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Civil Grand Jury reports (Volume 1976-77) online

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availability market seems to be the indicating factor for this
department's reduction in turnover because the salary level is
still quite low.

The Grants Division, under the management of Mr. Bob
Mast, now handles $600,000,000 in grants procured by the City
through various departments. Grants, now a separate division,
has enabled the combined Audits Division to eliminate its back-
log.

The Audits Division, under the ranagement of Mr. Jim
Porter, conducts audits of several City departments as required
by the City Charter or by the request of a department. Since the
combination of the Utility and General Audits Divisions, this
division has caught up with its backlog. This will enable the
division to do more work on auditing non-profit corporations, re-
volving funds and concessions.

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CONTROLLER (continued)

Other functions of the Audits Division are: supplying
information on impact on the budget of proposed charter amendments,
insurance sohedules and gathering of information for bond state-
ments .

Relative to bond information and the issuance of an of-
ficial statement of the City, we asked Mr. Parrell about San Fran-
cisco's financial situation in reference to an article published
by New West Magazine in its October 24, 1977 issue. The article
was entitled, Bond Crisis for San Francisco ? Its Foreclosure Than
You Think . Mr. Farrell said that many statements in the article
were taken out of context and some Information used in the article
was not current. In conclusion, he said the article was very mis-
leading, i.e., the statement that San Francisco is closer to a
financial crisis similar to New York City, is not correct. Mr.
Farrell said that San Francisco, unlike New York City, does not
borrow funds to finance its current operating expenditures and
that San Francisco has a cash reserve of $32,600,000 for use
until the property taxes and other revenues are received. If,
for some reason, actual revenues do fall short of estimated rev-
enues, Mr. Farrell reserves expenditures instead of asking the
taxpayers for additional sums of money. He pointed out, because
of these precautionary measures, the City runs on a balanced
budget.

We were given the Official Statement of the City rela-
ting to the $55»000,000 Sewer Revenue Bond. We were also given
a municipal bond report by L. F. Rothschild, Unterberg, Towbin
which states: "In view of the high quality of San Francisco's
City Management, a good official statement and the important
participation of the federal government in requiring and helping
to finance the project, we suggest a very good bank quality in-
vestment rating (A-l or A+) for the bonds despite this being a
construction project." Moody and Poorfe gave this bond an A
rating.

Also in relative importance to bond statement informa-
tion is the City's implementation of FIRM (Financial Information
and Resources Management System) . FIRM will greatly enhance the
City's accounting systems, budgetary controls and resource allo-
cations. Policies derived and set forth will be more rational.
Improving the financial management of the City supports positive
attitudes toward those considering investing in our bonds.

At the moment this office and the other City financial
departments, in both management and policy making, are going
through the first steps of changing over to the FIRM System. The
changeover is an overwhelming task requiring re-education and
reorganization. As difficult as it may seem, the rewards will be

-19-



CONTROLLER (continued)

substantial. As outlined in the Mayor's Office Departmental
Instructions of FIRM, the system is intended to:

1. Substantially enhance the City's basic
financial accounting capability.

2. Provide a mechanism for results-oriented
program/performance budgeting.

3. Improve the budget administration process.

** . Strengthen program management of the de-
partmental level by providing an improved
management information capability.

5. Establish a more rational basis for re-
source allocation and policy development.

6. Facilitate public participation in the
resource allocation process.

Starting on July 1, 1978, all departments, with the ex-
ception of Recreation and Park, will be preparing their time
roll on a modified version of the existing payroll system (CAA).
It has been modified to accommodate the FIRM coding structure.

Judy Johnston, Senior Project Manager at EDP, said that
the pilot department, Park and Recreation, will begin implementa-
tion of the FIRM System with the new MSA (Management System
America) payroll package. MSA has also been modified to accommo-
date the FIRM coding structure, and to pass labor distribution
information to FAMIS (Financial Accounting Management Informa-
tion System) . This detail activity reporting will begin on July
7, 1978, for the pilot department. All departments will be on
dual implementation of payroll procedure which is unique to the
FIRM project.

Through the various steps of the MSA/FIRM, labor dis-
tribution files from the modified CAA and MSA Systems will be
merged and interfaced. The interface will then be passed to
FAMIS both containing detail and summary records.

