HomeMy WebLinkAbout2013-03-12; City Council; 21162; Transportation Dept Operational Assessment ReportCITY OF CARLSBAD - AGENDA BILL 17
AB# 21.162
TRANSPORTATION DEPARTMENT
OPERATIONAL ASSESSMENT REPORT
DEPT. DIRECTOR
MTG. 3/12/13 TRANSPORTATION DEPARTMENT
OPERATIONAL ASSESSMENT REPORT CITY ATTORNEY
DEPT. MGR
TRANSPORTATION DEPARTMENT
OPERATIONAL ASSESSMENT REPORT CITY MANAGER Ui^
RECOMMENDED ACTION:
Accept the Transportafion Department operational assessment report from Baker Tilly and
direct staff on how to proceed.
ITEM EXPLANATION:
As a part of its fiduciary responsibility to the Carlsbad community, the City Council strives to
ensure that top quality services are consistently delivered at the best value to taxpayers. To
ensure best value is achieved, city staff developed the framework for a Best Value Services
Program that compares the cost and quality of city services to industry best pracfices and
comparable services delivered by the public and private sectors. On Sept. 20, 2011, the City
Council approved the framework and authorized city staff to begin to refine and implement
the program.
On Jan. 24, 2012, the City Council approved a master agreement with Baker Tilly Virchow
Kraus to assist with the Best Value Services Program. Baker Tilly is the 16*^ largest CPA and
consulfing firm in the U.S and specializes in accounfing and management consulfing. In
addition, the firm brings significant experience from work completed in both the public and
private sector.
In July 2012, city staff and Baker Tilly began to work with the Transportafion Department on
an operational assessment. The operational assessment is an independent review of a
department's lines of business, in terms of their cost, methods and quality of service. It is
important to note that the focus of the report was to identify opportunities to provide the same
high level of quality programs and services at a lower cost. No reductions in services were
contemplated.
The operational assessment for the city's Transportafion Department has been completed
and reviewed by staff to ensure that the data was accurate and the methodologies were
applied appropriately. The executive summary ofthe report is included as an exhibit to the
agenda bill. A copy of the complete report is available in the Office ofthe City Clerk.
DEPARTMENT CONTACT: Greg Hermann 760-434-2958 greg.hermann@ )carisbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED • CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER-SEE MINUTES •
AMENDED • Council directed staff to proceed with Option
No 2 as amended. See Minutes for details.
There are a variety of acfions to be considered based on the findings in the operafional
assessment from Baker Tilly. Staff is recommending that the following processes be used in
addressing them:
- Recommendations involving operafional efficiencies will be reviewed and
implemented at the discretion of the City Manager and Transportation Director.
- Recommendations on fee and revenue changes will be evaluated and addressed
through the FY 2013-14 budget process.
- Recommendafions involving changes to the Memorandum of Understanding with
the Carisbad City Employees' Association (CCEA) will be addressed through the
meet and confer process.
Baker Tilly's assessment includes a finding that significant savings could be achieved by
contracting out all traffic signal operations to a private sector provider. The department
already contracts for a significant amount of traffic signal operations activities. If the City
Council wishes to pursue contracfing for addifional traffic signal operafions services, the City
would first be required to safisfy its obligafion to meet and confer with CCEA regarding both
the decision and effects of contracfing out those services.
The Traffic Signal Program is identified as a City Council Priority Project. As such, over the
past few years the Transportafion Department has been implemenfing a Capital
Improvement Program (CIP) project to upgrade the city's traffic signal technology under the
Traffic Signal Program. The program upgrades deficient or outdated traffic signal equipment
and synchronizes signals on major roadways to improve traffic flow and provide remote
access to traffic signal operations for ali major traffic signals through a traffic management
center. The implementation of this program involved the allocafion of short and long term
resources through both the CIP and increased department staffing. Currently, 3.9 PTEs are
required to support both the ongoing traffic signal operafions and the CIP unfil the
complefion of all the signal upgrades and full implementafion ofthe proposed traffic
management center. Staff esfimates that when completed in two years an ongoing
allocafion of only 1-2 PTE will be required to support the system.
Traffic signal repair and maintenance is one of the activifies within the traffic signal
operations line of business. The city currently contracts with a private sector provider for
traffic signal repair and maintenance. The contract runs through December 2013 with the
opfion of one additional two year extension. The Transportafion Department will be required
to solicit for new proposals for these services when the contract expires.
City staff has developed three options for the City Council's consideration with respect to
contracfing for all traffic signal operations:
1. Direct staff to pursue contracfing out for all traffic signal operation services when the
current traffic signal maintenance contract ends in December 2013 and begin the meet and
confer process if applicable.
