City of Calgary Recreation Business Unit: Lines of Service Review

Transcription

1 City of Calgary Recreation Business Unit: Lines of Service Review Final Report February, 2014

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3 Lines of Service Review Table of Contents CHAPTER ONE - EXECUTIVE SUMMARY INTRODUCTION PROJECT PROCESS... 1 CHAPTER TWO - LINES OF SERVICE DEVELOPMENT BUSINESS UNIT OVERVIEW CALGARY RECREATION BY THE NUMBERS METHODOLOGY LINES OF SERVICE... 5 CHAPTER THREE - CLASSIFICATION OF SERVICES METHODOLOGY RECREATION SERVICE CLASSIFICATION CURRENT STATE CHAPTER FOUR PERFORMANCE MEASURES COMPONENTS OF PERFORMANCE MEASURES DEVELOPMENT OF PERFORMANCE MEASURES FOR THE RECREATION BUSINESS UNIT CHAPTER FIVE RECOMMENDATIONS FOR NEXT STEPS iii

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5 1.1 INTRODUCTION - EXECUTIVE SUMMARY The PROS Consulting Team has been retained by The City to conduct a Lines of Service Review for the Recreation Business Unit as it prepares the City s Action Plan budget process. This report includes the results of work that has been conducted over an eleven week period. It makes some general observations of how Recreation is currently operating, and specifically focuses on developing and classifying each line of service utilizing the PROS Community Values Model. This work will also include recommendations on performance metrics to assist the business unit in measuring the success of its work. Performance measures developed were based on a PROS Methodology that emphasizes not only the effectiveness of work, but the efficiency of it as well. 1.2 PROJECT PROCESS The process for conducting the Lines of Service Review of the Recreation Business Unit consisted of the following elements: REVIEW OF ORGANIZATIONAL DATA A substantial amount of data was provided to PROS by The City and the information can be broken down into ten areas that are detailed below: Business unit structure for each service provided, (organizational/functional charts) Current and previous business plans including levels of service and current standards Program, facility and service offerings Current Cost Recovery goals and results for program, facility and service offerings Key performance measures and targets Organizational or operational review reports (annual reports) Executive Summary of Business Unit Budget Executive Summary of Partnership Agreements Current and previous business plans including levels of service and current standards Program, facility and service offerings REVIEW OF EXISTING LINES OF SERVICE The Recreation Business Unit as whole and then each of the existing lines of service were reviewed to gain an understanding of each of the existing lines of service. The lines of service as developed by Calgary Recreation before the project was initiated were as follows: Arenas, Athletic Parks and Sports Development AASD Arts and Culture Development ACD Aquatics, Fitness and Leisure Centres AFLC 1

6 City of Calgary Recreation Business Unit Civic and Community Partners CCP Customer Services: Program Registration, Facility Bookings and Inclusion Services CS Golf GOLF Recreation Asset (Facility) Management and Development RAMD Strategic Planning and Performance Management SPPM The following organizational chart depicts the alignment of the Recreation Business Unit with its existing lines of service for the City s BPBC3 process. COMMUNITY VALUES MODEL - DEVELOPMENT OF LINES OF SERVICE AND SUB-SERVICES The Community Values Model is utilized as the foundation to assess data and to inform analysis and draw conclusions as a result of these investigations. The Community Values Model is a model that has been developed and used by PROS. The model and its strategic objectives have been widely used as the foundation for completed and implemented master plans, cost of service studies, business plans and 2

7 Lines of Service Review feasibility studies in over 900 park and recreation agencies in North America. It has proven to be a meaningful way to look at an organizational unit and assess it from six perspectives. The following table outlines these six perspectives and identifies the main concepts that relate to each. Utilizing the PROS Community Values Model, new lines of service and sub-services were defined. CLASSIFICATION OF SERVICES AND SUB-SERVICES PROS Consulting worked with key management staff on what they consider to be core/essential services, important services, and value-added services based on observations, interviews, and operating practices for each line of service and sub-services. PERFORMANCE MEASUREMENT DEVELOPMENT The Consulting Team conducted two workshops with the management team to develop performance measures for each line of service and sub-service with impact metrics established and outcomes to be achieved based on effectiveness and efficiency. INFORMATION GAP ANALYSIS Upon completion of the processes outlined above, PROS conducted an information gap analysis to determine what information is necessary to be developed in order to assist the Recreation Business Unit in successfully managing forward. 3

