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09-027 Matrix Consulting GroupCITY OF AGREEMENT ~~( ~/',~~ ~~~ CITY OF CUPERTINO ~'~' 70300 Torre Avenue u __y Cupertino, CA 95014 ~~~ ~ p- CuPERTIN ~-1 408-777-3200 NO.~ Q BY THIS AGREEMENT, made and entered into this 2nd day of March, 2009. by and between the CITY OF CUPERTINO (Hereinafter referred to as CITY) and Matrix Consulting Group Address 721 Colorado Avenue. Suite 101 City F'alo Alto Zip 94303 Phone 650.858.0507 (Hereinafter referred as CONTRACTOR), in consideration of their mutual covenants, the parties hereto agree as follows: CONTRACTOR shall provide or furnish the following specified services and/or materials: Review of the Community Development Department per the accented proposal prepared by Matrix Consulting Groun (attached). EXHIBITS: The following attached exhibits hereby are made part of this Agreement: Proposal. Exhibit A TERMS: The services and/or materials furnished under this; Agreement shall commence on 2/12/2009 and shall be completed before 4/30/2009 COMPENSATION: For the full performance of this Agreement, CITY shall pay CONTRACTOR: $39,800 GENERAL TERMS AND CONDITIONS Hold Harmless Contractor agrees to save and hold harmless the City, its officers, agents and employees from any and all damage and liability due to negligence, errors and omissions, including all costs of defending any claim, caused by or arising out of the performance of this Agreement. (amity shall not be liable for acts of Contractor in performing services described herein. Insurance Should the City require evidence of insurabilil:y, Contractor shall file with City a Certificate of Insurance before commencing any services under this Agreement- Said Certificate shall be subject to the approval of City's Director of Administrative Services. Non-Discrimination No discrimination shall be made in the employment of persons under this Agreement because of the race, color, national origin, ancestry, religion or sex of such person. Interest of Contractor It is understood and agreed that tFris Agreement is not a contract of employment in the sense that the relationship of master and servant exists between City and undersigned. At all times, Contractor shall be deemed to be an independent contractor and Contractor is not authorized to bind the City to any contracts or other obligations in executing this agreement- Contractor certifies that no one who has or will have any financial interest under this Agreement is an officer or employee of City. Changes This Agreement shall not be assigned or transferred without the written consent of the City. No changes or variations of any kind are authorized without the written consent of the City. ^ CONTRACT CO-ORDINATOR and representative for CITti' shall be: `J® ENTE~EE NAME Traci Caton. Administrative Assistant DEPARTMENT Community Development This Agreement shall become effective upon its execution by CITY, in witness thereof; the parties have executed this Agreement the day and year first written above. CONTRACT Title `S 1 ~ _ Tax ID /Soc. Sec_ # ~~ ~ - CJ~ ~~~~_ =~ wooOA\/AI C CBy~~~PEFiTINc~~~ ~~ Q,L\~ 3.~ Title Dave Knapp. City Manager EXPENDITURE DISTRIBUTION ~r r RT EIdT H AD DATE -- -- DEPA ~/// X09 !! -7 0 - o •~ CI ERK DATE ~r~ ~, Exhibit A Proposal to Condiuct an Evaluation of the Permiit Process CITY OF CUPERTINO, CALIFORNIA matrix consulting group Richard Brady ~z, Colorado Avenue, Suite 10I President Palo Alto, CA 94303 65Q 858 A507 65Qf'~58.0509 fax e-mail: rbratly@matrixcg.net t'Ylc~tl~IX: €:onst-~Itir~g grt;up 721 Colorado Avt~nue, Suite 101 Palo Alto, California 94303 (v) 650.858.0507 ifl 650.858.0509 TABLE OF CONTENTS Page LETTER OF TRANSMITTAL 7. BACKGROUND ~ 2 STATEMENT OF QUALIFICATIONS 3 3. STUDY METHODOLOGY AND APPROACH 15 4 PROJECT SCHEDULE 31 5. FEE PROPOSAL 32 6. PROPOSED CHANGES TO SAMPLE CONTRACT 33 mat rix consulting group February 2, 2009 Mr. Steve Piasecki Acting Director of Community Development City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 Dear Mr. Piasecki: The Matrix Consulting Group is pleased to present our proposal to conduct an evaluation of the Permit Process. Our proposal is based on our review of the City's Request for Proposals, and our research into the building permit and land entitlement permit processes in Cupertino. Our staff has extensive local government management consulting experience in the analysis of staffing, management, and process improvement of Community Development Departments. The following paragraphs summarize this experience: Our proposed project team has conducted permit process studies of more than 100 Community Development Departments in cities and counties in California and throughout the United States including: Alachua County (FL) Hilton Head Island (SC) Oceanside (CA) Albany (NY) Lake Oswego (FL) Palo Alto (CA) Arlington County (VA) Lawrence (KS) Pismo Beach (CA) Beverly Hills (CA) Lee's Summit (MO) Poway (CA) Burlington (MA) Livermore (CA) San Antonio (TX) Campbell (CA) Los Altos (CA) San Clemente (CA) Culpeper County (VA) Los Altos Hills (CA) San Luis Obispo (CA) Cupertino (CA) Manatee County (FL) San Rafael (CA) Dublin (CA) Marin County (CA) Santa Monica (CA) East Palo Afto (CA) Morgan Hill Southlake (TX) Emeryville (CA) Mountain View (CA) Tiburon (CA) Glendale (CA) Nantucket (MA) Venice (FL) Hanover County (VA) Napa (CA) Waltham (MA) Ha and CA Newark CA Washoe Coun NV 721 Colorado Avenue, Suite 101 Palo Alto, CA 94303 650.858.0507 650.858.0509 fax California, Florida, tltinois, Massach useit s, Maryland, Texas, Virginia, Washington We have proposed an extremely expE:rienced project team. With over 33 years' experience and Senior Vice President of the firm, I would be the project manager. Robert Paternoster, Randy -ran and Nicole Kissam would assist me. While the Matrix Consulting Group is a national company, with seven offices around the country, our headquarters' office is in Palo Alto, California. The Matrix Consulting Group is a California Corporation. In all of our studies of permit processes, we utilize a comprehensive, detailed and interactive set of approaches. These approaches are comprised of the following elements: • Detailed analysis based on intensive data collection and extensive interviewing by analysts who understand building permit and land entitlement service delivery. - Extensive qualitative and quantitative analysis of all aspects of operations which provides a clear audit trail of the cost-effectiveness of the current organization, staffing, processes, technology, and operations as well as alternatives. • Evaluation of operations and services in the context of `best practices' developed by the project team based. - An interactive study process de:>igned to maximize the potential for implementation of study recommendations once the project is completed. We appreciate this opportunity to res~~ond to this Request for Proposals. If I can answer any questions, please do not hesitai:e to contact me at 650-858-0507 or via e- mail at ggoelitzCc~matrixcg.net . Matrix Consu/ting Group Gary Goelitz Senior Vice President C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/uatfon of the Permit Process 1. BACKGROUND This section of the proposal provides our understanding of the background to this study of the permit processes of the City of Cupertino. 1. THE CITY OF CUPERTINO IS SEEKING A FOCUSED REVIEW OF THE DEVELOPMENT REVIEW AND PERMIT PROCESSING FUNCTION. The City of Cupertino, is seeking a focused evaluation of the development review and permit processing function from initial customer contact to completion of construction or granting of permitting authority for all building, planning and public works permits. The purpose of the study is to Evaluate the effectiveness of the existing processes and identify opportunities to improve the efficiency and effectiveness of these functions. The scope of services for the evaluation of permit processes includes the following: - Interviews with approximately 15 elected and appointed officials, current and former staff members and 25 system users; - Review of literature (current processes, zoning maps, staff materials, handouts for customers, plan check and inspe~~tion checklists, budgets, job descriptions, information on the city website, performance goals, monthly/quarterly reports of activity, and customer satisfaction surveys); • Assessment of the Municipal Code as to its zoning procedures - Review of video recordings of City Council and Planning Commission meetings and audio tapes of Design Revie~nr Committee and Environmental Review Committee meetings; - Identification of benchmark cities anti benchmark standards to assess service levels and other appropriate comparison purposes; • Identification of the current status of the processes and impediments to timely and consistent customer service; • Identification and cost benefit analysis of measures to improve process efficiency and effectiveness; - Preparation of draft and final observations and recommendations for improvements to the permit processing) systems; and Matrix Consulting Group Page C/TY OF CUPERT/NO, CAL/PORN/A Proposa/ to Conduct an Eva/nation of the Permit Process Presentation of findings and recommendations at up to three public meetings. The city anticipates that the study will begin no later than February 9, 2009 and be completed by March 31 , 2009. This intensive schedule allows the recommendations, and their cost implications, to be considered in city budget discussions for the new fiscal year. 2. THE CITY OF CUPERTINO HAS A POPULATION OF 55,551 AND CITY LIMITS OF 12 SQUARE MILES. The City of Cupertino operates as a general law city with a city council-city manager form of government. The City has 162 authorized full-time benefited employees. City departments include Administrative Services, Community