TO: HONORABLE MAYOR FROM: Dolan Beckel
AND CITY COUNCIL
SUBJECT: 2023-2024 CITY COUNCIL DATE: October 27, 2023
FOCUS AREAS FIRST QUARTER
STATUS REPORT
Approved Date
10/27/2023
REASON FOR REPLACEMENT
The reason for replacement is to correct Attachment D – Cleaning Up Our Neighborhoods Focus Area Scorecard section on Q1 Key Accomplishments.
RECOMMENDATION
Accept the first quarter status report on the implementation of the Fiscal Year 2023-2024 City Council Focus Areas.
SUMMARY AND OUTCOME
For the reporting quarter, the Mayor and City Council will understand outcome measures, performance measures, key strategies, contributing core service budget programs as well as their budgeted amounts and employee full-time equivalents (FTEs), key initiatives, key accomplishments, and key dependencies, issues, and risks for the following Fiscal Year 2023- 2024 City Council Focus Areas:
• Increasing Community Safety;
• Reducing Unsheltered Homelessness;
• Cleaning Up Our Neighborhoods; and
• Attracting Investment in Jobs and Housing.
The Mayor and City Council will also understand lessons learned and improvements planned for the second quarter status report.
BACKGROUND
The City’s Priority-Setting process, which is designed to inform the Mayor’s March Budget Message and the formulation of the Adopted Budget in any given year, evolves in response to COUNCIL AGENDA: 10/31/23
FILE: 23-1457
ITEM: 3.3
HONORABLE MAYOR AND CITY COUNCIL
October 27, 2023
Subject: 2023-2024 City Council Focus Areas First Quarter Status Report
the complex and challenging environment the City Council, the Administration, and the community face together. Based on the City’s current and forecasted budget condition, each year the Adopted Budget addresses the City’s highest community and organizational needs by considering City Council and Administration priorities along with the results of robust community outreach and surveys.
The City’s 2023-2024 Priority-Setting process involved substantial community and City Council input through the following milestones:
1. Rules and Open Government Committee Memorandum on the 2023 City Council Priority-Setting Sessions and Mayoral Transition Committees. On Wednesday, January 18, 2023, five Mayoral Focus Area Transition Committees were approved to be established by the Joint Meeting for the Rules and Open Government Committee to provide recommendations with associated success metrics to inform the 2023-2024 March Budget Message and Budget Process.
2. Mayoral Transition Committees. Five Mayoral Transition Committees met three times from Friday, January 13, 2023, through Thursday, February 9, 2023, to produce a report on recommendations and success metrics to inform the 2023-2024 March Budget Message and Budget Process with direct input from San José residents and businesses. 1 3. Study Session on the Fiscal Year 2023-2024 City Council Priority-Setting Session #1 – Mayoral Transition Committee Report. On Tuesday, February 14, 2023, the Mayoral Transition Committees, City Council, and community Co-Chairs provided a report read- out with follow-on discussions and feedback.
4. Special Meeting on the Fiscal Year 2023-2024 City Council Priority-Setting Session #2 – Administration Report. On February 28, 2023, the Administration provided a report to the City Council on the Mayoral Transition Committee report to develop a common understanding of (i) key aspects of the structure, operations, and budget of the City Service Areas; (ii) the Administration’s initial feedback on the Mayoral Transition Committee Report; and (iii) the Mayor’s suggested Focus Areas and their relationship to the City Service Areas and other important work within the City Service Areas. The report was approved by the City Council and helped inform the March Budget Message.
5. March Budget Message for Fiscal Year 2023-2024. On March 21, 2023, the City Manager was directed by the City Council to submit a balanced budget for Fiscal Year 2023-2024, guided by the policy direction and framework of priorities outlined in the March Budget Message, in accordance with the provisions of Section 1204 of the San José City Charter. The March Budget Message included the approval for the set of four Focus Areas, based on Mayoral Transition Committee community input, to bring greater organizational focus, staff resources, and regular governance-level reporting.
6. Focus Area Governance and Management Approach Budget Study Session. On Monday, May 15, 2023, the Administration presented plans for the City Council Focus Area governance and management approach including (i) execution as learning; (ii)
1 https://sanjose.legistar.com/LegislationDetail.aspx?ID=5996081&GUID=E9297D65- 2A17-4E88-9C0A- 589A0FDB69CA&Options=&Search=
HONORABLE MAYOR AND CITY COUNCIL
October 27, 2023
Subject: 2023-2024 City Council Focus Areas First Quarter Status Report
sponsorship and execution through Focus Area Cabinets and Execution Teams; (iii) Focus Area scorecards and dashboards; and (iv) progress reporting.2
7. Manager’s Budget Addendum #39. The City Council approved the 2023-2024 Focus Area Governance and Management Approach as outlined in City Manager’s Budget Addendum #39 to oversee outcomes, performance, and execution of the four City Council Focus Areas as part of the Approved Budget.