8 City of Calgary Recreation Business Unit 2.1 BUSINESS UNIT OVERVIEW - LINES OF SERVICE DEVELOPMENT The City s Recreation Business Unit (Recreation) is one of the business units within the Community Services and Protective Services Department. The business unit s Recreation for LIFE service approach is founded on the belief that participation in recreation is important throughout an individual s life, regardless of ability. Basic skill development is required in order to encourage and maintain participation throughout life. Recreation offers programs and services that promote physical activity and creative involvement across all ages and development levels. 2.2 CALGARY RECREATION BY THE NUMBERS ,423 participants ages eight to 15 took part in the junior lifesaving club 800+ drop-in opportunities were made available to Calgarians 307,833 online recreation program guide visits 45 public art projects 320 events over 676 event days More than 1,000 participants celebrated Cultural Days 25,577 Fee Assistance Recipients 2.3 METHODOLOGY The PROS Team utilized the PROS Community Values Model to align Recreation's lines of service (LOS) & sub-services with Recreation s Master Plan and current organizational structure. The guidelines deployed are as follows: 1. Not all lines of services will have a sub-service. 2. All services and budgets under the current business plans and budgets must be included. 3. The lines of service and sub-services should cover the entire business unit budget with no overlap or gaps. 4. The lines of service and sub-services should outline a functional or logical grouping that is meaningful and distinctive to the business unit under review. 5. In developing the sub-services, it is important to keep in mind that the complexity and volume of information gathering and data analysis would likely increase with each subservice, so the total number of sub-services identified should not be greater than what is necessary to effectively conduct the review. 4

9 Lines of Service Review 2.4 LINES OF SERVICE Utilizing the PROS Community Values Model, the Consulting Team facilitated a workshop with the Recreation Management Team (RMT), in an effort to redefine the lines of service for the business unit. The tables on the following pages represent the new lines of services and subservices for the Calgary Recreation Business Unit. FACILITY-BASED PRODUCTS AND SERVICES Recreation is committed to providing facility-based products and services for the purpose of enriching and enhancing the quality of life of all Calgarians. Sub-services of the Facility Based Products Line of Service are as follows: SUB- SERVICE ADMISSIONS AND PASSES DESCRIPTION Result Calgarians access and use recreation facilities Outcome Calgarians are Active FACILITY RENTALS Sales of daily admissions and passes to Calgarians to gain access Arenas, Leisure Centres and Aquatic/Fitness Centres. Some admission and passes are provided at discounted rates. Result Calgarians access and use recreation facilities Outcome Calgarians are Active REGISTERED PROGRAMS Paid reservations that provide to Calgarians exclusive, private use of public space that is managed and maintained by Calgary Recreation and Calgary Parks. Result Calgarians access recreational programming Outcome Calgarians are Active & Creative The development, administration and implementation of formal programs that meet recreational and leisure needs of Calgarians. Calgarians, in most cases, pay a fee to participate in those programs. Examples include: swim lessons, fitness programs, visual and performing arts, and after-school programs. CUSTOMER SERVICES Result Calgarians know of and are supported in accessing Products and Services. Outcome Calgarians are Active and Creative Manage the allocation of permits by providing space to the public for recreational purposes on behalf of Recreation, Parks and School Board partners. Program registration services to citizens via phone. Marketing and communication for Recreation 5

