“I CAN’T DO IT ALL”
(BUT MAYBE I CAN FOOL THEM INTO THINKING THAT I DO)
ICMA Small Cities Presentation September 23, 2003
By Richard Hill, City Manager City of Capitola California
(The City of Capitola is a small resort community of 10,000 population on the coast of Central California.
Geographically, it is about 2 square miles in size.  Its annual general fund budget is about $10M with 70 employees.  Hawaiian shirts are an alternate uniform for the police department.) 

I	Introduction
This presentation will focus on three areas that will help the Manager to prioritize and create efficiencies.  These areas are:  Organization Techniques, Communications and Personal Development. (Note Asterisks “*” indicate high priority techniques)

A.	Organization Techniques relate to the structure and systems of the city, their use and construction, and how they interrelate.  Examples include:
1)	Hire on Merit
2)	Use Systems
3)	Administrative Policies and Procedures
4)	Know When to bring Resources on Line
5)	Cost Covering Fees
6)	Use of Consultants
7)	Prioritizing
8)	Plan for Periodic Successes

B.	Communications include:
1)	Administration vs. Policy Making
2)	Council Communications
3)	Resolving Conflicts
4)	Delegating
5)	Controlling the Amount of Work
6)	Conflicting Direction from Council

C.	“Knowing Oneself” refers to the personal traits, skills and attributes of the City Manager and the role they play in Organizational Management.  Examples include:
1)	Knowing your own personal and professional strengths and weaknesses
2)	Balancing Work, Health and Family
3)	Understanding the Dynamics of Power

II	Organizational Techniques
It is the intent of this discussion not to include the typical organizational strategies you hear at every workshop or seminar.  Furthermore, it is recognized that each City is different and these suggestions may have differing degrees of success in your City.  Apply your best judgment in using these ideas, but, please do not ignore them simply because you have not heard of them before.

A.	*Hire good staff based solely on merit.
1)	*Do a thorough pre-hire background
2)	Know your weaknesses and hire experts in those areas
3)	Avoid hiring based upon relationships (social, blood, political or other)

B.	*Use Systems
Definition:  Very basically a system is a process with an input, a consistently applied process, and an output.
1)	A periodic Evaluation of the active systems is one of the most important systems to have.  Are they doing what they were designed to do.  Can another system do it better?  Is the system efficient?  Do we need the system any more?
2)	*When something goes wrong first look at the system—do not assign fault or blame.
3)	Record the system in a policy and procedures manual.  So when someone leaves you don’t “forget” the system.
4)	Avoid Systems that overlap—too much busy work—and avoid systems that are inflexible.

C.	*Written Administrative Policies and Procedures
1)	Yes, everyone knows to do this but you’d be surprised how many managers do not, or do not keep them up to date.
2)	Admin. Policies are promises that you will treat everyone the same.
3)	*Do not let good judgment be overruled by regulation.  Be willing to change a policy if you can make it better.  (“If it ain’t broke don’t fix it.” has never been a good philosophy.  If you can make it better, do so.)  Perhaps a better platitude is “to make sure you are fixing the problem you intend to fix.”

D.	*When and how to bring resources on line.
1)	*Sometimes it pays to go expensive:  high visibility, complex projects; politically volatile projects; high cost projects.
2)	Have an A team (expensive but excellent work product) and a B team (knows how to get the job done and is competent.)
3)	Know when to use volunteers:  low expertise, physically safe, projects when you have a lot of time to complete.  Volunteers can be difficult, but do use them when appropriate.  Good Public Relations can result and they can increase the communication between your city and your service population.
4)	*Always have revenue generating ideas in your back pocket, even some of the unpopular ones; and keep on the look out for more.  Some ideas:  In Lieu taxes, fee for service development fees, emergency communication fees, appropriate use of debt, business license application fees, increase existing fees, assessments or taxes.

E.	The use of cost covering fees can be very helpful (See Attachment)
1)	Those who use the service pay for the service.  (with flat fees those who are efficient pay more for the time used.)
2)	Help track the use of City’s resources.
3)	When more City resources are used more money comes in which allows you to bring in more resources.

F.	Know when to use consultants.
1)	Very complex or specialized projects or when in-house expertise does not exist.
2)	When service demands tap out in-house resources or the customer wants a faster turn around time. (Also, remember it is always better to lay off consultants rather than staff.
3)	High quality experts with proven track records are needed for important, politically sensitive projects.

