ADMINISTRATIVE REPORT
Date: November 27, 1995
Dept. File No. cm1-0770.cov
TO: Vancouver City Council
FROM: City Manager
SUBJECT: Progress Report - Better City Government
INFORMATION
The City Manager submits this report on behalf of the Corporate
Management Team for Council's INFORMATION.
COUNCIL POLICY
There is no applicable Council policy, although Council has approved a
number of resolutions authorizing the Better City Government program.
PURPOSE
This report updates Council on the implementation of the Better City
Government (BCG) program. It provides information on work on the
fifteen key initiatives previously approved by Council, outlines the
financial status of the program, and discusses implementation of the
Information Strategy, the Human Resource Strategy, and the
Communications Strategy. Companion reports on the implementation of
Integrated Service Teams and Community Policing provide additional
information in these major areas.
BACKGROUND
On December 8, 1994, Council approved a number of resolutions
authorizing the Better City Government program, including:
- endorsation of a Mission Statement, Values, and Objectives;
- endorsation of a program to reorganize around the City's major
processes, reduce the number of departments, and flatten
departmental organizations;
- approval of an interim reorganization (the present City
organization);
- endorsation of operating strategies including increased delegation,
decentralization, customer consultation, use of work teams, and
service standards and monitoring;
- endorsation of alternative service delivery models, including
technology based services (payment by phone, "fax back"
information, Internet), use of volunteers, professional
certification, partnerships, joint delivery, and contract services;
- widespread use of a process redesign model; and
- implementation of an Information Systems strategy.
In May of this year, Council approved a Better City Government
implementation report, which identified 15 key areas for review and
process redesign, and advanced three key supporting strategies - Human
Resources, Technology, and Financial. Two funding sources were
established to support this work: the Strategic Initiative fund, a
revenue budget amount of $1 million to retain consultants to facilitate
process redesign studies, and the Service Improvement Reserve, a reserve
of $4 million to fund implementation of changes where cost reductions
would repay the reserve, with interest.
The Better City Government program attempts nothing less than to change
and substantially improve the way the City does business. It is not a
move to downsize, but rather establishes a broadly-based process to
bring best practices into the City. On a broad scale, the Better City
Government program is set to review and redesign our processes, to use
technology effectively, and to make the best use of the talented people
who work for the City.
The City delivers good services today. We do not need to reform our
systems overnight. Our approach through Better City Government is based
on planned change, with regular reviews to ensure that our efforts are
targeted effectively, and that we are achieving results. This report
represents the first overall review. It is being provided to Council
ahead of schedule, so that Council members have the opportunity to be
updated, to review and to comment on our progress.
The Corporate Management Team believes that good progress is being made.
We are behind schedule in some areas, and on target in others. We
remain convinced that this is an appropriate direction for the City, and
that significant improvements in service and operating economies will be
achieved.
DISCUSSION
Organization and Operating Style
Our initial report in December identified the need for a change in
organization and operating style. The proposed organization changes
have been made. The Corporate Management Team meets at least every two
weeks, and operates more effectively as a result of its smaller size.
Members of the Corporate Management Team now report directly to Council
without necessarily going via the City Manager. In many cases, the
Managers have delegated the responsibility for finalizing reports to
their subordinates. This has reduced the number of steps involved in
reporting; placed more responsibility on staff; and reduced the total
time involved in preparing Council reports.
Most of the "style changes" advanced in the report are under active
consideration in some areas of the City.
- Technology services, in the form of the Internet and fax back
services, have been implemented.
- Work teams have been implemented broadly.
- Consultation with employees and service users have been introduced
in the process review programs which are underway.
More substantial changes in many areas will await the outcome of the
process reviews which are underway, but it is already clear that
substantial changes will be proposed.
Information Systems Strategy
The Information Systems strategy is being implemented. We have
completed, with the assistance of consultants, the definition of the
technology architecture required broadly for the City. The wide area
network is being implemented more broadly throughout the City. Faxback
services have been introduced, and our Internet presence is significant.
