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How to hire better for the most influential job in Ventura

How To Make Better Hiring Decisions For The Most Influential Job In Ventura

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Here we go again. Ventura is hiring its fifth City Manager since 2000.

The City Manager is the most influential job in Ventura’s city government. He controls millions of dollars and impacts Ventura for years to come. Unfortunately, he does this with little oversight from a part-time City Council.

Neither the City Manager nor the City Council has shown an ability to run the city in a fiscally responsible way. As a result, the Finance Department has provided the City Council with a projection that the City of Ventura will lose money over the next five years.

Four previous holders of the most influential job in Ventura.

For the fifth time since 2000, Ventura is hiring a new City Manager.

Poor Choices Lead To Financial Disaster

The City Council does a poor job of overseeing the City Manager. Former City Manager Rick Cole played financial games with the budget. He moved $7.5 million from the Public Liability Fund, Workers’ Compensation Fund, and Information Technology Fund to other areas in the budget. These moves made it appear as if the city’s budget was balanced. Unfortunately, the Council didn’t catch the manipulation or was unwilling to investigate further.

Former City Manager Donna Landeros reallocated $9 million earmarked for the proposed Convention Center to various city programs. Unfortunately, no one can determine what happened to the money.

Former City Manager Mark Watkins acted as the chief cheerleader on Measure O. He touted the money was for city services. Yet, oversight for Measure O has disappeared as the citizens’ committee has several vacancies. Measure O money will ultimately go toward employees’ pensions, not city services.

Moreover, the City Council’s decision to hire Mr. Watkins cost the Ventura taxpayer’s money. When Mr. Watkins took the most influential job in Ventura, the Council chose to increase his salary and bonus to $242,059. That was a $52,718 increase over his predecessor, Mr. Cole. Former Councilmember Christy Weir claimed hiring Mr. Watkins would save the city more money than the rise in his salary. Unfortunately, the figures don’t bear that out over the four years he served in the role. And now, Mr. Watkins receives his retirement pension based on his highest salary of $242,059.

The City Council put Mr. McIntyre on paid administrative leave. At the same time, Ventura hired an independent auditing firm to review city credit card usage from the city’s executive team and other spending. On December 12, 2022, Mr. McIntyre resigned before the audit results became public. The City Council accepted his resignation and paid him $150,000 severance pay.

There Will Be Pressure To Hire Fast

There will be pressure to hire the most influential job in Ventura quickly

The Council will feel internal and external pressure to act quickly. They’ll want to fill the vacant position immediately to provide leadership at City Hall. In addition, citizens will demand someone to manage the Thomas Fire and COVID-19 recoveries. The search firm Ventura hired to help find someone for the position will add to the pressure, too. Ventura pays the search firm when the new City Manager accepts the job. Typically, the fee is three months of the City Manager’s starting salary. In this case, it’s $76,177.

A hasty decision now could lead to adverse consequences in the future. Therefore, the Council should be deliberate, bold and thoughtful when hiring. Likewise, they should think creatively and progressively as they make their selection.

Balancing these goals will take work, and the Council must resist succumbing to the pressure.

Qualities Ventura Needs In A City Manager

The challenges facing Ventura’s new City Manager have never been more significant. The city is recovering from back-to-back adversities and requires steady leadership. Here are some attributes that the City Council should demand of the new City Manager.

Fiscal Responsibility

The new City Manager will inherit a budget with declining revenue and the possibility of a recession in the general economy. Therefore, the new City Manager must thoroughly understand the city’s budget and financial figures. In addition, they must include an understanding of fiscal policies, procedures and controls. For example, Ventura is spending over $100,000 on auditors to investigate city credit card usage by City employees and executive spending. Taxpayers wouldn’t have to pay this if the city accounting staff and the current assistants and deputies in the City Manager’s office had done their job and had implemented proper controls at City Hall.

Accountability

Residents expect the most influential job in Ventura to be accountable. President Truman said, “The buck stops here.” In Ventura, the “buck stops” at the City Manager’s desk, which applies to all the City Manager’s subordinates. The top person is accountable for results, even if the underlings underperform.

Communication

The City Manager must be able to communicate with various groups. For example, they must be able to collaborate with city staff, labor unions, the City Council, the media and the community. Also, the City Manager needs to articulate the city’s plan to move ahead following the Thomas Fire and COVID-19. They must also communicate changes in department policy and practices.

Transparency

Transparency begins with knowing how the City Manager is performing. The city should use Standards of Performance (SOPs) to measure achievement. Currently, the City Manager doesn’t have SOPs listed on its website. The Council should prepare SOPs, and the city should post them for the public to review. What’s more, the City Manager’s accomplishments should be in the public record. Citizens deserve a yardstick to measure if the city meets the City Council’s directives.

Results Driven

The new City Manager should be goal oriented and a self-starter. Once the City Manager understands the Council’s direction, this individual cannot wait for an elected, part-time City Council to implement action.   The new person must be able to meet deadlines to produce measurable results on the projects the city commits to completing.  The new Council intends well, but they are part-time. They do not have the ability or tools to implement their policy decisions and then follow up to ensure others successfully implement them. Only the City Manager and his lieutenants can do that.