10 City of Calgary Recreation Business Unit COMMUNITY-BASED PRODUCTS AND SERVICES Recreation is committed to providing community-based products and services for the purpose of enriching and enhancing the quality of life of all Calgarians. Sub-services of the Community Based Products Line of Service are as follows: SUB-SERVICE FESTIVALS AND EVENTS DESCRIPTION Result Calgarians have access to Festivals and Events Outcome Calgarians participate in cultural experiences that build a sense of community and enrich the vibrancy of Calgary Special events developed, organized and offered to the community as a whole, predominantly free of charge, for the purposes of encouraging mass social public participation. PUBLIC AND CIVIC ART Result Calgarians have access to Public Art Outcome Calgarians participate in a cultural dialogue that encourages community engagement. Calgarians benefit from the increased creativity and vibrancy of public places and spaces. Acquisition and exhibition of art that impacts Calgary s urban landscape and transforms the way Calgarians see, think and experience the city around them. Educational offerings are also provided. PARTNER-SHIPS (SPORT, RECREATIONAL AND CULTURE) Result Calgarians access sport, recreation and cultural products and services provided through community partnerships. Investments in community-based recreation opportunities are well managed. Outcome Calgarians are Active and Creative. Calgarians actively participate in community engagement and building activities. The development, management, implementation and evaluation of contractual agreements with a variety of public, private and non-profit entities for the purposes of effectively and efficiently providing and/or enhancing the offerings of sport, recreation and cultural products and services to Calgarians. 6

11 Lines of Service Review ASSET MANAGEMENT Recreation is committed to the effective stewardship of recreation amenities and facilities. Services include long term recreation facility planning, capital project management and the planning and implementation of lifecycle and maintenance projects associated with 52 facilities for the Recreation Business Unit. SUB-SERVICE RECREATION FACILITY PLANNING & DEVELOPMENT FACILITY PERFORMANCE AND MONITORING PROJECT MANAGEMENT & CONTRACT ADMINISTRATION DESCRIPTION Result Future Calgarians access recreation, sport and cultural opportunities Outcome Calgarians are Active and Creative Functions of this subservice include land planning, design and construction of new recreation facilities that meet the recreational needs of Calgarians. Result Recreation assets are maintained and/or optimized. Outcome Calgarians are Active and Creative Analytical and technical services to maximize the efficiency and effectiveness of facility systems including building automation, energy monitoring and facility optimization. Result Assets meet the recreation needs of Calgarians. Outcome Calgarians are Active and Creative Planning and implementation of preventative maintenance services as well as the upgrade and renovation of existing facilities. Repurposing and decommissioning services of obsolete facilities is also provided. Oversight of contractors that provide maintenance and lifecycle as well as design and construction services. Additional functions include the asset management consultation for partners. 7

12 City of Calgary Recreation Business Unit BUSINESS SERVICES Business services provides strategic oversight and development of the complex system of policies, procedures and processes that guide the Recreation Business Unit s operations. This line of service utilizes data analysis to provide process improvement recommendations to maximize the effectiveness and efficiency of the business unit: SUB-SERVICE DESCRIPTION STRATEGIC BUSINESS MANAGEMENT Result Long and short term strategic plans guide the Recreation Business Unit. Recreation Business Unit is well managed Outcome Calgarians recreation needs and expectations are met. Long and short term strategic planning and management to improve organizational effectiveness and business performance. Continual development, implementation and evaluation of performance management and budget. BUSINESS & MARKET RESEARCH, AND ANALYTICS INTEGRATED BUSINESS SYSTEMS Result Decisions are evidenced based. Outcome Calgarians recreation needs and expectations are met. Comparative performance measurement and analysis of the competing market for Recreation services. Also includes demographic and recreation trend analysis of Calgarians. Result IT and business systems and processes improve access to recreation products and services and provide data used in decision-making. Outcome Calgarians are active and creative. Recreation business unit is well managed. Oversight of a complex system of technological processes that supports customer service delivery and data driven business functions. 8

