09 Conference - Simulation Case Overview

Borough Case Overview
© CMP Associates, 2008. All rights reserved.

Introduction

This simulation is designed to give participants an opportunity to complete some initial data gathering and analysis at the start-up of a comprehensive performance improvement project for a new client, Pleasantview Borough, a municipality in New Jersey, USA. The overall goal of this project is to help the Borough to improve the efficiency and effectiveness of Borough operations, including, but not limited to an ability to satisfy the service requirements of property owners and residents, without a need for additional tax revenue. The consulting teams present, are all being given the opportunity to complete initial data gathering and analysis in order to prepare preliminary findings and recommendations for improvement action and next steps. However, only one team will earn the confidence of the ultimate client, the Borough Council, and be asked to continue on with the project.

Their analysis will allow each consulting team to prepare a Project Progress Report to the Borough Council. With this Progress Report, teams will summarize what they have learned so far in the form of findings and recommendations for improvement, where possible. They will also outline critical next steps for continuing on with further data gathering and analysis necessary to achieve overall project goals. Note that, for practical reasons, actual data gathering will be limited to an opportunity to interview three of the department heads from the paid staff of Pleasantview Borough. The balance of the interview data will be provided to all teams equally in the form of interview notes, gathered and summarized for the teams in advance, instead of allowing them to interview the other department heads.

Client/Situation Background

Pleasantview Borough is an affluent community located about an hour from New York City. The Borough doesn’t have many “ratables” or large businesses, in addition to residential property owners, to pay taxes. Therefore, the majority of the Borough’s tax revenue comes from residential property owners and a limited number of small to medium-sized businesses. Most property owners and other residents are well educated and many work in New York City.

The Borough is governed by a Council of elected officials. The Council consists of six (6) council members and a Mayor. (Note that the Mayor only votes to break a tie.) Terms of office are for three (3) years, but terms are staggered, so that there is never a time when all Council members change at the same time. Though this does provide for some continuity, it’s also true that the Council is different every year, because there are new members every year. The Council sets the strategic direction for the Borough, which means that it is responsible for setting the overall goals and objectives for the Borough’s paid staff.

Note that, though the Borough Council is elected to be the strategic governing body for Pleasantview Borough, the Council is still subject to the programs, policies and regulations enacted by the State of NJ. Furthermore, the largest portion of local taxes billed and collected by the Borough, actually go to the County and State.

There are a total of 45 fulltime paid staff working for the Borough. Roughly half of the Borough Staff, or twenty (20) people, work for the Police Department and, as such, are not directly managed by the Borough Administrator (BA), who is the highest-ranking staff member. For the balance of the staff, who report to the Borough Administrator, the majority are long tenured and more than half have been working for the Borough between 18 and 25 years. The Borough Administrator is responsible for day-to-day operations, reports directly to the Borough Council and attends all Borough Council meetings. Regular monthly Council meetings are publicized and open to the public.

Borough Staff offices are located in Borough Hall, which is a circa 1800 building. It was operated as a gristmill, sawmill, cider mill and distillery in the mid 1800s.

Issue/Project Opportunity

The Borough’s paid staff is responsible for providing all of the services required by residents, property owners and businesses. Examples of services include: maintaining the roads and the sewer system, trash pick-up, leisure and recreation facilities and programs, and ensuring that the properties within the Borough are maintained to a standard desired by property owners, as defined by local ordinances.

The Borough’s budget is developed by the Borough Administrator in cooperation with members of the Finance Committee of the Borough Council, for final approval by the full Council, based on the services required by residents and planned projects. Budget proposals from the various functions serve as input into the Borough’s overall operating budget. However, the County and the State of NJ actually make the final determination on the allowable tax rate (revenues) for all municipalities and there is an annual 4% cap on tax increases, in any case. As a result, there is an expected revenue shortfall, when considering operating costs in the context of tax revenue alone. There is a need to:

1. contain costs while simultaneously improving service results and “customer” satisfaction,
2. identify resource-sharing opportunities that would benefit both the Borough and other neighboring municipalities as well as
3. offset costs, where permissible, with specific fees for services.

The Borough staff has outgrown the historic mill building in which Borough offices are located. Borough staff is unionized. Borough Council meetings are characterized by a constant series of complaints from residents. There is a need to do more with less, but, at the same time, to address the overwork situation for several key staff members. Further, for certain strategically important positions, such as Planning, 1) there is no succession plan and 2) there is concern that the job incumbent may soon burn out if nothing changes. There is no HR professional on the staff and, therefore, current position accountabilities and performance measurement requirements have been developed and documented independently by position incumbents. Borough staff departments are required to submit status reports monthly, which are compiled into a single document for Borough Council consideration.

The Borough Council, as the strategic management team (akin to the Board of Directors of a corporation), has engaged external consultants, who are performance improvement professionals, to help identify improvement needs and to recommend related solutions and implementation strategies.

Borough Operations

Functions/departments that comprise Borough operations: (organization chart attached)

Borough Administrator and Finance – develops, prepares justification and proposes the Borough’s operating budget to the Council, documents the finalized budget as approved/established and manages day-to-day operations. The objective of day-to-day management is to remain in compliance with budget requirements and/or to identify actions that must be taken in order to remain within the budget and maintain services even in the face of unplanned spending requirements, uncontrollable price increases or other.

Borough Clerk – issues licenses, records and maintains records of vital statistics, prepares and distributes Borough Council meeting agendas and other documents, records the minutes at Borough Council meetings and other related responsibilities

Tax Assessor – establishes the market value of Borough real estate to which a tax rate will be applied as determined by the County. Pleasantview Borough made the strategic decision to update/calculate assessments every year.

Tax Collector – using the assessed value information and the tax rate established by the County, along with amount required by the County and State, the Tax Collector sends out tax bills, collects, accounts for and deposits tax revenue.

Construction – issues construction permits for construction projects and coordinates the inspection process for these projects to ensure the quality (compliance with building codes/standards) of completed projects

Zoning Planning – ensures that all construction and development projects are in compliance with zoning ordinances as established and in force within the Borough

Zoning Enforcement – ensures that all Borough properties are in compliance with all Borough zoning ordinances

Public Works – is responsible for maintaining all Borough streets and roads and the sewer system, including snow removal, leaf collection, tree trimming and maintenance of Borough compost facility

Recreation – (as a self-funding operation) prepares and coordinates the delivery of athletic and other recreational programs, maintains parks and ball fields and operates the Borough pool to benefit Borough residents and also other non-residents (for an additional fee)

Consulting Challenge

The consultant’s should prepare credible, comprehensive and practical findings, recommendations and next steps based on the data available at this early point in the analysis. An important challenge for each consulting team is to present their preliminary findings, recommendations and next steps in such a way as to earn the client’s commitment and active support for moving forward with the project.

As indicated above in the Introduction, interview notes will be provided to all teams, representing data gathering conducted in a cross section of Borough functions (departments). Teams will also have the opportunity to interview 3 department heads for departments not covered by the notes. Interview subjects will be available during the last 30 minutes of the kick-off session. Since interviews will be simultaneous, consulting teams will need to “split up” in order to cover all three (3) interviews. There will be opportunities for teams to work together throughout the conference.

Consultants will need to keep in mind –

• their obligations to the client,
• what they actually know,
• what they don’t know, and
• their relationships, going forward, with the client as well as with the Borough staff.