HomeMy WebLinkAboutBooz, Allen and Hamilton, Inc - 1978-02-21 1
SEeiN1L40 ��
AGREEMENT
,,."-S AGHEEMFMT, made and entered into this_&�day of
_February, 1978, by and between the CITY OF HUNT-NGTON BEACH
(her eina.fter called "City") , and BOOZ-ALLEN & HA_MILTON, INC.
(hereinafter called "Consultant") .
W I T N E S S E T H
I. RECITALS;
WHEREAS, CITY desires to have management audit
performed in certain CITY departments; and
In order to accomplish this purpoa--;, it is necessary
to obtain the services of a firm qualified in the field of man-
agement auditing; and
CONSULTANT is a firm with experienced and skilled
personnel qualified to render consulting services in connection
with management audits,
NOW, THEREFORE, the parties hereby mutually agree
as fo.;.?ows
II. SERVICES SCOPE OF WORK:
CONSULTANT w': 11 perform management audit services
in accordance rTith CONSULTANT'S proposal, dated. December 16, 1977,
which 7s incorporated herein by reference as Exhibit "A."
111. TIME OF COMPLETION
CONSULTANT'S work skull extend over a period of
four (4) calendar months from the original daze of authorization
and in accordance with provisions of Exhibit "A." This contract
1.
i
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shall terminate on that date unless otherwise extended by mutual
consent of the parties. The date of authorization shall be the
date of execution of this agreement by CITY'S duly authorized
representative. It is under.3tood that time is of the essence
for the performance of th�.s agreement
IV. COMPENSATION FOR CONSULTANT':
The CITY agrees to pay the CONTRACTOh., as oompensa-
tion for the services set forth herein, the stem of $78,000.
Payment under the Agreement- shall Ut-: made promptly by the CITY
upon submission by the CONSULTANT of m,nthly invoices in accord_.
mace with the CONSULTANT'S standard billing procedure at the
following times:
March 31, 1978 $1:p, 00
April 30, 3.978 19,500
May 31, 1978 19,500
June 30, 1978* 19,500
$78,000
*The last bill nc�'; be submitted until she
three final reports have be ced to the CITY.
It .is expressly` unr erstood and agreed that th-'s
written Agreement constitutes the entire a.p-eement of CONTRACTOR
and CITY and in no event ahall CONTRACTOR be entitled to any
c#ompensaton, benefits, reimbursements or ancillary services
other than tn.ose provided for herein.
V, TERMINATION:
CITY may term1 nate th.s agreement at its convenien4 e
2<
i
upon written notice to CONSULTANT. In the event of such ter-
mination, CONSULTANT shall be compensated for all services ac-
tually performed priors to CONSULTANTrS receipt of notice of
termination less any aftounts theretofore paid by CITY.
V11 SUCCESSORS AND ASSIGNS;
CITY reposes personal confidence in CONSULTANT and
has contracted for the personal service of CONSULTANT. Accord-
p;
ingly, CONSULTANT shall not assign, transfer, convey or etherwis
dispose of this agreement or .any title or interest therein nor
sublet nor subcontract any of the work provided for herein without
first obtaining written consent from CITY. It is expres.:,ly
understood that the bulk of the services performed pursuant to
this agreement .re to be performed by the individuals named in,
Exhibit "A. "
VTI. NOT70ES
Notices pursuant to t;iis agreement shall be given
by United States mail, postage prepaid, addressed to the p rties
hereto as follows
A. City of Huntington Beach
Attention: City Administrator
Post Office sox 19O
Huntington Beach, Calif�)rnia 9264$
B. Booz-Allen & Hamilton, Inc,
555 California Street
San Fr-%nci.sco, California 94104
All such notices are deemed received three (3)
calendar days ;after such deposit.
VIII. WOR�MN I S COMPENSATION INSURANCE
In performance of tbis Agreemere , CONSULTANTS is an
3�
independent contractor. CONSULTANT agrees to provide CITY with
evidence of workmen�s compensation insurance for its employees
in a form acceptable to the City Attorr- y of CITY.
