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HomeMy WebLinkAbout2012-01-17; City Council; MinutesMINUTES SPECIAL MEETING: CITY COUNCIL PLANNING SESSION AGENDA DATE: January 17, 2012 TIME: 8:30 AM PLACE: ENCINA WASTEWATER AUTHORITY BOARD ROOM, 6200 AVENIDA ENCINAS The Mayor called the meeting to order on January 17, 2012 at 8:30 AM. Present: Hall, Packard, Kulchin, Douglas, Blackburn. The Planning Session began with a brief clip of a local newscast that depicted Carlsbad as "the happiest place on earth". Public Comment: Diane Nygaard, representing preserve Calavera, spoke of Carlsbad achievements and the three areas that citizens thought the City could improve upon: controlling growth, managing traffic and acquiring more open space. Mayor Hall welcomed the participants and emphasized that two important issues for the City were empowerment and working with the Community. Session Facilitator Michelle Tamayo noted that the day's objectives were to 1) clarify critical issues and 2) create a high level strategic focus. The Council participated in an exercise in which they chose what the predominant issues facing our nation. They then heard from staff regarding the Citizen's Survey. Finance Director Chuck Mc Bride gave a presentation regarding the City's financial picture and ten year forecast. Council took a break from 9:20 A.M. and all returned to the Session at 9:32 A.M. Assistant City Manager John Coates and Deputy City Manager Cynthia Haas gave short presentations on the current trends: Complete Streets Aging neighborhoods Fostering the next generation of leaders Changing Recreation Needs Aging Population Population & demographic changes affecting land use City Council Planning Session January 17, 2012 New approaches to generating revenue Creating quality jobs In a new economy Sustainable organization Libraries in a digital age Increased public Involvement through technology Increased access to government through technology Council took a break from 11:37 A.M. and all returned to the Session at 12:46.M. Ms. Tamayo reported out the themes that she heard: Partnerships/relationships, Creative ways to do business. Balance, Social Places and Building Community, Commercialism, Innovation, Higher Education and that change is hard/now is the time. By using voting stickers Council prioritized several trends for staff to pursue in FY 2012-2013. 1) Creating quality jobs in a new economy. 2) Sustainable Organization. 3) Population and demographics change affecting land use. 4) Changing Recreation needs. 5) Complete Streets. 6) Fostering next generation of Leaders. Each Council person gave their five year vision of each of these trends. Council took a break from 2:36 P.M. and all returned to the Session at 2:47 P.M. Council and staff discussed how effective the day's planning was. Public Comment: Don Christiansen - Discussed the PACE program (household energy efficiency) and how it might pertain to San Diego County. He asked that the Council focus on open space and community gardens. Ed Scarpelli - Asked for maintenance of City Easements created by Sub Divisions built prior to 1975 with no Home Owners Association requirements. City Council Planning Session January 17, 2012 The Mayor noted that ail Planning Commissioners should attend the upcoming Planning Conference in San Jose. He also indicated that a majority of Council should attend the IG Conference the 17'^ to 20*'' of April. Mayor Hall adjourned the meeting at 3:40 P.M. Lorraine M. Wood, CMC t:ity Clerk The following documents were distributed for use in this Planning Session. All documents are on file in the Office of the City Clerk. Council Input for Planning Session 2012 Fulfilling the Community Vision Resident Survey Report, January 17, 2012 City of Carlsbad, Ten Year Financial Forecast, January 2012 General Fund Preliminary FY 2012-13 Forecast Trends Complete Streets Aging neighborhoods Fostering the next generation of leaders Changing Recreation Needs Aging Population Population & demographic changes affecting land use New approaches to generating revenue Creating quality jobs in a new economy Sustainable organization Libraries in a digital age Increased public involvement through technology Increased access to government through technology Community Vision City Council Planning Session January 17, 2012 10 New Rules for Elected Officials in Times of Economic Meltdown, Frank Benest Understanding California's Demographic Shifts, Stanford Center on Longevity What's the Future of Local Government? Presentation at Alliance for Innovation, October 2011 Local Government in the Wake of the Great Recession: Are Big Changes Ahead? Presentation at Alliance for Innovation, October 2011 The New PC Era: The Personal Cloud, Stephen Kleynhans, January 6, 2012 Council Input for Planning Session 2012 > Take a step back to clarify how we are changing. > What are the demographics of Carlsbad? > How do we keep Carlsbad as a vibrant City? > What do we want our City to be known for? > Keep us as the 50,000-foot level. > Staff: tell us the truth; tell us what you need & how we can help. > Don't tell us about your accomplishments. > Give us broad concepts...here's where the challenges are. > Tell us what you know, understand, need. > More time for Council to talk/debate/discuss issues. > Staff available to answer questions. > More talking, less presenting. > Don't need to review Athena. > Keep us out of the weeds. > We like the dots! Fulfilling the Community Vision City of Carlsbad City Council Strategic Goals Broad policy level goals in the areas critical to fulfillittg the coiumutiity vision 2012 Strategic Focus Areas Priority areas of focus for the next 12 to 24 months to support Council goals and the community vision CITY OF CARLSBAD Resident Survey Report City of Carlsbad EXECUTIVE SUMMARY For the fifth consecutive year, the City of Carlsbad and its Performance Measurement Team partnered with BW Research Partnership, Inc. (BW Research) to conduct its public opinion survey of residents. The main research objectives of the 2011 study were to assess residents' perceptions regarding satisfaction with city services, quality of life, sense of community, safety in their neighborhoods, city government, and city-resident communication. The city-wide survey of residents was administered by telephone (both land line and mobile) from September 13 to October 2, 2011 and averaged 20 minutes in length. A statistically representative sample of 1,000 Carlsbad residents 18 years and older completed a survey, resulting in a maximum margin of error +/- 3.08 percent (at the 95% level of confidence) for questions answered by all 1,000 respondents. KEY FINDINGS Satisfaction with City Services 94.4% 91.6% 88.9% 90.9% 91.5% Ninety-four percent of residents were satisfied with the job the City of Carlsbad is doing to provide city services, the highest percentage reported in any survey year. When asked about specific services, residents who provided an opinion reported the most satisfaction with the city's efforts to "Provide library services" (96%), "Maintain city parks" (95%), "Provide fire protection and emergency medical services" (94%), and "Trash collection services" (93%). Among those who provided an opinion, satisfaction with the city's efforts to "Manage traffic congestion on city streets" (77%) and "Manage residential growth and development" (72%) reached new highs in 2011. Quality of Life Also reaching a new high in 2011, 98 percent of residents rated the quality of life in Carlsbad as "Excellent" (64%) or "Good" (34%). Residents were also more positive than previous years regarding the direction of the quality of life. Only 11 percent indicated that the quality of life was "Getting worse," 68 percent viewed it as "Staying about the same," and 17 percent rated it as "Getting better." 100% 80% 60% 40% - 20% 0% -H 2011 2010 2009 2008 2007 [bv^] RESEARCH PARTNERSHIP Resident Survey Report City of Carlsbad 2011 2010 2009 2008 96.0% 94.5% 0% 20% 40% 60% 80% 100% Taken together, the number of residents who rated the quality of life in the city as "Poor" or "Very poor" or felt it was "Getting worse" was lower in 2011 than previous years. As a follow-up question, the 11 percent of residents (114 respondents) who indicated some measure of dissatisfaction with the quality of life were asked to report the number one thing that the city could do to improve quality of life. The most frequently cited response among the sub-group was to stop building and growth (27%), followed by "Fix the traffic problems" (16%) and "Increase/ improve police services" (11%). Safety The overall safety percentages reported by residents in 2011 were the highest of any survey year for both walking alone during the day and after dark in their neighborhoods. An overwhelming 99 percent of residents reported feeling safe walking alone in their neighborhoods during the day (86% "Very safe") and 90 percent of residents reported feeling safe walking alone in their neighborhoods after dark (54% "Very safe"). Confidence in City Government Eighty-four percent of residents indicated confidence in Carlsbad city government to make decisions that positively affect the lives of community members. Although composition shifted (i.e., a lower percentage in the "Very confident" category and a higher percentage in the "Somewhat confident" category), the overall confidence level reported by residents in 2011 was higher than any previous survey year. 100% 73.7% 75.7% 78.5% 2011 2010 2009 2008 2007 [bw] RESEARCH PARTNERSHIP Sense of Community Based on a seven-question series, 43 percent of residents were classified as having a "High" sense of community. Within the series, Carlsbad residents reported the highest level of agreement with items related to "Community values." Resident Survey Report City of Carlsbad Sense of community was positively correlated with each of the survey's key metrics: satisfaction with the job the city is doing to provide services, quality of life ratings, perceptions regarding the direction of the quality of life, satisfaction with city-resident communication, feeling safe walking alone in their neighborhoods (during the day and after dark), and confidence in city government. The top predictors of having a high sense of community were satisfaction with the city's efforts to provide recreation programs and positive ratings for Cadsbad's quality of life. City-Resident Communication and Information Sources Eighty-seven percent of residents were satisfied (48% "Very satisfied") with the city's efforts to provide information to residents through its website, newsletters, water bill inserts, and related sources of information. The most utilized sources for information about city issues, programs, and services were television news (77%), the community services and recreation guide (73%), and the city's website (71%) •Very satisfied B Somewhat satisfied • Somewhat dissatisfied •Very dissatisfied • DK/NA 5.7% CONCLUSIONS Carlsbad Satisfaction High while California Satisfaction Languishes Earlier this year, California residents gave the state its lowest quality of life rating^ in almost 20 years. Other regional and national measures of quality of life and resident well being have been equally dismal as the economic downturn and recent government scandals appear to be having a substantial negative impact on resident satisfaction and quality of life ratings. While statewide and national metrics of well being and resident satisfaction have declined, Carlsbad residents have remained remarkably positive about the city and its quality of life. Overall levels of satisfaction with city services have increased over the last two years while reaching historically high levels. Cadsbad residents also remain almost universally positive about the quality of life offered in the city, with 98 percent rating it as either "Excellent" or "Good," also consistently increasing over the last four years. According to the Pew Research Center, "By almost every conceivable measure, Americans are less positive and more critical of government these days"^ and yet Carlsbad residents have bucked statewide and national trends and have shown an increase in their confidence in city government, with more than four out of five respondents "Somewhat confident" or "Very confident" in city government. ^ According to a joint UC Berkeley and Field Poll completed in February 2011 with 898 registered voters. For more information, go to http://igs.berkeley.edu/reports/Rls2370.pdf ^ Pew Research Center, April 2010, for more information go to http://pewresearch.org/pubs/1569/trust-in- government-distrust-dlscontent-anger-partlsan-rancor [bw] RESEARCH PARTNERSHIP Resident Survey Report City Of Carlsbad The question becomes, how has Carlsbad been able to maintain - and in many instances increase - resident satisfaction among multiple metrics in an economic environment that has been historically challenging? The results of the survey show that Carlsbad has maintained high levels of satisfaction with many of the City's specific services like library services, fire protection and police services, with several of these services reaching new highs for satisfaction either in 2011 or 2010. However, potentially of greater significance are those specific services that have historically received relatively low satisfaction, managing growth and development as well as managing traffic congestion that have both consistently improved over the last five years, going from as low as 57 percent to over 70 percent total satisfaction for both issues. Carlsbad Communication Efforts Another potential explanation for Carlsbad's high satisfaction across multiple measures can be traced to residents' overall level of satisfaction towards the city's communication efforts. With close to the majority (48%) "Very satisfied," 87 percent of indicated they were satisfied with the city's communication efforts. In our experience with other community resident surveys, satisfaction with a city's communication efforts is on average ten percentage points below overall satisfaction with city services. In Carlsbad, the differential between overall satisfaction with city services and satisfaction with the city's communication efforts is only seven percentage points. Satisfaction with city- resident communication is yet another example of Carlsbad surpassing norms, resulting in a strong overall resident satisfaction profile. [bw]^, ESEARCH PARTNERSHIP 1/17/2012 Ten Year Fitiancial Forecast lational Economy lobai Fed Polic 1/17/2012 iifiifl EcoiiiPin Quarter-to-Quarter Growth in Real GDP Unemployment Remains High Housing Slow Recovery Governor's Proposals 1/17/2012 Overview Regional Economic Trends • USD Economic Indicator • Local Unemployment • Commercial Vacancy 1/17/2012 130 125 120 lis 110 105 100 Index of Lvading Economic Indicators San Diego County, 2008- 2011 JOS J09 JIO Jll BucJget Projected Variance Property Tax $48,;7:? $•18,107 IS 16!)) Sales Tax .'7,S!>1 408 TOT ll,Oi-.S .17,04', // Franchise 4,b:'.2 4,S28 (104) Business License :',,4s.? ? ?b All other S18,180 S17„97S (S20S) Total $113,569 $113,905 $336 1/17/2012 Assumptions • No Change in Timing of New Facilities • Infrastructure Replacement Transfer remains at 6.5% of GF revenues • RDA Closure • PERS Stabilization Remains • BVS Effects are not considered • Golf Course contribution decreasiAe— _ 1/17/2012 Transient Occupancy Taxes 1/17/2012 Franchise Taxes 10 Year Forecast 1/17/2012 General Fund Preliminary FY 2012-13 Forecast Actual Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 IREVENUES 114,765 113,905 116,276 120,248 125,540 128,118 134,268 138,892 142,600 147,075 150,231 155,784 -2.7% -0.7% 2.1% 3.4% 4.4% 2.1% 4.8% 3.4% 2.7% 3.1% 2.1% 3.7% Total Revenues 114,765 113,905 116,276 120,248 125,540 128,118 134,268 138,892 142,600 147,075 150,231 155,784 {EXPENDITURES BASE: 98,951 101,584 104.605 106,937 109,629 112,413 115,305 118,372 121,513 124,742 128,046 131,446 -2.1% 2.7% 3.0% 2.2% 2.5% 2.5% 2.6% 2.7% 2.7% 2.7% 2.6% 2.7% Capital outlay 0 110 150 200 250 300 350 400 450 500 500 500 Contingency 32 500 500 500 500 500 500 500 500 500 500 500 Transfers: Innovation Project (HCMS) 350 PERS Stabilization 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 Infrastructure Replacement (6.5%) 7,175 7,382 7,558 7,816 8,160 8,328 8,727 9,028 9,269 9,560 9,765 10,126 Golf Course Ops Transfer 1,406 920 850 750 700 700 700 700 700 700 700 Miscellaneous Transfers 1,135 215 221 231 240 250 255 265 275 286 296 305 LLD #1 Transfer 254 473 591 614 642 675 711 748 784 823 864 890 Golf Course Land Transfer Total Base 107,897 113,070 115,944 118,549 121,572 124,565 127,948 131,413 134,891 138,511 142,071 145,866 ADDITIONAL BUDGET ITEMS: -6.3% 4.8% 2.5% 2.2% 2.5% 2.5% 2.7% 2.7% 2.6% 2.7% 2.6% 2.7% Program Options 1 Budget Savings (note 1) New Facilities: Fire Station #3 (Add'l Staff) 34 35 36 37 38 39 41 42 Civic Center (net of vacated facilities) 1,100 1,134 1,169 Maintenance Operations Center 404 415 427 441 455 469 483 498 Safety Training Center 27 54 55 57 58 60 62 64 66 68 70 Alga Norte Park (net of fees) 760 781 802 825 852 879 906 934 963 Alga Norte Aquatic Complex (net of fees) 440 452 464 478 493 509 525 541 558 Poinsettia Park-Phase 2 500 516 532 549 566 583 Leo Carrillo Park Phase 3 150 155 160 165 170 175 Veteran's Memorial Park 751 774 798 ITOTAL EXPENDITURES 107,897 113,097 115,999 119,804 123,299 126,341 130,425 133,969 137,527 143,081 146,782 150,723 -6% 5% 3% 3% 3% 2% 3% 3% 3% 4% 3% 3% {REVENUES OVER (UNDER) EXP 6,869 808 278 444 2,241 1,777 3,843 4,922 5,073 3,994 3,449 5,061 Percent of Budget 6% 1% 0% 0% 2% 1% 3% 4% 4% 3% 2% 3% Trends CITY OF CARLSBAD 2012 GOAL SETTING Demographics: Complete streets Aging neighborhoods Fostering the next generation of leaders Changing recreation needs Aging population Population & demographic changes affecting land use Economy: New approaches to generating revenue Creating quality jobs in a new economy Sustainable organization Technology: Libraries in a digital age Increased public involvement through technology Increased access to government through technology Demographics CITY OF Issues Briefs Trends & Implications CARLSBAD 2012 GOAL SETTING Trend Description Community values are shifting from designing roads to accommodate maximum vehicle traffic to designing roads that meet the broader needs of the community. This new approach, called "complete streets," recognizes that streets are an important part of the livability of a community and ought to be for everyone, whether young/old, motorists/bicyclist, walker/ wheelchair user, bus rider/shopkeeper, tourist/resident. The concept also recognizes that designing streets can be used to create destinations that encourage economic development. More than 300 jurisdictions nationwide have adopted complete streets policies and ordinances. Affected departments Transportation, Community & Economic Development, Police, Fire, Housing & Neighborhood Services, Parks & Recreation How this affects us Challenges • Carlsbad's existing roadways reflect the vehicle-centric approach of the past often at the expense and safety of other modes. • Roadways provide great levels of service for motorists their sheer size and speed often creates challenges and constraints for pedestrians, bike riders, transit users and people with disabilities. Opportunities • Realization of key elements of the community's vision for the future (small town feel, recreation, healthy outdoor lifestyles, increased connectedness, business diversity and tourism, sustainability, neighborhood design, revitalization and livability) • Carlsbad Boulevard presents several opportunities for demonstration projects that could enhance tourism, recreation, healthy outdoor lifestyles and coastal beach access. • Increased visitation to Carlsbad Village, beaches and neighboring areas through improved walkability and bikeability, leading to increased foot traffic and opportunities for local businesses to expand and grow • SANDAG TransNet "Active Transportation" Grant money is available Benefits • Increased transportation choices and opportunities • Economic revitalization and improved safety • Quality of place by making streets vibrant and livable • More walking and bicycling (active transportation) • Public health and air quality Status Complete Streets will be incorporated into Envision Carlsbad (GP/LCPA/Zoning Update Program) _ _ Example of existing "complete streets" concepts on Carlsbad Boulevard Existing conditions that constrain pedestrians and bicycles, favoring vehicles. Oft«T e>m- tj^^* see terAii- 1>R£>POSei> (FROM TAMA12ACK. TO CANNON) OPTION 1 m»mmist€im»mf,m, SHEETS Example of Carlsbad Boulevard as a "complete street" with added parking, enhanced walkways and bikeways, all within the existing right of way. 1^ CLOSE UP: Example of Carlsbad Boulevard as a "complete street" with added parking, enhanced walkways and bikeways, all within the existing right of way. Existing view of State Street entrance to the City of Carlsbad Example of State Street entrance to the City of Carlsbad using "complete streets" features, including a roundabout, dedicated bike and pedestrian paths and creating a sense of place. C 1 T Y O F ^ CARLSBAD 2012 GOAL SETTING Issues Briefs Trends & Implications Trend Aging neighborhoods Description New neighborhoods continue to be built in Carlsbad, while many neighborhoods are aging and require attention and focus to prevent or reverse decline. Many Carlsbad neighborhoods have been in existence for 50 years or more, and several (such as the Barrio and Ponto) are showing signs of decline or neglect. Affected departments Housing & Neighborhood Services, Police, Utilities, Transportation, Community & Economic Development, Library, Parks & Recreation How this affects us Status Virtually everyone in a community is affected in some way by an individual neighborhood's health and relative vitality, including homeowners, renters, schools, churches, business, commercial centers, nonprofit organizations and the local government. Declining or neglected neighborhoods are often associated with: • the loss of property values; • increasing crime and higher costs to address these unsafe environments; • increased need for city or other public services; • decreasing school test scores or lack of quality school facilities; • deteriorating/aging infrastructure; • deferred maintenance of facilities and/or residences, which results in higher costs at a later date to repair or replace; • loss of "curb appeal" to attract private investment; • low sense of community and lack of social support; and/or • reduced or lost tax revenue. Community problems related to aging neighborhoods are becoming increasingly more complex, are often expensive to address and may require multifaceted solutions. City is currently setting funds aside for future replacement or repair of infrastructure throughout the city, and staff will continue to monitor this program for effectiveness. Several neighborhood service programs have been developed, and more are under development to address signs of decline or problem areas in older neighborhoods. More attention and resources will be required to address aging neighborhood issues in the future. issues Briefs Trends & Implications CITY OF ^ CARLSBAD 2012 GOAL SETTING Trend Description Fostering the next generation of leaders A strong, diverse base of community leaders is essential to a healthy city government. Traditional methods of involving the public in city affairs tend to draw from a more narrow segment of the population -- primarily those who have the time and interest in attending public meetings and digesting highly technical government documents. As a result, some segments of the community, especially young people and families with children at home, do not have as many opportunities to participate in leadership positions such as city boards and commissions or even ad hoc committees and public workshops. Without gaining experience participating in their city's issues at this level, it is unlikely these segments of the public will be able to develop the kind of leadership skills and experience needed to help the fill future leadership voids in our community^ Affected departments Al How this affects us status Benefits • Encouraging the development of new leaders who reflect the full array of community demographics and interests would help ensure the city can meet the future needs of the entire community. • Developing leadership skills takes time. Enabling people to start the process earlier will result in more experienced, effective community leaders ready to serve the future needs of the city. Challenges • Existing opportunities are at times, locations and in formats not convenient for these segments. • Their interests and priorities are elsewhere/difficult to get their attention and commitment to get involved. • They have limited time available for community leadership activities. • The city partners with Junior Achievement on the City Stuff program, a third-grade local government curriculum. • The city recently launched a Citizens Academy leadership module for graduates interested in continuing to develop their leadership role with