2. Confinue with implementation of the traffic signal program as currently planned and
pursue contracting out for all traffic signal operafions activifies in December 2015. This
opfion would allow for the complefion ofthe traffic signal program providing a more accurate
cost baseline for comparisons to alternate service delivery opfions. It would also coincide
with a required request for proposals process for traffic signal maintenance. This would
allow an opportunity to solicit proposals for all traffic signal operafions, including traffic
signal repairs and maintenance. This would begin the meet and confer process at that fime
if applicable.
3. Do not pursue contracfing all traffic signal maintenance and operafions. This would
result in confinued use of contract services for signal maintenance and repairs. The
operations, signal fiming, traffic management center, and overall management would
continue to be provided by staff.
Staff is seeking direction from the City Council as to whether they wish to select one of
these options. Staff recommends selecting opfion #2 based upon the timing ofthe traffic
signal program and traffic signal repair maintenance contract previously discussed.
Other opportunities identified in the report for contracting will be evaluated at a later fime. If
the Council does not wish to pursue contracfing any ofthe services identified in the report,
then the remainder of the recommendafions in the report will be handled as stated above.
FISCAL IMPACT:
A total of 44 opportunities with a range of $1.56 million to $2.42 million annually in esfimated
potenfial savings or resource reallocafions are included in the operational assessment.
If the Council does not wish to pursue contracting any of the services identified in the report
the savings will depend on the remainder of the recommendafions in the report that are
ulfimately implemented.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code secfion 21065, this action does not constitute a "project"
within the meaning of CEQA in that it has no potenfial to cause either a direct physical
change in the environment, or a reasonably foreseeable indirect physical change in the
environment, and therefore does not require environmental review.
EXHIBITS:
1. Execufive Summary from the Transportafion Operational Assessment conducted by
Baker Tilly.
55h'bif I
City of CaHsbad Transportation Department Operational Assessment
Executive Summary
The City of Carlsbad (hereinafter, "the city") is known for providing an extremely high level of service. The
city consistently receives a high level of satisfaction from residents in its annual public opinion survey. The
most recent survey, from 2012, showed that 97 percent of residents rate the city's quality pf life as good
or excellent, and 94 percent are satisfied with the job the city is doing providing sen/ices. 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 organizafion - 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. Baker Tilly completed their review of the Parks & Recreation Department in July 2012
and then began work on the second department. Transportation. This report summarizes the results of
the operational assessment ofthe Transportation 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: Street Maintenance - Asphalt (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 Transportation at the
lowest cost to taxpayers.
The Department of Transportation has been carefully assessing their organization during the past two
years subsequent to their creation as a separate department. The transition from a subcomponent of a
larger department to an independent department, has allowed them two years to evaluate positions,
consider approaches to service delivery and alternatives for delivery of service (i.e. high level of
contracting already). The department also had the benefit of lead time prior to the official operational
assessment to not only prepare for the assessment, but also to conduct internal discussions regarding
specific process improvements in anticipation of a thorough review ofthe department. As such, they
began implementing several operational and organizational modifications.
The review completed in this report spans the full continuum of options available to the city relative to the
delivery of Transportation functions. A total Of 44 opportunities with a range of $1.56 million to $2.42
million annually in estimated potential savings or resource reallocations are included in this report. The
level of opportunities while considerable is lower than the first operational assessment conducted for
Parks & Recreation given several factors including the additional lead time to prepare for the study.
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.
Prepared by Baker Tilly Virchow Krause, LLP Page 1 4
City of Carisbad Transportation Department Operational Assessment
Overall these opportunities are as follows:
Line of Business Opportunities Number
Anticipated
Minimal Savings
Department Organization Operational Efficiencies 6 TBD
Overall Operational Efficiencies 4 TBD
Bargaining Agreement 1 $ 265,000
Street Maintenance Operational Efficiencies 7 $ 69,000
Traffic Operations Operational Efficiencies 4 None
Outsourcing 1 $ 153,000
CIP/Asset Management 5 TBD
Traffic Signal Systems Operational Efficiencies 6 $ 618,000
Outsourcing 1 $ 435,000
Construction Management & Inspection Operational Efficiencies s; $ 2,000
Shared Service/Outsourcing $ 16,000
Revenue Enhancement
•
TBD
Total $ 1,558,000
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.
