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Strategic Planning Retreat - Marilyn Snider, Facilitator - C
C I T Y O F H U N T I N G T O N B E A C H STRATEGIC PLANNING RETREAT July 29, 2011 * Huntington Beach Public Library Marilyn Snider, Facilitator—Snider and Associates(510)531-2904 Michelle Snider Luna,Recorder—Snider Education&Communication(510)735-7744 MISSION STATEMENT The City ofHuntington Beach provides sustainable quality services to maintain and enhance our safe and vibrant community. CORE VALUES (not in priority order) The City of Huntington Beach values . . . Responsiveness Accountability Quality customer service Honesty and Integrity Teamwork Fiscal sustainabA ty Community involvement Openness THREE-YEAR GOALS (2009-2012 . not in priority order) Maintain financial viability and our reserves Maintain, improve and obtain funding for infrastructure and equipment Maintain public safety Enhance economic development Improve internal and external communication HUNTINGTON BEACH * SIX - MONTH STRATEGIC OBJECTIVES July 29 , 2011 — February 1 , 2012 THREE-YEAR GOAL: MAINTAIN FINANCIAL VIAB/L/TYAND OUR RESERVES WHEN WHO WHAT STATUS COMMENTS DONE ON REVISED TARGET 1. In September 2011 Finance Director Implement refinancing of bonds. 2. No later than the Finance Director and Recommend to the City Council for action whether or September 6,2011 City Manager not to implement the redevelopment funding options City Council number 2,3,4 and 6. meeting 3. By October 1,2011 Finance Director and Finalize recommendations for RDA funding options and City Manager present to the City Council for action. 4. By October 1,2011 Finance Director Present the Long Term Financial Plan update to the City Council for review. 5. By October 1,2011 City Manager and Present to the City Council for action how to implement HR Director the recommendations regarding the two-tier pension system and employee pick-up of pension costs from consultant John Bartels for future contract negotiations. 6. By November 1, Deputy City Develop and present to the City Council for action a 2011 Manager and Public plan to utilize existing equipment replacement and Works Director capital fund balances to replace aging equipment and infrastructure. A 7. By January 1,2012 Deputy City Review existing reserve policies and propose possible manager and revisions for City Council review. Finance Director THREE-YEAR GOAL: MAINTAIN, IMPR®VEAND OBTAIN FUNDING FOR INFRASTRUCTUREAND EQUIPMENT WHEN WHO WHAT STATUS COMMENTS DONE ON REVISED TARGET 1. By November 15, Public Works Director, Determine feasibility of an assessment district and mak 2011 working with a recommendations to the City Council for action. consultant 2. By January 15, Public Works Director Provide an update to the City Council addressing 2012 changes in delivery of services and operations as a result of organizational restructuring. 3. By January 15, Public Works Director Present an evaluation of tiered water rates and provide 2012 a recommendation to the City Council for action. 4. By January 31, Public Works Director, Develop, implement,analyze and distribute results of a 2012 working with the public survey regarding funding of the infrastructure. Deputy City Manager and consultant B THREE-YEAR GOAL: MAINTAIN PUBLIC SAFETY WHEN WHO WHAT STATUS COMMENTS DONE ON REVISED TARGET 1. By December 1, Fire Chief(lead), Marine Finalize and implement transition of Public Safety 2011,contingent Safety Chief and Police Services. upon annexation Chief of Sunset Beach 2. By February 1, Police Chief(lead), Fire Conduct a feasibility study regarding providing 2012,contingent Chief and Deputy City lifeguard, police and fire dispatch, and SWAT service upon City Manager for Newport Beach and Costa Mesa and make a Council recommendation to the City Council for action. approval 3. By February 1, Fire Chief and City Complete discussions with the City of Fountain Valley 2012 Manager on opportunities to provide services to them and make recommendations to the City Council for action. 4. By February 1, Police Chief Conduct an analysis of the Police Department 2012 organizational structuring considering current staffing levels and make recommendations for change to the City Council for action. C THREE-YEAR GOAL: ENHANCE ECONOMIC DEVELOPMENT WHEN WHO WHAT STATUS COMMENTS DONE ON REVISED TARGET 1. By December 31, Planning and Building Complete the SW corner of Beach and Warner EIR and 2011 Director submit to the Planning Commission for action. 2. By December 31, Planning and Building Complete the SE corner of Beach and Ellis EIR and submit to 2011 Director the Planning Commission for action. 