Development, Parks and Recreation, Public Works, and Public and Environmental Affairs. Police service is provided by the Santa Clara County Sheriff's Office and fire service through the Santa Clara County Fire District. The Community Development Department is authorized 23.78 full-time equivalent staff. This includes 11 .9 full-time equivalent staff in the Building Division and 7.78 full-time equivalent staff in the Planning Division. The Planning Division anticipates processing approximately 125 discretionary permit applications in 2008-09, and plan checking 400 building permit applications for zoning compliance. The Building Division anticipates processing 2,300 building permit applications and conducting 24,400 building inspections in 2008-09. The Engineering Division is authorized 6.72 full-time equivalent staff. The plan of organization for the Community Development Department is presented below. This plan does not reflect contract or part-time / temporary positions. Community Development Director (~) i Planning City Planner (~) Economic Development Econ. Development Redevelopment Mgr. (~) Building I Administrative Building I Services Official Administrative Asst. (~) (~) Senior Associate Planner Planner ('~) ~ (~) Assistant Planner (t) Senior ! Plan Planner Check (1) ', Engineer (~) B dl niiu g ~, Inspector (4) Sen~ d Inistrative Building Clerk Inspector ii (2) (1) I BuildBuild g Senior Counter ~ Office Inspector Assistant (~) j (2) Matrix Consu/ting Group Page 2 C/TY OF CUPERT/NO, CAL/PORN/A Proposa/ to Conduct an Eva/nation of the Permit Process 2. STATEMENT OF QUALIFICATIONS This section of our proposal presents a brief summary of the Matrix Consulting Group, its structure, and background. 1. INTRODUCTION TO THE MATRIX CONSULTING GROUP. The Matrix Consulting Group was created by senior staff previously from a large national management consulting firm who left that firm in order to pursue a service in which the senior people actually do the work in a lower overhead environment. We only provide organization and management analytical services to local government. Our firm's history and composition is summarized below: - We were founded in 2002 and are incorporated in the State of California. • The principals and senior staff of our firm have worked together in this and other consulting organizations as one team for between 10 and 30 years. Principals of the firm manage and serve as field analysts on each of our projects. - The Matrix Consulting Group currently has 15 full time employees. - Our firm maintains its headquarters in Palo Alto, California. However, we also have offices in Spokane, Washington; Plano, Texas; Silver Spring, Maryland; Edwardsville, Illinois; Andover, Massachusetts; and Stuart, Florida. This project would be managed and staffed from our office in California. We are proud of our track record in providing analytical assistance to local governments around the country. This track record is bolstered by our rate of successful implementation, which exceeds 85% of recommendations made. The street address, telephone, fax number, and a-mail address for the Matrix Consulting Group are as follows: 721 Colorado Avenue, Suite 101 Palo Alto, CA 94303 650-858-0507 (telephone number) gg0211tZ CC7matrlXCq.aet Matrix Consu/ting Group Page 3 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/nation of the Permit Process 2. OUR MANAGEMENT STUDIES PHILOSOPHY Our market niche is based on providing detailed analysis through extensive data collection, input and interaction with our clients. The cornerstone of our philosophy in conducting organization and management studies is summarized below. A principal of the firm is always involved in every aspect of each of our studies. This includes staff interviews, data collection, report writing, client meetings and public presentations. Our projects are approached with a firm grounding in formal analytical methodologies. Our clients receive dE~tailed analysis of their specific issues. All impacts are identified and analyzed in detail to ensure that recommendations are implemented and our clients can understand the reasons for recommended changes. This is achieved by: - Ongoing and extensive project management techniques that are explained in a later section of this proposal; - Extensive input of staff through interviews and surveys; and - Detailed data collection and an<~lysis derived from primary sources. Our projects are characterized by extensive interaction between the consultants and our clients' staff, management anti policy makers. This interaction includes: - Extensive input through interviews of staff, policy makers and `customers'; - Extensive and detailed data collection and analysis, rather than `high level' use of comparative statistics and consultant opinions; and - Extensive internal reviews of facts, findings, conclusions and recommendations as studies proceed. This philosophy has provided our clieints with valuable assistance and advice in dealing with important public policy issues. Ens noted above, it has also resulted in very high levels of implementation of our recommendations. 3. THE PROJECT TEAM HAS CONDUCTED OVER 100 STUDIES OF COMMUNITY DEVELOPMENT DEPARTMENTS AND PERMIT PROCESSES. The firm and the project team from thE; Matrix Consulting Group we would assign to this project have vast experience analyzing Community Development Departments and permit processes. This experience encompasses over 100 cities and counties. Members of the project team have been le:3ders in the analysis of permit processes Matrix Consulting Group Page 4 C/TY OF CUPERT/NO, CAL/PORN/A Propose/ to Conduct an Eva/uatlon of the Permit Process since the 1980's. Examples of our experience in the analysis of these functions for cities and counties are summarized in the table below: Alachua County (FL) Hilton Head Island (SC) Oceanside (CA) Albany (NY) Lake Oswego (FL) Palo Alto (CA) Arlington County (VA) Lawrence (KS) Pismo Beach (CA) Beverly Hills (CA) Lee's Summit (MO) Poway (CA) Burlington (MA) Livermore (CA) San Antonio (TX) Campbell (CA) Los Altos (CA) San Clemente (CA) Culpeper County (VA) Los Altos Hills (CA) San Luis Obispo (CA) Cupertino (CA) Manatee County (FL) San Rafael (CA) Dublin (CA) Merin County (CA) Santa Monica (CA) East Palo Alto (CA) Morgan Hill Southlake (TX) Emeryville (CA) Mountain View (CA) Tiburon (CA) Glendale (CA) Nantucket (MA) Venice (FL) Hanover County (VA) Napa (CA) Waltham (MA) Ha and CA Newark CA _ Washoe County (NV) Currently, the Matrix Consulting Group is beginning a development review study for Sunrise, Florida and Marion County, Oregon and is completing a development review study for the Public Works Department of San Jose, California. 4. PROJECT TEAM All of the members of our team are employees of the Matrix Consulting Group. Summaries of the experience of our proposed project team are provided below with more extensive resumes for the principal consultants following these biographical summaries. GARY GOELITZ - Mr. Goelitz is a Senior Vice President with the Matrix Consulting Group, and has over 33 years of experience as an analyst in the public sector, both as a consultant and a manager in municipal operations. He also was a Director for MAXIMUS. Mr. Goelitz has served as a management analyst for the cities of Chula Vista (CA), Fremont (CA), Phoenix (AZ), and Beverly Hills (CA) as well as the Internal Audit Manager for Washoe County (NV). Mr. Goelitz has extensive experience in the planning, building, and development engineering area and has completed analyses of these functions for a number of cities and counties including Beverly Hills (CA), Glendale (CA), Santa Monica (CA), San Francisco (CA), Tiburon (CA), Lee's Summit (MO), Napa (CA), Los -Altos Hills (CA), Livermore (CA), Dublin (CA), Campbell (CA), Modesto (CA), Morgan Hill (CA), Riverside (CA), Hayward (CA), Palo Alto (CA), Cupertino (CA), Los Altos (CA), San Rafael (CA) San Ramon (CA), Oxnard (CA), Arlington County (VA), Gwinnett County (GA), Lee's Summit (MO), Lawrence (KS), Goodyear (AZ), Oro Valley (AZ), Spokane (WA), Gresham (OR), and Matrix Consu/ting Group Page 5 C/TY OF CUPERT/NO, CAL/PORN/A Propose/ to Conduct an Eva/nation of the Permit Process others. He holds both B.A. and M.P.f\. degrees from the University of Southern California. Mr_ Goe/itz wou/d be the /ead ana/yst for this assignment. ROBERT PATERNOSTER - Mr. Paternoster is a Senior Manager with the Matrix Consulting Group. Mr. Paternoster has over 40-years experience as a departmental director for the cities oi` Philadelphia, (PA), Pittsburgh (PA), Long Beach (CA), and Sunnyvale (CA); Mr. paternoster has significant experience in development conditions and city planning processes. Mr. Paternoster is a member of the American Institute of Certified Planners, and was elected to the AICP College of Fellows, the highest honor in the planning profession. He is an active member of the American Planning Association, having served as President of the California Chapter rind as a member of its national Board of Directors. Mr. Paternoster was a speaker at number of the annual conferences for the American Planning Associ~~tion. Mr. Paternoster has a B.S. (Civil Engineering) from Lehigh University ~~nd Masters of City Planning from Harvard University. Mr. Paternoster wou/d be an ana/yst on this project_ RANDY TAN - Mr. Tan is a Senior ~/lanager with the Matrix Consulting Group, and has over 8 years experience as a consultant to local government. Mr. Tan has completed a number of analyses of development review for local governments including Placer County (CA), San Francisco (CA), Lathrop (CA), Glendale (CA), Glendora, CA), Hercules (CA), and Los Altos (CA). His professional consulting experience also includes business process improvement, management, organizational, and operational assessments, facilitation