the city and community. • The city has encouraged high school student participation in Citizens Academy and the Envision Carlsbad Committee. • Staff is currently working with Junior Achievement on a high- school level curriculum focused on local government. Issues Briefs Trends & Implications CITY OF ^ CARLSBAD 2012 GOAL SETTING Trend Description Changing recreation needs Changes in the size and composition of California's population, more than anything, will drive the impacts on the delivery of parks and recreation services in the coming years. While the baby boomer generation relied on traditional recreation facilities to meet their needs, the 18-40 year olds today trend toward extreme sports and adventure recreation. As the aging population increases and people live longer, older adults will have different needs than previous senior citizens. In order to accommodate the impacts of changing demographics, public facility design trends have evolved over the past few decades to provide multi-generational opportunities for recreation in one location. Affected departments Parks & Recreation How this affects us Existing park and facility master plans may no longer reflect the current and anticipated recreational needs ofthe community. Evaluation and analysis of park and facility plans would require public outreach that is balanced and provides factual and detailed information. Any recommended changes in plans should consider their impact on the pyramid model of cost recovery. The priority and timing of facility development may not be consistent with the need. Status Accepted pyramid model of cost recovery in 2009 Alga Norte Community Park has been master planned, designed and is scheduled to be open in 2013 Aviara, Pine and Poinsettia parks all have planned future phases to include community centers/gymnasiums, similar to Calavera and Stagecoach parks Veterans Park and Robertson Ranch Parks have yet to be master planned i4r CITY OF CARLSBAD 2012 GOAL SETTING Issues Briefs Trends & Implications Trend Aging population Demographic data collected and analyzed for the recent Envision Carlsbad report show that the Carlsbad senior population, identified as age 55 and older, constitutes about one-third of Carlsbad residents. The identified trend shows the senior population growth will increase at a faster rate than all other age groups in Carlsbad between now and 2050. Older adults are demonstrating different expectations for services and life experiences. Affected departments Parks & Recreation, Library & Cultural Arts How this affects us Increased demand for senior services Changes in services (technology, wellness, lifelong learning) With expectations for services and life experiences evolving, so must our service delivery to remain relevant to this population Need to diversify programs and services at libraries, recreation centers, and parks to meet the needs of two generations of seniors • The 50+ population is more active and engaged than the population traditionally considered "seniors" Need to evaluate continuous learning and wellness experiences that integrate with their active lifestyles (time of day, type and combination of offerings) Determine if our current senior center operating model has the capacity to meet future needs Need to incorporate senior programs into existing facilities and libraries; may require a change in the current facility/resource allocation This demographic will compete with other groups for distribution of resources status Existing dedicated senior center offers a wide variety of recreational, social, and nutritional programs and services Three libraries afford seniors the opportunity to experience lifelong learning, technology training and community engagement Issues Briefs Trends & Implications tf C I T Y O F CARLSBAD 2012 GOAL SETTING Trmd Population ami demographic chmges affecting land use Description National and regional forecasts indicate significant changes in population and demographics over the next 20 to 40 years. These forecasted changes will greatly affect demand, type, intensity, and density of future residential, commercial and office/industrial development. These trends, coupled with Carlsbad's limited amount of remaining vacant and under-utilized land, will pose significant policy and implementation challenges for the city. Affected departments Community & Economic Development, Housing & Neighborhood Services, Finance, and all infrastructure and service providing departments How this affects us • Challenges with accommodating future growth and changes in product type, density and intensity • Balancing competing land use demands - housing versus jobs and economic uses • Balancing community values and neighborhood character with economic and housing needs • Neighborhood conflicts resulting from infill of vacant sites, and intensification and reuse of existing developed buildings or sites • Need for flexibility in our land use and development policies and standards, while maintaining our high quality • Managing future land use and development demands within our current growth management policies and standards status • Envision Carlsbad - GP/LCPA/Zoning Update Program - underway (completion date: end of 2013) • Existing 2005-2013 Housing Element - Ongoing implementation of programs (Quarry Creek, Barrio, minimum mixed-use and residential densities, etc.) • Infrastructure Master Plan Updates (sewer, water, drainage) • Growth Management Facility Plan Updates (as needed for major projects; Quarry Creek, Dos Colinas, etc.) • Village Revitalization Partnership - current initiative underway to partner with Village property owners to create a sustainable program in the Village to ensure local re-investment and economic development in the Village area. Economy CITY OF ^ CARLSBAD . 2012 GOAL SETTING Issues Briefs Trends & Implications New em^wiches togenermOaig revenue Description Decreasing revenues from traditional sources such as property tax, sales tax, community giving and earned income have led some cities to adopt new approaches to generating revenue. Strategies vary widely, but include selling advertising space on city assets, setting up new commercial enterprises at city facilities, selling event sponsorships, and pursuing grants and donations from private and community foundations. Affected departments All How this affects us • While these efforts present an opportunity to provide much needed funding for city services, cities must also be aware of the possible pitfalls of these approaches. • Some may see it as a public entity choosing to compete with \ local private businesses for customers and dollars. j • In some situations it may even pit a city against a local non-profit for funding from a foundation. • The efforts to raise funds and pursue sponsorships by our departments are not coordinated or centralized. Status • Recently, a coffee kiosk has been opened at Dove Library to serve patrons. The kiosk is operated by a private vendor. • Programs such as TGIF Jazz in the Parks and Parks & Recreation's Dinner and a Movie have experienced reduced giving, resulting in additional pressure to generate funding to retain current levels of programming. • A citywide policy to guide the pursuit of sponsorships is in development. Issues Briefs Trends & Implications <<CC CITY OF ^ CARLSBAD 2012 GOAL SETTING Trend Creating qualityjobs in a new economy Description studies are showing that more and more companies in the new economy have moved operations off-shore to reduce costs and remain competitive. This has resulted in fewer companies expanding operations in the U.S. In addition, companies are finding it more difficult to find talent to support innovation that will help them remain competitive. This has led cities and economic development organizations to shift their strategies. Economic Gardening "Economic gardening" is a new model that seeks to create jobs and enhance competitiveness by supporting targeted local companies with access to technical information and other resources that would not otherwise be affordable. Talent Recruitment Traditional economic development efforts have focused on attracting companies to the community. New strategies focus on helping existing companies attract the talent and innovators they need to grow and compete in the global economy. This also includes attracting entrepreneurial talent that will start and relocate companies to the community. Education Hub studies show that when a city becomes a hub for higher education and research, high quality jobs are created. By partnering with institutions of higher learning and research organizations a community becomes a magnet for new talent and attracts companies looking to parlay local research into marketable products and services. Affected departments Community & Economic Development, Finance, Ubrary, IT How this affects us As Carlsbad emerges from the recession, we need to build on the diversity of our local economy and established industry clusters. This will encourage growth and consequently reduce local vacancy rates and enhance property values in office, industrial and R&D real estate. status Many of Carlsbad's largest and most innovative companies were started by people that wanted to live in Carlsbad. Our focus on attracting talent can help bring in the innovators and entrepreneurs who will create Carlsbad's next generation of great companies. Meeting with existing companies in targeted industries. The difficulty in attracting talent is mentioned as a barrier to their future growth. Working with the Carlsbad Chamber of Commerce to coordinate economic development efforts. Marketing library resources to local businesses. Implemented on-line property search tool to help companies with expansions and relocations to Carlsbad. Meeting with new prospects for expansion, relocation and business start-ups. Meeting with local learning institutions to explore partnership opportunities. EDWARD LDWE FOUNDATION Economic Gardening Economic Gardening An entrepreneur-oriented approach to economic prosperity It may seem ironic in today's global economy, but place has become more important than ever. Natural resources, low-cost labor and tax incentives used to be key drivers to regional prosperity. Today, however, the abiiit}' to support innovative companies and entrepreneurs is also a critical com.ponent to economic growth. "We're living in a period of exponential economic change, which means economic developers and community leaders must serve businesses differently," says Mark Lange, executive director of the Edward Lowe Foundation in Cassopolis, Mich. "That's where economic gardening comes in — and why it takes a neutral third party like the foundation to get involved and be a catalyst for change." Economic gardening takes an entrepreneurial approach to job creation. Sometimes referred to as a "homegrown" or "inside-out" strategy, economic gardening focuses on helping existing growth-oriented companies become larger. "We're not saying that attraction and recruitment activities should be discontinued, but they've been overemphasized, due partly to competitive and political pressures," Lange says. "A balanced approach is the key to building effective programs and strategies. -i-'- ''i"':' Economic gardening helps establish an entrepreneurial culture within communities and sets itself apart from other economic-development strategies by its target audience, tools and timing of services. Lor example, traditional economic- development programs offer tax incentives, workforce development services and infrastructure improvements to attract and retain companies that may be considering relocation — strategies that emphasize movement rather than growth. At the other end of the spectrum, there are a variety of small-business- ECOIXOMK: GARDENING I Edward Lowe Foundat tion development organizations that serve startups and small businesses by providing assistance with operations and management issues such as business-plan review, cash-flow analysis and succession planning. In contrast, economic gardening deals with growth- oriented companies and strategic issues like penetrating new markets, refining business models, developing teams and embracing new leadership roles. Economic gardening provides information and decision-making assistance to companies that are transitioning from small to large, with services customized to meet the just-in-time needs of this audience. Communities currentiy nurmre their economies through recruitment, workforce development and small- business development. "But there is a fourth dimension we need to add," Lange says. "Growth-company development is the missing piece, which is why the Edward Lowe Foundation is an advocate for economic gardening." Second-Stage benefits Some of the greatest retorns of economic gardening come from working with second-stage entrepreneurs — companies that have advanced beyond the starmp stage with the intent and potential for additional growth. (Second-stagers typically have 10 to 99 employees and generate about $1 million to $50 million in annual revenue, depending on their industrj^.) Many people associate second stage with gazelles (companies with extremely high growth). Although gazelles pass through second stage, which makes it a good place to find them, they're only part of the story. Second stage also includes: 1) companies with potential for high growth and 2) companies generating steady growth that may be less dramatic than gazelles but remains impressive. This growth orientation is a critical Small Business Oevefopment Business Attraction * Recruitment distinction that separates growth companies from other types of small businesses. For example, some individuals may be self-employed because they like being their own boss, but job creation isn't part of their game plan. Then there are small businesses that provide jobs in a community, but their growth is somewhat restricted by the local trading area they serve. In contrast, second-stage entrepreneurs are significant job creators because of their focus on growth. And because they often have national or global markets, they bring outside dollars into the community. "It's time we treat growth-oriented entrepreneurs differentiy than small businesses — giving them their own place in the overall scheme of economic development," says Lange. "The foundation can play an important role by helping community organizations collaborate more effectively to ser%^e this audience." According to Doug Tatum, author of "No Man's Land," entrepreneurs face four key challenges as their companies transition from small to big: • Market adjustments. • Outgrowing early management teams and their role as founders. • Scaling business models to handle growth. • Understanding capital requirements. "It's hard for entrepreneurs to resolve these issues on their own — or even identify them accurately," says Dino Signore, manager of program development at the Edward Lowe Foundation. "For one thing, moving from Stage 1 to Stage 2 brings on an entirely new set of challenges. Entrepreneurs face more responsibilities, and everything becomes magnified. Their core competencies become stronger, but so do their weaknesses." Making things even more difficult, changes in markets, management, business model and money arc interrelated, Signore continues. "Being out of sync in one area can cause you to be out of sync in others." These conditions manifest themselves in a variety of ways. Some common symptoms: not being able to fulfill commitments to customers; quality problems become more EC:ONOMICCJAm)ENING j Edward Lowe Foundation pressing; and decisions become increasingly complex and no longer intuitive. In addition, reporting systems no longer provide good information, and founders feel they're no longer able to lead every aspect of the business. To help entrepreneurs resolve growing pains, economic-gardening organizations employ a variet}' of techniques. These fall into two broad categories: decision making and information. Making better decisions Entrepreneurs need help with strategy, identifying what they're good at and finding a sustainable competitive advantage. They also need to shift their leadership role as the company grows, build a strong management team, create a clear vision, and then communicate it consistentiy. This is where temperament tools can help. Understanding temperament (personality preferences, such as extroversion and introversion or how people process information), can help entrepreneurs recruit high-performance teams that balance their own inherent strengths and weaknesses. Being aware of temperament can also ensure employees are in positions that enable dneni to play to their strengths. Sophisticated information Economic-gardening specialists can also provide valuable information by using business-intelligence tools that smaller or younger companies either can't afford or don't know about. For example: • Sophisticated databases can identify market trends, potential parmers or competitors and unknown resources often buried deep inside industry information. • Geographic information systems can track customer expenditures, psychographics and demographics and then create color-shaded, density maps that profile customers or show gaps in market coverage. • Search engine optimization tools can raise visibility in search engine results and increase traffic on websites. • Social media monitoring applications can track websites, blogs and online communities to see what people are saying about companies and products — and reveal important market influencers. "Yet it's important to note that these tools aren't a panacea to entrepreneurs' problems," Lange says. Businesses are biological entities, where there is constant flux due to employees, customers, markets and economic conditions, he explains. Applying mechanical rules (where the same process always yields the same output) won't work. Instead, economic- gardening specialists leverage these tools to find new ideas and approaches. "What's more, economic-gardening tools are constantiy changing," Lange adds. "The ones generating today's breakthroughs will become either Working with entrepreneurs updated or outdated quickly" The tools and techniques described here highlight the "one-to-one" approach in economic gardening and set the stage for an ongoing relationship between a support organization and individual companies. Another important aspect of economic gardening is connectivity (a "one-to-many" approach), which uses peer-to-peer networks, recognition events, just-in-time workshops and discussion groups to attract growth entrepreneurs and serve their immediate, pressing needs. "Activities like these are critical to launching and maintaining an overall economic-gardening strategy," says Lange. "They nurture the culture and connectivity- that is so important to growing regional economies." To learn more about the Edward Tunve Foundation, visit ivwiv.edwardlotve.org or call 800-232-5693. The need for speed Economic-gardening specialists function much like an outsourced team of experts.Their goal is not to dictate or implement solutbns, but to help CEOs identify issues that might be hindering gxwvth — and point them to new tools, business concepts and information to make better decisions. "Economic gardening is about applying just-in-time, high-end expertise rather than counseling," says Steve Quello. founder of CEO Nexus in Winter Park, Fla, and an economic-gardening expert "Entrepreneurs know more about their companies than anyone else. Give them a better view of the big picture, and they can make adjustments themselves." One challenge is getting up to speed with entrepreneur. During initial meetings, considerable time is spent discussing an entrepreneur's background, company structure, goals and grov^rth issues.Then. as economic-gardening specialists learn more about each company, they become more efficient at delivering actionable information. It's a back- and-forth. ongoing relationship. To gain trust and truly make a difference, economic-gardening organizations must act like the entrepreneurs they serve. "That means being nimble and nonbureaucratic." Quello explains. "Entrepreneurs need answers in hours or days, not weeks or months." the new economic DEVELOPMENT PLAYBOOK By Christian S. Johansson SEARCHING FOR ANSWERS TO AN ECONOMIC DEVELOPMENT RIDDLE a t the beginning of 1939 with the world on the precipice of war, Winston Churchill famously said, "I cannot forecast to you the action of Russia. It is a riddle, wrapped in a mystery, inside an enigma." what Churchill, nor anyone else at the time could have foreseen were the years of war, suffering, and record economic growth that followed, as well as the role that Russia would inevitably play in changing the course of U.S., and our world's, history. Today, more than 70 years later, our world faces a different kind of enigma, but one that is equally challenging to forecast - a global economic struggle thai is dramatically redefining our collective pros- perities as countries, as companies, and as citizens. While we cannot predict with certainly when or how we will emerge from the economic malaise, 1 believe there are several axioms we can employ that will help our nation prepare for better days ahead. • First, talent drives innovation, which then drives economic growth. The single most important economic performance "input" is a smart and talented workforce. • Second, successful "organic gardening" is the most significant contributor to sustained economic growth. Moreover, small businesses have historically been the key drivers of the vast majority of job creation and investment. • Third, the speed of globalization is rapidly forcing the need for specialization and a focus on core regional competitive advantages. The BioMaiyknd Pavilion at the BIO 2011 Internaaonal Conference in Washington, D.C. FOLLOWING A NEW ECONOMIC DEVELOPMENT PLAYBOOK Recognizing what successfully drives economic growth fundamentally changes the approach that economic developers use to build place-based economies. Observing and quantifying them allows us to shape policies and best practices that position our states' and our counii7's economies for success today and tomorrow. After three years as Maryland's chief "jobs" ex- ecutive, I believe the most important role an eco- nomic development agency can play is as conve- ner, coordinator, and collaborator Having run a number of start-up companies and worked in strategic consulting and regional development pri- or to govemment, the strategies put forth in this article originate from proven practices of venture- backed entrepreneurs more so than those tradition- ally practiced by economic development organiza- Christian Johansson was appointed Maryland's secretary for business and economic development in 2009. Before joining the agency, he served for six years as CEO of the Economic Alliance of Greater Baltimore. An entrepreneur and manage- ment consultant, he also sen/ed on President Obama's transition team, (Cjohansson® choosemaryland.org) FOCUS ON TALENT, HIGH GROWTH COMPANIES & COMPETITIVE ADVANTAGES Job creation is the top priority in our nation today. This article lays out a plan to grow jobs by attracting and refciining talented workers; targeting resources on high impact, fast growing companies; and developing an economic development plan around core advantages and assets. Economic Development Journal / Fall 2011 I Volume 10 I Number 4 dons or officials. A three-pronged strategy focused on talent, high-growth companies, and core competitive ad- vantages is what I call "The new Economic Development Playbook." 