Trust

CALIFORNIA Where Our Profession Is

Makind a Differenoe

HOW MANAGERS STEPPED UP TO HELP THE OOMMUNITY

RECOVER

By Kevin Duggan, ICMA-CM

On Friday, July 16,2O11, the recruitmentdeadline closed for an interim city managerin Bell, California (35,500 population).Applications were counted up. They totaled zero. The Bell brand was definitely in trouble.

A little more than 18 months ago the local govern- ment management profession was rocked by the com- pensation scandal in Bell. Although there will always be isolated examples of members of the profession not

TAKEAWAYS

>Bell, California, has been a difficult experience for the local government management community, but one day it might serve as a positive example for the profession. > The response to the call for assistance is a clear dem- onstration of what the management profession and the individuals who compose it represent.

meeting the demands of the ICMA Code of Ethics and the expectations of their communities, the extreme conduct in Bell, along with the intense media attention it generated, created challenges for the profession both in California and across the country.

While ICMA was already focused on efforts to better explain the role and value of professional management through its upcoming "Life, Well Run" campaign, one of the worst possible examples of our profession became the best-known city manager in the nation. The greatest impact of this scandal, however, was on the residents of Bell. It became their challenge to reclaim their local government.

Painful Impacts Among the impacts of the Bell scandal was an intense interest in public sector compensation in both national and local media. The response of the profession, including ICMA, was to focus on communicating the reality of compensation in the public sector and to

1 6 PUBLIC MANAGEMENT | MARCH 2012 icma.org/pm

identify best practices. Increased ef-

forts were undertaken in California and

other parts of the nation to develop

compensation guidelines.

While these efforts were under way.

Bell's citizens began the hard work of re-

claiming their community. The city man-

ager and other high-level staff members

were removed from their positions, and

some had criminal charges filed against

them. By early 2011, the previous council

had been recalled and a new council was

in place. The new councilmembers faced

daunting challenges.

The scandal revealed not only outra-

geous issues regarding compensation but

also significant management and leader-

ship deficiencies and major financial

problems. Compounding the problems

was that the new council found itself with

a much-depleted leadership team and one

not of its choosing.

Councilmembers were also continuing

to deal with significant community distrust

and an overwhelming number of serious

and challenging issues. There also was

a lack of experienced leadership on both

elected and appointed levels. An additional

challenge was that all this was played out

in the glare of intense media scrutiny.

As the new councilmembers

struggled to try to move the community

forward, their aspirations were further

impacted by the impression that govern-

ment professionals were unwilling to

become involved in such a negative,

difficult, and demanding circumstance.

By the summer of 2011, the news media

were beginning to conclude that no one

was willing to help the city.

Although there were a number of

reasons for the challenges faced in

obtaining professional assistance, clearly

one was the stigma associated with the

previous city leadership and its impacts.

When it came to ICMA's attenfion that

Bell was having difficulty obtaining the

professional assistance needed to rees-

tablish effective governance and services,

it was clear that action was necessary.

As painful an experience as BeU

continued to be, it was fime for our

profession to offer help. The mayor and

council immediately responded with

enthusiasm to ICMA's offer to assist them

in finding professional interim leadership.

Also responding quickly and positively

to partner with ICMA and its California

affiliate, Cal-ICMA, were the League

of California Cities (LCC) and its City

Manager's Department and California City

Management Foundation (CCMF).

The initial assistance consisted of

contacting the membership of these

organizations to request help. The

challenge quickly became urgent when

members of the new council determined

they did not wish to extend the contract

of the temporary chief administrative

officer they had inherited from the previ-

ous governing body.

In lieu of the contract being extended,

the mayor became the interim CAO, a cir-

cumstance that neither he nor his council

colleagues wanted to continue any longer

than absolutely necessary. ICMA, LCC,

and CCMF needed to move quickly to

identify professional interim leadership.

Ken Hampian's Story After some direct outreach by profes-

sional colleagues. Ken Hampian, ICMA

member and the retired city manager

of San Luis Obispo, California, offered

his services for a 30-day period. This

provided fime for the recruitment of a

longer-term interim manager.

Not only was Ken willing to change

a number of personal plans for those

first 30 days, but he also insisted that he

serve without compensation. He did not

want any questions raised regarding his

motivafion to assist.

Since retiring from city management

in January 2010, Ken had not been

interested in pursuing interim manager

positions. He was enjoying other kinds

of work and service and believed the city

hall portion of his life was over. But, as

Ken describes it, to his surprise he had a

great urge to "answer the Bell."

He viewed the opportunity as a mis-

sion and not a job and an opportunity

for our profession to demonstrate what

professional service and management are

really about. He was also motivated by

a strong desire to change the impression

created by those who preceded him and

claimed to be public servants.