In summary, our analysis indicates the following options would provide the most significant savings or
operational efficiencies to the city:
> Create a lifecycle management system for projects across city departments and force
automafing of key workflow and approval processes: A significant number of manual and
ineffective processes and reporting functions relative to many transportation related project
management, but especially the construction project management function, could be eliminated
to reduce reliance on paper documents, and improve the level of information required for data
driven decisions and enhance effective cross-department information sharing. The savings
anticipated relative to this opportunity will directly relate to the functionality ofthe selected system
and process modifications adopted.
> Conversion from a traditional vacation/sick leave to Paid Time Off: This option considers the
industry trend towards switching to a PTO program. Based upon current studies, we estimate the
potential savings for the Transportation Department at $265,000. The city already provides an
incentive to conserve sick leave as any unused balances are applied to an employee's service
with the city upon retirement.
Prepared by Baker Tilly Virchow Krause, LLP Page 2 5
City of Carisbad Transportation Department Operational Assessment
> Modify the Traffic Impact Fee to include costs related to the development of the ATMS:
Here we consider passing the costs of the ATMS to the Traffic Impact Fee. Many jurisdictions
with an ATMS will often utilize this method as a way of minimizing costs. The anticipated fiscal
impact ofthis modification is approximately $500,000.
> Outsource traffic studies: The city could achieve substantial savings by taking advantage of the
many firms that are available to provide these services. A range of savings is estimated at
approximately $150,000 and $300,000.
> Outsource services related to traffic signal operations: A potential method of cost savings for
the city is to completely outsource all traffic signal operations, including signal timing, signal
modifications and repair, analysis of traffic data, ATMS management, and work order
management. The estimated savings to the City are between $435,000 and $1.1 million.
> Expand Use of Consultant Inspectors and Contract Managers to augment staff for
fluctuations in development impacting workload: Consider creating a more formal process
and strategic approach to determining how and when to augment an optimal level of staff with the
use of consultants given fluctuations in inspection and construction project management
workload. There may or may not be savings related to this based on the rate paid and whether or
not the frequency of the use of consultant staff allows the City to reduce inspection PTE. (i.e. the
anticipated outcomes ofthis are that is could reduce some overtime and may result in the need
for less fulltime staff if the level of development is reduced significantly in the future).
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 ofthe 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 through technology, process
reengineering and adoption of lean government practices.
> Strategic Use of Resources: The analysis also considered ways in which to enhance the
optimal use of existing resources by making changes to provisions ofthe collective bargaining
agreements. Analysis of position availability (i.e. actual productive hours to work) and specific
labor related issues were focused on in previous operational assessments and overall solutions
are being discussed on a city-wide basis. Our analysis in this report focused on providing similar
availability analysis to the previous reports for this department; however, the recommendations
were less focused in this area given the current initiatives in progress.
> Cost Sharing Arrangements: Consolidation of services and functions offers potential for
significant savings while preserving, or even enhancing, service levels. In addition to potential
cost reduction these arrangements can result in standardization, reduced processing times and
greater organizational communication.
> Managed Competition:. 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.
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 there is a considerable gap between what a vendor may charge for a sen/ice and what the city is
currently expending to deliver the service.
Prepared by Baker Tilly Virchow Krause, LLP Page 3 ^
City of Carlsbad Transportation Department Operational Assessment
> Expand Use of Consultant Inspectors and Contract Managers to augment staff for
fluctuations in development impacting workload: Consider creating a more formal process
and strategic approach to determining how and when to augment an optimal level of staff with the
use of consultants given fluctuations in inspection and construction project management
workload.
While many of these opfions offer signiflcant opportunifies to reduce the operating budget relative
to Transportation 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:
> 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, unfil the city makes decisions about the speclflc course of
action to follow and official request for proposal or bid processes are completed, the esfimates
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 wiil 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 perfonnance
metrics, enhanced formality ofthe 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.
Prepared by Baker Tilly Virchow Krause, LLP Page 4
Transportation
Operational Assessment
Staff Recommendations
March 12, 2013
Transportation Operational
Assessment
•Operational efficiencies already implemented:
–Asphalt grinder
–Mobile solutions
–Priority based signal maintenance
–Joint purchase agreements
–Business/work order systems
Transportation Operational
Assessment
•Other operational efficiencies to considered:
–Expand use technology
–Expand business intelligence
–Improve project management systems and processes
–Improve and expand performance measurements
–Other recommendations will be evaluated/implemented
as soon as practicable
Transportation Operational
Assessment
•Remaining operational efficiencies will be reviewed and
implemented at the discretion of the City Manager and
Public Works Director.
•Fee and revenue changes will be evaluated and
addressed through the FY 2013-14 budget process.