1. MAKE ATTRAaiNG. DEVELOPING, AND RETAINING TALENTED PEOPLE IN YOUR COMMUNITIES YOUR TOP ECONOMIC DEVELOPMENT PRIORITY Investing in education is one of the single most effective ways to lower long-term unemployment, retain companies, and attract new ones. Surveys of corporate executives consistently find that a strong workforce and talent are major factors in site selection. From 2007-2010 (see Chart 1), the gap between education levels and un- employment rates has widened even further.. Students gather on ihe campus al Salisbury University, CHART 1 Unemployment Rates by Education Level Widening Gap Between Education Level and Unemployment Since Recession Began Unemployment Rate for Population Aged 25+ 18.0 - - - Dec-07 aiDec-10 All persons aged 25+ No H.S, diploma H.S. degree, With college no college degree Source: Bureau of Labor Statistics, Current Population Sun/ey At the same time, higher ecJucation affordability is be- coming an issue for many students. Over the past five years, while states' support for higher education has in- creased an average of 8 percent, tuitions have gone up nearly 50 percent. This trend looks likely to accelerate as, according to the National Conference of State Legis- latures, at least half of the states cut funding for higher education in their 2011 legislative sessions. In Maryland, we continue to make public education investments a state budget priority As a result, Education Week named our public schools the nation's best three years in a row, Maryland also tackled the high cost of getting a college degree by freezing tuition at our state colleges and universities four years running. Bearing in mind that not everyone will go to college, slates need to have an aggressive plan to focus resources on develop- ing middle skills. With many of today's jobs requiring more than a high school diploma - but less than a bach- elor's degree - we launched Sfeiik2Compete to increase Maryland's skilled workforce 20 percent by 2012. We are working with employers to align degree programs to market demand and translate those requirements through our Workforce Investment Boards. In the end, it is not only about developing talent, it is important to recruit and retain talent. To build suc- cessful innovadon hubs, states must become attractive destinations for global talent. After all, top talent is in- finitely more mobile than companies. Like many states with an extensive network of universities, Maryland ex- ports talent as graduating students pursue opportunities in other states rather than retaining the talent that can generate new entrepreneurial ventures and innovations. Aggressive campaigns to integrate student populations into local communities can have a meaningful impact in retaining them post-graduation. For example, Baltimore's CoUegetown Network was founded in 1999 and over the last decade has been successful in increasing the reten- tion rate of students from 19 percent in 2003 to 31,5 percent in 2009, The flip side of retaining talent is creating relevant marketing campaigns to attract new talent into the state. In a global economy, we need to increasingly market to global talent. Contact Singapore and I Am Young Detroit are two current campaigns designed to attract global tal- ent to work, invest, and live in Singapore and Detroit respectively A key component of Detroit's revitalization involves attracting talent from across the nation. As pan of this effort, the Wayne State's Detroit Fellows Program will recruit and develop up to 25 outstanding mid-level candidates in the nonprofit and economic development spheres to I'elocate to Detroit for two years of grant-fund- ed professional work. Also contributing to the strategy In the end, it is not only about developing talent, it is important to recruit and retain talent. To build successful innovation hubs, states nnust beconne attractive destinations for global talent. After all, top talent is infinitely nnore mobile than companies. Economic Development Journal / Fall 2011 I Volume 10 I Number 4 is 1 Am Young Detroit, a blog that profiles the city's young up-and-comers and growing entrepreneurial ecosystem. At my agency, we launched the Maryland of Oppor- tunity campaign in January 2010 to profile successful, smart, and sawy entrepreneurs based here. Their base may be Maryland - but their markets are world-wide. Today, the award-winning campaign has been viewed by millions and is helping to educate, inspire, and build confidence within Maryland's business community. CAM't TELL VOJ WHAT B< T lil CAN Vf*- i3W m^f. The Maryland of Opportunity Campaign featwing Chesapeake Candlefounder Mei Xu. 2. FOCUS RESOURCES ON HIGH-IMPACT, IN-STATE COMPANIES FOR GREATEST JOB GROWTH & BUSINESS CREATION POTENTIAL With recent studies shedding new light on prior as- sumptions about the source of job gains, we learn that a state's economic performance is driven by how successful it is in building world-class businesses inside its borders, not in importing businesses from elsewhere. Particularly in mature economies, almost all job growth is organic, due to the expansion of existing firms and the birth of new firms, A 2010 study by the Public Policy Institute of California, "Business Relocation and Homegrown Jobs, 1992-2006" found that job relocations at the state level accounted for 1.9 percent of job gains. Moreover, a small number of firms in every jurisdic- tion are ouisized contributors to economic growth and job creation (see Chart 2). Studies vary in their findings about the size and the age of these businesses. Neverthe- less there is clear evidence that successful startups are an important source of jobs. For example, research by the Kauffman Foundadon shows that young businesses gen- erate a disproportionate share of new jobs. The U.S. Small Business Administration and others show that it is high- impact "gazelles" that account for the largest share of job growth. Google and Facebook are well-known as outsized The 1 Am Young Detroit campaign, which profiles Young Detroilers who are making their mark on the city ojDetroit through their accomplishments and service lo the community, contributors to job growth, while in Maryland, industry leaders like Under Armour and Sourcefire are playing a similar role, adding jobs at a rate of 30 percent a year. Making the Case with Targeted Data & Information Economic development professionals need targeted strategies to help propel these high-growth firms further, faster. The challenge is that high growth firms are less likely to proactiveiy seek assistance and in many cases have had little interaction with state or local government. States need to develop protocols to identify these rapidly growing firms, proacuvely develop relationships with their leadership, and provide targeted resources to help them manage expedited growth. States also need better data to target high growth firms. The Kauffman and Edward Lowe foundations have conducted important research in this arena to help build support for tools that track outsized contributors, 'We need the continued involvement and thought leadership CHART 2 Outsized Contributors to the Economy Less Than 1 % of Establishments Responsible for 74% of Net New Jobs INon-High growth 1 High-growth I establishnnents Establishments Net New Jobs Source: Outlier ttC for Team Pennsylvania Foundation Economic Development Journal / Fall 2011 I Volume 10 I Number 4 of these organizations together with state-based labor de- partments to identify the most promising companies, Pennsylvania is one state examining the potential of targeting high growth companies. A recent study by Dr. Gary Kunkle for die Team Pennsylvania Foundation shows that less than one percent of a state's companies have the potendal to generate more than 70 percent of new jobs annually Through this research, Dr. Kunkle idendfied the state's fastest growing companies from 2004 to 2009. The Pittsburgh Impact Iniuative has implemented an economic development strategy using this data which identified 150 high growth companies in a 10-county region. The Pittsburgh Initiative will help those companies with market research, permitting assis- tance, and other services. Building an Entrepreneurial Infrastructure Another key tenet to building a belter organic growth engine is developing the entrepreneurial infrastructure to generate a more vibrant pipeline of new companies. In 2010, the Kauffman Foundation released The Importance of Startups in fob Creation and Destruction, which conclud- ed that virtually all net job creauon in the United States between 1977 and 2005 was driven by startups. The key to a successful entrepreneurial infrastructure is not only the creation of startups, but the nurturing of them as well. Only one in 20 entrepreneurial firms is high growth in terms of adding jobs, but firms that survive the first few years spur jobs and often create innovarive goods, services, and processes, according to a 2008 U.S. Small Business Administration study In Maryland, we face a unique challenge as well as an opportunity in that we are the top state for federal spon- sored research, rank 2nd in the Milken Insntute's State Technology and Science Index, and 3rd in Kauffman's State New Economy Index, but lag behind to 42nd in business starts. This delta between funding and busi- ness start-ups is driving us to strategically invest in the 'entrepreneurial infrastracture' to narrow the gap be- tween R&D and commercialization. To close the gap, Maryland is implementing a program called InveslMaryland, which will infuse a mmimum of $70 million through venture capital investments into promising early stage companies. The program emerged from the tremendous success of our state-backed venture fund. Launched in 1994, the Maryland Venture Fund invested $25 million and returned $61 million, which Only one in 20 entrepreneurial firtns is high growth in terms of adding jobs, but firms that survive the first few years spur jobs and often create innovative goods, services, and processes, according to a 2008 U.S. Small Business Administration study. resulted in the creation of 2,000 jobs and more than a billion in private funding invested into the companies we helped to seed (see Chart 3). The goal of InveslMaryland is to not only create jobs and attract billions in follow on capital, but also to sup- port organic growth and commercialize some of the in- novative research being conducted at our universities and private companies and move it into the marketplace. The program is stmctured as a public-private partnership with two-thirds of the funds raised to be invested by pri- vate venture capital firms and one-third by the Maryland Venture Fund, CHART 3 Maryland Venture Fund Investments IVIaryland Venture Fund Performance over 15 years {$ millions) $1,200 $1,000 $800 - $600 ' $400 - $200 $0 $1,000 State Total Funds Investment Invested Private Investment Source: Maryland Department of Business and Economic Development SUPPORTING HIGH PERFORMING GAZELLES Under Armour Founded In 1996 by University of Maryland football player Kevin Plank, the company created a line of moisture-wicking athletic apparel. Launched in Plank's mother's basement, the company now employs 4,000 employees world-wide "IjHflH 3"'^'000 3t its Baltimore headquarters - ^pP^Pi generated revenues over $1 billion in 2010, Since 2003, Maryland has provided $18 million in tax credits and training funds to help the company expand and upgrade the skills of employees. A bridge that spans over Under Annfiur's south BiiJtimore campus. Sourcefire, located in Columbia, was founded in 2001 by Martin Roesch, author of open source Snort* the world's most downloaded intrusion detection and prevention technology with over 3,7 million downloads to date, Sourcefire grew from a venture-backed startup and went public in 2007, Maryland was an early investor in Sourcefire through our state- backed Maryland Venture Fund. The company is consistently recognized as a world leader in network security, protecting thousands of commercial customers. The company's real-time adaptive solutions and open source technologies are deployed in every military branch, more than 50 percent of the Fortune 500 companies, and in the largest civilian government agencies. Sourcefire's federal business almost tripled from $6.2 million in 2007 to $15,8 million in 2008. Economic Development Journal / Fall 2011 I Volume 10 I Number4 3. DEVELOP BUSINESS PLANS AROUND COMPETITIVE ADVANTAGES & ASSETS Global markets are changing the very fabric of how business is done. Along with the opportunity to attract billions of customers for American companies, we are at the same time faced with the parallel threat of an increase in global competiuon. With high speed broadband dra- matically improving infrastructure to manufacture and deliver goods to market, and rising skills, China and other developing nations are fundamentally changing the concept of a modern day supply chain. This new in- terconnectivity of markets and the speed of globalization require a renewed effort on core competitive advantages. Cities, regions, states, and countries need to prioritize in- vestments diat build on strengths and, equally important, have a plan to market those competencies nanonally and internationally Investing in Maryland's Core Advantages: Cyber, Space & Life Science In Maryland, we have laid out a plan around our core advantages - focusing on being world leaders in life sci- ences, cybersecurity, and space/aerospace. In each area, we assessed our assets and developed detailed plans to move forward. Key to each one of these strategies is creating a pipehne of talented workers, promoung com- mercialization and innovation, and making the necessary investment in infrastructure. Home to flagship federal institutions such as the Na- tional Institutes of Health, the Food and Drug Administra- tion, and National Institutes of Standards and Technolo- gy, along with premier Global markets are changing the very fabric of how business is done. Along with the opportunity to attract billions of customers for American companies, we are at the same time faced with the parallel threat of an increase in global competition. research institution and top NIH recipient Johns Hopkins, it is no surprise that between CHART 4 Investments in Maiyland Governor Martin O'Malley al lockheed Martin's Next Generation Center 2002 and 2010, one third of all net new jobs in Mary- land were created in the life sciences. Coupled with 500+ biotech firms, representing the 5th largest concentra- tion of life sciences establishments in the US, there was a compelling case to have the state significantly invest in this industry In 2009, Governor O'Malley proposed a record $1.3 billion, 10-year investment, to propel the life science sec- tor even further, faster. As of July 2011, we have invest- ed well over $300 million in areas such as strategic re- search like stem cells, provided grants and tax incentives to commercialize and develop biotech companies, and committed dollars to key infrastructure such as bioparks and incubation space next to our flagship universities. Our end objective is to position Maryland to be a leading global region for the discovery and commercialization of life sciences products and services (see Chart 4). Maryland's Life Sciences Industry 2010-2012 BioMaryland 2020 Investment H Research and Development 1 Venture Capital Investment I Tax Credits Biotech Advancement (Other) ' I Technology Transfer and J Commercialization I Liniversity Capital Development 2011 2012 Source: Maryland Biotechnology Center Economic Development Journal / Fall 2011 I Volume 10 I Number 4 WINNING THE RACE FOR TALENT & CAPITAL Much of the last century was defined by ideological struggle whether between fascism or the cold war that Churchill comments seemed to foreshadow in 1939, The 21st centur>' appears to be much more defined by global markets fueled by unconstrained movements of capital and talent. This new world is full of challenges and uncertainty Although it is impossible to predict tomorrow's economic sucess story, we identify key trends and as a result make impactful policy decisions. As economic development professionals, we need to realize that policy steps ahead require us to think beyond the realms of our own agencies and build a broader coalition of state and local government to move our economies forward. Our profes- sion is already evolving from sim- ply being driven by attraction and retention of business to a more ex- pansive view. More than ever before, this will require us to serve as conveners, facilitators, and cheerleaders of diverse interests that all play critical roles in propelling our economies forward. The new Economic Development Playbook key tenets- whether it is attracting global talent, building support for entrepreneurship, or making priority investments in a Slate's most competitive industries - hold amazing prom- ise for states willing to embrace change. In the end, the Uon's share of benefits will be bestowed on those commu- nities that are willing to lead and win the race for talent and capital. €) The new Economic Development Playbook key tenets - whether it is attracting global talent, building support for entrepreneurship, or making priority investments in a state's most competitive industries - hold amazing promise for states willing to embrace change. In the end, the lion's share of benefits will be bestowed on those communities that are willing to lead and win the race for talent and capital. THE ECONOMIC DEVELOPMENT RESEARCH PARTNERS (EDRP) PROGRAM DESIGNATED FOR INNOVATIVE LEADERS IN THE ECONOMIC DEVELOPMENT COMMUNITY THE ECONOMIC DEVELOPMENT RESEARCH PARTNERS (EDRP) PROGRAM Economic Development Research Partners Program meaibership opens doors to concepts and schemes that assist economic development professionals in operating at a higher level. AIMS OF THE EDRP Through the EDRP Program, lEDC is taking its mission to a new level, assisting practi- tioners to successfully compete in the global economy and increase prosperity for communities at an acceler- ated pace, empowering ED professionals to better define their vision and voice. METHODS AND BENEFITS OF THE EDRP PROGRAM The Partners meet 4 times a year, sometimes with experts in the field, to coordinate activities and focus agendas on pertinent and practical issues. This innova- tive program provides an incredible opponunity to strengthen the communities in which we operate and the profession as a whole, FOR FURTHER INFORMATION on membership details, please contact: M.iry Helen Cobb, Vice President Membership and Partnerships at 202-942-9460 or mcobb@iedconline,org Economic Development Journal / Fall 2011 I Volume 10 I Number 4 10 Issues Briefs Trends & Implications CITY OF ^ CARLSBAD 2012 GOAL SETTING Trmd Description Affected departments Sustainable ommizaUon Carlsbad, like cities throughout the nation, is coping with current economic conditions w/hich mean operating with fewer resources. At the same time, community expectations for value, accountability and transparency have increased. As a result, it is more important than ever that Carlsbad ensures taxpayers are receiving the most efficient and cost-effective delivery of high quality city services. Ali ~~ How this affects us Need to reexamine policies and procedures to make government more efficient Increased emphasis on analyzing and quantifying costs of service delivery Technology provides new opportunities to increase efficiency while maintaining high quality services Emphasis on downsizing/rightsizing Need to reexamine salaries, benefits and pension to remain competitive Need to manage effects on employee morale due to pace and magnitude of change Emphasis on keeping reputation as employer of choice in light of negative publicity surrounding local government employment Fewer highly qualified people in the job market from which to choose Limited by antiquated civil service rules affecting employee retention and succession planning Status Embarking on Best Value Services initiative to identify areas for improvement and increased efficiencies Performing total compensation comparison related to public sector competitors Partnering with represented employees to explore the possibility of a pay for performance compensation system Providing training and workshops on employee wellness and managing change Technology B lockbuster was much in the news last fall, though not in the favorable light it once enjoyed. The cultural phenonnenon and former stock market darling that once prospered through aggressive marketing, savvy exploitation of technology, and keen insights into customer preferences filed for bankruptcy in September 2010. Though some analysts thought the filing could give the franchise time to reinvent itself, others predicted that the onetime video-rental colossus is steps from the graveyard of retail obsolescence. There is a lesson ortwo for libraries in this riches- to-rags story. In the New Yoi-ker's October 18. 2010. "Financial Page" column, James Surowiecki catalogs a few of the causes of the company's decline. Blockbuster was born in the age ofthe "category killer": bricks-and-mortar stores that "killed off all competition in a category by stockii^ a near-endless variety of products at prices that small re- tailers couldn't match." Many of these establishments are still healthy. Surowiecki explained. But others—Toys RUs. CompUSA, Circuit City, Borders Books and Music, and Barnes & Noble, for example—have either given up the ghost or seem to be in their death throes. The internet has played an important role in this trend. Newer businesses that were born during the wired era have outplayed their older and less-agile competitors by more aggressively exploitingthe advan- tages of networked technology. This has been especially true in the case of brands operating in well-defined niche markets, such as video rentals. Netflix simply beat Blockbuster's time—soundly. The ease of selection, de- livery, and return coupled with a recommendation sys- tem that, though not perfect, is better than the advice offered by the average in -store sales associate--provid- ed a cheaper and more convenient way to access a wider selection of films. The internet in particular and digital technology in general are key in this game. Because of Netflix"s will- ingness and ability to harness technology, customers no longer needed to drive or walk to a physical store to browse aisles of limited-selection stock arrayed in broad categories in search of a movie for a quiet evening at home, or to experience disappointment that a movie was not on the shelf because another customer got there hrst or was late returning the item. Further, Netflix"s customers are not forced to wony about pesky little matters like overdue dates and late fees. Convenience above all Early on in the wired era, Blockbuster seemed to have all the advantages—a .strongbrand, a great customer base, an experienced workforce, a large inventory, and market saturation via thousands of physical stores deployed across the country. It would have seemed a simple matter to build an effective e-commerce busi- ness on top of all this expertise and success in the tra- ditional retail marketplace—"clicks and mortar," many observers thought, the best of both worlds. But this did not happen; in the end. none of the company's ad- vantages mattered, and some of them turned out to be millstones. Surowiecki attributed Blockbuster's failure to two factors. The hrst he termed the "internal constituency" problem: "The company was full of people who had been there when bricks-and-mortar stores were hugely profitable, and who couldn't believe that those days were gone for good. Blockbuster treated its thousands of stores as if they were a protective moat, when in fact they were the business equivalent ofthe Maginot Line." The second problem exacerbated the first; the "simk- cost fallacy," which stipulates that "once decision-mak- ers invest in a project, they're likely to keep doing so, because ofthe money already al stake. Rather than dra- matically shrinking both the size and the number of its stores. Blockbuster just kept throwing good money after bad." Blockbuster made an attempt to manage this change, but its past success acted as an anchor rather than a sail because it was not willing to jettison outmoded cargo. Thus, even if the company had moved more aggressive- ly to develop the clicks-and-mortar model, it probably would nol have fared any better. The success of Netflix suggests that in the video-rental and similar markets, if products are available conveniently enough and cheaply enough online, customers don't care about or need a physical store and all the accouterments that go with it. They can stock and make their own popcorn at home, after all. Customers care most about getting the film they want as cheaply and conveniently as possible. % o » Jl E S a. 91 E There ;ire many interesting parallels for libraries. We have a strong brand, a loyal ou,stomer base, hundreds of millions of items in ourcoUective inventory, loads of expertise aad talent, and decades (if not centuries) of investment in brlcks-aud -mortar stiuctures. We have also seen the rise of many onli rie competitors in recent years, moat pjoininently Google. Like Blockbuster, our internal consliluencv has not been blind to the advan- tages of networked technology but perhaps has focused too much on past .strengths. We have thus invested heavily in a clicks-and-mortar solution. We've spent the last couple of decades sinking more resources into sunk costs by largely overlaying or augmenting legacy coUec- I ions, services, skill sets, and buildings with electronic equivalents and tools. Leave your baggage behind Are we throwing good money after bad? Should we have been building the electronic library instead of—rather than on top of the traditional library? For Blockbuster, the click.s-and-moria r approach meant .spendinglots of "money and time inlegratingan entirely new informa- tion-technology system into the one its stores already had." a circumstance rhat will .sound wearily familiar to many librarians. (Ask an)ione who has attempted to in- tegrate an enterprise resource management module or a new discovery tool into an existing integrated iibraiy system.) In Ihe meantime, Netflix's focus was on "makingit.s distribution system bigger and more efficienl." Of course, it had the advantage of a clean .slate, which meant that it could more easily imagine and build a systcmun constrained by a previous model. Netflix was not bui- dened by the need to support and retain a lot of praci ices, services, and structures lhat had once worked well, li had the freedom (o locus exclusivclv on the needs and