We anticipate implementing our own Internet server in the near future,
which will provide Internet access to all users of the local area
network.
Two additional studies will be carried out in this area. One will
review the City organizations dealing with information systems and
communications, as these two technological areas converge. The other
will examine the potential for a City broadband communications system,
which will bring data, image, and voice communications into a single
system.
Human Resources Strategy
Our program of staff training has been enhanced, as reported previously
to Council. Programs to return employees to work as soon as possible
and manage Workers Compensation costs have been implemented. A
fundamental review of the way in which Human Resource services are
delivered is underway, based on discussions with users. This will lead
to a proposal for decentralized operation, which will be reviewed by the
Corporate Management Team in the near future. Implementation will begin
early in 1996.
We have not yet had to deal with significant dislocation of employment
as a result of the process reviews that are underway. Human Resources is
working with service groups to determine strategies for relocating
employees. However, consistent with Council's approval of our re-
engineering and Human Resource strategies, we intend to achieve savings
through attrition wherever reasonably possible, and will retrain and
reassign staff to the greatest extent practical. Part of the strategy
included the establishment of a meaningful dialogue with civic unions.
The CMT has met with our Unions on a regular basis to discuss and share
information on BCG initiatives.
Review and Redesign of Systems
Our report in May identified fifteen areas where we would undertake a
fundamental review and redesign of our processes. These projects are in
various stages of development. None has yet been completed, and precise
statements of achievements are not yet possible. However, significant
improvements have already been achieved in some areas.
A Better City Government Coordinating Team has been established to
ensure that work is coordinated across departments, to avoid duplication
and to coordinate timing of implementation. The Team has provided basic
Request for Proposal documents and standard consultant contracts, and is
supporting the work of departments. This team is lead by Pat Kostuk
from Community Services and Sam Kuzmick from Corporate Services, with
membership from other key departments.
In virtually all cases, staff are the drivers in the review process,
from management to front line. Customers are explicitly identified, and
terms of reference require their involvement.
The status of each review is outlined below.
1. Development and Building Regulation
The review of the overall process of managing development is one of
the most complex we are undertaking. Management of development
ranges from planning and zoning to development, building, trades,
and occupancy permits. It covers many departments and draws on
many bylaws. It impacts developers, builders, and the public in
many ways.
Terms of reference were prepared for a "scoping" study of this
major review with Community Services' Managers. After broad review
within the Community Services group, and revisions to accommodate
the input from this review, the terms of reference were issued in
August. This study will identify the components which should be
addressed, identify initial steps which can be taken, and set out a
longer term program. Proposals have been received, and a
consultant has been appointed. The request for proposals
specifically identified the need to involve both staff and
customers in the review. A staff team is now commencing the
scoping study with the consultant's facilitation.
In parallel with this process, Community Services managers have met
regularly to identify actions that can be taken while the longer
term review process is underway; these conclusions were issued as
"What Can We Do Now".
Early this year, the General Manager of Community Services convened
a range of discussions involving many staff in Community Services.
Discussion notes were issued and reviewed widely. From these
notes, staff were requested to identify "key messages", which
formed the basis for a "Vision for the Results of Change" and
"Principles for the Change Process".
2. Community Consultation/Partnership/Community Policing
In our last report to Council, we noted that this would be one of
the most controversial and difficult areas we would examine. While
Community Services has a prominent role in this area, other key
departments involved in initial discussions include Police, Parks,
Engineering, City Clerk's, and City Manager's Offices.
We have approached this issue by identifying the wide range of City
public involvement processes, including education programs, local
area planning programs, advisory bodies, surveys, local improvement
programs, BIA's, community centre
associations, elections, and plebiscites. We concluded that we
could best review how our programs worked and how they should be
changed by linking them to the wide array of real public
involvement programs we now use.
The steering committee is meeting on an ongoing basis, and a
consultant will be retained. An initial information paper will be
prepared which will identify the role of local government in
delivering real programs that help create and preserve communities
and that deliver essential services. Existing public consultation
programs that relate to City operations will be described, and a
process to review these (and identify additional involvement
programs, if appropriate) will be defined. Public involvement
issues will be identified - e.g., City wide versus local
objectives, conflicting interests, minority and majority views.