Eventually all departments using the modified CAA pay-
roll Bystem will convert over to the MSA System. The FIRM System,
to be completed and fully operational in 1981, will probably add to
EDP user frustrations. We hope that Mr. Farrell will avail him-
self and his FIRM team In solving any problems that might even-
tually build up and hold up the much needed system.

The 1975-76 Grand Jury Report on the office of the
Controller expressed a need for one Central Fiscal Office, and

-20-



CONTROLLER (continued)

not three as now exist. When asked about this situation Mr.
Parrell stated that there were still three separate independent
financial offices. He said that the Mayor's Budget Analyst and
the Budget Analyst to the Board of Supervisors are financial
policy makers and that the Controller's office is non-policy
making. He expressed a feeling that the existing separation
was an important and beneficial one. The Orand Jury's thoughts
on this subject are expressed in the Introduction to these
Grand Jury Reports .

We wish to commend Mr. Farrell and staff on their well
organized, smoothly run operation and their complete cooperation
with the committee in our investigation of the department.



ELECTRONIC DATA PROCESSING



The Electronic Data Processing Complex is located in
City Hall and is headed by Mr. Henry Nanjo, Managing Director.
Administration of EDP is the responsibility of the Controller,
under whose office this department functions . Implementation of
EDP's projects and functions, however, is the responsibility of
the Chief Administrative Officer (CAO).

The priorities of EDP projects, determination as to
which projects should be undertaken and which ones should be set
aside, are set by the Priority Committee, of which the CAO is
chairman. On this committee are computer experts from private
business contributing technical knowledge to the City members who
are primarily interested in finance and accounting, i.e., Budget
Analyst to the Mayor and Budget Analyst to the Board of Supervi-
sors.

The computer system consists mainly of two IBM 158' 8
back to back, handling a total of four million units of informa-
tion. Due to the limited number of channels into the computer,
EDP requested the purchase of an IBM 3033 which would provide
more channels and more memory. The EDP Priority Committee turned
down the request and instead leased two memory units capable of
four million units of information. As a result, storage capacity
has increased by four million units but the number of channels
remain the same, therefore, the number of transactions that the
computer can handle simultaneously remains the same. The cost of
leasing the new memory system is $3,000 per month.



-21-



ELECTRONIC DATA PROCESSING (continued)

The computer system services some 17 departments and
runs at nearly 100J5 capacity . Use of the computer has more than
doubled since 1973 » from some 300 Jobs to the present number of
650.

The high priority users of EDP are the Police and Fire
Departments. The Police Department's CABLE system is operating
21 hours a day providing access to information at a moment's
notice. Following in priorities are departments in Public Finance,
followed by Human Resources and finally departments in Physical
Development.

The rate of services to the City are as follows:

Teleprocessing 3l0 Terminals

16,700 Transactions Daily
21 hours a day



Batch



Time Sharing Option



650 Jobs daily

21 hours a day

22 users

9 hours a day



In addition to the current rate of service by the com-
puter, a new burden will be placed on the computer's system. This
burden is the comprehensive Financial Information and Resources
Management (FIRM) system. The first phase will be implementation
of the MSA payroll package to tie in with the FIRM project. The
Recreation and Park Department will be the first department to
change over to the MSA payroll package. This will take place on
July 7, 1978, when the basic financial accounting and management
information system becomes operational in the Controller's office.

The FIRM system, when fully operational in 1981, will be
a valuable tool in the budget process and in program management.
Results of departmental activity will be quite detailed, therefore,
policy and resource allocation will be handled on a more rational
basis rather than political.

The impact of the MSA/FIRM system on EDP will be tremen-
dous. Taking into consideration prior commitments of EDP, an
additional upgrading of the system is inevitable.