G.	*Learn to Prioritize
1)	Everything cannot be a number one priority (although council may disagree)
2)	Break down projects in to parts—it may be that one part of a project has a higher priority than another  (such as communicating with residents)
3)	*Understand when product delivery is more important than product quality (sometimes there are projects you can clean up along the way)
4)	Always be ready to reassign priorities when new information is available (such as a new project with a more urgent, or higher priority than the one you are working on)

H	*Plan Projects to obtain Periodic Successes
1)	Do not go for a long period of time without a success
2)	Celebrate the successes
3)	*For new employees make sure they have an early success.

III	**Communications
Communications are critically important for an efficient organization.  Good communications between the Manager and Council are also important to the longevity of the Manager.  Always keep the Council involved.  There is no black line between administration and policy.  Communicate with staff.  Frequently give them the “Big Picture” to help focus goals and objectives.  Do not unnecessarily keep information to yourself.

A.	*Is there a difference between Administration and Policy?  Yes.  But talking to Council members about administration will not get you into trouble.
1)	Every time the City Manager approves the agenda he or she enters the policy arena
2)	Councils are curious about what is going on, and they should be.
3)	*Explain to the Council members who tend to be more hands on that increasing council member involvement in administration could be dangerous:  a) usurp the power of the entire council; b) could reflect poorly on the City; c) could reflect poorly on the manager; d) is not good for the project that the Council member is promoting; e) could reflect poorly on the Council Member—also could increase that Member’s personal liability exposure.

B.	*Communicate with your Council in several ways
1)	*Weekly on active projects (See Staff Work In Progress Table, Attached)
2)	*Introduce them to new projects before they are implemented
3)	*Send periodic updates on projects to Council Member via email (there is a real advantage to having all Council Members on email if they use it.)
4)	*Control expectations of your Council.  (Promise late, deliver early)
5)	Do an annual project prioritization session.
6)	*Bring Council into frank and honest discussions of productivity—respecting privacy
7)	*When Council gives you a project, work with them to give it to you terms of a Work Product instead of telling you how to do it.
8)	*Councils will sometimes give conflicting or unclear direction during the meeting.  It is your job to get from them or help them give to you clear direction.  Point out the conflicts, suggest options and get clear direction.  Do not use this an opportunity to do what you want.
9)	*Admit mistakes, sooner than later.  Acknowledge when you are having problems
10)	*Good communications with Council will instill confidence and reduce micromanagement.
11)	Work with the Council to develop working guidelines, if needed.  Address:  rules of order (something other than Roberts); election of officers; lateness of meetings; etc. 
12)	*Know when, for political reasons, the Council does not want help from staff.

C	*Resolve Conflicts as soon as possible
1)	*Identify conflicts right away and do not ignore them
2)	Make sure conflict resolution systems are in place e.g. grievance system
3)	Make sure rules, regulations and policies are readable, accessible and train on them, and apply them uniformly
4)	Clearly communicate change: the reasons for it, and when you expect it to occur (gentle pressure continuously applied)
5)	Look to problems in your systems for conflict, and look to systems for solutions to conflict

D.	*Delegate
1)	This is the reason you hire good employees.
2)	Trust your employees and let go when you delegate, but make your expectations clear
3)	Review the work to assure your expectations are satisfied
4)	*Know your employees’ weaknesses and strengths, support weaknesses and pitch to their strengths.—Do not Plan to Fail

E.	*Control Amount of Work 
1)	Three ways to control the amount of work:  control the amount or complexity of work assigned; increase resources available; increase productivity.
2)	* To control work assigned:  Bring in Council Members.  When Council keeps creating committees work to put Council Members on the committee, as they see their evening work increase, they will be less likely to create new committees.
3)	Use the Staff Work In Progress Plan (attached) to identify projects and priorities.
4)	*Increasing Productivity should be a continuous work goal:  Look at reviewing and replacing systems; clearly and frequently communicate goals and expectations; do not over burden the organization; use capital equipment instead of more people whenever possible (power trimmers, computers, printers, vehicles, striping machines, etc.)
5)	Consider revising a project by decreasing its complexity.
6)	Identify annual maintenance costs for all CIP (Capital) projects; and, design CIP projects to reduce maintenance when possible.  For example:  reduce the amount of turf; use automated fixtures; install long lasting-low maintenance materials and hardware.