Within five days of the vacancy

occurring, Ken interviewed with the Bell

council. Within 30 minutes of meet-

ing Ken, councilmembers appointed

him interim CAO, and he immediately

found himself sitting in the CAO's chair

for a jam-packed council meefing. He

provided advice and suggestions at the

meeting that lasted until 2 a.m.

As Ken quickly found out, the chal-

lenge was much greater than helping

the organization and community recover

from the compensation scandal. He

found an organization in shambles. Poli-

cies, processes, hierarchy, equipment,

training—the normal accoutrements of

organizational life—were nonexistent or

severely withered.

There were no department heads or

citizen advisory bodies. Ken found the

remaining staff dedicated but skeletal

and shouldering an overwhelming work-

load. He also found Bell entangled in a

net of bad debts, bond levies, lawsuits,

and grant violations.

Ken was immediately immersed in an

almost overwhelming number of issues

ranging from those having great signifi-

cance to the mundane. Compounding the

challenge was the absence of staff support

in key areas and the complete lack of

organizational infrastructure to address

even the most routine of inquiries.

He also quickly discovered that,

although this working-class com-

munity had accomplished through the

recall process the initial recapture of

their community, they were severely

handicapped by a lack of governing

experience and civic involvement. The

community's dignity and self-respect

had also taken a serious hit, and trust

was greatly lacking.

Although a dedicated, committed,

and intelligent mayor and council had

been elected, they were not experienced

in local government and its services.

It became apparent immediately that

the challenges were so great that Ken

needed some direct assistance. Within

icma.org/pm MARCH 2012 I PUBLIC MANAGEMENT 1 7

days, additional local government

professionals offered their help.

Of particular note was the assis-

tance of the city of Santa Monica (City

Manager Rod Gould), which immediately

freed up Deputy Police Chief Al Venegas

to serve as a chief of staff to Ken and

assist with addressing the overwhelming

number of pending issues. Deputy Chief

Venegas used two weeks of his personal

vacation time to help out during this

critical initial period.

While immediately prioritizing a wide

array of serious issues and problems

and providing stability to the provision

of essential daily services, the manage-

ment professionals realized that a major

challenge was to find a highly qualified

professional to replace Ken after his 30-

day emergency assignment. Again, ICMA,

CCMF, and the LCC joined together

to advertise and review applicants for

recommendation to the council.

A committee, under the leadership of

retired city manager and Cal-ICMA mem-

ber Kevin O'Rourke, ICMA-CM, sprang

into action. The response to an extended

deadline and additional professional

outreach was gratifying. A strong group

of candidates was identified, with three

ultimately recommended to the council

for interview.

Ken and other dedicated volunteers

made great strides toward stabilizing

the Bell organization and to help the

council move the community forward

during this initial period. Trust and

confidence in professional management

was already significantly restored after

Ken's time in Bell.

His service was greatly appreciated,

and when he completed his 30 days of ser-

vice the community graciously expressed

its gratitude, not only to Ken but also to

ICMA/Cal-ICMA, LCC, and CCMF.

Arne Croce's Story Arne Croce, ICMA-CM, ICMA Life

Member, and the retired city manager

of San Mateo, California, has had a

number of professional adventures since

leaving full-time city management in

2008. In addition to providing consultant

assistance to several California public

agencies, he also promoted professional

local governance through service in Iraq

and Kosovo.

Shortly after returning from Kosovo,

he was encouraged by fellow local

government professionals to consider the

challenge of the long-term interim CAO

assignment in Bell. He was one of the

several highly qualified applicants solic-

ited to apply and was one of three final

candidates recommended to the council.

He was subsequently interviewed

and selected to replace Ken. The joint

recruitment and selection process by

ICMA, CCMF, and LCC was, amazingly,

completed in less than three weeks.

Arne knew that this task would

require him to be away from his home

in northern California for at least nine

months while working for less than

would normally be expected for this type

BELL HONOR ROLL The number and diversity of professionals and professional organizations that came together to assist in restoring Bell and to demonstrate the difference that professional management can make in a community is impressive. These groups and individuals deserve our thanks and appreciation for their efforts.

INDIVIDUALS

Ken Hampian, Retired City Manager, San Luis Obispo

Pam Easter, ICMA Senior Adviser, Rancho Cucamonga

Arne Croce, ICMA-CM, ICMA Life Member, San Mateo

AI Venegas, Deputy Police Chief, Santa Monica

Kevin O'Rourke, ICMA-CM, Cal-ICMA Committee on the Profession. Fairfield

Dave Mora, ICMA-CM, ICMA Senior Adviser/Range Rider, Salinas

Linda Barton, ICMA-CM, Past President, City Manager's Department, League of California Cities, Livermore

Ciiris McKenzie, League of California Cities, Sacramento

Wade McKinney, ICMA-CM, President, California City Management Foundation, San Diego