IX,. INDEMNIFICATION:
CONSULTANT agrees to protect, defend, indemnify and
to save and hold harmless CITY, its offi;:ers, agents and employees
from and against any loss, damage or expense either by reason of
any suit, claim, demand or ,judgment or otherwise, arising out
of any act •.r omission of CONSULTANT, its officers, agents,
employees subcontractors in the performance of or in
(rest of page not used)
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4.
o r
consequence of this agreement.
IN WITNESS WHEREOF, the parties hereto have executed
this agreement the day, month and year first above written.
CITY OF HUNTINGU'ON BEACH
a municipal corporation
y ell
RONALD R. PAT i INSOPt
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk C y Attoq-,
INITIATED AND APPROVED:
jTji&City Administrator
p SOOZ-ALLEN & HAMILTON, INC
By
E. W. KELLE�
Vice President
L
SUMMARY OF THE
MANAGEMENT AUDITS
OF THE
HUNTINGTON BEACH'
Public Works Department
Library Department
Police Department
ti
g �0?, ALLEN & HAM I LTON Int .
Management'Consultants
October 1978
c
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CONTENTS
BACKGROUND AND OBJECTIVES
DEPARTMENT OF PUBLIC WORKS: RECOMMENDATIONS
LIBRARY: RECOMMENDATIONS
POLICE DEPARTMENT: RECOMMENDATIONS
DEPARTMENTAL RESPONSE
SUMMARY
i
BACKGROUND AND OBJECTIVES
1. DURING THE 19601S, HUNTINGTON BEACH LED THE COUNTRY IN POPULATION GROWTH
Huntington Beach grew from a small town to an intermediate sized city
virtually "overnight
City organization and staff grew at a rapid rate to meet increased demand
for services.
2. S I NCE 1973, THE RAP I D GROWTH RATE HAS DECLI NED AND THE C ITY GOVERNMENT
HAS ENTERED A PERIOD OF BALANCING SERVICE LEVELS AND IMPROVING ITS
MANAGEMENT OF RESOURCES
As developable land became less availahle and more expensive, city growth
rate declined.
City management acted to put the "brakes on" municipal growth in the
mid-1970's (Exhibit 1).
- Tough constraints were placed on departmental staff and
budget increases to avoid overcommitment.
EXHIBIT I
Huntington Beach
GRONTH TRB-NDS
Fiscal Year Average
Annual.
1973 1974 1975 1976 1977 1978 Chance
POPULATION 137,189 143,G36 146,400 1.51,500 157,800 160,000, 3.3%
EMPLOYEES 770 875 901 889 950 1,051 7.2%
GENERAL FUND 1G.7run 18.51mn 21.5mm 23,3mm 28.2mm 30.9nm 17.4%
(Constant
Dollars) 7.4%
t
- CETA staff were employed to meet additional service demands.
- Zero-based budgeting was introduced in early 1977 as a supple-
meat to program budgeting to critically reevaluate service needs
and levels.
3. MANAGEMENT DETE'?MINED THAT AN IN-DEPTH EXAMINATION OF ALL DEPARTMENTAL
OPERATIONS IN 1978 WILL ASSURE IMPLEMENTATION OF ITS ECONOMY PROGRAM
ZBB has identified acceptable service levels and enhanced budget control
of present operations.
Departmental managers agreed that a professional examination of their
operations would help them to provide services a¢ minimum cost.
City administration established the scope of the management audits to
include:
- Management practices and procedures
- Goal setthg
Organization and staffing
- Financial management
- Decision-making Processes
Expectations of performance and efficiency
City administration has stated the intent to have all City activities critically
examined by an independent outside consultant„
Selection of the initial Departments for the audit studies was based on the
fallowing criteria:
- The :study should not interfere with critical phases of any
department's annual work program.
The number of departments selected for stud should re recant
p y p
a manageaLle project for contractors.
The City should be able to appraise outside contractor pro-
ducts and performance priorto making further study
commitments.
The combined budgets of the selected departments should be
large enough such that implementation of any immediate cost
savings identified would offer significant reductions to the
Fiscal 1978-1979 City Budget.
4. BOOZ, ALLEN & HAMILTON WAS SELECTED BY COMPETITIVE BID IN FEBRUARY, 1978
TO CONDUCT THE MANAGEMENT AUDITS OF THE PUBLIC WORKS, LIBRARY AND
POLICE DEPARTMENTS
These three departments were selected because:
Departmental managers felt the timing was appropriate.
