Carl DeMaio s Plan to Change the Culture at City Hall. Managing. Paid for by Carl DeMaio for Mayor 2012

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1 Carl DeMaio s Plan to Change the Culture at City Hall Managing for Results If we want to improve results, we must fundamentally transform how City Hall is managed. Carl DeMaio Paid for by Carl DeMaio for Mayor 2012 (619) PO Box 27227, San Diego, CA 92198

2 MANAGING FOR RESULTS Changing the Culture at City Hall Through Accountability and Transparency Carl DeMaio s Plan to Change the Culture at City Hall Accountability & Transparency of Performance Reform 1: Measure Our Results & Audit Our Performance Reform 2: Reorganize City Departments Under Four Deputy Mayors Reform 3: Eliminate Automatic Step Pay Hikes; Shift to Pay-for-Performance Reform 4: Reorganize City Workforce Using Merit, Not Tenure Reform 5: Implement Performance-based Budgeting Reform 6: Create the San Diego Performance Academy to Train City Employees Reform 7: Create Tiger Teams and Mayoral Fellows to Access Outside Expertise Reform 8: San Diego 311 Customer Service Center Reform 9: Implement Fair and Open Competitive Bidding for City Contracts Reform 10: Implement a Sunshine Law to Maximize Transparency If we want to improve results, we must fundamentally transform how City Hall is managed. - Carl DeMaio

3 Reform 1: Measure Our Results & Audit Our Performance What gets measured, gets done! Management expert Peter Drucker Taxpayers deserve to know what results and outcomes are delivered from their tax dollars at City Hall. City leaders should do more than just measure and report performance they should conduct regular Performance Audits on every city program to identify ways to improve performance for taxpayers. Unfortunately, performance measurement reporting on service levels has been suspended in the city budget process. As a result, city leaders have made major changes in the city budget and operations without fully understanding the net impact to service level results for taxpayers. Set Clear Goals, Performance Measures and Strategies for Each City Department By the beginning of FY each city department will devise a strategic plan to guide its efforts over the next four years with specific, measureable and accountable performance goals and measures for evaluating results in FY 2014 FY The strategic plan should articulate a clear vision for what the department will look like in four years and how the department will restructure its operations to achieve that outcome. Each strategic plan will follow a Performance Logic Model whereby each department should select no more than 5-7 performance measures with 2-3 reflecting core outcomes for San Diegans and 3-4 reflecting transformational measures relating to improved efficiency, timeliness, quality, or other operational improvements in delivering its services. Implementation Target: First 100 Days Require Performance Contracts of All Department Managers Each department s top manager should sign an annual performance contract with performance goals and measures driven by the department s strategic plan. Each manager s performance contract should be submitted to the Mayor and should be posted and updated publicly on each department s website. Implementation Target: First 30 Days

4 Solicit Citizen Feedback at Annual Performance Summits It is imperative that each department s plan reflect public input. Each city department should hold at least one Performance Summit each year to seek feedback from employees, customers, and stakeholders on priorities, new approaches to operating, and ways to measure and report success. Implementation Target: First 100 Days Require Full Performance Audits on All City Programs Performance Audits examine how well each city department is operating, and suggest ideas for improvement. In FY 2010 DeMaio successfully advanced a proposal to expand the capacity of the City Auditor s Office to conduct performance audits of city departments and to establish a goal of conducting performance audits on at least 50% of city budgeted expenditures. Based on this new emphasis on the importance of performance audits, the City Auditor has provided decision-makers with detailed performance audits of the operations on a variety of city functions including Risk Management, Qualcomm Stadium, Bid-to-Goal Water Department Bonuses, etc. Performance audits have produced hundreds of reform ideas that have the potential of improving outcomes and saving taxpayer money. As Mayor, DeMaio will require that all major city service lines undergo a performance audit in his first term with a concrete schedule of audits committed to by the Mayor and Audit Committee in the first 100 days. More importantly, as those performance audits are conducted, DeMaio commits to working with his management team and City Council on implementing identified cost-saving ideas as fast as possible. Implementation Target: First 100 Days Performance Logic Model Framework Strategy Planning Prioritize Activities and Processes Link Outputs to Desired Outcomes Align Desired Outcomes to Goals Activities Management Outputs Outcomes Senior Leadership Goals $ FTE $ FTE $ FTE Activities Outputs Outcomes Goals Measure Activity and Process Efficiency Evaluate Output Effectiveness Document and Manage Performance Strategy Execution

