VB Councilman proposes McDonnell-esque Reform Commission

Councilman Bob Dyer liked Governor McDonnell’s Commission on Government Reform so much, he thinks Virginia Beach should form one, too.

The Virginian-Pilot reports that the commission would “make recommendations to the City Council as to how we can effectively and efficiently operate government during the prolonged economic slowdown,” and “recommend opportunities to outsource government functions, changes to city practices that could help encourage businesses to invest in Virginia Beach and ways to improve communication with the School Board, state legislators, minorities in the city and the public.”

Dyer, a second-term Councilman, has driven reform initiatives throughout his tenure, as he led the successful “Blue Ribbon Commission” on revenues and expenses.

Imagine if cities across the Commonwealth spent some time rethinking government while Gov. McDonnell did the same thing at the state level. Think of the major change that could be possible.

Dyer’s point, that slowing revenues leave little choice about needing to pursue reforms, is a strong one.

Here is Dyer’s letter to Council in it’s entirety. Other cities – take notice.

Dear Honorable Mayor Will Sessoms
Vice Mayor Jones
Members of City Council

Given the turbulent state of economy and an uncertain future government on the federal, state and local levels will be compelled to take decisive and innovative action in order to maintain fiscal stability. As elected officials, we must recognize and confront the challenges imposed by these realities to develop and implement strategies to conform to the pending paradigm shift in government operations and functions.

Recently, Governor McDonnell formed the Government Reform and Restructuring Commission in order to make government more simple, more user friendly, more efficient and effective. At this time, I respectfully recommend that the City of Virginia Beach follow suit by forming a citizen based commission that duplicates the actions taken by the Commonwealth in order to not only survive but thrive during the coming years of budgetary challenges.

A short summary of the Governor’s Commission follows:
The Mission of the Commission on Government Reform and Restructuring is to:
1. Identify opportunities for creating efficiencies in state government, including streamlining, consolidating or eliminating redundant and unnecessary agency services, governing bodies, regulations and programs
2. Explore innovative ways to deliver state services at the lowest cost and best value to Virginia taxpayers
3. Seek out means to more effectively perform core state functions, including privatization of government operations where appropriate and restore focus on core mission- oriented service
4. Examine ways for state government to be more transparent, user friendly and accountable to the citizens of the Commonwealth

How Governor McDonnell Defines a Successful Commission:

The Commission will succeed IF recommendations are implemented in the next 3 ½ years through executive, legislative and administrative action to:
1. Reduce the overall scope of government through either the elimination of unnecessary state functions or by privatization
2. Cut state government costs
3. Make government more transparent, open and accountable to the citizens of Virginia
4. Simplify the process for citizens to access government services
5. Enhance Virginia’s standing as the “Best Managed State” in the nation
6. Ensure that taxpayer dollars are dedicated to effective functioning core services like public safety, education and transportation
7. Decrease administrative and overhead costs
8. Maintain Virginia’s longstanding commitment to the Dillon Rule while reducing unfunded mandates on localities and providing local governments with more flexibility to manage the operational needs in their jurisdictions
9. Consolidate and unify the disparate back-office functions found throughout state agencies and ensure communication and data sharing among all areas of government
10. Improve Virginia’s attractiveness and competitiveness to investors and employers
11. Improve customer service, responsiveness and helpfulness of state government functions
12. Restore the long term fiscal health of the Commonwealth of Virginia

REALITIES OF ECONOMIC CONDITIONS:

There must be compelling rationale for significant changes to be put into place in reaction to the economic climate. Virginia Beach has a well deserved reputation for being an efficient and well managed city. The purpose of establishing our own Commission would be in preparation for the inevitable decline in revenue streams while ensuring we maintain the capacity to deliver core and essential services to our citizens.

The result of the recent November election sent a strong and coherent message that smaller and leaner government is on the forefront. We can anticipate reduced revenues from federal and state sources, [not to mention the continued unfunded mandates] requiring bold and innovative action on City Council’s part for the locality.

Several economic conditions will reach a critical mass in the coming years. That will, no doubt, play havoc with our local budget. The long term effects of our national debt service, the impact of health care reform, the insolvency of Social Security, continued unemployment, growth in the aging population and a bad global economy does not bode well for fiscal stability.

Locally, the Hampton Roads Region is faced with the detrimental impact of declining Department of Defense dollars as we shift to a Guns versus Butter economy. The probable closing of JFCOM, combined with the potential of losing a carrier group or two presents a significant challenge.

The function of the Virginia Beach Commission would be to take into account all the economic realities and work with the City Council, management, City employees, military, business community and the citizens to identify, study, analyze and make recommendations to the City Council as to how we can effectively and efficiently operate government during the prolonged economic slowdown.

FUNCTIONS OF THE COMMISSION:

Honoring the request of Members of City Council to provide specific recommendations and examples of how this Commission would function, I submit the following:

Let me state, upfront, that the formation of such a Commission is in no way an abdication of the responsibilities of City Council. The format would be similar to the previous Blue Ribbon Tax, Fee and Spending Task Force, which proved to be a most successful undertaking. Be assured that the final decision on any recommendations would be in the hands of the City Council.

The suggestion for the Commission is not a negative reflection of our management capabilities. The intent is purely process improvement by having “other sets of eyes” by subject matter experts from the community objectively examine our processes and operations and then made recommendations. Given that the Commonwealth of Virginia is regarded as one of the best managed states, taking concurrent action with the Governor’s Commission would, no doubt, enhance our standing in the community.

