Priority 1: Priority 1 recommendations should be completed within six months of the release of the management audit report. These recommendations meet one the following criteria: (a) have budget impact, (b) address significant issues within the organization, or (c) can be implemented easily. The Budget Analyst will review the status of these recommendations during the Board of Supervisors FY 2007-2008 budget review process.

Priority 2: Priority 2 recommendations should (a) be completed, (b) have achieved significant progress, or (c) have a schedule for completion within one year of the release of the management audit report. Although implementation of these recommendations has already begun or should begin upon the release of the management audit report, significant implementation or measurement of the results will take up to 12 months. The Budget Analyst will review the status of these recommendations during a one-year management audit update in approximately January 2008, as directed by the Government Audit and Oversight Committee.

Priority 3: Priority 3 recommendations require long term process changes. While these recommendations address serious issues identified in this report, Priority 3 recommendations are either long-term goals or are dependent upon the implementation of Priority 1 and 2 recommendations. The Department should be prepared to report the initial steps taken to implement priority 3 recommendations during a one-year management audit update in approximately January 2008, as directed by the Government Audit and Oversight Committee. The Budget Analyst will review the status of these recommendations during the Board of Supervisors FY 2008-2009 budget review process.

1.1 Assess and revise as appropriate the Bureau of Engineering's street design project quality controls to ensure that street project designs meet the project needs and site requirements. 1

1.2 Revise or enhance the Bureau of Engineering's existing street project design and drafting procedures to ensure that project plans and specifications correspond to actual site conditions. 2

1.3 Identify major causes of street project delays and develop procedures to reduce common causes, including quality control and project scheduling procedures. 2

The Bureau of Sewer and Street Repair Manager should:

1.4 Develop systems to better capture and report patching and pothole activities and the cost-effectiveness of performing the work. 2

1.5 Evaluate the labor hours, labor costs, and productivity of street resurfacing projects to ensure that these projects are delivered cost-effectively. 1

1.6 Present cost data and analysis of pothole, patching, and street resurfacing costs to the Board of Supervisors as part of the FY 2007-2008 budget review. 1

1.7 Work with the Human Resources and the Health and Safety Division to identify causes of paid and unpaid sick and disability leave and actions that the Bureau can take to reduce the incidence of unpaid leave and increase the number of productive hours. 2

1.8 Continue to report hours worked and not worked as part of the Department of Public Works' SF Stat measures. 1

2.1 Work with the Mayor and with Homeless Connect to set up a Homeless Connect team to address some of the public right-of-way areas with the most severe homeless encampments, and to coordinate City departments' resources and services to these areas. 2

The Deputy Director for Operations should:

2.2 Investigate the potential cost-savings and efficiency gains of using satellite staff reporting and equipment storage locations. 3

2.3 Develop a streamlined and uniform method for other City departments to report resolution of their 28-Clean service requests so the requests can be closed out in a timely fashion, in conjunction with the Computer Services Division. 2

2.4 Develop and implement a policy and methodology for the Bureau of Street Environmental Services to prioritize among competing immediate service requests and ongoing maintenance needs 2

2.5 Direct the Bureau of Street Environmental Services Manager to develop formal productivity standards for street and graffiti maintenance personnel, and direct supervisors to allocate staff according to these standards. 2

2.6 Evaluate the potential of using non-managerial staff or an outside contract to perform the Proposition C inspections, instead of more costly managerial staff. 2

2.7 Use the data from the Proposition C inspections to reallocate resources where prudent, such as to alter the frequency of certain street cleaning schedules. 2

2.8 Report the Bureau of Street Environmental Services compliance with Proposition C maintenance schedules. 2

2.9 Standardize the format and information content of the weekly reports submitted by Bureau of Street Environmental Services supervisors. 2

2.10 Work with the Mayor's Office, Police Department, and Director of Public Works to aggressively pursue other litter enforcement staffing models. 3

2.11 Investigate and implement procedural changes to litter enforcement, such as streamlining the procedures involved in processing citations. 2

2.12 Direct the Bureau of Street Environmental Services Manager to set-up work order agreements and billing procedures to accurately reflect any graffiti abatement work it does for other agencies and departments. 1

