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HomeMy WebLinkAboutPACKET OCT 12 1999 (2)• PARTNERSHIP IN GOVERNANCE THE COUNCIL / ADMINISTRATION RELATIONSHIP 0 OCTOBER 199 1999 u PARTNERSHIP IN GOVERNANCE THE COUNCIL/ADMINISTRATION RELATIONSHIP OCTOBER 19, 1999 11:30 A.M. - 5:00 P.M. TEXAS ENERGY MUSEUM -UAW L CITY COUNCIL ADMINISTRATION David W. Moore, Mayor Stephen J. Bonczek, City Manager John K. Davis, Mayor Pro-Tem Lane Nichols, City Attorney Andrew P. Cokinos, At Large Barbara Liming, City Clerk Becky Ames, At Large Kyle Hayes, Exec. Assistant to the City Dr. Lulu Smith, Ward I Manager/Economic Development Dir. Guy Goodson, Ward II Maurine Gray, Community Services Dir. Bobbie J. Patterson, Ward IV Beverly Hodges, Finance Officer Glenda Lundy, Human Resources Dir. Kirby Richard, Central Services Dir. Tom Warner, Public Works John Labrie, Clean Community Dir. Ingrid Holmes, Health Dir. Luke Jackson, Parks & Recreation Dir. Tom Scofield, Police Chief Michel Bertrand, Fire Chief S.A. Webb, Water Utilities Dir. FACILITATORS Vicki Holloman Michael Clayton . Human Resources Manager President/CEO Mobil Oil Corporation Better Business Bureau O City of Beaumont, Texas Mission Working Together for a Better Beaumont Providing our community with quality service through courteous and dedicated employees Guiding Principles Integrity Doing the right thing all of the time Communication Sharing information with each other and those we serve Accountability Being responsible for our actions Respect Treating each other with dignity and valuing our diversity Empowerment Having the ability and commitment to act in the public interest "Creating value in p ublic service" PARTNERSHIP IN GOVERNANCE EVENTS Lunch Introduction - Mayor/Council Expectations Concepts of Consensus Building PRIMARY EVENT Partnership in Governance - The Council Administration Relationship Roles and Responsibilities Communication and Cooperation Sharing of Concerns and Solutions Implementation of a New Beginning SECONDARY EVENT Financial and Budgetary Challenges Reinventing, Rightsizing and Re-engineering Government - Ideas to reduce costs, generate revenue and increase service quality -Customer service and continuous quality improvement -Commitment to quality and value Financing Alternatives -User fees, reduction in service/staffing levels, use of fund balance, storm drainage utility fee, recycling, sale of landfill capacity, impact fees, termination or transfer of service responsibility 1 Revised 2001 Budget Presentation -Program/performance budget -Citizen involvement in budget process -2001 Budget calendar and review process Strategic Issues -2001 budgetary issues of significant impact Action Plan -Strategic directions - commitment to action FORMAT Dress: Casual or Business Attire Participants: Mayor/City Council, City Manager, Department Directors, Facilitator Invited Guests: Chairperson of each advisory board, Chamber of Commerce President, Union Presidents and news media 2 0 PARTNERSHIP IN GOVERNANCE MISSION This meeting is planned to provide a forum for the Mayor/City Council and Administration to develop a more effective relationship and achieve consensus on major fmancial/budgetary policy issues facing the community and then for Council to provide direction to the Administration. ROLE OF MAYOR AND COUNCIL The Mayor and Council will discuss issues of concem and bring the discussion to an agreed upon closure. This closure will provide the Administration with the basis for a positive and productive relationship with Council and operational direction in preparation of the FY2001 budget. ROLE OF ADMINISTRATION The City Manager and Department Directors are present for the purpose of providing the Mayor and Council with information when required, to clarify discussions and to participate in the dialogue as appropriate. � ROLE OF FACILITATOR(S) The facilitator(s)will provide a brief introduction on the issue resolution process, then direct discussion along the lines of the agenda stimulating participation from the Mayor, members of Council and the Administration while bringing discussion to closure. 3 PARTNERSHIP IN GOVERNANCE THE COUNCIL/ADMINISTRATION RELATIONSHIP As City Manager, I recognize that any success achieved in local government is dependent upon a positive working relationship with the elected body. In the role of employee, I am hesitant to offer you advice because of risks identified by Oscar Wilde-- "All advice is dangerous; good advice is fatal." Effective and productive Council/Administration relationships do not occur by accident. As in any good "marriage," they are nurtured and sustained through the conscious efforts of Council members and Administrators who: • Communicate openly and honestly to identify problems, discuss solutions, develop plans, resolve conflicts, and praise good work. • Value each other as individuals. • Conduct interactions in a professional and caring way. • Develop true partnerships in which all parties understand their roles and responsibilities. • Work diligently to establish and maintain professional trust and teamwork. This opportunity in a special meeting will assist Councilmembers and Administration in their continuous efforts to develop and sustain effective working relationships. Partnerships are based on the following assumptions: • Both the Councilmember and the City Manager are equally important in the equation. To quote an old cliche, it takes two to tango. And it takes both the Councilmember and the City Manager to operate effectively and productively in the Council/Manager form of government. • Relationships require continuous effort over time. Problems that occur will reoccur if not addressed because conflicts do not fade away. And everyone must stay engaged and involved if relationships are to remain effective and productive. 4 • Honesty is not more valuable than diplomacy and courtesy. Often "telling it like it is" actually is thinly disguised hostility or gamesmanship. Professionals pride themselves in their ability to say difficult things with grace and style and still make their points understood. One must never forget that business etiquette is always welcome in the public sector. • People must have information in order to accomplish goals, fulfill their roles and carry out their responsibilities. This means that everyone must share information without using a hidden agenda. Political gamesmainship eventually makes a loser out of even the most skilled player. • People are almost never tolerant enough and need to be reminded that different is not worse, just different. We often tend to believe that our position on the totem pole gives us the best view. Maybe, maybe not. But you can be sure that if we listen more, make fewer quick judgements, ask more questions, and stop assuming, we will fmd out how our particular point of view can be broadened. • Fishbowls are nice for fish, but lousy places to develop meaningful relationships. But that is where Councilmembers and Administrators "live." It comes with the territory. Rather than complain, we need to find constructive ways to cope with what can often be an uncomfortable situation. Councilmembers and Administrators face difficult decisions and situations in their service to the public. As society grows more complex and as problems are magnified, team work becomes critical to the effective functioning of local government. This part of the program is designed to help us as elected and appointed officials refine our abilities to work together effectively in the public interest. In the end, the way we work together affects our ability to meet the needs of the community-- and that should be the bottom line for any municipality. 5 SYMPTOMS OF A TROUBLED COUNCIL Citizens have been increasingly concerned about the negative changes they sense in local government, Council membership, attitudes and challenges presented to the Administration. Why do so many Councils seem to have difficulty focusing on issues rather than personalities, decisions rather than roadblocking or negativism rather than optimism? There are many Councils that exhibit these concerns because of an inappropriate attitude towards public service that uses personal gain in office, use of power and position and misunderstanding of the elected role and revenue issues. Whatever the causative factors for the increasing turmoil exhibited by some Councils, there remains obvious and clear trends that can be identified that allow Mayors, Councilmembers and Administrative Staff to function more effectively. The following are seven symptoms of a Council headed for trouble: 1. All the Council energy stays focused on one issue. 2. When Council minority views are consistently more effective in meetings than the majority. 0 3. When the Mayor or the City Manager becomes the only cure or reason for Council problems. 4. There is no clear annual goals and objectives or strategic plan or process for the City. 5. The Council bickering and conflict become more important than issues. 6. When Council integrity and values are compromised but not recognized. 7. When Council knows it all and the citizens are not consulted. It is important for the Mayor, Council and Administration to discuss and focus on effective measures and strategies to implement in order to perform the City charter responsibilities. The Charter direction for this government is to act responsibly and cooperatively on policy issues and take corrective actions when necessary to achieve consistent good government for the citizens. 6 CHARACTERISTICS OF AN EFFECTIVE TEAM 1. Clear Purpose. The vision, mission, goal or task of the team has been defined and is now accepted by everyone. There is an action plan. 2. Informality. The climate tends to be informal, comfortable and relaxed. There are no obvious tensions or signs of boredom. 3. Listening. The members use effective listening techniques such as questioning, paraphrasing and summarizing to get out ideas. 4. Civilized Disagreement. There is a disagreement, but the team is comfortable with this and shows no signs of avoiding, smoothing over or suppressing conflicts. 5. Consensus Decisions. For important decisions, the goal is substantial but not necessarily unanimous agreement through open discussion of everyone's ideas, avoidance of easy compromises. 6. Open Communication. Team members feel free to express their feelings on the tasks as well as on the group's operation. There are few hidden agendas. Communication takes place outside of meetings. 7. Clear Roles and Work Assignments. There are clear expectations about the roles played by each team member. When action is taken, clear assignments are made, accepted and carried out. Work is fairly distributed among team members. 8. Shared Leadership. While the team has a formal leader, leadership functions shift from time to time depending upon the circumstances, the needs of the group and the skills of the members. The formal leader models the appropriate behavior and helps establish positive norms. 9. External Relations. The team spends time developing key outside relationships, mobilizing resources and building credibility with important players in other parts of the organization. 10. Self-Assessment. Periodically, the team stops to examine how well it is functioning and what may be interfering with its effectiveness. 7 PARTNERSHIP IN GOVERNANCE COUNCIL EVALUATION In an effort to enhance the ability of the Council to function effectively as a team, a self- evaluation is provided on key responsibility areas for a legislative body. This essentially becomes an internal review by Councilmembers of your perceptions on how well you work together. The following Council evaluation form is provided from the ICMA Elected Officials Handbook I- Setting Goals for Action (third edition), for your consideration. The active involvement of the Mayor/Council and City Manager in the self-evaluation will enhance understanding and further the important political relationship that exists. The evaluation process can define those areas that may be an impediment to the Council functioning as a participative team. Political ambitions and factionalism among elected bodies can easily occur. This can hinder effective decision making and formulation of City policy. A difference of opinion.for whatever reason is certainly an important part of the democratic process. The key factor to be considered is that the Council makes decisions based on a honest perception of what is in the best interest of citizens from all segments of i the community. GOAL SETTING 1. Are established Council goals realistic within the time frame stated? Almost always Sometimes Never 2. Do Councilmembers participate sufficiently in implementing goals once they are established? Almost always Sometimes Never 3. Is the public adequately informed about Council goals? Almost always Sometimes Never 8 POLICY MAKING 1. Are Council positions and policies effectively communicated? Almost always Sometimes Never 2. Does the Council make hard choices and politically unpopular decisions when necessary? Almost always Sometimes Never BUDGETING 1. Does the Council clearly understand the City's financial resources and make sound decisions on prioritizing public spending? Almost always Sometimes Never 2. Is there adequate encouragement of broad public participation in the budgeting process? Almost always Sometimes Never o y 3. Does the Council avoid unbudgeted appropriations? Almost always Sometimes Never 4. Does the Council consider the budget"their budget" as opposed to thinking of it as the "staff's budget?" Almost always Sometimes Never COUNCIL MEETINGS 1. Does the Council encourage adequate public input at Council meetings? Almost always Sometimes Never 2. Does each Councilmember effectively participate in Council meetings? Almost always Sometimes Never 9 3. Does the staff have adequate opportunity for input before the Council makes decision on an issue? Almost always Sometimes Never 4. Is Council meeting time well utilized? Almost always Sometimes Never 5. Are there items discussed by the Council that should be more properly handled to allow for public and/or staff input? Almost always Sometimes Never 6. Are relevant facts and opinions expressed before decisions are made or Council position stated? Almost always Sometimes Never 7. Is direction given to staff clear and concise? Almost always Sometimes Never ADVISORY BOARDS AND COMMITTEES 1. Is there adequate public participation in board and/or committee member selection? Almost always Sometimes Never 2. Are board/committee members selected based upon ability to serve the community rather than personal friendships? Almost always Sometimes Never 3. Does the Council place sufficient emphasis on balancing board/committee membership in order to assure the total community is represented? Almost always Sometimes Never 4. Does Council give appropriate consideration to board/committee recommendations? Almost always Sometimes Never 10 RELATIONSHIPS WITH STAFF 1. Does the Council provide a reasonable time frame for staff to accomplish assignments? Almost always Sometimes Never 2. Does the Council take the impact on staff time into consideration when changing its priorities? Almost always Sometimes Never 3. Does the Council give adequate consideration to staff recommendations? Almost always Sometimes Never 4. Do Councilmembers use the established chain of command when dealing with administrative issues? Almost always Sometimes Never COUNCIL RELATIONSHIPS 1. Allowing for differences of philosophy or opinions on given issues, do Councilmembers respect one another's opinion? Almost always Sometimes Never 2. Does the Council function as a team? Almost always Sometimes Never 3. Do individual Councilmembers unduly consume Council meeting time? Almost always Sometimes Never 4. Do Councilmembers deal with issues openly? Almost always Sometimes Never 11 5. Do individual Councilmembers excessively politicize the public process? Almost always Sometimes Never 6. Do Councilmembers' attitudes and actions reflect a sense of public service rather than personal interest? Almost always Sometimes Never RELATIONSHIP WITH THE CITY MANAGER 1. Is the relationship between Councilmembers and the City Manager open and honest? Almost always Sometimes Never 2. Does the Council function as a unit in giving direction to the City Manager? Almost always Sometimes Never 3. Is there mutual respect between the Council and City Manager? Almost always Sometimes Never 4. Is there adequate opportunity for the City Manager to offer input into the decision- making process? Almost always Sometimes Never 12 Council and Staff • Have Different Needs By Cole Hendrix e have all heard or used the term way is for the senior staff and councilmembers to explain their expectations of each other. While that appears to be easy,it often does not happen for several reasons: "public servant," but I expect few 1. It is awkward to do so. of us have examined what that term means 2. Expectations are not always easy to verbalize. 3. It is a difficult process to initiate from either side. 4. Many councilmembers are not used to this type of as it applies to people in public service. dialogue with staff and do not feel comfortable with it. Let's consider it in the context of the rela- 5. politics often get in the way of good communication with staff. tionship between a municipal staff member 6. Not all parties can agree on the need. neilmember, both of whom must Both groups want to be successful in their roles. and a cou Staffers want to do a good job,and when they fully under- ; stand the expectations of the councilmembers for whom work together to fulfill their roles as public they work, they can meet most of them. Working with unspoken and unknown expectations,however,can be dif- ficult.ficult. There are many more expectations of staffers by councilmembers than there are expectations of coun- The staffer is both a servant of the general public and of cilmembers by staffers. Numbers, however, should not the councilmember.The staffer's role is literally to serve the impede the communication process. We can start the dia- city,the organization,the council, and the public.The coup- logue by listing some of the expectations that we perceive cilmember is a public servant because he/she is elected by to be important to both groups. the citizens to serve the common good.An important respon- sibility of any staffer is to support councilmembers in this EX(1 @Ctat10(1S Of COtIncil for Staff public servant role. 1. Do not speak,write,or act in a way to cause public In order for councilmembers to be successful, they need embarrassment to elected officials. staff help that comes with a broad set of expectations. 2. Be non-political in the partisan sense. Likewise, the staff has certain expectations of members of 3. Help make the council's job easier. the council.Many times these expectations are unwritten and 4. Give councilmembers accurate and current data. unspoken and therefore not well communicated.Therein lies 5. Leave personal bias out of reports; arguments a problem that can manifest itself in some public embarrass- should stand on their merit. ment or chastising that makes both parties look foolish in the 6, provide guidance when requested to do so, and be eyes of the citizens. sure it is unbiased. 7. Provide short,well-written reports. The result is two or more angry parties who are not com- g, provide several options when suggesting possible municating well.How do we avoid the staff vs.council pub- solutions to a problem. lic controversy and improve the relationship? The simplest 9, Present requested information in a timely manner. 13 10. Show councilmembers how to avoid known pitfalls 3. Examine all the facts on a given issue and make the of recurring issues. best possible decision. 11. Be accessible to councilmembers. 4. Give criticism privately when it is appropriate. 12. Be respectful regardless of how you feel personally. 5. Give public thanks and praise when and where it is 13. Keep all councilmembers equally informed. Do not appropriate. show favoritism toward one or more councilmem- 6. If you make a decision based on politics, somehow bers. help the staff to understand that fact. 14. Provide historical continuity where appropriate. If both groups can communicate about these issues,there While staffers have a major responsibility to the city, should be few staff-council problems. Someone needs to they also have a significant role in serving the council. A initiate the process, and ideally it should be the manager wise staffer always will try to help councilmembers look 's or, better yet, the mayor.The important thing, however, is good in the public eye as long as it does not require uneth- that the communication process gets started. It may take ical or illegal behavior to do so. The public is best served the form of an agenda item on a council retreat or an infor- when the staff and council are working together to resolves mal discussion after a regularly scheduled council meet- problems and issues. Staffers who willingly help their 's ing. It should not be in the form of a report from staff to bosses look good begin to build the trust that is so neces- the council. This topic requires two-way, face-to-face sary for the two to work together effectively. ': communication. Expectations of staff for council Your city will be a better place if any council-staff expec- t tation problems are solved early in a new administration. Staff members often have a few expectations of coun- cilmembers,but each one is very important. Cole Hendrix served as city manager for Charlottesville, Virginia from 1971 until 1995.He is president of community 1. Be fair in your dealings with staff. Do not assume relations for the University of Virginia's Health Science automatically that staff is wrong and a citizen is Center. right when there is a disagreement. 2. Read the material the staff has prepared. Ask € This article is a reprint with permission from Virginia questions. Town & City,July 1996. # 14 Checklist Warning Signs and Strategies: When the C-M Relationship is in Trouble he literature on elected and appointed officials'effec- 0 Elected officials stop talking when the appointed official tiveness is sprinkled with anecdotes about chief enters the room. appointed officials who thought that everything about 0 The council begins to conduct meetings off-site without their performance and their relationship with elected officials the appointed official. was fine,until they had a performance review.These individ- uals were completely caught by surprise and shocked to learn Dissent within the council.When councilmembers do not that things were less than ideal. work well together,the community and the chief appointed Some first learned that the relationship was failing at official feel the impact.Among the warning signs: public meetings when their performance was an agenda item. Others found out about performance problems after they 0 The council does not speak with one voice,thereby caus- returned from a vacation or from being away on business for ing confusion among the professional staff about policy a few days.While such surprises may not occur often,they do direction,and priorities. occur on occasion.To diminish the surprise factor,both 0 Councils begin to resist making the hard decisions elected and appointed officials have identified warning signs because a high level of frustration has come to character- that indicate when the relationship between the two parties is ize their working relationships. in trouble. Performance reviews.It is hard for appointed officials to Take Heed assess their own performance levels unless they have perfor- Below are checklists of some of these warning signs and some mance reviews.Appointed officials should be cautious if the strategies to use to improve council-manager relationships. council or board does not formally review their performance. This information is not all-inclusive,but the submissions Among the warning signs: came to ICMA directly from local government officials.Both U official a elected and appointed officials probably have noted other The council does not want to give the appointed o ffi performance review. warning signs and developed other coping strategies.When reviewing these checklists,think about your own situation. The appointed official does not want to receive a perfor- Also,begin to think about how you can develop strategies to mance review. overcome problems. Program service and/or delivery.Sometimes,trouble brews Information flow.Information flow is vital. Information over how services and programs are designed,delivered,and should be clear,consistent,and available to the chief evalua_ed via the budget and other processes.Among the appointed official and all elected officials(also referred to warning signs: here as the council or councilmembers).Among the warning ❑councilmembers are not satisfied with department direc- signs: tors,and this situation remains unresolved.In such cases, ❑Communication stops:elected and appointed officials the appointed official is the one who is held accountable. stop calling or talking to each other. 0 The appointed official does not have a clearly defined per- El Elected and appointed officials are not spending enough formance measurement process by which to judge pro- time together. gram success. ❑The appointed official begins to hear the statement ❑Appointed or elected officials complain that the other "Everything will be okay in the future" party is not keeping them informed. 0 Neither elected nor appointed officials feel that they are 0 The council says,"The appointed officials can always find getting the information they need. the money." 0 Some elected officials are getting information that others Loss of confidence.If both parties do not have confidence in are not getting. each other's abilities,they can accomplish very little.Among Interpersonal communications.Healthy interpersonal com- the warning signs: munication is the backbone of a good relationship.Among the warning signs: El The council begins to meet in small groups. ❑There is a lack of trust between the elected and appointed 0 The appointed official and professional staff find them- officials. selves badmouthing councilmembers,and vice versa. 0 The council is not accepting the appointed official's 0 Appointed and elected officials do not make eye contact recommendations. with each other. 0 Councilmembers stop defending the appointed official 0 t.ppointed and elected officials do not say hello to each and professional staff in the face of criticism. other. 0 Councilmembers openly and publicly(and on more than 15 one occasion)criticize the appointed official during a review process difficult because all contact must be public. public meeting or in the press,and vice versa. In other communities,elected officials can deal with per- sonnel issues privately.While performance reviews—private Take Steps or public—are not easy,they are the appointed official's pro- Listed in this section are strategies that you can try to tection against surprises and a way to turn around any diffi- improve the relationship between elected and appointed offi- culties. cials.Like the list above,this one is not comprehensive,and you may already have your own strategies for improvement. O Ask the council to assess your performance on a regular basis. Information flow.These techniques may help local govern- El Conduct 360-degree(i.e.,multirater) reviews. ment officials enhance the flow of information.Although a Agree on an evaluation format that also gives feedback to few of these suggestions seem to be written specifically for elected officials. only one type of local government official,they should be read more broadly to apply to both elected and appointed Program service and/or delivery.These approaches pertain officials. Improving the information flow also should help to working collaboratively to design policy and develop the reduce dissent on the council. means to implement it. ❑ Learn about how others prefer to communicate,and ❑Engage in strategic and advanced planning.Plans will shape your messages accordingly.For example,some become the vehicles for evaluating the performances of people prefer to hear facts and details first,the big picture elected and appointed officials in achieving community second;others prefer the opposite. goals. ❑ Do not replace personal contact with technology. ❑Structure processes so that the council or board focuses ❑ Keep the communication lines open:make time for one- on the big-picture policy items and not on the day-to-day on-one meetings between the appointed official and each operations.One way to do this is through the budget pro- councilmember(if allowed by law);go out to lunch cess:highlight the important things so that councilmem- together;evaluate each other's performance and that of bens can focus on them. the community. ❑Connect with community groups:schools,religious insti- ❑Contact each councilmember every day. tutions,and service organizations. ❑Conduct periodic retreats. Use these opportunities to dis- 0 Develop a method to educate newly elected and appointed cuss information flow and to make sure that all parties are officials about the complexities of governing in the com- satisfied. munity. 0 Do not use a lot of jargon when you communicate. 0 Make certain that all elected and appointed officials ❑Try to give the right amount of information at the right understand administrative procedures and processes. time. ❑ Discuss what kind of information the other party would Loss of confidence.Many officials report that it is difficult to like to receive,in terms,e.g.,of format and level of detail. repair a relationship when there is a loss of confidence.Here are strategies that address this issue. Interpersonal communication.Here are approaches that will help you build and maintain healthy relationships.A number ❑ Be honest with each other.If there is a problem,discuss it: of them involve getting to know individuals.A word of cau- ❑Work collaboratively to repaii a broken relationship. tion about this:not everyone should become a best friend.By ❑ Involve a neutral third party to help you repair a broken appreciating what is important to individuals and under- relationship. standing their perspectives,you will be able to improve your communications as well as your work relationships. Comprehensive lists of warning signs and strategies for improvement are included in a new,self-paced workbook ❑Get to know the elected and appointed officials:their published jointly by ICMA and the National League of Cities interests,children,hobbies,etc. called Working Together.A Guide for Elected and Appointed ❑Try to understand the elected and appointed officials' Officials.Users will want to sit down and read this workbook roles from their own perspectives. with a pencil in hand. ❑Analyze the situation;replay in your mind both the posi- The workbook includes numerous questions to consider, tive and the negative interactions to determine how you along with self-assessments,checklists,and activities designed can improve your relations. to assess current relationships and to make necessary improve- C] Maintain a sense of humor. ments.It also includes an action plan to record ideas to try. The final chapter includes a wide variety of team activities to Performance reviews.Elected and appointed officials should use during retreats,work sessions,and other group training look for ways to assess the appointed official's progress.This sessions. assessment will require communities to have clear goals and To order this workbook(item number 42442),visit objectives,which can form the bases of the performance ICMA's on-line bookstore at http://bookstore.icma.org;or review. In some communities,open-meeting laws make the call 800/745-8780. 16 City Council Relationships: Building a Foundation for Collaborative Governance Mary Thompson, Corder/Thompson& Associates Trouble in River City The City Manager of fast-growing River City, Texas has been asked by the City Council to make city government effectiveness his number-one priority. Voters in the recent election made clear their anger over politics and bureaucracy getting in the way of service to the citizens. In his initiative to make city government decision making more collaborative and effective, the City Manager faces one key obstacle: the seven City Council members themselves. Bill, who dwells on the details on each policy issue, is constantly at odds with John, a risk-taker who thrives on taking action. Ruth's abrupt communication style tends to discourage the input of Lynn, who would rather work things out behind Ruth's back This might be tolerable if Ruth didn't suspect that Lynn was after her Mayor Pro Tem position. Pete, who recently won a Council seat by campaigning against the incompetence of the current Council is viewed with suspicion by everyone. Each council member competes for influence (and undermines the City Manager) by contacting the manager's staff directly with complaints and requests. The Solution: A Forum to Address Working Relationships Many city managers know that the key to making city government more collaborative is to start with the city council. "If the council is not comfortable with their differences and styles, they'll tend to have a win/lose approach to dealing with issues," says Jim Baugh, City Manager of Desoto. "Council members who can see each other as people first and respect their differences are the ones best able to find the compromises." A council's ability to work together effectively can establish a strong foundation for collaborative initiatives throughout the city organization, among other government entities, and with key community groups. Because the city council represents the diverse views of a community, council members have a unique opportunity to set the tone for citywide discussion, debate and decision-making. 17 Bob Herchert, former City Manager of Fort Worth and consultant to municipal governments, suggests that council retreats can provide the time, structure, and setting to get council relationships on track. "Council members are on a roller coaster- it's easy to get bogged down in the daily issues of potholes and zoning. They need the time to stop and look at the larger issue of how they work together." Although council retreats often address a variety of topics such as strategic planning and staff reports, Texas city managers are increasingly devoting part- or all - of the retreat to building more collaborative working relationships. Creating the Agenda How can the agenda be structured to make sure the council gets to tackle the most important issues regarding working relationships? Following are key topics to consider in designing a retreat: Communication and decision-making styles. One of the major obstacles to effective working relationships is the misunderstanding and tension that arises from different working styles. A council member who is action-oriented is likely to get into conflict with a council member who needs to carefully investigate the specifics of each proposal. A structured exercise or inventory can serve as a catalyst for council members to begin to address, and even value, differences in working styles. Guidelines for effective working relationships among council members. Council members who can work together to identify obstacles to effective working relationships and then agree on strategies for collaboration are more likely to function effectively even during times of community conflict, crisis or political turmoil. The most important discussion can be a candid exchange of what behaviors get in the way of effective working relationships. Once these issues are on the table, the council can then develop a set of priority goals for working relationships (examples might include trust, respect, open and direct communication, ethical behavior, etc.) Once the goals are agreed upon, the council can work together to develop, and commit to, specific guidelines to support the priority goals. Strategies for effective council/staff relationships. Many city managers bring key staff people to observe and even to participate in council retreats. Some managers hold retreats specifically designed for staff-council relationships. In many cases, a simple 18 question can lead to a candid exchange between a council and staff about both problems and solutions: What does the city manager need from council members in order to do his or her job? What do the council members need from staff in order to effectively do their jobs? What are the characteristics of effective working relationships between council and staff? To maintain focus on council/staff communication in Cedar Park, City Manager Don Bickner includes all city department heads in two of the four annual council retreats. Skills for collaborative problem solving. A presentation on collaborative problem solving or interest-based negotiation is often a step toward more effective relationships. DeSoto's City Manager Baugh suggests, "The most effective council members are the ones who have the skills to say, `Although this issue is not important to me, I can see it is important to you; let's find a way to address it.' " In order to master this type of approach to problem solving, the group might learn about and practice such skills as listening, questioning, and identifying interests. Participants may also learn a collaborative problem-solving process which they can then practice later in the retreat as they develop an agreement on working relationships. Factors for Success What is the key to a successful retreat to address working relationships? "Get council members' commitment to set aside a significant portion of time - to put aside their cell phones and agree to really be present." says Bob Herchert. Cedar Park City Manager Don Bickner agrees: "It is essential to get a genuine commitment to participate from each council member." Birkner addresses this issue by planning all council meetings, workshops and four annual council retreats a year in advance. College Station Mayor Lynn McIlhaney suggests making sure the retreat meets everyone's needs through initially gathering information on council members' expectations, or even working with a planning committee of the city manager, mayor, and another council member. How important is having a neutral facilitator? "On a scale of one to ten, a ten." says Desoto Council Member Gil Saulter. "A facilitator is essential to make sure that everyone can candidly share opinions. This also frees up the city manager, mayor or other council members to fully jump into the discussion and not have to worry about 19 40 managing the conversation." Participants need an environment which will help them focus on working relationships and getting to know each other. "Take the group out of town," suggests City Manager . Jim Baugh. "Council members and even city staff need to be separated mentally as well as physically from the day-to-day issues that distract them from looking at the big picture." "Create opportunities for people to interact informally in pairs or small groups," suggests Council Member Saulter. "For a city manager to find a few minutes to have a cup of coffee with one or two council members provides an invaluable chance to begin to know colleagues as individuals." What happens after the retreat? "The retreat is just the starting point; what makes it successful is the follow through," says Mayor Mcllhaney. By writing up their plan for how to work together, a council then has a working document to help maintain focus on their relationships and for re-evaluating the group's effectiveness. The College Station Council and staff have implemented their discussions from previous retreats through the development of a Council Relations Manual, which includes agreed-upon standards of how council members will treat each other, interact with staff, and interact with the media. The manual is also available to the public. Finally, Herchert suggests that city managers themselves should have reasonable expectations for this type of council retreat: "You may not hit a home run the first time, but don't be discouraged; use each retreat to get the group's input on how to make the next one even more successful." This article is part of a series on collaborative processes for municipal government. Judy Corder and Mary Thompson, Corder/Thompson& Associates, Austin, specialize in collaborative approaches to dispute resolution, planning and policy development. For more information or to suggest future topics, contact Judy Corder at (512)458-4427 or e-mail jkcorder @flash.net 20 C I T Y / C O U N T Y M A N A G E M E N T A. Ys.a ou say wart n an evo u to Their hostile beginnings are legendary, but elected and appointed officials are turning steadily from combativeness to communication and, ultimately, to cooperation. By Paul Kane couple of years ago, Dave Mora had made his choice. Did he served as Salinas' city manager for Mora needed a police chief. hire right away? Not a chance. Not nine years. "When I first started in As city manager for Salinas, before he had arranged for the top cop this business (in 1974), that wasn't Calif., home to 130,000 people, Mora candidate to meet individually with done." had all the responsibility and power to the mayor and each of the six city It still is not done in some commu- make the decision. council members. nities, where friction between elected After reviewing numerous resumes "I made sure the council was part of and appointed officials is a tradition and conducting dozens of interviews, the process," says Mora, who has that perseveres. Other communities, 21 Intense partisanship often leads to chronic strain between councils and managers. Without unity on the council, the manager is forced to try to please two, three or more factions. however, have overcome the histori- Regardless of their origin, divisions council's preparation of a "vision cal conflicts and proven to be models in the council-manager relationship statement." Called the "Lynchburg of council-manager (or commission- can limit accomplishment in all areas City Council Governance Model and manager)cooperation. of the community.To overcome those Guidance System," the model details divisions, the manager must team to the council's expectations for Church MOST ARE IN GOOD SHAPE communicate with the council so and his administration. "Having a By and large, council-manager rela- vision and a common understand- tionships are mutually benefi= Y,�-- ing of what we want the community cial, says Jim Svara, politi- to look like is a unifying thing," cal science professor at `3F Church says. North Carolina State ✓ " Lynchburg's council has seven University in Raleigh. Svara �"" members (four elected from geo- has studied local governments: ' graphic wards, and three elected for 15 years,and, in four stud- "' £ at large) who are elected in odd ies of managers and council years. Following each election, members, he has found that Church meets with the new most participants report stable council, and each participant levels of interaction within Y outlines his 20-year vision for - their communities. the city. -:° However, with 2,900 council- 2". Each member of the group manager governments nation- offers his or her input, and wide, there are many reasons why the consensus is recorded some of those relationships break graphically, in a triangle. down. According to Svara, cities (See the table on page 30). and counties with chronically The model ensures that strained relations between their everyone is working on the managers and councils usually have same page, Church says. something in common: an intensely The council members and partisan council. Without unity on manager know the city's the council, the manager is forced to goals; the manager and try to please two, three or more fac- his staff know their roles tions,he explains. in achieving the goals; Of course, the manager often can and everyone knows be blamed for disharmony. In his most the values to be em- memorable mistake, Mora — then ployed in reaching those manager of Los Gatos, Calif. -- goals. Furthermore, to be successful, turned a practical decision into a the model requires regular communi- bureaucratic one, prompting cation between all parties, Church objections from the public and, in that the council, in turn, can provide says. turn, the council. meaningful assistance in planning and It happened when Los Gatos resi- goal-setting, and in building and TAKING STOCK dents requested -w a four-way stop maintaining project support. While joint creation of a mission When the request was made, Mora statement can open communication instructed the public works depart- WORKING ON THE SAME PAGE early in the council-manager relation- ment to conduct an engineering Lynchburg, Va., is one of the oldest ship, regular reviews can help ensure study, the results of which showed council-manager cities, and it has a that the door stays open. It also can that there was not sufficient traffic to history of solid relationships between help all parties stay on course, and it warrant a stop sign. Based on those its elected and appointed officials. presents an opportunity for group results, Mora denied the installation. Since adopting the council-manager members to evaluate their effective- "I gave them a traditional bureaucrat- form of government in 1923, the city ness in working together. is response," he recalls, and an uproar has had only six managers. George Caravalho has been city ensued. The rookie manager soon As city manager for the last eight manager for Santa Clarita, Calif., realized that, if the community wants years, Charles Church has carried on since 1988 (the city was incorporated a stop sign, it should get one. that tradition, participating in the in 1987). He believes that the annual 22 review process is critical in getting feedback from the council and in rec- ognizing where staff resources can best be used each year. However, getting candid feedback can be difficult. In order for a review to be useful,council members must be frank in their assessments, regardless of whether they are offering criticism or praise. "That is not something many council members like to do," Caravalho notes. To make it easier for council mem- bers to be candid in their remarks, Santa Clarita hires a consultant to assist in the council-manager review process. (The city pays $3,000- $5,000 per year for the service.) The consultant meets individually with Caravalho and each of the five coun- tcil members, allowing for free discus- sion of the manager's work and that of the council members. The consultant produces a detailed report that the council reviews in a closed-door meeting. Caravalho Mutual trust and confidence are at the core of the productive council-manager relationship. attends the meeting to view the report and to receive feedback from the council. "All I do is take notes. Some- times I don't talk for an hour," he says. In the end, the council uses the third-party review and subsequent dis- cussion as the basis for Caravalho's performance review, but the process has other significant benefits. For example, Caravalho says it provides him with insight into the needs and expectations of each council member, giving him the means to forestall the mistrust that plagues some council- manager relationships. "At the core of what you're talking about is trust and confidence," he says. Finally, all par- ties get a third-party assessment of 23 Mission-statements, independent reviews, one-on-one meetings, e-mail and automated access to 'outcomes' data are proving successful in strengthening communication. their performance as a group, and that the council by issuing a bi-weekly that the strategies for their success information has proven invaluable in "Manager's Bulletin Board," a written often can be simple.-.For example, goal-setting and planning. summary of the top 10 or 15 things Svara notes that councils and man- happening in Glendale. (Vanacour agers commonly participate in year- INCLUDING AND UPDATING says the bulletin may include project end retreats as an exercise in team- The sort of communication exhibit- updates or announcements of commu- building, using that time to look back ed in Lynchburg and Santa Clarita— nity achievements — e.g., students and to look ahead. characterized by inclusion,exchange Additionally, technology provides and feedback — is equally impor- numerous ways for councils and tant when councils and managers are +rte managers to enhance their faced with the unforeseen. Popula- �1 � g��,� >� interaction. In Lynchburg, tions and community needs are for instance,Church uses e-mail changing at a rapid pace, and open for daily contact with council communication is imperative if members, and his office main- councils and managers are to meet "' tains the city's web site. the demands. ?Y y ' But Church notes that his In 1970, when Marty Vanacour F most useful technological tool is was assistant city manager for computer program that tracks Glendale, Ariz., his community ' residents' complaints by district. was a small suburb of Phoenix. Council members can log onto Since then, Glendale's population their computers at any time and has grown from 30,000 to more ^`' learn the nature of their con- than 200,000, placing it 100th stituents' complaints, as well as among the nation's largest cities. the city's responses to those Additionally, census data shows complaints. that the Phoenix metropolitan Like Lynchburg, Glendale uses area has 2.8 million people,com- a computer program ti track its pared to 1.6 million in 1980. customer service, and the city "I've seen some really dynamic ;� council has automated access to changes," says Vanacour, who that data. The same program tracks has served as Glendale's manag- crime by district, giving council er since 1984. members the information they need With so much change, to suggest how, where and when to Vanacour's job — including assign police patrols. his interaction with the coun- Providing information is, of cil — has expanded. He plays an course, the bulk of the manager's assisting role in policy-making; the winning awards.) "I just try to give role in the council-manager relation- council is involved with his office on them little tidbits every other week," ship. And it often falls to the manager a day-to-day basis; and, together, they he says. to find avenues of communication are representing Glendale on a grow- Additionally, realizing that council that work for everyone involved. ing number of regional issues. "In members are covered up with paper- Therefore, as the council-manager some cases, borders don't mean any- work, Vanacour uses colored paper to relationship continues to evolve, so thing," Vanacour says. "So goes announce correspondence from his must managers' approaches to Phoenix,so goes the entire region. office. That procedure allows the strengthening that relationship. "The line between manager and members to cut through stacks of Industry conferences are one of the council needs to be flexible," he adds. paper and identify the manager's best resources for getting new ideas, "They always wanted to know what memos and bulletins immediately. Vanacour says. Managers should talk was happening; now they want to "They know it's coming from me," to other managers and exchange war know why it's happening." Vanacour explains. stories and success stories. "If you just To keep the council up to date, come away with one idea, that makes Vanacour has weekly, one-on-one OPENING NEW AVENUES a difference,"he says. meetings with the members, as well as While the council-manager rela- quarterly lunch or dinner meetings tionship can be complicated, Vana- Paul Kane is a Washington, D.C.- with the group. He also connects with tour's use of colored paper suggests based freelance writer. 9 it S PARTNERSHIP IN GOVERNANCE FINANCIAL AND BUDGETARY CHALLENGES Reinventing and Re-engineering for the Next Millennium In order to meet the increasing challenges of reduced or limited funding and increased citizen expectations for service, the City must explore ideas to reduce cost, generate revenue and increase service quality. It is important to match the taxes and fees that the public is willing to pay with the cost of services that the public demands. When a City government is involved in "rightsizing" a service cost that means having the right number of people with the right kind of skills and training, the right amount of supplies and just the right amount of physical plant and equipment to provide service properly. "If you downsize,you're cutting costs but you're not fixing fundamental problems." -W. Edwards Deming Reinventing government is a process of changing the fundamental way government operates. This process is comprised of the following 10 principles: 1. Catalytic Government: Steering Rather Thank Rowing 2. Community-Owned Government: Empowerment Rather Than Serving 3. Competitive Government: Injecting Competition Into Service Delivery 4. Mission-Driven Government: Transforming Rule-Driven Organizations 5. Results-Oriented Government: Funding Outcomes, Not Inputs 6. Enterprising Government: Meeting the Needs of the Customer, Not the Bureaucracy 7. Enterprising Government: Earning Rather Than Spending 8. Anticipatory Government: Prevention Rather Than Cure 9. Decentralized Government: From Hierarchy to Participation and Teamwork 10. Market Oriented Government: Leveraging Change Through the Market 25 The concept of re-engineering extends beyond the basic improvement of an existing process. It means fundamentally changing an existing process or eliminating it totally. Therefore, reinventing and re-engineering are two approaches that are compatible and necessary if significant changes are to be made to provide the most efficient and cost effective services to our customers. A reinventing/re-engineering process provides the Mayor and Council various policy options: Provide services differently or at a different service level Raise revenue (fees and/or taxes) Ask for understanding for the decayed City and reduced service levels The use of reinventing/re-engineering provides significant cost savings for the long-term financial stability of the City by: Determining services to be eliminated Identifying subsidies to be discontinued Determining appropriate service levels focusing the organization on mission, engendering an entrepreneurial spirit throughout the organization The reinventing/re-engineering process involves important activities to establish a proper environment to realize cost savings and service quality enhancement. COMPETITIVE GOVERNMENT INJECTING COMPETITION INTO SERVICE DELIVERY Most obvious advantage of competition is greater efficiency or more bang for the buck. Competition forces public or private monopolies to respond to the needs of their customers. Competition rewards innovation; monopoly stifles it. Competition boosts the pride and morale of public employees. Competition must be carefully structured and managed, if it is to work...unregulated markets generate inequity. 26 PRIVATIZATION TECHNIQUES Service Shedding. A form of total privatization in which government stops providing a service entirely. Contracting Out. The City contracts with a private organization, for profit or nonprofit, to provide a service. Public-Private Competition. Public in-house units compete against private firms to provide a public service. Franchise. A private firm is given the exclusive right to provide a service within a certain geographical area for a limited time. Vouchers. Government provides individuals with certificates redeemable for purchase of a good or service on the open market. Subsidy. The producer of the service is subsidized by the government contributing financially or in-kind to a private organization to reduce the cost of private provision of service to consumers. Internal Markets. Government departments are free to purchase services from either the private sector or internal support units. Asset Sale or Lease. Government sells assets such as airports, utilities or real estate to private firms, thus turning physical capital into financial capital. Volunteers. Volunteers are used to provide all or part of a government service. Self-Help. Community groups and neighborhood organizations take over a service or government asset such as a local park. Private Infrastructure Development. The private sector builds, finances and/or operates infrastructure such as roads and airports, recovering costs through user charges. Deregulation. Government regulations are eliminated to allow private providers to compete against a government provider; for example, allowing firms to compete with the U.S. Postal Service. 27 THE CORE CONCEPT Does the activity fit the organization's strategic plan? Does the activity produce more value for the customer than it consumes in resources? If not, why is the organization doing this? Crucial to all downsizing or rightsizing efforts is deciding on what the organization does well. Rational resource allocation simply means putting scarce resources to good use. Government activity should produce more value than it consumes. "Unless we change our direction, we are likely to end up where we are headed." - Old Chinese Proverb The following are critical activities to support the reinventing/re-engineering process: Create a mission and shared vision of the community and organization. Embrace the primary values of the organization. Mayor/Council sets strategic goals and objectives. Mayor/Council sets priorities and eliminates programs that do not support the mission of the City. An effort is made to reduce organizational layers as part of streamlining the administration. All non-essential work that does not provide value to the customer is eliminated through improving work processes. Implement a quality improvement/customer service perspective. Emphasize performance measures for all services areas. Explore alternative service delivery approaches. Create meaningful opportunities for citizen involvement. Communicate the results of the process to the organization employees and community. Celebrate the success achieved! 28 ORGANIZATION GUIDELINES Is it the right thing for the community or organization? Is it the right thing for the department? Is it ethical and legal? Is it something you are willing to be accountable for? Is it consistent with the organization values and policies? When the answers to all of the above questions are yes, the guidelines state "just do it" and don't bother asking for permission or forming a committee to decide. That is the sort of policy manual that encourages employees to think; and when employees think, they can come up with flexible, creative solutions and services for their customers. The funding strategies to be utilized in reinventing/re-engineering focus on the following areas: Preserve and enhance the capital improvements program and planning iprocess. Commit to not substituting City funding for reductions in state or federal funding programs. Reduce personnel positions by attrition when feasible by managing vacancies through a hiring freeze. Identify best practices through benchmarking - search for best practices that will lead to aggressive internal goal setting and ultimately improved performance; best practices are compiled and become the standard against which the local government compares itself. Survey citizens to understand demands and expectations for service - use surveys to understand the level of service citizens expect from their local government. Emphasize user fees as opposed to increase in taxes. Maintain a reasonable fund balance reserve. Develo p P roductivi ty initiatives and gain-sharing with departments that are successful in reducing costs while maintaining or increasing service quality. 29 Initiate a trust fund to encourage and facilitate private sector donation. Institute an aggressive program to procure federal/state grants to address identified priorities to the City. "The only person who likes change is a wet baby." -Roy Z.M.Blitzer There are other important aspects to reinventing/re-engineering that Mayor and Council need to consider prior to a major commitment. To be successful, long-term financial forecasting and planning is essential. However, unexpected and unpredictable events can and will occur to impact any forecast no matter how well prepared. The Mayor, City Council and Administration need to commit to the process and its potential outcome. Reinventing/re-engineering can't be accomplished in one or two years. It is a long-term commitment and a basic rethinking of the fundamental mission on how government provides service. It is important to solicit community understandmi g and involvement as the process proceeds into reducing or eliminating programs and reviewing fees for services. A commitment must be made to enhance volunteer programs and public/private partnerships in order to maintain existing levels of priority services. There is a need to renew commitments for education and training by examining the type of training necessary to lead and change the organization. Sufficient time must be spent on communicating openly through focus groups, staff meetings, public forums, citizen newsletters and other strategic sources of information that can be identified. "There is nothing more difficult to take in hand, more perilous to conduct... than to take the lead in the introduction of a new order of things." -Niccolo Machiavelli,"The Prince" 30 IDEAS THAT SAVE COSTS AND INCREASE REVENUE/SERVICE QUALITY Mayor/Council and Administrative Staff are agents of change. Change requires a driving force and the most powerful change agent is financial stress. The City of Beaumont must make major changes in the operation of government if financial stability and quality services are to be continued. The City should sell assets - land, buildings, equipment to the extent possible in order to turn dormant physical capital into financial capital and produce tax benefits. Privatization of public services should be considered through a competitive process with City employees when contracting provides a clear advantage on cost savings and service quality. While the private sector can be an effective agent for delivering public services, the responsibility for providing services - determining the scope, level and conditions under which they are delivered remains with City officials committed to the public interest. Management improvement efforts many times focus on how to do unimportant things cheaper. Instead, City leaders should ask - "should we be doing this at all?" City government should limit activities to core functions and missions. Does the City activity/service provide more value for the customer than it consumes in resources? Is the service essential? Is the private sector already providing the service or if not, is it capable of doing so better than government? Does the program displace voluntary community or neighborhood networks? This approach must be applied to all service areas with the intent to eliminate activities that don't meet the criteria. Utilize the state funded Selective Traffic Enforcement Program (STEP) to generate more fine revenue from citations while increasing safety on city roads. Solicit ideas from the Municipal Court Judges on saving operating costs and generating additional revenue from the judicial system. Staff is currently reviewing alternative methods for leasing phone lines which service twenty-three key systems and the standard phones. Southwestern Bell's Plexar system would allow the city to reduce the number of phone lines leased. SWB would provide PBX type services thus reducing the number of lines used by the non-switched systems. Savings of at least $2,000 per month may be achieved. Also, other firths have entered the market for local phone service. In preliminary conversations with these firms, the City may be able to obtain even greater savings in lease line costs. Additional research is required prior to a recommendation to Council. 31 The City Council and City Manager meet quarterly with the Beaumont Independent School District to discuss common issues and priorities. The Council and Manager also meet quarterly with the Chamber of Commerce and all Beaumont governmental entities for the same reason. Programs, services and taxpayer facilities should be identified for possible better coordination and use. For example, the City and BISD could utilize joint facilities for recreational purposes. Investigate the potential cost savings through bi-monthly or postcard utility billing. An analysis will be made on postage savings in comparison to lost investment earnings. Also, a postcard eliminates the ability to enclose other information in the billing envelope. f 32 REVISED 2001 BUDGET PRESENTATION The FY2001 bud g et process will focus on creating a program/performance based budget with extensive citizen involvement. The following information provides more details on this approach. Program Budgeting What is a program budget? • A budget format in which all proposed expenditures are grouped according to "objects" or cost centers. In most local government budgets, the "programs" are department-specific. For example, the Human Resources Department may include these program categories for budgeting purposes: Personnel, Benefits and Worker's Compensation. • The use of program budgeting focuses on the outputs and outcomes of programs. Once a program format is established performance measurement may be more readily analyzed and reported. Performance Measurement Why would a government use performance measurement? • To provide to its citizens, through the budget document, a means to measure its performance. What are some of the measures or indicators used? • Input • Demand • Output • Efficiency • Outcome What are input measures? • The amount of resources used for a specific program (i.e., number of dollars spent, employee time). 33 What are demand measures? • The amount of need for a particular service - a measure of the extent of a problem or scope of work needed. (i.e., number of miles of streets to be cleaned, number/values of residences requiring fire protection). What are output measures? • The amount of a'completed activity or effort that has been accomplished. (i.e., number of investigations completed, number of library books borrowed, miles of road repaired). What are efficiency measures? • The cost to produce a unit of output(i.e., average cost per inspection performed cost per ton of solid waste collected). What are outcome measures? • The quality of the program or process outputs. Effectiveness as a result of responsiveness, timeliness, compliance, accuracy and customer satisfaction (i.e., average response time to fire calls, percentage of businesses inspected, average citizen satisfaction with services delivered). Engaging the Citizens in the Budget Process Why should a city market their budget? • The annual budget process is an opportunity to dialogue with citizens regarding community goals and priorities and to create public support. How would the City involve the citizenry in the budget process? • Neighborhood meetings • Citizen survey(PAFR distribution) • Website • Newsletter (water bill distribution) • Channel 4 (local government access) Relying on the public hearing process is in most cases "too little, too late" to involve a significant number of participants. It is desirable to inform and educate the public so that they might understand the "budget process" but this is often "one-way," not two-way communication. 34 Dr. Frank Benest of The Innovation Groups provided the following illustration: Continuum of Public Discourse Informing Citizens Engaging Citizens One-Way Two-Way Telling/Selling Listening/Responding/Listening Educating Learning Presenting Information Eliciting values, hopes, aspirations, concerns Discerning "Public Opinion" Promoting "Public Judgment" Analysis of Fund Balance Traditionally, two methods have been used by finance officers in determining the appropriate size of unreserved fund balance: • allocating financial resources equal to a percentage of annual operating expenditures • allocating financial resources equal to a certain number of months' operating expenditures The City of Beaumont uses a range of 8-10% of expenditures in the General Fund. This relates closely to one month's operating expenditures (8.3 1/6) which is a widely used standard. It should be noted that according to Paul Glick, Director of the Financial Management Program at the University of Georgia, a reserve equal to two to three months is not uncommon. What factors influence the establishment of a certain level of unreserved fund balance? Revenue structure - Is it volatile? What is the City's dependence of sales tax? Are City revenues sensitive to the effects of the business cycle? • Expenditures - Can purchases be deferred? • Cash flow - Can sufficient cash balances be managed with an uneven cash flow? The projected level of unreserved fund balance for the General Fund is within the 8-10% range for FY 2000. (9.8%). 35 PERPETUAL CALENDAR FOR BUDGET PLANNING Dates are approximate February 15 - Meet with City Manager regarding goals and assumptions for Five (5) Year Planning Budget and Five (5) Year Capital Program. February 20 - Request update of project information from departments for preparation of Five (5) Year Capital Program. March 15 - Submit Five (5) Year Planning Budget to City Manager for review. March 31 - Departments to return completed project worksheets for Five (5) Year Capital Program. April 1 - Final date for City Council submission of Five (5) Year Planning Budget (No Council action required). lonorbdomAmiii April 1 - Meet with City Manager on Budget. April 5 - Additional personnel for Budget consideration requested from departments by Finance. (Fleet requests sent out by Fleet Div beginning FY99 budget yr) April 15 - Submit Five (5) Year Capital Program to City Manager for review. May 1 - Copy electronic payroll information to budget workfiles to calculate full-time personnel costs for Budget (done by Finance). MAKE CORRECTIONS. May 1 - Fleet request forms for Budget consideration returned from department directly to Fleet Division. Fleet to review and confer with requesting department. May 1 - Memo for Budget entry, including guidelines, sent out to departments. May 1 - Electronic Budget entry by departments may begin. May 1 - Additional personnel requests for Budget consideration due in Finance office. May 5 - Budget training (1 hour sessions) as needed. (allow two days; call to schedule). May 15 - Final date for Council submission of preliminary Five (5) Year Capital Program (No Council action required).[3rtmftprwtofuialdaes for sunissionofbud-coi May 20 - Electronic entry of full-time personnel category Budget numbers by Finance. June 1 - Fleet requests due in Finance for electronic entry in AS400 Budget system. 36 June 1 - Additional personnel request worksheet for Budget submitted to City Manager. (Request response by 5th) June 5 - Final date for electronic entry of Budget& current yr estimates by departments. June 5 - 15 - Initial review of Budget by Finance. June 15 - 30 - Review Budget with Departments. July 1 - Update letters for miscellaneous/statistical section of Budget mailed out. July 1 - 15 - Prepare and submit Budget notebook (by fund type) with computer generated worksheets and preliminary document pages for City Manager review. July 15 - Submit Budget (preliminary, in true format) to City Manager. July 25 - Tax planning begins. If proposed tax rate will generate more revenue than the preceding year, take a record vote and schedule a public hearing. August 10 - Set public hearing day & time for Budget and Five (5) Year Capital Program on date budget submitted. (Council action required) August 15 - Final date for Council submission of Budget (preliminary). [at least 45 days prior to the beginning of the fiscal year] TBA - Must allow at least one full week between publishing notice and holding hearing for Budget and Five (5) Year Capital Program and tax rate if required. • Hold public hearing for Budget and Five (5) Year Capital Program. • Hold public hearing for tax rate if it will generate more revenue than the preceding year . • If Budget increases, another public hearing must be held. • Must allow five days between publisbiLng public ' notice and holding hearing for increase in Budget. September 27 - Final date for City Council adoption of Budget and Five (5) Year Capital Program. [on or before the 27th day of the last month of the fiscal year] September 27 -Adopt tax rate. BUDGET MUST BE ADOPTED BEFORE TAX RATE September 27 - Create accounts for next fiscal year which will "roll over" Budget numbers in AS400. Remind everyone to add new a/c's in both yrs!! [Brackets indicate specific Charter information] 37 PARTNERSHIP IN GOVERNANCE STRATEGIC ISSUES There are significant strategic issues facing the City of Beaumont as we approach the next millennium. The City is positioned to take advantage of existing resources and infrastructure, including a political commitment and diverse community ready to embrace positive change. The City is recognized for being strategically located in Jefferson County, having significant resources to address important community needs and having the potential to be a major economic force. The Administration is committed to the establishment of a quality improvement process throughout the departments and service areas of the City. The commitment to quality improvement focuses on empowering employees in self-directed quality teams to analyze efficiency in service delivery issues and solve those issues at the lowest possible organizational level. The effort requires reaching out to those customers both internal (in the organization) and external (in community) to determine exactly what the service expectations are and then planning to consistently meet these expectations. This is not a program; it is institutionalizing a process that fundamentally changes the way the City does its business. In an effort to empower all segments of the community to create a shared vision for Beaumont, the Mayor and Council needs to commit to supporting a citizen- b a s e d strategic planning process. The purpose of this process is to address strategic issues that are critical to realizing an ideal future for the City. It is also a method to build consensus among diverse segments of the community, leveraging limited resources and providing both a short-term operational perspective and long-term strategic direction. In order to develop a Mayor/Council and Administration partnership in addressing the important issues facing the community, an annual meeting should be established prior to the budget preparation process. The purpose of the meeting is to focus on critical issues and the financial condition of the City in order to properly plan for the upcoming fiscal year. It is also an opportunity for both the Mayor/Council and Administration to develop a positive working relationship and demonstrate continued responsiveness to the community. Initiatives should be developed to create a positive image and perception of Beaumont by improving the physical appearance of the community. 38 Enhance citizen awareness of City government and services through preparation and distribution in the local newspaper of an annual report to citizens explaining the major initiatives of City government and providing information on the City's capital improvement program and beautification efforts. The City must take a proactive posture in economic development to identify opportunities to enhance the tax base and create value added jobs. The structuring of the approved Economic Development Department and its interaction with the Chamber of Commerce, Jefferson County and other agencies will be a major initiative over the next 60 days. The City Manager's Office/Economic Development Department will function as a Business Resource Center to direct and provide essential services to the business community. The effective management of the financing of City government requires conservative and prudent budgeting and revenue producing policies while addressing the critical needs of the City. The process of community involvement through the neighborhood groups in important financial decisions concerning services and allocation of resources is needed. The FY2000 budget provides an opportunity to involve citizens at the neighborhood level in the allocation of resources and evaluation of programs and services. Reduce street crime caused as a direct result of the drug problem within the community by: Continuing the police efforts to identify neighborhoods for zero tolerance, targeting street level drug dealers and panderers, expanding the bicycle patrol program to increase police/citizen contact. The Neighborhood Services Division staff needs to continue aggressive code enforcement in an effort to make the City more aesthetically appealing to encourage community investment. Maintain a source of redevelopment and other funding to preserve and enhance the downtown business area through increased maintenance, adaptive reuse of existing structures partnerships with the private sector and a river front development project. 39 Preserve and improve the City's residential neighborhoods and redevelopment areas by: Providing home rehabilitation and voluntary relocation/demolition assistance and emergency repairs citywide, street and drainage improvements, sidewalk installation, beautification, and utility improvements and new home construction assistance. Encourage economic development through the preparation of an updated master land use plan by: Preparing with public and private sector involvement, a comprehensive long range plan that will serve as the focus for economic development in the future. To provide an increased level of life, safety and fire protection within the City of Beaumont through sound fire prevention programs, enhanced fire inspections, updating fire prevention codes, public awareness programs and the aggressive investigation of fires for cause and origin. Prepare a ten year capital improvements program providing for planned capital expenditures including sources of funding. In order to realize economic development objectives it is necessary to review City policy on annexation including payments in lieu of taxes and any incentives for property owners to become part of the City of Beaumont. The expansion of the tax base through annexation of certain commercial industrial properties will stabilize the property tax rate and provide new services for the community. 40 Sewer Capital Improvements The City's Sanitary Sewer Comprehensive Inflow/Infiltration Study is also near completion. The study revealed that over 80% of the City's sanitary sewer system is over fifty years old and is in need of repairs. The sanitary sewer system has greatly exceeded its design life expectancy. The necessity to expedite and implement the sanitary sewer improvement programs are to comply with federal regulations pertaining to sanitary sewer overflows. (Overflows during rainfall events carry heavy penalties up to $25,000 per day per event); improve reliability of sewer customer service and reduce maintenance costs; and salvage the City's existing 700 miles of sanitary sewer collection system. The estimated costs for these improvements are $70 million. w Should the City increase sanitary sewer user fees to repay the necessary debt service? • Should the City adopt a fixed sanitary sewer surcharge? • Should the City increase ad valorem taxes to repay the debt service? Water Capital Improvements The water system capital improvement plans for the next ten years are nearing completion. These projects include improvements to the City's Neches River raw water canal system and the water treatment facilities. The water system improvements are required to comply with mandatory federal regulations (Safe Drinking Water Act) and to provide an adequate water supply through the year 2020. The estimated costs for these improvements are $30 million. • Should the City increase water user fees to repay the necessary debt service? • Should the City increase ad valorem taxes to repay the debt service? • Should the City investigate the feasibility of privatizing the water system? NOTE: Privatization - A public and private partnership with a water utility operating company could be a means of financing the needed improvements to reduce the City's capital expenditures or spread those expenditures over a longer period of time). 41 Creation of Storm Water Utility The 1987 amended Clean Water act requires municipalities of 100,000 or more to establish storm water management programs. A storm water utility provides a community with a cost- effective alternative to address storm water management programs. The basis for establishing most storm drainage service charges and rates is the degree to which a customer uses or contributes runoff to the storm drainage program/system. The degree of use is typically related to the property's contribution of storm water to the drainage system owned, operated and maintained by the jurisdiction. The need for comprehensive approaches toward storm water management stems from the alteration of natural storm water conditions and from the development of"impervious area." Thus the degree or amount of use, and therefore the size or amount of the charge, is in proportion to magnitude of the property owner's contribution to the total volume of storm water runoff. A properly established storm water utility: 1. Generates a steady flow of revenue into an enterprise fund for maintenance and capital improvements to the storm water drainage system. Typical maintenance activities include ditching, street sweeping, ditch mowing, pipe replacement and pipe flushing. 2. Provides for an equitable or "fair share" method of revenue collection under a structured user fee. The residential community, along with the business community, will both contribute their proportional share in service fees based on their proportional share of the problem. 3. Creates a semi-autonomous entity that has the ability to borrow funds. This separate and dedicated enterprise fund also improves a community's eligibility for federal and state funding. 4. A storm water utility fee would replace approximately $4 million in general fund expenditures that could be used to pay for other services and provide financial stability. • Should the City establish a storm water utility fee and fund to charge all costs to maintain and operate the storm water system? 42 Recycling City wide curbside recycling began February 1992. Since that time the program has experienced ups and downs in participation by residents, volume of materials recycled, and market conditions. Over the years the department has addressed those chaff in participation by implementing program changes to address the various situations. During FY1999, total landfill space used was 230,000 cubic yards. If 1,620 tons or recycled waste was put into the garbage.cans, 100% of recycling cost would be saved and landfill space usage would increase by 1.1%. To put it another way, it would take 89 years of recycling to use one (1)year of landfill space at the current volumes of waste disposal and recycling. The Administration is seeking direction for the future of the Recycling Program considering that budgeted expenditures exceed budgeted revenues. • Should the City continue the program as is at a net cost to the Solid Waste fund of approximately $250,000 annually? • Should the City continue the program as is and increase the monthly solid waste fee by $.65 to cover the cost of recycling. The current fee of $10.85 per month would increase to $11.50 per month. • Should the City implement a citizen drop-off program at a specified site or multiple sites? Citizens would be required to bring materials to the site and a City employee would receive the material and provide assistance to citizens. The cost of this type operation would be approximately $35,000 per year per site. Drop off sites usually collect only a small amount of material because of inconvenience to citizens. • Should the City provide citizen drop-off sites without an employee? These sites usually end up with materials contaminated with garbage and trash resulting in everything going to the landfill. The cost of an unstaffed site(s) would be approximately $10,000 per year. • Should the City eliminate the program and save approximately $250,000 annually. This would probably result in public opposition from environmentally conscious citizens. 43 Selling of Landfill Space The Clean Community Department has been deficit budgeting for the past two (2) years. To increase revenue without rate increases, the City Council sell landfill space to others. Currently only 18% of the waste entering the Landfill is charged disposal fees. The remaining 82%is hauled by City trucks and non-paying customers such as citizens, Drainage. District 6, and Goodwill Industries. If the waste hauled by paying customers is increased by 100,000 cubic yards per year, it would generate $500,000 annually without any additional operating expenses. However, the life of the Landfill will be reduced from 21.5 years to 18.7 years. During FY1999, the Landfill received 850,000 cubic yards of waste and $644,000 of revenue. An additional 100,000 cubic yards would be a 12% increase in waste resulting in a 78% increase in revenue. An additional $500,000 a year for 18 years represents $9,000,000 in exchange for three (3)years of Landfill life. To address the question of"what happens after the Landfill reaches full capacity," the City currently owns 250 acres of land adjacent to the southern boundary of the Landfill. This 250 acres would be proposed as the next landfill site. • Should the Council approve staff soliciting contracts for waste disposal for a maximum of 100,000 cubic yards annually, in effect, selling three years of landfill space for $9,000,000. Port Channel Deepening a n d Widening An important issue for the future of the Port of Beaumont is the project to deepen and widen the channel. There is a deepening and widening committee established through appointment by Judge Griffith. The purpose of the committee is to develop local industry support for the Feasibility Study. This project will increase the width of the channel from 400 to 500 feet and the depth from 40 to 45 feet. The study is an $8 million project. The Federal Army Corp is providing $4.1 million with a local match of$3.9 million. Currently the Navigation District is providing $365,000, the County $1.3 million and the Port $500,000 which leaves f a balance of $1.75 million needed to complete the study. It is important that the local financial support for the study be achieved this year or there is a risk that the Corp of Engineers allocation of$700,000 of federal funds will be diverted to other projects. Last year the Army Corp allocation of$365,000 was lost due to lack of local participation. The Corp has extended these monies on two occasions and will probably not consider a third opportunity to reallocate it to the Port of Beaumont. • Should the Navigation District and Port take a primary role in providing the local share for the feasibility study? • Is the economic development benefit of the project to the City so significant that City Council should consider participating in the cost of the feasibility study? 44 Municipal Transit The annual operating cost for the Beaumont Municipal Transit System is approximately $2.8 million annually. Funding sources to cover the operating costs include farebox revenue, the Federal Transportation Administration (FTA), the Texas Department of Transportation (TxDOT) and the City of Beaumont. A breakdown of the funding sources for Fiscal Year 2000 is provided below: Farebox $ 500,000 FTA 1,150,000 TxDOT 463,180 City (General Fund) 686,820 Total $2,800,000 The amount of federal and state funds received each year has remained fairly constant. However, there is the potential that these funds may be substantially reduced in future years. The ability to maintain or decrease the City's contribution can only be accomplished through an increase in farebox revenue or a decrease in service. Does Council agree to: • Raise route cash fares? fixed o If so it would be: Adult from $.75 to $1 Youth from $35 to $.75 Disabled and Elderly from $35 to $.50 • Raise fixed route monthly passes? If so, it would be: Adult from $24 to $30 Youth from $15 to $25 Disabled and Elderly from $15 to $20 • Raise STS fares? If so, it would be: Do away with monthly passes. Non-social service agency client from $1.50 to $2. Non-social service agency client on advanced reservation from $1.50 to $4. Social service agency clients from $1.50 to $2 and charge the social service agency an additional $13 for a total of$15 (BMT's total trip cost). Additionally, in order to encourage STS clients to use the fixed route system, offer any one currently using STS the opportunity to purchase a monthly fixed route pass at a big discount ($5 for a monthly pass) if they will ride fixed route rather than STS for the month. 45 • Reduce services hours and/or reduce frequency of service? • Consider having the employee group medical/life insurance coverage, worker's compensation, and vehicle liability insurance provided by the City? • Promote the bus wrap advertising program to get more advertisers on board? NOTE: Remember that the City share of the operating budget is around $700,000 out of $2,800,000 which equates to about 25%. So, as an example, if $100,000 is reduced in operating expenses, that only equates to saving the City around $25,000. Relocation of Rail Interchange Yard A feasibility study was conducted to determine if the Port's rail interchange yard located behind City Hall could be relocated. The funding for the study was shared by the Port, City and a private developer on a one third basis. The preliminary study found that the relocation of the rail interchange yard to the old College Avenue Southern Pacific (now Union Pacific) yard is feasible. This location would provide the Port the opportunity to develop a 400-car interchange yard, maintain its favorable switching operations with all servicing railroads and decrease rail traffic in the Main Street area. Potential obstacles include obtaining ownership of the yard and construction of a new track from the yard to the Port. The location of the new track would cross Franklin near the old Entex building and cross Park and Pennsylvania north of Pipkin Park. All new street crossings are proposed to be at grade crossings. The estimated cost to complete this project is $2,500,000. This cost does not include the purchase of the UP interchange yard, right-of-way acquisition for the new tracks and any grade separations. • Should the City participate financially in the relocation of the rail interchange yard? • Should the City purchase the existing rail interchange property for approximately $700,000 in lieu of other financial contributions? • Should the construction costs for grade separations at Park and Pennsylvania be included in the projects costs? • Should the city contribute towards the construction costs for the grade separations? 46 Emergency Medical Services (EMS) Beaumont EMS provides emergency pre-hospital care in response to about 12,000 calls for assistance each year. Approximately 7,500 patients are transported to local hospitals. The EMS division is budgeted at $2,030,000 in expenditures and $950,000 in service fees. The general fund therefore subsidizes the system by approximately $1,080,000 on an annual basis. EMS services are provided by private providers in other communities where those private providers are guaranteed the transfer business or under subsidized contractual arrangements with the local government. • Should the City continue to provide EMS as a subsidized City service? • Should the City consider contracting for EMS service? • Should the City establish operational standards for a privatized EMS system? • Should the Administration explore the legality/feasibility of establishing an EMS user fee on the utility bill to generate revenue to offset the general fund subsidy? Countywide Public Health System n County has fragmented and decentralized Public Health system with health related Jefferso ty gm Y services being provided by the County and the Cities of Beaumont and Port Arthur. A Countywide Public Health System would better able to coordinate and deliver health services and may reduce the financial burden of the City. • Should the Administration investigate the feasibility of consolidating the City Health Department with a countywide Public Health system under the jurisdiction of Jefferson County? • Should the City support the creation of a hospital and Public Health district and Public hospital facility as part of a County health system? 47 Fire Service Fees The fire service across the nation is confronted with reducing its share of the City's general fund while providing additional services and continuing to operate in compliance with unfunded mandates. Over the years, the fire service has evolved beyond the primary mission of providing fire protection by taking on many additional emergency response services. Many fire service organizations use these additional services as alternative revenue sources to help provide needed funds. There are many services performed by the Fire Department that may provide the opportunity to generate revenue. Light Rescue Services Any service rendered by fire department personnel using normal tools, equipment, and procedures to free persons confined in wrecked vehicles or other confined spaces. Such service may include stabilizing wrecked vehicles, assisting EMS, in preparing and removing injured victims, or mitigation of hazards at an accident scene from spilled fluids using absorbent or neutralizing materials. • Heavy Rescue Services Any service rendered by fire department personnel requiring the use of special equipment or tools (jaws of life, air bag, etc.) To free persons entrapped, entangled, or confined in a wrecked vehicle, collapsed structure, any confined space, stalled elevator, high angle, (elevated) or other similar major rescue effort. • Standby Fee A fee to be charged for standby at situations where the Fire Official believes the possibility exists for releases of hazardous materials. • Excessive False Alarm Fee A fee charged for responses to facilities with excessive false fire alarm activations. • Hazardous Materials Response Fee A fee for Hazmat response for washdown, patching & plugging, etc. • Off-Line Fire System A fee for agencies that inspect alarm systems, sprinkler systems, etc., and place them out-of-service, but fail to notify the Fire Marshall's office. Is Council consider interested in charging fees when Beaumont Fire/Rescue Services provide certain services? 48 Communication Network and Center Communication Network and Center will provide for the consolidation of the City's communication network into a combined and centralized 800 MHZ system. The project includes the construction of a new communication center on the second floor of the new Municipal Court Building for dispatching of fire, police, and EMS services, as well as providing non-emergency and after-hours communications for operating departments. The estimated cost to implement the 800 MHZ system citywide is $3 million based on 1998 cost figures. An additional $lmillion would be required to construct the communication center. • Is the City prepared to issue the debt necessary to accomplish the project? • Would the Administration and Council consider the use of civilians for fire and EMS dispatching? i Would Council commit to the 800 MHZ system if phased in over several years? Energy Management Currently, there is no control of energy consumption within City Hall, Civic Center, Julie Rogers Theatre, Main Library and Police Buildings. Staff is gathering information on a new approach to providing an energy management solution in these facilities. "Performance contracting" is an alternative procurement method that implements a wide variety of energy management strategies and badly needed capital projects and uses captured energy/operational savings/guarantees as the funding source. The process allows for an entity to upgrade or install new equipment and control systems which reduce energy demands and pay for the project with the operational and energy cost savings. Guarantees are issued by the performance contractor which will pay the differences if the projected energy savings are not met. • Should Council issue debt to implement the energy management strategies if savings were generated to service the debt requirements? • Should Council enter into an agreement for performance contracting which guarantees energy savings from the design contractor? 49 Change of Election Date House Bill 3257 amending §41.0052(a) of the Election Code allows municipalities an extension until December 31, 1999 to change the date for elections. To change the election date, an ordinance would have to be passed by Council and pre-clearance received from the Justice Department. Councilmembers have expressed concern about voter apathy and for greater voter participation. If a uniform election date in November is established on the first Tuesday after the first Monday in November, this would coincide with County elections. If this option is favorable, present terms for Councilmembers would be extended an additional six months, from May to November. Also expenses of the election would be shared with Jefferson County. ! Does Council support changing the City election date to coincide with County elections? Improved Phone System Currently, the City's phone network contains approximately 1,100 telephones which operate through four PBX's, twenty-three key systems and standard business lines. The PBX's are located at City Hall, the Police Building, Fire Headquarters, and the Health Department. These telecommunication switching systems were installed in 1988. Certain desirable features such as Caller ID and Voice Mail cannot be fully integrated into our existing PBX switches. In order to accommodate these features, the city would be required to replace and upgrade the phone system at a total estimated cost of $450,000. Although the system is not totally antiquated nor obsolete, future replacement and upgrading are essential. • Are the desired features a necessity? • Should Council issue debt or expend the funds required to upgrade the phone system? Skateboard Park The sport of skateboarding is growing nationwide faster than any other sport. Mainstream America is now beginning to recognize the need for this type of recreational activity even though it is still guided by a spirit of independence. Lately some interest has been shown by City leaders to possibly build this type of facility in the community. • Should the City build and operate a skateboard park? • Should the City operate the facility through the Parks and Recreation Department? • Should the City build and lease this facility to a private operator? 50 Action Plan j Strategy Action Steps Responsible B When? 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