wants of con.sumers. In this process, technology itself was sec- ondary, a means to an end. Customers were the point. But Netflix does not have t ime to rest on its laurels ei - ther. The dist ribui ion model it has used .so effenrivelv is changi ug-evolving from a mail-order system where networked computers facililale discoveiy and ordering to a fully automated system where streaming" and down- loadable video close the circle to forma fully net-en- abled process. In these ciroum,stances. an elTitienl snail-mail order operation will not siilTice. The kev lo remaining competitive in the next round of this game would seem lo be accurately anticipating what nel- ji o t3 o a> Jl E 0) It could take days to read through, the aew best- seller. Fortunately, it only takes 15 minutes to see how much YOU COULD SAVE WITH GEICO. ALA members could get an additional di.scount on car insurance. Get a free quote. Call 1-800-368-2734. geico.com CM issues Briefs Trends & Implications CITY OF CARLSBAD 2012 GOAL SETTING Trend Libraries in a digital age Description The shift toward digital content and delivery (eBooks, electronic information sources) is quickening, but not replacing other formats. Affected departments Library & Cultural Arts; IT; Property & Environmental Management How this affects us Status Surging interest in eBooks and other digital content competes with sustained demand for print resources Competition for dominance among providers of content and devices has created multiple, fragmented delivery systems Device variety and preferences (smartphones, tablets, e-readers) have created demand for device-specific content availability Changing delivery methods require constant training of both patrons and staff on new devices and how to access content Network and physical infrastructure (bandwidth, wiring, electrical, buildings and their support systems) need frequent updating to keep up with changing technology and demand Future buildings must be designed flexibly to support continuously changing service delivery Formats will increasingly overlap as they're introduced more quickly*. The need to support multiple formats and delivery methods requires frequent change in work processes This trend is being watched constantly, and formats evaluated for phase-out; currently, 21 percent of collection funding is dedicated to digital content Investment in multiple, overlapping formats and systems is strategic; Carlsbad is maintaining a regionally innovative position while issues of rights and ownership of digital content are addressed at a national level Concepts for future facility spacial and infrastructure needs are being developed The rapid pace of technology advancement requires more frequent reinvestment in complex systems to continuously deliver services efficiently *New format introductions/phase-outs 1916 1971-2010 1981-2010 <1987-97 1987 1996 2000 2005 2007 2010 2011 Print Audiocassette VHS Record CD CD-ROM eDatabase MP3 Plavawfav eAudlobook eBook worked devices most people will watch videos on in the nextfew years, and then quickly building the pipelines necessary to feed product to those devices. But guessingcorrectly, while important, is not really the key. What matters is responding to customer wants and needs in a timely and efficient manner, even at the expense of letting go of past practices and tools no matter how cherished or successM. A baggage - free focus on custom- ers is what gave Netflix its original competitive advantage. Innovating past the graveyard It would behoove libraries to adopt a similar focus. Aveiy simple formula is at work in determining satisfaction for most library users. If a patron co mes to the library or logs in and finds what she wants, or a close approximation to it, she is happy. To the extent that she does not, she isn't. Period. Impressive buildings, glitzy web pages, fat acquisi- tions budgets, high volume counts (electronic, print, or both) are fine, but they are not the most important thing—which is simply whether or not the patron is able to locate the an.swer. fact, statistic, idea, or data set she needs -and the quicker and easier, the better. Libraries used to score highly on this metric by owning a lot of things and keeping them close at hand. Now, more and more, they ring the user-satisfaction bell by connecting to a lot of things, re- gardless of where the items are, who owns them, what time of day it is, or where the patron is. The old, ownership- based system is akin to the just-in-case business model, where companies keep lots of stock on hand just in case someone needs a particular widget or gizmo. The new libraiy should be based on the just- in- time model, where access and deliveiy networks are more important than vast quantities of nearby inventory. Another lesson for libraries is that once content is delivered in a new medium, Ihe old medium no longer matters—except for the purposes of preservation and historical scholarship. Came over for those who i nsist on blindly holding onto the old format in needlessly re- dundant storage facilities, ei.spccially if that facility is located on prime real estate. This is not to say that the old format does not need to be preserved. But not every- one needs to do so—far from it. There may have been a time when eveiy Blockbuster store needed 12 VHS or DVD copies of Top Gun. No more. Si milarly, we no lon- ger need print runs of The Most Important journal in the Field of XY7Studies on every .shelf of every library i n the country. A few for preservat ion purposes are quite enough. Our customers want the conle nt in the most convenient and efficient form possible. The new library should be based on the just- in-time model, where access is more important than vast quantities of nearby inventory. Of course libraries have other things to offer -spaces, for one, to which the same formula for satisfaction ap- plies. If a patron comes to the 1 ibraiy in search of a quiet study area, a room for group research, an environment conducive to intellectually stimulating social exchange, or space for inspiration and the freedom to think big thoughts and finds it, she is happy. If not, then not so much. The extent to which we think of our libraries exclu- iiively as warehouses for the protection and storage of physical objects is probably also the extent to which we also miss the mark in this regard. If we are to retain a meaningful bricks-and-mortar component to our ser- vices, we must deploy our spaces with the aim of deliv- ering to our patrons the room they need when they need it, instead of vast storage areas, or—when we are able lo escape the warehouse paradigm—inflexible, single-pur- pose areas that lie fallow for large periods of time. Our emphasis must be on flexible, multipurpose space thai is available 24/7, or as close to that as possible. On this point we differ from Blockbuster, whose physical pres- ence has become beside the point. We have spaces that our users want and need, and lhat can be useful to our overall mission if deployed effectively and efficiently: what patrons want, when they want it. Increasingly, libraries are engaging in additional activities, such as open- access initiatives and other publishing ventures lo help counter the rising cost of commercial publications, and build- ing learning commons and other forms of technology-rich spaces where users can capture and manipulate information into newproducts and forms of knowledge. However, the focus of our networked collec tions, spaces, and services should be to meet the needs and wants of users rather than maintaining the systems and structures we previously constructed to serve them. The computers and networks thai link items and collec- tions, the buildings that we inhabit, and the tools we of- fer are not primary to our purpose. Primary are the people who need and want these things. If we are going to sink costs somewhere, that is where we should sink them. If our focus shifts from servi ng individuals to tools, systems, and stnictures. the graveyard of obsoles- cence will beckon. I a j> o 13 •§ o Jl e STEVEN ESCAR SMITH is dean of /ibrar/es at the University of Tennessee in Knoxville, andCARMELITA PICKETT is head of collection development and acquisitions seruices for Texas A&M University Libraries in College Station. CO \€ Cl T Y O F Issues Briefs Trends & Implications CARLSBAD 2012 GOAL SETTING Trend Increased public involvement through technology Affected departments Technology now allov\/s for new/ ways for tlie public to more directly participate in their government's decision mai<ing. With the click of a mouse (or tap of a mobile device) people can vote in an online survey, post a comment on a government social media site or organize a large group around a single issue. Cities across the nation are experimenting with a mix of these tools with varying results. A consistent question that arises is determining the appropriate level of involvement for the public for a given issue. If these tools are promoted and increased public input is encouraged, governments need to set expectations in advance for how that input will be considered in the decision making process. Ignore these tools altogether, and the public may lose faith in a government's responsiveness to those they serve. All How this affects us Challenges • As these tools become more common in the commercial sector, the public will increasingly expect them to be available for their government too. • Public expectations of their influence might be unrealistic on some issues. • Public can easily become disappointed if they feel their input was not used. • Requires increased resources to manage and process increased public input. Opportunities • To hear from a broader segment of community on issues important to them. • Demonstrate transparency and openness. • Increase understanding among the public regarding city issues and decision making process. Status Currently using social media to communicate about city issues. Increasing use of online surveys to gather information from the public (trails survey. Envision Carlsbad online surveys, etc.). Resources Note: Certain portions redacted that pertain to marketing or advertising of a certain product. Online Public Connment Forums: Why Public Hearings Need to be Augmented via the Internet http://icma.org/en/icma/knQwledge network/bIogs/blogDOSt/524/Online Public Comment Forums Whv Public Hearings Need to be Augmented via the Internet Across the US and in other democracies, public hearings have been a mainstay of civic engagement and feedback to government leaders. Indeed, public hearings are often the most influential channel for feedback to government decision makers. However, this long-standing tradition of democracies has become incompatible with the lifestyles and mindsets of many citizens. This incompatibility is especially problematic for citizens with moderate views or an inclination to compromise, as well as parents with young children, adults with busy work schedules, and people that aren't too mobile (i.e. sick or incapacitated). This blog post details a series of problems with public hearings, and then culminates with an explanation of how online public comment forums complement public hearings in ways that (1) address their deficiencies, (2) enhance the insights and deliberations of government decision makers - and ultimately, (3) increase public trust in government. The Problem: The conventional approach to making decisions in local governments culminates at the city council meeting (or facsimile). These meetings are typically run under Robert's Rules of Order, and each issue incorporates a public hearing. This public hearing isn't the only source of community input to the decision makers, but it's typically the only channel of public input that is officially unfiltered and open to the public. This transparency imbues the public hearing with extraordinary influence. As the only official, unfiltered, transparent forum for citizen feedback, many residents, decision makers, and journalists erroneously conclude that the feedback at a public hearing is representative of the community. In other words, if the public hearing is dominated by one-side of an issue, then many mistakenly conclude that the community must be commensurately for that one-side. Likewise, if the public hearing is polarized by uncompromising opposite sides of an issue, then many mistakenly conclude that community must have few if any people that have moderate views on the issue and would advocate for compromise. Without other official, unfiltered, transparent channels of input, it's hard not to assume that the public hearing is a proxy for the community. However, that assumption can weaken the decision making process and frustrate the public. Why is that assumption risky? Because public hearings have attributes that have become incompatible with the lifestyle and mindset of many Americans. From a lifestyle perspective, public hearings are typically held in the evening and have agendas that don't have time allocations and are subject to reordering. Consequently many meetings run late into the night. Perhaps these attributes weren't a problem decades ago, when life was slower, young children were living with extended families, work schedules were less hectic, and most families had two spouses with only one working full time. But these days. attending public hearings is challenging for adults that are responsible for young kids or consumed by full time work responsibilities. From a mindset perspective, constituents with an opinion on an issue but who are not passionate about the issue are unlikely to make the commitment to participate in the issue's public hearing. Likewise, constituents with moderate views and inclinations to compromise are also unlikely to incur the inconvenience to attend the public hearing. This results in public hearings that are frequently dominated by people with extreme views - and that further discourages moderates from attending because the mob of extremists can intimidate the moderates from speaking. Some might argue that the people who don't prioritize attending a public hearing are indifferent or apathetic about the hearing's topic. But that's an insensitive outlook because it's tantamount to believing that voting should be more challenging so that only those citizens that feel passionately about a particular candidate should vote in that candidate's election. The Solution: The solution to this community feedback and decision-making problem is straightforward: establish other forums for community feedback that are official, unfiltered, transparent and have attributes that augment and diversify participation beyond public hearings. For example, establish online public comment forums (OPCFs) that emulate the order and decorum of public hearings. OPCFs enable time-constrained residents to participate at the time and place of their convenience. By emulating the order and decorum of public hearings, OPCFs are fair and enable everyone to understand and learn from other perspectives. Also, integrating OPCFs with online analysis tools enables decision makers to efficiently synthesize voluminous feedback - and thereby enhance their preparation for public hearings. OPCFs aren't a replacement for public hearings. Instead, OPCFs complement public hearings by augmenting and diversifying civic engagement. This will enhance the perspectives of government decision makers, lead to more informed deliberations, and ultimately increase public trust in government. Eventually, the use of OPCFs will become a pervasive best practice in government agencies in all democracies. Postscript: Providing communities with OPCFs for feedback to government leaders isn't a radical idea - as a high percentage of Americans (and residents of other democracies) already provide huge amounts of feedback to communities, organizations and companies via popular online services such as Facebook, Twitter, Yelp, and TripAdvisor. However, in contrast to businesses, the challenges for governments are to offer OPCFs that are legal, civil, fair, insightful, cost-effective and don't usurp the decision-making authority of government leaders (known as the "Referendum Effect"). Online Public Comment Forums: How to Avoid the Referendum Effect that is Common with Online Crowd-Sourcing httP;//icma,org/en/icma/knowledge network/hlng.s/hlngnost/.S2.S/nnline Public Cnmment- Forums HQW to Avoid the Referendum Effect that i.s Common with Online Crnwri.Snnr Government officials that are augmenting and diversifying feedback from their community via the internet should be aware of several challenges and potential pitfalls. These challenges include keeping the forums legal, civil, and fair - and equally important, preventing a pitfall with crowd-sourcing known as the Referendum Effect. This blog post starts with a brief description of the Referendum Effect, and then focuses on how it can be impeded using online public comment forums (OPCFs). What is the Referendum Effect? The Referendum Effect characterizes the loss of decision-making autonomy that government leaders incur when a community expects decisions to be based solely on the majority opinion of public feedback. More specifically, the Referendum Effect occurs when public feedback usurps the decision-making independence of government leaders. This dynamic is prevalent in conventional public hearings (and is especially problematic when the feedback from the public hearing is not representative of the community). The Referendum Effect can also arise when public feedback is gathered using online crowd-sourcing techniques in which participants are encouraged to vote on comments. How to Minimize or Prevent the Referendum Effect: There are techniques that can minimize the potential of online forums to create the Referendum Effect. The most straightforward technique is to caveat the forum with messaging that explicitly addresses expectations. For example, IHHUHHIHjUHIHiiH OPCFs integrate the followin^riessag^^ the user interface: As with any public comment process, participation inHHIHilH'^ voluntary. The statements are not necessarily representative of the population, nor do they reflect the opinions of any government agency or elected officials. Another straightforward technique to minimize the Referendum Effect is to exclude the word "vote" from the user interface - as the "v-word" can create an expectation that feedback with the most votes wins. An additional and more sophisticated approach to minimizing the potential for the Referendum Effect is to structure the online forum to solicit only qualitative feedback (as opposed to quantitative feedback). For example, instead ofthe online forum requiring participants to indicate "yes" or "no", or option 1 or 2, the online forum can simply ask for a comment. Structuring an OPCF using a qualitative format can eliminate the Referendum Effect, but if the qualitatively formatted forum garners lots of participation, then it can be difficult for decision makers to read all of the comments. This challenge can be addressed with clever analytical tools. For example, HBHHHiHIHOPCFs be configured to 4 enable participants to support comments. The comments can then be listed in order of most to least supported, and links to similarly supported comments can be provided. This "related comments" graph enables decision makers to synthesize voluminous online feedback. Enabling users to support other comments makes the OPCF structure slightly more quantitative. However, the risk of the forum becoming a vote for the most popular comment can be reduced by not showing the number of supporters that each comment obtains, and instead only listing comments in order of most to least supported. In summary, caveating online forums, not using the v-word, and structuring forums for qualitative feedback can prevent the Referendum Effect, and thereby enable government leaderstojeverage OPCFs without the risk of losing their decision-making authority. CITY OF ^ CARLSBAD 2012 GOAL SETTING Issues Briefs Trends & Implications Trend Description Affected departments Increased access to govemment through technology Public expectations of government are changing as digital communication and information technologies become a more regular part of daily life. People are starting to expect instant access to government information and services anywhere, anytime, from any device. Meeting those changing expectations requires government to transform to a new paradigm focused on leveraging technology to increase speed, efficiency and convenience. • Fully 82 percent of internet users (representing 61 percent of all American adults) looked for information or completed a transaction on a government website in the past year. • 31 percent of online adults use online platforms such as blogs, social networking sites, email, online video or text messaging to get government information. • By 2015, more U.S. Internet users will access the Web through mobile devices than through PCs. • The number of people accessing the City of Carlsbad website using a mobile device increased 845 percent in the last year. Non-mobile use increased 133 percent. All How this affects us Status Challenges • Requires changes to how the city does business and provides services and information to the community. • Requires resources to develop and implement a comprehensive approach. • Technology changes very quickly, requiring an adaptive, agile and innovative organizational culture. Opportunities • Potential to save money, improve service, and increase public confidence and engagement. City's website provides a great wealth of information as well as some online services: bill paying, class registration, library catalog, ebooks and maps. The city's website is being redesigned to improve ease of access to information and online services. The city is in the process of establishing a CRM system that will include online service requests and tracking. Community Vision Through an extensive outreach and involvement process, the Carlsbad community created a vision for the future that includes these core values, which serve as a guide for city leaders as they carry out their service. Small town feel, beach community character and connectedness Open space and the natural environment Access to recreation and active, healthy lifestyles The local economy, business diversity and tourism Walking, biking, public transportation and connectivity Sustainability History, the arts and cultural resources High quality education and community services Neighborhood revitalization, community design and livability Strategic Goals City of Carlsbad provides exceptional, top quality services on a daily basis by proactiveiy listening, engaging and responding to its residents. Balanced community development: Be a city that connects community, place and spirit, through balanced and economically sustainable land uses. Resident connection and partnership: Be a city that embraces community connectivity through the effective use of technological and interpersonal mediums. Communication: Ensure that community members, council and staff are well informed, continuing to be a more responsive government while providing a high level of citizen confidence in its government. Economic Development: Strengthen the city's strong and diverse economy, supporting local businesses, attracting new businesses in targeted industries and solidifying the city's position as a key employment hub. Environmental management: An environmentally sensitive community by focusing on conservation, storm water, sewage collection and treatment, solid waste, and cost effective and efficient use of energy including alternative energy sources. Financial health: Pursue and implement proactive strategies that support sustainable economic health and manage city resources effectively. Learning, culture and arts: Promote and support continuous learning, cultural opportunities and the arts within the community and the city organization. Parks, open spaces and trails: Acquire, develop and maintain a broad range of open space and recreational facilities that actively address citizen needs which are fiscally responsible, and are consistent with the general plan and growth management standards. Safe community: Maintain a safe and secure community through collaborative partnerships. Public safety providers support high standards, deliver protection of life and property and encourage community involvement in prevention and preparedness efforts. Transportation and circulation: Provide and support a safe and efficient transportation system that moves people, services and goods throughout the city. Water: Ensure, in the most cost-effective manner, water quality and reliability to the maximum extent practical, to deliver high quality potable and reclaimed water incorporating drought-resistant community principles. 10 New Rules for Elected Officials In Times of Economic Meltdown by Frank Benest Jel^o^''''"''"' '''''^ ^"^'^•^'^ ^"-^"^ g-erning in the midst of economic Topically candidates Jiave run on platforms to make community im Once elected snv^mino board members have historically enjoyed access to some "slack reJ^..rrr«";^ !; ^! '.