5 Reform 2: Reorganize City Departments Under Four Deputy Mayors Implementing these reforms will require the drive, passion for public service, and management experience needed to turn around a failing institution and create something that has rarely been done before: a well-functioning government structure. Carl DeMaio is committed to pulling that team together and creating a city government that San Diegans can be proud of again. Creation of Deputy Mayor Cabinet Team Carl DeMaio is proposing a groundbreaking reorganization of the city s management structure that will reorganize all city operations into 5 streamlined areas, with a Deputy Mayor or Chief overseeing specific business lines of local government: Neighborhood Services Infrastructure & Utilities Economic Growth Performance & Finance Public Safety Each of the first four major functions of City Government outlined above will be managed by a Deputy Mayor. The Police Chief and Fire Chief will continue to report directly to the Mayor and share oversight of Public Safety. These individuals will be responsible for the day-to-day operations of their respective departments and will also formulate policy and legislation in their respective service areas. Why is the creation of the Deputy Mayor positions so important? Currently, there a separation exists between those who are advising the mayor on policy decisions, and those who run the day-to-day operations of the city. Deputy Mayors will be responsible for policy formulation and implementation to ensure greater integration and accountability throughout city bureaucracy.. Implementation Target: Day 1 Cut Layers of Management to Flatten Hierarchies With the reorganization of departments into business lines under a Deputy Mayor, multiple layers of management exist within city departments that should be reviewed. Several city labor unions have raised the issue providing for potential agreement on cost saving ideas. As agency strategic plans are developed, and the City Human Capital Plan (explained in the next chapter) is devised, an analysis of levels and layers of management should be conducted in each city department with a goal of reducing layers and redeploying as many city employees to front line service delivery. Implementation Target: September 30, 2013

6 Reform 3: Eliminate Automatic Step Pay Hikes; Shift to Pay-for-Performance The best way to improve performance at City Hall is to link employee pay to clear measures of results. Establish Employee Performance Plans and Measures In the DeMaio Administration a complete Employee Performance Management system will be implemented to serve as a basis for all pay adjustments, bonuses and promotions. Clear performance goals and measures for each city employee should be established drawn from departmental goals and measures. Each plan will be collaboratively signed by the employee and their immediate manager. The plan will not only identify goals and rewards, but training and development targets to cultivate professional growth for each individual employee. All rewards including non-financial rewards such as discretionary leave should be based strictly on performance. Implementation Target: FY 14 Labor Contracts (April 15, 2013) Eliminate Automatic Pay Step Increases to Fund Pay for Performance Fund Currently city employees receive step increases based on longevity, not performance. Payments based on longevity need to be replaced with a full-scale Pay-for-Performance System. To ensure that Pay-for-Performance Program is budget neutral DeMaio proposes shifting all funding for step Increases to the Pay-for-Performance Program, and utilizing portions of documented and audited cost savings achieved from employee-initiated reform projects. Implementation Target: FY 14 or FY 15* Labor Contracts *Note: Achieving full implementation of this reform may require modification of the City Charter.

7 Reform 4: Reorganize City Workforce Using Merit, Not Tenure Workforce Assessments and 5-Year Human Capital Plan The Reform Agenda articulated by Carl DeMaio calls for the shrinking of the city bureaucracy to ensure only the optimal-sized workforce is used in each program area to deliver quality and efficient services. To facilitate decisions on rightsizing each city department and service area, the DeMaio Administration will devise and follow a 5-Year Human Capital Plan based on strategic workforce assessments and a long-range succession planning approach to developing leaders and skillsets inside city departments. Implementation Target: September 30, 2013 Elimination of Last Hired, First Fired Retention Rule As the City of San Diego makes reductions in staffing, it is important that staff retention decisions are made based on performance, not tenure. In some cases, the current policy of last hired, first fired allows poorer-performing staff members to bump higher performance staff members during downsizing based solely on seniority. In the DeMaio Administration the last hired, first fired rule will be eliminated and replaced with a strategic, performance-based criteria for retaining the kind of employees and skillsets needed to deliver quality services to taxpayers. Implementation Target: FY 14 Labor Contracts (April 15, 2013)