and strategic planning for government agencies. He holds a B.S. degree from the University of California, Davis and an M.P.A. degree from the University of Southern California. Mr_ Tan wou/d be an ana/yst on this project assisting in the co/%ction and ana/ysis of the d~~ta. NICOLE KISSAM - Ms. Kissam is a IVlanager with the Matrix Consulting Group, and has several years of experience in city government, public sector consulting, marketing and public relations. Ms. Kissam has been a financial and management consultant to local government for more than four years. Prior to joining Matrix Consulting Group, she performed and managed cost allocation, operational/user fee, and revenue analyses in-more than 30 city and county governments. With broad experience across many municipal functions, Ms. Kissam has established a special knowledge of processes, practices and cost recovery in the community development area. Ms. Kissam has participated in our recent development review studies for East Palo Alto (CA), Beverly Hills (CA), Oceanside (CA), San Francisco (CA), Goodyear (AZ) and Spokane WA). Ms. Kissam holds a B. S. degree in International Business Administration from California Polytechnic State University, San Luis Obispo. Ms_ Kissam wou/d be an ana/yst on this project assisting in the co//action and ana/ysis of the data_ Matrix Consu/ting Group Page 6 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/uatfon of the Permit Process The detailed resumes for the senior members (our two principal consultants) of the project team follow this page. 5. REFERENCES The Matrix Consulting Group provides, in the table, below, references of similar permit process studies conducted by the firm. Client Abstract Contact Beverly Hills, California Matrix Consulting Group conducted an Rod Wood organizational and operational review and City Manager Analysis of the analysis of the Community Development (31 O) 285-1012 Community Development Department. This analysis included an Department evaluation of the permit, plan check, and inspection processes, the plan of organization, a best practices analysis, an evaluation of staffing levels, the adequacy of the use of technology, and an evaluation of the processing of entitlement and ministerial permits against c cle time erformance tar ets_ Lawrence, Kansas Matrix Consulting Group conducted an David Corliss organization and management study for this City. Manager Management Study of the City reviewing all building, planning and (785) 832-3403 Development-Review development processes. Principal Process recommendations (which are in the process of being implemented) included reallocation of duties between departments/division for efficiency, reorganization of two departments into a Community Development Department; institution of performance measures for processing times, review and possible replacement of the information technology system, and staff changes to enhance accountabili and oversi ht. Santa Monica, California In this assignment the project team has Gordon Anderson analyzed cross departmental issues relating to Assistant City Analysis of Permit all development functions and designed to Manager Processes identify opportunities to improve processing times- We have accomplished this review in a (310) 458-8301 context of an intensive public review and scrutin rocess. Matr/x Consu/t/ng Group Page 7 C/TY OF CUPERT/NO, CAL/PORN/A Proposa/ to Conduct an Eva/nation of the Permit Process Client Abstract Contact Glendale, California In this assignment the project team has William Fox analyzed cross departrnental issues relating to Internal Auditor Analysis of Permit all development functions and designed to Processes identify opportunities to improve processing (818) 548-3355 times. The project also has recommended changes to the staffing of development functions, information ~~nd management systems supporting development services and pertormance metrics developed through the 'best ractices' assessment. Lee's Summit, In this assignment, the project team analyzed Stephen Arbo Missouri staffing, operations, m:~nagement and City Administrator information systems, c~~mmunications, and Assessment of the organization of the Cocies Administration, (816) 969-7302 Codes Administration issuance of permits using the Internet, (Building and Safety) increasing the level of :raining, Department. Principal recommendations included increasing the staffing for plan checking, revision of plan check cycle time goals, reducing the amount of time spent in the office by Building Inspectors, and enhancing the management of the plan check process. Los Altos Hills, California This study involved an assessment of all Carl Cahill aspects of the City's Planning and Building City Manager Management Study of the Department. It made many recommendations Planning and Building including the plan checking of building permit (650) 941-7222 Department plans using a concurrent sequential process, having the Building Division provide zoning clearance for minor building permit applications. We followed up this study with an assessment of the feasibility and calculation of development im act fees. Arlington County, In this project, we evaluated the post-Board Barbara Leichti Virginia approval phase of the :>ite plan review process Comptroller for this suburban WasYiington DC jurisdiction. (703) 228-3432 Analysis of the Site Plan Key recommendations included the Review Process development of centralized inventory of conditions of approval, organizationally consolidate site plan reviews and ins ectors. Matrix Consu/ting Group Page 8 C/TY OF CUPERT/NO, CAL/PORN/A P~oposa/ to Conduct an Eva/uat/on of the Pe~mft Process Client Abstract Contact Hilton Head, South This study analyzed the development review Jill Foster Carolina and permitting procedures for the Town of Deputy Planning Hilton Head Island. Departments included in Director Study of the the study included Planning, Building and Fire (843) 341-4694 Development Review and Codes, and Engineering. The study included Construction Permitting community focus groups as part of the data Processes collection phase and a review of technology utilization. Key recommendations included the establishment of a Community Development Department, increased utilization of existing technology in place, review of new technology options for future implementation, establishment of and monitoring of pertormance targets, implementation of a Project Manager approach to development review, increased staffing for plan review to move SFR plan reviews from building inspection staff, and various other staffin and olic than es Matrix Consu/ting Group Page 9 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/nation of the Permit Process GARY GOELITZ Senior Vice President, Matrix Consulting Group BACKGROUND Gary Goelitz is a Vice President with the Matrix Consulting Group. He has been providing management consulting and analytical services to government for 35 years. This experience includes: as a management analyst for the cities of Chula Vista, Beverly Hills, and Fremont, California; as the Internal Audit Manager for Washoe County (Reno), Nevada; and, most recently/ as the west coast Director of a national consulting firm where Mr. Goelitz was a consultant to local government specializing in the analysis of development review services prior to founding the Matrix Consulting Group. Mr. Goelitz has been involved with the analysis of hundreds of local government service providers with a special focus on development review issues. RECENT EXPERIENCE RELEVANT TO THE PROJECT Beverly Hills, California. Served as the project manager and lead analyst for the management study of the Community Development Department. The scope of the study included the Planning IDivision and Building and Safety Division including code enforcement. The study analyzed opportunities to streamline the development review process, the levels of staffing, work practices, the effectiveness of the use and applicati~~n of technology, cost recovery, the zoning ordinance and its ease of administration, the management of the building and land entitlement permit process, and tl~e plan of organization for the department. Oceanside, California. Served as the project manager and lead analyst for the management study of the Community Development Department. The scope of the study included the Planning Division and Building Division, Fire Prevention Division, and Engineering Division. Tl~e study analyzed opportunities to improve productivity, efficiency, and cost effectiveness of the operations in the Planning, Building, Engineering, and Fire Prevention divisions and to identify cost factors that impact the processing of development-related products. This included the adequacy of staffing, opportunities to streamline development review processes, enhance managerial and supervisory accountability for managing the development review processes, the us:e and deployment of technology. Salem, Oregon. Served as the project manager and lead analyst for the management study of the Planning Division. The study analyzed the ease of administration of the zoning ordinance, opportunities to streamline and simplify the land entitlement permit proce:>s, utilization of the automated permit information system to simplify work processes using Six Sigma, the adequacy of the comprehensive plan, cost recovery, management of the land entitlement permit process, adequacy of staff resources, adequacy of advanced planning, and the plan of organization for the division. Matrix Consulting Group Page 70 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/nation of the Permit Process Lake Oswego, Oregon. Served as the project manager and lead analyst for the management study of the Community Development Department. The scope of the study included the Planning