SR 03-26-2019 3G
City Council
Report
City Council Meeting: March 26, 2019
Agenda Item: 3.G
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To: Mayor and City Council
From: Katie Lichtig, Assistant City Manager, City Manager's Office, Administration
Subject: Framework Revision- Adjustment of Values
Recommended Action
Staff recommends that the City Council modify the Framework values identif ied at the
Council Retreat to better distinguish between values and Framework Outcome Areas.
Specifically, staff recommends that “Innovation” replace “Safety” as one of the Council
chosen values as Safety is already one of the seven Framework Outcomes and
“Keeping Neighborhoods Safe” is one of the six Framework Priorities.
Summary
In 2017 the City Council adopted a new budget and performance Framework to clearly
identify measurable outcomes for our services and our expenditures. Called “A
Sustainable City of Wellbeing” to incorporate Santa Monica’s long-standing
commitments to promote environmental, economic and social sustainability and
wellbeing for all community members, the new Framework is the centerpiece of re -
imagining the budget to create a 21st Century government that works better and costs
less.
Traditional budgeting relies on department level line -item expenditures. It does not
clearly tie that spending to programmatic results – specific and measurable outcomes
that benefit the community – and which often cross departmental lines. For example,
reducing homelessness does not fall in a single City division or department. While that
is a Council and community priority, it is both hard to measure and hard to achieve
using the traditional budgeting approach. Similarly, reducing costs systematically
across 11 departments and 668 activities requires tying expenditures directly to the
results they are designed to achieve, also a challenge using the traditional budgeting
approach.
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Santa Monica is a pioneer, but not alone among cities in adopting “performance-based”
or “results-based” budgeting practices. Santa Monica, however, is singularly focused
on combining what works well with our current budgeting practices with innovative
“performance-based” approaches tailored to our community, its priorities and its values.
The Framework adopted by the Council connects organizational purpose with day-to-
day functions to create a Sustainable City of Wellbeing. It is built on a foundation of
good governance. The Framework contains seven outcomes and 20 sub-outcomes that
help define the results and specify the activities that foster a Sustainable City of
Wellbeing. The seven outcomes (explained in more detail below) are Governance (the
foundation for supporting the entire range of city services and activities); Community;
Economic Opportunity; Health; Learning; Place and Planet; and Safety.
At its retreat on January 26, 2019, Council established six Framework Priorities based
on a suboutcome within the one of the seven outcome areas for the Fiscal Year (FY)
2019-21 biennial operating budget. The priorities are Engaged and Thriving
Community; Affordability; Reduce Homelessness; Climate Change; Mobility and
Access; and Keeping Neighborhoods Safe (Reduce crime).
At that retreat, Council discussion highlighted the importance of “values” as additional
dimensions of priority setting and budget decision-making. Those discussions identified
six core values that underpin all work done by the City:
Accountability;
Equity;
Inclusion;
Resilience;
Safety; and
Stewardship.
While safety is clearly a vitally important consideration in weighing priorities and budget
decision-making, it is already identified as an outcome. To avoid confusion and
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redundancy, staff recommends not repeating Safety as a value, instead focusing on it
as an outcome. In its place, staff recommends adding “Innovation” as a value, given the
City’s longtime commitment to pioneering policy initiatives.
Discussion
Beginning in the biennial budget for Fiscal Years 2017-2019, departments organized
work efforts around outcomes identified in the Framework for a Sustainable City of
Wellbeing. The seven outcomes are:
Connected and Engaged Community (“Community”);
Lifelong Opportunities for Personal Growth (“Learning”);
Resilient Built and Natural Environment (“Place and Planet”);
A Safe Place for All (“Safety”);
Inclusive, Affordable, and Diverse Local Economy (“Economic Opportunity”);
Physical, Mental, and Environmental Health (“Health”); and
Reliable, Effective, and Efficient Government (“Governance”).
Each outcome is further organized into sub-outcomes, each of which include a definition
and metrics to provide greater clarity on how the City hopes to achieve each outcome.
At the retreat on January 26, 2019, Council prioritized six of the sub-outcomes as
Framework Priorities (“Priorities”) for the upcoming biennial budget. Each Priority has a
team of staff members working on develop a plan of action which will include monitoring
existing activities in these areas, as well as new investments designed to achieve stated
outcomes. Priority Teams will present draft plans to Council on April 30 , 2019.
Priorities are:
Keeping Neighborhoods Safe (in the Safety Outcome Area)
Mobility and Access (in the Place and Planet Outcome Area)
Climate Change (in the Place and Planet Outcome Area)
Engaged and Thriving Community (In the Community Outcome Area)
Affordability (in the Economic Opportunity Outcome Area)
Reduce Homelessness (in the Health Outcome Area)
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Both my emphasis and action, Council has clearly articulated and demonstrated the
City’s commitment to public safety -- as an outcome and a specific priority -- and the
City Manager’s budget proposal will reflect that clear commitment to a safe Santa
Monica.