^ ^ A Diminished Capacity to Respond 10 New Rules 1. Identify the "core." To allocate scarce resources, governing boards must first identify core versus non-core businesses or program areas. For example, in one Northern Caiifomia county, the counrr2erTonrtr^^^ economic v.tahty) and park programming (affecting the quality of life in ZZZltyl 2. Focus on a few priorities. The governing board as a whole must identify a few priorities (three to five at the most) and then relendessly pursue those priorities with limited resources. To assist die board in this courageous conversation about hard choices, it is wise to engage a broad range of conununity groups and thus make the resulting priorities more legitimate and enduring. When new demands for local government action arise, as they will, the governing board must insist that any new demand replace an existing obligation. When I first arrived in Palo Alto as the new city manager, the department directors identified 39 high-priority projects approved by die council. Witii the assistance of city management, the council was able to identify and then focus on five priorities. We tiien hung banners in die council chambers, one banner for each priority. When someone suggested a new priority, die mayor or the city manager could then ask which banner the council would like to remove. 3. Subtract, subtract, subtract. To aggressively pursue a few priorities with shrinking resources, governing boards must help their organizations relendessly subtract. When I became city manager in Palo Alto, we created a 90-day "Office of Bureaucracy-Busting." Employees submitted hundreds of ideas to eliminate ritualistic activities tiiat drained resources and provided no added value. Some ideas were simple and easy to implement, such as eliminating quarteriy activity reports that no one read or verbatim minutes of commissions. Other ideas were more complicated, such as re-engineering and simplifying the city's contracting process, which ultimately reduced die time needed to approve major contracts from six months to three. An organization must "accelerate" so it can effectively pursue a few priorities or respond to new demands in economic hard times. To accelerate, it must subtract. 4. Limit requests for new analysis and reports. While governing board members may resist a community group's demand to immediately respond to some problem with a new service, the board often directs staff to conduct a new analysis or prepare a report. In good times, these kinds of governing board reactions to new demands may mollify constituents making the service request. In bad times, such referrals of nonpriority items to staff simply divert scarce staff resources and undercut tiie local government's ability to perform. 5. Have the courage to say "no." Once a governing board identifies core program areas and a few priorities, it must remain focused and help the organization stay the course. Elected officials must have the courage to say "no" when groups make new demands. 6. Avoid a zero-risk environment. To overcome the resource challenges facing local govemment, governing boards must encourage innovation. Examples include self-service kiosks for certain kinds of permits, selling computer support or other ser\ ices to adjacent public agencies, or sharing public safety services with odicr jurisdictions (for more on this topic, read "What You Need to Know About Regionalizing Public Safety Responsibilities." The problem is that local governments are risk averse. In fact, in an economic meltdown, the media, community groups and elected officials jump on any mistake and personally criticize committed staff. In such a hypercritical culture, most employees will hunker down and avoid taking any calculated risks. Innovation does not occur in a zero-risk environment. Learning from mistakes is a key element in the innovation process. Employees must be encouraged to experiment, test ideas and fix problems and mistakes along the way. If governing boards do not protect creative and risk-taking employees from abuse, no innovation will occur — regardless of exhortations from the dais. 7. Pursue nongovernmental strtutions. U}CAI govenjment can no longer be the center of all problem-solving. Elected leaders must put the issue or challenge in die center and work with private, nonprofit and otiier community partners to address the St s"e.tr °" '^^^ and avoid proposing new 8. Free up funds for a few targeted Investments. Even in severe budgetary times,alocal government must make a few strategic investinents to position itself =5^S£5L~™3—^^^^ 9. Provide meaning and emotional support to staflf. Again, elected officials cannot achieve their policy agenda witiiout the commitment of creative Public agencies face a "productivity paradox." At precisely tiie point tiiat local governments need ^i^n, leaps m prtKluctivi.y to overcome the cuts, productivity spLs downwid l^lS oSs caStKe organization survive difficult times by showing concern for employees, ^oviL7e?«^^^^^^^^^ 10. Help develop talent and rebuild organizational capacity. Without talent, the governing board cannot solve the problems facing the local government In times of severe budget cuts, the local government faces a "free exiter" problem. The "star? or '^rplaveJs" ^^^^ orgamzation can freely exit and get a job with beOer pay elsewhere. If they s^U mtS L new opportunities as tiie economy improves. Employees esoeciallv thP "A ni,LJc", . , growing and stretching, infarct, le^arningisrr;^;^^^^^^^^ To support employee development, board members must resist gutting talent development budgets Th^ good news is tiiat ralent development p«>grams are inexpensive Cost-effec!^ve pS^^^ exchanges with otiier agencies, leadership academies orSucational webinars s^^XS t^y a c^nSLl of local governments, and interim or rotational assignments. *l~"surea oy a consortium of Courageous Conversations Certainly following these 10 rules will not be easy for elected officials. Adhering to the new rule, requires focus, discipline and will. Perhaps more tiian anything, elected leaderrm'uSlxhScotlge. CO—sandengagingallgrotips^ Elected Officials are stewards of our local governments. To help our organizations adapt to chance STANFORD CENTER ON ^ LONGEVITY Understanding California's Demographic Shifts California Demographic Overview Adele M. Hayutin, PhD Kimberly Kowren Gary Reynolds Camellia Rodriguez-SackByrne Amy Teller Prepared for the California State Library September 2011 Stanford Center on Longevity http://longevity.stanford.edu This project was supported in whole by the U.S. Institute of Museum and Ubrary Services under the provisions of the Library Services and Technology Act, administered In California by the State Librarian. The opinions expressed herein do not necessarily reflect the position or policy ofthe U.S. Institute of Museum and Library Services or the Califomia State Ubrary, and no official endorsement by the U.S. Institute of Museum and Library Services or the California State Library should be inferred. Understanding California's Demographic Shifts California Demographic Overview California is the country's most populous state and liome to nnany diverse communities. As tlie accompanying demographic profiles of the library jurisdictions demonstrate, there is tremendous demographic variation across the state. This visual overview provides the general context for understanding how communities differ from each other and from the state overall. Population Growth Pop in millions 40 Population Growth 1900 Source: US Census Bureau Change by Race and Ethnicity, 2000-10 White, NH Black, NH Asian, NH Other, NH Hispanic Note: NH=non-Hispanic Source: US Census 2010 Components of Growth Natural Increase Net Foreign Immigration Net Domestic Migration 1990-2000 2000-2010 +4.3 +3.4 Source: CA Department of Finance California's population increased by 10% over the past decade to 37.3 million. Overall population growth has slowed from the high-growth decades of the 1970s and 1980s, but growth from 2000 to 2010 still matched the overall US growth rate. California is by far the most populous state and accounts for 12% of total US population. • Over the past decade, the Hispanic and Asian populations each grew about 30%, while the white, non-Hispanic population declined by 5% and the black population declined by 1%. • Natural increase (births exceeding deaths) added 3.1 million to the total population from 2000 to 2010. • International immigration added 1.7 million people, but was largely offset by domestic outmigration of 1.4 million. As a result, net migration totaled only 302,000 for the decade. Net foreign immigration declined 19% from the 1990s level, while net outmigration to other states increased by 15%. , STANFORD m CENTER ON Zd LONGEVITY Understanding California's Demographic Shifts Diversity in^iiions Population by Race and Ethnicity White, NH 15 ! 10 Black, NH 1980 1990 2000 2010 Includes Asians, Native Hawallans & Pacific Islanders Note: NH=non-Hispanic Source: US Census Bureau Share of Total 70% 67%^ 60% 50% 40% 30% 20% 10% 0% 0% 1980 1990 2000 2010 The population mix in California continues to shift, as the white, non-Hispanic population declines and the Hispanic population increases. • The white, non-Hispanic population peaked at 17.0 million in 1990 and has since declined by 12%, falling to 15.0 million in 2010. In contrast, the Hispanic population increased from 7.7 million in 1990 to 14.0 million in 2010. Since 1990, the Hispanic share of California's total population has increased from 26% to 38%. The white, non-Hispanic share decreased from a majority 57% in 1990 to 47% in 2000 and 40% in 2010. • Another shift in the population mix occurred as the Asian population grew from 2.7 million in 1990 to 4.8 million in 2010, increasing from 9% of California's total population to 13%. • In contrast to high growth in the Hispanic and Asian populations, the black population in California increased by just 3% from the 1990 level to 2.2 million in 2010. The black share of California's total population declined from 7% in 1990 to less than 6% in 2010. California's racial and ethnic mix differs sharply from the nation's overall population—California has larger shares of Hispanics and Asians than the country overall and smaller shares of blacks and white, non-Hispanics. • California's population is 38% Hispanic, compared with 16% nationally; the share of white, non-Hispanics is 40%, compared with 64% nationally. • The share of blacks in California has fallen to 6% of total compared with 12% nationally and the share of Asians has risen to 13%, compared with 5% nationally. STANFORD CENTERON a LONGEVITY Understanding California's Demographic Shifts Age Structure Population by Age l-ilspanic Non- Hlspanlc 1.5 0.75 0 0.75 33,871,648 Population In millions by 5-year age bracket; males on left, females on right Source: US Census 2000, 2010 0.75 0 0.75 37,253,956 Change by Age, 2000-10 80-84 70-74 60-64 50-54 40-44 30-34 20-24 10-14 0-4 Older +650.856 +18.1% ^Working Age ii+2,513,981 I +12,5% You ng +2,1 % -400 0 400 800 Total 1 +3,382,308 Change/ +10.0% Although California remains relatively young compared with the rest ofthe country, over the last decade the population shifted toward the older age brackets, and the median age increased from 33 to 35. • The two histograms above show how the population has aged. Each histogram is a snapshot of the age structure for that year, with the bars showing total population by five-year age bracket with children (age 0- 4) at the bottom and old people (age 85 and older) at the top. IVIales are on the left and females on the right. The red segments show the Hispanic population in each age bracket. • One notable change Is the upward shift In the whole age structure as the upper age brackets became wider, while the lower brackets remained relatively static. • Another notable shift is the increase in the Hispanic population. While California's total population increased by 10%, the Hispanic population increased by 28%. The Hispanic share increased from 32% to 38% of total. The Hispanic age structure also shifted upward over the past decade. As the size of the upper age brackets increased, the median age increased from 25 to 27. The greatest absolute growth occurred in the working-age population, especially in the upper brackets from age 45 to 64. The fastest growth, however, occurred in the population age 65-I-. • The chart at the right shows the change in each bracket size over the ten-year period. • Overall, the working-age population increased by 2.5 million (13%) from 2000 to 2010 and accounted for nearly three-quarters ofthe total population gain. • In contrast, the population age 65+ grew at a faster rate, 18%, but added only 650,000, bringing the total population age 65+to 4.2 million. • The number of young people, those under 20, grew by only 2% adding just 217,000. . - , ... The age mix in California is similar to the country overall, except that California has a slightly smaller share of older people. • In California the population age 65+ accounts for only 11% of the total population, compared with 13% nationally. • Relative to the countr^^, California has a slightly larger share of young people, 28% compared with 27%, as well as a slightly larger share of working age people, 61% compared with 60% nationally. r STANFORD LWI CENTERON Si LONGEVITY Understanding California's Demographic Shifts Age Structure by Race and Ethnicity Population by Age, 2010 White, Non-Hispanic Biacl<, Non-Hispanic Asian, Non-Hispanic Hispanic 700 350 0 350 700 15.0 million 700 350 0 350 700 2.2 million 700 350 0 350 700 4.8 million 700 350 0 350 14.0 million 700 Population In thousands by S-year age bracket; males on left, females on right Source: US Census 2010 California's age structure differs significantly by race and ethnicity. The Hispanic population is relatively young and its age structure is "pyramid shaped" with a broad base of young people and a relatively narrow top. In contrast, the white, non-Hispanic population is much older and its age structure has a smaller base of young people and a higher concentration of older people. The combination of the youthful Hispanic population and the aging white, non-Hispanic population gives California a relatively even age distribution and makes California younger than the nation. California's total population Is aging but still growing. • Median age is 35, up from 33 in 2000. • Young people age 0 to 19 account for 28% of total population, down from 30% in 2000. The working-age population increased to 61% of total population and the population age 65+ remained at 11%. • The number of young people increased by 2% over the past decade. Total population increased by 10%. The white, non-Hispanic population is older and rapidly aging. • Median age is 45, up from 40 in 2000. • Just 19% of the population is under age 20, and 18% is age 65+. • The number of young people declined by 19% over the past decade. Total population declined by 5%. The black, non-Hispanic population is similar to the state, but aging faster. • Median age Is 35, up from 32 in 2000. • The age mix is similar to that of the state: 28% ofthe population is under age 20, and 10% is age 65+. • The number of young people declined by 17% over the past decade. Total population declined by 1%. The Asian, non-Hispanic population is older, with a larger concentration in the working ages. • Median age is 38, up from 34 in 2000. • The young population accounts for 23% of the total, the working-age population for 65%, and the population age 65+ for 12% of the Asian population. • The young population grew by 13% from 2000 to 2010. Total population grew by 31%. The Hispanic population is much younger. • Median age is Just 27, up from 25 in 2000. • People under 20 make up 38% of the population; only 5% of the population is age 65+. • The young population grew by 19% over the past decade. Total population grew by 28%. STANFORD mi CENTERON a LONGEVITY 4 Understanding California's Demographic Shifts The Intersection of Age and Ethnicity 11% Age Mix by Race and Ethnicity, 2010 ~~10%" 12%^^ 6%—5%:' Total White, Blaol<, Asian, Other, Hispanic NH NH NH NH Note: NH=non-Hispanic Source: US Census 2010 Race and Ethnicity by Age, 2010 • White, NH siBlaci<, NH Asian, NH Other, NH ^Hispanic 0% 20% Note: NH=non-Hispanic Source: US Census 2010 The Hispanic population in California is significantly younger than the white, non-Hispanic population and has a large share of young people, 38% compared with 19% for the white, non-Hispanic population and 28% for the state overall. Conversely, the white, non-Hispanic population has a higher share of older people, 18% compared with 5% for the Hispanic population and 11% for the state overall. As a result of these divergent age structures, the racial and ethnic composition of the various age groups differs significantly. • The young population is majority Hispanic; 51% of the state's young population (age 0 to 19) is Hispanic and 28% is white, non-Hispanic. Ten percent is Asian and 6% is black. • Conversely, the older population is predominantly white, non-Hispanic: of the population age 65+, 62% is white, non-Hispanic and 18% is Hispanic. Thirteen percent is Asian and 5% is black. . STANFORD .W) CENTERON ZA LONGEVITY Understanding California's Demographic Shifts income, Poverty, and Unemployment Household Income Distribution, 2005-09 in thousands of $ (2009) 25% 1 20% 15% 10% - Less 10 25 50 75 100 150 than to to to to to or 10 <25 <50 <75 <100 <150 more Source: ACS 2005-09 Median Household Income by Race and Ethnicity, 2005-09 Note: NH=non-Hlspanlc Source: ACS 2005-03 Labor Force and Unemployment Unemployment Rate 14% Labor Force In millions 18.3 T— 12% 10% •07 '08 Labor Force —»~ Source: CA Employment Development Department '10 June •11 Unemployment The statewide median household income in 2005-09 was $60,392, about 17% higher than the US median income of $51,425. Income varies greatly across racial and ethnic groups, with median household income ranging from $43,397 for black households to $73,570 for Asian households. • In 2005-09, California households were more heavily concentrated in the higher income brackets than households nationally: 12% of households in California had incomes of $150,000 compared with 8% nationwide. • California also had proportionally fewer lower-income households: 20% of households in California had income of less than $25,000 compared with 24% nationwide. The poverty rates in California are similar to nationwide rates, with 13% of individuals and 10% of families living below the federal poverty level. • For individuals age 65-I-, the poverty rate in California is 8%, lower than the 10% nationwide rate. California's unemployment rate rose steeply from 4.9% in 2006 to 12.4% in 2010. The June 2011 unemployment rate was 12.1%, well above the national rate of 9.3%. (Note: The most recently released statewide data on household income from the Current Population Survey show that inflation-adjusted median income in California dropped by 5% from 2009 to 2010 and that the share of individuals with income below the federal poverty level increased to 16% and the share of children in poverty increased to 23%. These data provide useful information about statewide trends, but they are not comparable to the five-year ACS data used for the demographic profiles in this series.) STANFORD . CENTERON a LONGEVITY Understanding California's Demographic Shifts Education % Of Adults Who Did Not Complete High School :t 2000 •2005-09 60% 40% 20% 0% White, Black Asian Hispanic CA US NH Total Note: NH=non-Hlspanic Source: ACS 2005-09 % of Adults Who Attained a BA or Higher R2000 •2005-09 60% 40% 20% -r 0% -i-White, Black Asian Hispanic CA US NH Total Note: NH=non-Hispanic Source: ACS 2005-09 Educational attainment in California varies significantly by race and ethnicity, particularly for high school completion. One-fifth of adults in California have not completed high school. • Forty-four percent of Hispanic adults have not completed high school, compared with 14% of Asians and blacks. Just 7% of white, non-Hispanics have not completed high school. • Although high school completion rates have increased since 2000, California still underperforms relative to the nation. Nationally, only 15% of adults have not completed high school, compared with 20% in California. Statewide, 30% of adults have Bachelor's degrees or higher. • Asians have the highest Bachelor's degree attainment at 48% and Hispanics have the lowest at 10%. Bachelor's degree attainment among black adults is 21% and among white, non-Hispanics it is 38%. • Bachelor's degree attainment has increased since 2000 in both California and the US—to 30% in California and 28% nationwide. STANFORD CENTERON ^ LONGEVITY Understanding California's Demographic Shifts Households Households, 2000-10 Living alone Family w/o children FMiMrivhawi wfehlidrM, nehinband Mal* hMd w/cMMran, no wife 2000 Source: US Census 2000, 2010 2010 By Race and Ethnicity, 2010 Living alone family, nohusbancP Male-headed family, no wife* 10% White, Black Asian Hispanic NH 'wltti or witiiout children Source: US Census 2010 Living Arrangements Age 65+, 2005-09 I 7% I Group home With non- relatives 46% Mate alone With other relatives Source: ACS 2005-09 The share of family households has remained stable since 2000, accounting for 69% of all households, but the mix of family types has shifted. • Statewide, the traditional family household—a married couple with children—has been on the decline, with the share decreasing from 27% to 23% of total. • In contrast, family households without children have increased from 33% to 36% of total. Nonfamily households have increased in number but still represent about 31% of all households, with single-person households still accounting for 23% of total. • Single person households are most common among blacks and white, non-Hispanics at 30% of households, and least common among Hispanics, at just 11% of households. Husband-wife households, with or without children, account for almost half of all households. • The share is highest among Asians, at 59%, and Hispanics, at 54%. While most individuals age 65+ live with a spouse or other relatives, one quarter live alone, and most of those living alone are women. STANFORD CENTERON LONGEVITY Understanding California's Demographic Shifts Foreign Born 100% 80% 60% • 40% 20% i 0% Region of Origin, 2005-09 34% 11% Foreign Born: 9,739,226 % Foreign Born: 26.8% Asia Other Latin America Source: ACS 2005-09 Household Language, 2005-09 »i Linguistically isolated* At least one other language and English o English only 30% •Linguistically lsolated=No one In the household age 14 and over speaks English at least "very well" Source: ACS 2005-09 More than one quarter of California's population is foreign born. • Mexico is the most common country of origin, accounting for 44% of the immigrants. Another 11% come from other Latin American countries and 34% come from Asia. Only 7% come from Europe. • With nearly 10 million immigrants, California accounts for 26% of the nation's foreign-born population, more than any other state. • International immigration has declined over the last decade. Net international immigration totaled 2.1 million during the 1990s, but fell to 1.7 million from 2000 to 2010. Across California, 10% of all households are linguistically isolated, meaning that no one in the household age 14 or older can speak English at least "very well." In addition, 30% of all households speak at least one other language besides English. STANFORD CENTERON 'ii LONGEVITY Demographic Profile Carlsbad City Ubrary Highlights Population Growth: The total population in Carlsbad increased by 35% over the past decade to 105,000, while California grew by just 10% overall. The greatest growth occurred in the white, non-Hispanic population (16,000). Diversity: Racial and ethnic composition of Carlsbad has shifted somewhat since 2000, though Carlsbad remains predominantly white, non-Hispanic. The white, non-Hispanic share of the population decreased from 81% to 75% of total, while the Hispanic and Asian shares increased slightly. Age Structure: Carlsbad is older than California as a whole, though the age structure has stayed fairly constant over the past decade. The median age is 40, up from 39 in 2000, and compared with the current statewide median of 35. The share of the population age 65+ remains unchanged at 14%, compared with 11% statewide. Education: Educational attainment is much higher here than in the state overall. Just 4% of adults have not completed high school, compared with 20% of adults statewide, and 52% have a Bachelor's degree or higher, compared with 30% in California overall. Income: Incomes are significantly higher in Carlsbad than In California overall- median household income is $85,000, which is 41% higher than the California median of $60,000. Population by Age This demographic profile Is part of a series of library Jurisdiction profiles prepared for the California State Library by the Stanford Center on Longevity. The project, "Understanding California's Shifting Demographics," was supported in whole by the U.S. Institute of Museum and Library Services under the provisions of the Library Services and Technology Act, administered in California by the State Librarian. The opinions expressed herein do not necessarily reflect the position or policy of the U.S. Institute of Museum and Library Services or the California State Library, and no official endorsement by the U.S. Institute of Museum and Ubrary Services or the California State Ubrary should be inferred. rAV STANFORD CENTER ON ^ LONCEVITY Page 1 Demographic Profile Carlsbad City Library Key indicators Population Growth Total population 10-year growth Diversity Aging Households % Hispanic % Asian, non-Hispanic % White, non-Hlspanic % Black, non-Hispanic % 65+ Median age % Married couple with children % Living alone 2000 78,247 24.0% 11.7% 4.2% 80.5% 0.9% 14.0% 38.9 24.2% 24.6% 2010 105,328 34.6% 13.3% 7.0% 74.9% 1.2% 14.0% 40.4 25.5% 23.9% 1. Population by Library-Defined Age Group, 2010 In thousands; males on left, females on right 2. Race and Ethnicity by Library-Defined Age Group, 2010 • White,NH «Black,NH Asian,NH Other.NH w Hispanic Age group Total 86+, Oldest 66 to 84, Older adults 46 to 64, Midlife 33 to 46, Adult 19 to 32, Young 14 to 18, Teens 11 to13, Tweens 6 to 10, School age 0 to 6, infants/toddlers 16 16 0% 20% 40% 60% 80% 100% 3. Population Growth by Library-Defined Age Group, 2000-10 1 2010 t Change: % Change Total j 105,328 27,0811 34.6% 86+1 2,709 1,579! 