F.	Understand Politics
1)	Politics are good—they communicate community and customer preferences and priorities.
2)	Politics can get in the way—personal or private agendas can detract from the public good.
3)	Also save some time for each Council member to do a special project for him or her.
4)	How do you tell good politics from bad politics?  One test is to view the political request as if it were in a public forum (The Newspaper Test).  “We should give $2,000 to the non profit organization of ‘Feed the People’”—This would work, even if the newspapers printed the story.  “My constituents do not want this much density on this parcel, in spite of what the state says.”—This could work but probably with some debate.  “We should hire my wife’s sister as the Finance Director.”  This is very problematic.

III	Know Oneself
You are your greatest asset and biggest liability.  If you know yourself, weaknesses and strengths, others will be less able to take advantage of you; and you will be less likely to foil yourself.

A.	*Know your personal and professional strengths and weaknesses
1)	Personality:  directive, detailed, prefer summaries, like long lead times, other.  Advise your staff or these proclivities.  Know that personal strengths if over used can become weaknesses (peace maker can become a conflict avoider)
2)	Professional:  are you weak in planning? Finance? Personnel?  Other areas? Find out and then find a way to support those weaknesses.

B.	Balance Work, Family (Personal Time), and Health
1)	I have been told by surgeons that they never have heard anyone say, as they are being wheeled into the operating room, “Gee, I wish I spent more time at work.”
2)	Give your employees the opportunity to achieve that balance as well.
3)	This does not mean you never work a 60 hour week, but it does mean that sometimes you work a 35 hour week.
4)	Let the Council know you live that philosophy, but do not use it as an excuse to retire early.

C.	*Understand the Dynamics of Power
1)	Everyone has some power.  The higher up the power hierarchy the easier it is to gain attention.
2)	Power is a megaphone, so “whisper” criticism
3)	*Power is most easily used in the negative:  Saying “No.” when it is more difficult to understand the matter and trying to make a good idea work when it is poorly presented; staff badgering is another form of negative use of power.
4)	Know when to invoke the authority of the Office, and know which office is best used.  (Sometime a Mayor can do thing faster than the City Manager.)

ATTACHMENT 1
Cost Recovery Fee Information

CITY OF CAPITOLA TIME AND PROJECT
ACCOUNTING SHEET

Name:  _________________________ Title:  ______________________ Dept: __________________

Date		Project						Time			     Hours

				

				

				

				

				

				

Record time in minimum 10 minute increments.  Tally time by project every two weeks.

Agreement for Payment of Full Cost Recovery Fees
for Application Processing and Inspection Services
(Not required for flat fee applications', contact Community Development Department if you have any questions.)

___________________________________________________________(“Applicant”) agree(s) (print names of property Owner or authorized Agent, and Applicant if different from Owner) 
to pay to the City of Capitola all reimbursable costs, both directed indirect, including State-mandated costs, associated with review and preprocessing of the accompanying application for land use and/or encroachment or grading permit for land use approvals and inspections with respect to the subject property or project located at

___________________________________________________________________________
(Address or Assessor 's Parcel Number(s))

even if the application is withdrawn or not approved. Reimbursable costs include but are not limited to all items within the scope of the City's adopted Cost Recovery Program, as well as the cost of retaining professional and technical consultant services, and any services necessary to perform functions related to review and processing of applications and inspection of work. Owner and Applicant understand that one or more deposits will be required to be paid by Owner and Applicant to cover the costs noted above at such times and of such amounts as requested by the Community Development Director or designee. City agrees to review and process the application in accordance with this Agreement and all applicable laws, regulations, ordinances, standards and policies. This statement applies to all subsequent applications related to the project.

Owner and Applicant understand and agree that nonpayment of processing and inspection fees pursuant to the City's Cost Recovery Program may, at the sole and exclusive discretion of the Community Development Director, result in temporary or permanent cessation of processing of the application or inspection of the work, and, after notice, may result in the denial of the application and/or order to cease work. Prior to completion of processing of any phase of the project, any and all outstanding amounts due pursuant to this agreement shall be paid. The Community Development Department will withhold issuance of further plan checks, entitlements, permits, certificates of occupancy, etc. until all required processing and inspection fees have been paid in full.

