Transcript No Slide Title

MODULE 3
.
MANAGING AN
ENGINEERING ORGANIZATION
Alex Pascual
Learning Objectives
• Identify the contents of a capital improvement
program.
• Establish an annual schedule for delivering capital
projects.
• Establish optimum staffing level for an
engineering organization.
• Determine the need for performance measures.
Administration
Building Division
Engineering Division
Current Development
Capital Improvement
Program (CIP)
Neighborhood Services
Capital Improvement Program (CIP)
Design Section
Annual CIP Budget Preparation (10-Year Plan)
Design Oversight
Construction Section
Construction Administration
Construction Inspection
Grant Application
Grant Application
Grant Administration
Mission Statement
To deliver the Capital Improvement
Program projects in a cost-effective and
timely manner.
What is a
Capital Improvement Program
(CIP)?
A CIP is a realistic action plan for
delivering capital projects.
Annual 10-Year
Capital Improvement
Program
1st year is funded
Remaining 9 years is for planning purposes
Plan is updated every year
10-Year
CIP
Plan
 Identifies long-term needs
 Projects revenues on long-term basis
 Allows buildup of funding over a number of years for major projects
 Provides “early warning” on funding shortfall on the latter years of the plan,
thus allowing a city time to develop strategies on handling the future funding
shortfall
 Provides a realistic fundable long-term plan
 Results in a realistic action plan
 Provides a transparent plan
Key Elements of a CIP
List and schedule of projects
 Method of prioritizing projects
 Schedule projects based on available fund balances
Reliable cost estimate
Well-defined project scope
Good estimate
Key Elements of a CIP (cont.)
Realistic revenue projections
(local, state, federal)
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Gas Tax
AB 2928
Measures
Propositions
Developer Fees
Grants
Key Elements of a CIP (cont.)
Fund Allocation/Balances
 Allocation of funds over the 10-Year Plan
 Fund balances over the 10-Year Plan
Mission Statement:
“To deliver the Capital Improvement
Projects in a cost-effective and timely
How?
manner.”
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Staffing Structure
Annual Delivery Schedule for Capital Projects
Annual Staffing Plan
Tracking Progress of Projects
Performance Measures
Staffing Structure
 Based on 10-Year Plan Workload
 Optimum balance between staff
and consultant
CIP 10-Year Plan
50
45
40
$ Million
35
30
25
20
15
10
5
0
0
1
2
3
4
5
Year
6
7
8
9
10
Annual Delivery Schedule
of Capital Projects
Examples of things to consider when scheduling
projects:
 Minimize traffic impact by performing street work during
summer when schools are closed
 Consider regulatory requirements – e.g., perform creek work
during non-rainy season window
 Bid projects at certain times to encourage bidders to bid low
 If a project is grant-funded, comply with milestone
requirements
Annual Delivery Schedule
of Capital Projects (cont.)
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Community or neighborhood desire or needs
Other on-going projects
Management and policy maker directions
Workload distribution
Etc. ….
Annual Staffing Plan
Assign staff to capital projects per the Annual
Delivery Schedule of Capital Projects
Identify the need for consultants
 Right consultants for right projects
 Evaluate the need for master consultant agreements to streamline schedule
 Generally, engaging consultants should not drive the schedule critical path
Identify the need for part-time employees
Tracking Progress of Projects
 Monthly Report – use Excel, Access, etc.
 Monthly Meetings
 Weekly Meeting for a specific project – consider size,
complexity, time sensitivity, and other overriding
considerations
 Review and follow-up with staff key project milestone
dates long before they happen, thus allowing for sufficient
time to address potential issues
Performance Measures
 Number and percent of project designs that proceed according
to the Annual Delivery Schedule of Capital Projects approved at
the start of the fiscal year (measure based on meeting the bid
opening date) Target – 90%
 Number and percent of projects with total construction contract
change order cost not exceeding 5% of the bid award amount
Target – 90%
 Number and percentage of projects with total design cost within
the design cost Target – 90%
Performance Measures (cont.)
 Number and percentage of projects completed with the
total construction cost within the established budget
Target – 90%
 Number and percent of projects with total construction
management cost within the established construction
management budget Target – 90%