This paper will be distributed broadly, and opportunities will be
provided for interest groups and the public to identify missing or
inadequate areas of involvement. Throughout the discussion,
however, we will attempt to focus the discussion on those areas
where the City delivers services - the real basis of local
government.
Once the review of the paper is complete, there will be a shift to
a review of real processes, with real participants. The consultant
team will be expanded to include survey capability and
multicultural expertise, and our processes will be evaluated by
participants and non-participants, through facilitated group
discussion, interviews, and surveys. The information gathered at
this stage will allow us to restructure and improve a broad range
of public involvement processes.
3. Vehicle/Equipment Management
The City operates a fleet with a replacement value in excess of $80
million. We will be reviewing all aspects of vehicle and equipment
management, including procurement, outfitting, operation,
maintenance, inventory, and disposal. The outfitting of new
equipment and vehicles has been identified as the first subprocess
for detailed review. Approximately 400 vehicles and pieces of
equipment are purchased annually, at a cost of $7 to $10 million,
primarily for Police, Fire, Parks and Engineering. Outfitting,
minor or major, is required on all equipment, and can involve the
welding, machine, carpentry, body, electrical, paint, tire, and
radio shops, and the garage.
A consultant has been selected to facilitate the process, and work
is underway. To ensure the review is employee driven, a staff team
has been established with good cross-sectional representation of
the employees involved in the outfitting process. Customers have
been identified, and the team and consultant will identify the best
ways to ensure that customers are fully involved.
Completion of this review is expected by year end, with
implementation in 1996.
4. Budget/Performance Management/Accounting Systems
As with Facilities Management, this project has been incorporated
into a comprehensive review of the entire Corporate Services
operation (see the section on Facilities Management for more
information).
5. Revenue Billing and Collection
This project is well into implementation. The entire Revenue and
Treasury division was examined, and the Division is being
reorganized around key processes. This structure will support one
stop shopping with a customer service emphasis. The review has
identified new ways to use technology to serve the public,
including electronic payments, debit and credit cards, and fax back
service. By-law Fines staff will be relocated from Alexander
Street to City Hall, resulting in savings in rent and operational
efficiencies. Some of these changes have already been implemented.
This review identified 28 major action plans in four phases over 28
months. Implementation began in September 1994, and many
improvements have been implemented to reduce cycle times,reduce
errors, and reduce costs while improving customer service.
Workload equivalent to three quarters of a position has been
reduced to date.
New processes are being designed to take advantage of the new
structure and technology. These changes should provide the
greatest benefits.
6. Facility and Building Management
The initial phases of this project, and the Budgeting, Accounting
and Performance Management project have been incorporated into a
comprehensive review of the entire Corporate Services operation.
This review will examine all
areas of Corporate Services, including the review projects
currently underway, and produce a revised program and timetable for
all Corporate Services based re-engineering.
This overall review began in September, and will be completed in
February, 1996. It will produce some immediate results, and
provide the basis for further detailed re-engineering work.
7. Licence and Regulate Business
This review will proceed on two levels: one will deal immediately
with the licensing systems in place, and one will review by-law
enforcement processes and do a revision of bylaws. Consultants
have been appointed to assist in the initial systems review and
work is underway with a staff team.
The initial licensing systems review should be completed in early
1996. Implementation of initial changes should begin in the second
quarter of 1996, after the rush of 1996 licence renewals is
complete.
The by-law review will take place in parallel with this effort.
Again, staff and customers will be involved as an integral part of
these reviews.
8. Solid Waste Management
The review of Solid Waste Management will include garbage
collection, containerized pickup, Blue Box recycling, City
cleanliness (street cleaning, litter, abandoned waste), commercial
can account and billing procedures, composting, and landfill
operations. Initiatives in this area to date are:
- Development of terms of reference for a consultant to
investigate the competitive capability of the City s
containerized pickup operations and to recommend changes, if
necessary.
