Public Works DepartmentWastewater Divisions Bid to Goal and

Public Works Department/Wastewater Division’s Bid to Goal and Pay for Performance Programs October 1, 2009 1

Goals & Description of Programs § Delivers Quality Services & Savings to Ratepayers, increasing accountability and public trust of Wastewater Division employees § Develops Competitive Budgets that beat a Private Market Proposal (PMP) developed by industry experts § Combines Bests Features of Private & Public Sector § Serves as a Performance Measurement System that develops team-oriented goals for rate-payers benefits. 2

Other Important Aspects Public employees are held accountable to a validated competitive standard. § Employees are involved in attaining savings to ratepayers via goals that result in operational efficiency and effectiveness improvements. § Additional Savings, beyond the private market proposal, are shared on a dollar-for-dollar basis between ratepayers and the Employee Efficiency Incentive Reserve (EEIR) Program ◦ funds team-based Gainsharing payments ◦ employee recommended reinvestments linked to improved operations and productivity § RESULTS: improved business awareness and meaningful workforce participation in allocating organizational resources 3

POAC (B 2 G) Program History § FY 97: MWWD P 4 P Program Starts § FY 98: WWTD Division Initial Public Contract Operation Agreement (PCOA) (i. e. Bid to Goal) § FY 02: WWC Division PCOA § FY 08: MWWD Dept-Wide PCOA 4

Recent B 2 G Accomplishments ü WWTD: In FY 1998, there were 373 positions. In FY 2009, there were 290 positions with the Division. ü PRISC Study, funded with $750, 000 of Bid savings in CY 06. Changing mix of chemicals = est. savings of FY 09 $1. 7 mil. ü Sanitary Sewer Spills decreased 600% from CY 2000 -08 (i. e. 2000: 12. 5/100 miles of pipe: 2008; 2/100 miles of pipe). ü Currently in Year 3 of 5 -Year Contract. ü FY 2009 Payout Pending (April/May 2010) 5

FY 2008 Financial Results BID $207, 157, 305 Actual $181, 868, 296 Savings $ 25, 289, 010 Percent 12. 2% 6

FY 2008 Performance Results Total Goals 32 Goals Fully or Partially Achieved Goals Not Achieved 28 4 7

Key Audit Findings & Recommendations Metropolitan Wastewater (First Dept-wide audit conducted for the new Bid) § Prepare reconciliations of total expenditures, out-ofscope items and encumbrances released as part of the financial reporting § Resolve contract issues with the Director’s contingency § Develop documentation for Department goals similar to that for Division goals 8

Current Status § Wastewater Division currently in the third of a five-year program § FY 2009 results being compiled – targeted for final release in March 2010 § City Audit Committee requested the City Auditor conduct a program audit § Currently underway § Estimated results in January 2010 9