1397% 66 to 84 1 12,089 2,239 j 22.7% 46 to 64 1 28,548 10,763' 60.5% 33 to 46 I 20,156 1,810i 9.9% 19 to 32 1 15,319 3,185i 26.2% 14 to 18 1 6,977 2,394r 52,2% lltoisi 4,4231 1,353; 44.1% etolo 1 7,375 38.4% 0to6 ! 7,732 1,710; 28.4% 4. Population Total, 1990-2010 In thousands 1990 2000 2010 5.10-Year Population Change • 1990-2000 • 2000-2010 California 0% 20% 40% Source: US Census 2010, 2000, or 1990 Prepared for the Califomia State Library by Stanford Center on Longevity, 9/12/2011 Page 2 Demographic Profile Carlsbad City Library 6. Population by S-Vear Age Brackets In thousands; males on left, females on right a)2000 b)2010 7.10-Year Change in Population, 2000-10 a) By Age In thousands b) By Race and Ethnicity In thousands White. NH Black, NH Asian, NH other, NH Hispanic 10 20 Chang* J34.6% 8. Population by Age, Race, and Ethnicity, 2010 In thousands; males on left, females on right White, Non-Hlspanic Blacl<, Non-Hlspanic Asian, Non-Hlspanic Hispanic White, NH Population 78,879 Share of Total 74.9% %66+ 16.3% % 20-64 60.8% % under 6 5.1% Black, NH 1,232 1.2% 7.5% 63.2% 5.4% Asian, NH 7,336 7.0% 11.7% 64.4% 5.9% Hispanic 13,988 13.3% 6.0% 57.2% 8,9% 100+ 90-94 80-84 70-74 60-64 50-54 40-44 30-34 20-24 10-14 0-4 Total* 106,328 100,0% 14.0% 60.0% 6.0% 9. Age Mix by Race and Ethnicity, 2010 100% y--: r ,-_. Total Wh, BI, As, Oth, Hisp NH NH NH NH 10. Foreign Born, 2005-09 Region of Origin 100% T 80% 60% i 40% -I 20% 4 0% Foreign Bom: 11,807 % Foreign Bom: 12.5% SouiM.'ACS200S-0S Other Latin AiTWfiea 11. Household Language, 2005-09 !«Linguistically Isolated** At least one other language and English « English only Sourer ACS 2009.09 Wh=Whtte; BI=Black; As=Aslan; Oth=Other Race or Two or More Races; Hisp=Hispanlc; NH=Non-Hispanlo; ACS=Amerioan Community Survey 2005-09 "See pages S-6 for detail on Other, Non-Hispanic ••Linguistically Isolated = No one In the household age 14 and over speaks English at least "very weir Source: US Census 2010, unless othenvise noted Prepared for the Califomia Slate Libraiy by Stanford Center on Longevity. 9/12/2011 Page 3 Demographic Profile Carlsbad City Library 12, Household Income, 2005-09 In thousands of $ (2009) a) Income Distribution Less 10 25 50 75 100 ISO than to to to to to or 10 <25 <60 <7S <100 <1S0 more Source: ACS 2005.09 b) Median Household Income by Race and Ethnicity' $S0,3S2 Total Wh,NH Hisp $0 $50 $86,146 $88,627 $91,643 $100 13. Labor Force and Unemployment, 2006-11 Un«mployment Rats '07 '08 Labor Force •™'- Source: CA Employmertt Development Depatlment Unemployment 14. Household Type, 2010 % of all households a) Total, 2000-10 2000 2010 b) By Race and Ethnicity," 2010 Wh,NH BI As Hisp 15. Average Household Size, 2010 By Race and Ethnicity* 6 r t 5 t 4 Total Wh.NH BI As Hisp 16. Living Arrangements Age 6S+, 200S-09 1% Group homo With non- rolatives 43% With Source; ACS 2D05-D3 17. Educational Attainment for the Population Age 25 and Over by Race and Ethnicity* b) % of Adults Who Attained a BA or Higher 100% a) % of Adults Who Did Not Complete High School «2000 •2005-09 S2000 •2005-09 80% 4 I 60% •!• i Wh.NH BI Sourc*: Census 2000, ACS 2005-09 As Hisp Total CA Wh,NH BI As Hisp Total CA "Wh,NH=White.Non-Hispanic; 8l=Blacl<,Hispanicinclusive; As=Aslan,Hispanic Inclusive; Hisp=Hispanic(lnciudes all races); CA=California Total Note: In the American Community Suruey and for Census variables other than population, Hispanic origin Is not broken out for ail races. Source: US Census 2010, unless otherwise noted Prepared for the California State Library by Stanford Center on Longevity, 9/12/2011 Page 4 A..,u. ''"'"'•^ Government? A White Paper Intended To Provoke a Needed Conversation Prepared by A, '^^''^ (^^"^ratlon Advisors, Principal MarkDanaj, Debra Figone,and Kim Walesh, City of San Jose Presented at The Alliance for Innovation BIG IDEAS: The Future of Local Government October 14-16,2011 Fort Collins, Colorado BIG IdEAS The Futlire of Local Government' October 14-16, 2011 For. Collins, CO -1- Big economic, technological and social mega-forces threaten the viability of local governments across the nation. The question "What's the future of local govemment?" is not just a topic of academic interest but a critical business issue for public agencies. If a local government can create a vision or story about its future, it can help shape that future. Without a vision, a public agency will be reactive and forced to change, one crisis after another. Sponsored by the Alliance for Innovation, this white paper suggests an emerging model for local government, discusses the experience of the City of San Jose, CA, in re-Imagining Its future, and provides some big questions that will hopefully provoke further conversation about the future of local government. Crippled Public Agencies The traditional direct service model of local government is now seriously threatened. It is not just the budget, staffing and service cutbacks crippling local governments. A whole series of forces calls into question the traditional model, including: Escalating demands and mission creep. Over time, citizens have increased their demands on local government to respond to a whole variety of issues. Currently, local governments are being urged to respond to climate issues, the home foreclosure disaster, the "retirement wave" of baby-boomers and the adolescent obesity challenge (to name just a few). Consequently, local governments have become full-service organizations that attempt to be all things to all people. To exacerbate matters local govemment leaders have an heroic urge to respond to any new community problem or demand with a public service. Mandates without money. Local agencies have increasingly been mandated by state and federal governments to provide new services or enforce new regulations without sufficient funding thus siphoning money from other more basic services. Static structures. The organizational structures, systems, processes and rules of local government are onented toward a static world, Rigid job classifications, civil service and hiring rules, and purchasing and contracting systems are not aligned with a dynamic and disruptive world. For instance, a public agency cannot compete with a private corporation that can hire a soon-to-graduate student on the soot at a university career fair. Accelerating technolnpy. Technology is changing all service delivery. As just one example, a number of local governments have launched smart phone applications so that residents can report potholes graffiti, sidewalk damage, and other sen/ice needs. Several years ago, whoever would have guessed that public officials would be tweeting constituents about community issues? Local govemments that failed to invest earlier m enterprise-wide systems now commonplace in the private sector (1 e to manage constituent relationships, content, assets) can't harness the true benefits of the social media revolution. Big challenges cross honndarips. No one institution-govemment, business, faith-based groups non- profits, educational agencies-can solve any one problem. Regardless of budget resources the dty police department cannot resolve by itself a major gang violence problem. All the big adaptive challenges of the day (e.g., economic vitalltv, climate protection, family stability, reinvestment in infrastructure, educational achievement, and immigration) require boundary-crossing -2 S^^^'Sa'glt^^^^^^^^^ Often based on the old industrial economy is now service and knowledge-based ^he ornl . ^^"'^our does not generate tax revenue to fund locSln J ^ " °^ °' of knowledge politicalwillformodemizationthTa^^y^^^^ govemments are to perform their historic rote. '"^""^ ^'"^^ economy if local ^^^ssZllZZc^^^^^^^^ ^-«ts in the past could provider. Oeciining confideL in alS, ^^^T^^^^^^^^^^^^^ convergence of forces, including anti-government Inf. '"''"'^'"^ government, is based on a cty hall, an inability to effectivdy address tTbig^^^ -^o run against scandals. Citizen mistrust is reflected in hJnf T > confounding communities, and periodic public's seeming unwillingnes:tt^^^^^^^^^^^ -^^^ -trictions' as we,, as the worse, citizens do not understand how servi L are^!^^^^^^^ ^o make matters betweentheimpactsofba,,ot.boxbudgetln:rdr^^^^^^^^ The "Vending Machine" Is Broken responsibility for the problem or the solution ' <=o"s<^mers, people take no adaptive challenges which cross boundaries ' " " '"^'^^''''^^^ to tackle the big The Emerging Model we are entering a new era "where the gr^at task of 2 """"''^ ^^P^rt has stated awaythings from people." AS local gove?^^^^^^^^^^^ restrain pay and roll-back benefits, shutterSin«s and ^ '"""'"^ '"'^ ^^^'"S' to businesses, we will need to eng ge in d fficTt co'^^^^^^^^^^^ '° ^"^ ^"^sidtes roles and systems of loca, govemment ""^^^^^^.ons focused on redefining the expectations. Given this new era, we belipwp that tt,«,« local governments. ' ''''' «'«'"«nts to an emerging model for viable 1. More disciplined government, focused on its "core" businesses -3 services may be essential but police and firTpraerar nn^^ . K ^ ^"T"''"*' ^^^^^V the county or a joint powers authority 1 erhX m^^^^^^^^^ '''''''' indicate that their agencies wanted to keepTn houseTand / T^'T ^'"^ ^'"^ and economic viability of their communTties nl i^ '"^ ^'^'"'^"^ *° P^^ysical character in their communities) '=°'"'^""'t,es) and park programming (related in part to the quality of life ^Sei:^^iSc~^ core is defined (no easy t sk), then eSed^^^^^^^^^^^^ '"^ ^"^^ ^^^^ core businesses and not get distracted ' management need to be focused on the desired by the Council a'nd "e rmunrty 1^^^^^^^^^ °" ^ and the governing board can decirtriur^of th^n . ^'^^-P™"*^ management should local govemment de ver e v^e tse°f o '^^^^^^^^^ -a-P'e, (presumably at a lower cost and perha^"fS:^ ' ""^^ -*'*V 2. Demonstrating value increasingly strident voices if they are r^^^ n^^^^^^^^^^^ -^-^ i" streamlining, performance measures and othefaccoulbHitv Iffol V^^^^ cost structure, govemment improves its value proposition '"ftiatives as local 3, Integration of technology into ail service delivery requir, flexible and e e"Z*T=mplov«^^^^^^^^^^ organizational structures and practices will little, do some research, respr' make Sll f ?™ «"V kno» model of loyal, compllam c^^^I.^^^^^ *T '""""'^ =^ '"^ 8o along. The motivated, Chang JrofWe Tar^TaSe* ""'•o are self- •4- ^e*mesll:rn',^'^^^^^^^^^^^ 5. Shared services include: '"'"B i-ervices to the public. Shared service approaches kinds of sen/lce. Instead of directs Serin,' T" """""^ "Santeations to deliver ali facilities, some level o, JZn2, t ZV's,^^^^^^^^^^^^ ".TT"" P™"'* '"^Ir expertise, organize aner-school programs, n^lZ rood s^a^ economic development activities. Planting and maintenance, and 6. Nongovernmental solutions Given the continuing llmftations of pubt^^^^^^^^^^^^ 1?"^" ^'"^'^ S'^^" ^°"^trained resources. Vitality, affordable housing, gangs, e^c:^^:^^^^^^^^ among many. With an issue-centric approach local sov^rllTi T '"^^^^^'"^•i^st one partner urge to take on every new challenge. government leaders can better resist the heroic 7. Authentic civic engagement g":r:;,Trrn:r^j::.t-- .ocai local govemment officials IT,« stert conveiSttas llthtE T ' '""^ problem-solving, integrate the InterlrSe L"e "nd^ X"' T'"' authentic engagementcanlocalgovernmen^trSo"^^^ Committing to authentic engagement requires a "bam-raisini!" model ,„„i agtanan past, fami,.s who needed to raise a barn wou« Z:ZI:ZZ''';ZoT.l°"' hold a ladder; someone else would hammer; others would bring the food for all the workers In addressing complex adaptive challenges, local govemment needs to put out a call for different kinds of contnbutors and engage them in "barn-raising" As opposed to the vending machine approach barn raising IS an asset, not a deficit, model. ^-Mproacn, oarn 8. Change in Workforce Even for the most sophisticated agency, all of the above elements in the emerging model portend goals will be based upon alliances with intemal and external partners, with a lean core organ^a^n managing relationships with providers on behalf of the organization's constituents. For ex mp l in San JO e the city parks department was able to avoid some summer pool closures because of new th nr^^'t. T^^J ^""''^ ^P^^^*^'-^- Th'^ ^°del was very different than the traditional and increasingly unaffordable model of staffing pools with city employees. Given the move toward self-motivated, adaptable workers, agencies will have to prepare for employees who are more se f-reliant in their careers. Workers will depend more on themselves thanThe ' organization, looking to the agency less for lifetime employment and security and more for sklll- building-something smart organizations will provide In order to have a competitive edge in attracting a! onl It th f °^ '°^"^P'°V- -changi for Jfe ime mp ym^^^^^^ has long left the private sector. Local govemments need to adapt to the new social contract of pub,' Knowledge-sharing and portability will also continue to grow and influence the local government ndscape Knowledge used to be something that was hoarded (the more knowledge I haveThe more I m worth) bu now this approach is progressively viewed as weakness, especially among knowledge workers. Employees want opportunities to leverage knowledge-sharing. This is mosrevfdentl the explosion of social networking opportunities. In addition, few boundarL will exbt for len and wh^^^ work IS done with perhaps some continued exceptions for public safety services. Emp oy e wH exl flexibility on where and when work will be performed. As job tenures becoming shorter ^me mav see rill" TI7 ° f movemen tayZr tradit onal defined benefit toward the defined contribution retirement plans may be seen a complementary to this portability trend. "ciyDeseenas Lastly as local govemments become leaner core organizations that provide services through convening stakeholders, facilitating adaptive challenges and managing relationships with internarand external providers, the relative make-up ofthe local govemment workforce will become evTn more ^olL worker in composition. Knowledge work involves more diverse and amorphous tasksIuTded by ' professional judgment as opposed to traditional production or clerical work whirh k r«n i . and predictable USOepartment of LaborstatlstiLlreadydem^l^^^^^^^^^^^^^ government workers are twice as likely as their private sector counterparts to have a cnlS nr advanced degre^ The leaner local govemment of the future is C^^^^^ than the general labor market and represent a diversity of professionals. -6- Promoting the Emerging Model To promote the new model of local govemment in an era of take-aways, appointed and elected officials need to engage diverse stakeholders in courageous conversations about limitations, expectations, and the what and how" of govemment. While modernizing and reforming contracting, purchasing and CIV. service systems are absolutely essential elements of the emerging model, local govemments will still be held to high standards. Citizens and their elected representatives will continue to require fairness, equity, accountability and transparency-key ethical values that are the hallmark ofthe public sector, especially local govemment. These changes will first require conversations with all parties in order to surface issues and obstacles and then ultimately political courage by local govemment leaders. In addition to demonstrating courage, local govemment agencies must free up "slack resources" to make strategic investments, either by over-cutting or by partnering with other entities. These strategic investments include investments in technology and employee development. Government now needs to reap the benefits of IT-led productivity growth that has acci-ued to the private sector in the last three decades. This means investing in enterprise-wide IT systems, such as Customer Relationship Management {CRM) systems, Enterprise Resource Planning (ERP) systems and Knowledge Management (KM) systems. Of course, with approximately 70% of all our resources invested in employees, we cannot Increase the productivity of knowledge work without Investing in employee development through new learning and employee development initiatives. As opposed to IT mvestments, learning Initiatives are relatively cheap. These include job rotations, special assignments interim positions, talent exchanges internally and externally, team leadership assignments, and soft ' skills training. The San Jose Experience In a time of transition and uncertainty, the City of San Jose, CA, is proactiveiy envisioning a new future. The City of San Jose serves over one million residents under a mayor/city council/city manager form of government. Over the last decade, the City has faced persistent budget shortfalls as cost escalation continued to outpace revenue growth. This structural problem grew far worse in the last few years as a result ofthe economic meltdown that led to significant declines In the City's major revenue sources as well as escalating retirement and benefit costs. Drastic budget balancing actions have closed General Fund budget gaps totaling $565 million over the past nine years, with more than $200 million of this addressed in 2009-2010 and 2010-2011 alone Since 2001-2002, more than 1,600 positions have been eliminated, a 22% decline in the workforce Over 1,100 of these positions were eliminated in the last two years, resulting in over 200 layoffs and the bumping of hundreds of employees into other positions and departments. City staffing levels now stand at 1994-1995 levels-when the City's population hovered near 825,000. Under the leadership of Debra Figone, City Manager of San Jose, the city's senior management team has begun to develop a new story for its local government. The senior management team initiated a discussion around three key questions: What Is our city government like today? -7- What should our city govemment be like in four years? What must city leadership prioritize to achieve our new vision ? (at end of document) Provol<ing a Needed Conversation ^™s"t\~?u?:hX:re ''"-"^ •« TO help initiateZ ~T:::iZZ~^^^^^^^^^ "^^'^ *k,„g. *:,Lnge?""°''^-"ory or long-term ro^Wmlnrjeto^^'^^''^'^ ^'^ '"-«^« - «-'o*g*e viahiiitv of ;:ctg;::a:re«:r:v;''"''^""''^=^^""''* in practice, how do local government leaders rebuild trust and confidence in our public agencies? if the traditional model of local government is not viable In the mW t„ i„™. must loca, govemment leaders take now to move towardT^^^^^^^^^ '^'^'''^ ^'^^^ Again, the future of local govemment is not an academic issue The viahil/tu nf / agencies is based on our ability to re-envision our gove nmln!'JH f, 7 , us in the desired direction. government and figure out real-world actions to move Participating in the Conversation To participate in this needed conversation, local govemment leaders cAn pm.ii th • white paper and respond to the following issues " *° • What resonates with you? • What does not resonate? • What do you have to add to the discussion? Please email your responses to Dr. Frank Benest at frank(afrankh.n,.t -8- lL^7aS:rtn~ ''^^ ' '""ow-up document via Thank you for your concern and commitment to the future of local government. .r;rrHiri~o^.Tj^:;rid"or'^^^ " ^ark Pa„a| is Fremont, CA^Dr Frank Benest IS thrf rmer c,"^ consultant to San Jose. 'vianager ot Palo Alto, CA, and currently serves as a -9- ' Security and certainty gone; ail is in flux ' Fiscal sustarnability threatened Antiquated systems: revenue, civil service, IT Now doing less with less Some "traumatized" workforce Public-private is blurring • Open government is way of life • Boomer retirements coming; looming loss Civil service rules prevent sustainable workforce and succession planning Traditional City model feels outdated • Align expectations to reduced organizational capacity • Deal with financial challenges head on • Take smart risks, reinforce safety net • Reform retirement benefits • Reform compensation structure Reform civil service system • New Models/Outsourcing/lnnovation • Succession planning • More partnership with community • Cost control for public saiety • "Green" infrastructure replacements Revenue generation • Embrace technology solutions; make IT investments Consolidate services across departments • Uneven approach: regulating vs. facilitating 3. • Enable outside partners to deliver services, rather than delivering them ourselves • Smaller, highly skilled, expensive core staff • Residents are citizen-partners, not just customers "buying services" • More focused; more capacity to prioritize work • Employee costs aligned; but "Tier 1" talent retained/attraaed • rr fosters more efficiency & reliability • Smooth transition to next- generation leadership • Willing to take risks to get rewards • Many alternate models • No silos within or across departments 7 7 WORKING DRAFT: For conversationjpnlyj .^^wt^wUg-n.j<,.,^aw ^^^^^^ I T WORKING DRAFT: For cowersation ^^itiT] Local Govemments in the Wake ofthe Great Recession- Are Big Changes Ahead? Prepared by David N. Ammons. Karl W. Smith, and Carl W. Stenberg University ofNorth Carolina at Chapel Hill Prepared for The Alliance for Innovation BIG roEAS: The Future of Local Government October 14-16,2011 Fort Collins, Colorado - BIG lbEA5\ The Fuflire of Local Government* Octobers-16, 2011 Fort Collins, CO Introduction The U„iW S,»,es. „d worldeconomie,, look .„ „„„„„us hi, i„ ^ 2m do«„m, s™di„g waves ftrough gov.m„e„.^„ ^ ^ ^ Of U.S. local gove^mcs have led »me observers u, predic, ^ ^ ^ will sweep across the local govemment landscape as cities and counties not only adjust to a "new nomal" of perpetually constrained resources but also cope with mounting problems of deferred infrastructure maintenance and unsustainable pension and health care commitments. Forecasted features of local govemments of the new normal include frugal budget choices and reduced scope of services; slower growth or even decline in employee compensation; more privatization, intergovernmental contracting, and public-private partnerships; and perhaps even a transformation in how govemments choose their tasks and generate their revenue (Goldsmith 2010, Brock 2009, Miller 2011, ICMA 2009), We will offer in this paper our owft thougiits on the future of local government, based in part on our assessment of the resiliency of cities and counties in the wake of previous crises and tlieir tendency to adjust modestly and evolve gradually to a changing environment. Forecasts from Others In the late 1970s the Intemationai City Management Association's (ICMA) Committee on Future Horizons confronted a troubled local government environment in which service demands outstripped resources and encouraged governments to "learn to get by modestly" and rely on more public-private cooperation (ICMA 1979).' Other groups studying the pliglit of state and local government in the 1970s and 1980s similarly noted a mismatch of service demands and resources, compounded by "a cascade of infrastructure and environmental problems" (Hitchcock and Coates 1985), Today's predictions of the future of local government emphasize the persistent problems of escalating demands, mandates, rigid systems, citizen mistrust, and a tax system that is "out of whack" (Figone, Walesh, Danaj, and Benest 2011). Warner (2010) forecasts strong pressure to privatize infrastmcture investment but waning zeal for outsourcing local services; the further fragmentation of local govemment, fueled by "private 'club'" approaches to providing public goods; greater attention directed toward long-term consequences of decisions; and a rebuilding of the capacity of local govemment, especially with regard to fmances. public employment, and citizen engagement, figone et al (2011) forecast an emerging model of more disciplined local govemments that focus on core "businesses." make greater uses of technology, emphasize collaborative service delivery and .ong„v,« ^_ ^^^^ ^^^^ ^ ^^^^^^^^ ^ citizens more than in the recent past. M«y Of .he challe-^es ftoi,g l„.al g„v™«, ^^^^^ P».i«en, ra..e,.a..oow. B=ca.» *e ohaUeng. ,„ ^ „,„„^ government landscape. Change in Local Government through the Years A^aHcn i„., .