full Time Employees Only The Parks & Recreation Department uses a significant amount of part time employees. Since part time employees are not granted paid leave benefits, such as vacation or sick leave, they are, essentially, 100 percent available. When part time employee hours and full time employee hours are considered together, the Department’s availability ratio increases from 85.5% to 91.7%. With that in mind, business lines which more heavily utilize part time staff may have a higher overall availability percentage. This relationship will be seen later in the analysis. The following figure shows the availability ratios by lines of business when all employee hours, full time and part time, are included in the calculation. This is the methodology used by the BLS in their ratios. With this approach, the variability between years is less dramatic, indicating that the effort required to perform the functions of each business line is relatively consistent from year to year. Also, a pattern appears to emerge with the traditional “parks” activities having lower availability than traditional “recreation” activities. 76% 78% 80% 82% 84% 86% 88% 90%Custodial ServicesHardscape / Specialty MaintenanceLandscape MaintenanceTrails/Open Space/  Perserve ManagementTree Maintenance/ ManagementAquatic ServicesHistoric Park ServicesRecreation ServicesRental ServicesSenior Services2009 2010 2011 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 56 Availability of All Employees (Part and Full Time Together) As mentioned previously, business lines which more heavily utilize part time staff may have a higher overall availability percentage. When comparing these availability ratios to the National Standards from the BLS, the business lines with higher utilization of part time staff fair better than the NAICS sectors and the business lines with lower utilization of part time staff fair worse against these benchmarks in terms of availability. The following table ranks the business lines in order from most available to least available and includes the NAICS sectors. The 2011 BLS ratios have not yet been published, so an average of the 2009 and 2010 results were used to ensure a meaningful comparison. Business Line / Sector FY10 Average Aquatic Services 96.20% Recreation Services 96.00% Historic Park Services 94.90% NAICS: NATURAL RESOURCES 94.10% NAICS: LEISURE AND HOSPITALITY 93.60% Senior Services 93.60% Rental Services 93.10% NAICS: ALL SECTORS 92.60% 75.0% 80.0% 85.0% 90.0% 95.0% 100.0%Recreation ServicesAquatic ServicesHistoric Park ServicesSenior ServicesRental ServicesCustodial ServicesLandscape MaintenanceHardscape / Specialty MaintenanceTree Maintenance/ ManagementTrials/Open Space/  Perserve Management2009 2010 2011 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 57 Business Line / Sector FY10 Average Custodial Services 90.90% Landscape Maintenance 89.30% Hardscape / Specialty Maintenance 87.00% Tree Maintenance/ Management 85.60% Trials/Open Space/ Preserve Management 84.10% Across the Department, the total number of part time hours worked and the total number of full time hours worked are roughly equal. However, when looking at individual business lines, the use of part time staff varies considerably. The traditional parks activities use fewer part time staff than the traditional recreation activities. The following table provides the percent of hours worked by part time staff compared to total hours worked in each business line. Business Line Percentage Part Time Recreation Services 72.2% Aquatic Services 68.2% Senior Services 64.1% Historic Park Services 57.6% Rental Services 50.0% Custodial Services 29.7% Landscape Maintenance 25.0% Hardscape / Specialty Maintenance 13.8% Tree Maintenance/ Management 8.7% Trials/Open Space/ Preserve Management 3.3% The relationship between the use of part time staff used and the availability ratio is very clear when the business lines are ranked by each of these measures: the larger the share of part time staff used, the higher the availability ratio. This correlation is almost one to one. In the same way that part time staff have high availability ratios, so do contracted staff. For most intents and purposes, every hour paid is an hour worked. If the city were to contract for services, the contracted hours would have a similar impact on availability ratios as the hours worked by part time staff. Specific options involving contracted services are discussed under the lines of business, but in general productivity (measured by availability ratios) could be enhanced through any of the following:  Reducing the number of full time staff and increasing part time staff hours  Reducing the number of full time staff and increasing contracted hours  Reducing the number of full time staff and making no other changes  Keeping staffing constant, but converting to a system of Paid Time Off for full time staff BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 58 Conclusion As shown in the Staffing by Line of Business section, the Department uses roughly equal amounts of part time staff hours and full time staff hours to deliver services. While that section referenced the reduced benefits costs of part time staff as compared to full time, this section raises the increased availability potential in part time staff over full time. With that in mind, the various lines of business should consider in what ways they might be able to increase their percentage of part time staff. In considering alternative service delivery options (such as contracting for services) a key consideration is the level of availability - a key measure in productivity and the amount of paid per hour worked. Toward that end, we recommend tracking availability on a monthly basis. This will allow you to observe seasonal differences.   BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 59 Line of Business Analysis  In the upcoming sections, we look at the current state of each line of business individually. We group the lines of business into two major groups: Parks Maintenance and Recreation Services. We provide detail regarding the following topics:  Description of Activities  Cost of Service33  Service Statistics  Benchmarks and Industry Standards  Current Outsourced Activities We then present possible future state alternatives for each line of business. Within each alternative, we highlight the following information:  Area of Opportunity  Description of the Alternative  Estimated Savings/Reallocation/Revenue The city may wish to consider moving forward with any number of the alternatives described. In most cases, they are not mutually exclusive. Some alternatives may be feasible to select and implement in the short term, while others may require a phased approach. The key questions to be answered by this section include:  What level of resources is currently committed to this function?  What service level expectations have been set?  How do we compare to our peers relative to overall cost and approach to the delivery of these areas?  What are the industry trends in this area? What best practices exist?  What can we do to lower the cost to the residents of the city, while preserving current service levels and standards of quality? After assessing the current state of activities, we present alternatives for the future. These are categorized as Operational Efficiency (OE), Managed Competition (MC) or Direct Outsourcing (DO). We also identify an “Opportunity Amount” which may be a savings amount, a reallocation amount or a revenue opportunity. The specifics regarding each are included in each line of business section. Note that ranges are provided for some opportunities, as there is a variance on the range of savings/reallocation/revenue. The following chart provides an overview of all the opportunities recommended in the Future State sections of the chapters ahead. 33 All cost of service data is calculated utilizing actual expenditure data provided by the city’s financial staff and validated by departmental budget analysts. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 60 Parks Maintenance List of Opportunities Area & Type of Opportunity Option Opportunity Amount (Annual Unless Otherwise Noted) Beginning on Page Number Parks Maintenance General Direct Outsourcing Outsource all parks maintenance activities $ 1,700,000 to $ 3,866,000 Page 66 Operational Efficiency Reduce duplication of Hansen work order data entry through the use of mobile computing platforms $ 20,000 Operational Efficiency Eliminate duplication of tree inventory data between Hansen and contractor’s system $ 7,000 Custodial Services Operational Efficiency Move maintenance of exterior block houses and restrooms to Property & Environmental Management Department No tangible cost savings to Parks & Recreation Page 75 Hardscape/Specialty Maintenance Operational Efficiency Consolidate contracts for one time activities into citywide master contracts $ 13,900 Page 84 Operational Efficiency Fully utilize vendors for specialized services No tangible cost Managed Competition Perform managed competition for hardscape activities $ 216,000 Operational Efficiency Utilize alternative materials for Carrillo Ranch parking lot TBD Landscape Maintenance Operational Efficiency Expand the use of synthetic turf to enhance user’s experience and achieve potential cost savings $ 71,300 Page 98 Operational Efficiency Implement cost containment on fuel Deferred to Property & Environmental Management Direct Outsourcing Outsource landscaping activities $ 925,700 Direct Outsourcing Outsource pest control activities that are currently conducted in-house $ 14,400 to $17,900 Trails/Open Space/ Preserve Maintenance Operational Efficiency Expand use of Volunteer Trail Program to meet trail development goals, enhance existing trails or reduce costs $ 6,700 Page 112 Managed Competition Conduct managed competition for trail maintenance activities $ 111,300 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 61 Parks Maintenance List of Opportunities Area & Type of Opportunity Option Opportunity Amount (Annual Unless Otherwise Noted) Beginning on Page Number Tree Maintenance Direct Outsourcing Outsource tree maintenance activities $ 690,000 Page 122 Recreation Services List of Opportunities Area & Type of Opportunity Option Opportunity Amount (Annual Unless Otherwise Noted) Beginning on Page Number Aquatic Services Operational Efficiency Increase fee levels $ 34,500 Page 135 Operational Efficiency Focus pool use on high revenue generation activities $ 30,500 Operational Efficiency Centralize registration and marketing Not available Operational Efficiency Expand the use of consortium or master contract based purchasing for pool supplies Not available Direct Outsourcing Outsource routine pool maintenance $ 41,200 Direct Outsourcing Increase part time and/or contractual staff $ 0-107,000 Direct Outsourcing Outsource custodial for pool and aquatics park bathrooms Include as part of Property & Environmental Management review Historical Parks Services Operational Efficiency Enhance coordination with Friends of Carrillo Ranch No tangible savings Page 144 Operational Efficiency Coordinate grant writing among city departments No tangible savings Direct Outsourcing Outsource educational programming, visitor services and tours $ 21,900 - $60,100 Recreation Services Operational Efficiency Promote online registrations $43,800 - $112,400 first year to $46,800 - $140,400 annually Page 153 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 62 Recreation Services List of Opportunities Area & Type of Opportunity Option Opportunity Amount (Annual Unless Otherwise Noted) Beginning on Page Number Operational Efficiency Reduce percent of fee revenue provided to instructors from 65% to 60% $ 25,000 Direct Outsourcing Outsource traditional summer and spring camp programs $ 10,500 - $21,500 Direct Outsourcing Outsource coordination of classes and sports programming TBD Rental Services Operational Efficiency Centralization of staff $ 93,900 Page 163 Operational Efficiency Adjust rental rates $ 125,000 Direct Outsourcing Rental support services TBD Senior Services Operational Efficiency Administrative support reduction $ 25,900 Page 170 Direct Outsourcing Outsource transportation services $ 12,500 per year $ 30,000 one-time Direct Outsourcing Outsource congregate meal support $ 21,000 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 63 Parks Maintenance Overview  For the purposes of this report and to facilitate an effective comparison with national data, we are defining “parks maintenance” as a composition of activities that fall within the Landscaping, Trees, Hardscape, Trails/Open Space/Preserve, and Custodial lines of business. In addition, this grouping permits a comparison of a bundled set of services that a vendor may provide. In this section, we discuss parks maintenance costs in general and make observations and recommendations that cross Landscaping, Trees, Hardscape, Trails/Open Space/Preserve, and Custodial lines of business. Cost of Service  As defined, the cost of service for the parks maintenance includes the collective costs for the Landscaping, Trees, Hardscape, Trails/Open Space/Preserve, and Custodial lines of business. An overall view of the parks maintenance expenditures reveals relatively stable costs from FY09 to FY11. The increase of approximately $900,000 in direct costs can be partially attributed to large increases with the Trails/Open Space/Preserve line of business. Here a shift in staff and maintenance and operations costs contributed to the overall increase. Other specific shifts in cost are described in more detail in each separate line of business discussion. Overall, indirect costs remained relatively constant from FY09 to FY11 indicating limited changes in overhead cost and allocations to parks maintenance activities. The primary source of revenue for the parks maintenance activities is from the tree and median maintenance assessment district. The revenues are dedicated specifically to certain street tree areas and medians. Revenues have remained relatively consistent from FY09 to FY11 due to limited increases in the assessment. Direct Costs FY09 Actuals FY10 Actuals FY11 Actuals Personnel $3,662,025 $3,832,972 $4,054,016 Maintenance and Operations (Direct Costs) $2,211,976 $2,276,629 $2,794,940 Capital Outlay $186,036 $34,384 $65,120 Subtotal Direct Costs $6,060,037 $6,143,985 $6,914,076 Indirect Costs FY09 Actuals FY10 Actuals FY11 Actuals Organization wide centralized services34 $868,924 $868,924 $868,924 IT Overhead $125,190 $154,200 $120,342 Fleet Overhead $555,292 $562,027 $541,982 Other Overhead $185,078 $228,755 $230,283 Subtotal Indirect Costs $1,784,825 $1,864,248 $1,811,873 Total Direct & Indirect Costs $7,794,521 $7,957,891 $8,675,608 Value of Volunteer Services FY09 Actuals FY10 Actuals FY11 Actuals Volunteer Services $37,225 $45,648 $52,227 34 Organization wide centralized services includes those overhead costs from the city’s Cost Allocation Plan. Other Overhead includes departmental-specific overhead attributed to this line of business. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 64 Revenue FY09 Actuals FY10 Actuals FY11 Actuals Revenue (all sources) $846,859 $915,772 $843,029 Between FY09 and FY11, the total number of parks maintenance related full time staff realized a net decrease of approximately 0.61 FTE. This was due to terminations and other personnel departures combined with the transfer of staff from other departments to Parks & Recreation. In total, part time staff increased between FY09 and FY11. Additional discussion of shift in personnel will be discussed in each line of business section of the report. 2009 2010 2011 Total Paid Effort 45.33 44.64 44.72 Full Time 35.12 35.13 34.30 Part Time 10.21 9.52 10.41 Volunteer Effort 0.79 0.98 1.12 By including all direct costs for parks maintenance activities, we created a comparison of “parks maintenance” services cost by landscaped acreage. It is important to note in this comparison that the volume and scope of the parks maintenance activities may vary greatly between municipalities. For example, Comparable A did not include median acreage or costs in its survey response. However, this comparison can provide a relative perspective on how much municipalities are spending for the total acreage maintained. More detailed cost comparisons for each line of business will be made in subsequent sections. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 65 City of Carlsbad NRPA National35 Comp. A36 Comp. B Comp. C Comp. E Comp. F Total Direct Parks Maintenance Costs $ 6,914,076 Not available $ 1,744,971 $ 3,173,533 $ 5,699,685 $ 6,145,938 $ 5,622,582 Total Landscaped Acreage (Includes parks and medians) 475 Not available 335 228 561 241 424 Parks Maintenance Cost Per Landscaped Acre $ 14,556 $ 13,452 $ 5,209 $ 13,919 $ 10,160 $ 25,544 $ 13,261 Regional municipalities and the city all have relatively comparable costs per acre for all parks maintenance services. With the exception of two outliers (Comparable A and E), all comparable municipalities and the NRPA national mean range between approximately $10,000 and $15,000 per landscaping acre. The city is approximately $1,000 above the NRPA national “upper quartile” average of $13,452 per landscaping acre. We believe the use of the upper quartile estimate is the best comparison due to the city’s high per capita income level and status as a tourism center. Comparable A’s costs are likely to be lower due to the lack of several key costs in the calculation including medians, custodial, and hardscape. Unfortunately, insufficient information is available from Comparable E to determine why costs are high relative to other municipalities. This can most likely be explained in that the scope of parks maintenance activities for Comparable E is broader than other comparable municipalities. For example, the scope of custodial duties for the Parks & Recreation Department may expand to other facility types than just restrooms. Other specific costing data for Comparable E including landscaping and trail costs appear to be reasonable and will be discussed in subsequent sections of the report. In comparison to other municipalities, the city appears to be doing well in providing parks maintenance services at a realistic price. As discussed, the slightly higher than above average costs are likely due to the higher service levels needed as a tourism area and a deliberate choice of the city to excel in parks maintenance service provision. Also, the city’s decision to maintain high profile and larger parks through in-house services, rather than contracting, may also contribute to the higher costs as staff spend extra time in these areas to maintain a higher level of service than other landscaped areas. Comparable F reported using a similar strategy of outsourcing smaller parks. Its costs per landscaped acre of $13,261 is comparable to the city.     35 National Recreation and Parks Association PRORAGIS study. Data represents upper quartile of respondents. Median was $4,837 and lower quartile $2,454. 36 Does not include median acreage. Comparable municipality A did not include median acreage or costs for median landscaping, hardscape, or custodial in its submission. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 66 Parks Maintenance: Future State Alternatives  Area & Focus Option Opportunity Amount (Annual Unless Otherwise Noted) DO Outsource all parks maintenance activities $ 1,700,000 to $ 3,866,000 OE Reduce duplication of Hansen work order data entry through the use of mobile computing platforms $ 20,000 OE Eliminate duplication of tree inventory data between Hansen and contractor’s system $ 7,000 In this section, we explore operational improvements, outsourcing, and managed competition opportunities that cross parks maintenance lines of business. In subsequent sections, individual recommendations are made for each parks maintenance line of business. Parks Maintenance Full Outsourcing Model A potential method of cost savings for the city is to completely outsource all parks maintenance activities including custodial, hardscape, landscape, trails, and tree maintenance services. We do not recommend including preserve management in this potential bundle of services, because of the cost effectiveness of the current preserve management structure. The strategy of outsourcing all parks maintenance services is occurring within San Diego County. Comparable A indicated that all parks maintenance activities were currently contracted. Assuming strong contract management, cost savings may be achieved by “bundling” services with a single vendor. The vendor would provide some level of discount for the large volume of services being provided. An additional benefit for the city with this strategy is having fewer vendor contracts to manage, as most services would be provided by a single vendor. At the same time, there is some risk involved. If the one vendor does not meet performance expectations, the effect may be realized in all parks maintenance services and not isolated to a single line of business. In order to identify the potential cost for a complete and “bundled” outsourcing of parks maintenance activities, we contacted ten national vendors to provide a cost estimate based on the city’s FY 2011 scope and levels of service. We provided vendors a worksheet (Appendix 1 – Work Breakdown Structure) that contained a volume of work and service levels based on the city’s service level in FY11. Only one vendor agreed to participate and provided a cost estimate for custodial, hardscape, landscape, trails, and tree maintenance services. This is a well established national vendor with over 60 years of experience that provides parks maintenance activities for municipalities across the county, and over nine municipalities in the Southern California region alone. The vendor cost estimate is based off of the city’s service levels in FY11. However, the city should see this calculation as potential for savings, and not an expectation for actual savings. First, the vendor explicitly stated that visual inspections of the work areas would be required to provide a more accurate estimate. Second, additional vendor estimates would strengthen the estimated cost. Finally, a formal Request for Information (RFI) or Request for Proposals (RFP) process is required to fully vet the potential cost savings. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 67 The potential for cost savings exists in all parks maintenance functions based on other data discussed in the parks maintenance section of this report. Primarily, there is a significant difference between personnel costs (i.e., salary and benefits rate paid) between the city and private parks maintenance providers in Carlsbad’s region. While we provided a complete work breakdown structure describing volume of parks, specifics relative to park acreage and amenities, and required frequency of work tasks to be comparable to the current city levels, it is not possible to expect this cost savings to be considered final until a full RFI or RFP process is completed. The vendor estimated that routine parks maintenance services would cost approximately $2.8 million, which includes personnel, equipment, and supply costs (excluding preserve management). Direct Costs Vendor Fees $ 2,800,000 Equipment & Supplies Included Subtotal Direct Costs37 $ 2,800,000 Indirect Costs Ongoing contract management tasks (city staff time and resources) $ 848,000 Other Overhead Tasks38 $ 364,643 Qualitative/Soft Costs Included Subtotal Indirect Costs $ 1,212,643 Total Direct & Indirect Costs – Vendor Option $ 4,012,643 We estimate that a total of nine city staff members would be required to provide oversight for the comprehensive parks maintenance contract, at an approximate cost of $848,088.39 In total, the overall cost of outsourcing all parks maintenance activities based on the vendor estimate and required staff oversight would be approximately $3.6 million. Cost Comparison Current Internal Cost $ 7,879,000 Fully Outsourced Option $ 4,012,643 Potential Savings $ 3,866,357 In FY11, the city spent approximately $7.9 million on routine parks maintenance activities, excluding preserve management and onetime costs for hardscape projects.40 Compared to the city’s cost, the completely outsourced parks maintenance model is approximately $3.9 million less. Based on available data, we believe that this is an upper boundary for potential savings the city could experience if it were able to achieve a highly competitive price quote from a vendor. To ensure the city does not overestimate potential savings, we also offer a lower estimate. In looking at the minimum cost savings that may be achieved through managed competition or direct outsourcing in parks maintenance activities, we estimate that the city could achieve approximately $1.7 million in 37 Estimate is an average of the vendor’s high and low estimate for comprehensive parks maintenance services. 38 Calculated by developing a per employee overhead rate: FY11 Overhead ($1,811,873) divided by FY11 Effort (44.72) = $40,516. Multiplied by 9 overhead employees. 39 Cost for contract management based on nine FTEs at an average loaded personnel cost of $94,232. 40 Total parks maintenance estimate excludes preserve management costs of $733,871 and $62,771 in estimated one-time hardscape projects. City estimate includes indirect costs. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 68 savings.41 This is calculated by using the lowest estimate of ERI salary data presented in each of the lines of business. The following chart provides a summary of this data: Custodial No managed competition or outsourcing Hardscape $ 215,985 Landscape $ 925,732 Trails $ 111,337 Trees $ 466,797 Total $ 1,719,851 Operational Efficiencies  More Consistent Use of Hansen Currently, the Department uses the Hansen Work Order System with the trees, landscaping, hardscape, and trails lines of business. The system has the potential to serve multiple purposes including issuing work orders from a centralized management structure, recording completed work, and serving as a data archive for workload of specific activities. In addition, Hansen is being used to track the city’s tree inventory. Each tree has a unique city asset identification number that is tracked in the system. Once work is completed on a tree by city staff or contractors, city staff enter information into Hansen that updates the tree’s size, health, and diameter at breast height (DBH). For work orders issued in Hansen for contractor services, the city’s staff take these orders to the contractors for the work to be completed. The use of a computerized maintenance management system (CMMS) is becoming a very popular tool to manage asset inventories, schedule work orders, and track activity costs. According an NRPA study, only 25% of respondents nationally reported using a CMMS system for the parks operations. However, the NRPA indicated that 75% of California municipalities that responded to the survey use a CMMS in their Parks & Recreation operations. Several comparable municipalities surveyed also reported using a CMMS system. City of Carlsbad NRPA CA NRPA National Comp. A Comp. B Comp. C Comp. D Comp. E Comp. F Does the department use a Computer-aided Maintenance Management System (CMMS)? Yes- Hansen 75% report yes 25% report yes No Yes- Comcate Yes- Quest System Not answered No No The city has clearly invested in a powerful tool that not all municipalities have elected to purchase. The city should seek to use this investment to its fullest potential. 41 Lower estimate of potential savings is calculated by adding the estimated savings using differences in Carlsbad and private sector total compensation for the landscaping, hardscape, and trails/open space/preserve, and trees lines of business. Each potential savings opportunity is discussed in the individual line of business discussions. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 69 One significant area of improvement for the use of Hansen is the consistent and complete entry of work orders in the system, and documenting work statistics once the work is completed. Several key statistics can be used by the city including quantity of work performed and hours of worked performed. These statistics have the potential to be tracked at relatively detailed levels. Based on observations of Hansen, the system has a variety of activity codes that can track specific activities as opposed to “routine maintenance.” The city can use these valuable service statistics to monitor changes in work levels, identify opportunities for improvement, and support justification for budget requests through a demonstration of resource needs. Unfortunately, the city does not appear to be using this functionality in Hansen consistently, or is using other means to track activity quantity and hours for parks maintenance activities outside the system. This gap in accurate and complete performance data leaves the city in a vulnerable position in justifying or demonstrating the work completed. These types of statistics are also essential to perform activity-based costing. Redundant Data Entry in Hansen To be sure, documenting accurate workload statistics takes time and resources to complete. Based on the staff interviews, parks maintenance staff spent a considerable amount of time entering Hansen data prior to the use of the Senior Office Specialist for data entry efforts. With this shift, parks maintenance staff are able to spend more time on performing services in the field rather than data entry. However, the current system of data entry is a duplication of effort. In many circumstances, staff are entering data on paper forms, which is then being entered into Hansen by the Senior Office Specialist. Parks maintenance staff reported using three ruggedized laptops to perform mobile activities for Hansen. If additional mobile computing devices could be purchased for more staff, staff would have an opportunity to directly enter work data in an electronic format, rather than enter data on a paper form. Many mobile computing platforms can make data entry easier than paper forms. Dropdown menus, or pre-selected options for certain work activities, permit users to quickly enter work data with a few key strokes. In addition to the ease of use with mobile computing technology, there is a potential for cost savings through the reduction in duplicative data entry. The city estimates that approximately 48% of the Senior Office Specialist’s time is spent on Hansen data entry, or approximately 1,000 hours per year. Of this time, 75% is spent on paper based work order sheets, or 750 hours per year. If parks maintenance staff could enter time directly in an electronic format, the data entry by the Senior Office Specialist could be eliminated or significantly reduced. Time Allocation of the Senior Office Specialist BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 70 Estimated reallocation: Including all personnel costs, time spent on paper work order entry is valued at approximately $20,000 per year. We estimate that an initial technology investment could be as low as $4,80042 to conduct direct entry of Hansen data in the field. The time spent on data entry would be reallocated to other pressing tasks. Redundant Data Entry: Tree Management Another consideration that the city must make is how to capture service statistics if services are outsourced to a greater extent. This is especially true for the Trees line of business as the city maintains a master tree inventory in Hansen. Technically, this is a duplication of effort as contractors also maintain tree inventories in their systems for trees they maintain. The city should examine its tree inventory process and identify ways to eliminate the dual maintenance of data. The city may be able to accomplish this by either requiring the tree vendor to make their inventory information available as part of the contractual agreement, or require the vendor to update inventory information directly into the city’s system. If the second option is selected, the city would have to provide access to the Hansen system and arrange necessary security controls. Estimated reallocation: By reducing the duplicative tree inventory data, time spent by the Senior Office Specialist on this activity could be reallocated to other work items. The value of this activity is estimated to be approximately $7,000 per year.   42 Estimate assumes that eight area lead workers would be provided with an iPad at a cost of $600 per device. Estimate does not include other potential software or technology upgrades. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 71 Custodial Services: Current State Analysis  The Custodial Services line of business is the smallest component of all the areas we examined in this analysis. The efforts in this area are focused on:  Carrillo Ranch site maintenance  Supplemental cleaning and monitoring of exterior restrooms and block houses  Recycling and trash collection from cans around the city and in the business district  Dog station maintenance and waste removal While this line of business has a small footprint, many of the activities we discuss here are highly visible to the community and thus, extremely important to the overall mission of the Department. The main difficulty with some of the activities in this line of business is that they overlap with activities performed by other city Departments, and constitute a dilution of effort and, potentially, the overall efficiency of the city in delivering these services. Description of Activities  The greatest effort in this line of business is directed to recycling and trash collection. Staff who collect trash also conduct parks maintenance activities; they do not exclusively perform trash/recycling collection. In this area, trash is collected from parks, facilities, beach areas, trails, and the downtown district. There are 271 total cans throughout the city. There are recycling cans, concrete cans, and big belly containers. Big belly containers reduce collection frequency by 80%, freeing up resources and reducing costs. Some areas require trash collection more than once per day; i.e., high traffic and tourism districts. Approximately 85% of the FTE effort in custodial services goes towards trash collection Maintenance at Carrillo Ranch is conducted primarily by the resident caretakers. The resident caretakers spend approximately 25 – 30 hours per week performing grounds maintenance, building/facility maintenance, and security oversight. In the past, the caretakers had been provided a $5,000/year stipend in addition to the rental value of the two bedroom / two bath, 1,750 square foot home (utilities included). The appraised value of lodging is reported at $22,800 annually. In 2012, upon rebidding these services, the city removed the stipend and allowed only the lodging in return for services rendered. During the three weeks per year that the resident caretakers are allowed to take a vacation, parks maintenance staff will conduct maintenance at Carrillo Ranch. Custodial staff also supplement the cleaning and monitoring of exterior restrooms and block houses in Parks & Recreation facilities. Currently, Monday through Friday, the restrooms for these facilities are maintained by a vendor who is contracted through PEM. Because these facilities are open seven days per week, custodial staff will check the facilities for cleanliness and conduct cleaning activities as needed during the times when the contract staff is not working; i.e., Saturday and Sunday. This includes refreshing supplies and dealing with vandalism. Lastly, the custodial staff will maintain the dog stations and waste removal. Dogs are not allowed at the parks, except for the single dog park that exists in the city; dogs are allowed on trails. At the trails, dog stations exist at trail heads in order to provide users with a place to get bags for waste removal and a container to dispose of it. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 72 Cost of Service  The following shows the historical costs for Custodial Services: Direct Costs FY09 Actuals FY10 Actuals FY11 Actuals Personnel $ 471,491 $ 485,462 $ 483,321 Maintenance and Operations (Direct Costs) $ 108,487 $ 112,568 $ 123,811 Capital Outlay $ 0 $ 0 $ 0 Subtotal Direct Costs $ 579,978 $ 598,031 $ 607,132 Indirect Costs FY09 Actuals FY10 Actuals FY11 Actuals Organization wide centralized services $ 78,578 $ 78,578 $ 78,578 IT Overhead $ 9,504 $ 13,283 $ 9,799 Fleet Overhead $ 65,436 $ 69,115 $ 65,049 Other Overhead $ 10,267 $ 14,895 $ 17,317 Subtotal Indirect Costs $ 163,785 $ 175,871 $ 170,743 Total Direct & Indirect Costs $ 743,763 $ 773,902 $ 777,785 Value of Volunteer Services FY09 Actuals FY10 Actuals FY11 Actuals Volunteer Services $ 0 $ 0 $ 0 Revenue FY09 Actuals FY10 Actuals FY11 Actuals Revenue (all sources) $ 1,819 $ 1,777 $ 1,796 Costs in the custodial services line of business have remained fairly stable over the last few years. Increases in personnel services are related to the salary increases in accordance with the city’s salary schedule, and not an increase in staffing. In fact, as evidenced by the chart below, effort related to custodial services has decreased. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 73 2009 2010 2011 Total Paid Effort 7.19 6.92 6.71 Full Time 4.79 4.75 4.25 Part Time 2.41 2.16 2.46 Volunteer Effort 0.00 0.00 0.00 The largest increase in costs for custodial services is seen in M&O. The increase in this area is due to the vandalism that the city experiences in the block houses and restrooms; often the city will need to replace urinals and partitions due to vandals. To minimize the costs for custodial, the city has made their facilities as low maintenance as possible; mirrors are stainless steel, toilet paper dispensers are extra large, and hand dryers are utilized in the facilities. Service Statistics  Unfortunately, as discussed in many of the different sections in this report, the city does not collect many service statistics, particularly in the custodial services area. However, the table below provides some information on the frequency of work in this area. Type of Work Frequency Service Level Collect trash from parks, facilities, beaches, trails, and downtown district (80 cans). There are 271 total cans throughout the city Collect trash daily; twice per day as needed in high traffic/tourism district 12,012 hours annually; 231 hours/week; 32.9 hours/day Ensure cleanliness of garbage cans and recycling receptacles by pressure washing all cans Clean quarterly No service levels defined. Refill dog bags and remove waste from stations 60 - 65 stations citywide: Pick up twice per week from trails Pick up from dog park daily Pick up from downtown daily Pick up from beaches daily 20 lbs. of dog waste removed on a weekly basis - Lake Calavera only. Cleaning picnic tables and trash removal as needed for events On request No service levels defined. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 74 Trash collection is distributed among all of the crews; that is, trash collection is not the sole focus of a particular employee. It is integrated with other park maintenance activities. The maintenance of the dog stations is varied in tracked information as well as who completes the work. As part of its contract for maintaining the preserves, the Center for Natural Lands Management (CNLM) will remove the dog waste from Lake Calavera and recently began collecting statistics on this. The city does not track service levels for the remaining dog stations. Lastly, staff do not collect statistics on the amount of work that they complete related to the cleaning of picnic tables and trash removal at the end of an event. While deposits are collected in order to reserve park facilities, the city does not typically require deposits for all facilities due to the discrepancy in costs. For example, the rental of a facility may be $36 and the allowable deposit $200; in practice, staff have not been collecting a deposit on a low-cost rental. Discussion of this as a future state alternative is in the Rental Services section. Benchmarks & Industry Standards   As this line of business is very limited in its coverage and functionality, there are no industry standards that exist relative to this line of business. The utilization of a resident caretaker to maintain the grounds at Carrillo Ranch is a best practice that others should consider implementing. The city receives 25 – 30 hours of work for the provision of $22,800 in property rental and utilities. Using the low end (25 hours) of the work estimate, this would equate to $17.53/hour. Using FY11 personnel and hours worked figures; the average fully loaded hourly rate for custodial staff is $35.14. Hence, the city is saving $17.61/hour. On a 25 hour work week, that is a savings of $22,893 per year. Interestingly, this is just $93 more than the in-kind property and utilities that the city provides to the resident caretaker. Current Outsourcing Activities  Given the limited nature of this line of business, the current outsourcing opportunities in this area are small. The following chart represents the contracts from FY11: Company Description FY11 Expenditures Mark & Diana Stein Carrillo Park Overseer $ 2,618 T&T Janitorial, Inc. Custodial maintenance agreement $ 15,227 Note that the expenditures for the resident caretaker agreement are for the $5,000 stipend that was under the previous agreement which expired earlier this year. In the future, no cash will be paid to the resident caretaker. The Janitorial agreement is managed through PEM. Any issues with the vendor’s performance are reported to PEM for their action. Parks & Recreation staff do not deal directly with the vendor. In the comparable survey, the municipalities were asked about the services that they outsource. Across the board, maintenance of restroom facilities is outsourced by the three responding comparables. Comparable A Comparable B Comparable F Which custodial activities are contracted? Outdoor bathroom maintenance All janitorial services for all buildings Restrooms Litter Site furniture cleaning Playground / volleyball sand raking BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 75 Custodial Services: Future State Alternatives  Area & Focus Option Opportunity Amount (Annual Unless Otherwise Noted) OE Move maintenance of exterior block houses and restrooms to PEM No tangible cost savings Operational Efficiencies  Move Maintenance of Exterior Block Houses and Restrooms to PEM Currently, PEM manages all facilities throughout the city, except for the block houses and restrooms at Parks & Recreation. Further, they are in charge of the contract with the vendor (T & T) who conducts janitorial services Monday through Friday. However, these facilities are open and maintained seven days a week. On Saturdays and Sundays, Parks & Recreation staff supplement vendor activities. Further, issues with vendor performance must be dealt with through PEM. The structure of this arrangement is not efficient and has been an issue that the city has been trying to resolve for some time now. Restrooms for all other city facilities are managed by PEM. As this is a low cost activity which already has a vendor with the city, we would recommend moving the care for these facilities to PEM. This would enhance operational efficiency of the activity. Further, we would recommend extending the contractual service time to seven days a week. This would be an increase to the cost of the contract that is operated by PEM and would not have an impact on the budget for Parks & Recreation. Managed Competition Candidates  No managed competition opportunities have been identified for custodial services. Direct Outsourcing  As previously discussed, the largest activity in this line of business is trash collection. As these activities are a portion of a greater line of work, parks maintenance, we feel that the opportunity with the greatest value to the city is rolling the trash/recycling collection services into a larger packet of outsourced parks maintenance activities. This opportunity was discussed in the general Parks Maintenance section of the report.   BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 76 Hardscape/Specialty Maintenance: Current State Analysis  Description of Activities  The Hardscape line of business encompasses an incredibly diverse range of activities that span all parks areas in the city including parks, trails, preserves, sports courts, and other areas under the Department’s oversight. Hardscape activities are carried out through a combination of dedicated staff (1 full time and 2 part time), and staff in other functional areas conducting Hardscape-related activities as part of their routine work. Specifically, these activities include, but are not limited to:  Inspection and maintenance of tot lots and playground equipment  Maintenance of sports courts and fixtures such as tennis court surfaces, nets, windscreens, basketball courts, and hoops  Some concrete repairs such as crack repair and grinding  Installation and repair of light fixtures, many replacements for fixtures on the Coastal Rail Trail  Some electrical repairs  Minor repairs to stand alone block houses in parks  Fence repair and replacement  Maintenance of park wooden bridges  Repair of water fountains and other water fixtures  Maintenance of retaining walls In general, work completed by in-house staff is supplemented by contractors when in-house staff do not have the necessary equipment or availability. Typically, these projects can be classified as larger improvement projects such as significant concrete repairs, structural replacements to block houses or major capital improvements. Staff report that approximately 80% of all concrete work is contracted. Not all capital projects are coordinated through the Parks & Recreation Department. Some larger capital improvements are coordinated through PEM. When possible and practical, city’s staff may rent equipment, such as cement mixers, to supplement in-house equipment rather than purchase capital equipment that is infrequently used. Much of the hardscape work is also reactive. Planned repairs are balanced with issues that arise on a daily basis. City staff have placed a significant focus on safety and prioritize hardscape repairs accordingly. This is especially true for playground equipment and tot lots where inspections are completed weekly and repairs made as soon as issues are detected. Cost of Service  Overall, costs for the Hardscape line of business have fluctuated significantly since FY09. This is primarily due to the nature of the line of business; many of the expenses are one-time costs that are unpredictable and dealt with on a reactive basis. This is consistent with the general trend in each of the cost categories. The table below provides an overview of the last three full fiscal years of expenditure data. While personnel costs and overhead have remained relatively consistent or decreased, M&O and capital costs have fluctuated significantly. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 77 Direct Costs FY09 Actuals FY10 Actuals FY11 Actuals Personnel $ 458,116 $ 461,191 $ 476,268 Maintenance and Operations (Direct Costs) $ 510,181 $ 523,095 $ 548,272 Capital Outlay $ 169,457 $ 32,405 $ 62,771 Subtotal Direct Costs $ 1,137,755 $ 1,016,691 $ 1,087,311 Indirect Costs FY09 Actuals FY10 Actuals FY11 Actuals Organization wide centralized services $ 212,290 $ 212,290 $ 212,290 IT Overhead $ 17,280 $ 24,151 $ 17,816 Fleet Overhead $ 104,628 $ 92,153 $ 86,732 Other Overhead $ 29,786 $ 42,110 $ 48,033 Subtotal Indirect Costs $ 363,985 $ 370,705 $ 364,872 Total Direct & Indirect Costs $ 1,501,739 $ 1,387,395 $ 1,452,184 Value of Volunteer Services FY09 Actuals FY10 Actuals FY11 Actuals Volunteer Services $ 0 $ 0 $ 0 Revenue FY09 Actuals FY10 Actuals FY11 Actuals Revenue (all sources) $ 18,823 $ 40,520 $ 19,607 Between FY10 and FY11, M&O costs increased by approximately $25,000. An examination of the expenditure data indicates that this increase can be most attributed to an increase in the Miscellaneous Professional Services object code. This increase appears to encompass several non-routine contracts that occurred in FY11, including concrete construction, tennis court resurfacing, and a major construction project. City staff also state that increases in maintenance costs are due to increasing levels of vandalism, primarily concentrated on the Coastal Rail Trail. The capital outlay between FY09 and FY11 also varied significantly. These significant changes can be traced to two object codes: “Capital Outlay <10k New” and “PW Capital Outlay.” Significant Shifts in Capital Outlay for Hardscape Line of Business 2009 2010 2011 Capital Outlay <10k New $ 37,362 $ 2,681 $ 7,140 PW Capital Outlay $ 118,988 $ 26,068 $ 55,631 In FY09, the higher than average capital costs were due to a purchase of new security cameras for the parks and a major restroom renovation. In FY10, capital expenditures included the installation of hand railings. Finally, in FY11 capital costs were primarily due to additional bathroom renovations. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 78 The city spent less on fleet costs each year since FY09. This approximate $20,000 in savings occurred from the replacement of a water truck, due to underutilization, with a water trailer. Also, the reduction in the use of larger trucks and a shift to smaller maintenance trucks contributed to the cost savings. Revenues for the Hardscape line of business were driven primarily from allocations from the median and tree maintenance assessment. Revenues from this source remained consistent across years due to limited increases in the assessment. A jump in revenue for FY10 is due to donations from the park bench memorial program. Since FY09, personnel costs have remained relatively consistent for the Hardscape line of business. Interestingly, a significant portion of hardscape activity hours comes from personnel outside of the 1 full time and 2 part time staff dedicated to the Projects and Repair Crew. Over 40 staff members in the Parks & Recreation Department have time allocated to the Hardscape line of business performing field work, contract administration, and administrative tasks. No new staff were reported to have been added to this line of business, thus the fluctuations in hours worked are due to small shifts in workload between FY 2009 and 2011. The overall increase in personnel cost during this period is most attributed to step increases in staff’s salary. 2009 2010 2011 Total Paid Effort 5.20 4.85 4.96 Full Time 4.36 4.08 4.11 Part Time 0.84 0.77 0.85 Volunteer Effort 0.00 0.00 0.00 City staff developed an estimated time allocation for sub-activities within the Hardscape line of business. Based on these estimates, staff time is distributed relatively evenly between the many activities completed as part of this line of business. Staff time is most concentrated in contract management, general park fixture maintenance, and playground surface maintenance. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 79 Estimated FY11 Hardscape Activity Time Distribution Tasks Estimated Effort in Hours/Yr % of Total Hours Hardscape contract management 1,825 18% General park fixture maintenance 1,011 10% Playground surface maintenance 926 9% Retaining walls/fencing maintenance; for parks and trails 758 7% Playground equipment maintenance and inspection (tot lots, swings, etc.) 758 7% Sports court surface maintenance 758 7% Sweeping/Washing 674 7% Block house restroom maintenance and repair 674 7% Facility equipment cleaning and inspections 674 7% Park lighting maintenance 590 6% Graffiti removal 590 6% Sports court equipment maintenance 253 2% Drinking Fountain Cleaning 253 2% General electrical work 168 2% Sidewalk maintenance and repair (interior to parks) 84 1% Park bench maintenance 84 1% Park bridge maintenance 84 1% General masonry 84 1% All Subfunction Hours and Cost 10,248 100% Currently, staff do not expend a significant amount of hours on the following activities:  Sidewalk maintenance and repair  Park bench maintenance (concrete)  General electric work These are areas where the city has contracts to supplement the work performed by in-house staff due to a lack of expertise or equipment to carry out all necessary functions. For example, large concrete repairs are performed by contractors due to a lack of specialized equipment. Service Statistics  Unfortunately, the city does not appear to be tracking a significant amount of service statistics for the Hardscape line of business. In Hansen, staff are using the following categories to record hardscape related time:  Furnishing repair BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 80  Graffiti removal  Safety repairs  Special projects  Park building repairs However, as with all other parks maintenance activities, city staff state that not all hours and activities are being recorded in Hansen, or the categories are being used inconsistently. The inconsistent use of categories can be seen especially within Hardscape as several of the above mentioned categories do not appear to have been used in FY11. Therefore, Hansen workload data may be incomplete and not considered here for analysis. Moving forward, an increased focus on consistently recording in Hansen not only staff time allocated to specific activities, but also a quantitative count of the type of activity and outcomes could help the city understand staff workload and materials costs for this large and diverse set of activities. For example, hours spent on replacing light fixtures, but also the number of light fixtures replaced. The city measures satisfaction of Hardscape as part of the Maintenance Assessment Program and Carlsbad Public Opinion Survey. In FY11, 96% of citizen survey respondents rated park maintenance as good or excellent. Also in FY11, 95% of ratings were above a 7 on a 10 point scale for the service delivery rating.43 Benchmarks & Industry Standards  The city has an incredibly diverse set of amenities that it provides to its citizens, and which are maintained through the Hardscape line of business. Some amenities counts are tracked through national surveys with the NRPA and ICMA. To supplement these national counts, we were able to obtain some amenity counts from two regional municipalities. The most common amenity counts are summarized in the table below. Amenity Type City of Carlsbad Comparable C Comparable F NRPA CA FY10 NRPA National ICMA National Over 100,000 Median44 ICMA National 25,000 to 100,000 (Median) Tennis Courts 29 22 20 17 18 45 9 Basketball Courts 20 14.5 14 23 13 38 8 Skate Park 1 Not answered Not answered 100% has amenity 58% has amenity Does Not Apply Does Not Apply Play Structures 48 Not answered Not answered Does Not Apply Does Not Apply 66 20 43 City of Carlsbad State of Effectiveness Report 44 ICMA Comparative Performance Measurement, FY10 Data Report. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 81 Amenity Type City of Carlsbad Comparable C Comparable F NRPA CA FY10 NRPA National ICMA National Over 100,000 Median44 ICMA National 25,000 to 100,000 (Median) Population 105,328 85,186 83,781 Does Not Apply Does Not Apply Does Not Apply Does Not Apply Tot Lots 14 33 41 27 12 Does Not Apply Does Not Apply Volleyball 3 Not answered Not answered 100% has amenity 72% has amenity Does Not Apply Does Not Apply In general, the city is consistent with regional comparable municipalities in providing amenities. A few exceptions are noted below.  Tot Lots: One significant outlier is the number of tot lots provided by Comparable F which greatly exceeds both the city’s count and the NRPA survey totals.  Skate Park: The NRPA California 2010 data indicates that 100% of municipalities reported having a skate park, compared to 58% nationally. Based on this data, skate parks appear to be a common amenity for California municipalities.  Play Structures: While limited regional information is available, the city appears to provide a similar number of play structures when compared to the ICMA national median value (If compared to an average of the median values for populations over 100,000 and from 25,000 to 100,000.The average of the two data points is 43).  Volleyball: Similar to skate parks, 100% of California municipalities reported having volleyball courts in the NRPA 2010 survey. Only 72% reported having the amenity nationally. This indicates that volleyball courts appear to be a very common amenity given the climate and beach proximity. Other notable amenities provided by the city that were not tracked as part of the national surveys include:  200 picnic tables  120 park benches  1,372 parking lot stalls for park areas Overall, the city’s amenities do not exceed those of other communities.   Current Outsourcing Activities  As mentioned earlier, the city supplements in-house hardscape work with contracts. In some circumstances, hardscape activities are performed by landscaping vendors who maintain certain parks. For example, Nissho of California performs some hardscape duties at the same areas that it performs landscaping activities. Other significant routine activities, such as sports light maintenance and general electrical work, are performed through the Fluoresco and Sadler Electric contracts. The table below BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 82 presents a listing of the contracts utilized by the Hardscape line of business over $1,000 in FY11. A complete listing of all contracts used across all fiscal years is in Appendix 2. Company Description FY11 Actuals Allocated to Hardscape Fluoresco Lighting & Signs Ball field lighting maintenance $ 13,009 Nissho of California, Inc Landscape maintenance work at specified street medians and parkways $ 28,572 Sadler Electric Perform routine, recurring, and usual electrical maintenance work necessary for the protection and preservation of city owned or maintained electrical systems. $ 57,196 Mark & Diana Stein Carrillo Park Overseer $ 1,309 Blair Rasmussen Construction Construction $ 31,289 Court Concepts Inc. Court surfacing & repairs $ 4,995 Dan Vaughn Construction Concrete construction $ 10,842 Ferandell Tennis Courts Court surfacing & repairs $ 10,319 Musco Sports Lighting Sports lighting programming $ 3,200 Poolmaster Ornamental fountain maintenance $ 3,505 Pro Installations Inc. Restroom floor resurfacing $ 9,950 RDO Equipment Company Equipment maintenance $ 10,595 Right Of Way Engineering Services Inc Utilities coordination/services $ 2,740 Scott Fence Fencing $ 13,660 Of these contracts, there does not appear to be significant vendor repetition for any one type of service. For example, for multiple concrete repair contracts, there are several different vendors. If this were the case, the city may be able to experience cost savings through the development of a master contract for certain services. However, based on available data, the city appears to be acquiring non-routine contracted services efficiently though the prescribed method; including minor public works contracts, letters of agreement, or standard contract agreements. Benchmarking Contracting Activities Contracting specific hardscape activities has the potential to generate cost savings because special equipment or training may be required. For many municipalities, it is not cost effective to own certain types of equipment or have full or part time staff trained to perform some activities. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 83 As part of the comparable municipality survey, municipalities were asked to identify contracted activities for parks maintenance. Hardscape related activities are identified in the table below. Also, concrete repairs appear to be a very common activity that is outsourced. Municipalities were also asked to indicate why concrete repairs were outsourced. Overall, the city is consistent with most municipalities in the types of hardscape services that are contracted. More specifically, the city’s outsourced hardscape activities are similar in scope to municipalities that perform some hardscape activities in-house. Large concrete repairs, electrical maintenance, and sports light fixtures appear to be a common outsourced activity for these municipalities. Some activities mentioned that the city’s Parks & Recreation Department does not currently outsource include sand raking and air conditioning repairs. Specifically, all surveyed municipalities reported outsourcing some level of concrete repair and most consistently indicated it was more cost effective than performing these services in-house. This information indicates that the city is already contracting most hardscape services that other municipalities contract. City of Carlsbad Comparable A Comparable B Comparable C Comparable F Outsourced Activities Large concrete repairs Electrical Sports field lighting Some irrigation All maintenance activities Electrical Plumbing AC Services General property maintenance Parks and Facilities Maintenance Raking sand Large concrete projects Light fixtures and bulb replacement All activities in small parks Why Outsource Concrete Repairs? Requires specialized equipment More cost effective More cost effective More cost effective Requires specialized equipment Insufficient in-house staff BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 84 Hardscape/Specialty Maintenance: Future State Alternatives  Area & Focus Option Opportunity Amount (Annual Unless Otherwise Noted) OE Explore opportunities for city-wide master contracts with hardscape related activities $ 13,900 OE Fully utilize vendors for specialized services No tangible cost MC Perform managed competition for Hardscape activities. $ 216,000 OE Utilize alternative materials for Carrillo Ranch parking lot TBD Operational Efficiencies  City Wide Master Contract for Hardscape Activities Within the Department, there appear to be some opportunities to develop larger, master contracts for common services like concrete repair or plumbing services. Larger contracts would allow the city to maximize its buying power by obtaining a better price for services by combining the full buying power of all city Departments into a single contract. For example, concrete repairs may be a commonly contracted activity for the Transportation, PEM, and Parks & Recreation Department. Or, to further maximize buying power, the city could consider a cooperative purchasing agreement with local municipalities to combine purchasing power into a single agreement. Estimated Savings: The city should conduct an examination of city-wide contracting practices to identify opportunities for developing master contracts across departments. Hardscape services appear to be an ideal candidate for a cross-departmental master contract. Our experience with master contracts and cooperative purchasing agreements indicates that the city could save between 5 - 15 percent on this recommendation. Below is a summary of contracts that we believe have an opportunity for city-wide master contracts. FY11 Hardscape Contracts with Potential for City-Wide Master contract Company FY11 Actuals Allocated to Hardscape Sadler Electric $ 57,196 Blair Rasmussen Construction $ 31,289 Dan Vaughn Construction $ 10,842 Pro Installations Inc. $ 9,950 RDO Equipment Company $ 10,595 Right Of Way Engineering Services, Inc $ 2,740 Scott Fence $ 13,660 Total $ 138,511 45 45 Total does not include multiple contracts under $1,000. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 85 Assuming that 10% is saved from the FY11 contract value, we estimate $13,851 savings per year. This amount has the potential to fluctuate as unexpected improvement projects may occur on an annual basis increasing the costs, as well as the potential savings, if a city-wide master contract is established. Fully Outsource Activities Completed by Both In-House Staff and Vendors Currently, city staff are performing some hardscape activities that are concurrently performed by private vendors. These activities all account for a very small portion of staff’s time and could feasibly be completed by contracts already managed by the city. Activity % Staff Time Applicable Contract Sidewalk maintenance and repair 1% Dan Vaughn Construction Park bench maintenance (concrete) 1% Dan Vaughn Construction General electrical work 2% Sadler Electric As city staff are not spending a great deal of time on these activities, but are required to maintain relevant equipment, training, or certifications, it may be an inefficient use of staff time and city resources to continue performing these tasks in-house. Rather, staff time could be devoted to the other pressing tasks. Additionally, staff time could be saved by not having to travel to various locations to perform these infrequent activities. We recommend the city explore the option to completely outsource these activities. The city should examine the capacity of current contracts to take on responsibility for these tasks and the cost savings potential. The city may also be able to gather a small one-time benefit for liquidating unnecessary equipment related to concrete or electrical repairs if these activities can be fully outsourced. Alternative Materials for Carrillo Ranch Parking Lot Based on the site visit interviews, city staff report substantial issues with maintaining the parking areas of Carrillo Ranch. The current material used is a decomposed granite (DG) surface. During heavy rains, water can shift the surface material, causing erosion. Degradation of the surface can create inconveniences for park guests, as parking areas may need to be closed off for renovation. The city must also expend resources to maintain this surface after each major rain event to maintain the integrity and appearance of the parking lot surface. We recommend that the city consider the use of alternative parking lot materials to reduce maintenance costs. Vendors currently offer a wide variety of material types for parking lots that have the potential to dramatically reduce maintenance costs, keep a natural appearance for the historic park, and be semi-permeable to meet environmental conservation objectives. Options for the city to consider include a stabilized decomposed granite which costs approximately $6 per square foot for installation. This surface has some stability advantages over the standard decomposed granite surface and may require occasional filling. Another option is a stamped concrete surface which costs approximately $9 per square foot for installation.46 This surface is significantly more stable than decomposed granite and will not require maintenance, other than occasional repairs, for many years. Stamped concrete surfaces come in a variety of colors and patterns such as brick, cobblestone, or crushed rock, which can maintain a natural appearance and is semi-permeable when compared to a solid concrete or asphalt surface. 46 Cost estimate provided by Echo Pacific Construction on 5/25/12. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 86 Direct Outsourcing  We have not identified any opportunities for direct outsourcing of Hardscape activities. Managed Competition Candidates  The comparable municipality survey data indicates that these municipalities are either outsourcing all hardscape activities as part of a complete parks maintenance outsourcing strategy, or outsourcing a few hardscaping activities due to lower cost or lack of equipment to execute the task. For municipalities outsourcing some activities, the remainder of the workload is completed through in-house staff. Also, during the site visit interviews, hardscape staff mentioned that there is a “continuous to-do list for hardscape activities” and staff work on these items as they are able. This is common for hardscape activities where a portion of the work is routine (such as playground inspections) and other activities are reactionary (such as water fountain repair). Currently, the city appears to be in a state where the reactionary activities are at a high level and there is not sufficient in-house staff to complete outstanding to-do items. One significant advantage of outsourcing more or all hardscape activities is the potential for a flexible workforce size. The city could establish contract terms where vendors would increase the amount of labor as needed to meet requests in a timely manner. As reactive work needs increase, vendor hours can be increased to quickly meet the unexpected demand and complete the to-do list of tasks more quickly than in-house staff. Another advantage of outsourcing is the reduced future liability of benefits such as pensions and health care costs. As hardscape activities amount for the majority of effort, this has the potential to be significant savings if outsourced. However, due to the fact that there appear to be opportunities for city staff to generate cost savings through increases to staff productivity and availability, we recommend that the Hardscape line of business be considered for managed competition. As mentioned in the availability section of this report, there are numerous ways staff can increase productivity and enhance availability ratios. Currently, the Hardscape line of business has an availability of 87%. This indicates that, due to use of benefit leave time, staff are being paid for hours that they are not working by a significant degree. This difference in availability between staff that spend time on hardscape activities and a national benchmark is approximately 5.6%. Hardscape FY10 NAICS: All Sectors Difference 87% 92.60% 5.60% Through managed competition, the city staff could have the opportunity to become more competitive with private vendors. It is anticipated that CCEA would be able to effect cost reductions in this area through a management of the amount of leave time that staff take (increase the availability of staff), or a reduction in the amount of time or size of crews needed to complete standard work items. Estimated Savings: In order to begin establishing a benchmark for savings, we look to the salary gap between public and private workers in this area. We believe that the Maintenance Worker II position represents a balanced salary of staff that perform hardscape activities. The average salary for these employees at the city is approximately $55,288. Industry data suggests that both public and private sector BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 87 employees with similar skills and experience as a General Maintenance Worker are paid less than city staff. Private47 Public City of Carlsbad Salary % Difference Salary % Difference Salary for General Maintenance Worker $ 55,288 $ 44,48248 22% $44,45349 22% Estimated Total Compensation for General Maintenance Worker $ 93,843 $ 59,15250 45% $74,83751 23% Based on this information, the difference between the city’s salaries and those of the private sector averages is approximately 45%. Benefits for city staff include pension (PERS) costs. If we use this gap as a starting point for targeting savings (45% - the difference in benefit rates), the target would be $215,985 per year. Because this gap relatively low, we recommend that the city consider working with CCEA to determine whether or not CCEA would be amenable to managed competition. The options for bridging the $216,000 gap include: > Increase availability of staff, thereby reducing replacement costs > Consider whether or not reduced crew sizes are an option > Consider whether or not there are other bargaining concessions that can be made to reduce the overall cost of service   47 Public and private salary estimates based on ERI data and estimates from Salary.com. Base salaries were calculated using a general maintenance worker position with 10 years of experience in the Carlsbad region. Total compensation is calculated from Bureau of Labor Statistics March 2012 Employer Costs for Employee Compensation report. National data indicates that for the “service” occupation set, salary is 75.2% of total compensation for private sector, and 59.4% for the public sector. 48 Salary for private sector general maintenance worker based on ERI April 1, 2012 dataset (recreation entities subset). Salary is based on a general maintenance worker with 10 years experience. 49 Salary for public sector general maintenance worker based on ERI April 1, 2012 dataset (government support services subset). Salary is based on a general maintenance worker with 10 years experience. 50 Based on national Bureau of Labor Statistics March 2012 Employer Costs for Employee Compensation report, salary for a private sector worker in the “service” occupation is 75.2% of total compensation. Total compensation estimate for a private sector general maintenance worker was calculated as follows: ($44,482/0.752). 51 Based on national Bureau of Labor Statistics March 2012 Employer Costs for Employee Compensation report, salary for a public sector worker in the “service” occupation is 59.4% of total compensation. Total compensation estimate for a public sector general maintenance worker was calculated as follows: ($44,453/0.594). BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 88 Landscape Maintenance: Current State Analysis  Description of Activities  Landscaping activities comprise the largest number of staff and highest total expenditures for parks maintenance related activities. In FY11, landscaping activities covered approximately 475 acres of developed parks, undeveloped parks, and medians. Currently, landscaping activities are completed through a combination of in-house and contracted work. The city has adopted a strategy to cover larger parks, more frequently visited areas, and high profile downtown areas, using primarily in-house staff Landscaping work consists of a wide variety of activities ranging from mowing, fertilization, weeding, pest control, and irrigation maintenance. The frequency and level of service can vary greatly, depending on the type of surface that is maintained. For example, on active maintenance fields (i.e., soccer field), which include natural and synthetic sports fields, certain maintenance activities must be performed more frequently than on a passive surface (i.e., open park field) such as mowing and irrigation. Irrigation and stormwater pollution prevention is one of the landscape maintenance activities that has become increasingly more important and costly. Approximately $300,000 to $400,000 dollars are spent each year on water for irrigation purposes across the city. In response to increasing costs and government regulation, the city has instituted strict water conservation guidelines and improved irrigation systems to reduce water waste. For example, the installation of the Calsense irrigation control has reported to save a significant amount of water by using advanced methods of adjusting watering levels based on weather. Stormwater pollution prevention is also a very important activity for the city. Most Department staff undergo training regarding stormwater pollution prevention and must incorporate conservation practices in their daily work. Close coordination is also maintained with the San Diego Regional Water Quality Control Board to monitor runoff and mitigate issues as soon as they are detected. The city has employed Best Management Practices (BMPs) based on industry standards to meet the challenge of preventing water pollution. Overall, the city has taken large measures for water conservation activities and has incorporated best practices in their daily work. Currently, the city has approximately 109 acres of undeveloped parkland. These areas require significantly less work than developed park areas and medians. Activities primarily include infrequent mowing, fire fuel reduction, and some weed abatement. Most activities for undeveloped parkland are executed through a contract maintained through the Fire Prevention Office which provides mowing and fire fuel reduction services across the city, even for areas not under the purview of the Department. Beach Areas The city performs landscaping activities for some beach areas. Some of these beach accesses are under control of the city. For example, the city has a beach access leased from the State of California with five stairways on the north side of the city. The city has also undertaken landscaping activities that it is not officially accountable for, but to maintain the overall beauty and appearance of the city’s landscaping. For example, some beach access areas or areas adjacent to the beaches that are under the control of the State occasionally receive a small level of landscaping from the city. Medians In addition to parkland, the Department provides landscaping services for approximately 65 acres of street medians. Landscaping activities are very similar to those in developed park areas: shrub maintenance, irrigation, mulching, mowing, and other activities. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 89 Shifts in Work Strategy In FY12, the city began a trial of a “heightened convergence strategy” where Parks & Recreation staff are pulled away from their primary “crew” assignments and “converge” on a single park area. In theory, this strategy will result in a more efficient and thorough completion of routine park maintenance. As a greater number of staff are located on a park site, certain duties that may be normally overlooked by a smaller number of regularly assigned staff will be accounted for. City staff report that this strategy appears to be working, based on early estimates. Time savings were stated to be approximately ten hours a week or 520 hours a year. Staff also admitted that additional studies must be conducted to provide a solid recommendation on the strategy’s effectiveness. We recommend that the city continue to monitor this strategy closely and document the necessary data points to create an accurate comparison of the status quo and the new strategy. The city should be certain to collect time estimates to complete work, isolate landscaping maintenance labor costs, and identify savings from the added preventative maintenance benefits of the strategy. Despite the limited data demonstrating cost savings, the city does not suffer from a common problem we have encountered in other municipalities-excessive time spent to/from worksites. A 2010 audit of North Las Vegas demonstrated that maintenance workers spent an average of 2.5 hours per day driving, as opposed to working inside the parks.52 While this was not reported as a concern prior to implementation of the heightened convergence strategy, the strategy has been reported to improve the efficiency in which staff are strategically deployed. The city, in this respect, has been able to avoid this common operational inefficiency. In addition, Parks & Recreation management have instilled an ethic of continuous “enhancement” or “refurbishment.” Staff are asked to identify ways to improve the condition of parks, rather than just performing assigned duties. Cost of Service  Landscaping is the largest line of business expenditure for the Department, occupying approximately 25 percent of all expenditures in FY11. Since FY09, the city appears to have maintained relatively stable costs, despite significant increases in water and fuel costs. The city has been able to focus on water cost savings through increased water conservation techniques, such as the use of advanced irrigation systems. Direct Costs FY09 Actuals FY10 Actuals FY11 Actuals Personnel $1,706,489 $1,736,263 $1,696,811 Maintenance and Operations (Direct Costs) $1,058,336 $1,139,726 $1,250,207 Capital Outlay $1,723 $309 $641 Subtotal Direct Costs $2,766,548 $2,876,298 $2,947,659 52 City Auditor’s Report, City of North Las Vegas: Audit of Parks Maintenance, December 22, 2010. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 90 Indirect Costs FY09 Actuals FY10 Actuals FY11 Actuals Organization wide centralized services $301,012 $301,012 $301,012 IT Overhead $27,764 $37,953 $31,425 Fleet Overhead $249,626 $262,948 $250,577 Other Overhead $62,742 $75,233 $76,900 Subtotal Indirect Costs $641,144 $677,145 $659,914 Total Direct & Indirect Costs $3,407,692 $3,553,443 $3,607,573 Value of Volunteer Services FY09 Actuals FY10 Actuals FY11 Actuals Volunteer Services $0 $0 $0 Revenue FY09 Actuals FY10 Actuals ** FY11 Actuals Revenue (all sources) $0 $57,198 $0 Between FY09 and FY11, the city experienced steady growth in M&O costs, with the largest increase occurring between FY10 and FY11. These costs increased for a few primary reasons. First, expenditure data indicates over a $100,000 growth of landscaping contracts between FY10 and FY11. Second, staff report a significant increase in water costs during this period. According to expenditure data, water expenditures increased by approximately $40,000 between FY10 and FY11.53 Finally, steady increases in commodities, supplies, and fuel have all contributed to the growth of M&O expenses for landscaping activities. The city realized cost savings for fleet vehicles by shifting to a smaller truck as opposed to a large flatbed truck in FY11, resulting in an approximate $12,000 savings. Similar cost savings were experienced in other parks maintenance line of business for switching to smaller fleet vehicles. Personnel costs experienced a slight increase between FY09 and FY10 due to salary increases of existing staff. Shifts between FY10 and FY11 can be explained through changes in staffing levels. 53 Part of total ($57,198) is based on organization key 1615024 Landscaping District Medians and 14610 Parks Maintenance, object code 7753 Water. The remainder is revenue from the median and trees maintenance district. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 91 2009 2010 2011 Total Paid Effort 21.78 21.28 20.64 Full Time 15.75 15.78 14.45 Part Time 6.02 5.51 6.19 Volunteer Effort 0.00 0.00 0.00 From FY10 to FY11, several full time staff members resigned or were terminated, and no new full time staff were hired. The city backfilled this loss in full time staff work hours through an increase in part time staff. This can be seen with an increase in part time paid effort between FY10 and FY11. The net result in these personnel shifts was an approximate $39,500 savings between FY10 and FY11. Approximately $300,000 in revenue from the Median and Trees maintenance districts were allocated to the Landscaping line of business in FY11. These revenues remained relatively consistent from FY09 to FY11 due to limited increases in the assessment. As mentioned, activities within the Landscape line of business are very diverse. However, an estimate of staff’s time spent on specific activities reveals that workload is concentrated in approximately three activities: irrigation system maintenance, natural turf maintenance, and specialty turf maintenance. Not surprisingly, there is a correlation between expenditures and staff hours for active and passive turf maintenance as these activities are equipment, material, and labor intensive. Tasks Estimated Effort in Hours/Year % of Total Hours Specialty natural turf maintenance (active) 6,992 16% Irrigation System Maintenance 5,438 13% Natural turf maintenance (passive) 4,661 11% Contract Management 3,598 8% Planters and Ground Cover Maintenance 3,496 8% Tree maintenance (for work up to 15 ft.) 3,496 8% Shrub Maintenance 3,107 7% Stormwater pollution prevention 2,719 6% BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 92 Tasks Estimated Effort in Hours/Year % of Total Hours Synthetic turf maintenance 2,331 5% Irrigation of Vegetation 1,165 3% Mulching 1,165 3% Irrigation System Testing 777 2% Shrub replacement 777 2% Disease and pest control 777 2% Undeveloped parkland maintenance 777 2% Erosion prevention 777 2% Fire mitigation/brush removal 388 1% All Subfunction Hours 42,441 100%54 Also of note is the amount of staff time spent on contract management. Approximately 54% of the city’s Landscaped acreage is maintained through contracts, but requires only 8% of Landscaping staff hours to manage the contracts. Maintenance Cost Differences in Acreage Types As previously mentioned, the cost to maintain different landscape types varies greatly. Undeveloped parkland maintenance accounts for approximately 1 percent of overall Landscaping maintenance costs in comparison to developed parkland, which in total accounts for 80% of overall Landscaping costs. Cost for Landscaping Maintenance by Surface Type55 Field Type Costs (Direct and Indirect Costs) FY11 Actuals % of Total Landscaping Costs Developed Parkland Developed Parkland (Excluding Athletic Fields) $ 1,948,089 54% Sports Fields (Grass) $ 865,818 24% Sports Fields (Synthetic) $ 72,151 2% Undeveloped Undeveloped Parkland $ 36,076 1% Medians Medians $ 685,493 19% Total $ 3,607,573 Transfer of Facilities Expenditures In FY12, PEM transferred approximately $76,000 of funds to cover the costs of facility acreage managed by the Parks & Recreation Department. The activities were conducted or overseen by Parks & Recreation staff through contract management; however, the expenditures came from the PEM budget and have not appeared in the Parks & Recreation expenditure data. With the transfer of budgetary responsibility for these costs, city staff expect an increase in M&O costs in FY12. Consideration of the Median Assessment District 54 Total is rounded to 100%. 55 Cost breakdown is based on estimates provided by Carlsbad Management Analyst. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 93 A significant concern for the city is the underfunded status of the Lighting and Landscape District 1. The city has aspirations to upgrade center trees on College Boulevard and El Camino Real. Also, there are plans to replace and retrofit irrigation planters in median areas. City staff indicated that the City Council considered these proposals and elected to forgo these improvements due to the lack of funding in the Lighting and Landscape District 1. To compensate for routine maintenance costs, the city has transferred funds from the General Fund to cover the costs not met by the Median Assessment District. This transfer has ranged between $321,000 and $166,000 since 2009. Lighting and Landscape District 1 Transfer from General Fund To overcome this gap, the city must either raise revenues through the assessment district or identify cost savings measures as the assessment district should be self-funded. The Department will be unable to meet its improvement goals if funds continue to be taken from the general fund. Service Statistics  During FY11, the city’s staff provided Landscape services for approximately 476 acres. Unfortunately, as with many parks maintenance activities, the city does not record detailed service statistics for Landscaping activities. While staff do record time in Hansen, most hours are recorded in the “Routine Maintenance” category and do not provide much insight into the various types of work. Unfortunately, a specific understanding of what activities were conducted using this information cannot be determined. As part of an overall parks maintenance evaluation, the city also measures satisfaction of Landscape services as part of the Maintenance Assessment Program and Carlsbad Public Opinion Survey. In FY11, 96% of citizen survey respondents rated park maintenance as good or excellent. Also in FY11, 95% of ratings were above a 7 on a 10 point scale for the service delivery rating.56 Benchmarks & Industry Standards  Across US municipalities, most provide some level of Landscaping services. The scope and cost of these services can vary greatly though, depending on the amount of landscaping that must be maintained. 56 City of Carlsbad State of Effectiveness Report BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 94 Unfortunately, national data does not appear to be available that identifies the amount of landscaping area that must be maintained. However, the amount of park acreage a municipality has is more frequently mentioned. Using data from two national surveys from the ICMA and NRPA, the city is slightly higher regarding the percentage of developed parkland acreage managed. This indicates that the city is mostly consistent with balancing the development of park acreage for the use of its citizens, but is also maintaining an inventory to be developed when funds become available. A comparison of total park acreage and park sites is likely unreliable due to the wide variety and size of municipalities that participated in the survey. Carlsbad ICMA National Over 100,000 (Median) ICMA National 25,000 to 100,000 (Median) NRPA National (Median) Total Park Sites 21 N/A N/A 20 Total Park Acreage (Developed and Undeveloped) 410.7 3,469.1 728.4 494 Developed Parkland Acreage % 74% 71% 68% 70% An examination of regional peer municipalities provides a more accurate comparison of available park acreage. Compared to its regional peers, the city has a lower acreage per 10,000 population. Limited data is available to establish a national baseline. However, as a reference, major metropolitan areas outside the region all have more park acreage per 10,000 population than the city (Los Angeles 62.2, San Francisco 66.0, Phoenix 273.)57 Also, the city has fewer park sites than most of its regional peers. This is because the city’s parks are typically larger than other municipalities. The city focuses on maintaining larger parks as opposed to more numerous smaller “pocket parks.” It is important to note that available acreage may be due to geography or topography, and is not necessarily a choice of the municipality. However, total acreage available does affect a municipality’s total landscaping cost in absolute terms. For this reason, we calculate a cost per acreage to gauge how efficiently a municipality maintains the acreage. Please note, state owned and managed beaches are not captured in the Carlsbad acreage count. This calculation will be discussed in the next section of the report. Compared to its regional peers, the city has a higher total number of baseball/softball fields, but a lower number of soccer fields, on average. The prevalence of synthetic fields is slightly lower, but comparable to the one other municipality that indicated having synthetic fields. The city is one of two municipalities that reported having a dog park available to citizens. 57 Per Square Mile Website. Accessed May 21, 2012. http://persquaremile.com/2011/01/27/parkland-per-person-in-the-united- states/ BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 95 City of Carlsbad Comp. A Comp. B Comp. C Comp. E Comp. F Total Park Sites 21 18 37 56 21 37 Total Park Acreage (Developed and Undeveloped) 410.7 335 193 372 176.6 364 Acres of Parkland per 10,000 Population 39.0 56.3 30.6 43.7 27.8 43.4 Developed Park Acreage 302 276 193 276 176.6 255 Undeveloped Acreage 108.7 59 0 96 0 109 City of Carlsbad Comp. A Comp. B Comp. C Comp. E Comp. F Park Hardscape % (of Developed Park Acreage) 9% 19%58 12% 19% 59 29% 25% Developed Parkland Acreage % 74% 82% 100% 74% 100% 70% Baseball/Softball Fields 13 8 24 (4 synthetic)18 14 19 Soccer Fields 2 (synthetic) 1 12 (5 synthetic)20 12 2 (synthetic) Football Fields 0 0 0 1 2 0 Multiuse field 3 (synthetic); 13 natural grass 2000 18 Dog Parks 1 0 0 0 0 4 Contracted Sports Fields % 0% 100% 100% 74% 100% 0% Overall, the city is providing a relatively average level of sport field amenities when compared to regional peers. The outsourcing of sports field maintenance corresponds to a municipality’s strategy in outsourcing landscaping activities. For municipalities that outsource most landscaping activities, sports fields are also maintained through contracts. Here, the city lags far behind 4 of the 5 comparable municipalities who outsource between 74 – 100 percent of the maintenance of these fields. Benchmarking Costs of Landscaping In order to gauge the relative cost efficiency in which municipalities are conducting landscaping activities, we asked regional municipalities to indicate the direct costs for landscaping activities in addition to the acreage maintained. The city is the second lowest cost per acre maintained when compared to its regional peers, at a rate of $6,572 per acre. The cost per acre between the municipalities varies greatly and is as high as $13,204 per acre. Several factors may affect this calculation and are discussed below. 58 Percentage of park area as hardscape was estimated using an average of other municipalities (19%) for Comparables A and C. 59 Ibid. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 96 City of Carlsbad Comp. A Comp. B Comp. C Comp. E Comp. F Total Landscaping Acreage Reported (Park, Median) 475.7 335 228 561 241 424 Park Acreage 410.7 335 193 372 176.6 364 Medians (Acres) 65 0 35 189 64 60 Contracted Landscaping Acreage % 54% 100% 100% 83% 100% 42% Total Landscaped Acreage Not Hardscape 448.52 28360 205 50961 189 360 Landscaping Direct Costs (Includes Developed Parkland, Undeveloped Parkland, Sports Fields, and Medians) $ 2,947,659 $ 1,547,73362 $ 2,066,168 $ 5,699,685 $ 1,960,652 $ 4,756,80263 Landscaping Cost Per Acre $ 6,572 $ 5,464 $ 10,104 $ 11,192 $ 10,353 $ 13,204 Method of Deploying In-house Resources FY11: Geographic Ownership Current: Group Style (Convergence) Geographic ownership No in-house resources for landscape maintenance Not answered Not answered Group Style (Convergence) Compared to its regional peers, the city appears to be providing landscaping services at a relatively low cost. This is impressive, considering that Carlsbad is in a high tourism area and may elect to spend more on landscaping services to maintain a higher overall appearance. Current Outsourcing Activities  The composition of the city’s landscaping contracts in FY11 centered on the Nissho of California contract, which comprised approximately 79% of contract expenditures that year. Another large landscaping contract with Westturf Landscape accounted for $37,000 in costs. Several other small one-time contracts were used for small services such as equipment maintenance, pesticide application, and utility services. 60 Hardscape acreage was not provided by the municipality. We estimated 19% hardscape acreage based on the average of other municipalities. 61 Hardscape acreage was not provided by the municipality. We estimated 19% hardscape acreage based on the average of other municipalities. 62 Landscaping costs were calculated by allocating 90% of stated personnel costs to stated operations and contract costs for landscaping. 63 Landscaping costs reflect FY 2012 budget total for landscaping. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 97 The chart below provides an overview of the FY11 contract expenditures over $1,000. Company Description FY11 Actuals Allocated to Hardscape Agricultural Pest Control, Inc. Agricultural pest control $ 10,316 Nissho of California, Inc Landscape maintenance work at specified street medians and parkways $ 242,860 West Coast Arborist, Inc. Tree trimming maintenance services $ 2,627 Westturf Landscape Maintenance / Sergio Graham Landscape maintenance work at specified parks, facilities, and trails areas $ 37,214 Harris & Associates Assessment District Engineering $ 1,564 Lawnmowers Plus Equipment maintenance $ 5,131 Plant-Tek Inc Pesticide application $ 4,191 Superior Onsite Service Inc Equipment maintenance $ 2,367 Underground Service Alert Utilities coordination/services $ 2,640 The city has clearly streamlined its use of landscaping vendors; a small, select group of vendors are selected to provide a large amount of services. This has likely resulted in cost savings by “bundling” a large amount of landscaping services in a single contract. Having a small number of contracts for a service may also improve efficiency in coordination. Less time is spent by city staff managing multiple vendors in multiple areas.   BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 98 Landscape Maintenance: Future State Alternatives  Area & Focus Option Opportunity Amount (Annual Unless Otherwise Noted) OE Expand the use of synthetic turf to enhance user’s experience and achieve potential cost savings $ 71,300 OE Implement cost containment on fuel Deferred to PEM DO Outsource landscaping activities $ 925,700 DO Outsource pest control activities that are currently conducted in-house and develop master contract for pest control activities $ 14,400 to $17,900 Operational Efficiencies  Use of Synthetic Turf The use of synthetic turf in arid areas such as the city has become a very popular option for municipalities. Synthetic turf has several benefits for municipalities, including cost savings. Cost savings are typically generated through lower maintenance costs and reduced water usage. With the removal of mowing, seeding, irrigation, weeding, pest control, and other activities needed for natural turf, and replacing activities with less frequent sweeping, cleaning, and repairs, municipalities have the potential for significant savings through the use of synthetic turf. City of Carlsbad Comparable A Comparable B Comparable E Comparable F Considering expansion of synthetic turf? Reason for consideration Yes, Cost savings, appearance, and wear- ability Yes, longer play period, wear and tear. No, Already have 5 synthetic fields Yes, Demand from citizens. Yes, Wear and tear, playability in wet weather Three comparable municipalities stated that they were interested in the expanded use of synthetic turf. Only two municipalities reported currently having synthetic turf fields (Comparables B and F). One municipality stated that they were not interested in the expanded use of turf because they “already had five synthetic fields.” Clearly, the use of synthetic turf is a strong trend for the city’s region. A key benefit to the use of synthetic turf is the “wear-ability” of the surface. Where natural turf athletic fields can become degraded with frequent use, synthetic fields are able to hold up with more frequent use. It is important to note that, while synthetic turf provides many benefits and cost savings, there is a significant upfront cost. Estimates from two national vendors ranged between $4.00 and $7.50 per square foot for an athletic field quality turf with an eight year warranty.64 For a high school soccer field, this could cost between $344,000 and $645,000 for installation.65 64 Average calculated from estimates provided by estimates from Turf Solutions and Artificial Turf Supply 65 Calculation based on 86,000 square foot area. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 99 Estimated Savings: Based on an analysis conducted by Comparable B, the potential for cost savings from maintenance costs alone by converting from a natural turf field to a synthetic field would result in cost savings due to maintenance costs alone. Cost Benefit of Using Synthetic Turf66 Natural Turf Synthetic turf Maintenance and Installation Activities  Annual soil prep and sod replacement  Weekly mowing  Weed control  Interseeding, dethatching, aeration, top dressing, vercutting  Irrigation system maintenance  Trash and debris removal, daily inspection  Pest control  Damage and repair work  Irrigation water  Annual maintenance, sweeping, cleaning, antimicrobial, litter removal  Turf repair and rubber infill  Field installation cost ($369,744 spread over 7 years) Annual Maintenance Cost $ 83,266 $ 78,476 Cost per sq ft $ 1.06 $ 1.00 Potential Annual Cost to Maintain 4 Carlsbad Multipurpose Fields67 $ 632,323 $ 596,061 Based on the Comparable B study, the estimated maintenance cost savings per square foot is about $0.06. This savings includes the installation cost of a 78,538 square foot athletic field for $369,744, or $4.70 a square foot. This cost is reasonable based on the cost range that was provided by two national turf vendors. The costs are assumed to be spread over the course of seven years. It is important to note that if installation costs were substantially higher for the city, the estimated cost savings may not be achieved. Further, we assume that the city is able to use existing synthetic turf capital equipment to achieve comparable maintenance costs. During the site visit interviews, the city expressed interest in converting four existing natural grass multiuse fields to synthetic turf. Assuming Carlsbad is able to achieve the same cost savings as expressed in the Municipality B report, the city would save $36,263 per year by converting these four multiuse fields. In addition to the annual maintenance costs savings, the city estimated that an additional $35,000 to $40,000 could be generated in additional revenue. This additional revenue would come from expanded leagues, tournaments, and classes and are possible because of the increased “usability” of a synthetic field (no need to restrict field usage due to substantial maintenance such as turf restoration). 66 Cost benefit analysis based on study conducted by Comparable B. 67 Estimated maintenance cost for Carlsbad calculated using square foot cost savings from Comparable B study and multiplying by 149,133 (average size of multiuse field) for 4 fields. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 100 Combined, the lower maintenance costs and additional revenue could save the city $71,263 per year from the conversion of four multiuse fields. While the upfront cost of a synthetic field turf is high, the increased usability, lower maintenance costs, and potential for additional revenue can result in cost savings for the city. Fuel Cost Savings A large portion of costs related to landscaping are fuel costs. This includes the cost of fuel to transport equipment to and from park locations, as well as operating equipment at the park sites. As fuel costs continue to fluctuate, the city may be able to exercise cost containment strategies. Several strategies have been employed by other municipalities, such as reducing the number of take-home vehicles, greening of vehicles, use of GPS technology to identify more efficient routes, and regional cooperative fuel purchases.68 We plan to address this important cost savings measure during the analysis of the city’s Fleet and PEM functions. Managed Competition Candidates  There are no managed competition candidates for Landscaping. Direct Outsourcing  Landscaping In the southern California region, there is a movement towards outsourcing landscaping activities. Municipalities are making this move for cost savings reasons. Based on industry costs for landscaping activities, there appears to be a strong opportunity to directly outsource these activities. We recommend direct outsourcing and not managed competition for the following reasons:  There is a large gap between salary and benefit rates between the city and industry benchmarks for landscaping activities.  There is a gap in availability for landscaping staff when compared to industry standards. This indicates that staff are being paid for a significant number of hours that are not productive hours in the field. Landscape FY10 NAICS: All Sectors Difference 89.3% 92.60% 3.3% Estimated savings: An examination of industry data indicates that both private and public sector “landscaping maintenance” employees in the region are paid less than the city’s employees. The average salary for a Maintenance II worker is approximately $45,243. With benefits, the total compensation for a Maintenance II worker is $75,796. Benefits include city staff pension (PERS) costs. When compared to both the private and public sector workers, the difference in salaries is 55% and 32%, respectively, for total compensation. Privatizing these services could save the city approximately $925,732. 68 Cost-Saving and Cost Containment Strategies for New York State’s Local Government. Office of the New York State Comptroller. June 2009. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 101 Private69 Public City of Carlsbad Salary % Difference Salary % Difference Salary for Maintenance Worker II/Senior $ 45,243 $ 32,56770 33% $ 32,556 71 33% Total Compensation for Maintenance Worker II/Senior $ 75,796 $ 43,30772 55% $ 54,80773 32% Pest Control Pest control services appear to be a specific outsourcing opportunity for reasons other than just cost savings. During the site visit interviews, staff expressed several concerns over the in-house pest control activities. The following provides a highlight of the major concerns identified:  Storage of dangerous chemicals  Liability for stormwater run off  Extensive and costly training for in-house staff Fully converting pest control to a contracted activity would finalize a trend that has been occurring for several years. Previously, the Parks & Recreation Department had over 20 employees certified as applicators; currently, there are only five certified applicators. Of the surveyed municipalities, most were moving towards a fully outsourced pest control model. The following provides an overview of the survey respondents: Comparable A Comparable B Comparable C Comparable F Reasons for outsourcing pest control More cost effective More cost effective N/A: Pest control performed by both in-house and contractors Requires special licenses or certifications Of the four municipalities that responded to the question on pest control, three used a fully outsourced model and one used a combination of in-house and contract labor. Both cost effectiveness and the desire to avoid needed special licenses and certifications are consistent with the city’s considerations for outsourcing pest control. 69 Public and private salary estimates based on ERI data and estimates from Salary.com. Base salaries were calculated by averaging the ERI salaries of a Groundskeeper and Gardener position with 10 years of experience. Total compensation is calculated from Bureau of Labor Statistics March 2012 Employer Costs for Employee Compensation report. National data indicates that for the “service” occupation set, salary is 75.2% of total compensation for private sector, and 59.4% for the public sector. 70 Salary for private sector maintenance worker II based on ERI April 1, 2012 dataset (recreation entities subset). Salary was estimated by averaging the salary of a gardener ($30,802) and groundskeeper ($34,331), both with 10 years experience. 71 Salary for public sector maintenance worker II based on ERI April 1, 2012 dataset (government support services subset). Salary was estimated by averaging the salary of a gardener ($30,794) and groundskeeper ($34,317), both with 10 years experience. 72 Based on national Bureau of Labor Statistics March 2012 Employer Costs for Employee Compensation report, salary for a private sector worker in the “service” occupation is 75.2% of total compensation. Total compensation estimate for a private sector maintenance worker II was calculated as follows: ($32,567/0.752). 73 Based on national Bureau of Labor Statistics March 2012 Employer Costs for Employee Compensation report, salary for a public sector worker in the “service” occupation is 59.4% of total compensation. Total compensation estimate for a public sector maintenance worker II was calculated as follows: ($32,556/0.594). BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 102 Unfortunately, pest control vendors did not respond directly to our question about pest control costs. In order to estimate the potential cost of a fully outsourced pest control model, we believe that doubling the size of the current contract total would be more than sufficient to cover all current in-house and contract pest control activities. In addition, we believe that no more than 0.05 FTE would be required to manage the pest control contract. Cost Estimate for Fully Outsourced Pest Control Model Direct Costs Vendor Fees $ 34,896 Equipment & Supplies Included Subtotal Direct Costs $ 34,896 Indirect Costs Ongoing contract management tasks (city staff time and resources) $ 4,712 Other Oversight Tasks Not applicable Qualitative/Soft Costs Undetermined Subtotal Indirect Costs $ 4,712 Total Direct & Indirect Costs – Vendor Option $ 39,608 Based upon fully loaded staff time and other direct costs (contractor, supplies, etc.), we estimate the current cost of pest control at $54,057.74 Cost Comparison Current Internal Cost $ 54,057 Fully Outsourced Option $ 39,608 Potential Savings $ 14,449 The resulting potential savings is $14,449 a year with a fully outsourced pest control model. The city may also consider developing a city-wide pest control contract with other departments to achieve additional cost savings. Assuming that the city could save an additional 10% through the development of a master contract with PEM for pest control, the savings could increase to approximately $17,900.75 Note that the savings identified here would not include the savings of the reduced staff from PEM, if the city fully outsourced all pest control activities.   74 Fully loaded staff estimate is based on an approximate Maintenance Worker II personnel costs of $94,000 per year with an hourly rate of $47.11. Currently, an estimated 777 hours are spent on pest control activities. 75 Development of master contracts save 5-15% on average based on our experience. An additional 10% savings is added to the estimated contract cost of $34,896, bringing the estimated cost to $31,406. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 103 Trails/Open Space/Preserve Maintenance: Current State Analysis  Description of Activities  The trails/open space/preserve management line of business consists of two diverse activities: maintenance of the 38 miles of city managed trails and management of 688 acres of open space and preserve. For trails, work is primarily completed by in-house staff and through the coordination of approximately 500 annual volunteers. These maintenance activities occur on a year-round basis and are completed to enhance users’ experience and maintain a safe, obstruction free surface. Specific activities range from weeding, removal of fallen trees, pavement sweeping, repair of special structures like water bars, proactively engaging the public to notify them of trail closures, and working with home owners associations for new trail development. As mentioned, a significant amount of trail maintenance is completed through the city’s volunteer program. The activities are coordinated through the city’s central volunteer management program. The city also employs the use of a citywide Trails Community Volunteer Leader and Trail Captains. The roles and responsibilities of these individuals include, but are not limited to:  Assist city staff in volunteer training workshops  Provide monthly trails inspection form  Report major maintenance or safety issues  Share volunteer resources76 These volunteer leaders take a lead role on certain sections of trail to monitor its condition, conduct routine maintenance, and organize larger scale volunteer activities. The fifteen trail captains are in close coordination with city staff and act as the “eyes and ears” of the Department for much of the trail system. An additional tool used by the city to manage trails is the Adopt-A-Trail program. This program “provides opportunities for organizations and corporations to assist in the development and maintenance of city trails.”77 The city creates opportunities for organizations to participate through sponsorship and volunteer activities. In addition to the management of trails, the city manages approximately 688 acres of preserve and open space. These areas cover large portions of the city and include areas of the municipal golf course, urban forests, and the Lake Calavera Preserve. The majority of preserve activities are contracted out by the city and performed by a few vendors that have strong relationships with the city. These vendors carry out a wide array of preservation and maintenance activities, including acting as security patrols, conducting bird and endangered species surveys, habitat restoration, erosion control, and invasive plant removal. The city’s staff contribute to the preserve management through coordination with other government and non-profit entities. For example, the city has routine interaction with the California Game Preserve and a non-profit group, Preserve Calavera. Unfortunately, the city’s staff report that due to State budget challenges, the city’s staff perform some activities that are the responsibility of the State, such as weeding in State-managed beach areas. The City of Carlsbad strives to build the relationship with these government and non-profit entities, so that the city’s standards of maintenance can be kept at a high level. Finally, Department staff interact internally with PEM and the Preserve Steward to meet overall city goals of preserve management. 76 “Carlsbad Citywide Trails Volunteer Responsibilities” document. 77 City of Carlsbad “Adopt a Trail Program Guide” BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 104 Cost of Service  The total cost of service for the Trails/Open Space/Preserve line of business in FY11 was $1,168,197, which includes both direct and indirect costs. Since FY09, costs have been steadily increasing for personnel costs. The increase in personnel costs is due to the transfer of personnel from other departments to Parks & Recreation, and a shift of staff time to the line of business in FY10. These shifts are described below. Direct Costs FY09 Actuals FY10 Actuals FY11 Actuals Personnel $ 284,679 $ 376,909 $ 548,892 Maintenance and Operations (Direct Costs) $ 175,743 $ 147,007 $ 391,835 Capital Outlay $ 7,587 $ 1,362 $ 1,068 Subtotal Direct Costs $ 468,009 $ 525,278 $ 941,795 Indirect Costs FY09 Actuals FY10 Actuals FY11 Actuals Organization wide centralized services $ 113,253 $ 113,253 $ 113,253 IT Overhead $ 45,334 $ 33,979 $ 26,946 Fleet Overhead $ 64,198 $ 65,822 $ 64,100 Other Overhead $ 14,134 $ 19,824 $ 22,103 Subtotal Indirect Costs $ 236,919 $ 232,878 $ 226,402 Total Direct & Indirect Costs $ 704,928 $ 758,156 $ 1,168,197 Value of Volunteer Services FY09 Actuals FY10 Actuals FY11 Actuals Volunteer Services $ 37,225 $ 45,648 $ 52,227 Revenue FY09 Actuals FY10 Actuals FY11 Actuals Revenue (all sources) $ 0 $ 0 $ 10,034 The largest increase in personnel costs occurred between FY10 and FY11 and can be attributed the shift of the Associate Engineer position and City Preserve Management responsibilities from the Community and Economic Development Department to the Parks & Recreation Department. This transition was completed in July 2010. This shifted approximately $162,000 in personnel costs to the Department, 80% of which was allocated to the Trails/Open Space/Preserve line of business. The primary function of this staff member is the supervision and oversight of the preserve maintenance contracts, monitoring lagoon areas, and beach restoration. The increase between FY09 and FY10 can be partially attributed to the increased allocation of the assigned Management Analyst to this line of business and negotiated pay increases for staff. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 105 Also, the overall increase in M&O costs between FY10 and FY11 can be attributed to expenditures for the Center for Natural Lands Management (CNLM) contract that occurred only in FY11 (approximately $163,000). There were no reported expenditures for this contract in FY09 and FY10. Also, the significant increase is due to the transfer of a preservation grant from the Planning Department to Parks & Recreation in FY11. This grant is valued at approximately $190,000. Trail activities are performed primarily by one full time staff member and two part time staff members on Mondays and Fridays. Dedicated trail staff are also present for volunteer activities, which typically take place Saturday mornings. Due to the fact that the vast majority of preserve and open space activities are executed through contracts, staff time is mostly dedicated to contract management activities. Contract management tasks are carried out by five staff (Associate Engineer, Management Analyst, Park Planner, Senior Office Specialist, and the Parks Superintendent). 2009 2010 2011 Total Paid Effort 3.63 3.63 4.54 Full Time 3.47 3.49 4.37 Part Time 0.16 0.14 0.17 Volunteer Effort 0.79 0.98 1.12 To obtain a more detailed breakout between the different work activities of trails and preserve management, the city’s staff provided work breakdown structure information we used to calculate the specific hours for each sub activity within the Trails/Open Space/Preserve line of business. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 106 Tasks Effort in Hours/Yr % of Time Contract Management (Preserve, Trails) 1,446 15% Coordinate and manage trail volunteers 1,197 13% Trails pavement sealing/ repaving 1,117 12% Weeding 1,038 11% Special structure (water bars, culverts, retaining walls, wash crossings, overpasses, bridges, signs) repair/ maintenance 958 10% Vegetation removal 878 9% Monitor trail condition through inspection 559 6% Pothole filling 479 5% Public interaction 399 4% Preserve-Public coordination 399 4% Trail construction 319 3% Clean drainage system 160 2% Unpaved trail tread maintenance 160 2% Remove fallen trees 80 1% Pavement sweeping 80 1% Dog station replacement/repair 80 1% Trail edging repair/replacement 80 1% All Subfunction Hours 9,42778 100% The most time-consuming and costly activities include weeding, special structure maintenance, trails and pavement sealing, and vegetation removal. Through these activities, the city’s staff maintain the integrity, beauty, and safety of the trails. Combined, these activities consume approximately 46% of the labor hours in the Trails/Open Space/Preserve line of business. In 2011, the city documented 2,230 hours of trail volunteer work. Based on information gleaned in our interviews, this number may be low due to hours not recorded by volunteers. Based upon the data available, for every hour put in by the city’s staff, 1.7 hours are produced by volunteers. Overall, the Trails/Open Space/Preserve line of business appears to use very little capital equipment, according to expenditure data. Based on the nature of the service, this makes sense. For most trail activity, hand tools can be used. Some larger equipment would be required for pavement sealing and other more costly activities. In general, decisions regarding the sale or leasing of capital equipment for this line of business will be limited if the city elects to outsource these services. In years since FY09, very little revenue has been generated for the city under this line of business. Only $10,000 was reported for FY2011. However, based on statements by staff during the site visit interviews, this amount appears to be significantly under-represented. Staff stated that many of the trails donations are received via in-kind donations such as in the form of t-shirts, or may be recorded in other funds, such as special events. The city has limited ability to budget for trails and preserve activities due to a lack of a cash balance with these revenues. We recommend that the city improve its tracking of trails and preserve donations to fully capture these revenues and develop a process to allocate these funds specifically to trails and preserve projects. 78 Total differs slightly due to rounding. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 107 Volunteer Costs The Volunteer and Adopt-A-Trail programs appear to provide a significant benefit for the city. The city’s staff articulated that if volunteers ceased to provide services, the city would not have sufficient staff to maintain the trail system. In addition, the city has estimated significant cost savings through the volunteer program. For example, a city estimate indicates that one new mile of multi-use trail construction with the use of volunteers would cost approximately $3,000 - $75,000 per mile, depending on the type of trail. Without the use of volunteers, the same mile of trail may cost as much as $132,000.79 For FY 2011, the calculated value of volunteer services was $50,000. Clearly, the volunteer program and Adopt-A-Trail program are an essential part of the city carrying out trail maintenance activities at a lower cost than without. Coastal Rail Trail Costs The Coastal Rail Trail, approximately 0.7 miles long, consumes a large portion of trail costs. This trail is a heavily used portion of trail frequented by walkers and bikers. Staff estimate that approximately 60 – 70 percent of all trail vandalism takes place on this trail segment. Due to the many amenities on this trail, such as light bollards, each incident of vandalism can cost the city hundreds of dollars. Steps have been taken by the city to curb vandalism, such as doubling the private security presence from three to six days per week, and coordinating with the police department to increase patrols in the trail area.. Isolation of Trails and Preserve Costs While trail and preserve activities are found in the same line of business, we believe that due to the significant difference in the nature of the tasks performed, costs should be isolated for each activity type. Also, by isolating these costs, the city will be able to more easily identify costs saving opportunities. We worked with the city’s staff to isolate the costs identified above. The city’s staff used a split of 44% for trail activities, and 56% for preserve activities in FY 2011. Direct and Indirect Costs FY09 Actuals FY10 Actuals FY11 Actuals Trail Costs Only $ 507,548 $ 432,149 $ 434,326 Preserve/Open Space Costs Only $ 197,380 $ 326,007 $ 733,871 One can see a very different trend between trail and preserve activities through this separation. As the Department took on greater responsibility, contracts, grants, and staff related to preserve management, costs increased significantly since FY09 (over $355,000). However, the increased costs do not represent an increase in overall spending for the city. Rather, these funds were a transfer of responsibility for the city’s habitat preserve. During the same period, trails costs decreased by about $70,000. This decrease can be most likely attributed to a decrease in trail construction and greater efficiencies gained through trail maintenance and the Volunteer program. Service Statistics  The city tracks very few specific service statistics for trail activities. Partially, this is due to the limited use of Hansen to track specific activities. According to staff, the majority of work activities are recorded under the “Routine Trail Maintenance” category. As with other parks maintenance activities, we continue to recommend the increased use of Hansen to track a greater level of detail for service statistics. 