FUTURE APPLICATION COMMITMENTS



1978-79
BASIC



1979-80
ALL DEPT



FIRM

(3.5 M Documents)

MSA

(2.5 M Transactions) BASIC LABOR DIST

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1980-81
PERF BUDGET

INTEG PERSONNEL



ELECTRONIC DA TA P ROCESSING (continued)

VOLUME INCR



WASTE WATER MANAOEMENT
($2 Billion project) PCS

COPE
T/S SUPPORT



VOLUME INCR



HOSPITAL

(2 M Documents)



TRAFFIC CITATION



ADMISSIONS PHARM ORDER APPOINT
PHARM INV CTL SCHD
MED REC ABSTR MED ORDER
ENTRY



RES PKG

ST CLEANING



VOLUME INCR



DIST PROC



FUTURE TELEPROCESSING REQUIREMENTS

1977-78 1978-79 1979-80
DAILY TRANSACTION TOTAL 46,700 68,800 116,700
PEAK HR TRANSACTION TOTAL 5,600 8,250 11,004



1980-81

155,700

18,680



The increase of on-line or teleprocessing means a reduc-
tion of "key stroking" as a separate operation for data entry.
Problems occurring in this change to teleprocessing are: an in-
crease in demand of immediate response and a higher level of up-
time.

The consequences of the future additional traffic could
be an overload in the Bystem, incurring a delay of services and dis-
ruption of departmental operations within the City.

The problem that confronts EDP service capabilities are
currently under study by the Priority Committee. One proposal by
the Municipal Court is to install mini-computers and institute a
decentralized method of handling traffic fine information.

The use of mini-computers, according to Mr. Nanjo, is
perfectly fine if the 'mini* meets the EDP requirements and
standards. If consultation with EDP prior to purchasing a 'mini'
does not occur, the action might prove wasteful. This is not un-
usual considering the expertise of computer sales representatives
in selling their product.



•mini' is:



The procedure used to determine the need to purchase a

1. Requirement analysis by EDP staff (Extensive)

2. Systems Design (cost analysis)

-23-



ELECTRONIC DATA PROCESSING (continued)

3. Approval by EDP Priority Committee and budget process

4 . Programming

If a requirement analysis is not made by EDP, the move
could be a waste of money, as noted in the report of Laguna Honda
Hospital.

Mr. Nanjo purposely keeps the record systems separate
for reasons of privacy. He is very strong in his conviction and
arguments for keeping personal information in tight security.
For one department to request personal information belonging to
another department, is a definite "no-no".

During our first visit to EDP Mr. Nanjo demonstrated the
security of personal information function, private information
of one department requested by another. Mr. Nanjo asked the com-
puter for any outstanding warrants attached to one of the members
of this Grand Jury. The computer answered to the effect that,
he was not authorized to receive information requested. Mr. Nanjo
stated that the following morning he would be asked why he had re-
quested such Information.

Until policy is legally established determining the re-
lease of information, Mr. Nanjo will stand by his privacy conten-
tion, with which we concur. Assistant Director Tom Gerughty has
been given the responsibility of reviewing all pending legislation
in this area. On the local level, he and City executives along
with legislative officers have been formulating definite policy.

EDP has been operating on a flat budget for three years
of $8.3 million. In Fiscal Year 1978-79 it will again operate on
the same amount of money.

We have found Mr. Nanjo to be very competent and know-
ledgeable in his Job as Managing Director of EDP. He is a valu-
able source of information to departments in the City who are
considering use of EDP systems.

In conclusion, we hope that any presentation of Mr.
Nanjo's ideas pertaining to EDP, are taken seriously, i.e.,
Recommendation to Increase Central Site Computer Capacity ,
December 1977. We also hope, that with the growing computer de-
mands, EDP's budget will increase in order to meet the future
scope of services.

For a more detailed report on EDP, refer to the Evalua -
tion Report on EDP conducted by Arthur Aschauer and Co., Inc.,
November 19, 1977.

-24-



ART COMMISSION

The Art Commission Is under the direction of Mr. Martin
Snipper with Joan Ellison as Assistant Director and Secretary.
All other staff are CETA employees. They number 130.

The main responsibilities of the Art Commission are to
bring the arts to the public through the annual arts festivals,
the pops concerts, and the promotion of artistic expression
through the Neighborhood Arts Programs and Community Cultural
Centers .

Other responsibilities include reviewing and approving
(or disapproving) designs of new buildings, the licensing of
street merchants, and the care and maintenance of public works of
art.

An ordinance allowing up to 2% of construction costs on
new capital projects of the City and County for artistic embellish-
ment, provided a mechanism for the purchase of art at the San
Francisco General Hospital and will provide in excess of $1.7
million for the purchase of art in the expansion of San Francisco
International Airport.