8 Reform 5: Create the San Diego Performance Academy to Train City Employees As a businessman, Carl DeMaio developed training programs to help organizations improve performance and cut costs. In the DeMaio Administration, city employees will be supported through training and professional development with a goal of improving productivity, morale and service to taxpayers. With DeMaio s support, a new leadership and management academy was recently launched for managers and supervisors in the Utilities Department however too few slots exist to adequately meet the demand for providing training to employees. This program can be effectively expanded to include managers and supervisors from other city departments. With ongoing fiscal challenges expected in the short term, Carl DeMaio commits to raise $1 million a year in private funding to provide city employees they need. This approach will result in a budget neutral implementation to this key reform. As Mayor, Carl DeMaio will create the San Diego Performance Academy as a 501(c)(3) organization to support excellence in local public service. The following core training programs should be offered as part of a Performance Management curriculum: Project Management Strategic Planning and Performance Measurement Change Management Team Leadership and Communication Customer Service Fundamentals Training should target managers and supervisors first, with line employees receiving training based on their demonstrated commitment to improved performance and the opportunity to use the skills learned in the future. Implementation Target: Orientation & Transition Training Programs (December 2012); quarterly training programs for targeted city staff thereafter

9 Reform 6: Implement Performance-Based Budgeting Organizations that measure costs can manage costs. Carl DeMaio As a national government reform expert, Carl DeMaio helped craft legislation and implementation programs in Performance-based Budgeting for federal agencies, states and cities. As Mayor, DeMaio will implement the most aggressive Performance-based Budgeting program for San Diego. Performance budgeting uses the budget process to define what performance results are expected for taxpayers and forces the executive and legislature to work to align available resources with those results. Once a budget is adopted the executive branch is given flexibility to manage resources throughout the year provided that those results are achieved. Enhanced performance measures would be put in place to help define and track results throughout the year in a transparent way to the legislature as well as to the general public. Once the strategic plans, performance measures, and full cost accounting systems are implemented, the City Council should reform the city s budget process to require that the Mayor submit an annual performance plan to the City Council no later than January 15 of each year that includes measurable outcome goals and measures for each city department. A listing of major services by program area in each department complete with workload/output measures should also be included. No later than February 1, the City Council shall adopt a performance plan by resolution and the Mayor shall prepare and submit a budget that reflects the resources required to reach the level of performance expected from each city department. As decisions are made on resources throughout the budget process, the Mayor shall advise the City Council on the impact of performance expectations for each city department. All changes in performance measures and targets shall be included in the annual budget ordinance passed by the City Council. The City of San Diego is currently implementing a costly Enterprise Resource Planning (ERP) System. The goal of the system is to improve the quality, timeliness, and usefulness of financial information inside each city department. The ERP system has the potential to support full cost accounting on a cost-per-unit basis of service. Full cost accounting lays the groundwork for eventual implementation of performancebased budgeting in city departments. To jumpstart full cost accounting, DeMaio will implement full cost accounting studies on the top 10 city service areas in the first 100 days of his administration with expansion of services undergoing full cost accounting calculations thereafter. Implementation Target: First 100 Days

10 Reform 7: Create Tiger Teams and Mayoral Fellows to Tap Outside Expertise San Diego is blessed with countless residents who are leaders in their field with experts in business, finance, technology, etc. In the DeMaio Administration, outside advice and expertise will be sought to improve performance in each city department. Creation of Tiger Teams Around Roadmap to Recovery Policy Initiatives One new idea that Carl DeMaio will implement if elected Mayor is the creation of Tiger Teams. Tiger Teams are single-issue oriented task forces designed to brainstorm ideas and provide a sounding board. Groups of civic leaders and experts in their fields will be asked to take each major policy initiative laid out by DeMaio and provide Implementation Advice to the Mayor and his management team. Implementation Target: First 100 Days Create Mayoral Fellows Program The White House Fellows program recruits the most highly-motivated, dedicated young men and women and places them in the White House and federal agencies to serve as Fellows to help carry out targeted initiatives and special projects. Recently Mayor Jerry Sanders tapped former Port Commissioner Steve Cushman to serve as an unpaid Special Assistant to spearhead the development of a financing plan for the expansion of the San Diego Convention Center. Mr. Cushman brought decades of experience to the table and worked tirelessly to craft a financing program that drew wide support from industry, stakeholder, and taxpayer advocates. Carl DeMaio is proposing to learn from both the examples set by the White House Fellows and Convention Center expansion. As Mayor, DeMaio will institute a Mayoral Fellows program where San Diego s brightest and most-motivated graduate students and officials from the private sector are given the opportunity to experience policy-making and public service first-hand. Unlike the Tiger Teams which are groups of individuals providing advice, Mayoral Fellows will be volunteer staff tasked with project deliverables and assisting in actual implementation of ideas.