Division, Building and Safety Division, and the Engineering Division. The study analyzed the adequacy of staffing and opportunities to enhance the use of existing staff, opportunities to simplify and streamline the building permit, land entitlement permit, and engineering permit processes, enhance the effective deployment of technology, work practices, management of advanced planning, capital project management, and the management of the building permit, land entitlement permit, and engineering permit processes. East Palo Alto, California. Served as the project manager and lead analyst for the management study of the Community Development Department. The scope of the study included the Planning Division, Building and Safety Division, Development Engineering, and Redevelopment Division. The study analyzed the plan of organization, the ease of administration of the zoning ordinance, the adequacy of staffing, cost recovery, the use and deployment of technology, work practices, opportunities to streamline development review processes and better manage these processes, enhance the interdepartmental coordination of development review processes, and enhance the management of redevelopment projects. San Francisco, California. Served as the project manager and lead analyst for the management study of the Planning Department. The study analyzed opportunities to simplify and streamline business processes, the adequacy of staffing, the ease of administration of the zoning ordinance, the adequacy of the elements of the general plan, the use and deployment of technology, the accountability for the management of the land entitlement permit processes, opportunities to streamline the land entitlement permit process, and the management of the advanced planning process. Arlington, Virginia. Served as the project manager and lead analyst for the management study of the administration of the site approval process by the Planning Division. The study analyzed opportunities to enhance the use and deployment of technology, enhance the management of the processing of zoning permits, enhance the communication regarding the status of site plan review projects and the implementation of conditions of approval, and the effectiveness of zoning inspections to assure compliance with conditions of approval. Glendale, California. Served as the project manager and lead analyst for the management study of the building permit and the land entitlement permit process. The scope of the study included the Building and Safety Division, Planning Department, Public Works Department, and Fire Department. The study analyzed the adequacy of staffing, the management of development review process, opportunities to streamline the process particularly single-family design review, the use and deployment of technology, mechanisms to enhance Matrix Consulting Group Page 77 CITY OF CUPERT/NO, CAL/FORN/A Proposal to Conduct an Eva/nation of the Permit Process management accountability for the F>rocess, and enhancement of the use of existing staff resources. Gwinnett County, Georgia. Served as the project manager and lead analyst for the management study of the develoF~ment review process including a review of the land development permitting, building permitting, construction inspection, and building inspection. The study analyzed the use and deployment of technology, adequacy of staffing, the efficient u:>e of existing staff, adequacy of staffing, interdepartmental coordination in the development review process, the management of the process, customer service and accountability for complete submittals, streamlining of the develoF~ment review process, the timeliness of the process, and the plan of organization. Oro Valley, Arizona. Served as the project manager and lead analyst for the management study of the Building and Safety Division. The analysis included the current workflow and work methods fir the building inspection and plan review process, improving the services provided to customers, the adequacy of staffing, the use and deployment of technology, the efficient use of existing staff, opportunities to streamline the building permit plan check process, and the management and timeliness of the plain check and inspection process. Santa Monica, California. Served as the project manager and lead analyst for the management study of the permit, plan check, inspection, and code enforcement process. The scope of the study included the Planning Division, Building and Safety Division, and Development Engineering. The study analyzed the ease of administration of the zoning ordinance, the adequacy of the land use and circulation elements, the efficiennt use of existing staff, opportunities to simplify and streamline the development review process, the management and timeliness of the development review process, the adequacy of advanced planning, enhance code enforcement, enhance the effectiveness of the Planning Commission and the Architectural Review Board, and deployment of technology. San Jose, California. Served as the project manager and lead analyst for the management study of the Development Services Division of the Public Works Department. The study analyzed the adequacy of staffing, the use and deployment of technology, opportunities to simplify and streamline the engineering development review process, the management and timeliness of the process, staff utilization, work practicer, and the plan of organization. EDUCATION Mr. Goelitz received his BA and M.P.A. degrees from the University of Southern California. Matrix Consulting Group page 72 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/uatfon of the Permit Process ROBERT PATERNOSTER Senior Manager BACKGROUND Mr. Paternoster is a Senior Manager with the Matrix Consulting Group. Mr. Paternoster has over 40-years experience as a departmental director for the cities of Philadelphia, (PA), Pittsburgh (PA), Long Beach (CA), and Sunnyvale (CA). Mr. Paternoster is a member of the American Institute of Certified Planners, and was elected to the AICP College of Fellows, the highest honor in the planning profession. He is an active member of the American Planning Association, having served as President of the California Chapter and as a member of its national Board of Directors. Mr. Paternoster was a speaker at number of the annual conferences for the American Planning Association EXPERIENCE The following points summarize Mr. Paternoster's experience: Director of Community Development, City of Sunnyvale, California March 2001 to June 2007 Mr. Paternoster managed a 50-member staff engaged in planning, building, economic development, redevelopment, housing and code enforcement. He led the Downtown redevelopment effort, beginning with a Downtown Design Plan prepared in cooperation with a 21-member Downtown Stakeholders Committee. He chaired a three-person negotiating team that successfully negotiated a disposition and development agreement for the redevelopment of the bankrupt Town Center Mall into an open-air extension of the traditional downtown. The $600 million project began construction in May 2007. He prepared the City's first Community Development Strategy. He initiated a massive community outreach program, culminating in a Community Visioning Festival, to develop a 20-year Vision for Sunnyvale that provides the context and direction for subsequent revision of the General Plan. Director, Queensway Bay Project, City of Long Beach, California .July 1994 to March 2001 Mr. Paternoster managed all phases of a 300-acre, $350 million shoreline development to link Downtown Long Beach to its waterfront and to create an exciting new destination for residents and visitors, alike. He was responsible for planning, entitlement, financing, design, developer selection and negotiation, citizen participation, public relations and construction. He played a leadership role in the design and financing of the $117 million Long Beach Aquarium of the Pacific, which has enjoyed overwhelming public acceptance since its opening in June, 1998. Matrix Consulting Group Page 73 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/uatfon of the Permit Process Director of Planning and Building, City of Long Beach, California January 1977 to July 1994 Mr. Paternoster led a department of 100 F~rofessionals through a dynamic period of restructuring and streamlining. He personally managed the preparation of the City's Local Coastal Program, which was the first: major coastal plan to be certified by the California Coastal Commission in 1980. Thc; two-year process involved 133 meetings with a diverse citizen advisory committee, leading ultimately to a plan that was largely uncontested. He oversaw preparation of ':he Downtown Redevelopment Plan, the SEADIP Development Plan, and a major reviision of the General Plan. He designed and implemented the City's first Transportation Impact Fee Program. Mr. Paternoster also managed preparation of Long Beach 2000, The Strategic Plan, coordinating efforts of seven citizen task forces and 66 staff members from 1 1 City departments. Planning Director, City of Pittsburgh, Pennsylvania 1970 - 1977 As a chief policy advisor to Mayor Pete Flaherty, Mr. Paternoster revitalized the City's planning function. He implemented a Community Planning Program that assigned professional planners. on a full-time basis to neighborhoods throughout the City. He created a new six-year development programming process, combining the best elements of the general plan and the capit~31 improvement program (neither of which were in place in Pittsburgh) into a bi-annu<~I policy document. He participated in the design and implementation of affordable housing rehabilitation and construction programs that set the model for similar programs nationwide. Deputy Planning Director, Philadelphia City Planning Commission, Pennsylvania 