3. By December 31, Planning and Building Monitor the sale of the Pacific City property and, if sold,work 2011 Director and Deputy with the new property owner in expediting the development City Manager review process. 4. By December 31, Economic Complete the processing of the Center Avenue Skate Park 2011 Development Director and present to the City Council for action. and Planning and Building Director 5. By February 1, Deputy City Manager Hold three additional workshops with businesses providing 2012 Hall(lead), Economic information and outreach. Development Director and City Council Members Shaw, Carchio and Hansen 6. By February 1, Economic Complete the private-public study of branding opportunities in 2012 Development Director the city. and Deputy City Manager Hall D THREE-YEAR GOAL: IMPROVE INTERNAL AND EXTERNAL COMMUNICATION WHEN WHO WHAT STATUS COMMENTS DONE ON REVISED TARGET 1. Weekly Public Information Place on Facebook and Twitter at least two City of Officer Huntington Beach informational postings. 2. The day following Public Information Post a summary of City Council meeting highlights(e.g., each City Council Officer actions by the City Council)to the Surfnet and on a link to all meeting employees. 3. By December 31, Mayor and two City Hold three brown bag lunches with employees to provide 2011 Council members(on a updates on City Council priorities and issues. rotating basis) 4. By December 31, City Administrator Provide to all employees two quarterly updates on the 2011 and March and Finance Director budget situation, in person and with an interactive Q&A 31,2012 session. E S.W.O.T. ANALYSIS Strengths—Weaknesses-Opportunities-Threats WHAT ARE THE ACCOMPLISHMENTS OF THE CITY OF HUNTINGTON BEACH SINCE THE JANUARY 2011 STRATEGIC PLANNING RETREAT? Brainstormed List of Perceptions • Over 5000 people in the Summer Reading Program • Coastal Commission approval of the Downtown Specific Plan • Incident-free 4th of July • Maintained 99% customer satisfaction for emergency response • Received a clean audit opinion on our Comprehensive Annual Financial report(CAPR) • Provided 25 first time home buyers with the ability to buy a home • Launched ebook collection at the library with the support of Friends of the Library • Completed eight miles of arterial pavement rehab and 26 residential streets • Our employees, for the fourth year in a row,gave of themselves and were top fundraisers for a local charity • Providing funding for a new ten-unit affordable housing project • Submitted six projects to Orange County Transit Authority(OCTA) and awarded$700,000 in projects • Received a$50,000 grant to enhance DUI enforcement • Finished the first phase of clean up at Ascon toxic waste site • Broke ground on Costco • Developed a Public Works Work Order Management System • Implemented citywide fleet maintenance consolidation • Negotiated two new cell tower agreements (one for$123,000 in additional fees and one for$54,000 annually) • Completed 4th Annual HB Reads Program • Completed utility yard rehabilitation • Installed three self-service check out stations at the library • Implemented iPads for paperless agenda process • Got rid of bottled water at the dais • Completed the 8th ball field at the sports complex • New community garden • Re-codified the new charter with the Secretary of State • Successfully transitioned 193 acres of landscape from in-house to contract services • Obtained corporate sponsorship for two lifeguard towers • Contracted to provide outsourced helicopter services to other cities • Developed an online paycheck system for employees • Balanced the FY 2011 budget • Received and managed several federal,state and private grants • Added a new free shuttle service from City Hall to downtown to ease parking issues during the summer (Tuesday night downtown closure) • We implemented our Hometown Hero Program • Implemented a Fire Department Awards Program • Honored ten-time surfing champion Kelly Slater • Created a new Local Vendor Preference Program • Providing summer valet services in downtown parking structure • Received a clean audit option from the federal single audit 2 • Constructed a junior lifeguard storage facility built with private funds • Celebrated the Annual Festival of Folktales at the library • Completed the 2011 CERT(Community Emergency Response Team)with 122 graduates • Approved the formation of a housing authority • Implemented our branding of Huntington Beach • Maintained our financial reserves (approximately$43 million total) despite severe financial challenges • Implemented an Intranet portal in the Fire Department to improve internal communication • Opened discussion with several developers regarding our Beach and Edinger corridor • Received a