13 Lines of Service Review 3.1 METHODOLOGY - CLASSIFICATION OF SERVICES PROS Consulting has developed a classification of services methodology that has proven useful in assessing municipal services. The methodology is further defined as follows: DEFINITION & CRITERIA FOR CORE/ESSENTIAL SERVICES Core Essential Services are those programs, services and facilities the City must provide and/or are essential in order to capably govern the municipality. The failure to provide a core service at an adequate level would result in a significant negative consequence relative to the City s health & safety and economic and community vitality. The criteria for a core-essential service are: The agency is mandated by law, or is contractually obligated by agreement to provide the service. The service is essential to protecting and supporting the public s health and safety. The service protects and maintains valuable City assets and infrastructure. The City s residents, businesses customers and partners would generally and reasonably expect and support the City in providing the service, and that service is one that cannot or should not be provided by the private sector, and provides a sound investment of public funds. Core Essential Services are those services that recreation offers that provide all users the same level of opportunity to access the service. The level of benefit is the same to all users. Examples of Core Essential Services are providing accommodations and support to persons with disabilities in order to participate in mainstream recreational activities and providing opportunities for the public to participate in low cost recreational swimming. Core Essential Services normally have low level or no user fees associated with their consumption. The cost for providing these services is borne by the general tax base. DEFINITION & CRITERIA FOR IMPORTANT SERVICES Important services are those programs, services and facilities the City should provide, and are important to governing the municipality and effectively serving its residents, businesses, customers and partners. Providing Important services expands or enhances our ability to provide and sustain our City s core services, health and safety, and economic and community vitality. The criteria for important services are: Service provides, expands, enhances or supports identified core services. Services are broadly supported and utilized by the community, and are considered an appropriate, important, and valuable public good. Public support may be conditional upon the manner by which the service is paid for or funded. 9

14 City of Calgary Recreation Business Unit Service generates income or revenue that offsets some or all of its operating cost and/or is deemed to provide an economic, social or environmental outcome or result within the community. Important Services are services whereby the user receives a higher level of benefit than the general taxpayer. The taxpayer benefits as a whole because the service provides a more livable community and the service has a good public benefit as well. Examples of Important Services are youth sports, summer camp programs for youth, life skill programs and special events that promote healthy active lifestyles. DEFINITION & CRITERIA FOR VALUE ADDED SERVICES Value Added Services are discretionary programs, services and facilities that the City may provide when additional funding or revenue exists to offset the cost of providing those services. These programs and services provide added value to the City s residents, businesses, customers and partners above and beyond what is required or expected of the City of Calgary. The criteria for value added services are: Service expands, enhances or supports Core or Important services, and the quality of life of the community. Services are supported and well utilized by the community, and provide an appropriate and valuable public benefit. Service generates income or funding from sponsorships, grants, user fees or other sources that offsets some or all of its cost and/or provides a meaningful economic, social or environmental benefit to the community. Value Added Services can be priced using either a partial overhead pricing strategy or a variable cost pricing strategy. Partial overhead pricing strategies recover all direct operating costs and some determined portion of fixed indirect costs. The portion of fixed indirect costs not recovered by the price established represents the tax subsidy. Whatever the level of tax subsidy, Calgary Recreation staff needs to inform the users by letting them know that the City of Calgary is investing a certain dollar amount and/or what percentage level of investment they are making in their experience. 10

15 Lines of Service Review Service Category Description Level of Benefit Cost- Recovery Expectations Core Services the agency must provide to meet its mission, and statutory and/or regulatory obligations; maintains valuable assets and infrastructure investments; essential to protect visitor safety; preserves the integrity of natural and cultural resources; reasonably expected and supported (or demanded) by citizens and visitors. Community Largely supported by taxes with little or no costrecovery Important Services the agency should provide or are important to effectively serve citizens and visitors; may expand or enhance provision of core services; broadly supported and utilized by visitors, although support may be conditional upon the perceived benefit, quality, and pricing of the services. Merit Supported by a balance of taxes & earned revenues Value Added Services the agency may provide when they are fiscally sustainable through citizen and visitor support; add value above and beyond what is required or expected of the agency s core functions; are easy opportunities to integrate alternative providers and operators into providing services at one or more sites. Individual Heavily or fully supported by earned revenues 11