Delegation

Delegating responsibility will be crucial to the new City Manager. Yet, delegation doesn’t mean surrendering responsibility. On the contrary, the new City Manager must regularly inspect the assigned projects for results and, if necessary, take action for missed goals.

What The City Council Must Avoid When Hiring A City Manager

Equally crucial to the qualities to look for in a new City Manager are the things the City Council must avoid when hiring that person.

Requiring Former Public Service

Nothing limits the candidate pool like requiring previous public service at the city, county or municipal level. Past City Managers had a bureaucratic background. Locking in on prior public service leads to a “status quo” in city government. Little new or original thinking will come from other public servants. If the city wants to change and improve, finding a person with a business management background would be more beneficial in the long run.

Negotiated Automatic Raises

One salary negotiating tool for a prospective City Manager is to ask for—and usually receive—a salary increase after a specified period. Mr. McIntyre negotiated such a deal, and the increase was unwarranted. Base all increases on meeting or exceeding predetermined measurable results. Tenure should not be a criterion.

Long-Term Severance Packages

Mr. McIntyre also negotiated a $300,000 severance package over twelve months if the City Council terminated him without cause. The severance was too much and will last for too long. Any negotiated severance packages should be at most six months.

Residency Requirements

Requiring a candidate to live in or close to Ventura limits opportunities. Local applicants may only be able to offer new ideas if they know a little history of what came before. It limits the ability to break from entrenched solutions and historical changes. Making needed changes requires fresh thinking that a local person may not have.

Unsuitable Compensation

Each successive City Manager has received higher salaries and benefits. Higher compensation hasn’t produced better outcomes from the City Manager, though.

The City Council should be critical when determining the salary for the new manager. The current compensation for Ventura’s City Manager may be too high. For example, outgoing City Manager McIntyre received $304,707 to manage a General Fund of $126 million and 600 employees. By contrast, Mike Pettit, Ventura County Assistant County Executive Officer, receives $322,355 to administer a $2.7 billion General Fund and 10,000 employees.

Only an extraordinary candidate with a proven track record would warrant a higher salary. Yet, while compensation expenses are an essential concern, now is not a time to “pinch pennies” for the right hire.

Editors’ Comments

Hiring the next City Manager is paramount. The City Manager is the most influential job in Ventura’s city government. The new manager will be responsible for healing Ventura from back-to-back adversities. Hiring the right candidate will affect Ventura for years to come. There can be no higher priority for the incoming City Council.

The Council should be slow, bold and thoughtful when hiring. They should select a replacement creatively by thinking outside the box. What they do now echoes in eternity.

Tell The City Council Not To Act In Haste When Hiring A City Manager

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’re email program will ready to write directly to that Councilmember.

Let them know what you’re thinking. Tell them what they’re doing right and what they could improve upon. No matter what you write, however, share your opinion. Participating in government makes things better because our city government is working for all of us.

Will hire the most influential job in Ventura Will hire the most influential job in Ventura
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Busting Ventura’s Budget Myths And Fantasies

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Winston Churchill

THE TRUTH IS IN- CONTROVERTIBLE, MALICE MAY ATTACK IT, IGNORANCE MAY DERIDE IT, BUT IN THE END THERE IT IS
—Winston Churchill

PENSIONS BUST BUDGETS
[Grappling with Money and Economic Reality]

The City Council race concluded with the reelection of Councilmen Andrews, Monahan and Tracy plus a new councilman, Eric Nasarenko.  Our new Councilman was elected as Deputy Mayor at the last Council meeting and will serve in that capacity next year.  We congratulate each member of the Council.

During the election campaign these candidates asked to be elected so that they could help to bring about changes in City policies to:

  • improve the development of business
  • create and maintain parks
  • seek to improve streets
  • finance libraries
  • find ways to provide housing for lower income citizens
  • improve the gateways to Ventura on the North and South of Highway 101
  • create a more favorable regulatory structure to encourage development of housing
  • improve services to our citizens.

One thing that stood out for all four of these Councilmen was their plea that if the voters returned them to office and elected Mr. Nasarenko then a newly constituted Council could and would be more cohesive, and bring about the promised changes.

Their promise of change is laudable, but nothing can or will be accomplished without the money and revenue to realize those changes. That objective requires sound financial planning—an accurate and realistic budget with realistic income and expense projections.

From Where Will The Money Come In This Year’s Budget?

On June 17, 2013 the old City Council was presented with a Proposed Budget for 2013-2014. They were shown a power point presentation, explained by our City Treasurer, which was based upon a printed 569 page budget book submitted by our City Manager, Mark D. Watkins, on April 23, 2013. This budget was approved on a vote of 6 to 1 after a 30 minute hearing.  Nobody from the public appeared to comment.

It’s hard to overcome a $1.6 million deficit, if this year’s budget has no new revenue items.