The three departments employ 6110 of the City staff and spend
49% of the General, Fund budget.
The study, objectives were
Report on the eff and effect i�,en es s of each department's
organization and op,:i ations.
- Define areas where economies could be achieved or
effectiveness improved
Our approach to the study was to be:
Address and report on each department separately and
lndooendent y.
- ApplY professional standards and judgement to team findings
and recommendations.
Actively consult and advise City and departmental managers
during the course of the study can findings and recommendations.
Complete the three reports by the end of May, 1978.
WHAT WE FOUND
In general, we found all three departments to be soundly administered and efficiently
operated. in each of the departments involved, the staff and management cooperated with
the management audit team.
Following is a brief summary of the more creative and innovative management con-
cepts utilized by the three departments:
1. PUBLIC WORK
Innovations in Public Works included:
F+'. °s acsigne�; 'o-engineering staff to maximize Broad responF.,
productivity.
Crew work programs during inclement weather.
Monitoring devices on selected equipment to warn of failure, and
track production or costs
s
2. Li BRARY
The Ubrgry has been creative in the development of:
The Center facility.
The use of team management.
The development of automated catalog and circulation control
systems:
3. POLICE DEPARTMENT
The Police Department has been particularly innovative in the areas of manpower
deployment and operating systems:
Pioneering of the 10-4 deployment program.
Operation of the helicopter program.
Development and implementation of the computer aided dispatch.
Development of an automated vehicle locates system.
Development of the automated traffic reporting system.
Use of federal and state funds to support many programs.
THE NEXT SECTIONS
The following sections briefly highlight the major recommendations we beiieva should
be implemented in the three departments,
DEPARTMENT OF PUBLIC WORKS: RECOMMENDATIONS
I. REORGANIZE THE TOP MANAGEMENT STRUCTURE (EXHIBIT III TO IMPROVE.
Planning and coordination
_Delegation and scope of authority and responsibility.
2. RESTRUCTURE ENGINEERING TO:
Improve efficiency.
Balance the workload.
Provide more responsive service'.
3. COMBINE WATER AND SEWERISTORM DRAIN OPERATIONS TO REALIZE STAFF
AND EQUIPMENT ECONOMIES
EXHIBIT 11
Huntington Beach
Department of Public Works
PROPOSED ORGANIZATIONAL STRUCTURE
PUBLIC'
WORKS
DIRECTOR
CITY GENERAL
ENGINEER SERVICES
SUPER-
INTENDENT
UTILITIES ASSISTANT STREET AND VEHICLE BUILDING
SUPER- CITY PARKWAY AND AND
INTENDENT ENGINEER MAINTENANCE EQUIPMENT GROUNDS
SUPERINTENDENT MAINTENANCE MAINTENANCE
SUPERVISOR SUPERVISOR
STREET STREET
TREE AND CLEANING
LANDSCAPE AND
MAINTENANCE REPAIR
SUPERVISOR 3UPERVISOR
I
4. CREATE A GENERAL SERVICES DEPARTMENT FOR VEHICLE AND BUILDING
i1MAINTENANCE TO: _.
Enhance cost center management.
Improve service to other amity units.
5. AT THE SANE TIME:
Centralize all vehicle maintenance functions to improve service and
reduce costs.
Institute cost control procedures for Building Maintenance.