The Commission would demonstrate to the public that we are proactively responding to the fiscal storm. By including diverse participants from throughout the community and functioning in a highly transparent manner, we can instill confidence and trust to the public during distressing times.

Ultimately, the composition and function of the Commission will be decided by us, the City Council. A citizen suggested that we have a core Commission comprised of about 6 members, including a chairperson. This body would work in concert with City Council and management to identify specific areas requiring attention. At that time, an Ad Hoc Committee of subject matter experts would be assembled to work on that specific area or problem.

Virginia Beach is blessed to have many talented and experienced individuals who can comprise a talent pool of expertise to serve on these Ad Hoc assignments. This “intellectual capital,” if effectively utilized, can provide objective observations, analysis and remedies for problems confronting our City. Once the Ad Hoc group completes its work and reports to City Council, it can be dissolved. A number of such committees can function simultaneously, depending on the needs of Council and the management.

I also suggest that we establish a consortium of our higher education institutions to augment the work of the Commission. These institutions would provide the Commission with objective data and related studies to provide background and support for the Commission’s objectives. Students would benefit by working on real projects and gain experience from working with subject matter experts.

Using an educational consortium can also result in a variety of other consulting projects and be available to other Hampton Roads cites and companies, which would result in considerable cost savings. Students would establish relationships that keep them in the community after graduation.

SELECTION OF COMMISSION MEMBERS:

Given the magnitude of importance of this Commission to the future of Virginia Beach, selection of Commission members is an important factor to achieve balance and chemistry. I recommend that we have considerable discussions as to selection criteria and identify potential individuals with the credentials and experience to best serve our objectives.

We need individuals who demonstrate competence and innovative thinking. We should avoid participation by those who might have vested self financial interests or a political agenda. Such a Commission requires a collaborative spirit focused on producing positive outcomes for the city.

POTENTIAL FOCAL POINTS:

I was also asked to provide some examples of areas the Commission could examine. Again, the specifics and assignments to the Commission would be determined by City Council in conjunction with management. Based on conversations with the business community, citizens and other Council Members, I offer the following topics for consideration:

1. Establish and Define Core and Essential Services
During my tenure on City Council, we have yet been able to come together and define what services are truly core and essential services. An outside entity can objectively examine and identify the departments and services essential to City function. As we will likely confront significant budget cuts, having such objective input would help us in the decision process as well as remove politics from the equation.

2. Downsize and Rightsize
Given the anticipated reduction in revenues for a prolonged period, significant reductions in operational budgets can be expected. An Ad Hoc Committee of subject matter experts, comprised of individuals who are experienced and have worked with similar reductions could be beneficial to our department heads. The committee can also examine the elimination of duplications of service and redundancy, as well as explore outsourcing opportunities.

3. Strategic Forecasting and Economic Reality
A panel of economic experts and business people can objectively examine if City Council’s strategic plans and future ventures are in alignment with economic realities and infrastructure needs. If, in fact, the current economy is the “new economy” , we may have to make modifications to the City’s business plan for lack of funding sources.

4. Business Community Issues
The committee should examine our City’s processes, regulations and ordnances, then determine if they are “business friendly” and whether they encourage or discourage economic development. Certain questions by the business community should be addressed:
• What actions can be taken to promote and assist our existing business community to help them survive during bad economic times?
• Do current practices put our business community and developers at a competitive disadvantage when compared to adjacent communities?
• Does our imposition of multiples fees upon the business community negatively impact economic development?
• What impact does the City’s public-private partnerships and development plans have on other businesses though the community?
• What can be done to insure all current and potential businesses throughout the City have equal opportunities, a “level playing field,” and, thereby, eliminate any perception of preferential treatment?
• What are other strategies and inducements the City could provide to encourage public-private partnerships without raising our debt limit?

5. Communication and Bridge Building
A panel of experts would assist with the communication and establish positive relationships. A thorough evaluation of how the City communicates internally and externally would be of value. Other possible questions to be addressed:
• What are strategies to promote dialogue and consensus with School Board Members and our General Assembly Delegation in Richmond?
• How can we more effectively communicate and interact with the public?
• How can we become more transparent and promote public trust?
• How can we get the public, especially Minorities, more engaged in the government process?
• How can we better engage the faith-based community to assist us in providing a safety net for our health and human service needs, especially the homeless?

SUMMARY

Thank you for this opportunity to make this recommendation which I trust will result in establishing a Commission to serve the public’s needs. Given the challenges we face, such action is necessary, not because we want to, but because we need to.

A major component of this initiative will be to change the public’s perceptions and expectations of government. In the future, we will have to function with fewer resources. Tough decisions will have to be made! I feel if the public sees us taking a greater, more transparent action, citizen involvement will insure the successful transition into the future.

Be assured, if we can accomplish this mission, the formation and function of the Commission will be an ongoing process by City Council. I recommend that we discuss this during Informal Sessions in December and make it a focal point of our January Retreat. If all goes well I request going forward for approval immediately after our City Council Retreat.

In conclusion, we as City leaders, along with management, staff, the business community and the public, must unify with the realization we are in a crisis mode. As a community, we are all mutually dependent upon each other for survival. We all have to buy into the concept of change and innovation in order to succeed now and in the future.

Through adversity, we must come together to forge opportunity. Virginia Beach has the opportunity to pave the path to guide other municipality, and others, to success.

Your consideration on behalf of this initiative is appreciated.

Sincerely,

Bob Dyer

cc: Jim Spore
Mark Stiles