San Francisco’s Information Technology Highway:

R1

The Department of Telecommunications and Information Services (DTIS), which is responsible for managing IT for the City, is not respected by other City departments. A series of short-term leaders in DTIS, the loss of a significant number of DTIS personnel, and an inability to deliver needed services in a timely manner have

R2

The Committee on Information Technology (COIT), the IT policy advisory group mandated by the City’s Administrative Code,1 is not living up to the original expectations. Infrequent meetings, City departmental disregard for the 1 San Francisco Administrative Code, §3.24, Committee On Information Technology. Mayor's Finance Director, a member of the Board of Supervisors, the Controller, the Director of Telecommunications and Information Services or their designee, and one department head from each of the following six groupings of departments: (a) Public Protection, (b) Public Works, Transportation and Commerce, (c) Human Welfare and Neighborhood Development, (d) Community Health, (e) Culture and Recreation, (f) General Administration and Finance. The department heads shall be selected annually by the four continuing members. The Committee on Information Technology shall take a leadership role in encouraging and coordinating departmental efforts in the use of new technology. The Committee shall promote interdepartmental cooperation and City standards. It shall review major interdepartmental and citywide projects and make policy recommendations thereon. (Added by Ord. 223-97, App. 6/6/97) 1 Administrative Code relating to COIT, a reduction of personnel, and internal personnel issues have all contributed to COIT’s ineffectiveness.

R3

Improved leadership, IT knowledge sharing, centralization of some services, and the development of a citywide IT plan were all called for in numerous studies and reports conducted for the City in the last ten years. These recommendations are as valid today as when each of the reports was first issued.

R4

Small departments that rely on general funding for their technology needs are often at a distinct disadvantage financially compared to Enterprise Departments where external funding can be applied to IT projects.2

R5

Given the unique needs, requirements, and deadlines of Enterprise Departments, it is unrealistic for these departments to rely on DTIS for all their IT services. City staff has proposed a “hybrid3” IT program as a potential solution to the tug-of-war between centralization and decentralization of IT functions.

R6

City departments seldom share IT knowledge, thus duplicating efforts and increasing costs to the City.