2.13 Ensure the allocation of Bureau of Street Environmental Services resources to the measurement and evaluation of the new corridor approach, and utilize this information to inform future changes in the program structure. 1

2.14 Work with the Human Resources and the Health and Safety Division to identify causes of paid and unpaid sick and disability leave and actions that the Bureau can take to reduce the incidence of unpaid leave and increase the number of productive hours. 2

The Director of Finance and Administration should:

2.15 Develop procedures to ensure timely collection of litter citation fines. 2

3.1 Submit a tree planting permit application fee schedule to the Board of Supervisors for approval that sets a fee schedule charging full permit processing costs to property owners that are required to plant new street trees in accordance with Section 143 of the Planning Code.. 1

3.2 Work with the Mayor's Office and Board of Supervisors to align proposed planting of new trees with ongoing funding for maintenance of street trees. 1

The Deputy Director for Operations should:

3.3 Develop performance measures specific to the mission, goals, and objectives of the Bureau of Urban Forestry. 1

3.4 Develop a work plan and schedule to evaluate, identify, and implement improvements to the Bureau of Urban Forestry's databases, including assessing the feasibility and potential costs of integrating the forestry databases with 28-Clean, in conjunction with the Director of Finance and Administration. 2

3.5 Develop an annual work plan and schedule to inventory non-Department maintained street trees, including setting inventory priorities based on geographical location and responsibility for trees. 3

3.6 Develop a volunteer program or partnership with nonprofit organizations to assist in the inventory of non-Department maintained street trees. 3

3.7 Report the actual pruning and tree maintenance schedule on the City's web site. 2

3.8 Develop median and other landscape maintenance standards and schedules and publish these standards and schedules on the City's web site. 2

3.9 Develop methods for tracking all of the routine and non-routine work done on landscape properties in order to best allocate resources in the future. 2

3.10 Evaluate procedures to include street tree inspections in routine activities, including streamlining reporting and documentation procedures and training staff in street tree regulations and procedures. 2

3.11 Develop procedures to revisit sites where removal permits have been denied, including (a) utilizing Bureau of Urban Forestry tree, landscape, and watering crews or Bureau of Street Environmental Services crews to conduct preliminary checks while performing other work in the vicinity, and (b) streamlining procedures and documentation 2.

3.12 Develop a methodology for prioritizing routine tree maintenance and service requests. 2

3.13 Assess staffing alternatives, including dedicating one of its landscape crews to only routine maintenance, and allow other staff to respond to service requests. 2

3.14 Work with the Human Resources and the Health and Safety Division to identify causes of paid and unpaid sick and disability leave and actions that the Bureau can take to reduce the incidence of unpaid leave and increase the number of productive hours. 2

The Director of Finance and Administration should:

3.15 Review and track fee revenues against expenditures each year to ensure that the Bureau of Urban Forestry is recovering service costs overall and recommend fee increases, in addition to the Consumer Price Index increases, to the Board of Supervisors as necessary. 1

3.16 Develop procedures to ensure timely collection of fines. 1

4.1 Evaluate the Bureau of Street Use and Mapping's administrative costs to process the street improvement fee for property owners issued a notice to repair sidewalks and streets fronting their properties and submit a fee proposal to the Board of Supervisors for approval during the FY 2007-2008 budget review. 1

4.2 Identify obsolete fee provisions in the Public Works Code and submit revised or updated language to the Board of Supervisors for approval during FY 2007-2008, including ensuring that fees under outdated Code provisions are calculated to fully recover costs. 2

4.3 Post the same fee schedule on the Department's web site as the fee schedule used by the Bureau of Street Use and Mapping to calculate permit fees. 1

4.4 Establish procedures to calculate street improvement permit inspection fees based on the Bureau of Street Use and Mapping's actual costs to conduct additional inspections under the street improvement permit, in accordance with Public Works Code Section 2.1.3. 3

4.5 Review and track fee revenues against expenditures each year to ensure that the Department of Public Works is recovering service costs overall and recommend fee increases, in addition to the Consumer Price Index increases, to the Board of Supervisors as necessary.