3 8. June Budget Message for Fiscal Year 2023-2024. On June 13, 2023, the City Council approved the City Manager’s Proposed Budget with additional direction in accordance with the provisions of Section 1204 of the San José City Charter. The June Budget Message included authorizing the changes proposed in the City Manager’s Budget Addendum #39 and incorporated them in the Adopted Budget for the 2023-2024 Focus Area Governance and Management Approach, including the outcome and performance measures within the Focus Area scorecards.
Since approval of the 2023-2024 Budget, the Administration has been implementing the Focus Area Governance and Management Approach, including: i) designing Departmental input into Focus Area scorecards; ii) conducting survey market research and contracting processes; iii) designing, building, and testing survey and operational data methodology; iv) overseeing Focus Area Community Survey field activities; v) establishing and sustaining Focus Area Cabinets and Execution teams; vi) collecting Department scorecard execution inputs; and vii) publishing initial scorecards.
The purpose of the City Council Focus Areas is to hold the City accountable to driving positive outcomes and performance on a very limited number of priorities most greatly impacting the community and to generate actionable and measurable solutions to address these priorities. As discussed during Priority-Setting Session #2, the scope of each City Council Focus Areas is very specific and does not include all services provided by the City that might be related to the scope of a Focus Area. For example, encampment-related safety services are not included in the Reducing Unsheltered Homelessness City Council Focus Area. City Council Committee Reports and Agenda Item Memoranda instead provide information on additional related scope not included in a particular City Council Focus Area. Also discussed in the same meeting, in addition to the City Council Focus Areas, work of our City Service Areas/Core Services shown in Attachment A continues to move San José forward on a daily basis.
2 https://sanjose.legistar.com/LegislationDetail.aspx?ID=6200900&GUID=7D29EF89 -6C7F-43AD-B7DD- B391C0A1090A&Options=&Search=
3 https://www.sanjoseca.gov/home/showpublisheddocument/98918/638212376484130000
HONORABLE MAYOR AND CITY COUNCIL
October 27, 2023
Subject: 2023-2024 City Council Focus Areas First Quarter Status Report
ANALYSIS
Focus Area Scorecards
Each of the four first quarter 2023-2024 City Council Focus Area Scorecards may be found in the following attachments:
• Attachment B: Increasing Community Safety Focus Area Scorecard; • Attachment C: Reducing Unsheltered Homelessness Focus Area Scorecard; • Attachment D: Cleaning Up Our Neighborhoods Focus Area Scorecard; and • Attachment E: Attracting Investment in Jobs and Housing Focus Area Scorecard.
Each scorecard is made up of outcome measures, performance measures, key strategies, contributing core service budget programs as well as their budgeted amounts and employee FTEs, key initiatives, key accomplishments, and key dependencies, issues, and risks for the reporting quarter as defined in the City Manager’s Budget Addendum #39. Quarterly outcome measures are based on a new Focus Area Community survey and therefore have no previous baseline and are the measures least within the City’s direct control. In future iterations, as the City gains more implementation experience with the Focus Area Community survey, the quarterly outcome measures will be reported alongside an annual goal which is the desired target to be met by June 20, 2024. Quarterly performance measures are already reported alongside an annual goal. These goals may evolve as implementation progresses and scorecard data informs iteration.
During the City Council meeting for this item, the Assistant City Manager/Deputy City Manager Executive Sponsor for each Focus Area will provide a verbal update on these scorecard sections including:
• Key accomplishments from the reporting quarter;
• Key dependencies, issues, and risks from the reporting quarter; • The previous year’s baseline outcome and performance measures where appropriate and available; and
• Insights and actions generated from the scorecards during the reporting period.
Focus Area Scorecards
The City Council Focus Area Scorecards are a governance-level tool for reporting outcomes measures and performance measures in addition to execution progress in order to help drive continuous improvement. Outcome and performance measures are collected quarterly and are made up of two categories of data types:
• Survey Data; and
• Operational Data.
Survey data are included to measure resident perception towards the Focus Areas and are collected quarterly through the Focus Area Community Survey. Operational data are included to measure service delivery and are collected on an ongoing basis through departmental service delivery. Utilizing both categories of data within the Scorecards is necessary for a more holistic
HONORABLE MAYOR AND CITY COUNCIL
October 27, 2023
Subject: 2023-2024 City Council Focus Areas First Quarter Status Report
understanding of how well the City is performing in the achievement of the Focus Areas goals and to identify appropriate actions to improve performance.
Focus Area Dashboards
In addition to Scorecard outcome and performance measures, Focus Area Dashboards will include a more comprehensive, interactive set of performance data, expanding on the vital few identified for the Scorecards. The Dashboards will also include additional functionality and features, including disaggregation, data interaction, and longer time histories where available.
The creation of the first versions of the Focus Area Dashboards is expected by the end of the fall 2023 and will be a very iterative process. Future iterations will incorporate additional performance measures, including those suggested through the Mayoral Transition Committee reports. Dashboards will be updated and published on the City’s website on a quarterly basis.
The public will be able to export the data from the published Dashboards through the City’s Open Data Portal.