The Community Cultural Centers of the Neighborhood Arts
Programs were created to reach out into the City's communities
and organise all those interested in displaying their art, as well
as those concerned with play production. The Neighborhood Arts
Program is the first and most effective program of its type in
the nation.

There are Bix Community Cultural Centers, four of which
are City owned. Those are:



1. Western Addition

2. South of Market Street
Mission
South City Opera House



I:



The remaining two cultural centers are under lease.
These are:

1. Chinatown Cultural Center

2. The Intersection in North Beach

The cost of running these cultural centers 1b $500-
$600 per month.



-25-



ART COMMISSION (continued)

The grant of $500,000 a year from Federal Revenue Shar-
ing will come to an end on June 30, 1978. With this loss and the
vulnerability of the Community Cultural Centers to budget cuts and
the current rate of inflation, we share the concern of Mr. Snipper
regarding the future of the centers .

In the area of reviewing architectural design of public
buildings, the concern of the Art Commission is blending of de-
sign with the surrounding area. Upon receiving notification of a
developer's plan to construct a public building, the Art Commission
sends a three-step procedure form that must be completed in order
to receive final approval. These steps are:

1. A schematic drawing of the building

2. Development plans (layout, primary working draw-
ings)

3* Final working drawings

If any of the three steps are not done, the architectural
design proves not to be in compliance with the commission and con-
struction plans are halted. A problem which may arise and is not
covered by the three-step procedure is the possibility of an un-
authorised design change after final approval.

A problem has emerged in the licensing of street mer-
chants. The license indicates the category of art to be sold but
there is no follow-up to be sure this is adhered to.

In summary, we hereby recommend:

1. A fourth rule be added to the three-step procedure,
i.e., no changes in design will be permitted after final approval
by the Art Commission. If the rule is violated we recommend that
a penalty be imposed.

2. One permanent full-time employee to handle licens-
ing of street merchants.



Joseph McKinley, Jr.
Lucinda Romaneck

Ronald Rub la, Chairman

-26-



SAN FRANCISCO UNIFIED SCHOOL DISTRICT

In March, 1976, after extensive community
participation, the Board of Education adopted a plan for
improving the San Francisco Public Schools.

School Superintendent, Dr. Robert Alloto, this year,
proposed an Educational Redesign for the City's public educa-
tion system and It Is scheduled to be Implemented this
September.

The Educational Redesign Is:

Elementary Schools : K-5 grades

Middle Schools: 6-8 grades

High Schools : 9-12 grades

The Initial Implementation of many of the recommen-
dations contained in the Redesign has resulted In some
dramatic progress in the area of reading achievement at the
primary level.

The public schools have had a decrease of
approximately 30,000 students in the past decade. Projections
indicate this decline will continue. The present school
population is 66,000.

The Redesign callB for the closing of certain
sohools and the merging of others with students being reassign-
ed to other buildings . Some of these buildings will be used
for other educational purposes, i.e., magnet centers and
alternative schools.

One such program utilizes Oalileo High School for
the enrollment of 350 students and will use an extended day.
The school will be in the new commerce center and major
industry in San Francisco will be involved in its development.

As a result of this Redesign 11,000 students and
hundreds of staff will be reassigned. Busing will be reduced
by approximately 50$.

The Redesign represents an effort to provide the
City's students with an education that will prepare them for
higher education and future employment. It will mean a return
to a strong emphasis on the basic skills of reading, writing
and mathematics; it will signify the end of social promotions
and meaningless diplomas.

-27-



SAN FRANCISCO UNIFIED SCHOOL DISTRICT (continued)

This plan will save the district, in a five year
projection, $7.6 million: in buildings closed ($5.6 million),
reduced busing ($1.6 million) and rental costs ($ .4 million).
Coupled with this is the income that will be received from
building leases and rental ($3.5 million). The cost of
implementation will be $2.7 million and the net savings will
be $8.1 million.

Dr. Allot o stated that every effort will be made to
have a smooth transition into the Redesign especially in the
area of the relocation of students and teachers, curriculum
changes and the prompt delivery of textbooks.

On the subject of violence, there have been two
students slain this year and assaults on teachers have
increased. Each of the seven high schools has an assigned
City policeman. This has reduced these acts of violence.

