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Home My WebLink AboutIR 8591 ^ ' INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8591 To the Mayor and Members of the City Council Page 1 of 3 40� SUBJECT: 2004 CAPITAL IMPROVEMENT PROGRAM PROJECT XA IMPLEMENTATION UPDATE At the February 17, 2004 Pre-Council meeting, Council members asked for additional information regarding several issues related to the implementation of the Bond Program. We have prepared the following in response: • Project Management Implementation System — Over the past few months, the Engineering, Water, and Transportation Public Works Departments have re-engineered our capital project management irnplementation system, The resulting "Guide to Successful Project Implementation", will improve the team concept and create/clarify an environment of accountability, responsibility and authority. With the new business processes identified in the Guide, the scope, schedule and budget (SSB) for each project will be clearly identified and documented. With the SSB in place, we will be able to monitor progress and success by comparing results back to these baselines. • Quality assurance — 0 Staff is reviewing the construction standards to ensure that the specifications will produce infrastructure with a long life and reduced maintenance cost; N Using the existing qualification-based selection system, only the most qualified consultants will be hired; 0 The Guide to Successful Project Implementation calls for quality assurance reviews at conceptual, preliminary, and final stages; 9 Construction Inspection staff will conduct "constructability" reviews Li Construction — • Review construction with regular and random inspections; • TPW and Water will jointly fund a Quality Control Manager position to evaluate projects from a customer/owner and citizen point of view; • Reviewing inspection staffing needs; • Schedules • Staff is evaluating the existing liquidated damages clause for construction that exceeds the allotted contract time • Evaluating early completion incentive bonus program, • Working to minimize inefficiencies related to bidding process, utilities, and street paving. • Private Utility delays and expense of relocating utilities rem concern for completing all Bond projects within schedule AN Oudqetl�...... ..... o Audit Financial Controls — The City of Fort Worth has many checks and al'I' no'e""' 'Pl, to ensure that bond funds are spent appropriately. For example, t 70--im Department conducts independent random reviews of approximately 15 construction projects each year; The Capital Projects Office will continue to monitor compliance with the ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS ' . INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8591 To the Mayor and Members of the City Council April 20, 21004 Page 2 of 3 SUBJECT: 2004 CAPITAL IMPROVEMENT PROGRAM PROJECT 187,1 IMPLEMENTATION UPDATE Bond covenants, review all requested Bond Fund Transfers, and will have the sole authority to create project numbers (authorizes spending); The "Guide to Successful Project Implementation" requires that the scope, schedule and budget (SSB) for each project be clearly identified and documented thus establishing clear, specific, and verifiable project limits; all change orders that affect the SSB require approval of the sponsoring departments. u Communication — Staff proposes to establish annual goals for each category and communicate project, category, and program status as follows: • Capital Improvement and Infrastructure Committee 0 Report monthly - 1 category each month. • City Council: 0 Report quarterly - Overall Program status • Community: 0 Report on an ongoing basis via web-based status reports, City page, etc. • Neighborhoods: Staff plans to expand the existing neighborhood communications programs for the Infrastructure Departments to include regular progress reports as well as the ongoing design and pre-construction neighborhood meetings. Li Financial/Proiect Management Tools — Past Bond Programs were completed successfully. The City met citizens' expectations and the Citizens' approval of 2004 Bond Program affirms their confidence in the City to produce quality projects. There are still challenges to proactively manage projects/ programs. The current tools make it difficult to gather and report financial data on a timely basis. Staff tracked funds using best tools available, but there was no agreed upon system citywide. The Current Financial Management System does not provide capital project tracking tools. There is a need to create common business/project management processes. What will a new CIP financial/ project management system provide? • Integrate project management with financial/budget tracking • Tool to track and prooect costs enabling project managers to proactively make changes if necessary to bring projects in on time and within budget • Reliable, historical data for future bond program planning • Easy, user-friendly access to detailed project information and executive level roll-ups • A shift in focus from reporting information after the fact to proactive management of projects and funds. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8591 To the Mayor and Members of the City Council April20, 2004 TEO Page 3 of 3 SUBJECT: 2004 CAPITAL IMPROVEMENT PROGRAM PROJECT IMPLEMENTATION UPDATE Ultimate Solution —Will cost about $2.5 - $3 million (System Software/hardware/implementation costs, software/project management training costs). Total ultimate solution cost is about 0.4% of the 6-year, $753 million bond programs ($273 million StreetIDrainage/Parks/Facilities Bond Program + $480 million Water Bond Program). Task Completion Date System Evaluation May '04 Product Selection June '04 Council Authorization June '04 Base System Install Jan '05 System Integration June '05 roll Interim Solution for Financial/Project Management System: We are improving existing processes/policies immediately: • Reviewed existing tracking systems within each Department. • Implemented new project number/cost center protocol and authorization process • Created a central data warehouse to provide readily available financial data and consistent, accurate reporting tools City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS _