Ted A. Gaebler, City ManagerCity of Rancho Cordova

California Municipal Treasurers Association (CMTA) ConferenceApril 20, 2011 

Ted A. GaeblerCity Manager, City of Rancho Cordova

Attacks on public sector pensionsDoing more with lessLayoffsBudget cutsFurloughsHiring freezesPay freezes or cutsRaising employees PERS contributions 

“… develop and set forth recommendations for minimal educational and certification standards for city clerks, city managers, and city treasurers …”

NEXT 10 MILES CLOSED FOR

NO APPARENT REASON

Edgar gave up his Edgar gave up his protest in disgust protest in disgust after learning that after learning that it would take three it would take three weeks to obtain a weeks to obtain a permit to hold a permit to hold a demonstration.demonstration.

CITY HALL

DOWN WITH

BUREAUCRAC

Y

The day Tommy learned the full meaning ofThe term “cash-strapped city government”

“The word government is from a Greek word, which means ‘to steer.’ The job of government is to steer, not to row the boat.  Delivering services is rowing, and government is not very good at rowing.”

– E.S. Savas

City of Bell Drama

Pension Reform

September 11, 2001: The Attack on America

The emergence of other service providing institutions

Technology

The need to regain public confidence

Loss of trust in government

Changing ethnic make-up of society

Globalization

Elected Officials/AppointeesElected Officials/Appointees

Government Government OrganizationOrganization

1. We exist to provide services

2. Citizens are demanding more service

3. Government buildings and procedures need to be intimidating to average citizens in order to maintain control and make democracy work

4. Only taxes fund government services

5. Once we provide a service, we rarely terminate that service

6. We need to do it all ourselves

7. The services that governments provide are so unique that only governments can provide them

8. Red tape and mountains of paperwork are a fact of government life

9. We used to believe only governments can exercise ‘police powers’ and regulate

10. Governments cannot make a profit

– President Bill Clinton’s Inaugural AddressJanuary 20, 1997

Fear of going bankruptFear of product obsolescenceBeating the competitionShareholder return on equityReturn on investmentThe voracious search for new productsTime to marketMarket share

1. Bring in Private Sector Executive Talent

2. Bring in Academics or other Do-Gooders

3. Use Consultants to Produce Studies

4. Have Politicians Run as Outsiders

Empower the public employee...at all levels.

It is replacing bureaucratic systems with entrepreneurial systems

It is about creating public organizations that habitually innovate

It is about creating a public sector that has a built in drive to improve

It is governments that become “self‐renewing systems”

Acknowledgment: “Banishing Bureaucracy: The Five Strategies forReinventing Government”, David Osborne and Peter Plastrik

Not about reinventing politics

Not about cutting waste, fraud and abuse

Not synonymous with “Privatization”

Not about running government like a business   

(i.e., different motives, funding sources, and market structures)

Not raising taxes

Not a stand‐in for simply makinggovernment more efficient

Not reorganization; not moving boxeson an organizational chart

Not just re‐engineering or TQM

Not victimizing public employeesby “downsizing” or “rightsizing”

2010 All-America City Award

L.P. Cookingham “Career Development Award”

2009 Sacramento Workplace Excellence Leader

2009 Sacramento Bee Editorial“Here’s one city that has it right”

City Manager Mandate

Act as a Broker, Catalyst, Facilitator

City Manager Ordinance 

Culture of Trust with Council

Annual Corporate ReportCitizens Financial ReportMid‐Year Budget ReforecastContract CityRent City HallCannabis Business and Cultivation TaxesYour Tax Dollars at Work Video

Office of New Ideas

Matrix ManagementCross TrainingTask Forces

Reward employees with “stock certificates”so they feel like they own a “piece of the rock”

Our employees need to know it’s okay to try new ideas and fail.We need to protect them with our magic cloak of invulnerability.Nugmeyer Award

“... the successful future of the city government demands that the City Manager be aggressive, innovative, and willing to take

risks. The City and City Manager’s mutual responsibility is to help shape a Rancho Cordova city government

capable of meeting those challenges.”

Second Employment Agreement with City Manager and City of Rancho Cordova, pages 7-8.

Create community and citizen pride in City government

As time goes by, build a modern paradigm of government by:

Developing the capacity for intelligent changeDetermining the benchmark agencies by which we can measure our progressCreating a city government that has never existed before in CaliforniaBecoming a benchmark for other city governments to emulate

Second Employment Agreement with City Manager and City of Rancho Cordova, pages 7-8.

“The City Manager is authorized to approve expenditure adjustments

within individual funds so long as the total appropriated within each major

fund is not exceeded.”

SECTION 2.2. The City Manager may authorize contracts made by negotiation, provided that the amount does not exceed one hundred thousand dollars ($100,000). When the amount exceeds one hundred thousand dollars ($100,000), the action must be authorized by the City Council.”

SECTION 1.6. Competitive Salaries. In recognition of the critical importance of staff and consultants to achieving the objectives and potential of the City, it shall be the duty of the City Manager to establish and maintain salaries and benefits sufficient to attract and retain talented, creative and dedicated employees and consultants.