- Creation of a task force to define objectives for the
Sanitation Branch, including better service, cost efficiencies
and reduced absenteeism. An initial review of the garbage
collection and recycling operations is underway. The task
force includes good cross-sectional representation from
employees, union representatives, and management. A report on
a restructuring initiative for the collection operation was
presented to Council in November. It is anticipated that this
restructuring will result in significant productivity
improvements.
The next phase of the review will cover City cleanliness, where
restructuring for a more effective cleaning operation will be
examined, including greater citizen responsibility for the
cleanliness of the City.
9. Payroll/Benefits Records Processing
Phase I of this project is into implementation. The physical
relocation of Human Resources staff to Payroll took place in late
May. Prior to the review, complex paper work, fragmentation of the
process, and a very high number of administrative steps were
prevalent. Combining the staff and the process into a single unit
and adoption of new technology will allow significant
simplification and efficiency. Some departments have now been
trained to enter staff attendance information directly on-line,
saving staff time in Payroll and Information Services.
A project team consisting of staff from Accounting, Fire, Human
Resources, Police and Payroll, with an analyst from Information
Services, is working on systems enhancements identified in the
original review. Phase II will have enhancements to the current
system in the future.
As previously reported to Council, this phase of the project will
significantly reduce processing times.and staff requirements. The
first stage, alone, will generate a reduction of up to two
positions in this area.
In addition, there will be a major project commenced early in 1996
to replace existing payroll and employee information systems. The
focus is to have information inputted on-line, real-time by field
staff. Achieving this will significantly cut down on duplicate
efforts as well as increase the reliability of the data. Once
implemented, we could see significant service improvements and
staffing changes.
10. Fire Operations
Fire Services initiated the Strategic Planning process in parallel
with the Better City Government initiative. The Strategic Plan
identified a number of improvement areas in Fire Operations,
Prevention, and Support. A citizen s advisory committee has been
established, which is advising on the implementation of the
Strategic Plan.
Strategic Plan initiatives in Fire Operations include development
of standard operating guidelines; enhancement of medical services;
greater identification of Fire Halls with the community (Fire Halls
have been renamed with community names, and halls have provided
venues for local concerts and meetings); and greater integration
with City Hall processes.
Extensive upgrading of rescue procedures has been achieved, with
implementation of High Angle rescue, development of training for
neighbourhood emergency response, and development of Heavy Urban
Search and Rescue capability (in conjunction with other
departments).
The Fire Department role in the development control process is
being modified to provide earlier notice of issues, utilize light
duty firefighters in processing, and automate processing of fire
approvals. Similar improvements are proposed for the inspection
process, including consideration of a "self-inspection" program.
Existing resources have been reallocated to increase the number of
training officers, and expanded training is under development.
Pre-employment training is being investigated, and the new training
site is being developed.
The major Better City Government Fire effort is review of
deployment of staff, equipment, and fire halls with the assistance
of a consultant. This study, which is underway, will examine
standards for service delivery, equipment, and number and mix of
personnel to meet present and projected demands, and establish
comparative benchmarks with other organizations. Changes in
operations to reduce costs while maintaining adequate service
levels will be examined. This is a very major review, which will
have significant implications for the delivery of fire and rescue
services in the City. A Steering Committee, including
Firefighter's Union representatives, the Chair of the Citizen
Advisory Committee, the Assistant City Manager, and senior Fire
staff participated in the review of proposals and the appointment
of the consultant. Project completion is scheduled for early 1996.
11. Police Operations
The Police Department initiated a strategic planning program some
years ago which defined a number of areas where significant
improvements could be made. Improvements in the use of technology
and changes in crime and administrative reporting processes have
been made and more are planned. Council has already approved
funding for voice mail and a two
phase project to permit direct data
entry of Patrol Officers' reports.
