Council will receive an update on the Fiscal Year (FY) 2025 Strategic Plan action item within the Infrastructure focus area. The Capital Project Management action item is intended to identify and implement best practices to manage the City’s Capital Improvement Program (CIP). (Kini Knudson, Deputy City Manager; Steve Scinto, Director of Engineering)

There is no direct fiscal impact related to this item.

On November 13, 2023, Council adopted Resolution No. 2023-2363 adopting the City of Goodyear FY2025-2027 Strategic Plan. In the adopted Strategic Plan under the Infrastructure Focus Area, the City Manager’s Office (CMO) has a Capital Project Management action Item to identify and implement best practices to manage the City’s CIP, which is to be completed in FY2025. The Capital Project Management action item is included in the updated FY2025-2028 Strategic Plan, which Council adopted at its November 18, 2024, meeting through Resolution No. 2024-2434 adopting the City of Goodyear FY2025-2028 Strategic Plan. 

In 2023, Council and City staff noted numerous compounding challenges to the successful execution of City CIP projects as well as general communication issues regarding the health of the City’s CIP. These were related to a number of factors, including the rapid expansion of the City, uncertain market conditions, and the lack of a robust enterprise CIP project governance system.   

In response, City staff moved forward with multiple initiatives, with one of the most important being the engagement of Protiviti, a global risk and consulting firm, to perform a business-process audit of the City’s entire CIP. In June 2023, Protiviti issued its CIP Risk Management Review, which identified 32 recommendations for improvement. Protiviti utilized its “capability maturity model,” to evaluate the City’s CIP, which is based on a scoring framework that rates organizational process maturity on a scale from Level 1-Initial/ad hoc (lowest level) through Level 5-Optimized (highest level). Upon review of Protiviti’s audit, City staff felt confident that, through the careful consideration and implementation of Protiviti’s recommendations, the City would achieve a higher maturity level in its CIP management processes while also ensuring the City was adopting industry best practices.      

Given the critical importance of the City’s CIP, Council incorporated the Capital Project Management action item as a FY2025 Strategic Plan project. As the implementation of Protiviti’s recommendations would involve the close coordination between multiple City departments (Engineering, Finance, and Information Technology), the City Manager’s Office was assigned the lead role for the Strategic Plan project.   

On February 3, 2025, Engineering Department staff provided Council with a progress update on another CIP-related FY2025 Strategic Plan action item (CIP Management) in the Fiscal & Resource Management focus area.  This project took steps to improve the scope and cost estimation of city CIP projects.

Goodyear’s CIP has expanded rapidly in recent years—driven by city growth, volatile market conditions and rising project demands—and yet oversight responsibility for the CIP remained split between several City departments. The Finance Department managed CIP budgeting, submissions, approvals and reporting, while the Engineering Department focused on CIP design, construction and delivery.  

This division in responsibilities meant that the evaluation of new project requests and changes related to existing projects were tied to the budget cycle, which runs from early November to early January. This short window did not provide adequate time for Engineering staff to properly vet projects, which often led to budget overruns, frequent change requests and delays in project delivery. The City has since shifted primary responsibility for the CIP to the Engineering Department to centralize planning, scoping and execution of projects. The Engineering Department has also conducted internal and external surveys to identify and target process improvements, in addition to working with Protiviti to audit the CIP program. 

Our Focus on Improving – Implementing Protiviti’s 2023 Recommendations 
Protiviti’s 2023 CIP Risk Management Review identified 32 recommendations across six process themes: CIP Project Classification; CIP Ticket Elements; CIP Planning Timeline; Change Control Requests’ Project Reporting; and Project Management Manual. Their audit also evaluated the maturity of Goodyear’s CIP program using a capability maturity model that measures the program’s strength across seven key categories: Governance; Policies, Standards, and Procedures; Planning; Design; Procurement; Construction; and Closeout. 

Over the past two years, Engineering staff has been working diligently to implement Protiviti’s recommendations, while also taking steps to address feedback received from the internal and external surveys they conducted.  This has required close communication and coordination with Engineering’s client departments (Water Services, Parks and Recreation, Public Works, Police, and Fire) and with its CIP partner departments (Finance and Information Technology).   

These efforts have produced significant progress on process improvements focused on enhancing project classification, documentation, planning and reporting. In its February 3, 2025, Strategic Plan Project update to Council, Engineering staff shared the details related to many of these improvements, including the launch of “CIP 365,” which decoupled the CIP cycle from the budget cycle and created a centralized technology-driven hub (SharePoint) for documentation, process flows, and standardized forms.    

