November 22, 2005

SUBJECT:  Award of Contract to Matrix Consulting Group to Conduct an Optimal Staffing Study for the Department of Public Works

REPORT IN BRIEF

Approval is requested for the award of a contract to Matrix Consulting Group of Palo Alto in the amount of $90,000 to conduct an analysis of staffing in the Department of Public Works.  The study will review the cost effectiveness and quality of service provided by the Department through current staffing levels and assignments and make recommendations for improvements as appropriate.  The Special Project (825890 – Optimal Public Works Staffing Study) has the necessary funding available to complete the study.

BACKGROUND

In FY 2004/2005, the City started a multi-year effort of reviewing all the major departments in order to affirm that current management and staffing practices were resulting in the highest possible level of service for the dollars invested.  The Department of Public Safety was the first to undergo the process.  The analysis and initial recommendation phases of the study have been completed and a draft report is being prepared.  The recommendations will then be reviewed and an implementation plan will be developed by the Department for the City Manager’s approval.

The next department chosen to complete the review process is the Department of Public Works (DPW).  The annual operating budget for the Department of Public Works is approximately $79 million.  DPW provides a number of essential City services, including street tree services, maintenance of streets, curbs, gutters and medians; transportation operations; engineering services, and the operation of water, waste water, and solid waste utilities.  DPW has approximately 398,000 hours budgeted in FY 2005/2006 and constitutes the City’s largest operating department.  In addition, DPW is responsible for the largest portion of the 20-year capital improvement program.  It is important that the Optimal Staffing Study be undertaken to provide empirical data upon which to make staffing decisions. 

DISCUSSION

The City issued Request for Proposals (RFP) No. F0507-01 in July 2005 which invited proposals from consultants interested in performing an Optimal Staffing Study for the Department of Public Works.

The scope of the project included a comprehensive organizational analysis of the Department’s existing operations and current staffing levels.  The analysis was to be fact based and include all aspects of public works service provision including the areas of:

• water, sewer & storm drain operations
• property management
• trees and landscaping
• fleet management
• engineering
• solid waste & recycling
• traffic & transportation
• street maintenance
• street light maintenance
• water pollution control operations

Included in the scope of the project is an analysis of:

• Organizational structure including the division of labor and manager/supervisor span of control
• Effectiveness of staffing levels in each division, including but not limited to: staff assignments, planned leave, worker’s compensation leave, disability, workload, skill levels, training, and cost-effective shift scheduling in applicable areas
• The use of overtime
• Evaluation of the call-back system for after-hours service
• Benchmarks and other objective indicators of program effectiveness

Potential consultants were notified about the Request for Proposals through direct mailings and through the DemandStar by Onvia public procurement network.  Seven proposals were received, as follows:

     *As explained below, cost was only one of several evaluation criteria.

A selection committee made up of representatives of the Departments of Finance and Public Works as well as the Sunnyvale Employees Association reviewed the proposals.  Each proposal was evaluated, based on the following criteria as outlined in the RFP:

1.                  Adherence to the requirements of the Request for Proposals.

2.                  Depth of the project team’s experience and its relevance to the project described in this Request for Proposal.

3.                  Proposer’s understanding of the project requirements.

4.                  Proposed methodology and management plan for the project.

5.                  Proposed timeline for completion of services.

6.                  Total cost to the City.

Following review of the written proposals, three consultants were selected to continue in the process and were interviewed by the committee.  The committee has agreed that the proposal submitted by Matrix Consulting Group offers the best value to the City for the following reasons:

1.                  The consultant exhibited a strong analytical background and experience in the areas being studied.

2.                  The consultant's technical advisors are well accredited in their respective areas of expertise and have experience with similar studies in other agencies.  Matrix Consulting was previously selected by the City to conduct our Optimal Staffing Study of the Department of Public Safety, and staff was very well satisfied with their performance.

3.                  Review of studies prepared by the consultant for other agencies and contact with references indicate the consultant provides a high-quality product in a timely manner.

4.                  The consultant is able to meet the timeline at a reasonable cost.

5.                  The location of the consultant will aid in accessibility and ease of follow-up during the implementation stage.

Staff, therefore, recommends award of contract to Matrix Consulting Group of Palo Alto.

While the project will be under the management of the Department of Finance, a Steering Committee made up of members of both the Departments of Finance and Public Works, including both Directors, and representatives from the Sunnyvale Employees Association will oversee the work of the consultant.  The Request for Proposals requires the consultant to begin with a preliminary meeting with the Steering Committee within one month of the award of contract.  In addition, the consultant will meet with the Steering Committee on an ongoing basis to provide progress reports, share information and get direction, when necessary.  It is expected that the draft report will be completed within four months of the preliminary meeting.

FISCAL IMPACT

The total cost of the study will not exceed $90,000.  Special Project 825890 - Optimal Staffing Study for the Department of Public Works has funds in the amount of $100,000. 

CONCLUSION

The City of Sunnyvale has undertaken a multi-year effort to review major departments to ensure that management and staffing practices are resulting in the highest level of service possible.  The Optimal Staffing Study of the Department of Public Works is the second departmental review to be undertaken as part of this process.   An outside consultant is being contracted to provide an unbiased, fact-based analysis of current services and to make recommendations to improve services at the current level of funding, if appropriate.  Staff recommends Council approve the contract with Matrix Consulting Group.

PUBLIC CONTACT

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the Library and the City Clerk’s Office.

ALTERNATIVES

1.                  Award a contract in the amount of $90,000 to Matrix Consulting Group to conduct an optimal staffing study of the Department of Public Works.

2.                  Award a contract to a firm other than Matrix Consulting Group to conduct the optimal staffing study.

3.                  Do not conduct an optimal staffing study of the Department of Public Works.

RECOMMENDATION

It is recommended that Council approve Alternative 1, to award a contract, in substantially the same form as the attached draft and in an amount not to exceed $90,000 to Matrix Consulting Group to conduct an optimal staffing study of the Department of Public Works.

Prepared by:

Karen Miller

Department of Finance

Reviewed by:

Mary Bradley

Director, Department of Finance

Reviewed by:

Marvin Rose

Director, Department of Public Works

Approved by:

Amy Chan

City Manager

Attachment

A. Draft Consulting Services Agreement (.pdf)