6. IMPLEMENT PROJECT PLANNING AND MONITORING TOOLS
7. MODIFY BUDGETING AND FINANCIAL MANAGEMENT PRACTICES
8. IMPLEMENT COST ACCOUNTING TO TAKE ADVANTAGE OF OPPORTUNITIES TO
COMBINE S "'MILAR ACTIVITIES FUNDED FROM SEPARATE SOURCES
9. AUTOMATE TO IMPROVE THE EFFICIENCY OF THE PROPOSED DATA COLLECTION AND
ANAf YS IS NEEDED TO MEET .I NFORIMT1 ON REQU I REMENTS
ID. REDUCE 'STREET MAINTENANCE COSTS THROUGH PLANNING, EQUIPMENT DISPOSAL
AND STAFF ATTRITION
H. EXPAND WELLWATER PRODUCTION AND IMPLEMENT STEPS TO AVOID FUTURE
WATER MAINTENANCE CGSTS
12. THE TOTAL IMPACT OF THESE RECOMMENDATIONS IF IMPLEMENTED WOULD
REPRESENT CONSIDERABLE PRODUCTIVITY IMPROVEMENTS AND COST
SAVINGS (EXHIBIT III)
EXHIBIT III
Huntington Beach
Department Of Public Works
COST AND PRODUCTIVITY IMPACTS
OF THE 14ECOMMENDATIONS
Recommendation Cost Increase Cost Reduction Improved Productivity At Same Cost
ORGANIZATION
1. Reorganize top manage- Improved overall planning and
ment service responsibilities
2. Restructure Engineer- Salary differences (1) Reduction of four survey posi- More efficient distribution of
ing salaries for three, positions (2) tions workload amot)g staff
3. Create a utilities Reduced cost from equipment and
division crew sharing
4. Reorganize Maintenance See recommendations 8, 9, IQ,
Division 11, 12
PROGRAM MANAGEMENT
1. set and review policy Avoid inflationary costs of Less time consumed by low
priorities delayed projects priority work
2. Develop and implement Avoid potantial loss of AHFP staff efforts more clearly
project scheduling county monies directed and scheduled
tools
3. Modify program account
structure
4. Conduct fiscal Possible reduction of water 7�oid newer operations and
analysis in-•lieu tax co general fund replacement losses
Avoid unnecessary equipment and
building improvement outlays
(1) rot any necessary promotional increases for
Assistant City Engineer
Assistant- Traffic Eng.leer
Pieldr Design, and noveaopment Chiefs
(2) special project engineer. Assistant heal Pro(Xxty A14ant, Account Clerk
EXHIBIT 111 (2)
Recommendation Cost Increase Cost Reduction improved Productivity At Same Cost
S. Implement cost Loss of productive time to tims Generate offsetting revenues
accounting reporting from other fund sources-
6. Automate cost account- Capital outlay for,hardware and wetter estimatir; of force Reduce analysis and budget pre
ing and restructure software account and contract work pareAtion time
files operating expenses Orderly :files will reduce pro- Reduce file search time
ject delays, public liability
and potential sewor installation
under. capacity
7. Improve engineering Cost: nf cash contract design Offsetting revenues produced Reduced staff time on design
management ork' from property management drafting and revisions
Avoid potential. maintenance . Less delay down time
costs later
a. Improve maintenance Reduce idle crew time
productivity Improve CE A productivity
9. Reduce street main- Avoid higher cost contract Less crew down time through
tenance costs paving improved scheduling
Avoid untimely street failure
and repaving costs
Reduce street cleaning costs
by $140,000
10. Centralize vehicle Better equipment utilization of more efficient scheduling with
maintenance fewer vehicles a larger crew
Contract repairs performed at
lower costs
Lower operating costa; through
scheduled maintenance and
replacement
11. Improve building and Lower costs through contracting Less down time of journeymen
grounds cost controls for specialized but occasional through greater assignment
work flexibility
Eliminate unnecessaxy building
improvements
Greater offsetting charge back
revenues
PRduution of several journey-
men pos:itiuns
EXFIHIT III (3)
Re—mmendation Cost Increase _ Cost Redaction Improved Productivity At Same Cost
12. Encourage neighbor- Cost of materials and mailings Avoid future maintenance costs
hood maintenance of same or increased budget for
street trees trees
13. Expand well produc- it cf additional well drilling, Avoid higher cost MWD supply
tion and installation R tallation crew and equipment Avoid future maintenance costs,
capacity lost revenue and higher contract
costs
14. Adjust space utili_ Minor cost of expansion Into Less interruption of engineering
zation unoccupied space staff activities
LI BRARYM RECOMMENDATIONS
1. THE DUTIES AND RESPONSIBILITIES OF THE DIRECTOR AND ASSISTANT
DIRECTOR SHOULD BE MORE CLEARLY DEFINED
2. THE LIBRARY SHOULD CONTINUE ITS EFFORTS IN TEAM MANAGEMENT
3. THE LIBRARY SHOULD COMBINE THE MANAGEMENT AND OPERATIONS OF
THE CURRENT REFERENCE, ADULT AND CHILDREN°S SERVICE UNITS INTO
A SINGLE UNIT
4. APPOINT A FULLTIME LIBRARIAN TO DIRECT THE "OUTREACH" PROGRAMS
5. EXPAND "OUTREACH" PROGRAMS ANDPHASE OUT THE EXISTING ANNEXES
6. WE RECOMMEND THE LIBRARY ADOPT A SEVEN-STEP ANNUAL PLANNING PROCESS
The Ubrary should make planning and evaluation an integral part
of the budget process (Exhibit IV).