Execution as Learning
To foster an adaptable vision on how to achieve the City Council’s priorities, the Administration set forward implementing the Focus Areas within the context of “execution as learning.” This model prioritizes collective learning for cross-departmental and cross-jurisdiction collaboration, promotes psychological safety, encourages failing forward quickly, and simplifies complexity through iteration and experimentation. In this first quarter of implementation, several themes for organizational capacity building and learning have emerged through execution:
• Key Outcome Measure Survey Drivers. Survey data collected through the Focus Area Community Survey lends critical and representative information on how the community experiences the topics of the Focus Areas. Understanding the top contributors that residents associate with their responses allows the Administration to be more targeted in its actions to address those contributing factors. In future quarters, the Administration will identify the top contributors (no more than five) to emphasize how residents understand the linkages between the Focus Areas and challenges facing the City to ensure increasingly targeted focus on actions which make the most positive impact. • Key Performance Resource Drivers. Operational data collected through service delivery channels lends information on how well the City implements its programs, services, and initiatives related to the topics of the Focus Areas. Understanding the top drivers of performance will also allow the Administration to be more targeted in its actions to address the resources driving performance.
• Previous Year Baseline and Trends. Where historical data is available, the Administration will visually and/or textually indicate how the current annual goal trends compared to the previous year.
• Departmental Focus Area Budget Tracking. The City’s capabilities to produce quarterly reports on the spend-down rates and budget estimates at completion for the City Council Focus Area budgets are labor intensive. As a proxy for this information, Focus Area Scorecards report the Adopted Budget for Fiscal Year 2023-2024, through Core Service Budget Programs and employee FTEs, to share a snapshot into the annual
HONORABLE MAYOR AND CITY COUNCIL
October 27, 2023
Subject: 2023-2024 City Council Focus Areas First Quarter Status Report
resource investment of each Focus Area. In parallel staff are working to provide quarterly budget information for the next quarterly report. Future technology investments, including the anticipated upgrades to the City’s Enterprise Resource Planning systems are expected to enable better tracking and reporting of budgets in this manner – in addition to the various other ways departmental expenditures are monitored – along with expectations for how Departments should track budgets for the purposes of Focus Area quarterly reporting.
• Key Accomplishments Planned Next Quarter. In addition to the past quarter for each reporting period, the Administration will include next quarter planned key actions (through core service budget programs and/or key initiatives) that are relevant to the top five contributors in an effort to drive accountability for impact. • Dashboard Management. The City does not have a standard for public dashboard management, functionality, and usability. The Administration plans to launch its first version of the Focus Area Dashboards utilizing current practices by the end of the fall 2023. In subsequent iterations, the Administration plans to engage a partner (possibly through Harvard Business School Community Partners) on a better standardization and usability of public-facing dashboards project. The product of this effort will also be beneficial for the City Service Area performance modernization and City Service Area dashboards as part of the “Driving Organizational Performance” Foundational Strategic Support Focus Area.
EVALUATION AND FOLLOW-UP
The Administration will continue quarterly updates on the City Council Focus Areas and will return with a second quarter status update by the end of January 2024.
COORDINATION
This memorandum and related documents were prepared in coordination with the City Attorney’s Office, City Manager’s Budget Office, and City Manager’s Office of Administration, Policy, and Intergovernmental Relations.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the October 31, 2023 City Council meeting. Over 120 members of the community who participated in the Mayoral Transition Committees provided direct community input on the City Council Focus Area Scorecards.
HONORABLE MAYOR AND CITY COUNCIL
October 27, 2023
Subject: 2023-2024 City Council Focus Areas First Quarter Status Report
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Not a Project, File No. PP17-009, Staff Reports, Assessments, Annual Reports, and Informational Memos that involve no approvals of any City action.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
D OLAN BECKEL
Chief of Staff for the City Manager
City Manager’s Office
For questions, please contact Erik Jensen, Assistant to the City Manager, at [email protected]
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ATTACHMENTS
Attachment A: Focus Areas and CSA/Core Services
Attachment B: Increasing Community Safety Focus Area Scorecard Attachment C: Reducing Unsheltered Homelessness Focus Area Scorecard Attachment D: Cleaning Up Our Neighborhoods Focus Area Scorecard Attachment E: Attracting Investment in Jobs and Housing Focus Area Scorecard
Attachment A: Focus Areas and CSA/Core Services
Attachment B: Increasing Community Safety Focus Area Scorecard
Attachment B: Increasing Community Safety Focus Area Scorecard
Attachment B: Increasing Community Safety Focus Area Scorecard
Attachment C: Reducing Unsheltered Homelessness Focus Area Scorecard
Attachment C: Reducing Unsheltered Homelessness Focus Area Scorecard
Attachment C: Reducing Unsheltered Homelessness Focus Area Scorecard
Attachment D: Cleaning Up Our Neighborhoods Focus Area Scorecard
Attachment D: Cleaning Up Our Neighborhoods Focus Area Scorecard
Attachment D: Cleaning Up Our Neighborhoods Focus Area Scorecard
Attachment E: Attracting Investment in Jobs and Housing Focus Area Scorecard
Attachment E: Attracting Investment in Jobs and Housing Focus Area Scorecard
Attachment E: Attracting Investment in Jobs and Housing Focus Area Scorecard