The schools* vandalism repair bill last year was
$1.4 million - $1.2 million of it due to arson. Broken
windows cost $200,000.

The budget for 1977-78 was $194 million. In 1977-78,
there were 22 fewer administrators (-W) and 157 less .teachers
(-4*) with an enrollment decrease of 2,700 (-H) .

Dr. Alioto has had a difficult and controversial
year; there has been and will be a certain amount of problems
in the implementation of the Educational Redesign with some
of the students and staff. We feel that in the long run it
will greatly improve the quality of education for the majority
of the students of San Francisco. Dr. Alioto has received
excellent support from the Board of Education and he has
shown remarkable skill under difficult circumstances in
implementing the change and he deserves assistance in his
endeavors .



SAN FRANCISCO COMMUNITY COLLEGE DISTRICT

The San Francisco Community College District provides
for the continuing education of all adults, 18 years and older.
There are two separate systems to facilitate their educational
goals: City College and the Community College Centers.

City College, under the presidency of Dr. Kenneth S.
Washington, offers the first two years of college work, tuition

-28-



SAN FRANCISCO COMMUNITY COLLEGE DISTRICT (continued)

free, to students who wish to continue with a four year college
education. Over 25,000 students attend City College both day
and night. It also offers 45 courses in occupational educa-
tion, most of which lead to an Associate degree and Job
opportunities at the end of two years. Forty percent of the
students are in vocational classes. Thirty-three percent of
the students are in night school, which now provides a
counselor and a nurse. The majority of the students come to
school during the hours of 9 A.M. to 1 P.M. To better utilize
the classrooms, the school offers a matinee course for people
over 50 years of age (not especially senior citizens) who would
come to class at 2 P.M., 3 P.M., or 4 P.M. At present, there
are 200 students.

There is also a weekend college where a student can
earn one unit by taking three hours of instruction on a
Friday evening and three hours on the following Saturday morn-
ing for three weekends .

We were Impressed with two particular services, among
others, offered: The Enabler Program and The Extended Opportu-
nity Program. The Enabler Program extends free services to
students with physical limitations, some of which are 1) gen-
eral medical conditions, such as post-surgery, asthma,, heart
condition, cancer and diabetics; 2) sensory impairments, such
sb blindness and deafness; 3) mobility impairments, such as
post-polio, paralysis, cerebral palsy, amputation, neurological
damage; and 4) emergency and temporary physical conditions.
Services to these people include: registration priority
ticketB (early enrollment), elevator keys, lockers, shuttle
vans (pick up and delivery anywhere on campus, or to MUNI and
BART stops, and in emergencies, home pick upb), medical park-
ing permits (closer to classrooms), notetakers (for those with
partial use of their upper limbs) advocacy (for students who
suspect discrimination on a basiB of being handicapped),
resource library (magazines dealing with issues affecting the
handicapped which are available on loan), referral (to other
services on and off campus) and wheelchair accessibility.

The Extended Opportunity Program is a State funded
program geared mainly toward low-income or minority students ,
unemployed or unemployable. Usually, Vietnam veterans and
those exoluded from college are involved. Those whose adjusted
income is $7,500 or less for a family of four qualify and are
provided concentrated counseling, peer advising and tutoring.

The most popular programs and, therefore impacted,
are the Airplane Mechanics, Hotel and Restaurant and Nursing
courses.

-29-



SAN FRANCISCO COMMUNITY COLLEQE DISTRICT (continued)

There is a need for space which will be alleviated
by the new downtown eight-storied campus at 4th and Mission
Streets and the rental of space in the old Sears building at
Army and Mission Streets. However, the library at City College
was built to accomodate 3,000 day students. There are now
16,000.

The Community College Centers, under Dr. Calvin
Dellefield, offer over 200 courses to 55,000 adults through
their seven centers. There are a variety of classes available.
Teaching English as a second language (ESL) is an important
facet of the centers. Special classes are offered for the
handicapped, senior citizens and persons seeking an elementary
or high BChool diploma.

The San Francisco Community College District should
be proud of its operations. Mr. Herbert Sussman, Chancellor,



Online LibraryCalifornia. Grand Jury (San Francisco)Civil Grand Jury reports (Volume 1976-77) → online text (page 15 of 32)