Each calendar year for the duration of this Agreement, City Manager commits to produce additional revenues, identifiable savings or a combination of both that will be equal to or greater than four (4) times the City’s investment in the City Manager. During the annual evaluation by the City Council, the City Manager will present data supporting this commitment, and the City Council will be the sole judge of whether or not this commitment has been met.

A decent, happy place, with air to breathe, with a place to stand in

the sun, a place for children to run and play and learn—a place where people

of all ages can become lifelong learners—a place where black, brown,

white, yellow, and red people from all economic and ethnic groups in

our society can live together in peace and harmony.

What Is Our Collective Vision of Good Government?

How Will We Know One When We See One?

Possible Answers are:– A government that, in harmony with other

societal institutions, contributes to the improvement of the quality of our lives

– A government that helps citizens achieve their desired outcomes

Possible Answers are:– A government that, in harmony with other

societal institutions, contributes to the improvement of the quality of our lives

– A government that helps citizens achieve their desired outcomes

Government works betterGovernment costs lessCan add to economic competitivenessIncreases productivityIncreases employee moraleIncreases citizen satisfactionIncreases societal equabilityIs more respected

George Bernard Shaw 1856George Bernard Shaw 1856--19501950

Ted A. Gaebler, City ManagerCity of Rancho Cordova

(916) 851-8800(916) 851-8787

2729 Prospect Park DriveRancho Cordova, CA 95670

tgaebler@cityofranchocordova.orgwww.cityofranchocordova.org

We want governments to have limited powers and yet be efficient. Inefficiency is part of the price we pay for having a government designed to be incapable of the tyranny of kings. 

Because of our fear of government power, we have designed our governments to be costly, slow and inefficient  by insisting on Separation of Powers, Checks and Balances and Federalism.

The City Manager and the City Council agree that the mandate for this position is to:

Provide excellent, not mediocre, government services that are:

EfficientEffectiveWell-respectedEntrepreneurial

Second Employment Agreement with City Manager and City of Rancho Cordova, pages 7-8.

City Manager Mandate

SECTION 1.9. Regular City Council Meetings. The City Manager shall prepare the agenda for regular City Council meetings.

Special City Council Meetings. The City Manager or Mayor may schedule and set the agenda for special meetings of the City Council.

City Manager’s OrdinanceAgendas of the City Council

It was thought that the only way to recover from the Depression’s dismal slump in economy and morale was to make a “Gigantic Effort.”

The 1935 San Diego World Fair was intended to be that effort. 

It was agreed that timing was right for the following reasons:

Estimated 5 million visitors would bring millions of dollars into the San Diego economy, or go home singing the praises of the wonderful cityThe City was not starting from zero, The City owned the location which had existing buildings and ample space to build a new sectionTiming was right, but critically short for planners to arrange exhibitors, attractions and performersThe federal government could be expected to contribute heavily with funding and labor

1. Rebuilds organizations around customers

2.  Focus on outcomes, not inputs

3. Encourage waivers and exceptions

4. Translate vision into action

5. Initiate “stuff”

6. Generate excitement and passion

7. Change incentives that drive behavior

8. Create an environment for “outside‐the‐box” thinking

9. Challenge the rules

Get feedback from customers & use itEncourage staff to put themselves in customer’s shoesGet win/win solutions for customer & organization

Realign rewards around achievement of outcomesEvaluation systems tied to outcomesBenchmark to other public & private businesses

Establish parameters for staff to make exceptions without authorization “from above”Discourage use of “pat” terms‐‐”it’s the policy”, etc.”Recognize each customer situation as unique

Expect staff to use vision as “template” for decision makingLook for opportunities to acknowledge short term resultsPositively reinforce those who focus on vision achievement

Throw a lot of balls in the airUse crisis as opportunity to use innovative solutions to actEnsure intelligent risk taking; educate employees a lot

Help staff believe they can make extraordinary things happenEncourage staff to make creative contributions; have funUtilize many different strategies to motivate

Use team incentives‐‐celebrate progress; move toward team rewardsCreate environment which encourages learning from success and failureProvide an environment in which employees can take pride in results

Establish an  office of NEW IDEASModel use of creative thinking techniquesChallenge staff to look for unique strategies to solve problems

Respond to needs, not rules & policiesCreate expectations that systems will be constantly modifiedProvide forums to question status quo

1. Bring in Private Sector Executive Talent

2. Bring in Academics or other Do-Gooders

3. Use Consultants to Produce Studies

4. Have Politicians Run as Outsiders

197638.4%

193220.1%

200930%

-22%91%

Absence of anarchyStability in societal institutionsTrust in government and the essential fairness of its institutionsLow citizen tolerance for corruptionCrisis or a “sense of crisis”; i.e. a burning platform

Transparency of all government transactionsProfessional civil serviceLeadership – political will and courageA growing middle classContinuity of leadershipCapability of investment in reinvention strategies

The absence of a dictatorshipA tradition of democracyCompetitive political partiesA bill of rightsA focus on human rightsA free pressAn activist citizenryA strong interest in votingA healthy or growing economy

Shapeshifting

Office of new ideas

What does victory look like?

A value-add is to shape shift; that is to take the same information everyone has and provide a new perspective; that is to change paradigms