1966 - 1970 EDUCATION Master of City Planning, Harvard University Bachelor of Science in Civil Engineering, Lehigh University Matrix Consulting Group Page 74 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/nation of the Permit Process 3. STUDY METHODOLOGY AND APPROACH This section of the proposal provi~~es the project team's methodology for conducting this study, including the deliverables for each task. 1. METHODOLOGICAL OVERVIEW We believe that several aspects of our study approach should be mentioned and stressed. Our intent is not merely to describE: what tasks we will perform to conduct the study, but also how we will conduct the stud~,r that will produce results that are accurate and concrete, substantive, defensible and can be implemented. These aspects are described in the paragraphs below. (1) Project Management One critical success factor in conducting a project of this size and complexity in an efficient, timely, and effective manner is project management. The Matrix Consulting Group utilizes project management approaches that assure that (a) efficiencies can be achieved in the gathering and analysis of information; (b) disruption to the day-to-day operations of the City can be minimized; and (c) later tasks can build upon the results of earlier ones so that backtracking and redundant work effort (and unnecessary costs to the City) can be avoided. (2) Data Collection A central tenet of our approach to c~~nducting studies is that there must be a strong analytical basis for evaluating needs and making recommendations. The methodology should be flexible enough to accommodate the unique elements of each client's scope of work and service levels (for example -the extent of public noticing requirements for discretionary permits or the kinds of applications that must be approved by the Planning Commission or City Council that is sensitive to development). Examples of the tools and techniques that wee will employ in this project include: Collecting Documents. This would include the collection of documentary material (such as organization charts, zoning ordinance, etc.) and quantitative information available (such as building permits, building valuation, etc.) to evaluate workload, staffing, and management practices. It would also include the review of handouts for customers, Klan check and inspection checklists, job descriptions, and information on the City website. These documents will serve as an initial blueprint to assemble pertinent information for our review before we commence interviews. Documenting, in detail, current demand for discretionary and building permit, plan check, and inspection services including the number of Matrix Consulting Group Page 75 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/uatfon of the Permit Process inspections, number and types of building permits issued including valuation, number of discretionary permits, number of engineering permits, and the like. Documenting how staff resources are deployed and utilized. This includes the plan of organization, work schedules, the roles and responsibilities of these staff, etc. Documenting current service levels from two perspectives: - Basic quantitative performance indicators (such as the percentage of inspection requests that are responded to within one workday of receipt of the request, the cycle time for discretionary permits from the date the application is deemed complete, etc.) compared to service levels observed in other comparable communities; and - Qualitative performance indicators such as the use of an automated voice- activated inspection request system to receive inspections with linkage to the automated permit information system, the extent of on-line permit applications. available through automated permit information system, the ICC certification of plan check and inspection staff; the provision of zoning clearance for simple building permit plan checks, etc. Conducting Focus Groups. In evaluating customer satisfaction, we will want to incorporate input from customers. Since it would be prohibitively expensive to interview every customer served by the City, we will want to utilize focus groups to gather perspectives from many of the customers of the services provided by the City. The focus groups would be utilized to elicit feedback from customers regarding their satisfaction with the services provided by the City The Matrix Consulting Group has extensive experience in developing and administering focus groups to obtain this information. Conducting Interviews. While documents such as the zoning ordinance, the volume of building permits, and other information are valuable tools for assessing levels of service, these cannot generate the kinds of specific information that can only be gleaned from face-to-face conversations. For this reason, employee interviews are a staple of our consulting approach. We will conduct interviews with elected and appointed officials, current staff members, and customers. We will interview each employee in the Community Development Department and those employees in the Engineering Division allocated to development review. As the next section demonstrates, this attention to detail carries through to our analysis. (3) Data Analysis The Matrix Consulting Group uses a number of proven analytical methodologies that we have developed in areas such as the following: Matrix Consulting Group Page 76 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/nation of the Permit Process • Benchmarking. Benchmarking of services, efficiency and effectiveness has been increasingly utilized in the publi~~ sector to compare organizations in terms of "best practices". This approach would. be useful in this study to assess the City's current approaches to deliverer of services. As a result, we propose to accomplish the following: - Identify and conduct a comparison survey of other cities in California that are comparable to the City in terms of size, scope of programs, and the type of environment that the ~~epartment works in. The purpose of this survey is to develop quantitative and qualitative data identifying differences in the levels and co:~ts of service. - Concurrently, we will utilize ~~ list of quantitative and qualitative best practices that have been developed by the Matrix Consulting Group or by professional associations (such as the American Planning Association or the International City Managers Association) to benchmark the City. These "best management practices" would be utilized to identify potential strengths and improvement opK~ortunities. - Pertormance Measurement. The: Matrix Consulting Group employs performance measurement technique: in every review we conduct. Examples of the types of performance measures ~rve could utilize could include, but are not limited, to the following: - The cycle time required for processing the first plan check of a building permit for the different types of permit:; such as 'new single family dwelling, single family remodel, tenant improvement, etc.; - The percentage of building permits plans that are checked over-the-counter; - The cycle time required for review and approval of discretionary permits such as administrative approval permits, cases approved by the Planning Commission, etc. - Process mapping. Process mapping or flow-charting is one of the tools that the Matrix Consulting Group uses to both understand the process as well as to identify opportunities for streamlining the process. We utilize flow-charting software to document these processes;. These general approaches are descrit~ed more fully in the proposed project work plan. Matrix Consulting Group Page 77 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/nation of the Permit Process (4) An Inclusive, Stakeholder Oriented Approach Employee involvement is a critical component of the review. If selected to conduct the review of the City, we would propose the following approaches to ensure staff involvement is maximized over the course of the project. At the beginning of the project, we would prepare a brief handout for distribution to all full-time and part-time staff that introduces our project team; describes project objectives; and shows the project schedule. This handout would be distributed to employees at an initial introductory, briefing session at which we would introduce the team and answer questions about the study. We have found that this initial briefing session is useful in reducing anxiety frequently associated with a review project. We would conduct personal interviews with all employees. During these interviews, we would explain the purpose of the study, solicit employee's. input regarding improvement opportunities and solicit information regarding the employee's work assignment. We also recommend -that the City consider establishing a Project Steering Committee to work with our team over the course of the project. This committee's role would include reviewing and critiquing our findings, conclusions, and recommendations as they are developed. We would, at a minimum, meet with the steering committee at the beginning of the study, at the conclusion of the development of the profile, at the conclusion of the development of the best management practices and issue list, and at the conclusion of the draft report. Of course, this proposed approach to employee involvement, steering committee structure and role, and use of staff level review committees is subject to your approval 4. PROJECT WORK PLAN This section describes the basic work tasks we would accomplish in conducting a performance audit of the building permit and land entitlement processes. Task 1 Identify Key Issues and Trends Impacting Operations. To realistically assess the Community Development Department and the permit process, it is important to develop some sense of where Cupertino is going -the