The introduction of Community Based Policing throughout the City is
the Department's most significant Better City Government
initiative. Notable achievements of this program to date have been
the establishment of Neighbourhood Safety, Police and Crime
Prevention offices; work with Integrated Service Teams; and the
creation of Citizen Advisory Groups. The Department is also
working through an organizational restructuring process which will
result in a more effective and efficient service delivery system.
The Community Based Policing initiative is reported fully in a
separate companion report.
12. City Clerk's Operations
The City Clerk's Office was one of the first to examine customer
service improvement. With the Better City Government program, this
was upgraded to a full process review. Users of the City Clerk's
services have been interviewed by the consultant facilitating the
process, and a staff team, assisted by the consultant and Pat
Kostuk, has undertaken a thorough review of processes in the
Clerk's Office. Both changes in operation and the use of
technology have been considered. Recommendations for changes have
been made by the staff team and implementation will follow.
13. Law Operations
The computerization of Legal Services, as previously reported to
Council, is now underway. Staff, with the guidance of the
consultant, have commenced Phase 2 of the computerization, to be
carried out over the next six months. During this phase, three
"core" teams (each made up of one lawyer and one support staff
person, under the direction of the Director of Legal Services as
Project Sponsor and Co-Project Manager), will build detailed work
programs in three areas:
- customer service
- legal service
- research
In each area, business work flows and procedures will be examined
in detail and refined, creating three prototypes to be implemented
on hardware and software selected for its suitability for the
Department's business needs. Training of staff in particular areas
required in the computerization will also take place during Phase
2. Phase 3, which will commence early in 1996, after the
Department's move to the new premises
in the VanCity Building, will see the implementation of the
prototypes which have been developed, and full training of all
Department staff. Standardized documents and databases and
customer service programs will be developed, document preparation
and management systems finalized, and research resources assembled.
Full implementation is expected to be achieved by the end of 1996.
14. Library Operations
The Library has initiated two projects addressing service
improvements. The first is tightly focused around the process by
which VPL selects and acquires materials for its collections. The
current process involves staff throughout the system, with many
steps and significant time involved. The review will seek to
identify a more efficient but equally useful process, and should
provide a model for the Library to undertake further process
reviews within the system. A consultant has been retained to
facilitate this process.
The second and much more major project is a Strategic Planning
Process initiated by the Board. This review will chart the
strategic direction for VPL for a five to ten year period. Much of
the overall review has already been completed. Extensive community
input is now being sought to identify priorities for Library
service, and identify those services for which fee for service can
legitimately be considered. This process will be concluded before
the end of the year.
15. Parks Operations
Parks has initiated three reviews of parts of its operation. The
first involves its janitorial, utility maintenance, and engineering
of systems for major Community facilities. (This review will
provide input to the larger review of facilities management which
will be lead by Corporate Services, with Parks, Fire, and
Engineering participation.) A staff team has been looking at
issues related to services to the Recreation Division and the users
of community centres, pools, and arenas. Staff are in the final
phases of reviewing options, and a recommendation will be made
within a month. Potential outcomes include a reorganization and
greater responsibilities for on-site staff, and changes in other
maintenance services. Recreation staff, who are both "customers"
for the service and the representatives of public complaints are
directly involved in the review.
The second review relates to the delivery of trades services --
from a request to change a light bulb to the major work required
during a shutdown of a building or a major renovation. This
project looks at priority setting, the definition of work,
communications with the employees generating the request, and the
management and timing of the project. Staff from all levels of the
building trade group are involved. Customer input has been
obtained through an initial survey of satisfaction and the
participation of staff in the community centres. This study will
be completed by early 1996.
The third study was identified in our previous report to Council -
a review of general parks operations. This project was initially
reviewed by staff and a list of issues developed. However, it
became clear that the assistance of a consultant to facilitate
scoping the review and identifying key areas for improvement was
essential. The terms of reference for the consultant will be
developed within the next month, including a requirement for user
involvement.
The Park Board will also be heavily involved in the review of
vehicle/equipment management being lead by Engineering Services.