16 City of Calgary Recreation Business Unit 3.2 RECREATION SERVICE CLASSIFICATION CURRENT STATE The following tables represent the current state classification of the sub-services within each Calgary Recreation Line of Service. Classifications were determined by applying the above methodology in a workshop with RMT as facilitated by PROS. FACILITY-BASED PRODUCTS and SERVICES SUB-SERVICE BENEFIT COST RECOVERY CLASSIFICATION Admissions & Passes Merit 50% Important Facility Rentals Public-Individual 30-50% Important Registered Programs Merit-Individual 30-70% Important Customer Service Public 0% Core COMMUNITY-BASED PRODUCTS and SERVICES SUB-SERVICE BENEFIT COST RECOVERY CLASSIFICATION Festivals & Events Public 0% Core Public & Civic Art Public 0% Core Partnerships (Sport, Recreation, Culture) Public 0% Core ASSET MANAGEMENT SUB-SERVICE BENEFIT COST RECOVERY CLASSIFICATION Recreation Facility Planning & Development Facility Performance & Monitoring Project Management & Contract Administration Public 0%-50% Core Public 0% Core Public 0%-50% Core 12

17 Lines of Service Review BUSINESS SERVICES SUB-SERVICE BENEFIT COST RECOVERY CLASSIFICATION Strategic Business Management Business & Market Research, and Analytics Integrated Business Systems Public 0% Core Public 0% Core Public 0% Core 13

18 City of Calgary Recreation Business Unit PERFORMANCE MEASURES Performance measures quantitatively inform organizations about how successful their products and services are in meeting their intended outcomes, as well as the processes that produce them. They are a critical tool that assists in the understanding, management, and improvement of organizations. Performance measures provide organizations with the information necessary to make intelligent decisions about work that is performed. Performance measures can tell us: How successful work is being performed If processes are in statistical control If goals are being met If and where improvements are necessary If customers are satisfied 4.1 COMPONENTS OF PERFORMANCE MEASURES Performance measures in recent years have become the backbone of successful organizations and moved beyond the simple collection of facts that measure volume of work. The key components of modern performance measurement are: Outcomes are the benefits or changes for participants in programs or recipients of services during or after the program or strategy is implemented. Inputs are the physical, financial and human resources allocated to or consumed to do work Activities are what the program or strategy does with the inputs provided. Activities include the tasks, steps, methods, techniques and operations performed Outputs are the elements of operation or level of effort, the products or services resulting from the implementation or accomplishment of work. Efficiency is measured by the unit cost required to perform the work in terms of dollars. How well did you use your budget to perform work? Effectiveness is a service quality measure of the work that you performed. Effectiveness is measured in % of work you set out to perform. 14

19 Lines of Service Review 4.2 DEVELOPMENT OF PERFORMANCE MEASURES FOR THE RECREATION BUSINESS UNIT Upon the completion of the development and classification of the Recreation Business Unit s Lines of Service, PROS Consulting conducted two workshops with the Recreation Management Team. The outcomes of the workshop were two-fold: 1. To teach the components of and the methodology utilized to develop performance measures. 2. To develop key performance measures for each line of service. The completion of the performance measures work for each line of service will be continued by the Recreation Business Unit. 15

20 City of Calgary Recreation Business Unit RECOMMENDATIONS FOR NEXT STEPS Upon completion of the project, PROS conducted a gap analysis to determine what steps are necessary in order to assist the Recreation Business Unit in successfully managing forward. PROS Consulting has identified the following data/processes that are needed to be completed by the Recreation Business Unit during Classification of the Sub-sub services using the PROS Classification of Services methodology 2. Development/re-allocation of annual operating budget (Revenue/Expenditures) and FTEs by newly developed lines of service and sub-services. 3. Development of a new pricing policy to achieve cost recovery goals as developed during the classification of services phase of the project. 4. Reorganization of Recreation Business Unit to align with new lines of service/subservices. 16