key issues which impact and shape service requirements. To develop this perspective, we plan to conduct a series of initial interviews with City Council, members of the Planning Commission, City and departmental management, and key staff in the departments that are involved in the permit processes, to identify the key factors impacting operations. Specific issues receiving emphasis by the project team would include the following: Matrix Consulting Group Page 78 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/nation of the Permit Process • Basic service delivery goals and ot~jectives of key operating areas including current planning, long-range planning, building inspection and plan checking, final map checking, and the like; - Identification of key issues impacting F~ermit processes service delivery; • Documentation of key trends in Cupertino related to permit workload patterns; - The major issues and improvement strategies for the next fiscal year for the permit processes, the status of imF~lementation of these strategies, and the associated workloads; and - Concerns expressed by the customer: regarding the permit processes utilized by Cupertino. These initial interviews will provide an opportunity to identify and isolate factors and constraints which impact current or near-term operations. Oe/iverable: The de/iverab/e for this ta;>k won/d be a detailed wor/~ p/an for approval. of the Project Steering Commi~Etee inc/siding specific tasks, timelines, data requirements, stafif assignments and other important detai/s_ Task 2 Develop a Profile of the Community Development Department and the Permit Processes in Cupe>rtino. To develop an understanding of 1:he organization and operations of the Community Development Department and the permit processes in Cupertino, we would complete the basic work steps defined below. • Develop an understanding and male the processing steps and the parties involved in each step of the permit processes. This. includes such processes as: - Discretionary permit review and approval; - Building permit plan checking; - Building permit issuance; and - Engineering permit processes. - Interview staff in the Community Development Department and the Engineering Division of the Public Works Department, focusing on such issues as: - Basic work responsibilities. Matrix Consulting Group Page 79 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/nation of the Permit Process - Basic workload and allocation of available time by major task and work responsibility. - The processes linking the divisions and departments involved in the permit processes. - Documentation of individuals' attitudes toward key strengths and weaknesses of the existing organizations. This would include their respective abilities to handle current and expected future workload. Interview staff in other City functions that are essential to the permit processes such as Information Technology. • Develop a detailed description of service demand and workload trends relating to permit processes over the past several years. - Document current performance targets related to turnaround times for the permit processes. • Document the current coordination mechanisms and procedures in place to coordinate the permit processes among the different divisions and departments. - Document major management and information systems available to support operations such as: Geographic information systems including the type of system used (such as Arclnfo), the number of layers maintained, and how GIS is utilized in such areas as citizen access, whether the system can be utilized by staff to readily determine whether the application meets policies for rezoning, and to provide an accurate portrayal of land use by parcel, etc. - The automated permit information system. • Document the policies and regulations utilized by employees involved in the permit processes. This would include the development of an understanding of polices and regulations within the comprehensive plan and zoning ordinance, the cost recovery policies of the City for the development review process, etc. - Document the permit staffing, revenue and expenditure trends for the past several years. Once these initial data collection activities have been completed, we will prepare a profile describing the organization of the Community Development Department and the Engineering Division of the Public Works Department, operations, and workload patterns. Once the profile has been prepared, it will be circulated within the department as well as to the project steering committee, to ensure accuracy. Matrix Consu/t/ng Group Page 20 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/nation of the Permit Process Oe/iverab/e. The de/iverab/e for this task won/d be a descriptive profi/e, summarizing the organization, staffinsl and operations of the Community Ueve/opment Department and the Engineering Division of the Pub/ic Works Department. Task 3 Conduct Focus Groups to /assess Customer Satisfaction with the Permit Processes. The Matrix Consulting Group would conduct focus groups, consisting of a gathering of eight to eleven people in each focus group meeting. The focus groups would consist of different sets of customers including landowners, development groups (architects, developers, contractors, expediters), business groups (merchants, commercial tenants), Commission memk~ers, tenants, and residents in areas surrounding recent developments. The participants would be selected teased on their knowledge and experience with the City and its permit processes. These people would then led through a one hour discussion by the Matrix Consulting Group to really understand why customers feel the way they do about a particular issue. In conducting the focus group, the M~~trix Consulting Group would complete the following steps: • First, develop the focus group questions that will be asked. The Matrix Consulting Group will develop a list of questions ~~nd review these questions with the project steering committee. • Second, select the participants, either a random selection of customers or an intentional selection. of customers. • Third, hold the focus groups. They should be conducted in a comfortable setting, preferably not at a City building. • Finally, summarize the results. The Matrix Consulting Group will develop a brief summary of the results. Once the focus groups are completed, the Matrix Consulting Group would complete an analysis of the results and prepaire an interim report regarding the resulting issues. This interim report would be reviewed with the project steering committee. De/iverab/e. The de/iverab/e for this task vvou/d be a summary of the focus group meetings. Matrix Consulting Group page 27 C/TY OF CUPERT/NO, CAL/PORN/A P~oposa/ to Conduct an Eva/uatlon of the Permit Process Task 4 Survey Staff Attitudes in the Community Development Department and the Engineering Division of the Public Works Department. We will prepare and distribute a confidential attitude survey for completion by employees. The questionnaire will be designed to: - Elicit attitudes toward organizational elements that impact job satisfaction, leadership, performance evaluation, and the like. - Document attitudes toward the level and quality of services provided by each department. • Document attitudes toward the overall commitment of each department to exceptional customer service philosophies. - Determine attitudes toward the adequacy of resources available to employees to accomplish their jobs and deliver services. Once questionnaires are returned, we would analyze results and prepare an analytical summary that presents and evaluates response patterns on a division basis. This summary would be presented to the Project Steering Committee. Oe/iverab/e: The de/iverab/e for this tasK wou/d be a summary of the emp/oyee survey. Task 5 Benchmark Cupertino in a Comparative Survey and Against Best Practices. The purpose of this task is to evaluate the permit processes in Cupertino in the context of other agencies as well as to `best practices'. This task would not only assess the current performance of the City, but also ensure that the City possesses adequate benchmark measures against which to evaluate work activities in the future. This step will consist of the following components: • Select and refine a set of benchmark measures for use in evaluating the City compared to other jurisdictions. These could include such measures as the following: - Discretionary permit cycle time goals by type of permit (i.e., conditional use permits, variances, etc); - Inspection request turnaround times (% of inspection requests responded to within one workday); - Staffing allocated to various services compared to various indices such as population, building permits, building permit valuation, etc. Matrix Consu/ting Group Page 22 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/nation of the Permit Process - Pertormance benchmarks that these cities and/or counties utilize for the provision of services such as building permit plan check turnaround times. We would also use these interview: to understand how development review functions and processes were organized and delivered. - Develop a proposed set of comparison jurisdictions through discussion with the City and the project steering committee. - Concurrently, the project team would also compare the City against `best practices'. This will include the applic~ition of best practices for permit processes. In our experience analyzing these issues, we have developed a number of `standards' of efficiency and effectiveness that can be used against most jurisdictions. Examples of these quantitative and qualitative measures include: - Concurrent processing of building permit plan checks and the processing of discretionary permit applicati~~ns; - On-line submittal of minor