The Library should plan within reasonable fiscal limits.
7. COLLECTION DEVELOPMENT SHOULD REELECT A LONG AND SHORT TERM
PERSPECTIVE OF LIBRARY NEEDS AND RESOURCES
A larger portion of the budget should be devoted to collection
development.
S. CURRENT STATISTICAL. AND MANAGEMENT REPORTS SHOULD BE MADE MORE
MEANINGFUL
EXHIBIT IV
Huntington Beach
PROPOSED LIBRARY PLANNING
BUDGETING PROCESS
OBTAIN LONG
RANGE REVENUE
PROJECTIONS
(3)
DEFINE Nif;'ASURF, Vvbl
—
MX-NT CRITERIA
(2) (4)
FORMULATE SERVICE DETERMINE PROGRAM
GOALS & OBJECTIVES RESOURCE CONSTRAINTS
tf;r (�)
ASSESS DEVELOP
NEEDS ANNUAL PLAN
c$r
EVALUATE (6)
RESULTS SUBMIT TO
COUNCIL, ETC.
(7)
REMISE BASED ON
INPUT
(�) (2) (3) (5)
BUDGET WORKSHEETS, ASSEMBLE BUDGET EVALUATE IMPACT PREPARE BUDGET SUBMIT FOR
INSTRUCTIONS FISCAL PERFOR- OF PLAN ON IN ACCORD WITH REVIF'v4
MANCF DATA BUDGET CITY POLICY
I
POLICE DEPARTMENT: RECOMMENDATIONS
L. THE POLICE DEPARTMENT SHOULD ROUTINELY GATHER AND UTILIZE CITIZEN
INPUT IN PLANNING FOR THE DELIVERY OF POLICE SERVICES
?. THE DEPARTMENT SHOULD ESTABLISH FORMAL OBJECTIVES WITH THE COUNCIL
AND REGULARLY REPORT ON PROGRESS
3. THE DEPARTMENT SHOULD MAKE SOME SELECTED CHANGES TO ITS ORGANIZATION
STRUCTURE AND ASSIGNMENT OF RESPONSIBILITIES (EXHIBIT`�,'Q
A realignment of responsibilities between the four divisions, including:
(' Administrative Services should handle most of the day-to-
day support services of the Department.
Special Operations should handle all r.ianning, research
and reporting activities, as well as communications and
records.
Realign Investigations into three units reporting to the
Captain.
EXHIBIT
Hnnti rld i Rr.ch
CITY RECOMMENDED ORGANIZATION PLAN.