Certificate of Excellence for Financial Reporting from the Government Finance Officers Association • Rehabbed Emerald Cove and solid it to their management company • Installed solar panels • Hosted 100,000 people or more for July 4th parade and fireworks • July 4th parade shown on TV • Developed and implemented a ten point plan to improve customer service for the business community and to be more business friendly • Facilitated a citywide EOC (Emergency Operations Center) table top exercise • Implemented a Volunteer Scheduling System for the library • Enrolled 2800 individuals in our summer Learn to Swim Program • Issued over 6300 building permits (6%over this time last year) • Opened the El Mercado Farmers Market serving the Oak View community • Implemented WiFi services at all branches • Increased Internet speed at all libraries by over 300% • Successfully consolidated reprographic,mail processing and copier maintenance services,saving the City over$100,000 annually • Working with the Public Works Commission,prioritized infrastructure needs and provided them to Council • City is in the process of selling off surplus properties • Building permit construction valuation up 8% ($70.5 million) over same time last year • Received Award of Merit and Outstanding Planning Award from the California and Orange County Chapters of the American Planning Association for the City's Beach-Edinger Corridors Specific Plan • Celebrated the 25th Annual Authors Festival WHAT ARE THE CURRENT INTERNAL WEAKNESSES/CHALLENGES OF THE CITY OF HUNTINGTON BEACH? Brainstormed List of Perceptions • Loss of institutional memory and knowledge • Inadequate staff to perform critical functions • Lack of funding for non-mandated training • Inability to successfully negotiate labor concessions • Fear of further layoffs due to fiscal challenges • Lack of funding to replace computer hardware • Lack of funding for employee enrichment • Aging and antiquated business processing system • Lack of funding to maintain and enhance quality services • Increasing expectations of remaining staff • Competing priorities • Unable to get a handle on our RDA during difficult times • Split Council low employee morale 3 • Lack of consensus on two-tier pension system • No Community Services Director • Lack of communication and understanding with bargaining associations • Difficult transition from Public Agency Retirement Systems reductions • Lack of funds • Lack of job security • Inability to bring a solution to downtown problems • Unable to get a handle on funds for our aging infrastructure • Unwillingness to look at revenue enhancements EXTERNAL FACTORS/TRENDS THAT WILL/MIGHT HAVE A POSITIVE IMPACT ON THE CITY OF HUNTINGTON BEACH IN THE COMING YEAR Brainstormed List of Perceptions • Measure M2 grant opportunities • Continuing E-rate grants funding for electronic services • Beginning to see investments by the development companies for the first time in two and a half years • Success of existing events that come to the city • More public involvement • Increasing sales tax revenue • Additional public-private sponsorships • Environmental grant to restore Bolsa Chica • Potential grant for Talbert Lake Project • Changing technological landscape • RDA lawsuit • Sharing services with neighboring cities • Improvement in visitor stream • Increased hotel occupancy • Interest in new events • Some projects starting in the Beach and Edinger corridor and in downtown • Increased events in the off season • Increased property tax values • Costco under construction • Development of the boardwalk • Prop 22 • Increased opportunities for energy efficiency and green projects • Enhanced collaboration among cities (e.g.,Association of California Cities for Orange County) • Better than expected investment returns at CaIPERS EXTERNAL FACTORS/TRENDS THAT WILL/MIGHT HAVE A NEGATIVE IMPACT ON THE CITY OF HUNTINGTON BEACH IN THE COMING YEAR Brainstormed List of Perceptions • Lack of adult supervision at the state level • RDA going away • Unrealistic investment returns for PERS • Federal budget cuts • Decreasing federal and state grants 4 • Increased regulation • Lack of commercial funding • Increasing demand for services • Increasing workers comp costs • Increasing fuel costs • 24-hour news cycle and the need for an immediate story • Changing technological landscape—possible increasing costs • Increasing senior population • Anger of public against public employees and elected officials • Expectation of immediate response to the public • Redistricting • High health care costs • Ensuing election • Uninformed or misinformed electorate • Lack of confidence in the community • PERS • Debt ceiling stagnation—unable to come to