(a) Evaluate General Fund fees to ensure cost recovery 1

(b) Evaluate Special Fund fees to ensure cost recovery 3

4.6 Evaluate actual inspection time allotted to permitted projects and ensure that Bureau staff are accurately recording their project hours. 3

4.7 Review the permit fee list and written guide and include all fee and permit requirements and applications not currently included. 1

4.8 Provide a report on the outcome of each district focus inspection to the Board of Supervisors City Operations and Neighborhood Services Committee, including notifying the appropriate Board of Supervisors' member of the district focus inspection conducted in his or her district and the report on the outcomes. 1

4.9 Provide an update to the Budget Analyst, as part of the Budget Analyst's review of the FY 2007-2008 Department budget, regarding (a) the number of inspections by permit type per district, and (b) how this data has affected inspector assignments by permit type and geographic area. 1

4.10 Provide an update to the Budget Analyst, as part of the Budget Analyst's review of the FY 2007-2008 Department budget, on the integration of the Task Management, permit and Inspect-o-matic systems, including the status and goals of the project and how the integration will allow the Bureau of Streets and Management to more efficiently allocate inspectors' time by permit type and geographic area. 1

4.11 Provide an update to the Budget Analyst, as part of the Budget Analyst's review of the FY 2007-2008 Department budget, on the Bureau's activities to increase inspectors' accountability for inspecting or reporting all permit violations within their geographic area of responsibility, including (a) result of employees' performance evaluations, and (b) actions taken by the Bureau and the results of these actions.

(a) Update on Bureau's activities to increase inspectors' accountability 1

(b) Report on results of employees' performance evaluations and actions taken 2

5.1 Complete an annual evaluation of all sidewalks for which the Department of Public Works is responsible and record these findings in their computer tracking system. 3

5.2 Assess common causes of tree-related claims, such as specific types of trees, locations, and sidewalk structures, to determine which factors contribute to claims. 2

5.3 Include the claims assessment data in setting sidewalk repair priorities. 2

5.4 Track and analyze sidewalk repair funding, sidewalk repairs, and sidewalk-related claims costs to determine if targeted sidewalk repairs contribute to reduced claims costs. 2

5.5 Present this information to the Board of Supervisors each year during the annual budget review. 3

6.1 Establish a common performance goal for the Bureau of Engineering and Bureau of Architecture that measures the impact of design errors and omissions on construction costs and report the outcomes annually. 1

6.2 Develop a plan and timeline to evaluate, implement, or further develop and revise the findings and recommendations of the Department of Public Works' capital project quality assurance task force. 2

6.3 Identify commonly occurring problems in design projects provided by consultants and develop protocols to address these problems. 2

6.4 Coordinate with the Mayor's Office of Disability and the Department of Building Inspection, among other agencies, to ensure that policies, procedures, and regulations are both well-understood and consistently applied. 2

6.5 Assess the cost of physical site visits during the planning and design of construction projects compared to the potential costs of construction contract change orders due to design errors and omissions and unforeseen site conditions, and implement site visit procedures based upon the assessment. 2

6.6 Assess the cost of site testing for different commonly-occurring site conditions and tests compared to the potential costs of construction contract change orders due to unforeseen site conditions, and implement site testing procedures based upon the assessment. 2

6.7 Assess the costs of additional construction document reviews for projects at different phases of the design process compared to the potential costs of construction contract change orders and delays and implement procedures based upon the assessment. 2

8.1 Implement procedures to (a) ensure accurate and complete entry of change order information into the Bureau of Construction Management's change order tracking system and (b) tracking and monitoring of change order information. 2

8.2 Re-evaluate time extension approval and documentation procedures, including change order policies, procedures, and practices, to ensure that the written procedures provide sufficient project control over project timelines and that actual practices comply with procedures. 2

9.1 Establish a task force with representatives from the Department of Public Works, the Controller's Office and client departments to develop and implement a plan to address capital project accounting process issues as well as current reconciliation and closeout of inactive projects. 1

9.2 Report back to the Board of Supervisors during the FY 2007-2008 budget hearing on the status of the implementation of the task force findings and plan. 1

10.1 Standardize work load planning and reporting to allow executive managers to better assess overall funding and staffing needs. 3

10.2 Evaluate short-term and long-term engineer and architect staffing to ensure that high staff costs compared to project funding do not lead to increased overhead rates. 2

The City Administrator should:

10.3 Assist City departments, including the Department of Public Works, in planning capital project staff resources as part of the capital planning process. 2