^evoL^over o,„,3. -io. Have oh.„,.. P„ ^ ^^^^ ^^^^^^ ....o,.o™,„ .0,0. «l omo.. ,„ ™. ^^^^ way ,0 ,„„„ .„..o,.i„ ,he h„d, of an „ ^ «e» op»a«„g .aer... „ayo,.„„ocll of „, ^ S.r„c. .,v. „pa,*. a., ^ ^^^^^ ^ ^^^^ ^^^^^ P.0f..l„.., ^^^^ ^^^^ 01..=.,, .ew „,«s of ciWo oo™.„..,o„ a„. engage™. .„ available ,o .os. wKo ,„ use them, .ore Of,™ ... ,ee„ „„,„,„„.^ . ^ i..n. pre,s„re.-.Ke Grea. Oep.eaaioa a. ,Ke —most changes have come gradually. 3 LOC. go..™,. „„, ,^ „„,„„^ ^ ^^^^^ , _ ^ ^^^^^ 2009, atao.. .o.*Wa of r.p„*g lc„a, gov.r„„™, „^ impa^ .Ke econo^, ^^^^^^^ or .Ke r..p„„.e„« „ .„ ^_ ^^^^ y«(Wa,„»a„.Z.e„,,„„, W a. aot ,|g„.|„f ^ few *a an. oon.,,.. ^„ ,^„, „ ^ ^^^^^^ ^^^^ these bca, g„v«s will be far ou«.,ed by .tose ™Hng less .,a.o..ie or .emporary *.„g. lo cushion .he blow, adaphng only to .he exttn. necessary. Lmon. from Severely Dl.t™.ed Loci G«,emmen.t ot the Past Many individoa, d,ies and counties have ..p.,i.„e.d .hoi, own financial cri.es every bl. a. severe ss .he cnsis n,o,. b,o.dly conf^onhng local gov.™.. „d.y, Local gove™. fhctog defaul. often have fou,.d .he au^o.^, of .heir elects and appointed ofBdais le^po,.,,,, ,e,„ced o, suspended and theiv affairs managed by a s.a...appoh,«d financial conM bo.,d (FBC) (Henry e. al. 1998) Th. power. Of an FBCfar e.c«d .hose of ,he loCly CecM „fr,cl.s .hey s.,pplan.-p„w„s g™n.d i„ an effort .0 ngh. a sinkhrg s^p, granrin, s„ch powe., s.a.. has "chosen ,o pass up opporh.i^ .0 mvoive ci«.ens in decision making ,ha, affec „,eir |iv. ,„ „f , ^^^^^^ decisive aodon by •experB' ire. fron, poMcal co„side»Uons" (Henry ., al. 1998). Tha. s*. co„sis..nUy »e Ure s«p of appoinhng ,„ FBC when local g„ve« f... fiscal emergencies is .estoony » dre difKcul^ of imposing sweeping refc„ns on oneself. Even on ,h. brink of financial «a„h .hes. local gove„™»« hav. b„„ nnabl. „ ...p ,,3^ appolnled .„ do for tan wha. .hey had been unable .0 do f„, .hemselves. FCBs ,00k .he steps .ha. had been .00 pahrfn, for eieced officials facing .h. c.r«ln wra^ of employees and co„s.i.u.„,s » «ke Wh..does *iss.y abou. ,„. likelihood of d«n.ric and sweeping changes in .he wake of ,he Grea. Recession? The i^sons of d,les and counlies ta severe economic crises of >he pas. have shong implicaUon. for onr view of ta. tarr. of local govemmen. more b,.,dly. Absen. o.«e con.,ol majo, e«br. for reform are likely .„ be blocked by insid.™ as well as tae popuiadon a. large. S.v.„l cases illuswe how difficuK change can be. When .he city of Chelsea, Massachusete, feced defanl. in early 1990s, local officials found i. impossible ••u. stay focused on tae primary ml.,i„n-p,„,idtag basic aewices ,„ ta., dteen.. ,ns«.d, pollhcian. ^ ^ ^ _ ^^^^ of conrpedng Interest, law. and rradlUons which have created a dangerous polUicai s»iema,e" (Cyr, ,993). The ci^ was s„b.,ne„dy placed under receivership. Many of ,he reform, naade ,0 move Chelsea from tae brink of di.as.er we„ possible „„„ because of tae fecial nata„ of tae ,eceiver relationship. F„, example, . new conlrac wi,h fi,^,gh,ers d^ed .Tai, .0 tae ci^,, .h. ci.i.ens and the fr^fighta. " by .he assist receiver. " was only possible because tae receiver did no. have » nm for „.el„.ic„ and face .he wrata of an organized, focused opposition" (Cyr, 1993). Chelsea underwen. radical Chang.. I. adopled a council-manager fo™ of govennnen. and emerged ftom receivership in 2005. Sri., .he opposidon ta change remained ^le„.i„,. On. of tae candidal. e,ec« ta tae cily council wa. a former police officer, who had been indictad earlier on co^up-icn Charges, bu. ran for tae council o„ac»,paig„ .ediced » reverstag „,e effor. of tae receiver (Cauellos, 1997). This s,o,y Of enormous poliiica, „bs,.c,es .o change has been repeatad m Cher localities The c.^- of Vonkers repeatadly smuggled agains. anancial dimculries, ,„ ,975 Vonkers ™s placed Vonkers in ,980, ye. by , 984 Yorkers was again l„ „.c., n,„,,, « by dramahc changes bu. instead via "a hiring free, and pl... fo, drasdo cuh," (NVT, ,998, When s,.,..appoi„ed reformers a,e given special autaorily and do no, hav. ta answer ta .he opportunity. Tension Points on. of .h. reason. „„ ^ „,,„^^ . ^^^^^^^ ^ ^^^^ change has no. been ..nsfo^adona, is ,he presence of compedng polidcai. economic, .d syslemic pressure poln. 0«« l™a| o,«e,als and many ci.l.„s « taemselves d„™ ta „„. ^ .he otaer of eompeilng demands and ar^men.. Poilowing are nine key areas of .ension taa. have been featured in .he on-going "tag of wa.. over ,he si.e, scope, and shuc^e of ,oca, govemmenis, .oge.he, wita ourpr^licions regarding taei, influence on fi,ta,e dir^Hons. Onfy Core Senica „. FuU-Smlce Local Grnvrntenl H ha. ^ .„gg„.ed ,h.,^ ^ ^ eore services, and adj... cito, expooladon. regaling tae »ope and ,uall^ of services prided trough 1.0,1 and fees. Insfead of tae -vendtag machine" model of local govemmen. wita —ng for oid^ens. every desire, tae new norina, will cal, for l.a„„, Itariw se„ice orgam.a.io„s with a "less for less" philosophy (Mill., 2011. Scoison. and Pierhopie. 2010). Wha. ,emai„. unci..,, howev.,, i. how local oaicinls wil, choose "core" ,„cl services and ta wha. ,hes. .ervice. wil, be advantaged. Hi.tarical,y. essentad services in mo,. oi.ies included lire and police protacSon, watar and sewer services; she., and sid.„alk m.i„.enance, and »a.h cllecdon. Some conamunide., ..pecially .tae wita g,ea«r affl.,e,.ce, added libraries and parks and r.c„.ho„ ta taeir lis,. During previous periods of budgetary ctaack, tancioos considered core m a given communis, were usually „fr,he ,ab,e due ta tae polirical clou, of .heir shrkeholdcrs. As tae economic crisis co„ta,ues, wepredic. taa, even co„ services will be ta,^eW as candidates fo, .rhnming bu. taa. few s»vioes-eve„ „on-co,e servrce^™,, be e,imina.ed. Advooata. for a given service wi„ be abta ta preven. outagh, e,imtaado„-^.cep. potaaps ,b, tae few services whh smalto, polidcally weak „„.dtaeucies-.„d maybe able ta co,.vi.oe local manages and eieced Officials ta restate cuta ta taeir fivor^ services when budge. oondiSons improve. oon.„ry ta new nomral expecta.io„s. Core .„™.s win receive f.v„„d tre.,m.n. .^oughout tae crisis, bu. tae norion tha. taey will b. cushioned by ,..„.,,.., made available .ho=„gh .he eliminadon of many non-core services is unlikely to be realized. 2. Cutting Costs vs. Raising Revenues Adjus.i„g ta an enviromneo. of growing s„vice demands and dimi„,.hed resource will refute local govemm»,. ta And ways of cutang cos... rWing revenues, „, appro^hiug ,h. p,„b,e„ on each «de of tae ledger by dotag some of bota. Comlnumg reiuo^nce ta «se tax. will pu. addlrionai ag^ssively. The open ,ue.hon, however, is whether tae economic downtam will acually p„pe, tae adopdon cf d.ta-driv., resuhs-orien.,. managemen. p«i.es a^^^d by cridc. of ,he statas ,»o bu. embraced by «,a,lve,y few local govenm,en« undl now. mi .he public and ils represenutaves now insis. on smartar aud more aggressive r.«.geme.. and tolerale no less, Ahnos. inevitably, c«,hac,lng for ,enrtc» will ^ata pa„ of tae «rr,ice delivery mix. Whether co„«c.tag Wita f«.-pn.fitl,„n,n,„p,o„,,„,„^„^„ Wh„ is les. ee«.ta is whetae, gcver^en^ will be p„den. abou. .hei, con.a.d„g choices-i.e., Wring conriacring wita ta. pr,va,e secta, ta tastances whe,e tae local economy .„ly provides a comperidve envlrorunen. and hmi,tag all fomr. of connacring (private, nonprofit, and intergoveounental, ta l„.«nc. where careful analysis demonstaates the Idteiihood of actaal cos. savings. D«pita c„ri„, dis^ess, public p« ,0 manage Imiovadvely and aggressively migh, no. be as strong as some may presume. Survey research shows taa. ci.i.n sa,istacrion wita tae services taey are receiving ftom taeir local govemmen. has no. declined durtag tae econom.. downnun (Mller and Hayden 20U). Even in .bese difflcul. ec«„mic rimes, "mos. residents in mos, commmutles across America ar, pleased M,, where Ihey live and wita ta. services ,h.ir local govenunen. provld..- (Mill.r and Hayden 2011, „), This is «y tae semlmen.wiil compe, drama.,, tasrupdon of ,h. status quo. Uldmately, we envision a modes, increase in p,essu„ ta adopt .mar,er, more aggressive mauagdn™ practe. bu, such pracics «-|l * roo. only ta seleced local government rataer taan witaou. reducing servic. We also envision co..i„ulng effort ta broaden tax bas..-f„r instance by •ddtag services and Interne, sale, ta .he base-ratae.. .han by relying on increasing tax rates. W. ... little encouragement for the latter. 3. Regionalism vs. Localism •nte condnuum taa. ™,. from regionUism ta localism p,«e„« a ™g. of possibiildes fo, organizing a in..ropol,.an area. At one extreme, a region would be characerized by an authoritative me,ropo,ltan o, area wide government probably as a resuh of a ciiy-coumy consolidation. A. ,he otaer exuenre a region would exhibi. ex.e..lv. fr,g„.„ta.io„ of govenunentai um., which would engage ta volmrta^ coperalion ordy where mutaally desired. Evidence mdlcate. taa. the vast majority of me.opol,.„ areas m tae United State, are closer ta the localist end ot .he speo.,.m, but wita extensive cilaboralionl., arrangemorta for various hmc,l„„.-e.pecla„y for capital i„.e„,ve ,ta„io„. .uch as water and sewer. The Grea. Recall™, undoubted^, will „kindle i„,«es, ta l»»l govenrme., structaral refonn. •mong .gionalis.. bu. ta our Judgmen. .here I. Ii„ta ta suggest .hat tai. will go bey^rd .he rhetoric of a few proposals and perhaps initial merger talks. Governors in at least four states (Indiana, New Jersey. Michigan, and Maine) have proposed that their legislature enact bills to eliminate non-viable units like to^stips and smaU general purpose units or to strengthen counties to become regional govemments. but these proposals have not been supported by legislators or local officials. Not since 1969 when the Indiana legislature consolidated Indianapolis and Marion County (with local leadership support) has there been a state-initiated merger. Nor have the states provide incentives for interlocal collaboration in their grant-in-a^'d applications or denied flnancial aid to small or non-viable junsdicttons. The movement to merge mostly small and mral school districts wiil perhaps continue-but little beyond that. The most recent locally-initiated efforts at regionalization were in 2008, and there have been no successM mergers smce. Instead, failure to demonstrate the economic and functional advantages of consoHdation to a public and professional staff skeptical that "bigger is better," resistance from council members reluctant to give up their seats, and opposition from upper and middle manage, who stand to lose their positions have eroded support for upsetting the status quo in many comm:miries. Added to these obstacles are tl,e political dynamics of racial divisiveness. local official parochialism, resistance by suburban voters, and citizen distrust of big govemment (Martin and Schiff 2011), Although in ti.e wake of the Graat Recession there will be calls for merger in order to achieve purported efficiency gains and other presumed advantages, we predict that few if any major local consolidations will occur. The emphasis wii, continue to be on incremental, pragmatic, and politically acceptable approaches to se.-vice deliveiy such as special districts, functional consolidations, and interlocal contracts.'' 4. Infrastructure Investment vs. Deferral The U.S. economy grew to its position of global leadership in part on the strength of massive investments in public infrastmcture. Ten years ago. Greenstone and Looney concluded: "Previous generations of Americans endowed today's economy with an extremely valuable infrastmcture network. However, underinvestment in maintenance and overcrowding and overuse tlueatens to reduce the value Americans get from these resources. Devoting more resources to mnin.enanc, implementing new technologies and practices, and introducing appropriate user fees has the potential to incase the social valueofexistingi„fVastructure"(GreenstoneandUK,„ey2001, ,5). Their call tor investment was ignored by many communities, and today capital infrastmcture is in desperate need of maintenance and development. Unfortunately these issues are likely to be continually deferred. Federal and state grants and support for local infrastructure face stiff opposition and are likely to get leaner. The American Recovery and Reinvestment Act provided more Ihnited infrastmcture funding than proponents sought. Findil^g ways to finance local projects and rebuild the nation's physical infrastructure will be increasingly challenging in view of severe state and federal spending consfraints. Limited resources and the need to deal with immediate problems tempt local govemments to stretch the current infrastructure to its breaking point and sometimes beyond. Ata time of economic iunnoil and high unemployment, bdlding public support for the mix of increased fees and taxes necessary to fund infrastructu.-e overhaul will be difficult. Thus, we predict that even the most forward thinking local govemments will address their infrastructure problems on a piecemeal basis and many local leaders will ignore aging infrastructure until crisis strikes. 5. Rebuilding Human Capital: Systemic vs. Piecemeal Local govemments face an enomous human capital challenge over the coming decades. On the one hand, a significant fraction of their workforce will be retiring and with that local govemments face the loss of managerial capacity and institutional knowledge. Simultaneously, new technology, an mcreasingly computer savvy citizenry, and the opportunity for long temi savings will pressure local govemments to make increased investments in technology and the human capital needed to make it work. A redesigned and more sophisticated work environment will require that talented professionals be given perhaps more autonomy and held to higher standards than ever before, Yet rather than forcing local govemments to systematically address their current and long-temi human capital needs through workforce development, succession planning, and other steps, the current economic downturn has more often led "reaction and reduction." with city and county personnel targeted, than to innovation and investment (Stenberg 2011). Indeed, some local leaders think the Foblem will take care of itself They remain optimistic about the fixture of local govemment human capital, noting an entering cadre of motivated and capable professionals. Pressures on local govemments to increase emphasis on developing their own professional staff and rebuilding managerial capacity will continue. This pressure, however, is counterbalanced by the need to address legacy pension and health care costs, and to develop a more sustainable plan for current and future employees. Health care and pension costs have been steadily escalating. While some local govemments cun-ently share these responsibilities with state health and retirement plans, many localities will experience serious fiscal sfram in meeting their obligations. The primary revenue tools available to local govemments - properiy and sales taxes - offer little flexibility. Therefore, unless dramatic changes are made to current benefit plans, these entitlements will command a growing portion of local budgets, constrain the ability of local govemments to cover increasing costs of other services, and reduce investments in innovative practices, The high cost of supporting previous generations of professional staff will likely mean lean resources fornew personnel. Thus, like investment in physical infrastructure, investment in human capital will likely be piecemeal and incremental. 6. Innovation vs. Status Quo Asserting that "a crisis is a ten-ible thing to waste," some optimists urge govemments to see the Great Recession as an historic opportunity for innovation (Svara 2010), Although examples of imiovation in times of crisis can be found, ample evidence suggests that wo,.emng economic conditions will cause local elected officials and public administrators to "hunker down" and focus on cutting and capping programs and personnel, not on taking risks on untested ideas or launching initiatives requiring new spending. Fonnidable challenges lie in the path of local innovators, including these; • Economists forecast that locaUties will not emerge from the recession until at least 2014, and many will be preoccupied witli making tough budget-balancing choices until then. • Local managerial capacity has been stretched and dimmished by furloughs, retirements, and layoffs. • The administrative "status quo" - characterized by rigid regtilations and procedures, hierarchical command-control systems, and anachronistic personnel, budgeting, and personnel processes - while intended to promote consistency, compliance, and confonnity could stifle innovation. • Rewards are not often provided (and sometimes there are penalties) for risk-takmg, creativity, and exercise of discretion, and a fear-of-failure mentality exists m many public bureaucracies. Indeed, while crisis conditions can .omedmes spur cre«ivi.y. innovadon is easier wha. growing and flexible ft,ndi„g is available. When budge., ar. constaataed, ta many commrmides local mnovaiicn ,abo,,,ories could b. Cosed unri, ecno^o condidons „„p,ov. (Thor^on and Svar. 2010, If promising new ideas are sparired by tae G.a. Recession, sonre of taem a. mos. IWy ta focus o„ new ways o,«.d.sstag employe, reriremen. and b.„efl,.,Otae™is,w. envision only pockels Of local inn„v.«.„ across ta. counny, chiefly but no. exclusively in communldes and regions d,a.have been affected less adversely by the economic downtam. 7. ''VnsiMUireDemtcneym Direct Democracy Todays tatares. to ciS^en engagemen. and modem, more expansive noiions of -goven.anc." are aligned ta push local govemmenh, in tae drredon of direc. democr^y. Engaged ci.izens-n,o„ intluenria, ta« ever before ta policy and service choices and more aodv. ta ser^ce co-produdon and ovalualion, no. on,y .taough surveys „,d focus g™„ps bu. a,so .hrough "orowdsouming.. soludon. „ problems via social neiworktag^offe, promising „ppor.u.,.ies for ciries and counlies of tae futare ("A Conversation with Goldsmith" 2011, 23), Ci.i.e. engagement on a much large, scale .han eve, before holds eu„™„us p,o„is. if ci.i.ens tmly Wish ta be regarded as owner. ,a.h., .han as cus.„me,s-.. p.„,cipa„. ta decision presses and pedraps even as partaers ta service producion and dellve^. Bu, wha. if tae no,iou .ha. ci.l... preii, .0 be owncs and parlicipan. rataer .han c„..om,rs i. incorrec., a. leas, for .i^bl. poriions of .he chizenry, Wl„. If a |.,g. ^ ^, several provide™ of ba.ic services for daily life-„„ch like tae cable .elevislon company, the telephone p^vider. »d tae local groc«y ..„„, Wha. if .hey do no. wan, ta be engaged? What if .hey simply wan. ta be served and otaerwise l.fl „on.7 Wha. if taey ,v« ta be taealed a. a,s.omers and prefer taa, Ihelr indirect engagemer,. be .hrough an e,ec,ed goveming body? If tai. is Ihe case, ,he principles of represe„..„ve democr«y arrd .he ro,. of ,h. e,ec.ed govenring body deserve ta be protaced .galas, inroads ,ha, purpori ta be direc. democ„cy bu. .c.ua„y represen, somelhing much naiTower. Engagtag oitas as senricc-delivery voluntaers i. especially amaetive ta cries and counde, "^H«g ta make ends meet nnanoially. James Svara „ri,e., "Many le^al goven^nenrs are exploring how to better involve citizens in the dehvery of public services. A shift from a government-centered model to co-production with citizens is anticipated. Neighborhoods will shift from a dependent to an mterdependent state. The approaches include increasing opportunities for volunteerism; encouraging neighborhoods to raise funds to support nearby parks and other amenities; and generally includmg residents in decision-makmg roles in areas that affect their quality of life" (Svara 2011, 81). The positives of these arrangements are abundant and obvious; the potential negatives are more subtle. If local govemments strip away pubHc fading and count on co-production and neiglaborhood funding. will only affluent neighborhoods and those having civic-minded residents with discretionary time for volunteerism have nice parks while others have much less? We anticipate that concerns about equity, representativeness, and stalemate will be heightened as communities experiment with new forms of dh-ect democracy. We anticipate that movement in die direction of direct democracy will continue but will be held in check to a degree by the recognition that qualities embedded in representative democmcy have distinctive value. too. 8. Self-Determination vs. State Control Over the past several decades there has been growing tension in the relationship between local and state authorities. City and county officials have sought support for constitutional and statutory changes that would give their units greater discretion over tiieir form of goveminent. types of services provided, personnel policies, and fmances. At the same time, they have called on governors and legislators to increase financial assistance to locahties, exercise restraint on unfunded mandates, and assume greater financial and administrative responsibihty for auctions like courts, social welfare, niental health, coirections, elementary and secondary education, and transportation. The state's responses have varied widely In recent years, greater financial and functional responsibilities have been transferred from the federal govem^nent to the states and from states to local govemments. However, these shifts have come with adverse ramifications for local govemments. as Keamy et al. (2011) suggest: "The imphcation is that financial devolution has two faces: one shows that local govemmeivts are receiving enhanced authority, power, and discretion over finances; the other shows that states are increasingly withdrawmg state-shared taxes and fees, 'borrowing' from state- funded local government accounts, and imposingnew financial .^uirements on local govemments. The inequitable exchange is akin to a second-order version of the classic 'shift and shaft' federalism usually atttibuted ta .he federal govemmen.- (Keamy e. al. 2011). The expanded scale of local gov^nen. operations aad tae need for commensurata r« have cr«.d grea... .».ion bebveeu suburts and cantaa, cihes. Increased operadng r..pon.ibili.i.. and financial burden, have been le.. ta«ening ta .ubutas taan ta cenW oides. Suburts often face f.w.r of tae social problems taa, ^ve th. need fo, many program, and .end ta he more ..Buent They a,so have a highe, „tai, acdviri, and have fe«, staains placed on ta.r infrasUuchue and o,her services ,ha„ taeir cenn,, ciry co.„ta,^„s. While cental ci.i. h.ve higher commcroi. proper^ «x bases. ,hes. properties rcuire high level, of service, p.r.ic„larly ta,„.po«i„ ^„f„.^,^,, ,„ .fl«.ive ..ata nidi,b:ib,rdo„ policies taese dlsparides and ine,ui.i« are likely ta grow. While the second-order devolution trend condnues, the respecive roles of stales and loc.li.ies have been blurred rataer than clarified. Cides »d couniies oflen find .hemselves taapped m a cyCe ta which sta,e reia.i„„.hips a. flnanclally and tancion.ily .uppo„i,e i„ good rimes and leuse ta bad .mes. in ,he ,o«g run. a so«,„g ou. of responsibihfa between staie and ,oca, govemmen. could be beneficia, ta .oh,.ving greatar efficiency and e,ui.y, . well a. p™,idi„g ..a™... „f in tarius of firncional perfonnanoe, bu. ,h..e ..Tom wil, likely b. tao.me.tal, „o. s,...„.ac. 9. Service Prcvimn vs. Increasing^ Vne,ual C«m„mUes Income dispariry in .he Unitad States ha. r^ched levels unseen since the Gilded Ag. of .he ,a.e ,9" and 20* cntaries (Sae. and PInkney. 2004), This, .00, w,ll pose a challenge fo, local governments. More diverse communldes wil, face g„ater chahenges In achieving a ,.ix of services taa. have ,he capaciiy ta pay for .hem. However, less ,m„ reside.., while tae, rnigh. prefer such services, wil. be less able ta afford Local governments will have ta walk a, Incasingly n„e ,me i. determining tae correct service mix, TIrese strain, will only be exacerbated by co„c« over redistabudon. Mo. affluen. .esiden. will b. in^astagly subsidizing services fo, lower income resldenis even under tae fla. ..x sh^cta,., tha, tad g„_ and retail spending by high income ™ldenta wlil be used ta comperi.,.. f., lower .pending of l.s .m^, resldeata. We do no. expect .ha. Ihls will go uanoliced by ta™. asked ta pay m^e. We predta, incased pressure f,.