Bill Garrett, Executive Director, California City Management Foundation, San Diego

Bill Statier, Retired Finance Director, San Luis Obispo

Mike Multari, Retired Community Development Director, San Luis Obispo

Bill Smith, Retired City Manager, Westminster

Susan Loftus, City Manager, San Mateo

Norma Gauge, City Clerk, San Mateo

Wandzia Rose, City of San Mateo

Marvin Rose, Retired Public Works Director, Sunnyvale

Dave Hiil, Retired HR Director, Anaheim

Linda Spady, HR Director, San Mateo

Sheila Canzian, Parks and Recreation Director, San Mateo

Dave Bass, Retired Finance Director, Bell Gardens

Vern Fickiin, Retired Manager, Public Works Department, San Mateo

David Schirmer, IT Director, Beverly Hills

Melissa Lindiey, Housing Department, Santa Monica

Rod Gould, City Manager, Santa Monica

Jeff Kolin, City Manager, Beverly Hills

Steve Belcher, Interim Police Chief, Bell

Debra Kurita, Interim Community Services Director, Bell

Kristine Guerrero, League of California Cities, Sacramento

Julie Hernandez, International Hispanic Netvi/ork, San Jose

Nancy Fong, Interim Community Development Director, Bell

JoAnne Speers, Institute for Local Government, Sacramento

ORGANIZATIONS

International Personnel Management Association

Alliance for Innovation

1 8 PUBLIC MANAGEMENT I MARCH 2012 icma.org/pm

of interim assignment. He was drawn to this challenge by his desire to assist the community after it had been ravaged by an individual who claimed to be a member of the management profession. He also was drawn to the opportunity to work with elected officials who were committed to making things right again.

Although a great number of problems had been inifially addressed by Ken and his team of volunteer professionals, the vast majority of problems still faced Arne. Among these were helping to establish effective community dialogues, including at council meetings, addressing the daunt- ing financial and budget challenges, and hiring a team of department heads.

EIGHT LESSONS OF BELL Bell, California, represents both the worst and the best of our management profession. In reflect- ing on the story of Bell up to this point, these lessons are suggested:

• Significant authority is part of being a local government manager. Managers can make a great impact on a community by the way in which they undertake their professional responsibilities. This authority must be exercised in a professional and ethical manner.

• Successful communities need to have effective professional management, effective and public- spirited elected officials, an interested and involved community, and a vigilant media.

• Personal interests can never impact professional decision making.

• Openness and transparency are essential ingredients for effective local governance.

• Professional management can have a significant positive impact on local communities.

• Our profession is often more valued and ap- preciated by residents and elected officials than we fully realize.

• Members of our profession believe in good gov- ernment and the value of professional manage- ment and are willing to sacrifice to demonstrate their belief.

• Without adequate checks and balances and the willingness to confront inappropriate conduct, all organizations are at risk.

At the same time, Arne felt warmly welcomed to the Bell organization and community. He found the community positive and supportive. There was obvious appreciation for his willingness to join them in their efforts to restore the community. He also sensed their relief in having professional management that they could trust and that would provide good advice and day-to-day manage- ment to their organization. He found the employees receptive to new ideas and open to change.

Among Arne's immediate priorities was to further expand the cadre of professional volunteers to help on a wide variety of projects and assign-

ments. These included the development of an RFP process for a refuse collection contract, the need to create basic HR policies and procedures, and the necessity to ad- dress poorly maintained mobile home parks that he had discovered were owned by the city.

A major step forward was Arne's ability to assemble a small but highly skilled and profes- sional group of full-time interim department heads. Although they are compensated, they have been willing to serve for payment that's below what they could oth- erwise earn; they have accepted their temporary jobs because of their belief in the important work being done. He has seen tremendous progress through the efforts of these dedicated professionals.

Arne has also greatly expanded the number of volunteer part-time professionals who provide valuable help on

a wide variety of topics. Also, a number of professional associations including ICMA, the Alliance for Innovation, the Institute for Local Government, and the International Personnel Management Association have offered assistance in a variety of ways. Other cities, including San Mateo, California (City Manager Su- san Loftus) and Beverly Hills, California (City Manager Jeff Kolin, ICMA-CM), have provided specific assistance in such areas as upgrading the technology infrastructure in city facilities.

Arne sees the organization moving in a positive direction, with the greatest achievements so far being the establish- ment of professional interim leadership in departments, triage of critical prob- lems and issues, initiafion of an effective budget process, and creafion of an expectation for openness and transpar- ency relating to all municipal business. *"

His overarching goals for his time in Bell include stabilizing the organization, establishing permanent professional staff, creating needed internal organiza- tional infrastructure, and stabilizing the city's financial condition. The bottom line for Arne is to have his time and the time of his fellow professionals demonstrate what can be expected from honest, open, and professional local government management.