11.1 Establish budgetary and financial controls to ensure that the Controller authorizes re-allocation of facilities maintenance and other designated appropriations to other uses in accordance with the Administrative Provisions of the Annual Appropriation Ordinance. 2

11.2 Direct the Director of Finance and Administration, in conjunction with the Bureau of Building Repair Manager, to evaluate and re-engineer the Bureau of Building Repair's business processes. 2

11.3 Revise the existing Bureau of Building Repair mission statement to reflect clearly the Bureau's reason for existence and the contribution that the Bureau can make to the City's quality of life. 1

11.4 Develop performance measures, standards, and objectives that will serve to provide direction, accountability, and control for the Bureau of Building Repair's operations. 2

11.5 Oversee the process of re-engineering the processes and systems that the Bureau of Building Repair employs to receive, approve, monitor, control, and report on its work requests. 2

11.6 Establish a timeline for the development of an Operational Policies and Procedures Manual and report on the status of the manual's development to the Deputy Director, Operations, prior to May 31, 2007. 1

11.7 Develop and consistently administer a customer survey that captures measurable information on all of the Bureau of Building Repair's key results areas of service. 2

11.8 Work to improve communications within the Bureau of Building Repair in order to improve morale and thus the performance of the Bureau. 2

11.9 Develop and implement a process for addressing the suggestions and concerns of the Bureau's supervisors, on a continuing basis. 2

11.10 In accordance with the City's construction codes, ensure that the Bureau of Building Repair obtains permits and inspections, as required. 1

11.11 In cooperation with the Department of Building Inspection, ensure that the Bureau of Building Repair obtains priority assignment for plan review and issuance of its permit applications, as provided for in the Department of Building Inspection's Administrative Bulletin No. AB-004, Priority Permit Processing Guidelines. 2

12.1 Establish a timeline and completion date for each of its Bureau of Building Repair initiatives. 1

12.2 Include as one of its initiatives a business process review of project and job order management. 1

12.3 Establish appropriate controls over job order creation, management and closeout and document such controls in written policies and procedures. 1

12.4 Establish a formal computerized maintenance management system project structure with timelines, deliverables, and a project team that includes representatives from accounting, administrative, information technology, and client departments. 2

Section 13: Materials Management Controls and Procedures

The City Administrator should:

13.1 Direct the Office of Contract Administration to develop a City-wide set of guidelines and procedures and a training program on storeroom operation and management as recommended in Section 2.2 of the 1991 audit report of Purchasing and Storekeeping Functions as Administered by the Purchasing Department. 2

The City Services Auditor should:

13.2 As part of reviews or audits that it performs of City materials storerooms, recommend guidelines and procedures for City internal controls in this area. Guidelines and procedures recommended for the Department of Public Works may also be extended to other City agencies. 2

13.3 Develop an audit schedule for periodic reviews of City materials storeroom subject to the City Services Auditor's risk analysis and scheduling process. 2

The Director of Public Works should:

13.4 Work with the City Services Auditor to develop guidelines and procedures for City storeroom internal control, which may then be extended to other City agencies. 2

13.5 Work with the City Services Auditor to develop an audit schedule for periodic reviews of the Department of Public Works storerooms. 2

The Deputy Director, Operations, should:

13.6 Continue to expand the inventory of items under the storeroom's responsibility commensurate with economical and efficient operations. 2

13.7 Ensure that storeroom staff receives the training and understands the guidelines and procedures that we recommend that the Office of Contract Compliance develop. 2

The Deputy Director, Finance and Administration, should:

13.8 Comply with the requirements of Section 21.03(a) of the Rules and Regulations Pertaining to the San Francisco Administrative Code, Chapter 21, promulgated by the Purchaser, concerning delegated departmental procurements. 1

Section 14: Automotive and Mobile Equipment Management

The Director of Public Works should:

14.1 Emphasize the importance of complying with preventive maintenance inspection schedules. 2

14.2 In accordance with Section 4.11 (b) (4) of the Administrative Code, ensure that the Department of Public Works maintains detailed records on all City vehicles used to commute to and from home. 1

14.3 In accordance with Section 4.11 (b) (6) of the Administrative Code, obtain the approval of the Board of Supervisors, by resolution, prior to authorizing employees to garage City vehicles at their residences. 1