11 Some examples of tasks that Mayoral Fellows would work on include: Oversee development of the San Diego Serves Website and Smart Phone App. Design and initiate marketing campaign to Asia-Pacific consumers promoting San Diego as a tourist destination. Draft white papers outlining innovative solutions to solve the City s ongoing problems: crumbling roads, deteriorating infrastructure, blighted neighborhoods. Design and facilitate Customer Service/Public Input Town Halls for each city department to identify ways to improve customer service. Design and negotiate program partners for a specific trade/skills area in the Hire-A- Youth Program. Implementation Target: First 100 Days

12 Reform 8: San Diego 311 Customer Service Center Customer service should be a driving value in every city department. In the DeMaio Administration, citizens will be treated like customers with the respect and responsiveness they deserve. Integrated 311 Call Center In 2004, Carl DeMaio first proposed consolidating all city call centers into one single customer service center with one single number. As Mayor, DeMaio will make this vision a reality. The City of San Diego currently has over 20 call centers, ranging in every area from permit requests, trash pickup, pothole repairs, and countless others. The city must move into the 21st century and take full advantage of the ability to streamline and consolidate this basic customerservice need. Carl DeMaio supports outsourcing this function by contracting with a private company that provides this same service to large companies. San Diego taxpayers should be able to call one easy-to-remember local phone number, speak to a real representative, and be quickly and seamlessly transferred to the proper city department. Implementation Target: July 1, 2013 San Diego 311 Smart Phone App Last year, DeMaio was proud to release an exciting new "app" for San Diego residents to utilize on their Smart Phones. "San Diego 311" puts city services at the fingers of taxpayers, providing a direct, easy-to-use way to report potholes, clogged storm drains, garbage, and other problems in their neighborhood. The app has been an enormous success, with over 2,000 cases reported to the city in the last year. DeMaio plans to expand and enhance this innovative concept by integrating even more city services into the app and making it easier to use for San Diego residents. With the full support of the Mayor's office and a CIO/IT Director to oversee integration across every city department, the possibilities are endless. San Diego is one of America's most innovative and cutting-edge cities, and there is no reason why our city government shouldn't provide the same leadership. Implementation Target: Already Implemented; Version 2.0 Release by July 1, 2013

13 Reform 9: Implement Fair and Open Competitive Bidding for City Contracts City services should be subjected to regular competitive bidding to determine if taxpayers could save money by outsourcing work currently done by city employees. In 2003, Carl DeMaio was the first to propose a ballot measure to allow the City of San Diego to use managed competition to take outside bids on city services. In 2006, DeMaio helped lead the effort to pass Prop C Managed Competition, which voters overwhelmingly approved at the ballot box. Unfortunately, the City Council (under pressure from the government labor unions) dragged its feet for 5 years in delaying implementation of Prop C. Immediately upon taking office, DeMaio began a relentless push to pressure the City Council to begin competitions. Finally in the past 12 months, the City Council has allowed the Managed Competition process to proceed with the first competitions showing astounding levels of savings for taxpayers. To date more than $6 million has been saved on the handful of competitions conducted with savings continuing year after year. Unfortunately, the competitions are not being conducted on a level playing field. City employees are allowed to back out certain regular operating costs on top of a 10% bid advantage given to city employees. In the DeMaio Administration, competitions will be expanded and expedited with all cost proposals receiving equal treatment. For contractors and vendors providing services to the city, the DeMaio Administration will maximize the use of fixed-price Performance-based Contracts. Finally, all contracts should be placed online fulfilling the mandate of Proposition A which DeMaio authored and is on the ballot in the June 2012 election. Implementation Target: First 100 Days

14 Reform 10: Implement a Sunshine Law to Maximize Transparency As a government watchdog, Carl DeMaio has fought for transparency and openness at all levels of government. As Mayor, DeMaio is committed to making San Diego one of the most transparent local governments in the nation. Each year DeMaio marks Sunshine Week to highlight the need to advance open government and call on city officials to implement transparency reforms. This year, DeMaio outlined his proposed Sunshine Law. As Mayor, DeMaio will self-impose all of the requirements of the Sunshine Law and seek City Council passage of a law to make the transparency reforms permanent. Automated Quarterly Disclosure of City Employee Compensation Taxpayers have a right to know the details of what city employees and city retirees are getting paid. The Sunshine Act will require timely and complete access to employee compensation information including a breakdown of overtime pay, bonuses, and other payouts. Many cities across the state make this information readily available. There is absolutely no reason that San Diego shouldn t be doing the same. Implementation Target: First 30 Days Post the City s Checkbook Online The public s business should be conducted in public this principle extends to the city s financial transactions. The Sunshine Act proposes to make the city s financial transactions more transparent and will require that financial reports be posted online. Implementation Target: July 1, 2013 Post All Contracts Online And Justify Number of Bids Received Taxpayers have a right to know who is getting awarded city contracts and what the terms and conditions of those contracts are. The Sunshine Act will require that all city contracts in excess of $25,000 be posted in a searchable format on the city s website. In addition, any contractor that has received in excess of $25,000 cumulative from the city will also be posted with links to all of the contracts they were awarded. Finally, the Mayor will be required to disclose the number of bids received on each contract and for any sole source contract, a written justification must be provided. Implementation Target: First 100 Days