ADMINISTRATOR
L*j
-
SPECIAL GMINISTRATIVE
OPERATIONS 'SERVICES
IACTiNG CHIEFI
PLANNING, COMMVNb PERSONNEL @ VEHICLE
RESEARCH CATIONS RECORDS LEGAL pUDLS AFFAVRS i'ROPERTV MAINTENANCE TRAINING
&nEPORl"INO L�
+ Reeearrb.&Operations • Dispatching a RecordsMninlenanee • Legal.Service • Recruflirnq& • Property& • I"paratlon • Slate Mandated
Analysis. + Complaints s Teletype + D.A.Liaison Selection Evidence Control • Regular Training
• Budgeting • Security/Alarms • Court Llalson- • Background • Purchasing. Maintenance • In House Training
• Grant Program • Equfp:ren2 Inveligalions • Building • .Career
Special Projects Maintenance. a Internal.Affairs Maintenance Development
• Operations Reporting • Front Des!c {{ • Peyrall
• Crime Reporting I • Puhlic Affairs
L.AnnggUBPS PROGRAM
WarrenUSubpoene
Service
L#RM INVESTIGATION
PATROL TRAFFICJ AERO TAIL LINCISTtNOATION INVESTIGATION INVErSTECIA iQATION
,1TIFIC GENERAL
patrol • Fnlorcament Operation a Booking o Crioartab
• SWAT 'a Accident • Maintenance • Processing. a Identification
Canine Investigation • Detention . ;?holograpbV -
e..Prisoner Recovery • Abandoned • Medfc-.t Sendcoi • Polygraphs PGRSON PROPERTY} JUVENILE&Relufn Vehicles Lid
CSBicycleSafatY CRIMES CRIMES CRIMES MENi
• AmbulanceTowinp
c Intpettion/Permils • Homicide. • Burglary, • Juvenile Crime ... .Dice • Narrolics • Burriisry
• Robbery • Theft • Runaways Sw"sslo" Enforcement ERfj-Icemonr
RESERVE LI.-V-ES.TEIINA"IL
Assault AvlrtTheft MbtmgPersons Barrmped}on/
PROGRAM . Prautl • Atson a Sex Crime% Liquor
• ForgerV Yiolatlorw
s
4. _CONTINUE, WHERE APPROPRIATE, TO REPLACE SWORN PERSONNEL WITH
NON-SWORN PERSONNEL'
5. THE CITY SHOULD TAKE STEPS TO REDUCE THE NUMBER OF MEDICAL SEPARATIONS
FROM THE DEPARTMENT
6. THE DEPARTMENT SHOULD ATTEMPT TO CONTRACT HELICOPTER SERVICES TO
NEIGHBORING JURISDICTIONS
7. THE PUBLIC WORKS AND POLICE DEPARTMENTS SHOULD COOPERATE IN
ESTABLISHING AND MANAGING AN IMPROVED VEHICLE MAINTENANCE PROGRAM
8. THE DEPARTMENT SHOULD EVALUATE ITS OVERALL SYSTEMS DEVELOPMENT
NEEDS BEFORE INVESTING FURTHER TIME AND MONEY IN EXPANDING THE
AUTOMATED CAPACITY
DEPARTMENTAL RESPONSE
1. AT THE CONCLI IS I ON OF THE AUDITS, EACH DEPARTMENT MANAGER WAS REQUESTED BY
THE CITY ADMIrASTRATOR TO RESPOND TO THE RECOMMENDATIONS AND SUBMIT
IMPLEMENTATION ;'SANS
Note concurrence or disagreement
Justify disagreements and propose alternatives
NNW
k
01
2 WE HAVE REVIEWED THE MANAGERS' COMMENTS AND GENERALLY AGREE WITH PROPOSED
ALTERNATIVES
Study recommendations assumed similar staffing levels were based on tile
most practical solutions at the time.
Interim developments changing the city's revenue base have introduced
staffing uncertainties.
Implementation of recommendations poses difficult decisions over time,
cost and staffing commitments.
Proposed alternatives for the most pert will achieve desired objectives of
economy and efficiency.
The city administrative staff will continue to work With departmental
managers to implement necessary improvements.
e
SUMMARY
The recommendations for the three Departments cover a broad ran
gee of areas
,,
including policy, management style, organization, procedures, staffing, and efficiency.
Successful implementation will regWre Council and Administra`Wnl support.'
L
-. `
Aft
COUNCIL-ADMINISTRATOR COMMUNIC TION
HUNTINGTON BEACH. ��,,..G-;g -
- e Gar z i� J
To Honorable Mayer and From F1 _ $o-
City Council: Members City Administrator
Subject MANAGEMENT AUDITS/POLICE, Date January 31, 1978�
PUBLIC WORKS, & LIBRARY cif
DEPARTMENTS
During the 3.977 budget hr�aring, it was mentioned several times by the
departments and staff that management audits on selected departments
ought to be carried out during the 1977/78 Fiscal Year. Money for
such audits was included in the contingency account when the budget
was prepared. As a result, three departments , Police, Public Works,
and Library have been selected for the first series of management
audits .