R7

The Executive Director of IT for the City and County of San Francisco is classified as a department head. Given the size and complexity of City IT operations, the Civil Grand Jury recommends reclassifying the position to that of a Chief Information Officer (CIO). This reclassification would provide the necessary authority and recognition for that individual to design and implement overdue changes in administration of IT services citywide. There is ample evidence to support the need to create an efficient and cost-effective IT program. Suggestions for action offered by this CGJ include the following: • Changing the structure and operation of DTIS. • Reviewing the purpose, function, and operation of COIT or the designated IT policy making group. • Monitoring future IT expenditures and cost savings using data from the Fiscal Year (FY) 2005-2006 Budget as a starting point. • Increasing citywide IT collaboration and cooperation. • Establishing and empowering the position of CIO to lead the design, implementation and monitoring of IT changes. Enterprise Departments are large departments with budgets augmented by fees, grants and other funding sources that are generally earmarked for the specific use of those departments. In the hybrid model, IT functions common to most City departments (e.g., e-mail, etc.) would be centralized. IT functions unique to a given department would remain in that department. II. INTRODUCTION Technology at the Crossroads "With $5 million in settlements, don't let anyone tell you we can't afford a computer system. Think of what settlements we could have avoided if we had this technology in advance. Money is not an appropriate excuse. Money is not the reason we haven't put the system in place. It's political will."4 On February 12, 2006, Mayor Gavin Newsom offered the above response to a San Francisco Chronicle series about the use of force by the San Francisco Police Department. Unfortunately, the inefficient and costly use of information technology by the City is not limited to the Police Department. The year 1996 was a pivotal one for IT in the City. KPMG5 and City officials— including Board of Supervisors members, Mayoral representatives, City management, private sector executives, members of the press and the public—completed a “Strategic Plan for Information Technology” for the City. The plan recommended: • A coordinated IT Strategic Plan, leading to common standards, priorities and methods. • The development of a “one-stop shop” for technological innovation, information, advice and support. • A combination of centralized and decentralized resources to provide flexibility. As a result of the KPMG study, several technology organizations within the City were combined to create DTIS.6 Political leaders understood that IT was an uncoordinated function. In May 1996, the Civil Grand Jury released its report, “Information Technology Services in San Francisco Government,” which highlighted the City’s IT issues. In July 1996, as part of the budget process, COIT was created.7 One need only “fast forward” from 1996 and to 2006 to realize how quickly information technology has changed—and continues to change. While DTIS is expected to constantly upgrade and update its technology and its training programs, it has been faced with annual budget deficits for the last several years and a reduction in IT personnel. In addition, the City must compete with the private sector and other regional governments for IT professionals. Civil 4 Sward, Susan 2006. THE USE OF FORCE: Mayor demands accountability. Newsom responds to San Francisco Chronicle police use-of-force series, cites need for ‘political will’ to set up computer tracking system. The San Francisco Chronicle, February 12. KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. KPMG LLP is a provider of audit, risk advisory, and tax services. San Francisco Administrative Code, §11.86. DTIS replaced the Department of Electricity and Tele-communications, the Information Services Division of the Controller’s Office (including EIPSC), Citywatch and 911. (Added by Ord. 293-96, App. 7/17/96; amended by Ord. 58-00, File No. 000198, App. 4/7/2000; Ord. 203-04, File No. 040752, App. 8/5/2004) 7 The amendment to §3.24 of the San Francisco Administrative Code was added by Ordinance. 223-97, approved by the Board of Supervisors on. 6/6/97. Service rules and City pay scales contribute to the City’s difficulties in hiring and retaining individuals with state-of-the-art IT skills. All these factors have had an adverse impact on DTIS and on the City’s ability to keep pace with technological change. City policy seems to put off long-term investments in technology to “another day.” In 2006, and as part of a region known globally for its technology and innovation, San Francisco government continues to lag behind other cities and counties in its use of technology. Sources both inside and outside the City’s IT structure have regularly made recommendations for change but have been routinely ignored during the past ten years. Consequently, neither the efficiencies nor the savings that should result from the development of a state-of-the-art technology program appear to be in place today. In the course of this CGJ investigation and as this report goes to press, positive movement forward is actually taking place. Some of the positive IT activities we have observed include: • The newly created General Services Agency (GSA)8 now incorporates DTIS (Appendix A) and is overseen by the new Chief Administrative Officer (CAO). One goal of the agency is the reassessment of the City’s IT structure. At preliminary budget hearings before the Budget and Finance Committee on April 5, 2006, Chris Vein, DTIS Executive Director, presented general plans for that reassessment. • In November 2005 and December 2005, the Budget and Finance Committee of the Board of Supervisors (the Board) conducted hearings on issues related to IT procurement and maintenance. An update to those hearings was held on April 10, 2006 at the Board’s Government Audit and Oversight Committee. A new IT vision was presented by the DTIS Executive Director. Both the vision and the recommendations appeared to be well received by the Board. • In 2006, the Controller’s Office will be providing a fresh perspective on IT as a result of a Performance Audit of DTIS. • Under GSA, the responsibility for reviewing IT budget items has moved from COIT to the Mayor’s Budget Office. Instructions to departments for FY 2006-2007 budget preparation reflect this change. (Appendix B) 8 GSA was created by the Office of the Mayor in FY 2005-2006 under the auspices of Article III, §3.104, the Charter of the City and County of San Francisco. Departments reporting to the Director of GSA/City Administrator include: The Department of Administrative Services, the Department of Public Works, the Department of Animal Care and Control, the Department of Medical Examiner, the Department of Convention Facilities and the Department of Telecommunications and Information Systems. The City Administrator’s Office also oversees the following programs and other offices: the Grants for the Arts Program, the Mayor’s Office on Disability, the Labor Standards Office, the Entertainment Commission, the County Clerk, the Immigrant Rights Commission, and the 311 Project. 4 • The pending introduction of the 311 Call Center9 and the Wi-Fi installation10 for the City’s citizens indicates that the City is beginning to give technology the needed attention it deserves. • On March 30, 2006, the COIT convened its first meeting since May 2005. At that time, the DTIS Executive Director, introduced a new vision for the City’s IT services (Appendix C) which addresses many of the issues that, if acted upon, will significantly improve the City’s IT capabilities and efficiencies. None of the findings and recommendations of this CGJ's report were disclosed prior to the issuance of this report; however, many of the proposals announced at the March 30, 2006 COIT meeting are similar to our recommendations. The CGJ arrived at its findings and recommendations independently and the majority of recommendations in this report were in place prior to the COIT meeting. We felt that recommendations supportive of the new vision were appropriate and these were added to the report following the COIT meeting. The City staff and others interviewed for this report were candid, cooperative, and generally knowledgeable about the state of the City's IT programs and operations. They provided us with data, directed us to others knowledgeable about the City’s IT programs, and kept us informed of City meetings that addressed IT issues. We are very appreciative of their assistance. In writing this report, we determined some findings and recommendations were appropriately placed under more than one heading so as to provide clarity to the subject. It is our hope that, by implementing the recommended IT solutions, the delivery of City IT services will become more efficient, the use of taxpayers' money will be maximized, and funds will be freed up for other important needs of our fellow San Franciscans. III. PROCEDURE Many Roads Leading Nowhere The CGJ used multiple sources of information to determine the current status and effectiveness of the City’s IT programs and to ensure that our findings and recommendations are credible, valid, and realistic. The CGJ: • Examined “hard copy” documents provided by various City departments and electronic documents available on the www.sfgov.org website. • Interviewed approximately 25-30 individuals and departments knowledgeable about IT and/or in IT-related positions in City government. 9 311 Call Center, a customer service center that will receive public calls for information and requests for government services. The 311 Call Center will provide a single point of contact for all non-emergency City services and allow customers to call one easy-to-remember number to receive information and access City services. Wi-Fi is wireless fidelity—a broadband wireless network. The Wi-Fi project will establish a City-wide universal, wireless broadband network in San Francisco. 5 • Attended open meetings that focused on IT issues. • Conducted Internet research to obtain local as well as national data and information. • Reviewed studies and recommendations by outside consultants and in-house personnel. We looked at material from 1996 to the present that focused on improving the City IT programs and operations. Interviewees included personnel from various City departments, union representatives, City Supervisors, and individuals in the Mayor’s Office. The CGJ interviewed former employees who held important IT positions during the past ten-years. Also interviewed was an East Coast CIO who was cited by several interviewees and a national publication as being responsible for an exemplary governmental IT program. IV. BACKGROUND Roads Not Taken The studies and reports of 1996 set the stage for the development of an IT organization within the City and resulted in the establishment of DTIS and COIT. Selected report/study recommendations were put in place in the years between 1996 and 2000. Then the Y2K crisis served to once again highlight IT in the City. Another series of reports and studies about City IT issues began in 2000 and continues to the present. Recommendations for IT reform are common themes in each study. (