•Changes to the Memorandum of Understanding with the
Carlsbad City Employees’ Association (CCEA) will be
addressed through the meet and confer process.
Contracting for Services
Options to Consider
Option 1
Direct staff to pursue contracting out for all traffic signal operation services when the current traffic signal maintenance contract ends in December 2013.
Option 2
Continue with implementation of the traffic signal program as currently planned and pursue contracting out for all traffic signal operations activities in December 2015.
Option 3
Do not pursue contracting all traffic signal maintenance and operations.
Note:
•Options 1 & 2 will trigger the Meet and Confer process with CCEA (Decision/Effect)
Staff Recommendation
Option 2
–Allow for the completion of the traffic signal
program as planned
–Provide a more accurate cost baseline for
comparisons to alternate service delivery options
–Coincide with a required request for proposals
process for traffic signal maintenance
Contracting for Services
Options to Consider
Option 1
Direct staff to pursue contracting out for all traffic signal operation services when the current traffic signal maintenance contract ends in December 2013.
Option 2
Continue with implementation of the traffic signal program as currently planned and pursue contracting out for all traffic signal operations activities in December 2015.
Option 3
Do not pursue contracting all traffic signal maintenance and operations.
Note:
•Options 1 & 2 will trigger the Meet and Confer process with CCEA (Decision/Effect)
Questions
City of Carlsbad
Transportation Operational Assessment
Shelley Fulla, Senior Manager
March 12, 2013
Project Background and Objectives
> Operational assessment – Transportation:
Key component of the City of Carlsbad’s Best Value Services Program
Aligns with sustainable organization strategic focus area
Focused on providing the best quality at the lowest cost
Assists employees and managers in department to enhance service and
improve efficiency
> Analyzed Transportation Department operations to:
Evaluate department performance
Quantify current resource allocations and expenditures
Benchmark staff levels and service approaches
Ensure that the city’s resources and strategic priorities are aligned
Determine the feasibility of alternative service delivery approaches
1
Project Approach and Methodology:
Opportunities Continuum
2
Strategic Resource Alignment
Productivity Analysis Governance Enhancement Costs of Bargaining Agreement Contract Analysis Risk Assessment
Partnerships
Cost Sharing Arrangements Vendor Evaluation & Management Outsourcing and/or Managed Competition
Productivity Enhancements
Functional Analysis Lean Government Process Re-engineering Performance Management
Project Approach and Methodology
>Conducted staff interviews
>Reviewed documentation including service statistics,
financial information, polices and procedures, etc.
>Developed work breakdown structure to define levels of
service
>Comparison against industry benchmarks and best practices
>Comparison to similar regional municipalities
>Comparison to private sector salary data and informal cost
estimates by private vendors
3
Project Approach and Methodology
Transportation Department Lines of Business
Street Maintenance
and Operations
>Asphalt Construction
>Concrete Construction
>Electrical Shop
>Miscellaneous Road
Work
>Paint Shop
>Sign Shop
>Service Request
>Sign Shop
4
Construction
Management (CM) &
Inspection Services
>CM – General Compliant
Response
>CM – Insp. – Other
Depts.
>CM of CIP
>CM & Inspection of
Agreements - Private
>Insp. – ROW & Haul
Route Permit
>Stormwater Inspection
Services
Traffic Operations
>Traffic
Design/Transportation
Planning
>Traffic Engineering
Plan Check
>Traffic Requests
Project Approach and Methodology
Transportation Department Lines of Business Cont.
CIP/Asset Mgmt
>Asset Mgmt
>CIP Development
>Finance Districts
4
Traffic Signal Systems
>Signal Operations
>Signal Maintenance
>Traffic Management Center
Progress to Date
Transportation activities relative to enhancing efficiencies to date:
7
Invested in technology:
•Mobile solutions, wireless systems phone and communication equipment,
activity based accounting system software, activity based work order
systems, and software integration of business intelligence systems.
Repurposed staff activities to achieve efficiencies.
Implemented Automated Traffic Management System:
•Staff have become more efficient; able to fix/address issues in the office
when previously completed on site.