79 City of Carlsbad “Adopt a Trail Program Guide” BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 108 While, activity data is limited, the city has established goals for trail maintenance cost, new trail development, and citizen satisfaction with the quality of the trail system. Currently, the city has a goal of keeping trail maintenance costs under $6,090 per mile. Based on our calculations, the city’s fully loaded direct cost per trail mile (does not include indirect costs), including coastal rail trail costs, is approximately $8,808. Additionally, the city has a goal of expanding the trail system by four miles per year. In the same FY11 budget year, the city reported that only 0.3 miles of trail were incorporated into the system from trail improvements and the acceptance of an irrevocable offer. Overall, trail development was low due to a decline in private development. Finally, the city tracks customer satisfaction related to the trail system. The city reported that 88% of all respondents rated the trails satisfaction as good or excellent on the City of Carlsbad public opinion survey.80 The city has a goal of maintaining a 90% rating for this measure. The city’s staff have indicated that it is difficult to obtain a higher rating due to the population’s high demand for more trails. Based on information provided by the city’s staff, there appears to be no specific service statistics related to Preserve activities. The city currently maintains 688 acres of preserves. Benchmarks & Industry Standards  Since 2004, the city has added over 20 miles of trail.81 Compared to a national average, the city has more total trails for its population than the average municipality. City of Carlsbad Comp. A Comp. B Comp. C Comp. E Comp. F NRPA National (Median) Trail Mileage Total 4782 40.5 9.5 Not answered 13.3 60 36.63 Trail Mileage per 10,000 population 4.46 6.80 1.51 Not answered 2.09 7.16 Not applicable Dirt (Miles) 31.3 No info 0.5 Not answered 11.1 0 Not applicable Crushed Gravel (Miles) 0 No info 3 Not answered 0 33 Not applicable Paved (Miles) 6.7 No info 6 Not answered 3.2 27 Not applicable Direct Cost Per Trail Mile $8,80883 $3,39384 $1,916 Not answered $18,340 $3,450 Not applicable When compared to its regional peers, the city has the second highest total mileage count, and the third highest miles of trail per 10,000 population. The city is also just above the average miles of trail per 10,000 population within its peer group (average is 4.41). Also, when compared to its peers, the city has a significantly larger proportion of dirt trails compared to all trail types. This ratio is consistent with the above 80 Ibid. 81 City Wide Trails Program 5 Year Maintenance and Operations Plan. 82 Carlsbad manages only 38 of the 47 miles of trail available. The remainder is managed by private organizations or the Streets Department. 83 Cost per trail mile is calculated using 38 miles of trail managed by the City of Carlsbad divided by total direct trail costs. If indirect trail costs are added, the cost per trail miles increases to $11,430. 84 Comparable A total trails cost was calculated by allocating $32,400 of the parks maintenance personnel costs to trail activities as directed by the survey point of contact. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 109 average amount of open space and preserve area when compared to its regional peer group. In these preserve areas, unpaved trails are often used to maintain the natural landscape and enhance environmental preservation. Unfortunately there is limited national data identifying the average cost per trail mile. A July 2005 report by the Rails to Trails Conservancy discussed the challenges with identifying trail maintenance costs. The report states, “First, the trail may be part of a larger budget for a single park or even an entire parks and recreation department.”85 Knowing these limitations, the report indicated an average M&O cost for the 100 respondents of the study: 86 M&O Cost Per Mile Asphalt $ 1,458 Non-Asphalt $ 1,478 The city by comparison has an M&O cost per mile of $2,440 in FY 2011. Also, the city is higher in cost (direct costs) per mile when compared to its regional peer group. These higher costs are likely due to the nature of the city’s trails. The $8,808 per mile cost (direct costs) was calculated by including all direct trail costs and includes costs associated with the Coastal Rail Trail. As indicated earlier, the Coastal Rail Trail experiences a large portion of vandalism which increases the overall cost per trail mile. Finally, the city has a larger proportion of dirt trails than other municipalities (82% of 38 miles of trail maintained by the city). While significantly more expensive to install, once constructed, asphalt trails may require lower maintenance as demonstrated in the Rails to Trails study. Due to the diverse nature and definition of preserve areas, it is difficult to establish national or even regional benchmarks for preserve management. As part of our comparability study, only one municipality reported having preserve acreage. The table below summarizes this data: Acreage Type City of Carlsbad Comparable F NRPA National (Median) Preserve Acreage 688 38 1740 Preserve Acreage per 10,000 Population 65.3 4.5 N/A Preserve Direct Cost (FY11) $ 425,993 $ 247,000 N/A Preserve Direct Cost Per Acre $ 619 $ 6,500 N/A When compared to this municipality, the city has significantly more preserve acreage per 10,000 population. When compared to the national average, the city has more than a thousand fewer acres than the national average. However, because these are national figures, rural regions of the country may be skewing these results as they likely have significantly more preserve acreage than more urban municipalities. In terms of cost, the city is likely less expensive due to the strong relationship and high degrees of use with its current preserve maintenance vendors (compared to in-house activities), and cost efficiencies realized through a larger tract of preserve acreage. Overall the city appears to be a regional leader in providing a large amount of natural area for its citizens to enjoy through hiking, water sports, and nature viewing. 85 Rail-Trail Maintenance and Operation: Ensuring the Future of Your Trail – A Survey of 100 Rail-Trails, Rails to Trails Conservancy, July 2005. 86 Ibid. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 110 Current Outsourcing Activities  The majority of contracted services are related to preserve management activities. Large preserve management contracts such as the Center for Natural Lands Management and the two Habitat Restoration Services account for 62% of contract expenditures for this line of business in FY11. The table below indicates Trails/Open Space/Preserve applicable contracts over $1,000. Company Description FY11 Actuals Allocated to Trails/Open Space/Preserve Agricultural Pest Control, Inc. Agricultural pest control $ 1,146 California Conservation Corps Urban forest thinning 2011/12 $ 25,020 Center for Natural Lands Management Habitat management services to the city to help fulfill the goals of the Preserve Management Plan (“PMP”) $ 163,526 Coastal Frontiers Corporate Offshore profile survey services along the Carlsbad coastline $ 19,161 Habitat Restoration Sciences Lake Calavera 5-Acre Habitat Restoration Project $ 23,619 Habitat Restoration Sciences Lake Calavera 1-Acre Mitigation Project $ 8,462 Locator Services DBA Able Patrol and Guard Security services $ 14,446 Merkel & Associates, Inc Lagoon buoys maintenance $ 34,175 Westturf Landscape Maintenance / Sergio Graham landscape maintenance work at specified parks, facilities, and trails areas $ 2,326 Habitat West, Inc. Preserve restoration/monitoring $ 5,299 P.B.A. Ltd Engineering Services $ 1,500 SANDAG Beach Sand Nourishment $ 14,691 The city’s staff report that they have an outstanding relationship with the preserve management contractors and meet frequently to achieve mutually agreed upon goals. For example, with the CNLM contract, city staff are in contact with the vendor three times per week and conduct monthly meetings to go over restoration projects. The city staff report that this strong relationship and the quality of service provided by the vendors has led to positive preserve management results during recent years. Based on discussion with the city’s staff, the current strategy of contracting preserve management activities appears to be the most cost effective choice providing the highest service. Reasons to maintain this partnership include:  Lack of competition from other organizations and current option has been determined to be the most cost effective after years of contracting  Strong existing relationship that promotes collaboration  Lack of expertise of staff to carry out preserve management activities BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 111  Current contractor has wealth of experience In addition, the non-profit contractor primarily responsible for providing the preserve management services recently restructured their contract with the city, lowering the cost starting in FY 2013. The current contractor appears to be a strong strategic partner in supporting the city achieve its preserve management goals. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 112 Trails/Open Space/Preserve Maintenance: Future State Alternatives  Area & Focus Option Opportunity Amount (Annual Unless Otherwise Noted) OE Expand use of Volunteer Trail Program to meet trail development goals, enhance existing trails, or reduce costs $ 6,700 MC Conduct managed competition for trail maintenance activities $ 111,300 Operational Efficiencies  Expanded Use of Trail Volunteer Program As stated earlier in the report, the Trails Volunteer Program appears to be saving the city a significant amount of money each year. The program also appears to be effective in maintaining the trails with close support from city staff. Due to the success of the program, we recommend that the city consider expansion of the program to increase trail rehabilitation activities and reduce trail costs. The use of volunteers to reduce trail maintenance costs is also demonstrated in an analysis by the Rails to Trails Conservancy. The analysis indicates that the annual cost for “government-run trails” was approximately $2,000 per mile and volunteer run trails approximately $700 per mile.87 The difference in costs is primarily due to the payment of workers in the government run scenario versus the volunteer scenario which includes primarily materials costs and minimal management. Estimated reallocation: If we assume that an additional 200 trail volunteer hours can be generated with minimal increases to staff time required to manage those volunteers, $6,700 of additional staff costs would be reallocated to other activities.88 Direct Outsourcing  We did not identify direct outsourcing opportunities for the Trails/Open Space/Preserve line of business. Managed Competition Candidates  As discussed earlier in this section, we do not believe there are additional opportunities for managed competition or direct outsourcing for preserve maintenance activities. The fact that almost all preserve management activities are already outsourced, and the strong relationship with current vendors and their expertise do not suggest changes in the current model are necessary or cost effective. However, we believe there are opportunities for trail maintenance and construction. During initial discussions with two national and two local parks maintenance vendors (provide landscaping and tree maintenance), vendors stated that they had limited experience in trail maintenance or development. Typically, trail maintenance by these vendors would include basic landscaping, vegetation removal, and tree clearance, but limited work on repairing trail structures or fixtures. 87 Rail Trail Maintenance and Operation Ensuring the Future of Your Trail-A Survey of 100 Rail-Trails. Rails to Trails Conservancy, 2005. 88 Based on hourly personnel cost rate of Trails Maintenance Worker II position of $33.50 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 113 There are a couple national or landscaping specific vendors expressed specific background in trail construction. There are some trail specialty vendors that conduct trail construction across the country.89 However, these vendors do not appear to be geographically located near Carlsbad. The specialty vendors are typically hired to perform trail construction and then end the contract, and not provide ongoing services including volunteer management. This represents an opportunity for the city to expand the current market to include more consistent and long term services in this area. Because of the limited nature of the vendor pool and the narrow gap in current cost of service vs. the private sector rates (see below), we recommend that trail maintenance be considered for managed competition. Estimated Savings: Based on industry data, there is a measurable difference in personnel costs between the city and private contractors. For the purposes of comparison we use the Maintenance Worker II position for Carlsbad as a reference point. We believe this position’s average salary represents a balanced rate of the various positions that perform trail activities. Private90 Public City of Carlsbad Salary % Difference Salary % Difference Salary for Maintenance Worker $ 45,243 $ 32,56791 33% $ 32,556 92 33% Total Compensation for Maintenance Worker $ 75,796 $ 43,30793 55% $ 54,807 94 32% If we use the gap in private sector vs. city pay (55%) as a benchmark for savings, we place that cost at approximately $111,337 per year.95 Because this gap is relatively low, we recommend that the city consider working with CCEA to determine whether or not CCEA would be amenable to managed competition. The options for bridging the gap include: > Increasing availability of staff thereby reducing replacement costs; > Considering whether or not reduced crew sizes are an option; > Consider whether or not there are other bargaining concessions that can be made to reduce the overall cost of service.   89 Website www.trailbuilders.org contains a list of trail contractors for proposals on trail projects. 90 Public and private salary estimates based on ERI data. Base salaries were calculated by averaging the ERI salaries of a Groundskeeper and Gardener position with 10 years of experience. Public and private total compensation estimates is based on data from the Bureau of Labor Statistics March 2012 Employer Costs for Employee Compensation report. National data indicates that for the service occupation set, salary is 75.2% of total compensation for the private sector and 59.4 for the public sector.. 91 Salary for private sector maintenance worker II based on ERI April 1, 2012 dataset (recreation entities subset). Salary was estimated by averaging the salary of a gardener ($30,802) and groundskeeper ($34,331), both with 10 years experience. 92 Salary for public sector maintenance worker II based on ERI April 1, 2012 dataset (government support services subset). Salary was estimated by averaging the salary of a gardener ($30,794) and groundskeeper ($34,317), both with 10 years experience. 93 Based on national Bureau of Labor Statistics March 2012 Employer Costs for Employee Compensation report, salary for a private sector worker in the “service” occupation is 75.2% of total compensation. Total compensation estimate for a private sector maintenance worker II was calculated as follows: ($32,567/0.752). 94 Based on national Bureau of Labor Statistics March 2012 Employer Costs for Employee Compensation report, salary for a public sector worker in the “service” occupation is 59.4% of total compensation. Total compensation estimate for a public sector maintenance worker II was calculated as follows: ($32,556/0.594). 95 Estimate is based on calculated personnel costs for trails only of $204,073 in FY11. Calculation is based on difference of 54.56% which is rounded to 55% in the comparison table. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 114 Tree Maintenance/Management: Current State Analysis  Description of Activities  The city has placed an increasing focus in recent years on maintaining the beauty and condition of its urban trees. The city takes great pride in the quality of its trees and has achieved a Tree City USA designation for seven straight years. City staff also stated that they strive to meet or exceed International Society of Arboriculture (ISA) standards in the maintenance of their tree inventory. Since 2004, the Department has increased the frequency in which its trees are pruned as part of a proactive maintenance program. This increase in proactive maintenance was chosen to increase the beauty and safety of trees, but also decrease the amount of reactive or emergency maintenance required. Parks maintenance activities for trees include a variety of median, parks, street, and facility trees. These trees, depending on their species or location in the city, are now pruned on a two to four year cycle. Most trees except for those in urban forest areas like Hosp Grove are included in this city-wide pruning program. More frequent pruning occurs for species like eucalyptus or trees that are located in high visibility areas such as the downtown district or larger parks. Activities for tree maintenance include a combination of routine maintenance and responses to service request or emergencies. Routine activities primarily include pruning, watering, fertilization, inventory and root pruning. Other less frequent activities that are often completed on an as-needed basis include staking, guying, stump removal, and tree planting. The majority of activities are completed through a combination of in-house staff and contracted work. The breakdown of this work will be discussed in the current contracts section of the report. Unlike trail maintenance, tree activities are not supported to a great extent by volunteer activities. However, the city does have one tree related volunteer event each year on Arbor Day. The city is still trying to increase the completeness of recording the volunteer hours for this event. Unfortunately, a precise count of the volunteer hours for these days does not appear to be available. Cost of Service  For FY11, the city expended a total of $1,669,779 on tree maintenance services. Of these costs, personnel costs (50%) and M&O costs (29%) were the two most significant cost categories. Direct Costs FY09 Actuals FY10 Actuals FY11 Actuals Personnel $ 741,249 $ 773,145 $ 848,723 Maintenance and Operations (Direct Costs) $ 359,229 $ 354,233 $ 480,815 Capital Outlay $ 7,269 $ 309 $ 641 Subtotal Direct Costs $ 1,107,747 $ 1,127,688 $ 1,330,178 Indirect Costs FY09 Actuals FY10 Actuals FY11 Actuals Organization wide centralized services $ 163,792 $ 163,792 $ 163,792 IT Overhead $ 25,308 $ 44,834 $ 34,356 Fleet Overhead $ 71,403 $ 71,988 $ 75,523 Other Overhead $ 68,148 $ 76,693 $ 65,930 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 115 Subtotal Indirect Costs $ 328,651 $ 357,307 $ 339,601 Total Direct & Indirect Costs $ 1,436,398 $ 1,484,995 $ 1,669,779 Value of Volunteer Services FY09 Actuals FY10 Actuals FY11 Actuals Volunteer Services $ 0 $ 0 $ 0 Revenue FY09 Actuals FY10 Actuals FY11 Actuals Revenue (all sources) $ 530,445 $ 527,294 $ 519,615 Since FY09, M&O costs experienced the largest growth of approximately $122,000. This is consistent with the city’s strategy of increasing overall contracts to increase the frequency of proactive tree maintenance across trees under the Department’s purview. Proactive maintenance is also commonly referred to as preventative maintenance. This increase can be associated primarily with increases to the West Coast Arborist Contract. The large increase in M&O costs, and specifically contract costs between FY10 and FY11 should be seen as a cost peak according to city staff. During FY11, a higher than normal number of trees were maintained to “catch trees up” to the proactive pruning schedule. Staff expect that contract costs for future years will be lower than FY11. Fleet costs have remained relatively consistent for the city since FY09. During the site visit interviews, no significant changes in equipment needs were reported during this period or new major pieces of capital equipment were purchased. Tree maintenance activities do rely on capital equipment including boom trucks, chippers, and power tools. Revenues for tree activities in designated street tree areas and medians are primarily sourced from the median and tree maintenance assessment districts. Revenues from the assessment districts remained relatively consistent due to limited increases in the assessment. As mentioned, personnel costs are approximately 50% of the overall tree maintenance costs in FY11 and have remained relatively consistent since FY09. An increase of approximately $100,000 in personnel costs since FY09 is reflected in a small increase in FTE work hours and a small decrease in part time hours worked. Thus, overall personnel cost increases are partially due to negotiated salary increases during this period. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 116 2009 2010 2011 Total Paid Effort 7.53 7.97 7.87 Full Time 6.75 7.03 7.12 Part Time 0.78 0.94 0.75 Volunteer Effort 0.00 0.00 0.00 Because levels dedicated tree staff have remained consistent since FY09, additional work hours for tree activities are coming from “cross line of business” work (staff primarily dedicated to landscaping, trails, hardscape, or preserve work). For these personnel, their time is spent primarily on general tree pruning (45%) and contract management (35%). Again, this is consistent with the overall strategy of tree services, balancing the completion of tree activities through a combination of in-house work and contract management. Tasks Estimated Effort in Hours/Yr % of Staff Time General Tree Pruning 6624 45% Contract Management 5216 35% Tree Inventory 2496 17% Tree Training and Preservation 96 Less than 1% Tree Watering and Irrigation 96 Less than 1% Tree replacement 96 Less than 1% Respond to emergencies 96 Less than 1% Tree and Stump Removal 96 Less than 1% All Subfunction Hours and Cost 14,816 100% As part of our analysis we calculated the difference between in-house and contracted tree maintenance activities. Our analysis indicates that proactive and reactive tree maintenance can be achieved at a lower BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 117 cost with contracted staff. Proactive and reactive maintenance include pruning activities that are part of the proactive maintenance plan and responding to maintenance requests during normal business hours. Emergent activities primarily include emergency responses that occur after normal business hours. For emergent activities, City staff receive additional compensation for after hours work, thus the hourly cost is higher when compared to proactive and reactive activities. However, overall lower hourly costs are achieved due to the fact that approximately 95% of emergency tree requests can be completed by a single in-house staff member, whereas outsourced vendors must contain a full crew complement of three FTE regardless of the nature of the emergency request. Hourly Tree Maintenance Costs City Hourly Cost Break-Out Proactive and Reactive Salary and Benefits Hourly Rate Emergent Salary and Benefits Hourly Rate City Estimate of Vendor Hourly Rate (All Service Types) Tree Trimmer Lead Worker $ 49.0496 $ 62.47 Includes 3 person crew, truck, chipper, and contract management/ inspection Tree Trimmer II $ 45.1997 Not applicable Part-Time Grounds Person $ 16.49 $ 0.00 Stakebed Truck Not applicable $ 29.40 Aerial Truck $ 88.21 $ 0.00 Chipper $ 1.59 $ 0.00 Total City Hourly Costs $ 200.52 $ 91.87 $ 172.80 Difference With Vendor Cost $ 27.72 $ (80.93) Not Applicable Using these calculations, the difference between the city’s salary and benefits hourly rate and the hourly rate of a contractor for proactive and reactive maintenance is approximately $28.Regarding emergent activities, we estimate that the difference is approximately $81-that is, $81 less expensive per hour to complete these activities when compared to a vendor. These calculations make a strong case for contracting proactive and reactive activities assuming that contractors are able to provide an equivalent level of service as in-house staff through strong contract management. However, evidence seems to indicate that using in-house staff for emergent activities may be more cost effective and provide a higher level of service through faster response time. Police dispatch is able to contact tree staff directly improving the overall response time. City staff estimated that approximately 96 hours were spent on emergent activities in FY10. Assuming the $80.93 per hour cost savings for use of in-house staff for emergent activities, the city saves approximately $7,769 per year by completing this activity in-house. Consideration of the Tree Assessment District Similar to the Median Assessment district, the city reports significant challenges with the Tree Assessment District covering costs for its intended purpose: the maintenance of street trees. For FY12, the city estimates that it will have to make a transfer from the General Fund to cover a funding gap with the Tree Assessment District. The city does not yet have information on the extent of the gap. The city should 96 Hourly rate calculated using Tree Trimmer Lead worker total compensation of $102,000. 97 Hourly rate calculated using Tree Trimmer II total compensation of $94,000. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 118 identify additional revenue through the District or identify cost savings opportunities as the District should be self-funded. Service Statistics  Based on current inventory counts, the Department has primary responsibility for approximately 20,000 trees. Approximately 14,500 have been inventoried for the purposes of the proactive maintenance cycle. Another 5,500 trees located in urban forest areas are part of a two year inspection cycle but do not receive the same level of maintenance as the inventoried trees. The city has been able to track tree activities with some precision in recent years. Through the use of Hansen, reporting requirements by contractors for tree services, and the use of GIS systems, the city has been able to monitor tree pruning activity and report counts. In Hansen, staff are using five primary categories to report workload: tree pruning, tree planting, stump removal, tree removal, and clearance pruning. Despite this, city staff report that some tree pruning counts may not be fully captured using these categories or reporting may be inconsistent among staff. For this reason, we have recommended not using this data for the purposes of this report. City staff provided refined tree counts and are depicted in the table below. The table depicts tree counts based on location (parks/facility, street trees, median, or no specified zone) and if the tree was maintained via contract or in-house staff. 98 Percent of Trees Contracted FY09 FY10 FY11 Park/Facility Tree 0.35% 0.06% 25.0% Street Tree 61.8% 65.7% 59.7% Median 0.00% 0.00% 68.0% No Zone Specified N/A 100.00% N/A Total % Contracted 27.6% 22.7% 45.6% Tree Costs FY09 FY10 FY11 Total Direct Tree Costs $1,107,747 $1,127,688 $1,330,178 Direct Cost Per Tree $711 $418 $353 From the data, key insights can be generated for the city’s tree maintenance program:  The total number of trees maintained from FY09-11 has increased dramatically: approximately 2,200 trees or a 59% increase. This increase is a result of an increased proactive maintenance approach for the city’s tree inventory. 98 Tree pruning count does not include maintenance on approximately 5,000 trees in urban forest areas. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 119  The percentage of trees maintained by contractors versus in-house staff has increased from 27.6% to 45.6%. The increase in proactive maintenance was met through additional contracted support.  While total tree costs have increased, the direct cost per tree has decreased by approximately $358 since FY09. These patterns appear to be consistent with the activities that the city has undertaken to achieve the best value in service.  Overall increase of proactive tree pruning program since 2004 and incorporation of median trees into the proactive program.  Increased reliance on contractors to meet larger volume of tree pruning needs. The cost per tree decrease may be due to a variety of reasons, most notably efficiencies generated through volume of trees maintained, reduced costs for reactive services through prevention (benefit of proactive tree pruning program), and lower costs for contractors with routine tree maintenance. Benchmarks & Industry Standards  In terms of maintenance standards, the city adheres to and strives to exceed the International Society of Arboriculture (ISA) standards. This organization provides best practices, information sharing, and certification for tree care professionals. The city also follows the California state standard that requires a boom truck be operated with at least two crew members. We rely primarily on regional comparable municipalities for analysis of tree cost and productivity. Unfortunately, a great deal of national or international data is not available due to the many differences in climate and trees species maintained around the world. A total of three of the six municipalities reported complete tree information as part of their survey responses which includes an annual tree maintenance count and cost. An additional three municipalities provided supplemental information on the structure of their tree pruning program. Carlsbad Comparable A Comparable B Comparable C Comparable E Comparable F # Total Trees Maintained 19,925 No information No information 35,000 15,500 No information # Tree Maintained Annually 3,750 No information 3,100 12,340 2,000 No information % of Trees Maintained by Contractors 46% 100% 100% 93% 100% 50% Annual Tree Maintenance Direct Cost $1,330,178 $46,99799 $140,000 $1,071,698 $416,080 $30,000 Direct Cost Per Tree Maintained $353 Insufficient information $45 $87 $208 Insufficient information 99 Comparable A tree cost calculated by allocating 3% of parks maintenance personnel costs to tree activities. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 120 Carlsbad Comparable A Comparable B Comparable C Comparable E Comparable F Type of Tree Maintenance Proactive- 2-4 year pruning cycle depending on tree species and location Reactive Proactive- 3-6 year cycles depending on park and tree species Proactive- 3 year cycles based on grid pruning and service request pruning Proactive- Block trimming based on annual budget: 2000 trees per year Proactive- pruning, damage control; Fall and winter pruning cycle. Emergency Tree Response Primarily in- house- contracted when necessary for volume and equipment Contracted Contracted Contracted- For large storm events, city staff to organize contract crews and city staff crews Contracted- Contractor is called once staff ascertains need Combination- large projects requiring a bucket truck are contracted; smaller projects are in-house In-House Crew Structure 3 person crew Not applicable Not applicable In-house crews scheduled on as needed basis Not applicable No information Many municipalities reported that they were unable to report the number of trees pruned per year. One municipality stated that it is undergoing a process to inventory its trees and would be able to track this quantity in the near future. First, this indicates that the city appears to be a regional leader in tracking tree maintenance data. This information should continue to support the city in its decision making around tree maintenance. Compared to its peers, the city appears to be equipped to make more informed choices about its tree pruning program. Another key observation is the very large variance in the amount of expenditures for tree maintenance. Based on comparable statements, this can be partially attributed to the scope of tree maintenance services provided by either the Parks & Recreation Department or PEM. In some circumstances, municipalities only reported tree maintenance costs and tree counts related to their department. Comparable A, for example, did not report costs for its median trees. In this respect, the Department appears to manage a much larger scope of trees (medians, facilities, parks, and street) when compared to its regional peers. Unfortunately, insufficient data is available to associate the centralization of tree maintenance to potential cost savings. Surveyed comparable municipalities were asked to describe the type of maintenance performed, structure of emergency tree response, and crew sizes. Based on our experience, these factors are common drivers of tree maintenance costs. All but one surveyed municipality reported using a form of proactive tree maintenance with frequencies varying from two to six years. Proactive maintenance appears to be a trend that the city has adopted. Also, the survey confirms the city’s assertion that it has one of the most frequent tree pruning cycles in its region. The city is unique in providing emergency tree services in-house. This trend is most likely explained in that most other municipalities have fully outsourced tree maintenance operations and have limited in- house staff to perform this service. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 121 Compared to three peer municipalities who reported sufficient information to estimate a per tree cost, the city has the highest per tree cost and the cost per tree varies significantly between these municipalities. There are several explanations for this difference in cost:  The city’s annual tree count does not fully include trees maintained in the “urban forest” areas which inflates costs  The city has the lowest percentage of contracted tree maintenance when compared to peer municipalities. This may indicate potential cost savings with increased contracted tree maintenance.  The city has the highest reported frequency of tree pruning when compared to peer municipalities. More frequent pruning will likely result in higher short term costs, but may result in longer term cost savings. To confirm these hypotheses, additional information would be needed from comparable municipalities to understand the impact of contracting on cost. Also, additional data would be needed from the city to determine the long-term savings impact of more frequent tree pruning. The city should continue to track the number of trees pruned and more specifically, the frequency and cost of reactive and emergent maintenance. The city should experience a downward trend in these costs in coming years. Understanding these cost savings will help the city determine the benefit/cost of the increased frequency of tree pruning. Current Outsourcing Activities  The majority of the city’s tree maintenance contract activities are with two vendors. The California Conservation Corps is a state sponsored program for young adults that “boosts employable skills” and enhances the state’s natural resources. The work performed by corps members for the City of Carlsbad focuses on urban forest areas and includes fire fuel reduction and some tree pruning. The city has been able to obtain a very low rate for these services when compared to a private provider. The second large contract with West Coast Arborist provides tree maintenance services for locations throughout the city. Several other small non-routine contracts provided services in years prior to 2011. The table below depicts contracts over $1,000 that are applicable to the Trees line of business. Company Description FY11 Actuals Allocated to Trees California Conservation Corps Urban forest thinning 2011/12 $ 100,080 Nissho of California, Inc Landscape maintenance work at specified street medians and parkways $ 14,286 West Coast Arborist, Inc. Tree trimming maintenance services $ 260,085 Westturf Landscape Maintenance / Sergio Graham landscape maintenance work at specified parks, facilities, and trails areas $ 2,326 Harris & Associates Assessment District Engineering $ 4,148 Plant-Tek Inc Pesticide Application $ 1,796 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 122 The city performs contract management for these tree maintenance contracts via ten total staff members. The majority of contract management costs originated from four staff members, Parks Trees Supervisor, two Tree Trimmer Leadworkers, and the Parks Superintendent. Tasks include regular meetings with contractors and on-site inspections of the tree contractors’ work. Tree Maintenance/Management: Future State Alternatives  Area & Focus Option Opportunity Amount (Annual Unless Otherwise Noted) DO Directly outsource tree maintenance activities and continue to use in-house staff for emergent activities $ 690,000 Operational Efficiencies  No operational efficiencies were identified for the Tree line of business. Managed Competition Candidates  We have not identified the Tree line of business as a candidate for managed competition. Direct Outsourcing  Based on data from the city and Comparable Municipalities, the Tree line of business is a candidate for direct outsourcing. We believe there are several compelling reasons for this direction:  The majority of activities conducted within the Tree line of business are proactive and reactive maintenance which can be conducted at a lower cost though contracted maintenance  The city has already moved in a direction of outsourcing tree activities to meet the increased proactive pruning demand and quality has been achieved through strong contract management  Comparable municipalities are using a similar strategy of outsourcing the majority of tree maintenance activities  The city does not appear to have a significant opportunity for cost savings through a proactive management approach as it is already utilizing the program As stated, one significant advantage that in-house staff possess with tree maintenance is lower emergent tree maintenance costs and better response times due to the connection with police dispatch. In a new fully outsourced model, city staff would still be present to manage contracted tree maintenance activities. These staff should be trained tree maintenance staff that double as contract managers. These staff could continue to perform the small number of simple emergent requests that come up each year (95% of emergent requests are fulfilled with one staff member). Larger emergent maintenance requests that require special equipment or larger volume of staff could be met through contracted services. Also, in- house tree staff could continue to set the tree pruning schedule to meet the city’s priorities. If the city considered outsourcing additional tree services, the cost of maintaining this equipment may need to be questioned. An option the city may have to consider is selling the equipment or leasing it to the contractor or other entities. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 123 Estimated savings: Based on data provided by one vendor who responded to our cost estimate information request, there appears to be a substantial opportunity for cost savings through outsourcing. Below is an estimate of a fully outsourced tree maintenance program. This estimate was based on FY11 activities to facilitate a comparison of costs with the city. Direct Costs Vendor Fees $ 650,000 Equipment & Supplies Included Subtotal Direct Costs $ 650,000 Indirect Costs Ongoing contract management tasks (city staff time and resources) $ 329,812 Other Oversight Tasks Included Qualitative/Soft Costs Included Subtotal Indirect Costs $ 329,812 Total Direct & Indirect Costs – Vendor Option $ 979,812 Currently, the equivalent of approximately 2.5 FTE manages existing tree contracts. If tree maintenance moved to a full outsourced model, we believe that an additional FTE would be able to accommodate the additional oversight requirements. The cost estimate for 3.5 FTE to manage a fully outsourced tree maintenance model is $329,812.100 Cost Comparison Current Internal Cost $ 1,669,779 Fully Outsourced Option $ 979,812 Potential Savings $ 689,967 Using these estimates, we see that the difference between the status quo and the fully outsourced tree maintenance model is approximately $369,000. Using the high cost estimate provided by the vendor, the estimated savings is $200,729. To support the potential cost savings estimate, we can look at industry data to compare salary rates of city staff, public employees in the region, and private entities in the region. Based on this data, there is a 33% difference between the average salary of a Tree Trimmer II compared to public and private employees in the region. There is a greater difference of 55% comparing total compensation with private sector employees. These estimates support the evidence for cost savings through outsourcing. 100 Based on contract management personnel cost of $94,232 per FTE. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 124 Private101 Public City of Carlsbad Salary % Difference Salary % Difference Salary for Tree Trimmer $ 52,279 $ 37,462102 33% $ 37,443 103 33% Total Compensation for Tree Trimmer $ 87,909 $ 49,816104 55% $ 63,035 105 33% With strong contract management, we believe that the city can achieve significant cost savings through a fully outsourced tree maintenance model.       101 Public and private total compensation estimates based data from Bureau of Labor Statistics March 2012 Employer Costs for Employee Compensation report. National data indicates that for the “service” occupation set, salary is 75.2% of total compensation for private sector, and 59.4% for the public sector. 102 Salary for private sector tree trimmer based on ERI April 1, 2012 dataset (recreation entities subset) for a tree trimmer with 10 years of experience. 103 Salary for public sector tree trimmer based on ERI April 1, 2012 dataset (government support services subset) for a tree trimmer with 10 years of experience. 104 Based on national Bureau of Labor Statistics March 2012 Employer Costs for Employee Compensation report, salary for a private sector worker in the “service” occupation is 75.2% of total compensation. Total compensation estimate for a private sector tree trimmer was calculated as follows: ($37,462/0.752). 105 Based on national Bureau of Labor Statistics March 2012 Employer Costs for Employee Compensation report, salary for a public sector worker in the “service” occupation is 59.4% of total compensation. Total compensation estimate for a public sector tree trimmer was calculated as follows: ($37,443/0.594). BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 125 Recreation: Overview  Recreation contains five separate lines of business: Aquatic services, historical parks services, recreation services, rental services and senior services. These lines of business are extremely diverse in nature and require a significantly different service focus and competency. From the management of swim lessons to the preservation of historical parks, this area of municipal services requires effective facilities management and maintenance, as well as effective program management. The changes in demographics will have a significant impact on this municipal service area from the programs offered at senior centers, to the way in which facilities are marketed and most importantly the manner in which cities communicate and conduct business with their residents. Trends relative to private and non-profit partnerships for both programs and facilities are vastly changing the way in which municipal recreation services are provided. Also, the work of consumer trends researcher Rich Luker106 indicates that many residents are increasingly looking for more community engagement and recreational activities as a key component of where they live. As such, despite the fact that recreation may not be what some consider a “core” municipal services, a continuum of high quality recreation services is an expectation of residents. Our findings and recommendations take these trends and challenges into consideration and offer options for the city to consider in offering recreation programming which offers quality of life in a cost effective manner.   106 Simple Community, Dr. Richard Luker, 2009 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 126 Aquatic Services: Current State Analysis  Description of Activities  The city’s current aquatics facilities consist of a single, 30 year-old, 25 meter pool that was built jointly with the School District. The pool is managed by city staff, but the facility is located adjacent to a high school and is programmed around high school events and aquatic program needs. The high school is one of several organizations which rents space for its team and uses the most pool time. The primary activities at the pool include swim lessons, master classes, team and club rentals and recreational swim. The pool director has a complex system for scheduling the pool to try to maximize pool use, but must give priority to the high school when it comes to scheduling. During an average year, the pool is used by individuals as well as organized groups. The city is currently in the process of planning for a Community Park Aquatic Center (Alga Norte) to be built in 2013 that would include multiple pools, sports facilities and play areas. The new facility will increase pool space significantly and stretch current aquatics resources given that the facility is about three times the size of the current facility, with considerably different amenities. This will significantly impact revenue potential, and also will have a substantial impact on available programming and operational costs. It is anticipated that current annual aquatics attendance of 86,000 will increase. The city needs to continue to plan carefully to ensure a balance between expended resources and optimized revenue. Cost of Service  Based upon policy decisions related to fees, the pool is not currently self sufficient in terms of generating enough revenue to truly cover its cost of operation. It costs roughly $660,000 in direct costs to operate the pool on an annual basis, whereas revenue equates to approximately $364,000 (FY11). This leaves a gap of approximately $300,000 when considering revenue to expenditures. With the addition of indirect costs, the total cost to operate the pool is approximately $835,000 annual, widening the revenue to expenditure gap to $471,000. Direct Costs FY09 Actuals FY10 Actuals FY11 Actuals Personnel $ 469,440 $ 483,329 $ 487,896 Maintenance and Operations (Direct Costs) $ 151,032 $ 144,142 $ 174,812 Capital Outlay $ 499 $ 0 $ 534 Subtotal Direct Costs $ 620,971 $ 627,471 $ 663,242 Indirect Costs FY09 Actuals FY10 Actuals FY11 Actuals Organization wide centralized services $ 128,919 $ 128,919 $ 128,919 IT Overhead $ 13,595 $ 26,766 $ 29,619 Fleet Overhead $ 0 $ 0 $ 0 Other Overhead $ 5,307 $ 11,818 $ 12,630 Subtotal Indirect Costs $ 147,821 $ 167,503 $ 171,168 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 127 Total Direct & Indirect Costs $ 768,792 $ 794,974 $ 834,411 Value of Volunteer Services FY09 Actuals FY10 Actuals FY11 Actuals Volunteer Services $ 10,855 $ 10,690 $ 11,382 Revenue FY09 Actuals FY10 Actuals FY11 Actuals Revenue (all sources) $ 359,568 $ 343,668 $ 364,365 The current pool employs approximately 9 full time equivalent positions (2.66 are full time and 6.33 are part time). This number has decreased by roughly 1.5 FTE during the past two years through the elimination of part time positions. 2009 2010 2011 Total Paid Effort 10.44 9.98 8.99 Full Time 2.63 2.91 2.66 Part Time 7.81 7.07 6.33 Volunteer Effort 0.23 0.23 0.24 The total direct cost for these employees is approximately $488,000 annually. In addition, the aquatics facility has approximately 486 hours of volunteer effort committed annually, worth approximately $11,000 in the equivalent of staff costs. Thus, for the current 10 lane 25 yard pool, it takes approximately 9 city staff FTE, plus 486 volunteer hours annually to operate the current pool facility. This number of required staff hours is likely to increase considerably with the next facility. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 128 Revenue Total revenue generated by the pool is roughly $344,183 on average annually. In FY11, revenue generated reached an all time high of $364,365. In addition to revenue from aquatics programs, rentals and lessons, the aquatics center also generates revenue from lagoon permits. Actual History 2008 2009 2010 2011 Average LAGOON PERMITS $ 24,333 $ 24,202 $ 27,200 $ 31,139 $ 26,718 MISC RECREATION $ - $ - $ - $ 1,543 $ 386 AQUATIC PROGRAMS $ 37,755 $ 39,131 $ 39,026 $ 34,596 $ 37,627 RECREATION SWIM $ 76,981 $ 80,965 $ 75,867 $ 71,423 $ 76,309 AQUATIC LESSONS $ 66,878 $ 87,993 $ 70,455 $ 93,779 $ 79,776 POOL RENTALS $ 103,184 $ 127,277 $ 131,120 $ 131,885 $ 123,367 TOTAL $ 309,131 $ 359,568 $ 343,668 $ 364,365 $ 344,183 The highest revenue generating program per participant is lessons at $4.52 per participant. This is followed closely by aquatics programs and pool rentals with recreation swim generating almost half a much as the other programs. 4 Year Revenue Per Participant by Program Average (2007-2010) Average Revenue Average Participant Revenue/ Participant AQUATIC PROGRAMS $ 37,627 8,636 $ 4.36 RECREATION SWIM $ 76,309 32,774 $ 2.33 AQUATIC LESSONS $ 79,776 17,668 $ 4.52 POOL RENTALS $ 123,367 28,635 $ 4.31 Service Statistics  As previously indicated the pool has on average attendance of 87,000 equaling a total of 35,000 lane hours annually. This attendance has been relatively consistent for the past five years, but is down slightly from the prior five years. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 129 Attendance Total Source: Carlsbad Program Summary Full Ed The aquatics staff did a good job maintaining attendance overall in 2010-11 given the poor weather. Many other area pools saw their attendance drop by 10 percent or more. Examining the various uses of the pool in terms of usage, lane hours by activity is as follows: Fiscal Year Rec & Lap Lessons Masters Misc. Programs DSD NCA Carlsbad Girls CUSD Carlsbad Boys TOTAL 2007-08 17,021 1,895 3,133 112 623 3,072 616 4,717 1,836 33,025 2008-09 18,355 1,903 3,500 290 597 2,894 664 4,622 1,976 34,802 2009-10 18,731 1,866 3,464 129 615 2,894 617 5,289 2,103 35,708 2010-11 18,848 2,252 3,368 201 559 2,978 1,087 5,556 1,419 36,268 Average 18,239 1,979 3,366 183 599 2,960 746 5,046 1,834 34,951 % of Total 52% 6% 10% 1% 2% 8% 2% 14% 5% By far, the highest use of the pool is for the Recreation and Lap swim (52%). This is followed by use by the high school (14%) and the Masters Swim program (10%). 87,145 88,837 88,027 86,739 85,500 86,000 86,500 87,000 87,500 88,000 88,500 89,000 2007-08 2008-09 2009-10 2010-11 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 130 The total pool size is 6,150 square feet; resulting in an average attendee per day to pool space ratio of approximately .04. Benchmarks & Industry Standards  Where available, the aquatics industry tends to focus their use of metrics on either: a) per participant/attendee revenue, cost and space use; or b) cost of maintenance or operations. Some specific metrics referred to in the industry include:  Attendees/space  Population/ pool (as expressed by 1 pool/10,000 of population)  Daily revenue per attendee  Maintenance cost/square feet of center  Energy cost/square feet of center These metrics are more common in other countries, especially those with more consistent and temperate climates. In the U.S., relevant metrics would need to be regionally based to make sense given the vast variances in electric rates, climate, etc. However, the USA Swimming Foundation does list metrics on their website which indicate the following: For a 50 meter pool, they estimate the following: Industry Metrics 50 Meter Pool 10 Lane/25 Yard Pool Rec & Lap 52% Lessons 6% Masters 10% Misc.  Programs 1% DSD 2% NCA 8% Carlsbad Girls 2% CUSD 14% Carlsbad Boys 5% Lane Hour Uses by Program 2007‐2011 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 131 Industry Metrics 50 Meter Pool 10 Lane/25 Yard Pool Sq Ft of Space 12,300 6,150 Operational Costs* 244,440 141,120 Rental Income 666,540 414,000 Revenue/sq ft $ 54.19 $ 67.32 Expense/sq ft $ 19.87 $ 22.95 *USA Swimming Foundation Industry standards indicate that the average population per pool is: Pool Type City of Carlsbad Median Population/Pool Outdoor- competitive (CA only)107 105,328 107,000 Outdoor – competitive (nationwide) 42,180 Outdoor – Non competitive 38,362 Source: NRPA 2010 survey Overall, the City of Carlsbad compares to available industry metrics as follows: City of Carlsbad Industry Comparison Population/Pool 105,328 42,180 More Operational Cost/Sq Ft $ 107.84 $ 22.95 More Revenue/Sq Ft $ 53.93 $ 67.32 Less Best practices relative to aquatics management include:  Optimization of pool scheduling  Minimization of chemical use  Close monitoring of water and electricity usage and costs  Limitation of pool down time for maintenance closures  Scheduling of pool hours to coincide with highest use (i.e., more staff and open hours in the summer, reductions in the winter)  Balance between open swim, group use and programming Municipal pools that have obtained self recovery status have typically moved away from the historical competitive pool only design to a more recreational and amenity filled water park model. The city would be wise to set specific metrics and performance targets for the entire aquatics program (i.e., all complexes). Comparable Analysis 107 Data taken from 2010 NRPA survey due to insufficient 2011 data BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 132 The median population per pool for Carlsbad is significantly higher than the other comparables. All comparables, with the exception of one, are close to the industry standard of 42,180 population per pool. City of Carlsbad Comparable B Comparable C Comparable D Comparable F Population 105,329 62,979 85,186 47,811 83,781 # of Pools 1 3 2 1 2 Median Population/Pool 105,328 20,993 42,593 47,811 41,891 The addition of the Alga Norte Facility will bring the city in line with industry standards. When comparing Carlsbad to other communities, the aquatics facility:  Spends at the higher end on labor cost/attendee  Spends on the higher end of total operational cost/attendee City of Carlsbad Comparable B Comparable C Comparable D Comparable F Annual Attendees 86,739 95,000 32,288 200,000 57,000 Total Direct Cost $ 663,242 $ 816,132 $ 265,733 $ 676,610 $ 164,200 Direct Labor Cost $ 487,897 $ 375,558 $ 182,635 $ 436,800 $ 143,300 Total Cost/Attendee $ 7.65 $ 8.59 $ 8.23 $ 3.38 $ 2.88 Labor Cost/Attendee $ 5.62 $ 3.95 $ 5.66 $ 2.18 $ 2.51 In comparing Carlsbad to other communities, the aquatics facility generates on the higher end of total revenue per attendee, but on the lower end when comparing net revenue per attendee. City of Carlsbad Comparable B Comparable C Comparable D Comparable F Annual Attendees 86,739 95,000 32,288 200,000 57,000 Total Revenue $ 331,684 $ 184,485 $ 125,000 $ 200,390 $ 215,900 Revenue/Attendee $ 3.82 $ 1.94 $ 3.82 $ 1.00 $ 3.79 Net Revenue/Attendee (Labor Only) $ (1.80) $ (2.01) $ (1.80) $ (1.18) $ 1.27 Also, from a comparability stand point, the City of Carlsbad has higher total revenue per square foot. City of Carlsbad Comparable B Comparable C Comparable D Comparable F Average Pool Size 6,150 8,732 23,550 12,300 9,900 13,62 Attendees 86,739 95,000 32,288 200,000 57,000 96,072 Total Revenue $ 331,684 $ 184,485 $ 125,000 $ 200,390 $ 215,900 $181,444 Revenue/Square Foot $ 53.93 $ 21.13 $ 5.31 $ 16.29 $ 21.81 $ 16.13 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 133 Possible factors impacting these figures:  Despite the smaller size of the pool, the city has significant attendance through effective scheduling.  Given the size limitations and the age of the pool, the cost to run it is higher than other newer and larger facilities. A review of a fee comparison conducted by the city in 2012 indicates that fees for both residents (R) and non-residents (NR) are lower than other surrounding communities in all categories with the exception of Masters Programs. City of Carlsbad Municipality Average Non-Profit Average Private Market Average Daily Admit (Adult) 3.00 3.17 8.67 N/A 5.92 Daily Admit - NR 4.00 4.00 N/A N/A 4.00 Yearly Pass 180.00 293.33 552.00 492.00 445.78 Yearly Pass - NR 270.00 365.00 582.00 N/A 473.50 Group Lesson/hr - R 10.00 8.92 20.50 16.31 15.24 Group Lesson/hr - NR 14.00 10.67 25.33 16.31 17.44 Private Lessons/hr 25.00 N/A N/A 40.00 40.00 Private Lesson/hr - NR 35.00 N/A N/A 40.00 40.00 Masters/Month - R 40.00 50.00 43.00 36.00 43.00 Masters/Month - NR 60.00 55.00 62.00 45.00 54.00 Rental School 8.00 10.00 22.22 N/A 16.11 Nonprofit 11.00 9.50 22.22 N/A 15.86 For profit 12.00 10.53 22.22 N/A 16.38 Commercial 12.00 13.84 22.22 N/A 18.03 Source: 2012 City of Carlsbad Fee Survey (R – Resident; NR – Non-resident) Current Outsourcing Activities  The pool currently contracts for approximately $33,000 annually in maintenance and program services as follows: BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 134 Service Annual Amount Programs/courses $ 28,000 Maintenance $ 5,345 In looking at what other entities are doing relative to outsourcing, of the four respondents, one has an agreement with the local school district for the district to provide all pool maintenance. Additionally, one of the comparables contracts out restroom cleaning. The city currently uses the Property & Equipment Management division (PEM) for weekly cleaning of the bathrooms, but relies on lifeguard staff to conduct the daily cleaning. This is an issue that should be explored as part of the PEM assessment. The amount indicated above for maintenance refers to one time specialized maintenance required for pool equipment. Similar to the city, three of the four comparables contract for specialized instruction (i.e., aerobics, diving) programming. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 135 Aquatic Services: Future State Alternatives  This analysis has identified the following in potential options and savings related to the city’s Aquatics facilities. Area & Focus Option Opportunity Amount (Annual Unless Otherwise Noted) OE Increase Fee Levels $ 34,500 OE Focus Pool Use on High Revenue Generation Activities $ 30,500 OE Centralize Registration and Marketing Not available OE Expand the Use of Consortium or Master Contract Based Purchasing for Pool Supplies Not available DO Outsource Routine Pool Maintenance $ 41,200 DO Increase Part time and/or Contractual Staff $ 0 -107,000 DO Outsource Custodial for Pool and Aquatics Park Bathrooms Include as part of PEM review Operational Efficiencies Increase Fee Levels for Aquatics Activities As stated previously, the city tends to charge less than the market average for all offerings other than Masters Lessons. Also, when comparing fee levels with the municipal areas, the city is significantly lower in terms of yearly passes, master programs and school and commercial rentals when compared to other municipalities. Given that the city provides services to tax-paying residents, it is understandable that it might feel the need to set rates below market; however, a closer look at the fee schedule indicates an opportunity to increase fees slightly for some of the higher revenue generating areas, and still be well at the lower end of market. This would allow the city to close the gap between operational expenses and revenue generated. Estimated Revenue: If the city would increase fees for yearly passes to even a comparable level with the existing municipal average rates, it could generate an additional $22,188 in revenue annually. Likewise, increasing the rates paid by schools and commercial renters of the pool could result in $12,337 of additional revenue for a conservative total revenue increase of $34,500. The table below presents a summary of this data: Current Rate Proposed Rate Current Revenue Projected Revenue Revenue Increase Assumptions 50% of total Rec/Lap Revenue Yearly Pass - R $ 180 $ 290 $ 31,875 $ 51,354 85% of rec/lap swim year Res Yearly Pass - NR $ 270 $ 400 $ 5,625 $ 8,333 $ 22,188 15% of rec/lap swim year NR BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 136 Current Rate Proposed Rate Current Revenue Projected Revenue Revenue Increase Assumptions Rental - School $ 8 $ 10 $ 61,684 $ 71,964 50% of rentals Rental - Commercial $ 12 $ 14 $ 12,337 $ 14,393 $ 12,337 10% of rentals Total Rental Fee Increase - two items $ 34,524 The city should set a policy of reviewing these fees annually or at least biannually to ensure they are recouping cost of operations and in line with market. Focus Pool Use on High Revenue Generation Activities Currently pool scheduling revolves around school use which results in the lowest net revenue per hour. Approximately six (6) hours per day are reserved for school use from September through mid-June. While the pool director and supervisor have worked diligently to effectively schedule the pool, they are somewhat limited in their ability to meet the goals of a sustainable pool given the need to give the school first priority. Fee Per Hour # of Lanes Per Participants Possible Total Facility Revenue Per Hour Cost of Direct Labor Per Hour Net Revenue Per Hour Assumptions School Rental $ 8 10 $ 80 $ 12 $ 68 1 lifeguard on duty Group Lessons – R* $ 15 10 $ 150 $ 24 $ 126 2 instructors & 10 participants per class Group Lessons – NR $ 17 10 $ 170 $ 24 $ 146 2 instructors & 10 participants per class Private Lessons $ 25 10 $ 250 $ 60 $ 190 2 students & 5 instructors per session Other Rentals $ 12 10 $ 120 $ 12 $ 108 1 lifeguard on duty *American Red Cross Standards indicate the need for 100-120 sq ft per lesson participant which equates to roughly 1 lane per student. Estimated Savings: It is understood that there is not an unlimited supply of those seeking private lessons in the Carlsbad area, however, if the pool were to increase its available private lesson pool time they would increase their net revenue per hour approximately $122 (i.e., $190 - $68). Assuming a reallocation of 5% of current pool time for the schools and use of these hours for private lesson pool time, this could result in an increase of $30,500 in net revenue annually. Current Estimated Lane Hours Proposed Hour Reallocation Annual Revenue Change School Time 5,000 $ (250) $ (17,000) Private Lessons <20 $ 250 $ 47,500 Total Revenue Impact $ 30,500 Assumes hour reallocation is in addition to current private students BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 137 Two other things that the city should consider to optimize pool resources:  Centralize Registration and Marketing and hire a dedicated group sales person for parks facility rentals.  Expand the use of Consortium or Master Contract based purchasing for Pool Maintenance Supplies and Equipment Both of these items allow the city to take advantage of the economies of scale from a larger purchasing or service delivery approach (i.e., specialized expertise and increased volume typically result in increased efficiencies). Managed Competition Candidates  No managed competition opportunities have been identified. Direct Outsourcing  Outsource Routine Pool Maintenance – Monroe Street As the city contemplates the addition of the Algae Norte Aquatic Center, it is considering the potential to outsource maintenance functions relative to that site. At the same time, the city should consider the possibility of also contracting for routine and regular maintenance of pool equipment and facilities. These functions are currently performed primarily by the Recreation Supervisor – Aquatics with assistance from the Aquatics Supervisor as needed. Estimated Reallocation: Based on conversations roughly .4 of an FTE is dedicated to maintenance activities. This equates to approximately $41,200 in salary and benefits costs related to pool maintenance activities. Other comparable municipal pools have partnership in which the schools actually run their pools. Additionally, there are several vendors out there that provide routine and preventative pool maintenance for municipalities including pool specialty firms as well as large national maintenance firms. Firms in the San Diego area include: American Pool Enterprises, Knorr Systems, as well as independent maintenance contractors. Also many engineering firms are getting into maintenance activities with some even specializing in aquatics operations (Weston & Sampson Environmental & Infrastructure consultants). Rate structures vary depending on pool size, geographic location, pool age and condition, and frequency of activities. In general, these companies have proven the ability to save clients’ money by ensuring appropriate use of chemicals which can lengthen the life of equipment and performance of regular preventative maintenance to keep facilities and equipment running smoothly and slowing the depreciation of equipment. Increase Part time and/or Contracted Staff At its current pool, the city has 2.66 FTE dedicated to the pool. When comparing this to other comparable pool facilities, the city has a higher level of full time staff than other entities; however the revenue generated per staff person is on par with the average of the comparables. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 138 City of Carlsbad Comparable B Comparable C Comparable D Comparable F Average Full Time Staff 2.66 3 0 2 1 Attendees 86,739 95,000 32,288 200,000 57,000 Revenue $ 331,684 $ 184,485 $ 125,000 $ 200,390 $ 215,900 Attendee/Staff FTE 32,609 31,667 - 100,000 57,000 62,889 Revenue/Staff FTE $124,693 $ 61,495 - $ 100,195 $ 215,900 $ 125,863 As discussed earlier, in comparing Cost per Attendee, the city is also on the high end when looking at total labor cost only. Potential Savings (Deferred): Assuming that the city wishes to get closer to the level of full time staffing of other entities, it would need to reduce staff by about 1 FTE. A level of 1.66 FTE results in an attendee/staff FTE level of 52,252 and a revenue/staff FTE level of $199,810. While this could result in approximately $107,000 in annual savings it would also eliminate a very important backup at the management level, would require the hire of contracted routine pool maintenance staff and would place more of a burden on the remaining staff. Another option might be to replace the existing full time staff with part time staff. Given the significant increase to the city’s aquatics facility size and type of potential programming, it will be necessary to increase the level of available staff hours to operate the pool considerably once Alga Norte is complete. In looking at other aquatics facilities, there appears to be a variety of ways in which programs (i.e., lessons, programs, etc) are staffed. While some choose to manage all instruction in- house, the majority of municipal facilities nationwide including the comparables tend to use a combination of both in-house and contracted staff. However, the method of contracting staff varies considerably and includes:  Contracts with individuals  Contracts/agreements with non-profits  Contracts with for-profit swim schools Other comparables in the area are primarily teaming with non-profits for programming. They also are partnering closely with school districts for both instruction and facility rental. On a national level, municipalities are exploring partnerships with both private and nonprofit entities and are finding mixed success. The city will need to first and foremost be concerned with their ability to manage the quality of programming or instruction offered. If a framework can be established to effectively oversee these contracts, it may be a way to significantly reduce costs given the hourly rate ($12 on average) for most lifeguards. However, if the city continues to modify the hourly rate paid to part time staff and is confident that it has the capacity and labor pool required, contract staff may not be necessary or advisable. Custodial for Pool Bathrooms The city currently utilizes the Property & Equipment Management (PEM) division to conduct cleaning on pool restroom facilities once per week. This function should be considered in the future PEM assessment. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 139 Specifically, that assessment should explore the question of whether or not some of these custodial activities might be candidates for managed competition or outsourcing.   BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 140 Historical Parks Services: Current State Analysis  Description of Activities  The City of Carlsbad has three historical park locations, the Carrillo Ranch, historic buildings in Magee Park and the adobe ruins at Stagecoach Park. Each of these locations is included in the Historical Parks Services line of business. However, the staff time and resources under this line of business are currently exclusively dedicated to Carrillo Ranch. The other locations are not operated by the Parks & Recreation Department but are included in the line of business description only for planning purposes. Some operational similarities exist between these locations, so future partnerships may be possible. The Carrillo Ranch has historical significance for three primary reasons: the historic structures (including handmade adobe), the unique and heirloom botanical specimens, and perhaps most recognizably, the ownership history. The former owner and namesake of the ranch, Leo Carrillo, was a famous actor, conservationist, and figure of significance in Hispanic American history. He expanded original adobe structures on the land he purchased in 1937 to recreate a working Old California-style ranchero. Since the city acquired a portion of the property in 1977, it has restored and regained pieces to create a 27 acre historic park site for both education and recreational purposes. In addition to opening and closing the site, overseeing park operations, and providing general visitor services, the Historical Parks Services line of business includes museum services (cataloging, storage, restoration, exhibit creation), tours (school groups, walk on groups, scheduled weekend tours), and coordinating the School Art Program. Activities that take place at the Ranch that are excluded from this line of business are rental services, special events, grounds maintenance and facility maintenance; these activities are covered under the respective lines of business. In addition to working with other operational groups within the Parks & Recreation Department, such as parks maintenance, and other Departments in the city, such as Cultural Arts and Library, the staff coordinates with external groups, most notably, the Friends of Carrillo Ranch, a nonprofit group in the area. This group assists with volunteer time, financial support and fundraising. Cost of Service  The table below shows the costs and revenues associated with the Historical Parks line of business over the past three years. Direct Costs FY09 Actuals FY10 Actuals FY11 Actuals Personnel $ 141,633 $ 157,443 $ 173,807 Maintenance and Operations (Direct Costs) $ 80,359 $ 82,332 $ 36,439 Capital Outlay $ 998 $ 1,065 $ 1,518 Subtotal Direct Costs $ 222,990 $ 240,840 $ 211,763 Indirect Costs FY09 Actuals FY10 Actuals FY11 Actuals Organization wide centralized services $ 45,742 $ 45,742 $ 45,742 IT Overhead $ 27,190 $ 10,302 $ 11,114 Fleet Overhead $ 0 $ 0 $ 0 Other Overhead $ 1,247 $ 4,069 $ 3,102 Subtotal Indirect Costs $ 74,180 $ 60,113 $ 59,958 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 141 Total Direct & Indirect Costs - Internal Costing $ 297,169 $ 300,953 $ 271,721 Value of Volunteer Services FY09 Actuals FY10 Actuals FY11 Actuals Volunteer Services $ 58,557 $ 55,896 $ 86,654 Revenue* FY09 Actuals FY10 Actuals FY11 Actuals Revenue $ 18,751 $ 19,583 $ 33,438 *Rental revenue is captured in the Rental Services line of business. The table above also shows a noticeable drop in maintenance and operations costs and a marked increase in personnel costs in FY11. In this year Carrillo Ranch transitioned a contracted curator position into a part-time curator position. This explains the reduction in maintenance and operations expenditures and the increase in personnel expenditures in the table above. The capital outlay for this line of business has increased a small amount each year, only a few hundred dollars. This is insignificant, but likely related to a planned expansion in programming. All major capital expenditures are part of the capital projects budget and separate from the Historic Parks line of business. This includes the major renovation that has occurred at the Ranch. As you can see in the following chart, full time effort remained constant over the past three years, but the FTE of part time employee effort decreased each year. The hours of volunteer effort have shown minor variability from year to year, adding to an average total effort in hours equating to roughly 4 FTE each year in the Historical Parks line of business. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 142 2009 2010 2011 Total Paid Effort 2.53 2.44 2.10 Full Time 0.90 0.90 0.90 Part Time 1.63 1.54 1.20 Volunteer Effort 1.24 1.20 1.85 Service Statistics  The collection of original furnishings and Leo Carrillo memorabilia totals over 1,200 pieces. These pieces are catalogued, restored, and otherwise curated by a part time Archivist hired by the Department, budgeted at 800 hours per year. The Archivist also creates interpretive exhibits and signage. The Ranch attempts to add one new exhibit to the Ranch per year. The Ranch is open to the public 36 hours per week. Walk on tours are available during open hours, with guided tours on the weekend. Guided tours may also be scheduled in advance. The Department does not consistently track the number of visitors or tours per year, and neither visits nor tours are documented in the Class system. The Department estimates that approximately 45,000 visits and 3,300 guided tours take place per year. The educational tours for school groups are one type of tour that is more consistently documented. Local schools are encouraged to participate in the School Art Program, a half day of activities at the Ranch. Between two and three classrooms per month participate in this program, 31 classrooms in total last year. An educational tour is included as part of the School Art Program. For logistical ease, this results in roughly 40 educational tours per year. All but two or three per year are Carlsbad schools. In support of the School Art Program, the Department creates and distributes brochures, books reservations, and prepares logistics for the visits. Instruction for the art lesson included in the program is funded by the Friends of Carrillo Ranch. The Ranch does not charge for the School Art program, nor does it charge admission to the premise or buildings. There is no fee for scheduled tours or self-guided tours. There are, however, boxes for donations located at multiple points in the park. Benchmarks & Industry Standards  Managing a historical landmark is a unique operational component within the typical Parks & Recreation Department. According to a recent national survey,108 only 44.2% of Parks & Recreation departments manage historic properties. Of those managing historic properties, even fewer directly operate these properties and the programming provided. Historical societies, nonprofit groups, and municipal arts or library departments are examples of other entities often tasked with the operations of publicly owned historical sites. While the Ranch is technically a park facility, its unique historic nature and collection of exhibits make it more comparable in many ways to a house museum than a traditional park facility. With that in mind, we looked at a national registry of historic house museums, which listed over 80 such facilities in California.109 Of the 47 house museums which listed their admission price, the prices ranged from free to 108 National Recreation and Parks Association. Parks & Recreation National Database Report. 2012. 109 Victorian Preservation Association website. www.vpa.org/museumsca. Accessed May 15, 2012. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 143 $25 for adult admission. Almost all of the museums offered discounts for students and seniors. The median admission price was $5. The Ranch does not currently charge for admission to the various facilities with exhibits on the property. The Department staff have done periodic comparisons of the Ranch to similar historic venues in the area, primarily focused on comparing facility rental rates for events. We looked at these same sites in terms of hours of public access. These sites are open to the public an average of 24 hours per week. Carrillo Ranch is open to the public 36 hours per week. Current Outsourcing Activities  None. The caretaker contract for Carrillo Ranch is allocated under the Custodial Services line of business. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 144 Historical Parks Services: Future State Alternatives  Area & Focus Option Opportunity Amount (Annual Unless Otherwise Noted) OE Enhance coordination with Friends of Carrillo Ranch No tangible savings OE Coordinate grant writing between city departments No tangible savings DO Outsource educational programming, visitor services and tours $ 21,900 - $60,100 Operational Efficiencies  Coordination with Friends of Carrillo Ranch One operational efficiency that is difficult to quantify concerns the current governance and interagency coordination dynamics. As mentioned previously, the Ranch has a special relationship with a nonprofit group called the Friends of Carrillo Ranch. This entity spearheads fundraising efforts and provides part of the volunteer effort that supplements the operations of the Ranch. While this support is very meaningful to the Department, the strategic direction and daily operations can be unintentionally impacted by the group. This theme was raised at numerous points in our fieldwork. For example, if an asset or a program is added by the group, the Department may need to expend additional resources to sustain the item or initiative. The Department should recognize the influence of this group on the direction and goals of the Ranch and carefully consider operational impacts. The section on Direct Outsourcing discusses this relationship further. Grant Writing In addition to coordination with the Friends of Carrillo Ranch, the Department should explore opportunities for coordination with other city departments. Some activities in the Historical Parks line of business overlap with the activities of other departments. For example, grant writing efforts are not currently coordinated. That means the Cultural Arts Department could be competing for the same historic site grant as the Parks & Recreation Department. Managed Competition Candidates  Based on our review of current operations, there does not appear to be any strong candidates for managed competition. Direct Outsourcing  Outsource Visitor Services, Educational Programming & Tours The Historical Parks line of business seems to have two possible opportunities for outsourcing of services. The first outsourcing opportunity is related to visitor services, educational programming, and tours. The Friends of Carrillo Ranch may be a logical partner to take on these services. Alternatively, the Carlsbad Historical Society gives tours of the historic buildings in Magee Park. This group could also be contacted as a potential partner. Estimated Savings: If either group entirely assumed these functions, the gross savings to the Department would range between $45,832 and $84,056 per year, depending on the degree to which the Department BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 145 relinquished ownership. Based on the Department’s estimates of FY 11 costs related to Carrillo Ranch programs, $45,832 would represent eliminating only the direct personnel expenditures related to the programs, while the $84,056 would represent elimination of both direct and indirect costs attributed to the programs. Assuming that 100% of donations for these programs, averaging $23,924 annually over the past three years, would be directed to the new program operator, the net savings would range between $21,908 and $60,132 per year. The second outsourcing opportunity crosses lines of business. The Rental Services line of business is meant to include rental coordination at Carrillo Ranch. However, the nature of rental coordination for the Ranch is more involved than the rental coordination efforts for most other park facilities. Most notably, there is a high level of customized support for larger events, such as weddings. With this in mind, separating the rental services provided at the Ranch from the rest of the Department’s rental services and outsourcing it to an event management vendor seems like a viable option. This opportunity is explored in more detail in the Rental Services analysis.   BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 146 Recreation Services: Current State Analysis  Description of Activities  The Recreation Services line of business is one of the more complex lines of business in terms of activities. The staff in this area coordinate a variety of programming including camps, classes, sports leagues, preschool, and special events. Many of these services are provided by part time and contracted individuals. The extreme variety of recreation offerings and fees might seem daunting, but the registration and revenue tracking is simplified by the use of the CLASS program. This allows for online self service for participants and reporting by the Department on a variety of variables. This application allows city staff to schedule classes, manage enrollment, collect fees and conduct planning activities. In the area of camps, the Department provides three primary categories: traditional day camps, sports camps, and specialty enrichment camps. The traditional day camps are offered in the spring and summer during the breaks in the Carlsbad Unified School District schedule in half and full day increments. These camps are run by Department staff and grouped by age level, from 3 years old to 15 years old. Traditional camps provide a mix of activities such as music, water play, arts and crafts, teambuilding activities and sports. Sports camps and specialty enrichment camps also run during the spring and summer, but these camps are facilitated by independent instructors, rather than Department staff, and focus on a specific interest like skateboarding or cooking. Department staff provide program administration such as select offerings, negotiate contract with instructors, schedule spaces and resources, and provide customer service. Classes are similar to sports camps and specialty enrichment camps, in that they are taught by outside instructors and Department staff provide program administration. Classes are shorter in duration and have a much larger variety of offerings. Department staff continually monitor the success of various classes in terms of participation and survey feedback to ensure the best use of city facilities and most valued offerings for the community. The preschool offerings by the Department are somewhat unique in that they require parent participation in both supervision and snacks. While parent participation may reduce the number of teachers aides hired this is somewhat offset by the additional administrative work, such as documentation for parents (including fingerprint records). These programs are not full time childcare, but rather a learning and socialization opportunity for children and parents alike. While camps, classes and preschool have registration and revenue generation structures that are somewhat similar, the coordination of special events is a unique activity in the Recreation Services line of business. The Department coordinates eight to ten special events per year, the largest of which is the annual triathlon. Volunteers are highly utilized for events, but Department staff plan and coordinate all major operational logistics. Cost of Service  The following table provides costs and revenues associated with the Recreation Services line of business over the past three years. Direct Costs FY09 Actuals FY10 Actuals FY11 Actuals Personnel $ 1,400,818 $ 1,485,421 $ 1,436,869 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 147 Direct Costs FY09 Actuals FY10 Actuals FY11 Actuals Maintenance and Operations (Direct Costs) $ 1,069,496 $ 953,859 $ 837,115 Capital Outlay $ 33,707 $ 3,144 $ 4,271 Subtotal Direct Costs $ 2,504,021 $ 2,442,424 $ 2,278,254 Indirect Costs FY09 Actuals FY10 Actuals FY11 Actuals Organization wide centralized services $ 531,915 $ 531,915 $ 531,915 IT Overhead $ 108,760 $ 125,436 $ 163,217 Fleet Overhead $ 1,566 $ 10,308 $ 7,977 Other Overhead $ 18,912 $ 50,286 $ 47,851 Subtotal Indirect Costs $ 661,153 $ 717,945 $ 750,960 Total Direct & Indirect Costs $ 3,165,175 $ 3,160,369 $ 3,029,214 Value of Volunteer Services FY09 Actuals FY10 Actuals FY11 Actuals Volunteer Services $ 108,908 $ 142,558 $ 140,684 Revenue** FY09 Actuals FY10 Actuals FY11 Actuals Revenue (all sources) $ 1,606,015 $ 1,572,750 $ 1,516,435 **Revenue for recreation services includes A/R write-offs (monies that have been on individual accounts that expired after a year). Also includes outside agencies reimbursing the city for expenses related to special events and are counted as offsets to expenditures. As you can see in the table above, direct costs decreased each year and indirect costs increased each year with a net effect of a slight decrease in total costs each year. The revenue also decreased each year, pointing to declining participation and shifts in participation toward less expensive and therefore less profitable offerings. Contributing factors in the participation shifts and reductions include economic downturn, changes in staffing and loss of a few long-term instructors with faithful participant followings. The classes that have fared best in these conditions have been the more affordable classes and the classes that are unique in nature (not also offered by other providers in the area). Sports participation has also continued to do well, with waitlists for many offerings. The Department is able to review enrollment figures on a daily basis through the Class system, but at a minimum these figures are reviewed weekly for payments to instructors. Monthly reports are also generated to compare Class revenue to the financial system, though the consistent use of these reports for performance monitoring is unknown. Department staff meet regularly with instructors to insure compliance with contract expectations. At a minimum, annual meetings are held with enrichment instructors. A handbook highlighting expectations is used to guide the conversation. When performance is reviewed, class offerings are judged on survey results and enrollment figures. Minimum enrollment numbers are set based on size of the instruction space and maximum student to teacher ratios set in the instructor agreement. Each agreement is different. Classes are replaced if enrollment consistently under performs and viable alternative offerings exist to fill the space. New classes are given a one year grace period to prove successful. Managers network with similar organizations, consult existing instructors and research online resources to identify new class ideas and instructors. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 148 Since instructor payment is set as a share of participant fees, the lower revenue is also associated with lower costs for the payment of contracted instructors. In addition to this unplanned cost reduction, the Department deliberately reduced M&O expenditures each year as part of budget reduction efforts. The variation in personnel expenditures over the past three years is curious given the reduction in hours of effort in each year. As you can see in the following chart, the overall FTE hours decreased each year. The misalignment between hours of effort and personnel expenditures is related to higher leave usage in 2010 and payouts upon turnover of full time staff. 2009 2010 2011 Total Paid Effort 38.47 36.01 35.63 Full Time 8.63 8.83 8.96 Part Time 29.85 27.18 26.67 Volunteer Effort 2.30 3.06 3.00 Service Statistics  For activities in this line of business, service statistics are typically related to participation figures. The Department uses the CLASS system for tracking registrations. Based on the FY11 net registrations from the CLASS system (refunds and cancelations excluded), approximately 245 classes, camps or sports leagues were offered with a total participation of approximately 15,000 combined. The table below shows the summary: Participants Offerings Camps 2,935 91 Classes 9,399 126 Sports Leagues 2,642 28 TOTAL 14,976 245 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 149 The Department reports that approximately 35 percent of these registrations are currently made online, while the remaining 65 percent are made with the assistance of Department staff. Staff currently assist registrants by phone and in person at community center locations. Given the breadth of offerings for camps, sports and other programming, the following tables provide high-level statistics within the categories of camps, classes and sports leagues. All figures are annual and are based on FY11, where possible. Each table also includes a low and high figure to account for class cancelations, transfers in and out, and other such variability. The table below summarizes camp programs. In the CLASS system, there are categories for camps, youth day camps, and enrichment camps. As these categories are used inconsistently, some of the data below is from the Department’s recently conducted cost recovery analysis. Camp Programs Annual Statistic Low High Traditional Summer Camps Ages 6-11 Participation 650 675 Traditional Summer Camps Ages 3-5 Participation 150 170 Traditional Summer Camps Ages 11-13 Participation 130 150 Traditional Summer Camps Ages 13-15 Participation 90 110 Traditional Summer Camps Weeks of Summer Camp 10 11 Traditional Spring Camps Ages 6-13 Participation 20 40 Traditional Spring Camps Ages 3-5 Participation 10 20 Traditional Spring Camps Weeks of Spring Camp 1 1 Sports Camps Multi-Sport Participation 350 450 Sports Camps Soccer Participation 150 200 Sports Camps Gymnastics Participation 130 150 Sports Camps Basketball Participation 100 150 Sports Camps Tennis Participation 100 150 Sports Camps Golf Participation 50 70 Sports Camps # of Youth Sports Camps 20 30 Sports Camps Dodge ball Participation 20 40 Sports Camps Volleyball Participation 20 40 Sports Camps Flag Football Participation 15 25 Sports Camps Lacrosse Participation 3 5 Specialty Camps Total Participation 400 420 Specialty Camps # of Specialty Camps 15 20 Unfortunately, the categorization of programs within the CLASS system is not consistent. For example, there is a category for dance, but there are dance classes listed in at least three places: dance, early childhood, and enrichment class categories. The same is the case for the classification of fitness and martial arts classes in the system. This should be kept in mind when considering the data below: Classes Annual Statistic Low High Dance Dance Participation 1,700 1,800 Early Childhood Pee Wee Participation 1,500 1,600 Enrichment Mix of Dance, Sports, Etc. 1,300 1,400 Fitness Fitness Class Participation 1,650 1,750 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 150 Classes Annual Statistic Low High Teens LITE Program Participation 30 40 Martial Arts Martial Arts Participation 850 900 Preschool Preschool/Toddler Participation 2,000 2,100 Specialty Participation in Painting, etc. 150 200 The various offerings within youth and adult sports appear to be more straightforward for tracking purposes. The annual statistics are below. Sports Leagues Annual Statistic Low High Youth Sports Tennis Participation 1,000 1,500 Youth Sports Basketball Participation 450 500 Youth Sports Gymnastics Participation 325 350 Youth Sports Soccer Participation 30 40 Adult Sports Volleyball Participation 400 450 Adult Sports Tennis Participation 175 225 Adult Sports Softball Participation 100 150 Adult Sports Basketball Participation 30 35 Adult Sports Softball Participation 25 30 Adult Sports Soccer Participation 20 40 Adult Sports Golf Participation 10 15 In addition to the annual statistics in the three tables above, there are a few other items of note. The Department coordinates eight to ten special events per year. These typically include the following: Spring EGGstravaganza, Triathlon, Dinner & a Movie, Holiday at the Rancho, Teen Scene, Snores & S'mores Campout, and Wild West Fest. Attendance at these events is not routinely tracked. The exact participation in a few other programming areas is also untracked. One example is the Teens in Action program, which utilizes Department staff to provide lunch hour activities twice per month at each of the local middle schools. One middle school has requested weekly Teens in Action programming and makes a contribution to the Department for this additional level of service. For the areas where participation is currently untracked, the Department should implement periodic head counts by the program staff. Counts collected should be entered into the Class system on a monthly basis to improve reporting and planning capabilities. The city currently uses a customer satisfaction rating to measure residents’ satisfaction level with recreational program offerings. On average, 89 % of residents give a very or somewhat satisfied response. This number is very close to the city’s customer satisfaction rating goal of 90%. The city also evaluates youth and adult sports programs by using a Teach Respect Unity and Sportsmanship through Teamwork (T.R.U.S.T.) performance measurement. Exceeding the city’s target goal of 90% or higher rating of very good or excellent, the adult and youth sports programs achieved a 92 % and 98% rating respectively in FY11.110 110 City of Carlsbad State of Effectiveness Report BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 151 Benchmarks & Industry Standards  One aspect of the Recreation Services line of business that is well suited for industry comparison is the fee schedule for programming. Specific interest was expressed during our field work to review the athletic fees. The table below provides a sampling of common athletic programs and compares them to both the city’s regional peers and national figures.111 Fee Per Season/Event City of Carlsbad A B C D F Average (A-F) NRPA National Median Adult Basketball (per team) Resident $315 $353 N/A $685 N/A $325 $419 $300 Non-Resident $365 $403 N/A $735 N/A $390 $473 $400 Adult Softball (per team) Resident $410 $483 N/A $635 $595 $350 $495 $375 Non-Resident $460 $508 N/A $685 $595 $420 $534 $460 Youth Basketball Resident $95 $83 $85 $75 $90 $115 $90 $30 Non-Resident $105 $93 $85 $80 $90 $115 $95 $45 Pee Wee Soccer Resident $70 $73 $95 $70 $75 $77 $30 Non-Resident $80 $83 $95 $70 $75 $81 $45 Examples of Other Charges/ Add-ons Late Registration Adult N/A N/A $30 N/A N/A N/A N/A Late Registration Youth N/A N/A $5 $100 N/A N/A N/A Officials fee/game Adult $21-$36 N/A $15 N/A N/A $24- $37 N/A N/A Early bird N/A N/A N/A N/A $15 N/A N/A 111 National Recreation and Park Association. Parks & Recreation Fees and Charges Survey Report: 2010. Opportunity • We recommend that the Department bolster efforts to track particpation in currently untracked programs. Periodic head counts entered into the CLASS system would improve reporting and planning capabilities. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 152 Fee Per Season/Event City of Carlsbad A B C D F Average (A-F) NRPA National Median discount As you can see above, the city is generally conservative with athletic fees in comparison to the average of its regional peers. In fact it is lower than the average of comparable municipalities in every category but youth basketball. In this category its rates are the second highest in the group. In most categories, Entity C is highest in fees, but even if this entity is excluded from the comparison, the City of Carlsbad is still lower on each fee in the sample except youth basketball. In our survey of comparable municipalities, we also gathered data to calculate the number of residents served by each recreation or community center on average. When dividing the population by the number of community centers, the comparable municipalities averaged 36,770 residents per community center. In comparison, the City of Carlsbad averaged 21,066 residents per community center. That would indicate that the City of Carlsbad offers a higher than average number of community or recreation centers when compared to area peers. Current Outsourcing Activities  A large number of instructional contracts for classes are managed under the Recreation Services line of business. The contract terms are specific to each class and instructor, but they generally include minimum and maximum number of participants for a given activity, the duration and frequency of class and a recommended fee. The instructors generally receive 65% of the fee revenue generated from class participants. The following table provides an overview of the current contracts for the Recreation Services line of business. Company Description FY11 Actuals Allocated to Recreation Services Contract - Enrichment Classes (Approximately 30 individual instructor contracts, 4 vendor contracts) Enrichment programming $ 451,758 Contract Classes - Youth Sports (7 individual instructor contracts, 2 vendor contracts) Youth sports instruction $ 54,182 Though the Department manages large number of contracts in this area, the individual contracts are basically formulaic and brief. Also, many of the same contractors are hired from year to year. These factors together may explain why the Department estimated only 0.84 FTE per year of contract management effort to oversee nearly 50 contracts per year in the Recreational Services line of business.     BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 153 Recreation Services: Future State Alternatives  Area & Focus Option Opportunity Amount (Annual Unless Otherwise Noted) OE Promote Online Registrations $43,800 - $112,400 first yr $46,800-$140,400 annually OE Reduce percent of fee revenue provided to instructors from 65% to 60% $25,000 DO Outsource traditional summer and spring camp programs $10,500 - $21,500 DO Outsource coordination of classes and sports programming TBD Operational Efficiencies  Promote Online Registrations As noted in the Service Statistics section, approximately 35% of participants currently enroll in programming through the Department website. Increasing self-service enrollment could reduce the hours of staff effort currently devoted to this support. The city already provides computers for public access in multiple locations; however, the Department could install three additional kiosks at the highest use areas to insure sufficient accessibility. A one-time marketing campaign to encourage online registration is also recommended. With these one-time investments, increasing online enrollment from 35% to 80% is feasible, though increasing online enrollment from 35% to 50% is likely in the short term. We’ve called increasing online enrollment to 80%, Scenario 1. This would represent a 45% reduction in staff time related to registration support. Increasing online enrollment to 50% is Scenario 2, representing a 15% reduction in staff time. Both scenarios are shown in tables below. Estimated Savings: Currently, the recreation front desk and office aid staff spend 50% of their hours assisting with registration. Using the FY11 payroll data for these individuals, this equates to $59,861 in part-time personnel expenditures and $80,563 in full time personnel expenditures, for a total of $140,425 per year. Based on this data, the table below estimates the net financial impact of changes to increase online registrations related to Scenario 1. Scenario 1: 80% Online Enrollment Item Amount Note Addition of 3 kiosks at $1,000 each $ (3,000) one time cost One-time marketing campaign $ (25,000) one time cost Savings from reduced staffing $ 140,425 annual savings Net Savings $ 112,425 In Scenario 2, a more modest marketing campaign is used, and only 50% online enrollment is achieved. As you can see below, increasing self-service from 35% to 50% yields an estimated $38,808 in net savings, but further increasing self-service to 80%, as shown above, yields nearly $80,000 more. Scenario 2: 50% Online Enrollment BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 154 Item Amount Note Addition of 3 kiosks at $1,000 each $ (3,000) one time cost Savings from reduced staffing $ 46,808 annual savings Net Savings $ 43,808 Reduce Fee Revenue Paid to Instructors Estimated Revenue: The City of Carlsbad currently provides 65% of fee revenue to instructors. Given that roughly $500,000 per year is currently paid to instructors, a 5% adjustment to the revenue sharing split, providing instructors with 60% of the revenue generated, would allow the Department to retain approximately $25,000 per year in additional revenue without a reduction in class offerings or participation levels. There is a risk that current instructors may choose to discontinue providing services over a change in compensation from 65% of revenue to 60% of revenue. Instructor turnover could represent a reduced level of service in the public perception. The revenue sharing agreement is different in the aquatics line of business, as low as 50% of revenue goes to instructors. It could be argued that this variation in revenue sharing has not seemed to impact quality of instructors or the public perception thereof. Direct Outsourcing  Outsourcing of Select Camps/Classes While the Department currently contracts with many direct service providers such as class instructors and sports officials, there are additional opportunities for direct outsourcing. As mentioned earlier in this section, the traditional camps are staffed by Department personnel. As shown in the table below, each traditional camp offered is operating at a loss. The total unrecovered cost to the city each year is roughly $42,000. Traditional Camp Gross Revenue Annual Costs Net Revenue Personnel M&O Facility Overhead Pee Wee Summer $ 12,712 $ 13,087 $ 6,500 $ 91 $ 2,400 $ (9,366) Pee Wee Spring $ 1,080 $ 1,814 $ 636 $ 3,443 $ 1,775 $ (6,589) Kidz Summer $ 83,312 $ 60,147 $ 18,965 $ 1,970 $ 6,095 $ (3,865) Kidz Spring $ 6,880 $ 4,669 $ 3,813 $ 9 $ 1,819 $ (3,430) Explorer Summer & CIT $ 32,985 $ 33,020 $ 14,196 $ 46 $ 4,418 $ (18,695) Total $ 136,969 $ 112,737 $ 44,110 $ 5,560 $ 16,507 $ (41,945) There are a variety of potential external providers for this service, including local not-for-profit groups and private companies. With this in mind, two scenarios are presented below. In Scenario 1, an external provider would operate these traditional camp programs with their own staff and materials, utilizing the city’s facilities and retaining all fee revenue generated with no other costs to the city. Scenario 1 would cost the city about $31,500, as shown below. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 155 Scenario 1: City Covers All Overhead and Facility Costs Direct Costs Subtotal Direct Costs (Net: vendor would incur all direct costs but retain all revenue generated) $ 0 Indirect Costs Ongoing contract management tasks (0.1 FTE of effort) $ 9,423 Other ongoing overhead (facility + other overhead) $ 22,067 Subtotal Indirect Costs $ 31,490 Total Direct & Indirect Costs –Vendor Option $ 31,490 In Scenario 2, the external partner would again operate the programs with their own staff and materials, using some of the city’s facilities, but would also provide some of the facility space and some of the overhead activities. The figures below assume that contract management effort would be the same as the first, but overhead costs are reduced by half. This assumption is based on current practice in similar partnerships. In some partnerships, the municipality receives a share of participation fees in lieu of a rent payment each month. In other partnerships, after a given trial period, any revenue that exceeds program expenditures is split between the vendor and the municipality. Scenario 2: City Covers Half of Overhead and Facility Costs Direct Costs Subtotal Direct Costs $ 0 Indirect Costs Ongoing contract management tasks $ 9,423 Other ongoing overhead (half of facility & other overhead) $ 11,034 Subtotal Indirect Costs $ 20,457 Total Direct & Indirect Costs –Vendor Option $ 20,457 Estimated Savings: Scenario 2 would cost the city about $20,457 per year. The two scenarios above represent a range of potential savings to the Department between $10,455 and $21,488 annually over the current net cost of $41,945 per year, as shown in the following table. Cost Comparison Current Internal Cost (Net) $ 41,945 External Option $ 20,457 - $31,490 Potential Savings $ 10,455 - $21,488 Outsource Program Management of Classes and Sports Programming There are opportunities to contract for program management of all classes and sports programming. The area has strong vendor candidates for outsourcing of both classes and sports programming. In terms of a BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 156 single vendor for all of these services, the most viable candidates are experienced not-for-profit groups. If classes and sports programming are contracted separately, there are some for-profit companies that could provide sports programming alone. The revenue sharing possibility may be higher with the private for-profit groups, but increasing the number of separate contracts could increase the hours of contract management effort required by city staff. As an example, the City of Avondale, Arizona contracts with a private company for operation of all sports programming at a facility owned by the city. The contractor provides all scheduling and registration, building upkeep, and program management services, then reports on a regular basis to the city. The contractor collects fee revenue, but returns revenue to the city at the rate of 15% of all revenue over $1.2 million, 25% of all revenue over $1.5 million and 35% for all revenue over $1.8 million. This yields estimated revenue of $300,000 per year to the city. In either case, a partnership with a not-for-profit or a partnership with a private company, cost savings would depend on the terms of the arrangement. As stated in the discussion of managed competition options for camps, direct operational costs are typically assumed by the vendor, but in turn, the vendor retains all fee revenue. Initial conversations with vendors in this market have indicated that not only could services be provided at no additional direct cost to the Department, but also that future revenue sharing is a possibility. Often revenue sharing does not begin until after an adjustment period of three years. An example of an item impacting costs that would vary between vendors is facility maintenance and utilities. In most successful partnership examples, the municipality retains ownership of facilities, but the upkeep can be performed by either party. Facility scheduling is another element that can vary from agreement to agreement. In comparing vendor offers which include such services against offers which exclude these services, the city should consider current internal costs. Estimated Savings: To get a sense of potential savings related to scheduling, for example, Department staff currently spend 2,327 hours per year looking for available time and coordinating time among staff for programs as well as entering the information into CLASS. This time is valued at $82,157 per year. A contract package which did not include scheduling services would need to be at least $82,157 cheaper than a contract package which did include scheduling service. In terms of costs to residents, the table below provides a fee comparison of the Departments current rates and those of two potential area vendors. Since camp programs can vary greatly by length, the costs were normalized into an hourly rate for ease of comparison. Carlsbad figures represent the most popular programs within each area. Area Measure City of Carlsbad Vendor A Vendor B Sports Camps Cost per Hour $ 7.45 $ 5.43 $ 5.51 Traditional Summer Camp Cost per Hour $ 3.29 $ 4.60 $ 4.89 Specialty Camp Cost per Hour $ 7.95 $ 5.43 $ 6.55 Youth Sports per Participant Cost/Season (8-12 games) $ 105.00 $ 130.00 $ 92.00 Adult Sports per Team (5) Cost/Season (8-12 games) $ 350.00 $ 425.00 $ 520.00 Preschool Cost per Hour $ 22.50 $ 14.00 $ 32.00 As shown in the table above, the city’s residents currently pay more for sports camps and specialty camps per hour than the rates charged by vendors, however they pay less for traditional camps by the hour than those offered by vendors. For youth sports, adult sports and preschool programming, the current rates charged by the city fall in between the rates charged by the vendors for similar services. While the details of the offerings (staff to participant ratio, materials costs, etc.) may vary somewhat, the comparison demonstrates the possibility for lower costs to resident participants if the city were to negotiate service delivery by a vendor.   BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 157 Rental Services: Current State Analysis  Description of Activities  The Department offers over 100 spaces, such as meeting rooms and athletic fields for rent. The Rental Services line of business is responsible for the coordination and support of all related rental activities. The line of business includes rentals for the Carrillo Ranch grounds and facilities but does not include rental of the Aquatic Center. Other city facilities outside of the Department are also excluded from this line of business. For example, the library and theater operate their own rental properties. As mentioned in the Recreation Services line of business analysis, the Department uses CLASS software for registrations and revenue tracking. Since rentals are a type of reservation, all rentals, with the exception of community garden rentals, are also entered and tracked in the CLASS System. It could be argued, however that more customer support and paperwork tends to be associated with rentals than with program registrations. Applicants can check availability of spaces online and download forms, such as the Parks & Facility Use Application. If an applicant is planning for more than 50 people to attend an event related to the rental, then the renter must complete additional forms. These applicants are assisted by special events staff, while other applicants are typically assisted by staff specific to the rental facility of interest. Personnel supporting the Rental Services line of business are not centrally organized or trained. In addition to processing the rental applications, Department personnel provide assistance to applicants with liability issues and permitting details. The Department has a tier system of applicant classification. The type of applicant determines not only the fee charged for the rental, but also the priority given to the applicant in competitive rental situations. Most indoor spaces can be reserved up to one year in advance and most outdoor spaces can be reserved six months out. Athletic fields are booked six months at a time in cooperative discussion with roughly 10 not-for-profit groups and internal partners representing their programmatic needs such as special events and camps. Cost of Service  The following table summarizes the costs and revenues for the Rental Services line of business over the past three years. Both the direct costs and the indirect costs have gone down annually. The reduction is most pronounced in the maintenance and operations cost category. This is primarily related to facility repair costs. More facility repairs were completed in FY09 than FY10 and even fewer in FY11. Department staff anticipate that the expenditures will now remain relatively constant in the near term. Direct Costs FY09 Actuals FY10 Actuals FY11 Actuals Personnel $ 632,268 $ 635,873 $ 621,819 Maintenance and Operations (Direct Costs) $ 206,803 $ 104,551 $ 74,742 Capital Outlay $ 14,312.00 $ 9,036 $ 4,019 Subtotal Direct Costs $ 853,383 $ 749,460 $ 700,581 Indirect Costs FY09 Actuals FY10 Actuals FY11 Actuals BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 158 Indirect Costs FY09 Actuals FY10 Actuals FY11 Actuals Organization wide centralized services $ 387,755 $ 387,755 $ 387,755 IT Overhead $ 84,355 $ 105,179 $ 91,031 Fleet Overhead $ 72,394 $ 36,952 $ 27,532 Other Overhead $ 17,555 $ 23,422 $ 23,246.77 Subtotal Indirect Costs $ 562,059 $ 553,309 $ 529,566 Total Direct & Indirect Costs $ 1,415,442 $ 1,302,768 $ 1,230,147 Value of Volunteer Services FY09 Actuals FY10 Actuals FY11 Actuals Volunteer Services $ 0 $ 0 $ 0 Revenue FY09 Actuals FY10 Actuals FY11 Actuals Revenue (all sources) $ 562,462 $ 574,495 $ 522,324 As shown in the table above, the personnel costs in the Rental Services line of business were highest in FY10 and lowest in FY11. The hours of full time employee effort were highest in FY10, and the total paid effort (part time and full time hours) was lowest in FY11. There were no volunteer hours logged to this line of business, and the total effort of both part and full time employees equates to roughly nine FTE. Details are provided in the chart below. 2009 2010 2011 Total Paid Effort 38.47 36.01 35.63 Full Time 8.63 8.83 8.96 Part Time 29.85 27.18 26.67 Volunteer Effort 2.30 3.06 3.00 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 159 Service Statistics  The Rental Services line of business oversees roughly 16,000 reservations or bookings per year. Many of these reservations are booked in a series, so they constitute only one rental transaction. As shown in the following table, athletic fields were booked for 10,542 occurrences, but the reservations were made in a total of only 363 rental transactions. As mentioned in the Description of Activities section, all rentals require some staff support. Though availability can be checked online, paperwork is required for finalizing the rental. Rental Type Bookings Rentals Bookings/ Rental Total Revenue Revenue/ Rental Athletic Field 10,542 363 29 $ 145,472 $ 401 Carrillo Ranch 44 44 1 $ 93,067 $ 2,115 Parks and Picnics 1,552 946 2 $ 85,793 $ 91 Room 3,545 665 5 $ 188,325 $ 283 Average $ 128,164 $ 722 The Department calculates that 2,558 hours per year are spent booking rentals. This means that $70,097 of the $621,819 total personnel costs for the Rental Services line of business, roughly 11.3% is spent on the booking process. With 2018 rentals per year, that’s an average of 1.3 staff hours per rental. This staff effort is expended across numerous city locations. Benchmarks & Industry Standards  In our research of comparable entities, the City of Carlsbad had one of the most detailed pricing structures in terms of renter classifications. For example, Carlsbad was the only entity to define different rental rates for resident not-for-profit groups with unpaid leadership and for resident not-for-profit groups with paid leadership. In order to streamline the analysis and most closely match Carlsbad's renter categories with those of other entities, we created four simplified categories of renters for our comparison table:  City Department  Resident Not-for-profit (NFP) Group  Other Renter: Lowest Rate  Other Renter: Highest Rate If multiple rates exist for varies departments within the same city or for various resident NFP groups within the same city, the average (mean) of these rates was calculated for these categories. The two “Other Renter” categories are included to give a sense of the range of fees. In some cities, the city Department rate may be the lowest, in which case, the “Other Renter: Lowest Rate” category would show the next lowest rate charged. The table below contains the results of our rental fee analysis. The national comparison data, sourced from the recent National Recreation and Park Association study entitled, “Parks & Recreation Fees and Charges Survey Report: 2010,” was matched to the rental categories as closely as possible. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 160 Hourly Rental Rates City of Carlsbad Comp. A Comp. B Comp. C Comp. D Comp. F Average (A-F) NRPA National Median Athletic Field Rental City Department $0 $0 N/A N/A $0 $0 $0 $15 Resident NFP Group $0 Natural/ $12.50 Synthetic $5 $8 $40 $11 $20 $17 $30 Other: Lowest Rate $5 Natural/ $5 Synthetic $0 $12 $1 $17 $25 $11 $25 Other: Highest Rate $35 Natural/ $65 Synthetic $10 $26 $287 $29 $30 $76 $37 Smallest Room Rental Resident or City Dept. $0 $0 N/A N/A $0 $0 $0 N/A Resident NFP Group $18 $13 $10 $33 $21 $16 $18 N/A Other: Lowest Rate $25 $30 $20 $20 $28 $18 $24 $25 Other: Highest Rate $35 $30 $30 $290 $49 $37 $79 $45 Largest Room Rental Resident or City Dept. $0 $0 N/A N/A $0 $0 $0 N/A Resident NFP Group $25 $105 $80 $36 $43 $51 $57 N/A Other: Lowest Rate $50 $250 $120 $26 $69 $64 $97 $25 Other: Highest Rate $85 $250 $200 $462 $121 $164 $214 $45 Gymnasium Rental Resident or City Dept. $0 $0 N/A N/A $0 $0 $0 N/A Resident NFP Group $45 $75 $30 $57 $31 $55 $49 N/A Other: Lowest Rate $60 $125 $40 $38 $49 $58 $62 $36 Other: Highest Rate $105 $125 $60 $644 $73 $155 $194 $60 Other Charges Admin Processing Fee N/A N/A N/A $5 $3 N/A N/A N/A Per Player Per Season N/A N/A N/A N/A N/A $3-$6 N/A N/A Field Lights $14.50 Natural/ $22 Synthetic N/A N/A $30 $16- $18 $16- $41 N/A N/A Field Preparation N/A N/A $45 N/A N/A N/A N/A Cleaning/Damages up to $5,000 N/A N/A $65 Gym/ $40 other N/A N/A N/A N/A As you can see in the table above, the regional comparables generally charge more for rentals than the City of Carlsbad. In fact, the sum of these comparable municipal rates are 75% higher than the sum of the city’s rates. In every category sampled, the Department’s rates are lower than the average of regional comparables, with the minor exception of small room rental rates for local not-for-profits. In this case, the city’s rates equal the average of the regional comparables. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 161 When compared nationally, the city’s fees were lower than the national median in most outdoor categories and slightly higher in few indoor categories. For example, the athletic field rental rates for the city were lower than the national average in every category, but the large room rental and gymnasium rental were higher than the national average One reason the national rates for athletic field rental are higher than those in the city and its regional comparables, could be because locations with harsh winters have fewer available days for outdoor field rental and therefore these time slots can be offered at more of a premium. The national data did not list special additional fees, but this category offers another key comparison between the city and its regional peers. As shown in the table, administrative processing fees or registration fees (per player per season) are not uncommon, but the city does not currently utilize such a fee. Current Outsourcing Activities  None. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 162 Rental Services: Future State Alternatives  Area & Focus Option Opportunity Amount (Annual Unless Otherwise Noted) OE Centralization of staff $ 93,900 OE Adjust rental rates $ 125,000 DO Rental support services TBD Operational Efficiencies  Centralization of Staff The Rental Services line of business is not currently centralized. Staff supporting this function are located in most Department facilities. The staff are not dedicated to Rental Services, but rather perform these duties as part of a broader job description. On average, the full time employees supporting the Rental Services are only 34% mapped to this function. That means that the majority of their time is spent on other tasks. Typically operational efficiencies can be experienced when an employee becomes expert at a task through a high volume of specialized work. Studies show that consolidation of functions similar to rental support can reduce service costs by up to 50%. The Hackett Group estimates 40% savings for financial processes112 and the Computer Sciences Corporation estimates 25-50% savings for customer service by phone113. Both tasks relate to the Rental Services line of business. Estimated Savings: By consolidating the personnel in support of this function by both job duty and location, a conservative estimate of 25% efficiency would be gained. Given the current total personnel expenditure in this line of business, 25% reduction in staff effort could save the Department approximately $93,900 per year. Rental Rates A new revenue opportunity is possible through adjusting rental rates. To calculate precise revenue potential, the Department would need to review trends in revenue by user type for each rental resource. As noted in the Benchmarking and Industry Standards section, the city’s regional peers charge on average 75% more than the City of Carlsbad for rental facilities. With approximately $500,000 per year in rental revenue currently, adjusting rates upward by 75% could mean a revenue increase of $375,000 per year. An increase of this magnitude may not be palatable to the community at this point, but a 25% increase may be more politically feasible. Estimated Savings: If implemented in the first year (Option A), a 25% increase in fees would yield additional revenue of $125,000 per year. If implemented more gradually, at 5% per year, over 5 years (Option B), the change would be more subtle and the net revenue impact smaller in the first 5 years, but the resulting rates by the 5th year, would be slightly higher, yielding over $13,000 more annually (because each year’s 5% increase is applied to a larger base in option B), See the table below. 112 The Hackett Group, Provided by the Society for Human Resource Management at http://www.shrm.org/hrdisciplines/pages/cms_019538.aspx , Accessed May, 24, 2012. 113 The Computer Sciences Corporation, Provided by the Government Finance Officers Association at http://www.gfoa.org/downloads/Feb07main.pdf. Accessed May 24, 2012. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 163 Options Current Revenue Annual Revenue Five Year Total Future Years Year 1 Year 2 Year 3 Year 4 Year 5 A: 25% Increase in First Year $500,000 $625,000 $625,000 $625,000 $625,000 $625,000 $3,125,000 $625,000 B: 5% Increase over 5 Years $500,000 $525,000 $551,250 $578,813 $607,753 $638,141 $2,900,956 $638,141 Managed Competition Candidates  None. Direct Outsourcing  Rental support services are a logical candidate for direct outsourcing, however and initial search of vendors did not yield a viable match. Event coordination services which offer planning and execution of events for clients typically work with facility owners, but do not operate facility scheduling, booking and rental services on behalf of facilities. Certainly expertise exists in private event venues to support their own rental operations, and such expertise could be translated into municipal rental support, however an example of this was difficult to find. With that in mind, a successful public-private partnership in rental services would be a leading edge approach. Given the volume of rental space and rental transactions, the city is in a position to create a market demand for the right type of vendor.   BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 164 Senior Services: Current State Analysis  Description of Activities  According to the 2010 Census, the City of Carlsbad has roughly 14,746 residents over the age of 65. The Parks & Recreation Department provides special programming for these citizens and all those over 50 years old. This programming is part of the Senior Services line of business and includes: a daily congregate lunch program, home meal delivery, transportation services, a computer lab and fitness center, and specialized classes and activities. The congregate lunch program provides a catered meal at the senior center every weekday at noon. Reservations can be made online or over the phone, but must be made at least 3 hours before the meal. The meal set-up, service and cleaning is performed by a mix of volunteers and Department staff. The Department provides transportation to and from the senior center for the congregate lunches. Transportation is also provided for medical appointments and limited shopping locations. To utilize this service, participants must be over 60 years old and no longer able to drive on their own. Meals are also provided for seniors who are homebound. These meals are prepared as part of the catering agreement and delivered by volunteers. This delivery is not part of the transportation service. Lastly, the Department provides a wide variety of classes and activities for seniors. Some are offered at the senior center, and some are offered in other locations. The Department is currently exploring opportunities to increase access to senior programming in all areas of the city. Some features, such as the senior fitness center and senior computer lab (equipped with 12 computers) are only located in the senior center. Cost of Service  The table below provides an overview of costs and revenues over the past three years for the Senior Services line of business. Direct Costs FY09 Actuals FY10 Actuals FY11 Actuals Personnel $ 487,092 $ 499,966 $ 486,142 Maintenance and Operations (Direct Costs) $ 417,409 $ 336,791 $ 300,708 Capital Outlay $ 43,192 $ 14,213 $ 5,101 Subtotal Direct Costs $ 947,694 $ 850,970 $ 791,950 Indirect Costs FY09 Actuals FY10 Actuals FY11 Actuals Organization wide centralized services $ 326,638 $ 326,638 $ 326,638 IT Overhead $ 92,710 $ 98,219 $ 86,866 Fleet Overhead $ 39,205 $ 39,983 $ 40,849 Other Overhead $ 8,615 $ 15,967 $ 15,960 Subtotal Indirect Costs $ 467,168 $480,807 $ 470,313 Total Direct & Indirect Costs $ 1,414,862 $ 1,331,777 $ 1,262,264 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 165 Value of Volunteer Services FY09 Actuals FY10 Actuals FY11 Actuals Volunteer Services $356,713 $410,556 $362,331 Revenue FY09 Actuals FY10 Actuals FY11 Actuals Revenue (all sources) $309,047 $315,040 $279,201 At first glance, the Senior Services line of business has done well in terms of cost control, yielding significant savings in recent years. As shown in the table above, the personnel expenditure category is the only category of direct costs that does not consistently decline over the past three years for Senior Services. The declining expenditures in the other areas can be attributed to special circumstances that yielded higher than typical expenses in FY09 and lower than typical expenses in FY11. For example, the city opened an expansion in the senior center in FY09, which included office furniture purchases of roughly $60,000. This was also the last full year of senior day trips, a program which has since been eliminated due to the existence of specialty external providers. This program accounted for about $49,000 in fees in FY09 before its elimination. The following year, FY10, was a more typical year, but FY11 had unexpected savings. Savings included $8,000 in heat and light costs and lower than expected catering costs, due to attrition in the home meal participation, a more variable service component. The personnel costs in FY10 are most incongruous with the pattern of cost reduction and the number of hours logged as reflected in the chart below. The fewest hours of effort were logged in 2010 by both part and full time staff, but the personnel costs do not reflect this. Staff transitions in this area and a vacancy explain the misalignment between personnel expenditure and hours of effort. The latter is shown in the chart below. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 166 2009 2010 2011 Total Paid Effort 10.19 9.18 9.34 Full Time 3.03 2.89 2.90 Part Time 7.16 6.30 6.44 Volunteer Effort 7.54 8.81 7.74 Another notable finding displayed in this chart is that the Senior Services line of business has a very high level of volunteer support. This is the highest level of volunteer effort in the Parks & Recreation Department. In fact, in all three years analyzed, the effort in hours logged by the volunteers outpaces the hours logged by the part time staff. Service Statistics  While the total number of seniors served per year is unclear, the Department does measure service levels for several activities. The congregate lunch program serves just over 100 meals per day for 250 days out of the year, totaling about 26,000 meals per year. The home meal program also operates 250 days a year, with a few special case deliveries on holidays, delivering over 9,000 meals per year. About half of volunteer hours logged in the Senior Services line of business are in support of these two programs. About 2,000 volunteer hours per year support home meals and about 6,250 hours per year in support of congregate lunches. For each of the 250 days per year that meals are served, the Department provides transportation to and from the center for congregate lunch. Trips to the grocery store are provided on a weekly basis and a trip to Wal-Mart is provided once per month. The Department also provides transportation to medical appointments as needed. In sum, the Department makes over 6,000 trips per year, averaging 20-30 trips per day. Three vehicles are dedicated to this function, but only two are typically used at a time. The Department does not require payment for any of these services to the city’s seniors but requests a $3.50 donation for congregate meals, a $4.00 donation for home meals and a $2 donation each way for transportation services. Guests under 60 years of age are required to pay $5.00 per meal for congregate lunches at the senior center. The revenue related to these donations and fees is unclear. Tracking and reporting mechanisms could be improved in this area. For items requiring registration in the CLASS system, tracking is more effective. This includes senior classes and fitness center memberships. The Department offers roughly 30 classes per year specifically for those over 50 years of age. Total class participation ranges from 550 to 600 seniors per year. Some drop in classes, clinics and activities categorized as professional services are also provided but not tracked in the CLASS system. These are generally free of charge and often offered as a service by local medical providers or businesses. Total participation here is unknown, but at least five different classes are offered per year. Lastly, the Department offers fitness room passes on a daily, monthly, three-month, and yearly basis. The monthly pass is the most popular, with 471 passes purchased last year. There were also 123 daily passes, 49 three-month passes and 2 yearly passes purchased. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 167 Resident satisfaction with senior programming is measured in the annual Carlsbad Public Opinion Survey. On average, 89% of survey participants indicated they were either very or somewhat satisfied with the recreation and senior programming provided by the city.114 Benchmarks & Industry Standards  As mentioned previously, the Senior Services line of business serves individuals over the age of 50. While this is not an uncommon age to begin senior program eligibility, the U.S. Census Bureau does not publish the number of individuals over 50 in a given city. It does however provide the number of residents over 65. We used this statistic to compare the City of Carlsbad to other communities in the area in terms of service level. As shown in the table below, the city provides one senior center for its 14,765 residents over 65, while comparable municipalities on average provide one senior center for every 8,433 residents over 65. City of Carlsbad Comp. A Comp. B Comp. C Comp. D Comp. F Comp. Average Pop. >65 / Sr. Center 14,746 7,643 8,197 16,162 5,900 4,264 8,775 Sq. Mi. / Sr. Center 40 20 15 53 39 12 29 Similarly, comparable municipalities average one senior center per 25 square miles, while the City of Carlsbad, roughly 40 square miles, provides only one center. The national average is one senior center per 28.9 square miles, as provided by the ICMA’s Comparative Performance Measurement FY 2010 Data Report. Granted, these data points do not account for the size or quality of the facilities, but may suggest the need for the city to explore adding a new location for seniors, even if it is a dedicated space within another city facility providing similar services. It is our understanding that the Department may already be considering such options for the southern part of the city. In terms of senior program spending, the comparable municipalities surveyed spent an average of $1 in senior program expenditures for every $3 in recreation program expenditures. For the City of Carlsbad, this ratio is roughly $1 to every $4.50 spent. This does not necessarily mean that the city is under funding senior programs. Instead it may simply point to a high level of expenditures on other recreation services. The table below provides additional detail. City of Carlsbad Comparable Average Senior Budget as a Percent of Total Recreation Budget 22% 34% Recreation Spending per $1 of Senior Spending $ 4.59 $ 3.15 From a national perspective115, only 70.8% of parks and recreation departments offer senior programs. Of those which do provide programs, only 72.7% provide meals for seniors. That means only 51.5% of parks and recreation departments nationally offer meals for seniors. From that standpoint, the Carlsbad Parks & Recreation Department is in the top half of the nation for department meal service to seniors. 114 City of Carlsbad State of Effectiveness Report 115 PRORAGIS Budget and Funding Report. National Recreation and Parks Association. Report run April 13, 2012. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 168 Current Outsourcing Activities  The Senior Services line of business outsources instruction for senior enrichment classes and food services. There is only one contract as indicated below. This is the food service contract for both the congregate lunches and the home meals. This contract describes portion size, nutritional requirements, and other expectations of the vendor. Company Description FY11 Actuals Allocated to Recreation Services Contract - Enrichment Classes (Approximately 3-4 individual instructor contracts) Enrichment programming $ 9,000 Essenco Food for the Senior Meals Program $ 203,800 The senior enrichment class contracts are accounted for in aggregate with the other instructional contracts under the Recreation Services line of business, totaling roughly a half million per year all together. The terms are specific to each instructor, but generally include minimum and maximum participants for a given activity, length of class and recommended fee. The instructors generally receive 65% of the fee revenue generated. In allocating staff time to contract management efforts, the Department estimated that no time under the Senior Services line of business was devoted to contract management. It is possible that this choice was related to a combination of two things: 1) the stable and incident-free nature of the current catering agreement, and 2) the pooling of instructor contract management as a single task under the Recreation Services line of business rather than the Senior Services line of business. In either case, the city should reconsider its current level of and approach to contract management, as recommended in the Overview of Outsourced Activities & Contract Management section earlier in this report. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 169 Senior Services: Future State Alternatives  Area & Focus Option Opportunity Amount (Annual Unless Otherwise Noted) OE Administrative support reduction $ 25,900 DO Outsource Transportation Services $ 12,500 per year $ 30,000 one-time DO Outsource Congregate Meal Support $ 21,000 Operational Efficiencies  Administrative Support Reduction Department management noted a potential surplus of administrative support staffing across the Department, due to technology-based efficiencies. These managers are considering a pilot program for cross-training and cross-utilization of support staff to be followed by a reduction in support staff hours. The Senior Services line of business would conduct the pilot. If it is successful, the Department could reduce the hours of effort for administrative support in this and other lines of business, and as a result, either realize savings or redirect the effort toward other service priorities. Estimated Savings/Reallocation: According to payroll data, total personnel costs for senior center administration staff classified as general or hourly (excluding management) totaled $259,301 in FY11. Based upon our experience, cross-training and utilization can produce 10 percent efficiency. If staff reduction were realized, the savings would be $25,930 per year; otherwise, we would anticipate that this amount would be used for a reallocation of staff resources for other activities. Managed Competition Candidates  Based on our review of current operations, there does not appear to be any strong candidates for managed competition. Direct Outsourcing  Transportation The transportation program is an excellent candidate for outsourcing as the risk is low and there is an abundance of vendors providing these services. The current internal costs for transportation service were estimated using fleet overhead charges, personnel costs related to drivers and small portion of personnel costs for other Senior Center staff hours logged to senior nutrition transportation. Using this approach the current costs for FY11 were $89,257. Vendor estimates for transportation services averaged $72,000 per year, inclusive of fees and equipment. After adding an estimated 0.05 FTE of contract oversight for this option, the total annual costs for external provision are shown below. The average personnel costs for Department staff that manage contracts is $94,232 per year. Assuming this contract could add about 100 hours of work per year for such an individual, five percent of a full time position was calculated to be $4,712 per year, an indirect cost listed in the table below. BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 170 Direct Costs Vendor Fees $ 72,000 Subtotal Direct Costs $ 72,000 Indirect Costs Ongoing contract management tasks $ 4,712 Subtotal Indirect Costs $ 4,712 Total Direct & Indirect Costs of Vendor Option $ 76,712 Estimated Savings: Compared to the average of potential vendor cost estimates, an annual savings of over $12,000 could be possible, as shown in the following table. In addition to these ongoing savings, a one-time source of revenue might also be expected from the liquidation of some or all of the related fleet assets, currently three vans. Assuming an average resale value of $10,000 for each of the vans, this would generate $30,000 in savings. Cost Comparison Current Internal Cost $ 89,257 External Option $ 76,712 Potential Savings $ 12,546 Congregate Meal Program Like the transportation program, the program activities in Congregate Meal Support are excellent candidates for outsourcing. These activities include the organization, set-up, service and clean-up of daily congregate lunches. The activities align well with services that are already contracted and the personnel costs related to internal staff support have been increasing steadily over the past three years, as shown in the table below. Direct Costs FY09 FY10 FY11 Personnel for Senior Nutrition-Congregate $ 33,563 $ 35,749 $ 36,765 M&O for Senior Nutrition-Congregate (excludes cost for catering contract) $ 9,698 $ 10,085 $ 9,340 As stated previously, the Department currently contracts with a caterer for the preparation of the meals. It is possible that the service of meals and the tasks associated with it could be added to the existing contract or rebid as part of a new expanded catering contract. Typically, caterers calculate fees for delivery and service and clean-up at 20% of the food costs. While this calculation is more commonly used in event catering, it provides a sense of the market standard for such activities in food service. Given that volunteers are heavily involved in the current service efforts, we instead used 10% of the current contract to estimate potential additional vendor fees. This would mean $20,380 in additional vendor fees for service and clean-up. We then assumed an additional contract management staff effort of 0.05 FTE per year. The average personnel costs for Department staff that manage contracts is $94,232 per year, and five percent of such a position was calculated to be $4,712 per year, an indirect cost listed in the table below, which shows the combined costs. Direct Costs Vendor Fees $ 20,380 BEST VALUE  SERVICES PROJECT: PARKS & RECREATION OPERATIONAL ASSESSMENT    City of Carlsbad, CA  Page 171 Direct Costs Subtotal Direct Costs $ 20,380 Indirect Costs Ongoing contract management tasks $ 4,712 Subtotal Indirect Costs $ 4,712 Total Direct & Indirect Costs of Vendor Option $ 25,092 Estimated Savings: Given the current costs for both personnel and M&O for congregate meal service and the estimated future state alternative costs, the potential annual savings would be over $21,000 per year. The table below summarizes this calculation. Cost Comparison Current Internal Cost $ 46,105 External Option $ 25,092 Potential Savings $ 21,013 DRAFT – FOR DISCUSSION PURPOSES ONLY  Appendices Appendix 1: Work Breakdown Structure  The following indicates the activities performed in each functional area within each line of business. This information should be used for any contracting opportunity. It will ensure that the vendor level of service is consistent with the city’s current approach. Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Aquatic Services Programs/Instruction/Rec Activities Masters Programs - Guarding Daily Revenue/Participant; Cost/Participant Revenue/Attendee or Participant Programs/Instruction/Rec Activities Rec/Lap Swim - Guarding Daily Revenue/Participant; Cost/Participant Revenue/Attendee or Participant Programs/Instruction/Rec Activities Swim Lessons - Instruction Daily - Summer Revenue/Participant; Cost/Participant Revenue/Attendee or Participant Programs/Instruction/Rec Activities Rental Pool Use - Guarding Daily Revenue/Participant; Cost/Participant Revenue/Attendee or Participant Administration Registration Majority online Lane Hours/Program; Revenue/Patron/Activity N/A Can be done at any recreation site or remotely from user site Administration Staff Scheduling Weekly Cost to Operate/Day Cost/Attendee or Participant Administration Course Fee Collections Majority online Revenue/Activity N/A Administration Rentals - Scheduling & Contracting Yearly and as needed Lane Hour Use/Program N/A Administration Admissions Daily - Lifeguards Revenue/Attendee Revenue/Attendee Maintenance Pool Maintenance Daily - Pool Supervisor Cost to Operate/Day Maintenance Cost/Square Foot All in-house Maintenance Heater As Needed None N/A Contracted Maintenance Bathroom Cleaning Daily - Lifeguards; Weekly - PEM Visual Inspection N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 173 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Custodial Services Trash & recycling collection Collect trash from parks, facilities, beaches trails and downtown district (80 cans). There are 271 cans total throughout the city Collect trash daily; twice per day as needed in high traffic/tourism district 12,012 hours annually; 231 hours/week; 32.9 hours/day N/A Pressure wash of trash and recycling cans Ensure cleanliness of garbage cans and recycling receptacles by pressure washing all cans Clean quarterly No service levels defined. N/A Maintain dog stations Refill dog bags and remove waste from stations 60 - 65 stations citywide: Pick up twice per week from trails Pick up from dog park daily Pick up from downtown daily Pick up from beaches daily No service levels defined. N/A Supplemental cleaning Cleaning of picnic tables and trash removal as needed for events On request No service levels defined. N/A Hardscape/ Specialty Maintenance Sidewalk maintenance and repair (interior to parks) Installation of new concrete, grinding to smooth surfaces, repairs of cracks and other safety concerns As needed. No service levels defined. N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 174 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Sweeping/Washing Walkways, steps, picnic hard surfaces, curbs, gutters, and parking lots cleaned to remove foreign objects. Contract: Daily. In-house: As needed. No service levels defined. N/A Retaining walls/fencing maintenance; for parks and trails Maintain multiple types of barriers including crib walls, wooden fencing, chain link fencing; remove graffiti and repair structures with vandalism As needed. No service levels defined. Regional standard for sports field fencing Playground equipment maintenance and inspection (tot lots, swings, etc.) Regularly inspect playground equipment, make immediate repairs to equipment to maintain safety, conduct routine maintenance; maintain and replace playground surface to maintain standards and safety (rubber, woodchips, etc.) Contract: Daily. In-house: Daily. No service levels defined. Conduct inspection according to California Playground Safety Regulations standards, inspector must be certified (CPSR) Playground surface maintenance Maintain and replace playground surface to maintain standards and safety (rubber, woodchips, etc.); clean surface to remove unsafe/unsanitary debris. Contract: Daily. In-house: Daily. No service levels defined. Conduct inspection according to California Playground Safety Regulations standards, inspector must be certified (CPSR) DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 175 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Sports court surface maintenance Maintain surfaces through surface repair and replacement, sweeping and cleaning of surfaces Contract: Daily. In-house: Daily. No service levels defined. N/A Sports court equipment maintenance Maintain sports court equipment such as tennis nets, poles, and windscreens; basketball hoops, nets; shade structures, bleachers, etc. As needed No service levels defined. N/A Park bench maintenance Maintain parks benches, pour concrete pad for new installations As needed No service levels defined. N/A Park bridge maintenance Maintain park bridges, address safety issues As needed No service levels defined. N/A General masonry General masonry work for park structures (facades, planters, etc.) As needed No service levels defined. N/A Block house restroom maintenance and repair Maintain restroom fixtures such as toilets, sinks, doors, and other items (excludes cleaning-part of custodial work); conduct major repairs if needed As needed. No service levels defined. N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 176 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Facility and Equipment Cleaning and Inspections Picnic tables, benches, slabs, barbeques, trash receptacles shall be cleaned to ensure safe use. Daily and as needed. No service levels defined. N/A Park lighting maintenance Maintain park lighting lamps and fixtures including sports field/court lighting, walkway ballards, walkway lighting, parking lot lighting. As needed. No service levels defined. N/A General park fixture maintenance Maintain park structures and fixtures such as ornamental fountains, informational kiosks, benches, picnic tables, signage, etc. As needed. No service levels defined. N/A Drinking Fountain Cleaning Clean and disinfect drinking fountains, drain and sand trap. Contract: Daily. In-house: Daily. No service levels defined. N/A General electrical work General electrical work in parks areas As needed. No service levels defined. N/A Graffiti Removal Removal of graffiti on parks surfaces or fixtures Contract: Daily. In-house: Daily. No service levels defined. N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 177 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Hardscape Contract Management Management of hardscape contracts including issuance of RFPs, regular inspections of contractor work, communication and coordination with contractors, etc. Ongoing N/A. N/A Historical Parks Services School Art Program Brochure creation and distribution, reservations & prep, learning packet creation and delivery, tour, & art lesson Roughly 2.5 classrooms/month 31 classrooms participate per year. The number of students and learning packets is not reported, but is directly related to the number of participating classrooms. The number of brochures is higher but also unreported. Effective visual arts class size is 21 students to 1 instructor Museum Services Curation/archival (catalog, inventory, storage), research, restoration, drafting and exhibit creation One new exhibit per year 1,200 piece collection, 800 hours/year of archivist time N/A Roughly $30,000/yr in donations to the Ranch Tours Walk on tours, educational tours for third graders, other scheduled tours Roughly 40 school tours per year, only 2 non-Carlsbad schools per year Cost per tour is roughly $160 for non-Carlsbad schools and $450 for Carlsbad schools. Non-school guided tours and annual visitor estimates are not currently tracked.Many historic hours museums charge tour fees, stratified with lower rates for students DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 178 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Visitor Services Park operations, opening, closing, visitor center 8 hours/day for 4 days/week, and 4 hours/day for 1 day/week Open 36 hours/week Comparable sites open an average of 24 hours/week Open 9-5 Tues-Sat, 11-5 Sun Administration Grant writing, programming oversight, coordination with Friends of Corrillo Ranch and other groups / departments, expansion / restoration planning, volunteer coordination N/A Approximately 1.35 FTE of effort toward these activities. N/A Landscape Maintenance Irrigation of Vegetation Irrigate plants, trees, and turf in parkland and medians Contract: As needed. In-house: As needed for optimum plant growth. Special restrictions apply for drought periods or periods of measurable rain. Optimum amount of water without causing soil erosion and run-off. Follow city Water Efficient Landscape Ordinance (WELO). N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 179 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Irrigation System Maintenance Maintain and repair irrigation system Contract: As needed. In-house: Repairs and replacements as needed. Repair or replacement should take place within 2 working days or sooner to prevent damage to landscape or turf. Annual certification of backflow devices. Promote industry standard for public safety. Irrigation shall be applied at a rate not exceeded infiltration rate of the soil and sufficient for plant growth. N/A Irrigation System Testing Test irrigation system to ensure appropriate operation adherence to water conservation standards Contract: Weekly or when problems are noticed. In-house: Weekly or when problems are noticed. Protect against runoff and erosion and detect system failure. N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 180 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Planters and Ground Cover Maintenance Maintenance of planter areas and groundcover. Contract and In-house: Weekly: Edging and weed control. Monthly: Trimming and cultivation. Quarterly: Fertilization. As needed: pest control. Planting areas shall be pruned and maintained to ensure healthy living condition. Dead, dying, or diseased vegetation shall be replaced. Planting areas shall be maintained in relatively weed free condition and clear of undergrowth (fire hazard). Invasive species shall be eradicated. Maintain to prevent obstruction of motorist view. Mulch shall be replenished as needed. Plants shall be fertilized and watered at intervals as necessary to promote optimum growth. N/A Shrub Maintenance Maintenance of shrub vegetation. Contract and In-house: Weekly: weed control. Monthly: Trimming. Quarterly: Fertilization. As needed: Pest control. No service levels defined. N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 181 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Shrub replacement Replacement of shrubs if diseased or dead. Contract: As needed. In-house: As needed. Incorporate native and drought resistant plans whenever possible. Must be 5 gallon size or greater (for slopes under 3:1) N/A Natural turf maintenance (passive) Maintenance of passive natural turf areas. Contract and In-house: Weekly: mowing, mechanical edging of turf and ground cover edging, weed control (1 time per year for pre-emergent weeding), clipping removal, string trim, visual inspection. Quarterly: fertilize. Aerate/thatch: Semi-annually. As needed: Pest Control. Clear walkway after each mowing. N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 182 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Synthetic turf maintenance Sweeping, grooming, cleaning, and disinfecting of synthetic turf. Weekly: sweeping and shell/debris extracting. Monthly: grooming and rubber in-fill redistributing. Quarterly: water rinsing. Semi-annually: anti-microbial spraying. As needed: seam separation and tear repairing, vandalism/theft replacing, rubber in-fill replenishing. Clear walkway after each mowing. N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 183 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Specialty natural turf maintenance (active) Maintenance of active turf on baseball fields, soccer, etc. Contract: Weekly: mowing, mechanical edging of turf and ground cover edging, weed control (1 time per year for pre-emergent weeding), clipping removal, string trim, visual inspection. Quarterly: fertilize. Aerate/thatch: Semi-annually. As needed: Pest Control. Annual: Renovation and Repair In-house: Same as contract, plus semi-weekly moving and mechanical edging during warm growing seasons No service levels defined. N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 184 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Fire mitigation/brush removal Removal of brush and other debris for fire prevention and mitigation. Contract: As needed. In-house: As needed. Limit disruption to environmentally sensitive areas while conforming to fire standards. Mitigate fire danger to adjacent structures. N/A Disease and Pest control Maintain landscape areas free of disease and insects that could cause or promote damage to plants. Contract: As needed. In-house: As needed. No service levels defined. All pest control must be in compliance with Federal, State, and local laws. Must be State of California Licensed Pest Control Operator. Must use appropriate extermination techniques. Stormwater pollution prevention Employment of best management practices (BMPs) to prevent stormwater pollution (daily activities; meet regular reporting requirements Contract: As needed. In-house: As needed. No service levels defined. N/A Undeveloped parkland maintenance General mowing and weed control for undeveloped parkland Contract: Annual and as needed. In-house: Semi-annual and as needed. No service levels defined. N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 185 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Erosion prevention Reduce erosion potential through erosion control planting and slope revegitation. Contract: As needed. In-house: As needed. No service levels defined. N/A Tree maintenance (for work up to 15 ft.) Tree maintenance for landscapes and medians (for contract purposes only); responsible for tree work up to 15ft. From the ground Contract and In-house: Semi-annual. Trimming. Quarterly: Fertilize. As needed: Restaking, pest control. In-house: Same as contract. Maintain 14 ft clearance for branches overhanging beyond curb line into roadway, 8 ft for branches overhanding walkways and other pedestrian paths Conform to Society of Arboriculture (ISA) Standards Mulching Distribution of mulch on exposed soil surfaces. Contract: Daily. In-house: As needed. Minimum of 3 inches of mulch to exposed soil surfaces N/A Contract Management Management of landscape contracts including issuance of RFPs, regular inspections of contractor work, communication and coordination with contractors, etc. Ongoing N/A N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 186 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Recreation Services Traditional Camps Pee Wee Summer, Pee Wee Spring, Kidz Summer, Kidz Spring, Explorer Summer & CITSessions/Year: Pee Wee Summer (10), Pee Wee Spring (1), Kidz Summer (10), Kidz Spring (1), Explorer Summer & CIT (20) Participation/Year: Pee Wee Summer (203), Pee Wee Spring (23), Kidz Summer (495), Kidz Spring (55), Explorer Summer & CIT (990) N/A Pee Wee: 3-5 yrs old, Kidz: 6-11 yrs old, Explorers: 11-13, Teen (CIT): 13-15 years old Enrichment Camps Art, cooking, science, etc. Roughly 30 camps/year Participation/Year: 431 N/A Sports Camps Offerings for ages 3-16, including basketball, soccer, cheer, gymnastics, skateboarding, golf, tennis, dodgeball, volleyball, football, and multi-sport camps Sessions/Year: 25 Total annual participation: 600, at least 10 types of sports offered N/A Classes Dance, martial arts, fitness, science, art Varies 5,795 net registrations/year N/A Preschool Parent Toddler 1, Parent Toddler 2, Preschool 3, Preschool 3 & 4, and Preschool 4 & Kindergarten Sessions/Yr: Parent Toddler 1 (36), Parent Toddler 2 (63), Preschool 3 (19), Preschool 3 & 4 (27), and Preschool 4 & Kindergarten (31) Total Participation: approximately 1,900/year Annual Revue: approximately $185,000/year NRPA:80% of CA departments offer preschool but only 32% nationally DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 187 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Special Events Spring EGGstravaganza, Triathlon, Dinner & a Movie, Holiday at the Rancho, Pumpkin Plunge, Snores & S'mores Campout, Teen Scene, and Wild West Fest 8-9 events/year Total participation not consistently tracked N/A Youth Sports Classes/Leagues include: Basketball, Gymnastics, Soccer and Tennis Sessions vary by season Annual Participation: Basketball (450-500), Gymnastics (325-350), Soccer (30-40), Tennis (1,000-1,500) N/A Adult Sports Classes/Leagues include: Basketball, Soccer, Softball, Golf, Volleyball and Tennis Sessions vary by season Annual Participation: Basketball (30-35), Volleyball (400-450), Soccer (20-40), Tennis (175-225), Golf (10-15), Softball (25-30) N/A Other Programming Teen program, community center programs Varies Teens in Action participation not tracked N/A Rental Services Community Centers Room reservations, equipment coordination (tables/chairs), document assistance 665 rentals/yr and 3,545 bookings/year Rentals, booking and revenue tracked by location N/A Athletic Fields Coordination of specific sport, multi-use, some special surface athletic areas 363 rentals/year and 10,542 bookings Rentals, booking and revenue tracked