The applicant agrees to adhere to the following guidelines with respect to the billing of processing and inspection fees:

1.	Non-receipt of invoices must be brought to our attention within 30 days of the date they are routinely received by your office.

2.	Invoices presented without sufficient supporting documentation shall be brought to our attention within 30 days of the receipt of invoice from the City.

3.	Questions regarding specific charges that you believe may be questionable and/or incorrect must be brought to our attention no later than 30 days following receipt of your invoice and corresponding documentation.

Failure to comply with the aforementioned procedures within the specific times may, if research of billing information is requested, result in additional charges for clerical time spent and will be billed at our cost recovery rate. Please note that with the exception of documented disputed amounts, finance charges will be assessed at the rate of 12% per annum or 1% per month on all past due amounts.

In any legal action arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable litigation expenses, including costs and attorneys' fees.

As part of this application, the Applicant agrees to defend, indemnify, release and hold harmless the City, its agents, officers, attorneys, employees, boards and commissions from any claim, action or proceeding brought against any of the foregoing individuals or entities (“indemnitees''), the purpose of which is to attack set aside, void or annul the approval of this application or adoption of the environmental documents which accompany it. This indemnification shall include, but not be limited to, damages, costs, expenses, attorney fees or expert witness fees that may be asserted or incurred by any person or entity, including the Applicant, third parties and/or the indemnitees, arising out of or in connection with the approval of this application, whether or not there is concurrent, passive or active negligence on the part of the indemnitees.

Nothing in this agreement shall prohibit the City from participating in the defense of any claim, action or proceeding.  In the event that the Applicant is required to defend the indemnitees in connection with any said claim, action or proceeding, the City shall retain the right to (i) approve the counsel to so defend the indemnitees, (ii) approve all significant decisions concerning the matter in which the defense is conducted, and (iii) approve any and all settlements, which approvals shall not be unreasonably withheld by the City.

The City shall also have the right not to participate in said defense, except that the City agrees to cooperate with the Applicant in the defense of said claim, action or proceeding. If the City chooses to have counsel of its own defend any claim, action or proceeding where the Applicant has already retained counsel to defend the City in such matters, the fees and expenses of the counsel selected by the City shall be paid by the City.

The Applicant also agrees to so indemnify the indemnitees for all costs incurred in additional investigation or study, or for supplementing, redrafting, revising or amending any document (e.g., the EIR, Specific Plan Amendment, Specific Plan, General Plan Amendment, Rezone, etc.) if such is made necessary by the claim, action or proceeding, and if the Applicant desires approvals from the City which are conditioned on the approval of said documents.

The undersigned Owner/Authorized Agent hereby represents that he/she either personally owns the subject property or is an entity authorized to install and maintain facilities for provision of utility, telecommunications, video, voice or data transmission service in the public street right of way or is a duly authorized agent of the Owner with full authority to execute this Agreement on behalf of Owner. Applicant agrees to be jointly and severally liable with Owner for payment of all fees referenced above. Applicant agrees to notify City in writing prior to any change in ownership and to submit a written assumption of the obligations under this Agreement signed by the new owner or his/her authorized agent.

Project Description:_____________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

Notices are due and payable within ten (10) days.  A penalty will be charged on delinquent accounts at the rate of l% per month or 12% per annum.  Owner agrees that delinquent amounts shall constitute a lien on the subject property and expressly consents to recordation of a notice of lien and/or copy of this Agreement against the subject property with respect to any amounts which are delinquent.

Name of Property Owner:  ________________________________________________________
						(Please print)

Telephone : _________________________________ Fax: ______________________________

Address:  _____________________________________________________________________

_____________________________________________________________________________

___________________________________________	Date:_________________________
Signature of Property Owner/Applicant

 or

____________________________________________	Date: _________________________
Signature of Authorized Agent/Written verification from Property Owner
Must Be Submitted Designating the Authorized Agent

And

___________________________________________	Date: _________________________
Signature of Applicant (if different from Owner)

___________________________________________	Date: _________________________
Signature of Staff Member Verifying Agreement Complete

ATTACHMENT 2
Sample Staff Work In Progress Plan