15 Improve Transparency of Campaign Contributions The City of San Diego currently requires that candidates running for office report only contributions greater than $99. The Sunshine Act will amend the municipal code and require candidates to disclose ALL contributions regardless of the amount. Implementation Target: DeMaio Already Does; Legislation within 30 Days Issue an Annual City Performance Report Card City taxpayers deserve to know what service levels they receive for their tax dollars. That s why each department should post their performance goals, measures and targets online at the beginning of the fiscal year and provide a quarterly update on measured results. At the end of each fiscal year, all performance measures will be reported comparing targets to actual results. For any target not met, departments will also provide an explanation of how the department will improve its performance in the coming fiscal year. Implementation Target: July 1, 2013 Disclose the Details of Government Labor Union Contracts Labor contracts are negotiated behind closed doors and taxpayers do not know what is agreed to until it is too late. The Sunshine Law would require disclosure of labor contract terms prior to any labor contract proposal being offer by city officials. Once adopted, the Sunshine Act will also require that the City post all current and previous labor union contracts online. Implementation Target: Day 1

16 The City Missed an Opportunity with Strong Mayor In 2006 the City of San Diego made a trial transition from the City Manager form of government to the Strong Mayor form of government for a five-year period, the management structure at City Hall was supposed to be significantly changed. Under the new system, the Mayor, elected by popular vote and answerable directly to the people of San Diego, is in charge of making sure the city is managed well. The Mayor, rather than an appointed City Manager, is now responsible for making sure libraries are open, police response times improve, roads are well-maintained, and everything else that the City does is managed correctly. Unfortunately, rather than change the organizational structure, the old City Manager form of government was essentially cut-and-pasted the old City Manager form of government into the new Strong Mayor government. However, with the passage of Proposition D in June of 2010, the Strong Mayor form of government has been permanently instituted and we can no longer tolerate a cut-and-paste of the flawed, old structure of government. This plan outlines Carl DeMaio s plans to fully implement the desires of taxpayers and the completion of Prop D by providing a well-managed, streamlined, efficient city government if elected Mayor. Carl DeMaio: A National Reputation in Transforming Government In 2000, Carl DeMaio launched the Performance Institute, a non-partisan, private think tank dedicated to reforming government through the principles of performance, transparency, competition and accountability. Carl built the organization into the largest government reform think tank in the nation and the leading authority on performance-based management in government, law enforcement, nonprofits and schools. In 2003, Carl founded the American Strategic Management Institute (ASMI), which provides training and education in corporate financial and performance management. In late 2007, Carl sold both of his companies to Thompson Publishing Group. Carl plans to take his management experience from the Performance Institute and ASMI and directly implement many of those reforms within the City of San Diego s flawed organizational structure and practices. This plan outlines how he intends to Manage for Results as San Diego s next Mayor.

17 San Diegans deserve better results. Our city employees can deliver exceptional performance, but are caught in bureaucratic processes, lack support, and receive the wrong incentives. We need a culture change at City Hall. As Mayor I will set clear goals, support our employees, reward high performance, and measure the results in a transparent way. -Carl DeMaio

18 Carl DeMaio s Proposed San Diego City Organizational Chart Mayor Neighborhood Services Infrastructure & Utilities Economic Growth Performance & Finance Public Safety (Deputy Mayor) (Deputy Mayor) 4 (Deputy Mayor) (Deputy Mayor) (Chiefs) Civic Engagement & Volunteerism Streets Economic Services Department Budget & Performance Management Police Library Water & Wastewater Education & Workforce Development Financial Management Fire Park & Recreation Neighborhood Code Compliance Environment & Stormwater Landfill & Waste Management Development Services Department Neighborhood Investment Corporation Human Resources & Labor Relations Contracting & Partnerships Risk Management Real Estate & Assetts Management Housing Commission Information Technology Tiger Teams Chief of Staff Planning & Execution Communications Community & Legislative Affairs Personnel & Appointments Scheduling & Protocol SD 311 Customer Service

19 Current City of San Diego Organizational Chart