Pam Easter's Story Pam Easter, a retired city manager, assistant city manager, and ICMA Senior Adviser, is one person in an extraordinary group of dedicated volunteer profession- als who stepped in to support Ken and subsequently Arne and who is continuing to provide assistance to the Bell commu- nity. As she watched the compensation scandal unfold, she fully appreciated the negative impact it had on the Bell com- munitŷ cmd on our profession.

Immediately upon hearing of the challenges encountered by Ken Ham- pian, Pam volunteered to serve and subsequently undertook a long daily commute in order to help stabilize the organization. Like Ken and Arne, she wanted to be part of the effort to help

PUBLIC MANAGEMENT | MARCH 2012 icma.org/pm

Bell recover as well as demonstrate the positive impact that professional and ethical local government management can have on a community.

Pam found that the councilmembers and staff were dedicated to the difficult work of reforming and rebuilding the organization. Although greatly impacted by the actions of a few Bell leaders, the staff was committed to creating an orga- nization and community of which they could be proud. Pam was encouraged to find that the new council understood the importance of professional and ethical management.

What had initially been an offer to assist Ken for the first few challenging days of his service turned into a much longer commitment. Pam provided critical support during Ken's month as interim city administrator and then continued her service after Arne arrived. Pam has served in a variety of capacities ranging from interviewing employees to helping assess the organization, undertaking administrative analysis, and serving as acting interim city administra- tor and interim finance director.

She found a group of employees who were still committed to providing public services but who had suffered from the absence of professional and ethical leadership. Employees had also been severely impacted by the barrage of nega- tive publicity and the constant negativity regarding all things related to Bell.

They also were operating in an atmo- sphere of great uncertainty on almost all levels, ranging from finances to organi- zational leadership. Pam was impressed to find that, after looking deeper than the now stereotypical view of what to expect in a "Bell employee," she found a committed and concerned group of staff members doing their best to provide services under difficult circumstances.

Pam was able to help employees stay focused on their obligation to provide important and often vital public services. She also got great satisfaction from being able to serve as an example to the staff of how professional manag- ers conducted themselves.

Working with Ken and Arne, she was able to demonstrate that organiza- tional leaders can serve as role models and can work positively and construc- tively in a team environment with their fellow employees while providing support and encouragement.

Pam's commitment and the commit- ment of many other volunteers to the management profession and all that it stands for is being demonstrated every day in Bell.

Conclusion to Date Is Positive Ultimately, as is the case in all of the communities in which managers serve, the success of Bell and the Bell com- munity is in the hands of its residents and council. Even with the great progress that has already been made, it could take years for the community to recover from the poor leadership and governance of the past.

Though the challenge is long term, the current budget development process is a clear example of progress. A community-involved budget process (totally lacking previously) is underway and will lead to clear city goals and priorities. The budget format is being revamped to include basic workload and performance measures. Progress against goals, priorities, and perfor- mance will be regularly monitored and reported. While these steps may appear basic for most communities, these are major steps forward for Bell.

With the help of professionals dedicated to the public interest, the elected officials in Bell and the com- munity as a whole are working to reform and restore their community. Although the experience of Bell has been difficult for the local government management community, the story is changing and it is hoped that Bell can one day serve as a positive example for the profession.

The response to the call to assist by so many organizations and individual professionals has been a clear demon- stration of what our profession and the individuals who compose it represent. Only a small fraction of the many offers

REBIRTH OF BELL: ONLINE ARTICLE AVAILABLE

An important commitment for profes- sional local government managers is to advocate professionalism in communities outside their own. As you will read in the article "Rebirth of Bell," ICMA, Cal-ICMA, and the California City Management Foundation worked together to help Bell, California, overcome a year of intense public scrutiny to make significant strides toward restoring the public trust.

Bell came so far that it celebrated its "rebirth" at a special press confer- ence on August 24, 2011, during which ICMA, the League of California Cities, and the California City Management Foundation (CCMF) were praised for their contributions to the city's success.

To learn more about this fascinating story, visit the CCMF website at http://www.cacityman agers.org/rebirth-of-bell and the article "Rebirth of Bell."

of help could actually be accepted. All of us who are committed to good governance and effective and honest local government management owe all of these organizations and individuals our gratitude and appreciation.

While the negative example of the previous Bell leadership will be difficult to overcome, we can be grateful to the new community leaders and dedicated professionals who are striving every day to create a positive example of how effective local governments can function.

Professional local government management makes a significant difference in our communities. This is now being proven every day in the city of Bell. R^

KEVIN OUGGAN, ICMA-CM, is ICMA West Coast regional director, Mountain View, California, and is former city manager of Mountain View ([email protected]).

icma.org/pm MARCH 2012 | PUBLIC MANAGEMENT 2 1

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