a decision • Further state raid of local fund • Continued increase in lawsuits against the City 5 PRESENTATION BY THE FINANCE DIRECTOR REGARDING THE OPTIONS TO ADDRESS THE BUDGET SHORTFALL IN FY 2011-2012 (1,684,000) Shortfall Options Estimated Value 1. Refinance Bonds $1,000,000 2. Reduce Staff/Operations by 50%* $650,000 3. Grant from MVB $70,000 4. Partial Deferral of Developer Tax Sharing Agreements** $500,000 5. Short-term Inter-fund Loan TBD 6. Other Revenue*** TBD *Assumes total reduction of 6 FTEs **Up to$2 million available ***As previously presented to City Council(4/18)—up to$300,000 CONSENSUS BY THE CITY COUNCIL ON OPTIONS FOR THE MANAGEMENT TEAM TO EXAMINE FURTHER AND REPORT THE RESULTS, INCLUDING RECOMMENDATIONS,TO THE CITY COUNCIL FOR ACTION Come back to the City Council with more information and recommendations. Remove Option #5 from consideration. There is the least amount of interest in Options #2 and #4. 1. In September 2011,the Finance Director will implement refinancing of bonds. 2. No later than the September 6, 2011 City Council meeting,the Director of Finance and City Manager will recommend to the City Council for action whether or not to implement the redevelopment funding options number 2, 3,4 and 6. 6 PRESENTATION BY THE PUBLIC WORKS DIRECTOR ON INFRASTRUCTURE FUNDING AND IMPLEMENTATION OPTIONS FUNDING OPTIONS • Tax 0 2/3 voter approval (1 person, 1 vote) o No nexus or specific benefit analysis legally required o "Flat" tax or"Proportional" tax can be proposed o Tax collected for duration of Program • Benefit Assessment District o Majority property owner approval by mail in ballot (based on proposed amount assessed) o Requires cost of improvements be apportioned to parcels that receive benefit IMPLEMENTATION OPTIONS • Pay As You Go o Collect Tax or Assessment 15T year and build the next year • Bond o Allows for earlier implementation of improvement o Allows pay back over longer period to reduce annual assessment o However;increases overall cost of program (Due to required benefit analysis,upfront finance charges and debt service) CITY COUNCIL DECISION REGARDING INFRASTRUCTURE FUNDING OPTION 1. By November 15,2011,the Public Works Director,working with a consultant,will determine the feasibility of an assessment district and make recommendations to the City Council for action. 2. By January 31, 2012, the Public Works Director,working with the Deputy City Manager and consultant,will develop,implement, analyze and distribute results of a public survey regarding funding of the infrastructure. 7 NEXT STEPS/FOLLOW-UP PROCESS WHEN WHO WHAT August 1,2011 City Manager Distribute the retreat record to attendees. Within 48 hours All recipients Read the retreat record. August 9,2011 Management Team Review the"Internal Weaknesses/Challenges' and (City Manager-lead) "External Threats"lists for possible action items. By August 15,2011 Department Heads Share and discuss the Strategic Plan with staff. September 6,2011 City Council Present the updated Strategic Plan to the public. City Council meeting (Mayor-lead) Monthly City Council Monitor progress on the goals and objectives and revise City Manager objectives(add,amend and/or delete),as needed. (Mayor-lead) Monthly City Manager Prepare and distribute the updated Strategic Plan Monitoring Matrix January 27,2012 Mayor Strategic Planning Retreat to: City Council - more thoroughly assess progress on the Goals and City Manager Strategic Objectives Management Team - identify new Three Year Goals Strategic Objectives for the first six months of the new Strategic Plan. 8 STRATEGIC PLAN ELEMENTS Marilyn Snider,Strategic Planning Facilitator * Snider and Associates(510)531-2904 "SWOT" ANALYSIS Assess the organization s: -Internal Strengths -Internal_Weaknesses -External Opportunities -External Threats MISSION/PURPOSE STATEMENT States WHY the organization exists and WHOM it serves VISION STATEMENT A vivid, descriptive image of the future—what the organization will BECOME CORE VALUES What the organization values,recognizes and rewards—strongly held beliefs that are freely chosen, publicly affirmed,and acted upon with consistency and repetition THREE YEAR GOALS WHAT the organization needs to accomplish(consistent with the Mission and moving the organization towards its Vision) -usually limited to 4 or 5 key areas KEY PERFORMANCE MEASURES What success will look like upon achievement of the goal SIX MONTH STRATEGIC OBJECTIVES HOW the Goals will be addressed: By when,who is accountable to do what for each of the Goals FOLLOW-UP PROCESS Regular,timely monitoring of progress on the goals and objectives;includes setting new objectives every six months ©1995 Snider and Associates 9