In the place of safety, staff recommends including innovation as a value, given the City’s
longtime commitment to groundbreaking policy initiatives, such as the nation’s first
Sustainability Plan, the nation’s first Wellbeing Index, and leadership on i ssues like local
minimum wage, banning smoking in public places, and achieving water self -sufficiency,
reducing waste and promoting energy efficiency. In the Independent Compensation
Staffing Study completed last year (Attachment A), the audit report highlighted the City’s
role as a model for municipal innovation. Officials at peer cities identified in the study
“noted that they look to Santa Monica, Palo Alto, and Berkeley as ‘innovation labs’ of
local government in California, because they have the employees, culture, and
resources to explore innovative programming and services. When something works in
these cities, others use their examples and expertise to implement programs.
Past Council Actions
Meeting Date Description
01/26/19 (attachment B) Council Retreat Staff Report selecting Framework
Priorities for the FY 2019-21 budget.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of
recommended action. Framework Priority Teams, including a team working on Keeping
Neighborhoods Safe, will present plans of action and associated budget
recommendations to Council on April 30.
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Prepared By: Tim Dodd, Chief Performance Officer
Approved
Forwarded to Council
Attachments:
A. City of Santa Monica Compensation and Staffing Review
B. January 26, 2019 Staff Report (Web Link)
C. Written Comments
“City of Santa Monica Compensation and Staffing Review,” Moss
Adams LLP, February 15, 2018 Peer Practices, page 45
Santa Monica is a full-service city, and provides many programs and services beyond
that of a typical city. Many peers also provide additional unique programs and services.
For example, Pasadena operates the Rose Bowl, Anaheim operates the largest
convention center in the West, Santa Barbara provides regional recreation services, and
Beverly Hills provides driveway roll-out trash can service. In addition, some peer cities
operate their own electric utilities. Several peers noted that they look to Santa Monica,
Palo Alto, and Berkeley as “innovation labs” of local government in California, because
they have the employees, culture, and resources to explore innovative programming
and services. When something works in these cities, others use their example and
expertise to implement similar programs. The cities of Berkeley and Palo Alto provided
insights on managing the unique culture and community expectations they share with
Santa Monica. Both cities reported that, similar to Santa Monica, the culture of high
levels of service was driven by the community, elected officials, and employees. HR
across all three cities reported that employees in are high achievers who are drawn to
the fast pace and have high workloads; City leadership reported that new hires typically
have more experience and education than a typical new hire. As a result, compensation
is an area of public concern in all three cities. During interviews, most peer cities
reported high community expectations. Berkeley and Palo Alto noted their highly
engaged and educated communities, with long public meetings and significant effort
made to quickly respond to citizen requests. Several peer cities reported a perception
that their public meetings are not as long as Santa Monica’s, nor do they require as
much staff time to support.
1
Vernice Hankins
From:Council Mailbox
Sent:Tuesday, March 26, 2019 1:00 PM
To:councilmtgitems
Subject:FW: 2/26 Council - 3.6 Agenda Item - Framework Revision --Keep Safety Value
From: Elizabeth Van Denburgh [mailto:emvandenburgh@gmail.com]
Sent: Tuesday, March 26, 2019 12:00 PM
To: Gleam Davis <Gleam.Davis@SMGOV.NET>; Ted Winterer <Ted.Winterer@SMGOV.NET>; Sue Himmelrich
<Sue.Himmelrich@SMGOV.NET>; Councilmember Kevin McKeown <Kevin.McKeown@SMGOV.NET>; Greg Morena
<Greg.Morena@SMGOV.NET>; Ana Maria Jara <AnaMaria.Jara@SMGOV.NET>; Terry O’Day <Terry.Oday@smgov.net>;
Clerk Mailbox <Clerk.Mailbox@SMGOV.NET>; Council Mailbox <Council.Mailbox@SMGOV.NET>
Cc: Rick Cole <Rick.Cole@SMGOV.NET>; Katie E. Lichtig <Katie.Lichtig@SMGOV.NET>
Subject: 2/26 Council ‐ 3.6 Agenda Item ‐ Framework Revision ‐‐Keep Safety Value
Mayor Davis and Council Members,
I disagree that the value of Safety should be replaced with Innovation. Safety is paramount to everything a City
does from health and physical safety to emotional and mental safety. Innovation is not a "means' in it self and
may not be appropriate for the issue, problem, goal or objective being addressed. It is not a universal concept
while Safety is always a value that we want to achieve. I think it was best said by a quote from a qualitative
comment - "I want safe libraries, parks and streets." Please retain the Safety value as a universal component of
everything we do in the City.
As outlined in my January 26, 2019 comments at the Performance Framework Retreat at the Broad, I continue
to be very concerned that the City's performance management program for the City that was designed to foster a
culture of data-driven decision making. The survey used to prioritize outcomes was not a scientific or
statistically valid data set that can relied on to represent, certainly the residents of the City. This is a poor start
to a data driven program that will evolve through the decades. Please give serious consideration to using a
statistically valid survey and data set that represent the City residents to determine the budget priorities for the
City.
Regards,
Elizabeth Van Denburgh
Wilmont Chair and Resident
Item 3-G
03/26/19
1 of 1 Item 3-G
03/26/19