14.4 In accordance with the State driver license EPN (Employer Pull Notice) Program, ensure that all required employees are enrolled in the Program and that the required individual Driver Record Information is available and current 1

The Manager, Central Shops, should:

14.5 Ensure that all vehicles released for service by Central Shops meet the safety requirements of the California Vehicle Code. 2

14.6 Ensure that required maintenance inspections are accomplished within the 90 days, as mandated by Section 34505.5 of the California Vehicle Code. 2

Section 15: Health, Safety, and Environmental Issues

The Director of Public Works should:

15.1 Fully support the Department of Public Works' Health and Safety Program including developing and disseminating a Department of Public Works' Safety Policy Statement. 1

The Operations Division Manager should:

15.2 Continue to improve the housekeeping and physical condition of the Operations Division Yard and the Asphalt Plant and implement specific corrections to address deficiencies noted by the Public Utilities Commission and Airport health and safety staff. 2

15.3 Evaluate the costs and obtain funding to install a multi-chambered oil-grit separator to treat the effluent from the catch basins, or remove the catch basin entirely and install a drainage grate that is plumbed directly to the separator. 1

15.4 In conjunction with the Environment, Health and Safety Manager, analyze the causes of the increased severity of workplace injury and illness in the operating bureaus and develop and implement a plan to significantly reduce the incidence of workplace illness or injuries in the Operations Division. 2

16.1 Work with the Director of Operations and the superintendents of the four operating bureaus to ensure that the operating bureaus' procedures for managing work orders and recoveries are consistent and comply with the Department's policies and procedures.

(a) Bureau of Building Repair 1

(b) Bureaus of Street and Sewer Repair, Urban Forestry, and Street Environmental Services 2

16.2 Develop a mechanism to facilitate client departments' access to project expenditure data, including developing routine reports that allow client departments to track project expenditures. 2

16.3 Implement a process to work with client departments to develop quarterly reports that allow client departments and bureau superintendents to track work order expenditures. 2

16.4 In conjunction with the Director of Operations, develop an annual interdepartmental work order fund budget for the operating bureaus that includes the salary and non-salary budget details in the individual work orders and the associated overhead expenditures. 3

16.5 Develop procedures that allow bureau superintendents to track interdepartmental work order fund budgets at a summary level. 3

16.6 Develop and provide an annual summary report as part of the Board of Supervisors' annual budget review for each bureau's interdepartmental work order fund, showing actual salary and non-salary expenditures by fund. 1

16.7 Transfer the revenues and expenditures associated with cement work in the annual budget from the Bureau of Building Repair to the Bureau of Urban Forestry. 1

16.8 Reconcile the Special Engineering, Excavation and Subdivision Funds annually. 1

The Manager of the Bureau of Street Use and Mapping:

16.9 Provide annual summary reports as part of the Board of Supervisors' annual budget review, showing actual salary and non-salary expenditures by fund. 1

17.1 Work with the City's Department of Human Resources to assess and revise the existing human resources position classifications and job descriptions within the General Services Agency to allow increased cross-training and flexibility in staffing. 1

17.2 Work with the City Administrator to identify ways to consolidate the Department's payroll processing functions within the larger General Services Agency, including developing a work plan, time frame, and cost analysis. As part of the work plan, the Department needs to work with the Controller's Office on the Controller's future acquisition of a human resources and payroll system package. 3

17.3 Work with the City Administrator to evaluate the Department's human resource processes, performance, and productivity; implement a work plan to streamline processes and improve performance and productivity; and recommend cost savings, including staff reductions or reallocation within the General Service Agency. 1

17.4 Submit proposed reductions or reallocation of human resource staffing within the General Services Agency as part of the human resource function evaluation to the Board of Supervisors during the FY 2007-2008 budget review. 1

17.5 Direct the Bureaus of Engineering, Architecture, and Construction Management to evaluate the integration of their information technology activities, including consolidating information technology positions. Present an information technology staffing plan during the FY 2007-2008 budget review that defines the Department's information systems and support requirements, as well as information technology staff skills and time needed to support the information systems, This plan should also generally identify areas of redundancy and opportunities for improved efficiency and productivity, and recommend staff reductions. 1