by location N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 188 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Parks, Picnics & Community Garden Reservations for non-athletic open spaces, picnic areas, gazebos and community garden space 946 rentals/year and 1,552 bookings/yr Rentals, booking and revenue tracked by location N/A Carrillo Ranch Rental coordination and event assistance (mostly weddings) for the pool and cabana area, the picnic area and the patio area 44 rentals/year and 44 bookings/year Rentals, booking and revenue tracked by location N/A Seniors Services Fitness Room Equipment and space for exercise activities N/A Passes/year: 123 daily, 471 monthly, 49 three-month, and 2 yearly passes N/A Memberships offered daily, monthly, 3 months, or year Professional Services Health screenings, legal & tax services, information assistance, direct residents to local service agencies 4-5 different types of classes/yr External organization provide service (participation not measured, but receive evaluation responses from class participants) N/A Home Meals Deliver meals to seniors Serving days: 250, meals delivered/yr: over 9,000, Meals delivered/day: 32; 2 PT staff plus kitchen aide All volunteer delivery, Volunteer hours/yr: around 2,000, volunteer hours/day: 7-8 N/A Lunch at the Center Provide daily meals to seniors at the Senior Center Serving days: 250, Meals served/year: 26,000, Volunteer hours/year: over 6,000, Volunteer hours/day: around 25, 2 PT staff plus kitchen N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 189 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Meals/day: a little over 100 aide Transportation Transport for seniors over 60 who can no longer drive, for the following: daily to lunch at the Senior Center, Medical appointment (as needed), grocery trips weekly, Walmart trips monthly Service days/year: 250, Trips/year: Over 6,000, Trips/day: 20-30, Vans in use per day: 2 Service area: 41 square miles; 3 PT staff ; 3 vehicles, only 2 in use at a time N/A Activity programming Coordinate and facilitate day trips and enrichment classes for senior participants Day trips/year: 3, Enrichment classes/year: 80 1 PT staff N/A Computer Lab Provide computer classes, free internet access and open lab Users per year and class attendance per year not currently tracked 1 PT staff coordinates; 12 computer stations with printer access, classes taught by volunteer N/A Administration Information, scheduling, walk-in services, Classes provided/year: 9 1 FT Secretary, 2 PT Office Specialists N/A Class evaluations from participants Trails/ Open Space/ Preserve Maintenance Weeding Weeding on trails Contract: As needed. In-house: 2 times per year or as needed. No service levels defined. N/A Trail construction Develop new trail as directed Contract: As needed. In-house: As Construct to city standards N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 190 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments needed. Remove fallen trees Remove downed limbs and trees from trail paths Contract: As needed. In-house: As needed. No service levels defined. N/A Vegetation removal Clearance of vegetation obstructing trail or creating unsafe conditions Contract: As needed. In-house: As needed. Clearance of vegetation 8' above trail grade, trees pruned to main stem and not into branch collar; removed plants must be cut level to ground; stumps removed 12' below trail grade N/A Pothole filling Fills potholes on trail surfaces Contract: As needed. In-house: As needed. All holes should be filled to create smooth, obstacle free tread N/A Pavement sweeping Sweep debris from paved trail surfaces Contract: As needed. In-house: 4 times per year and as needed. No service levels defined. N/A Clean drainage system Clear trail drainage systems to maintain steady flow of water Contract: As needed. In-house: Once per year and before/after a storm. No service levels defined. N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 191 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Unpaved trail tread maintenance Maintain and repair unpaved trail surfaces Once per year or as needed. Removal of sloughs and berms according to trail maintenance plan; loose rocks, rock points, stumps, and roots protruding from trail surface is to be removed; N/A Dog station replacement/ repair Maintain dog stations on city managed trails As needed. No service levels defined. N/A Trails Pavement sealing/ repaving Repair of paved trail surfaces Contract: As needed. In-house: As needed. No service levels defined. N/A Trail edging repair/ replacement Maintain trail edging As needed. No service levels defined. N/A Special structure (water bars, culverts, retaining walls, wash crossings, overpasses, bridges, signs) repair/ maintenance Maintain and repair trail structures to prevent erosion and promote safety. Contract: As needed. In-house: As needed. Inspection annually at minimum, repaired to original standard construction specifications N/A Public Interaction Notify public of trail closings for major repairs; coordinate with HOA for private to public transitions Contract: As needed. In-house: As needed. Notify city Trail Manager 5 days before activities; close of trail using "Trail Closed" sign with city contact information; post detours and "end tail" signs if no alternative available N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 192 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Coordinate and manage trail volunteers Manage trail volunteers in the field and coordinate activities with trail captains who take "ownership" over sections of trail. Contract: As needed. In-house: Conduct quarterly meetings with trail captains; work is typically completed on Saturdays from 8-12. Coordinate trail activities to maximize cost effectiveness of volunteer use N/A Typically have one maintenance worker on site for more difficult projects Monitor trail condition through inspection Monitor trail condition through use of trail volunteers and actual inspection by staff. Contract: Daily In-house: As needed in conjunction with volunteers. No service levels defined. N/A Contract Management Manage contracts and contractors Ongoing No service levels defined. N/A Preserve-Contract Management Manage preserve contracts; coordinate with contractors; verify completion of work. Contractor provide services including weed abatement, invasive plant removal, preparation of preserve management plan, animal surveys, litter removal, security patrols, lagoon buoy maintenance, signs and fencing, etc.) Ongoing N/A N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 193 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Preserve-Public Coordination Coordinate joint activities with public entities (i.e., State of California) As needed N/A N/A Tree Maintenance Management General Tree Pruning Trimming, of trees. Also, line clearance pruning, clearance pruning, tree watering, small tree care, palm truck skinning, root pruning. Contract: In accordance with city annual tree pruning program. In-house: In accordance with city annual tree pruning program. ISA tree worker certification preferred for all crew members. ISA tree worker certification required for Foreman of each crew. At least one foreman is required for every three crew members. ISA Arborist required for all call-out Arborist staff. At least one Arborist is required to be available on a crew's site within two hours of call-out by the city. Conform to Society of Arboriculture (ISA) Standards West Coast contract indicates that contractor must be flexible with crew to manage shifting workload. Contractor submits proposals for work completion and time (assumed to be based on city schedule) for performance measuring. Tree Training and Preservation Staking, guying, and training of trees. Contract: As needed. In-house: As needed. No service levels defined. Conform to Society of Arboriculture (ISA) Standards Tree Watering and Irrigation Tree watering and irrigation. Contract: As needed. In-house: As needed. No service levels defined. Conform to Society of Arboriculture (ISA) Standards DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 194 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Tree replacement Replacement of dead or diseased trees Contract: In accordance with City Community Forest Management Plan. City goal to replace trees within 45 days of removal. (Council Policy Statement, applies to street trees specifically). Replaced with minimum 15 gallon size. In-house: In accordance with City Community Forest Management Plan. City goal to replace trees within 45 days of removal. (Council Policy Statement, applies to street trees specifically). Replaced with minimum 15 gallon size. No service levels defined. Conform to Society of Arboriculture (ISA) Standards DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 195 Level 1 - Line of Business Level 2 - Specific Work Types Within Line of Business Description Frequency/ Completion Time Service Levels/Measures Tracked by the City of Carlsbad Industry Standards Comments Respond to emergencies Response to emergency tree requests to clear debris or trim trees. Contract: Respond to phone call within 1 hour. Forman respond in 10 min. to direct call. In-house: On call and as needed. No service levels defined. Conform to Society of Arboriculture (ISA) Standards Tree and Stump Removal Remove tree stumps. Contract: As needed. In-house: As needed. No service levels defined. Conform to Society of Arboriculture (ISA) Standards Tree Inventory Conduct regular tree inventory to monitor the health and status of city managed trees. Contract and In-house: In accordance with city annual tree pruning program and as needed. No service levels defined. Conform to Society of Arboriculture (ISA) Standards Contract Management Management of trees contracts including issuance of RFPs, regular inspections of contractor work, communication and coordination with contractors, etc. Ongoing N/A N/A DRAFT – FOR DISCUSSION PURPOSES ONLY  Appendix 2: Current Contract Listing  Company Description FY11 Expenditures Line(s) of Business Agricultural Pest Control, Inc. Agricultural pest control $11,462 Trails/Preserve, Landscape Arthur A. Brown Plumbing Plumbing $219 Hardscape Blair Rasmussen Construction Construction $31,289 Hardscape Builders Automation & Electronics Inc Electric Gate Repair $593 Hardscape California Conservation Corps Urban forest thinning $125,100 Trees, Trail/Preserve Carlsbad Unified School District Use of parking lot for programming. $344 Trails Center for Natural Lands Management Habitat management services to the city to help fulfill the goals of the Preserve Management Plan $163,526 Trails/Preserve Coastal Frontiers Corporate Offshore profile survey services along the Carlsbad coastline $19,161 Trails/Preserve Contract - Enrichment Classes (Approximately 30 individual instructor contracts, 4 vendor contracts) Enrichment programming $451,758 Recreation Contract - Enrichment Classes (Approximately 3-4 individual instructor contracts) Enrichment programming $451,758 Senior Services Contract Classes - Pool (0 individual instructor contracts, 1 vendor contracts) Pool programming and courses $14,479 Aquatics Contract Classes - Youth Sports (7 individual instructor contracts, 2 vendor contracts) Youth sports instruction $54,182 Recreation Court Concepts Inc. Court surfacing & repairs $4,995 Hardscape Dan Vaughn Construction Concrete Construction $10,842 Hardscape Essenco Food for the Senior Meals Program $156,816 Senior Services Ferandell Tennis Courts Court surfacing & repairs $10,319 Hardscape DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 197 Company Description FY11 Expenditures Line(s) of Business Fluoresco Lighting & Signs Ballfield lighting maintenance $13,009 Hardscape Habitat Restoration Sciences Lake Calavera 5-Acre Habitat Restoration Project $23,619 Trails/Preserve Habitat Restoration Sciences Lake Calavera 1-Acre Mitigation Project $8,462 Trails/Preserve Habitat West, Inc. Preserve restoration/monitoring $5,299 Trails Harris & Associates Assessment District Engineering $6,800 Tree Maintenance Knorr Systems, Inc. Pool heater maintenance services $2,620 Aquatics Knorr Systems, Inc. UV preventative maintenance services $1,428 Aquatics Lawnmowers Plus Equipment Maintenance $6,036 Landscape, Trees Locater Services DBA Able Patrol and Guard Security services $14,446 Trails/Preserve Mark & Diana Stein Carrillo Park Overseer $2,618 Custodial, Landscape, Hardscape Merkel & Associates, Inc Lagoon buoys maintenance $34,175 Trails/Preserve Musco Sports Lighting Sports Lighting Programming $3,200 Hardscape Nissho of California, Inc Landscape maintenance work at specified street medians and parkways $285,718 Landscape, Hardscape, Trees Nissho of California, Inc. Athletic field and landscape maintenance services $171,753 Landscape, Hardscape, Trees P.B.A. Ltd Engineering Services $1,500 Trails Pipes Plumbing Inc Plumbing $308 Hardscape Plant-Tek Inc Pesticide Application $5,986 Landscape, Trees Poolmaster Ornamental fountain maintenance $3,505 Hardscape Pro Installations Inc. Restroom floor resurfacing $9,950 Hardscape RDO Equipment Company Equipment Maintenance $10,595 Hardscape Right Of Way Engineering Services, Inc. Utilities Coordination/Services $2,740 Hardscape Sadler Electric Perform routine, recurring, and usual electrical maintenance work necessary for the protection and $57,196 Hardscape DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 198 Company Description FY11 Expenditures Line(s) of Business preservation of city owned or maintained electrical systems. Sandag Beach Sand nourishment $14,691 Trails Scott Fence Fencing $13,660 Hardscape SDG&E Lighting utility $27 Landscape, Hardscape Sunward Flag Flag lighting $897 Hardscape Superior Onsite Service Inc. Equipment Maintenance $5,260 Custodial, Landscape, Hardscape, Trees T&T Janitorial, Inc. Custodial maintenance agreement $15,227 Custodial U.S. Bank Purchase Cards $293 Custodial, Trails, Landscape, Hardscape, trees Underground Service Alert Utilities Coordination/Services $2,640 Landscape West Coast Arborist, Inc. Tree trimming maintenance services $262,712 Trees, Landscape Westturf Landscape Maintenance / Sergio Graham landscape maintenance work at specified parks, facilities, and trails areas $46,517 Custodial, Trails, Landscape, Trees Zumar Industries Sign fabrication $167 Hardscape DRAFT – FOR DISCUSSION PURPOSES ONLY  Appendix 3: Comparable Jurisdictions & Survey  Aquatics Survey Responses Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Costs and Revenue: Total Annual Cost (per category) Not applicable $816,132 $265,733 $676,610 Not answered $164,200 Personnel Services (expenditures for all salaries, wages and benefits) Not applicable $375,558 $182,635 $436,800 Not answered $143,300 Operations (expenditures for all functions, excluding contracts) Not applicable $140,094 $70,898 $225,610 Not answered $20,900 Capital (expenditures for capital equipment and projects and debt services paid from operating funds) Not applicable $300,480 $0 $2,200 Not answered $80,000 Contract Costs Not applicable $0 $12,200 $12,000 Not answered $0 Annual Revenue from Fees & Charges Not applicable $184,485 $125,000 $200,390 Not answered $215,900 Staffing: Number of Full Time Staff: Management Only (Director, Deputy, Superintendent, Division Manager, etc.) Not applicable 3 0 2 Not answered 1 Number of Full Time Staff: Non-Management Only (workers, coordinators, field supervisors, etc.) Not applicable 1 0 18,429 Not answered 3 DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 200 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Total Part Time Staff Hours/Year Not applicable 17,217 10,940 0 Not answered 12,400 Number of Volunteers per Year Not applicable 0 0 0 Not answered 30 Total Annual Volunteer Hours Not applicable 0 0 Advisory board (reviews, policies, budgets, etc.) Not answered 300 To what type of board does your department report? Not applicable Governing board (approves policies, budgets, etc.) Advisory board (reviews, policies, budgets, etc.) Not answered Not answered Multiple boards (governing and advisory) Contracted Services: Which services do you currently contract for? Not applicable -Cleaning -Dive team -Swim team -Some swim lessons & adult exercise classes None None Not answered Restroom Cleaning How are contracts selected? Not applicable Aquatics- assess community needs and look for specific instructors Focus on best service Focus on lowest bid Not answered Focus on best service How is contract performance monitored? What are common metrics used? Not applicable -Attendance -Comments from parents -Participant and staff evaluations for instructors, staff reviews -Monthly written performance reports -Yearly meetings with contractor Not answered Pool staff does a daily inspection DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 201 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F What partnerships do you have with other organizations or business (e.g., shared services, joint purchase or cooperative arrangements) for services? Equipment? Not applicable YMCA -Cooperative services with Unified School District -Shared services (recreation classes) with neighboring city Schools for summer extended service programs Not answered -Unified School District for use of pool in the off season -American Red Cross for CPR and First Aid -Nearby city's Aquatics Council for staff training and programs for city pools -Other Cities (cross registration, staff training, publicity) Best Practices and Innovation: Please describe any best practices or innovative approaches you've incorporated in each area Not applicable Try to offer unique aquatic exercise programs Not answered Not answered Not answered -Seasonal Pool operation (most economical) -Complete cost recovery of school district pool usage -American Red Cross trade agreements Pool Size What size is/are your pool(s) in square feet/meters of pool?: Pool 1 Not applicable 7,650 square feet 11,775 square feet 12,300 square feet Not answered 3,400 square feet DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 202 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F What size is/are your pool(s) in square feet/meters of pool?: Pool 2 Not applicable 936 square feet 11,775 square feet Not applicable Not answered 6,500 square feet What size is/are your pool(s) in square feet/meters of pool?: Pool 3 Not applicable 146 square feet Not applicable Not applicable Not answered Not applicable General Information Daily average attendance Not applicable 275 -250 School year -1000 Summer -350 Spring/fall -100 Winter -1500 Summer Not answered 600 Annual average attendance Not applicable 95,000 32,288 200,000 Not answered 57,000 What is your largest source of revenue? Not applicable Private & group lessons Summer swim lessons & pool rentals Recreation/lap swim Not answered Group lessons What methods do you use to ensure optimal scheduling of the pool? Not applicable -Consider type of users and time of day -"When to Work" -ActiveNet -Close collaboration with school district staff -Give first priority to revenue generation and education -Second priority given to meeting community need Not answered -"When to Work" -Activenet -Outlook For which programs do you contract? (e.g., private lessons, dive programs, other) Not applicable -Dive team -Swim team -Water aerobics Water Aerobics Not answered Not answered -Diving -Water Aerobics -Water Polo For which maintenance activities do you contract? (e.g., routine pool cleaning, HVAC, other) Not applicable Plumbing for restrooms/locker rooms School district handles all maintenance None Not answered Restroom Janitorial Cleaning DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 203 Parks Maintenance Survey Responses Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Costs and Revenue: Total Annual Cost (per category) $1,744,971 $3,173,533 $5,699,685 Not answered $6,145,938 $5,622,582 Personnel Services (expenditures for all salaries, wages and benefits) $380,838 $325,157 $1,496,212 Not answered $1,095,290 $1,921,215 Operations (expenditures for all functions, excluding contracts) $67,260 $1,894,145 $1,289,535 Not answered $2,298,165 $1,597,290 Capital (expenditures for capital equipment and projects and debt services paid from operating funds) $0 $954,231 $1,293 Not answered $551,948 $138,000 Contract Costs $1,296,873 $0 $2,912,645 Not answered $2,200,535 $2,104,077 Annual Revenue from Fees & Charges $0 $9,705 $52,264 Not answered $0 $0 Staffing: Number of Full Time Staff: Management Only (Director, Deputy, Superintendent, Division Manager, etc.) 1 2 1 Not answered 1 2 DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 204 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Number of Full Time Staff: Non-Management Only (workers, coordinators, field supervisors, etc.) 3 3 14 Not answered 7 28 Total Part Time Staff Hours/Year 0 0 0 Not answered 0 12,000 Number of Volunteers per Year 0 0 0 Not answered Not applicable 0 Total Annual Volunteer Hours 0 0 0 Not answered Not applicable 0 To what type of board does your department report? Governing board (approves policies, budgets, etc.) Multiple boards (governing and advisory) Governing board (approves policies, budgets, etc.) Not answered Not answered Governing board (approves policies, budgets, etc.) Contracted Services: Which services do you currently contract for? All maintenance activities -Landscape maintenance -Electrical -Plumbing -Tree trimming -Janitorial -Concrete services -AC services -General property maintenance and construction -Parks and facility maintenance -Medians and roadside maintenance Not answered Not answered Landscape maintenance in "mini-parks" -Right of Way landscaping -Park janitorial (restrooms) -Litter -Raking sand -Tree trimming How are contracts selected? Focus on best service Evaluate quality & price Past performance and lowest bid Not answered Contracts are formally bid Focus on best service DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 205 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F How is contract performance monitored? What are common metrics used? -Monthly inspections -Points/money deducted for not meeting specified criteria -Checklist based on requirements and specifications -No common metrics Direct inspection and written reports based upon detailed contract specifications Not answered Not answered -3 inspectors and 1 supervisor inspect all contracted work areas -Regular communication with contractors What partnerships do you have with other organizations or business (e.g., shared services, joint purchase or cooperative arrangements) for services? Equipment? None None Not applicable Not answered Not answered None Best Practices and Innovation: Please describe any best practices or innovative approaches you've incorporated in each area Calsense for irrigation controllers and Musco control link for athletic field lighting Contract most services -Installed ET-Weather based computerized irrigation systems on any new installations as well as retrofitting existing systems -Do not allow turf on medians, and only plant drought tolerant species Not answered Not answered -CFD's for trail maintenance expenses -Contracting janitorial services -Some use of part time staffing (1,000 hrs max) Parks: Number of parks or sites 18 37 56 Not answered 21 37 DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 206 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Baseball/Softball Fields: # maintained in-house 0 0 4 (4 synthetic) Not answered 0 19 Baseball/Softball Fields: # contracted maintenance 8 24 14 Not answered 14 0 Baseball/Softball Fields: maintenance type Active Maintenance Active Maintenance Active Maintenance Not answered Not answered Active Maintenance Soccer Fields: # maintained in-house 0 0 6 (5 Synthetic) Not answered 0 2 Soccer Fields: # contracted maintenance 1 12 14 Not answered 12 0 Soccer Fields: maintenance type Active Maintenance Active Maintenance Active Maintenance Not answered Not answered Active Maintenance Football Fields: # maintained in-house 0 0 0 Not answered 0 0 Football Fields: # contracted maintenance 0 0 1 Not answered 2 0 Football Fields: maintenance type Not answered Not answered Active Maintenance Not answered Not answered Active Maintenance Multipurpose Fields (please list here): # maintained in-house Not answered Not answered Not answered Not answered Not answered 18 Multipurpose Fields (please list here): # contracted maintenance Not answered Not answered Not answered Not answered Not answered 0 Multipurpose Fields (please list here): maintenance type Not answered Not answered Not answered Not answered Not answered Active Maintenance Dog Parks (please list here): # maintained in-house Not answered Not answered Not answered Not answered Not answered 3 Dog Parks (please list here): # contracted maintenance Not answered Not answered Not answered Not answered Not answered 1 Dog Parks (please list here): maintenance type Not answered Not answered Not answered Not answered Not answered Active Maintenance DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 207 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Preserve Management Cost Total costs (personnel services, operations, capital, contract costs) for preserve management. (Please use definitions on survey definition and general tabs to scope your response) Not answered $122,050 Not applicable Not answered Not answered $247,000 (Two year average, costs reduce as preserve matures) Preserve Management Workload Preservation land- preserves and conservation areas: acreage maintained in-house Not answered 0 Not applicable Not answered Not answered 0 Preservation land- preserves and conservation areas: acreage contracted maintenance Not answered 0 Not applicable Not answered Not answered 38 Tree Maintenance Cost Total costs (personnel services, operations, capital, contract costs) for tree maintenance. (Please use definitions on survey definition and general tabs to scope your response) $34,900 $140,000 $1,071,698 Not answered $416,080 $30,000 Tree Maintenance Workload Trees maintained (if number not available, please provide % split between in-house and contract): # maintained in-house 0 Total not provided (0% in-house) 840 Not answered 0 Total not provided (50% in-house) DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 208 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Trees maintained (if number not available, please provide % split between in-house and contract): # contracted maintenance 3100 Total not provided (100% contracted) 11,500 Not answered 15,500 Total not provided (50% contracted) Trail Maintenance Cost Total costs (personnel services, operations, capital, contract costs) for trail maintenance. (Please use definitions on survey definition and general tabs to scope your response) $72,080 $18,205 NA Not answered $243,920 $207,000 Trail Maintenance Workload Length and type of trail Dirt: Length (miles) contracted maintenance 40.5 0 Not answered Not answered 11.1 0 Dirt: Length (miles) maintained in-house Not answered 0.5 Not answered Not answered Not answered 0 Gravel/crushed rock: length (miles) maintained in-house Not answered 0 Not answered Not answered Not answered 3 Gravel/crushed rock: length (miles) contracted maintenance Not answered 3 Not answered Not answered Not answered 30 Paved: Length (miles) contracted maintenance Not answered 0 Not answered Not answered 3.2 7 Paved: Length (miles) maintained in-house Not answered 6 Not answered Not answered Not answered 20 Park Maintenance General Does the department use a Computer-aided Maintenance Management System (CMMS)? No Yes-Comcate Yes- Quest System Not answered No No (Hope to move to Lucity and GBA) DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 209 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F What incentives or disincentives does the city use for managing parks maintenance contracts? -Monthly inspections -Points/$ deducted for not meeting specified criteria -Penalties to contractors with work deficiencies -90-day notice & termination -Minimum manpower and minimum equipment contracts with detailed specifications -Deficiency and deduction notices Not answered Performance -30 day notice that contract will be terminated if performance isn't improved -Weekly inspections done, notice of deficiency if not performed adequately Indicate parks maintenance activities that are contracted (below) and why. Pest Control More cost effective More cost effective -Contractors required to perform all pest control for assigned areas -In-house pesticide personnel for roadsides and in-house parks Not answered Not answered Requires specialized licenses or certifications Concrete Repairs More cost effective More cost effective Requires specialized equipment Not answered Not answered Insufficient in-house staff All maintenance activities More cost effective Not answered Not answered Not answered Not answered Not answered DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 210 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F How do you staff weekend parks maintenance activities? Not answered Contractors for trash and janitorial -Contractors required to perform all weekend trash removal in contract parks -In-house staff for in-house parks during summer months only Not answered On call staff Contract Maintenance Custodial Do you contract custodial services? If so with whom? Yes Yes Not answered Not answered Not answered Yes Which custodial activities are contracted? Outdoor bathroom maintenance All janitorial services for all buildings Not answered Not answered Not answered -Restrooms -Litter -Site furniture cleaning -Playground/volleyball sand raking Landscape Maintenance Describe the method of deploying in-house resources for landscape maintenance activities. Geographic ownership No in-house resources for landscape maintenance Not answered Not answered Not answered Group style (Convergence) DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 211 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Are you considering the expansion of synthetic turf for playing surfaces? Why or why not? Yes No Not answered Not answered Yes-Demand Yes Trees What type of tree maintenance is used? If proactive, describe the approach and cycle time. Reactive Proactive- 3-6 year cycles depending on park and tree species Proactive- 3 year cycles based on grid pruning and service request pruning Not answered Proactive- Block trimming based on annual budget Proactive- pruning, damage control; Fall and winter pruning cycle. What method is used to deal with emergency tree requests? Contracted Contracted Contracted- For large storm events, city staff to organize contract crews and city staff crews Not answered Contracted- Contractor is called once staff ascertains need Combination- large projects requiring a bucket truck are contracted; smaller projects are in-house What is the size and structure for in-house crews for regular tree maintenance? 0 None -Use a one or two man crew for small tree maintenance on a varied schedule -In-house crews are not scheduled on a daily basis, but rather on an as needed basis Not answered None 3 per crew DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 212 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Describe the reason for using this crew structure and size. Not applicable More cost effective Able to accommodate specific customer requests quickly Not answered Not answered Budget and staffing constraints vs. size of job DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 213 Recreation Survey Responses Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Costs and Revenue: Total Annual Cost (per category) $1,728,685 -Does not include administrative services or recreation programs enterprise fund; amounts are from the enterprise fund $2,519,598 $8,251,502 $4,935,890 Not answered $2,385,352 Personnel Services (expenditures for all salaries, wages and benefits) $1,162,035 $1,398,179 $4,400,094 $2,287,400 Not answered $1,408,036 Operations (expenditures for all functions, excluding contracts) $57,350 $700,707 $1,854,133 $1,688,490 Not answered $977,316 Capital (expenditures for capital equipment and projects and debt services paid from operating funds) $0 $315,947 $26,450 $390,000 Not answered $0 Contract Costs $509,300 $104,765 $1,970,825 $570,000 Not answered $0 Annual Revenue from Fees & Charges $0 $841,019 $4,434,129 $1,355,040 Not answered $1,835,630 Staffing: DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 214 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Number of Full Time Staff: Management Only (Director, Deputy, Superintendent, Division Manager, etc.) 1 5 5 5 Not answered 2 Number of Full Time Staff: Non-Management Only (workers, coordinators, field supervisors, etc.) 9 9 25 15.5 Not answered 11 Total Part Time Staff Hours/Year 8,000 18,995 63,000 32,282 Not answered 100,000 Number of Volunteers per Year Not answered Not answered 225 650 Not answered 3,000 Total Annual Volunteer Hours Not answered Not answered 20,800 34,000 Not answered 50,000 To what type of board does your department report? Governing board (approves policies, budgets, etc.) Not answered Advisory board (reviews, policies, budgets, etc.) Advisory board (reviews, policies, budgets, etc.) Not answered Multiple boards (governing and advisory) Contracted Services: DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 215 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Which services do you currently contract for? All maintenance activities Not answered -Janitorial -Recreation contract instructors -Maintenance services -Adult sport officials -Specialized repairs and services (A/V, A/C, indoor plant maintenance, etc) Enrichment classes Not answered -Restroom cleaning -Major repairs -Class instructors How are contracts selected? Focus on best service Not answered Focus on best service Focus on best service Not answered Focus on best service How is contract performance monitored? What are common metrics used? Regular inspections Not answered -Participant and staff evaluations for instructors, staff reviews Not answered Not answered -Real Property Services inspectors do daily inspections for cleanliness, odors, trash, appearance DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 216 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F What partnerships do you have with other organizations or business (e.g., shared services, joint purchase or cooperative arrangements) for services? Equipment? None Not answered -Shared services with nearby city for recreation classes and aquatic staff trainings -Cooperative arrangements with local conservancy, aquatic center, theater/arts program Schools Not answered -Unified School District joint use agreement of fields and recreational areas -Joint use agreement with theater district for future recreational lake/park facility-Joint use agreements and MOUs with youth sports groups, historical society, local college Best Practices and Innovation: DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 217 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Please describe any best practices or innovative approaches you've incorporated in each area Enterprise Fund for programs Not answered Not answered Not answered Not answered -Activenet registration -Volunteer ranger program-Use of student volunteers from high school clubs for special events -"When to Work" staff scheduling -Survey Monkey for event evaluations Recreation Counts # of Recreation/Community Centers 1 1 12 1 Not answered 13 Total Square Feet of Recreation/Community Centers 38,000 4,500 85,000 24,000 Not answered 110,000 # of Recreation classes (sessions/yr) 1,170 275 10,500 400 Not answered 20,075 Total participation in all classes (total annual enrollment) 11,900 2,900 35,000 5,600 Not answered 554,250 Special events attendance 20,000 25,400 12,500 Not answered Not answered 29,850 Senior Service Counts # of senior center locations 1 1 1 1 (Shared with community Center) Not answered 2 DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 218 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Senior individuals participating (people) 2,600 1,847 10,000 Not answered Not answered 17,650 Senior center use (total visits per year) Not answered 47,942 165,000 Not answered Not answered 138,800 Historic Parks Counts Number of historic park locations 0 0 0 1 Not answered 1 Total historic park attendance 0 0 0 14,500 Not answered 2,500 Rental Counts # of rentals processed (facility, field, structure, etc.) 424 13,400 1,500 858 Not answered 2,015 Community center or senior center rooms 412 Not answered Not answered 701 Not answered 295 Park shelters 0 Not answered Not answered 451 Not answered 278 Athletic Fields 12 Not answered Not answered No reservation count -Hours used (13,700) -Participants (110,100) Not answered 981 Aquatic Facilities 0 Not answered Not answered 555 Not answered 190 DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 219 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Other 0 Not answered Not answered 465 Not answered -48 Historic House -120 Historic Barn -Recreation Center 25 -41 Nature Center Recreation General What method do you use to compensate your instructors? % of revenue % of revenue % of revenue % of revenue Not answered % of revenue If % of revenue, what share (%) goes to the instructors? 60% 70% Activity dependent 60% Not answered 60-70% What are the standard hours of operation for your recreation/community centers? Mon.-Sat. 8 am - 10 pm; Sun. 12 pm - 5 pm Mon.-Fri. 7:30 am - 5:30 pm Mon.-Thurs. 8 am - 9 pm; Sat. 8 am - 2 pm 8 am - 10 pm Not answered 7:30 am - 9 pm Is your current recreation fee schedule online? If not, could you please provide it? Yes Yes Yes No Not answered Yes DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 220 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Who manages major special events on parks and recreation property? -Parks and recreation staff city events -Private staff for private events -City staff provided for private events at the center for set-up/clean-up and booking Parks and recreation staff Parks and recreation staff Parks and recreation staff Not answered Parks and recreation staff Senior Services What is your most successful senior program in terms of participation? Yoga Exercise to Music -Fitness classes -Senior transportation services and fitness center Not answered Not answered Exercise classes What senior services do you currently outsource or provide through a contract with a vendor (please list all)? Nutrition and out & about programs provided in-house -Lunch -HDM -Transportation -Exercise & recreation classes -Nurse -Lectures & workshop -Bingo -Fee based recreation classes -Meals on Wheels -Craft store/travel office Not answered Not answered -Senior nutrition meals -Contract classes -Taxi vouchers for medical transportation Historical Parks DRAFT – FOR DISCUSSION PURPOSES ONLY  City of Carlsbad, CA Appendices (cont.) Page 221 Comparable A Comparable B Comparable C Comparable D Comparable E Comparable F Does your parks department oversee the operations and programming of any historic sites? No No No Yes Not answered No If your municipality has historic sites that not operated by parks and recreation, who operates these sites? Not applicable Not applicable Not applicable Volunteers Not answered Historical Society Rental Who processes parks and recreation facility and field rentals (booking, set-up, paperwork, payment)? Parks and recreation staff only Parks and recreation staff only Parks and recreation staff only Parks and recreation staff only Not answered Parks and recreation staff only If handled by the Parks & Recreation department, are rental services centralized within the department or handled separately depending on the facility? Department centralized Handled by facility independently Some handled by the department, some handled by facility independently Department centralized Not answered Some handled by the department, some handled by facility independently Please describe any rental services you current contract. Not applicable Not applicable None None Not answered None Is your current facility and field rental fee structure currently online? If not, could you please provide it? Yes Yes Yes No Not answered Yes