building permits such as re-roofs, sewer lateral replacement, water heater change outs, and water services using an effective automated permit information system; - The delegation to staff the authority to approve routine planning permit applications; - Interactive voice response (IVR.) system to enable customers to schedule inspections after hours and find out the results of those inspections; - Use of a common automated F~ermit information system shared by all of the departments and divisions involved in the permit process including comments, conditions of approval, staff reports, etc.; - Twenty-four hour (one workday) turnaround time to building inspection requests; - Cycle goals or performance t~~rgets for the completion of discretionary permit and building permit plan ~~hecks; - Over-the-counter building permit plan check for minor permits such as single family home remodels (non-structural); - The use of GIS to automate the creation of/mailing of hearing notices; Matrix Consulting Group Page 23 CITY OF CUPERT/NO, CAL/PORN/A Propose/ to Conduct an Eva/nation of the Permit Process - The use of a case manager for the processing of discretionary and building permit applications including the coordination and management of inter-departmental responses; - The concurrent noticing of those current planning applications requiring the approval of both the City and Planning Commissions, Architectural Commission, and Design Review Commission; - The use of credit card payments for payment of fees; and - A "one-stop shop" that co-locates all of the departments involved in the development review process. Once practices and measures have been documented, we would compare them to results of previous tasks, and to the extent they exist, identify major deviations between Cupertino and these benchmarks. Drawing on the results of these tasks, we will develop an issue list that presents our findings regarding issues and potential improvement opportunities in each division's operations. This issue list will be presented to the Project Steering Committee in progress report form. Once the review is completed, the issue list will provide the basis for follow-up analytical activities that will focus on developing specific recommendations for improvement in subsequent study work steps. While the specific content of the issue list and subsequent analysis will depend on the results of the first several tasks, we expect the follow-up analysis to address issue areas like those outlined in the task descriptions that follow. De/iverab/e. The de/iverab/e of this task won/d be an eve/nation of the actual permit process practices in comparison to `best management practices and to other cities_ Task 6 Evaluate the Permit Processes. We will evaluate the permit processes to identify opportunities to streamline and more proactively manage the processes, and enhance customer service. Initially, this task would involve mapping the primary permit processes. This would be supplemented by the sampling of cases to determine the processing time for different types of permits. This would require the project team to access hard copy case files to determine case processing time for permit cases. This will be an issue that the project team will address as a recommendation within the report. We would then evaluate these processes from a number of perspectives such as the examples presented in the sections below. Matrix Consulting Group Page 24 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/uat/on of the Permit Process • The effectiveness with which the City's automated permit information system are utilized for permit, plan check, and inspection services and opportunities that exist to enhance these existing systerns. This would include on-line accessibility for on-line payments, electronic subrnittals of plans (AutoCAD), on-line zoning information that is searchable, on-line permitting, etc. - The linkages between Pentamation and the automated permit information system, and the effectiveness of those linkages. - The internal controls for revenue collection and reconciliation. • The working relationships and interaction of the different units housed in the one- - stop shop in City Hall including such issues as payment collection and customer traffic and processing. • The reasons for delay in the processinng of permits based upon the sampling of cases. • The effectiveness of inter-departmental participation in the building permit, engineering permit, and the discretion~~ry permit processes. - The extent to which staff are empowerc;d to approve minor planning permits. - The types of building permit applications that can be submitted on-line such as re-roofs, water heater change outs, etc. • The proportion of building permits pro~:essed over the counter, and whether the City utilizes a hierarchy that results in smaller plans being processed using less complex processes than larger project~o. - The extent to which the discretionary permit. services are proactively managed based upon performance targets. - The proportion of building permit plan checks that require a 2nd, 3`d, or more checks before approved. - The effectiveness of application guides in identifying submittal requirements necessary to achieve a complete application. - The levels of authority granted to stalrt versus the Design Review Committee, Environmental Review Committee, Planning Commission and City Council by the zoning ordinance and by standard pracl:ice. - Approaches to simplifying the building permit process (such as reducing the number of departments/divisions involved in the review of simpler building Matrix Consulting Group Page 25 C/TY OF CUPERT/NO, CAL/PORN/A Proposa/ to Conduct an Eva/nation of the Permit Process permits, using plan checking staff from Building to provide zoning clearance for pools, etc.). • The clarity of submittal requirements for various applications and the completeness of information submitted by customers in discretionary permit applications and the degree that this impacts the ability of the City to process these applications in a timely basis. The analysis of these issues needs to reflect the unique nature of the City and its service desires and targets. Potential improvement opportunities will be discussed with staff and the project steering committee. Deliverab/e. The de/iverab/e of this task won/d be improvement opportunities and proposed adjustments in permit processes_ Task 7 Evaluate Staff Utilization, Work Practices, and Service Levels. This task involves an evaluation of staff utilization, work practices, and staffing requirements for the City for those staff involved in the permit processes. It will include drawing on the results of previous tasks. We will address this issue by employing several different approaches, such as the following: - Identify the degree to which key projects or work tasks are not being accomplished due to lack of staff, and assess the extent to which these tasks could be absorbed through streamlining of work processes, if at all. • Identify the degree to which each of the divisions utilizes contractors / consultants to perform development review processes. such as building permit plan checking, development proposals in conjunction with planning applications, and the department's philosophy and guidelines for use of contractors / consultants (such as the use of contractors/consultants for workload peaks versus ongoing workload). • Evaluate opportunities to simplify or reduce staff workload. This analysis would focus on such issues as the use of technology to reduce the workload of staff like the use of IVR integrated into the automated permit information system for reducing the workload associated with scheduling building inspections (and improving customer service since inspections can then be requested on a 24/7 basis). • Assess the efficiency and effectiveness with which the staff in building inspection are being utilized and the associated workload. Employ techniques such as building inspection workload guidelines, as well as comparisons to other cities with similar workloads and service philosophies. In analyzing utilization and productivity of building inspection staff, the consulting team would seek answers to such questions as the following: Matrix Consulting Group Page 26 C/TY OF CUPERT/NO, CAL/PORN/A Proposa/ to Conduct an Eva/nation of the Permit Process - How are inspections planned fc>r Building Inspectors? - How efficiently is the time of building inspection staff utilized? Is staff spending too much time in the office or in travel to/from the office? - What is the ongoing daily workload faced by inspection staff in terms of the number of stops per day, a:~ well as the number of inspections? - How is the work of Building In:~pectors is quality controlled to assure that these staff are exercising due diligence in conducting these inspections? - Is the training available adequate to enable ICC certification by building inspection staff? Assess the efficiency and effectiveness with which the staff in building permit plan checking are being utilized and tF~e associated workload. This would include an evaluation of such practices as tho:>e presented below. - _ Work assignments/job responsibilities of staff assigned to plan checking. To what extent is staff performing tasks that could be pertormed by clerical personnel or technicians? - The structure and content of the building permit plan checking process. This would involve plan checking steps, points in the process where application review requires input or coordination with other divisions. - Review of application forms anti other documents. - Methods utilized to assign, schedule, and monitor workload and processing time for plan checking and contract staff. - Checklists and other technique: that are utilized to assure consistency of plan