Requests for proposals were sent to ten firms seven of which responded:
Kapner, Wolfberg & Assoc. , Inc. ; Arthur D. Little, Inc. ; Arthur Young
Company; Touche Ross & Company; Peat:, Marwick, Mitchell $ Company;
Coopers & Lybrand; and Booz-Allen & Hamilton Inc. All firms were re-
quested to base their, proposal on doing the audits of all three depart-
ments . On the submitted proposals, the cost range varied from $46,000
plus a percentage of dollars for identified savings to $201,000. The.
seven firms were all interviewed. by the management team consisting of
myself, Dick Harlow, Erich Matthews, Darrel Cohoon, Earle Robitaille,
Bill Har.tge, and Walter Jol--son and the recommendation for se'.ection
was ,based on the following criteria:
1. Understanding of the City' s needs and requirements
2. Procedures and methodology to be used
3 . Experience of similar related projects
4. Experience of personnel
5. Client references
6. Follow-up ..:.asures for impl�.menting recommendations
7. Cost for the audits
The management team was highly impressed with tre quality of the
firms that were interviewed and the recommendation for selection was
difficult.
The firm that is r-.v,.ommended for the management audits is Booz-Allen
Hamilton Inc. Cost of the audits e submitted in the firm's r: < .-tisal is
not to exceed $78,000. The time pe Lod for each audit beginr Y with
the Police Department is not to exceed three months,
Three of the firms-Toucle Ross $ Company; Arthur Young & Company and
Peat, Marwick, Mitchell & Company--were also seriously considered.,
However, after an in-depth interview and checking with client references,
C
CA 78-10 -2 January 31, 1978
MANAGEMENT AUDITS/POLICE,
PUBLIC WORKS, $ LIBRARY
DEPARTMENTS
it was our conclusion that Booz-Allen & Hamilton Inc. would do the
best job for the City. A representative for the firm will be in
attendance at the February 6, 1978, Council meeting to answer any
questions that the Council Members may have.
RECOMMENDED ACTIONt
Authorize the City Attorney to prepare an agreement for execution
between the City and the firm of Booz-Allen F Hamilton Inc. for
management audits of the Police, Public Works, and Library Departments.
Funding for said audits to come from the contingency account and is
not to exceed $78,000.
Respectfully submitted,
Floyd Belsito
City Administrator
FGB:EBM:bt;
77� .-
K
� u
s y ,�. �
M City of Huntington Be 'ch
P.O. BOX 190 CALIFORNIA 926tti3
�� ����.•` ,�: .•'- • QrFICE.flr THE CITY C1,hRIC
a
February.22,, 1978
Booz-Allen & Iiamilton, inc.
555 California Street
San Francisco, California 94104
Gentlemen:
ti The City Council of the City of Huntington Beach at its regular
meeting held Tuesday, February 21, 1978, approved an agreement with
your firm to perform the management audits of the Police, Public
Works and Library Departments.
We are enclosing a duly executed copy of said agreement for your
records.
sincerely,
Alicia M. Wentworth
City Clerk
AMW:CB:bt
CITY OF HU T ING ON BEACH CA. 78-25',�
COUNCIL-ADMINISTRATOR COMMUNICATION"
HUNTINGTON BEACH -
To. Honorable Mayor and From Richard A, Harlow
City Council Members Acting C.4,cy, Administrator
Subject BOOZ-ALIEN & HAMILTON Date February lb, 1978
AGREEMENT
Pursuant to Chapter 3. 03.070(e) of the Huntington Beac1- 1,1',inicipal Code
the City Administrator and City Attorney have ne oval d r formal
written contract with Booz-Allen F Hamilton, Inc. E,)r n ->.agement audit
services. Sub-section (f) requires that the final neprit .toted contract
be approved by the City Council and that the City Clc.l- and Mayor be
authorized to execute the final contract. T'he fl-ral .;ontract provides
for a fixed price of $78,000 for the contract ti olrk to be paid in four (4)
installments.
RECOMMENDED ACTION
Approve the final negotiated contract and authorize the Mayor and City
Clerk to execute on behalf of the City:
Resp ully s .bm' t ,
'R' iard A. Harlow
Acting City Administrator
RAHobb `
Attachment
I