Summary of Opportunities
44 Opportunities $1.56M– $2.42M in annual cost savings,
revenue enhancements, and resource reallocations
5
Line of Business Opportunities Number
Anticipated
Minimal Savings
Department Organization Operational Efficiencies 6 TBD
Overall Operational Efficiencies 4 TBD
Bargaining Agreement 1 $ 265,000
Street Maintenance Operational Efficiencies 7 $ 69,000
Traffic Operations Operational Efficiencies 4 None
Outsourcing 1 $ 153,000
CIP/Asset Management Operational Efficiencies 5 TBD
Traffic Signal Systems Operational Efficiencies 6 $ 618,000
Outsourcing 1 $ 435,000
Construction Management & Inspection Operational Efficiencies 5 $ 2,000
Shared Service/Outsourcing 4 $ 16,000
Revenue Enhancement 1 TBD
Total $ 1,558,000
Best Value Services - Street Maintenance
Option Estimated Cost
Current Cost of Service
(In House – FY12 Direct &
Indirect Costs) % Difference
Option 1: Outsource
all Street Maintenance
Activities
$4,990,000 $4,206,609 15%
Option 2: Outsource
pavement markings
only
$970,000 $686,168 29%
9
•Recommendation to continue to provide services
primarily in-house
Best Value Services – Construction
Management & Inspection
Direct Costs Vendor A Vendor B Average of
Vendors
City of
Carlsbad
Total Costs – Vendor
Option $ 2,378,646 $ 6,835,746 $ 4,607,196 $ 2,044,646
Variance $ (334,000) $ (4,791,100) $ (2,562,550)
10
•Recommendation to continue to provide services
primarily in-house
Key Opportunities
6
> Create a lifecycle management system for projects across city
departments and force automating of key workflow and approval
processes.
> Conversion from a traditional vacation/sick leave to Paid Time Off
> Consider outsourcing traffic studies
> Consider expanded outsourced services related to traffic signal
operations
> Expand use of Consultant Inspectors to augment staff for
fluctuations in development of impacting workload.
Opportunity
Opportunity Description
Create a lifecycle management system for projects
across city departments and force automating of
key workflow and approval processes
Opportunity Amount TBD
Report Reference Pg. 88
7
Benefits:
Centralize data on all financial, project, budget, resources and
evaluation
Customizable project ranking and filtering capabilities
All project financial, fund, resource and operational quantitative
numbers are dynamically linked across multiple years
Supports effective “what if” scenario analysis and comparison
Helps establish and enforce best practices
Expanded self service for developers, homeowners and contractors
Anticipate a 10% efficiency savings on job duties
Opportunity Description Conversion from a traditional vacation/sick leave to Paid
Time Off
Opportunity Amount TBD
Report Reference Pg. 36
11
Opportunity
5.9% X 40 hrs./wk. X 52 wks./yr. X $40/HR X 54 employees = $265,075/year
Pros:
Affords employees a great deal of flexibility and choice in how their time
off is used.
Less administrative time is spent tracking the reasons for an employee’s
absences.
Cons:
Because PTO plans do not require an employee to specify the reason for
taking a day off, employees are sometimes inclined to view all of their
PTO as “vacation” time.
Opportunity Description Consider outsourcing traffic studies
Opportunity Amount $152,766 – $306,766
Report Reference Pg. 75
8
Opportunity
Cost Comparison Vendor A Vendor B
FY 11 Internal Cost $342,766 $342,766
Fully Outsourced Option $190,000 $ 36,000
Potential Savings $152,766 $306,766
Anticipated Savings for Outsourcing Traffic Studies
Benefits:
Require the development of clear criterion to warrant a traffic
study
Allows traffic engineer to focus on higher value added activities
Opportunity Description Consider outsourcing all services related to traffic signal
operations
Opportunity Amount $434,738 - $1,107,283
Report Reference Pg. 106
8
Opportunity
Cost Comparison Vendor A Vendor B
Current Internal Cost $1,483,902 $1,483,902
Fully Outsourced Option $1,049,119 $ 376,619
Potential Savings $ 434,783 $1,107,283
Potential Savings for Outsourcing Traffic Signal Operations
Opportunity Description Expand Use of Consultant Inspectors to augment staff
for fluctuations in development impacting workload.
Opportunity Amount $13,834
Report Reference Pg. 125
9
Opportunity
Current Costs Vendor Estimate
Total Cost $21,434 $7,600
Anticipated Savings $13,834
1 24 hours per payroll verification including site visits
2 Blended Rates of Contract Administrator, Office Assistant and Inspector
Potential Savings for Using Consultant Inspectors
Additional Opportunities
•38 additional opportunities with less impact.
These include a continuum of efficiency,
policy, organizational and outsourcing options:
•Mobile solution for all street crews
•Establish performance measures and collect data
on them
•Track life cycle costs on assets
•Utilize solar technology for traffic signals
•Develop self-service complaint resolution
functionality to initiate and monitor resolution of
complaints
14
Questions?
15