check corrections among the different plan checking staff. Assess the efficiency and effectiveness with which the staff assigned to discretionary permit processes are being utilized and the associated workload This will address such issues in the processing of discretionary permit applications as those presented below. - The adequacy of case management practices for the management of the processing of discretionary permit applications (like the ability of the case planner to hold other disciplines accountable for meeting schedules for the processing of these permits). Matrix Consu/ting Group page 27 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/uatlon of the Permit Process - The methods utilized to manage and reduce the 30 days lost for applications deemed incomplete (like assuring applications meet basic application submittal requirements at submittal while the applicant is still at the counter, and rejecting the application if it does not meet these basic requirements). - The extent to which checklists and procedures have been developed to assure the comprehensive plan and zoning ordinance consistency of staff in processing discretionary permit applications. - Methods utilized to assign, schedule, and monitor workload and processing time for staff. - The number of staff required to process discretionary permits given the types of processes utilized in Cupertino. Assess the efficiency and effectiveness with which the staff assigned to long- range planning are utilized through such approached as whether an annual work program is prepared, effective project management practices are utilized, the staff record work hours spent on each long range planning project and these actual work hours are compared to planned or scheduled work hours, etc. Assess the adequacy of the automated permit information system permit issuance and tracking information system utilized in the land entitlement, engineering permit, building permitting and inspection processes. In performing this task, we will compare what exists in to what the consulting team would expect in modern -and progressive city with the size and complexities found in Cupertino. For example, is this system being utilized to track the actual processing times to performance targets that exist for permit processes? Assess the efficiency and effectiveness with which the staff assigned to code enforcement are utilized and the associated workload. This would include an evaluation of such practices as those presented below. - The effectiveness with which the City's automated information systems are utilized for processing cases and services and opportunities that exist to enhance these existing systems to share information. - The cycle time for first site visit, issuance of the notice of violation, the proportion of cases closed voluntarily, etc. - The extent to which the cases and active violations are proactively managed based upon performance targets. - The availability of funding programs to assist low-income citizens in reaching compliance with City standards. Matrix Consulting Group Page 28 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/nation of the Permit Process - Approaches to simplifying the code process (such as reducing the number of steps in the processing and handling of cases, the ability of field inspectors to make decisions regarding compliance, etc.). - The clarity of City standards to the general public and the effort undertaken to educate the public regarding expectations and requirements. - The extent of administrative remedies available for code enforcement to reduce the extent of cases re~auiring adjudication. The remedies include abatements, civil penalties, administrative citations, recorded notices of violation, and mediation. These administrative remedies should be designed to allow code enforcement officers more flexibility in gaining compliance and give code enforcement a chance to pursue certain cases without having to submit them to the City Attorney for prosecution. Evaluate the extent of outsourcing in such areas as building permit plan checking, building inspection, current planning, advanced planning, etc. Review the records retention practices of the department including the extent of use of document imaging both to enhance records access and management for staff and for the public. Evaluate the quality of staff work and quality control measures. This would include review of plan check comments, staff reports and measures to assure the quality of the work performed by the staff such as supervisory review of work pertormed by staff, the use of checklists to assure consistency in depth and breadth of staff work, the extent of training to staff, the methods the department uses to staff the counter and the imp~icts on consistency of information provided to customers (e.g., planner of the day ~~ersus dedicated planner). The completion of this task will allow the project team, in conjunction with previous tasks, to make recommendations regarding the optimum staffing levels and work practices in the City, opportunities to improve work practices, and opportunities to improve the efficient utilization of this staff. Oe/iverab/e: The de/iverab/e of this task won/d be improvement opportunities and proposed adjustments in stafiFing, work practices, technology, service /eve/s, customer service, and operations_ Matrix Consulting Group Page 29 C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/nation of the Perm/t Process Task 8 Document Recommendations in a Final Report and Provide a Detailed Implementation Plan. Once the operational evaluations required to address all identified issues have been resolved, we will document our findings and recommendations in a final project report. This report will include: • An evaluation of the City including its work practices, management systems, and the use of technology including GIS and automated permit information systems. • Improvement opportunities in permit processes in terms of streamlining, enhancing customer services, etc. • Identification and evaluation of key service levels including the gaps between target and actual service levels. The analysis will include definition of the relationship between staff utilization and these service levels and explanation of enhancement opportunities. • Detailed staffing recommendations for permit, and plan check in the City. - An implementation plan covering all recommended improvements consisting of: - Specific implementation work steps. - Suggested responsibility for implementation. - Timing for accomplishing each work step. - Cost and/or savings impact of each recommended improvement. We would review the draft report with the Department and City. Based on those reviews, clarifications and additional analysis will be provided as appropriate. We will present the final report to the City Council. We would also propose to conduct an end-of--study workshop to present and discuss our detailed findings and recommendations with key departmental managers and supervisors. We have found in the past that these workshops provide impetus to initiate the implementation process. Matrix Consulting Group Page 30 C/TY OF CUPERT/NO, CAL/PORN/A Propose/ to Conduct an Evaluation of the Permit Process 4. PROJECT SCHEDULE This chapter presents the schedule for the project. The City's proposed schedule, beginning the study on February 9t'' and completing the study by Match 31St is an ambitious schedule. The Matrix Consulting Group is prepared to begin the study on February '10th. For each day that the project is delayed while the contract is processed for approval, the schedule will be delayed by that day. However, the Matrix Consulting Group is prepared to begin work prior to approval of the contract by the City is this is acceptable to the City. The project schedule for completion of this study is presented, by week, in the table below. As noted, the project will be completed in two months. TasK 1 2 3 4 5 6 7 1 Identi Ke Issues 2 Develo Profile 3 Focus Grou s 4 Surve Staff Attitudes 5 Benchmarkin 6 Evaluate Processes 7 Evaluate Staffin Levels .. .-.-_u ~___, o~~.~s Matrix Consu/ting Group rage s~ C/TY OF CUPERT/NO, CAL/PORN/A Proposal to Conduct an Eva/nation of the Permit Process 5. FEE PROPOSAL Our costs to provide these services would be $39,800. We would be pleased to enter into a fixed price contract for this amount. Task Officer Senior Manager Totat 1. Identify Key Issues 8 0 8 2. Develop Profile 8 24 32 3. Conduct Focus Groups O 16 16 4. Survey Staff O 8 8 5. Conduct Bench marking 8 16 24 6. Evaluate Processes 12 32 44 7. Evaluate Levels of Staffing 12 16 28 8. Develop Draft Report 16 24 40 Total Project Hours 64 136 200 PROJECT COSTS Rate /Hour Officer $225 $14,400 Senior Manager $175 $23,800 Total Professional Cost $38,200 Travel $1 ,350 Printing and Repro Services $250 Total Expense Cost $1,600 TOTAL PROJECT COST $39,800 We typically invoice clients either on the basis of completion of tasks associated with the work plan or on a monthly basis up to the amounts shown per task. Matrix Consu/t/ng Group Page 32 C/TY OF CUPERT/NO, CAL/PORN/A Proposes/ to Conduct an Eva/uatfon of the Permit Process 6. PROPOSED CHANGES TO SAMPLE CONTRACT The Matrix Consulting Group does not propose any changes to the sample contract. Matrix Consu/ting Group Page 33 OFFICE OF THE CITY CLERK CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3223 • FAX: (408) 777-3366 C O P E RT I N O W EBSITE: www.cupertino_org March 19, 2009 Matrix Consulting Group 721 Colorado Avenue, Suite 101 Palo Alto, CA 94303 To Whom It May Concern= A fully executed copy of your agreement with the City of Cupertino is enclosed. If you have any questions or need additional information, please contact the Community Development Department at (408) 777-3308. Sincerely, CITY CLERK'S OFFICE Enclosure