Other improvements included the migration to a centralized project management software platform (TeamDynamix-TDX) for all CIP projects, allowing for standardized project management, data collection, and performance tracking and reporting. In addition, reporting expectations have been embedded into the City’s Project Management (PM) Manual, which has received an overhaul to include fully-developed guidance on project initiation, templates, and job aids, with online accessibility (SharePoint).  PM Manual chapters focused on project initiation, scoping and costing are complete and were used successfully in the development of the current CIP. Final modifications to the remainder of the PM Manual will be complete by the end of this month. 

The City team has revamped the project change control process by implementing tools to track root causes for project changes. Enhancements also included the transition to a more streamlined workflow for change control requests (CCR). These measures have increased efficiency, while promoting improved transparency and reporting. Next steps include folding the CCR process into project management software platform.   

To ensure CIP process improvements progress and receive necessary support and direction, a CIP Executive Team committee has been convened and meets monthly to receive CIP updates and provide feedback.   

Assessing Our Progress – 2025 Engagement of Protiviti 
As highlighted previously, City staff felt that significant progress had been made in addressing Protiviti’s 2023 Risk Management Review recommendations and adopting best practices in management of the City’s CIP.  However, to properly assess its progress in these areas, City staff felt it best to engage Protiviti again to provide a third-party assessment.   

Earlier this year, Protiviti was tasked with conducting a subsequent review of the City’s management of its CIP program. Protiviti finalized its report in May 2025 (Attachment A - Capital Improvement Program Risk Management Follow Up Review), which found that the City had made substantial progress. Protiviti complimented the City on its overall improvement, noting that few of its clients show as much progress at two-year evaluations. 
 
In its review, Protiviti again evaluated the City’s CIP management health using its capability maturity model, but compared Goodyear’s 2025 assessment to the City’s 2023 review (Attachment A – pages 3-4). The City saw improvement across three of the seven key categories (Governance; Policies, Standards, and Procedures; and Planning). The results in these three categories align closely with City’s staff focused efforts, as these three areas most directly influence the quality of initial CIP project scoping and cost estimating. Although the City also made improvements in the other four categories (Design, Procurement, Construction, and Closeout), the progress was not sufficient to increase the overall scores in those categories. 

The report further supports the City’s overall progress and improvements as evidenced by Protiviti’s assessment of Goodyear’s progress in implementing the 2023 recommendations (Attachment A – page 5).    

Continuing Our Journey – Implementing Protiviti’s 2025 Recommendations 
Protiviti’s report concludes with recommendations to help Goodyear continue to improve the maturity of its CIP management. The four recommendations, along with the City’s proposed actions to address them, are summarized below.  

• Manual Data Governance: Automate data flow between budgeting, financial and management software to eliminate manual entry and improve accuracy.  
  • City Action: Identify and document duplicate data across the three core CIP software platforms.  Designate a single authoritative information source and clarify which fields require manual entry. Ensure project managers know where to input data and require updates across all systems during monthly reporting.  
• Job Order Contract (JOC) Procurement: The City should develop its own job order contracting (JOC) program to gain better control over vendor management and procurement metrics.   
  • City Action: Engineering and Finance staff are in current development of a Goodyear JOC program covering CIP projects across four discipline areas: transportation systems; water/wastewater; general building; and general civil projects. Specific procedures addressing the JOC program and projects will be incorporated into the PM Manual, along with citywide training. 

 

• Inconsistent TeamDynamix (TDX) Use and Reporting: TDX use should be standardized to ensure consistent data entry and reporting, increasing confidence in automated outputs.  
  • City Action: Develop a job aid to identify minimum reporting requirements. Provide training to all project managers. Work with Information Technology staff to further customize TDX to remove any unnecessary tabs or fields.  

 

• Ongoing PM Manual Improvements: The City’s PM Manual should be finalized with completed procedures and job aids, then circulated across departments as a live reference on SharePoint. 
  • City Action: Finalize and publish procedures for executing, monitoring & control, and project closeout in the PM Manual, along with job aids and templates, accessible through SharePoint. Develop a city-wide rollout strategy to train all CIP project managers. 

The results of Protiviti’s 2025 Capital Improvement Program Risk Management Follow Up Review, along with City Management’s responses were shared with the City Audit Committee at its June 11, 2025, meeting (Attachment B). 

Staff plans to re-engage with Protiviti in 2027 to further assess maturity of the City’s CIP management and identify any additional opportunities for improvement.