Council members asked few questions, but did make statements “for the benefit of the television public” concerning their views on this budget.  Nobody asked any questions about the projected income, or questioned the expenses in this complex document other than Councilman Andrews.  He voted “no” on the motion to approve a budget projecting a deficit of $1.6 million in our next fiscal year (July 1, 2013-June 30, 2014).  He explained his no vote – “We have cut too far and we need to look at public safety costs (police and fire pension benefits)”, meaning that the Council needed to look at ways to address the enormous pension costs before considering anything else such as new taxes.

Two Council members made statements that the general fund be unburdened by shifting some costs from the general fund to special tax assessment districts — taxes on real property.  Councilman Morehouse wants to shift a $500,000 public lighting cost to property owners, although conceded, when asked by Mayor Tracy, that this might also be funded by increasing sales taxes.  Councilwoman Weir commented at length about the special assessment costs imposed by other cities, such as Camarillo and Oxnard, for street repair, landscape maintenance, parks, public safety and libraries.  It was clear from these comments that their solution for our City deficit is to tax our way out of it.

Where’s The Transparency In The Budget?

This published budget is long, complex and difficult to read.  It consists of real number-clots, number slabs by department and sub-department(s) with pages of swimming line items in minute detail. It is difficult to read, interpret or understand as a financial planning document.   For example, members of VREG tried to determine how the projected income was calculated, and what the public pension costs (the largest item in the entire budget) would be for the next fiscal year.  The income information could not be found.  The pension data was sprinkled throughout all 589 pages and explained by esoteric line items and number for every department. The City Treasurer was asked about the complexity of this document.  He conceded that this was the equivalent of a “data dump”. A good management tool for a City Council it is not.

Focusing first on the income side.  The City Treasurer at the June hearing projected income of $86.7 million. This is $4.3 million more than was collected in 2012-13, an increase of 5.2%, twice the estimated U.S. Gross Domestic product estimate of 2.5%.

No explanation has been given on where this new source of revenue will come from.  That question was put to one candidate during a candidate forum in October.  A citizen asked, “What plan does the city have to grow their revenue by that amount of money?”

The answer was revealing (click on the quote to see video of his answer):

Ventura City Budget

There is a $1.6 million deficit in this year’s budget. As a higher percentage of Ventura’s General Fund is spent on police and fire pensions, less revenue is available for other services.

 

The projected deficit of $1.6 million and sagging income expectations are bad  The annual cost of  salaries and benefits  for public safety — police and fire —  is bad, and will grow to fifty-two (52%) of the total general budget  in the next fiscal year

Unfunded Pension Liability Is Staggering

Then there is the matter of how much will have to be paid to CALPERS to pay the unfunded pension obligations of City employees, police and fire personnel in addition to the annual operational costs.  In 2008 those unfunded obligations totaled $48 million.

In October, 2013, CALPERS reported that the market cost of those unfunded liabilities have increased by 360%, and  as of June 30, 2012, totaled $173,412,464.  CALPERS also added a note in that report that if the City wanted to terminate our contract with CALPERS it would cost us $600,421,434.

This is only going to get worse because CALPERS has announced it will consider adjusting (lowering) its expected rate of return in 2015 by 1/4%, and that the actuarial life of public safety personnel is not shorter than the average person, as previously assumed, but is the same.  That means these pensioners, starting at age 55, will get paid benefits over a longer period of time.

Cities nationwide are grappling with the growing retiree-benefit pension costs which are eating up more of city general funds.  That leaves less money to spend on parks, libraries, maintenance of trees and parkways, street lights and an asundry of public service projects.  Ventura is not alone. As a higher percentage of a City’s general fund is spent on police and fire pensions, less revenue is available for other services and projects.  Detroit, Stockton and San Bernardino are models of cities that refused to accept economic reality.

If the total unfunded obligation cost does not get the attention of our new City Council, then perhaps the most recent CALPERS Actuarial Valuations predicting our annual payment obligation will get their attention.  In 2013-14 the required annual contribution total will be $8,530,730.  In 2014-15 the required payment will increase to $9,489,593.  That is more than $1 million more to be paid out of the General Fund

  Editors’ Comments

Why there are no protests by the citizens of Ventura for changing the pension plan of public safety personnel?  What will it take to get Venturans excited and concerned about this problem?

When the question of pension reform was presented to our City Council members in the past the traditional answer was that this problem could only be addressed on a statewide level; Ventura will not be the “lead dog” and venture out into this new territory; and, as unfounded as it may be, that Ventura would no longer be competitive in hiring the best employees.

This unfunded obligation to public safety personnel is a budget buster.  Nobody wants to make a decision.  In the meantime, Ventura will reduce services, charge more fees (or taxes) from its citizens and ignore the obvious “train wreck” that is ahead because it either lacks the leadership or vision to act responsibly for the future of this City

All the campaign promises in the world are worthless unless and until this new Council establishes a realistic budget, and finds real solutions to our public pension obligations.  Trying to tax ourselves out of debt is not a solution. Requiring greater employee contributions to their own retirement (8 – 10%), and creating a defined contribution plan for new hires will solve the problem in time.

That is why you were elected!

Editors:

R. Alviani      K. Corse      T. Cook

J. Tingstrom  R. McCord   S. Doll

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