16. Accounts Payable
This review process is well underway, with many changes implemented
and more underway. The original review identified 52 action plans
organized into four phases spanning 22 months. In the end, this
review will be merged with the Purchasing review and full
automation will be achieved.
The review identified problems of delayed payment of almost half
the invoices received, resulting in some cases in the loss of
discounts. About a third of payment vouchers contained errors,
requiring rework and resulting in delays. Changes to procedure and
ultimately automation will resolve these problems.
Backlogs have been cleared and cycle times reduced, one position
has been left vacant, and vacation relief has been reduced.
17. Purchasing
This was one of the original reviews, begun before the full Better
City Government program. Implementation began in May of 1994, and
is on schedule. The latter phases of the project require
automation and the use of technology. The requirements definition
for new purchasing software is underway.
This review has achieved significant reductions in cycle times in
almost all areas: up to 20% for tenders and offers, and 25% on
purchase orders. Use of a Field Purchase Order has significantly
reduced the time required for users to obtain small items in the
field, and reduced the number of minor
orders flowing through Purchasing by 40%. Redundant approvals and
authorizations have been eliminated or consolidated; errors have
been reduced; and some duplication of functions has been
eliminated.
The complement of staff has been decreased by about 3.5 full time
positions. As reported to Council, some of the resources freed up
have been redeployed to support the process redesign effort.
FINANCIAL IMPLICATIONS
As noted above, Council has approved the creation of two funding sources
for the Better City Government Program. The Service Improvement Reserve
is a revolving fund of $4.0 million utilized to finance service
improvements which are justified on a business case basis. To date,
projects totalling $767,700 have been approved by Council or the
Corporate Management Team. The Strategic Initiatives Fund is an
allocation of $1,085,400 in the 1995 Operation Budget, which is utilized
for consultant and other support for the process review program.
Projects totalling $920,900 have been approved from this source. A
summary of the approvals to date and the status of each of these
financing sources is attached as Appendix A.
This report makes reference to several ongoing process review projects.
These projects have been undertaken with a view to improve the way the
City functions rather than to reduce expenditures. This means
concentrating on the "value-added" steps and eliminating redundancies.
Our experience suggests that dramatic reductions in the number of steps
around processing an invoice for payment or processing a purchasing
requisition are achievable with the assistance of contemporary computer
technology. Other process changes will likely result in similar
elimination of steps. In many cases, this will mean real dollar savings
in the cost of government down the road.
For example, once implementation has been completed, the Purchasing and
Payroll/Human Resources projects are expected to result in savings
equivalent to more than 6.0 FTEs in addition to the substantial
improvements in services in those areas. As a result of these two
projects, and the one currently underway in Revenue and Treasury,
resources have already been reallocated to important systems development
work which is essential to achieve the full potential of the process
improvements. Other resources are being re-invested to staff the
process review teams in order to carry out the planning and project
management work associated with the process review initiatives. In the
longer term, Council may be in a position to again reallocate these
resources to areas of greater need or to reduce the operating budget.
We anticipate that similar results will come from the other process
improvement projects outlined in this report that will be initiated
across City departments. Future progress reports will document these
changes for Council.
COMMUNICATIONS PLAN
Communications around the Better City Government program have been much
more extensive than with other internal change programs. Newsletters
have been circulated to all staff, and senior managers have been
involved in working groups and extensive discussions with staff.
Nevertheless, this is one area of the program where more effort is
required. All the information from other change programs suggest that
too much communication is impossible. Even with the range of programs
identified in this report, many staff still say that little seems to be
happening.
In part, the Better City Government program is just now moving into full
swing. In part too, we have to increase our efforts to communicate to
our staff the nature of the program, where changes are taking place, and
when and how their area will be involved. This will require more
traditional communication, and a search for new ways to communicate more
effectively.
CONCLUSIONS
A review of the material presented in this report shows clearly that
major changes are underway in the City's basic business processes. The
process has been slower in its initial stages than we had hoped, but
significant changes have been made, and these projects will lead to
more. The Better City Government program will result in significant
improvements in service and operating efficiencies.
* * *