„ tae. resident ta focus ex.ra or highe, r^liiy services on communities within a locahty ti,at ate paymg more. This conflicts dhectly widi principles of equality and will challenge the ability of local govemment managers to maintain equal services for aU. This tension will also exist between neighboring communities. Efforts towards collaboration will be more difficult in an enviromnent where high income residents increasingly see themselves as subsidizing those of moderate means. Even in cases where efficiency gains could be achieved, collaboration will be opposed by those who fear it will result in redistribution of resources. Svara (2011) predicts that communities will involve "a partiiership between govemment. community organizations and citizens" in the face of dwindling resources. While on the surface this will solve some of the strains facing local govemment, it does so only by exacerbatimig inequalities. Communities with greater capacity to fomi and fund their own partnerships will receive greater services, while communities that lack the capacity will go without This puts in jeopardy the public nafiure of public services. We predict both collaboration and partnership will be difiicult to reconcile with increased income inequality and the maintenance of equal service provision for all. Conclusion Since the Progressive Era, several notable changes have taken place in the world of local govemment that over time have influenced the landscape generally. Some of these-such as the introduction and widespread adoption of the merit system, introduction of new fomis of govemment (i,e. commission and council-manager forms), expansion of modem budgeting aad management techniques, and growth in staff professionahsm-viewed over a span of years are dramatic changes. But most changes in local govemment are dramatic to only a few adopting local govemments at a time and evolutionary to the body as a whole. As indicated in the preceding discussions of lessons from past periods of economic stress. local govemments have demonstrated a remarkable ability to bounce back in the wake of crises without atndamentally altering then-jurisdictional boundaries, governing and organizational structures, core services, or personnel. While there has been greater collaboration atnong local govemments and between cities and counties and non-governmental organizations, and changes have occurred in the mode of deliveo. of some services, most of this activity has involved a limited range of Unctions and « has no. pennanendy alta,ed tae si., shape, or tanda.en.al m„.gem..t ..r„ch„. of local uni. Th. new no.™, is tae la.es, bu. no, tae 1.. .eriou. economic dov^tam dra. local that Cdes and cou.de. .^luk ta. untainkab,.- and make tandamental changes ta d... revenues -ice., shuctares. andpolitlcs. .e, taere is little evidonc. drat ta.. foreoasis hav. proven ac„. or .ha. ta. r.omm.„ded ..ep. have be. taken by mos. local govemm«. Coptag and adapdve -ta,.s, rataer ta« ta™.om,ado„a, approaches, have typically cba„ctari..d the response of local l-ers ,T„or.son and Svara 20,1,. And pnbhc optalon polls by ta. Cup Organi.don show taat *c «i.y of tad govorir^en, , handle taeir problem., .ducing p^nr. for dra^ric chmges (Gallup 2011). we exp« taa. .his p,.«m will condnue a. greater challenges conta. local officials Uoming cutaaoks ta stata ,l„a.cl.l aid and dlscdona. spending will dr.np. ci, and conn, budgeta and programs. The p„fe,e„e. of e,e«ed olHcia. ta cu. .pending In..... While tae,e will be pe,m.nen. changes I. the shape, sl„. and services of tacal gove™„,e., In -e communldes, on balance .he resilience of tae sysrem will preval, l„ mos. chies and coundes Ung.s.a„ding tartans ta local gover^en. - Including „p,.ser,ta.ive democracy, weulta lne,uldes regionalism, infra..,.., _ „„, ^^^^^^ ^ ^^^^^ ^^^^^^^^ ^^^^ ^'^^ evolutionary adaptations, Notes 2. Cat s.^' h~ v,:r''T''.?'=°""'' -^d,he,rnu„^,slJr-=S-^^ Wita i,s appota. Chief .x«ivl durin'g Z^'r^l^^^ '?^Z*=ytThe°Ul The authors gratefully acknowledge helpful suggestions on this paper by Catawba Countv NC ro.m^ Tom .Lundy ai^d Durham, NC City Manager Tom Bonfield. ^' ""^ References "A Conversation with Stephen Goldsmith, Deputy Mayor for Operations. City of New York " ra. « • Govemr,.nt (IBM Center for the Business of Government. Spring/Sum^^er 20n).^r 19-23. Brecher. Charies and Raymond D. Horton, "Retrenchment and Recovery American Citre. .nH tT, M v , Expenence." A,.//c Re.ie.. Vol. 45, No. 2 (March/AprT 19^ ^7-274 " Brock. Ed, "Frugality is the Now Nomial," American City & County, November 1. 2009. ar>line posting. Cauellos. Peter, "Chelsea forgives, Forges Ahead." Boston Globe, December 11.1997. Cyr. Ed. "Thoughts on the Chelsea receivership." Govemment Finance Review 9.4 (1993). .Figone. Debra. Kim Walesh. Mark Danaj. and Frank Benest "MJhot'^ fi,. u . r T , Mlance ^ Pap„ , p,. J; . ^J^^^^^. "^t^^.H^Z^'mT ta.2,Z2«.""' » Co„„.y Megheuy Oold.™lta. s.epheo, .The Red Ink Tsu„™i: wh, Old Ideas C.„., .h. o.v.m„en, Pe,„..ci,is Eccnomrc Pol.cic. f„ Ih. 21 Centtiy. I.nua,, ,0, 2010. pMing Martin, Lawrence L. and Jeannie Hock Srhiff "prh, r'^. \, o ,.. . and Local W„ ^avriAu^t 'mij; .J^^j^^^J.^^^^-''^^^^-' Versus Perfom,a„oe," Slate Miller, Girard. •'Navigating the New Normal Economy. ^'Go.ernin,, August 1,. 201,. online posting. 2011). ' DC: infcn«.(,onal City/County Management Association. Miller, Thomas L and Shannon E Havrien "Th» w-w r» -J ^ . annon t. Hayden, The Hurt Dmdend: Residents' Appreciation for Local Govemment Services in Toueh TitTiM" ».f • • , City/County MaLgemTiAsllS:^^ ^« (Washington. D.C: Intemationai Sji^ t^S:^^^ ^^^^^^ «-or An Empirical Analysis of the (2) (October 1990): 443-457. Metropohtan Areas m the U.S.." Southe,-n Economic Journal, 57 "Notes: Missed opporfunify; Urban fiscal cri,e^ r>,.Ar • , 1597) 110 (3): 733-750. '''''''' ^^^-^aanua,y. ^^^Z^tt^t'^ ^^'"^ (Reading, MA: Addison-Wes.ey Publishing in state and Loca, (August 2010) 42(2): 176-187, ^''"''"^ *° State and Local Government Review. "State Oversight Panel Disbands and Leaves Vonkers on Its Own " Me. Yor, T r , g ^ J vjwji, i^ien ror/i Times, My 10 1995 P'^Zn:s7kZ!::::rz:ZuZ^^^^^^ ^^-^ s.-k"dfocki.« M.nag.,„e„, A„oc|.„„, 2„, „ 2"". V.I, !8 (Wa.hing.o., D,C,: IM.m.rion.l Ci™Ln.y ta.he t,.!,., s,.,..cf A..,,.,,.. Thoreson. Karen and James H. Svara "HOWIOP^I r- C.ly/Cou„.y M.n.g.„„, A.s„i.a„.. '« W-^Hing.on, D,C,: IMcaBc^r W.in,au,«.ro,d, uta.u Pohey .a, „. ;0G22o51 The Mew PC Era: The Personal C-!cud Published: 6 January 2012 Analyst(s): Stephen Kieynfians As the reign of the personal computer as the sole corporate access device comes to a close, a new era is emerging The personal cloud era provides users with a new level of flexibility with the devices fl^T^ '''' ^""^^ '^^«^^9'"9 ^t^«"9ths of each device This flexibility will ultimately enable new levels of user satisfaction and productivity. However, it will require enterprises to fundamentally rethink how they deliver applications and services to users. Key Findings Major trends in client computing have shifted the market away from a focus on personal computers to a broader device perspective that includes smartphones, tablets and other consumer devices. Emerging cloud services will become the glue that connects the web of devices users choose to access during the different aspects of their daily life. The personal cloud era will mark a power shift away from devices toward services. Applications and devices must become operationally obvious in that users will respect simplicity and insist on experiences that require no training. Any experience with a learning curve will be for experts only and will not achieve broad acceptance Recommendations Empower your users: Establish a "bring your own devices" program, including policies and support processes that enable personal cloud usage, yet ensure corporate security standards. Embrace a self-serve approach to outfitting users. Move toward device-neutral development processes, and stop building for specific physical Q6VIC6Si Build and develop corporate cloud services internally or through secure public cloud services to improve accessibility to corporate resources. Table ot Contents r Strategic Planning Assumption 2 Analysis 2 The Current State of the Market - The Big Refresh , 3 The Driving Forces 3 IVIegatrend No. 1: Consumerization — You Ain't Seen Nothing Yet 3 Megatrend No. 2; Virtualization — Changing How the Game Is Played 4 Megatrend No, 3: "App-ification" — From Applications to Apps 5 Megatrend No. 4: The Ever-Available Self-Service Cloud 6 Megatrend No. 5: The Mobility Shift — Wherever and Whenever You Want 6 Welcome to the Personal Cloud Era 7 Ramifications on Devices and Hardware 8 Recommendations for Enterprises 9 Recommended Reading 10 C Sti'ategic Pianning Assumption By 2014, the personal cloud will replace the personal computer as the center of users' digital lives. Analysis A powerful set of forces are combining to drive the close of one era in personal computing and begin the next. Many have labeled this the post-PC era. However, it should really be termed the era of the personal cloud. The personal cloud will gradually replace the personal computer as the location where individuals keep their personal content, access their services and personal preferences, and center their digital lives. It will be the glue that connects the web of devices they choose to use during the different aspects of their daily life. The personal cloud will entail the unique collection of services, Web destinations, and connectivity that will become the home of their computing and communication activities. Users will see it as a portable, always (usually) available place where they go for all their digital needs. The corporate PC era began slowly. While personal computers of various sorts had existed for several years, things really only kicked off in 1981 when IBM released the first IBM PC. While a few intrepid folks brought the new device to work (mostly to run what seemed like a magical new tool to help with budgeting — Lotus 123), for the most part, companies were slow to adopt the new devices. However, as LANs began to emerge in the late 1980s and terminal emulation software bridged the gap between these new devices and their terminal predecessors, companies shifted purchasing and work styles to embrace the new devices. By the time Windows 95 and Windows 98 emerged, the PC was well established as a tool for many workers, and we were deep into the PC era. We see similar patterns emerging in today's market, pointing us toward the sea change that is occurring. Page 2 of 11 Gartna-.lnc. IG00226511 Gartner The Current State of the Market - The Big Refresh The past two years have been a whirlwind in the client computing space. An unprecedented upgrade cycle for traditional business PCs has resumed from the unique a^nmenTofeve^^^^^ across the industry. The recession, coupled with the extended life of Windows XP anXSbn of Windows Vista in the corporate market, has created tremendous pressure on compS with aging fleets and software. When coupled with the impending end of life for Zdows XP companies are responding with the biggest co^orate PC upgrade cycle eve^ Zevrmany are llrSZ'^llT"' T " ^^'9 °^ ^"d- ^o, what w i our ' environment look like in five years? Further driving these questions has been a surprising new entrant: the media tablet. Everybody recognizes that something basic has changed in the market, but exactly what and how!t win ly out remain topics for significant discussion. The media tablet and the increasing pen^asivenls o^ thTp?s^??e^T^^^^^^ the post PC era. However, this is a poor moniker, ft isn't about being "after" the PC but rather about a new style of personal computing that frees individuals to use computing in fundamentallv new ways to improve multiple aspects of their work and personal lives. UsL a^ dZSig me mr!J«.! f. ""^f applications from multiple devices with multiple fomi factors and ownership o^nnlT .""y Applications and data are king, and device selection is now a maS of personal choice, becoming increasingly disposable unlike the traditional-lived, corporate-controlled assets o the past. We are seeing the birth of the era of the personal cloud. To unSnd whaf hfs the'change ' """""" *° ''^ "^^^^-^ to look at the f'ces SLIng The Driving Forces ITIH'K J'f .2 ^"""^'"'""^ *° ""'^^^^ "^^ megatrends have roots that extend back through the past decade but are aligning in a new way. Megatrend No. 1; Consumerization - You Ain't Seen Nothing Yet Sfrr'.f^f °f 'T for the better part of a decade, and we've seen the 3?° f ^'^'''^"^'r''^^^ what we've seen so far have been simply precursors to the major wave that is starting to take hold across all aspects of information technology. Several key factors are coming together: Users are more technologically savvy and have very different expectations of technology. Users rnay not understand the details of how technology works, but they certainly understand what lecnnoiogy can do. Internet and social media have empowered and emboldened users. Today, consumers provide insten feedback on what they like to anyone who happens to be llstening^eyrionger^^^^^ on just a small group of specialist interniediaries to tell them what and how things are but rather can chose their own unique set of information channels. Gartner, Inc. IG00226511 Pages Of 11 The rise of powerful, affordable mobile devices changes the equation for users. They now have the technology in their hands - devices that are truly portable and powerful enough to do real work. However, to appeal to the consumerist masses and get the kind of broad adoption they need, vendors have been forced to simplify how these devices work. Users have become innovators. New devices and applications have become the basic building blocks of a new wave of innovation. Users are familiar with discovering a new gadget and turning it into a tool - sometimes playful, sometimes useful. Corporate data is making its way onto devices and into applications dictated by users, and there may be no way to stop it. Consumerization is leading to a whole new wave of unexpected consequences. The democratization of technology, as users of all types and status within organizations can now have similar technology available to them. Organizations that today rely on high-end concierge services for senior executives are being forced to expand those services to all users and. therefore, must rethink how to support this managed diversity. Not all aspects of consumerization are positive when viewed through a corporate lens. Users aren't very good at dealing with the details of keeping technology working and secure. They are easily fnjstrated when something breaks or is difficult to use, and they don't like when something they want to use doesn't live up to their expectations. Consumers are also easily swayed by style and fads, rather than function, and this can lead to disappointment. What's hot today may be forgotten tomorrow. While this may be fine for individuals, this could prove devastatingly expensive for enterprises. Furthermore, it reinforces a culture in which manufacturers are more interested in selling the next device than supporting the last one, resulting in a continual churn of features and capabilities. This makes it tough for IT planners to build around specific devices with any level of confidence. Further, supporting and optimizing around the chum adds cost and complexity to nearly every IT function. Megatrend No. 2; Virtualization - Changing How the Game Is Piayed Virtualization is nothing new. Indeed, virtualization techniques have been fundamental to computing for well over five decades, since virtual memory was first introduced. The basic goals have always been to reduce reliance on the physical by emulating a resource - creating a virtual instantiation of the physical resource. This was initially done to share scarce resources like memory or disk space, but overtime it has also been used for isolation, reliability, utilization, and flexibility. Over the past' five years, virtualization has radically expanded in new directions, virtualizing entire systems, through to operating system interfaces. This has improved flexibility and increased the options for how IT organizations can implement client environments. Using different forms of virtualization, applications are somewhat freed from the peculiarities of individual devices, operating systems, or even processor architectures. This raises the possibility that, in the future, a large portion of the processing power in a system will be devoted to implementing virtualization layers for the primary reason of breaking physical ties, thus enhancing flexibility and removing management chokepoints. Increased computing power can also be applied to abstracting and refactoring user experiences across devices. Virtualization technologies will radically challenge many long-standing management and operational practices. Page4of 11 Gartner, Inc. | G00226511 .h.s expanding .heir utility an. InaeaL, .hat^^oTprelTl^eS^pS Megatrerid No, 3: "App-ification" From Applications to Apps Changing packaging - Bite-sized, narrowly focused chunks rather than large all- "^X^ZZ::lZrT ^^^^ t increasingly small, cost effective targeted applets will cover many users' needs and provide more flexibility. t^lnr? f"<^« "^odel - Users have come to expect software at much lower prices even In!!!.''^"^.^ "^'^ ^ P'*'^'^"^ '"'P^^t °" applications are written and manaaed in diSllLn?Z!f H ^^'^f °^ incompatibility between tools as various users select different apps to do similar functions and discover they can't effectivelv ^h^m Hatr nf !! Gartner, Inc. | G00226511 Page 5 of 11 c wegaxo-'io No. -i; The hver-Avaiiable Seit-Service Cioiici The Internet and the Web have certainly changed daily life. Being able to access content, information and even application functionality from a common client has impacted individual companies, created and crushed markets, and even impacted global politics. The advent of the cloud for servicing individual users opens a whole new level of opportunity. Every user can now have a scalable and near-infinite set of resources available for whatever they need to do. The impacts for IT infrastructures are stunning, but when this is applied to the individual, there are some specific benefits that emerge. Users' digital activities are far more self-directed than ever before. Users demand to make their own choices about applications, services and content, selecting from a near-limitless collection on the Intemet. TTiis encourages a culture of self-sen/ice that users expect in all aspects of their digital experience. Users can now store their virtual work space or digital personality online. This enables the user to access his or her environment from anywhere and any device. Compute tasks can be offloaded, when necessary, to the cloud for instantly available personal "supercomputing" tasks involving either big data or big compute. Since most users consume far more than they create, the cloud provides a strong storage mechanism for virtually all data, even though upload speeds are problematic at the moment. Cloud- based data stores, such as Dropbox, iCIoud or SkyDrive, enable users to more easily share large files with others. It is likely that future versions of Windows will enable users to log on to any suitable Windows workstation with a Live ID and get their desktop environment. The flaw in this scheme is the availability of applications, but with the shift to just-in-time application delivery techniques, even that problem disappears. As Microsoft extends Windows to a broader range of devices, it is likely that a single ID and set of preferences (if not the entire desktop environment) will be accessible from everything from a Windows smartphone to a kiosk computer in an Intemet cafe. We are also seeing the seeds of similar models being planted in products from Apple and Google, both of whom will use this to challenge Microsoft's dominance. Megatrend No. 5: The Mobility Shift - Wherever and Whenever You Want The march of computing and communications over time has been govemed by a series of so-called laws. Moore's Law and Metcalfe's Law have led to the mobile environment we have today. One important result has been the race to ever smaller, more portable and power-efficient electronic devices. What filled a desktop a decade ago now fits in your pocket — only with much more capability. This plays on another truism — people like to move around. Users don't want technology dictating where and when they can access information, talk to someone or play a game. They want it whenever and wherever they happen to be. ^: The reality is that many of the traditional form factors for computing simply do not lend themselves %' to these kinds of computing needs. In the past, we made excuses about tradeoffs in processing Page 6 of 11 Gartner, inc.! Ga)226511 provided by the mobile devices. ^ ^'^^ convenience and flexibility practical. Tou 'n: a^dTZra b^^LT «'<P«*noes te making mobility Si^:r r:^r;s^ trrc^ ^ Welcome to the Personal Cloud Era Gartner. Inc. iG00226511 Page? of 11 of Cloud serJ^S^^ T °''''' '^'"^ '^"^^ ^^e strict definition of cloud sen/ices, but rather encompasses all the online services that users see. To consumers there is effectively no difference between cloud, Web and Internet - it's all the same. As noted' earlier, the personal cloud will become the center of the user's digital experience - the one place fhl r ^T^°' ''^^'"'^'^ °^ "^^^^ ""^''^^ °' h^l^P^"^ ^° have handy. It marks a distinct shift from the device-centric viewpoint of previous computing eras, to a sen/ice-centric approach. This new personal cloud supports the characteristics demanded by users, such as: Being highly mobile. Being always available, Being user directed - the user is in control of what he or she uses, how he or she uses it, and what he or she shares with others. Embracing multiple experiences and device classes - the device becomes secondary to the The user can switch between devices based on situation and need. No device can be considered essential all the time. Providing rich interactions and content. Providing a seamless shift between computing and communicating. Supporting both private and public clouds, thus providing resources when a user needs it not when IT can get around to delivering it. The personal cloud will be a federated blending of' different sen/ices and cloud offerings, presented to the user as a single environment. Providing contextual awareness to deliver the services and content to users that are appropriate to their situation or immediate needs, rather than overwhelming them. Providing operationally obvious computing - no training required: Well-designed, straightfonward UXs are respected and craved by users. Simple, task-focused, bite-sized applets. The learning curve is dead. If it takes training, it will be relegated to the specialists and not be broadly adopted. Ramifications on Devices and Hardware The ramifications for hardware are similarly stunning: Limited local staage for apps or data - The local store will mostly be used for caching content that IS pnmanly held elsewhere and synched to the local device. This shift won't happen right away, but we are already seeing enterprises limiting the size of local storage on PCs. Increased reliance on synchronization services as a way to ensure a consistent collection of resources, regardless of how or where the user is accessing his or her data. Page 8 of 11 Gartner, Inc. 1300225511 Focus on displays - This includes richer, higher pixel count displays, coupled with the abilitv to l.nk to external displays. Users will demand the ability to take content from Seirtocal d^^^^^^^ and project it on to any suitable, available screen. ""^ tlZTS^^^^^' °" components that bridge the gap between the physical and the diqital fnr nn J T ^""^ ^^^^^"^^ ^^^^^^ion, microphones foraudio senso^f iTuser 'oucsoreens and other devices to capture gestures aTd "eract *° ~ -"<^- ^-^'^^ and appea. to They are thinner, lighter, cheaper, more reliable and interchangeable. As users carry the devices w,«i them continually light weight and extreme portability will become more™ Furthermore users will want to be able to swap between multiple devices based on their situations, thus necessitating lower cost and higher reliability. Recommendations for Enterprises Faced wi^ these major changes, enterprises must take the following steps to ensure thev are not caught off-guard as user expectations and demands shift: ^ Get ahead of the cun/e on "bring your own. devices" (BYODs) - Users will increasinqlv be usino devices not provided by the enterprise to assist them in their daily work. C^hhg up to and Ultimately, gett^g ahead of the users in this area is critical IT is to provide anZde s^ tn see"^'lZ;.fv°^^^^ ''''''''' ^ P^°9ram. including policies and pToce ses (see Gartner'sViewon'Bnng Your Own'in Client Computing"). Stop building for physical environments - Select techniques and designs that will support multiple operating environments. This includes developing expertise with desktop virtualization ^^T"' K"^* "T'' *° e"^^- that user'focusT thp^^riT. °^ '^a^^Oed diversity (see "Use Managed Diversity to Support the Growing Variety of Endpoint Devices"). ^ Look for ways to abstract and secure applications and data, not devices (see "How Will Users Access the PC Apps They Need on Their Alternative Devices?"). d^tTn^T/r";?"^"® .'""''•'•^ ~ ^^^'^ ^ab'« "s^^s to "^ake their own decisions about technology in order to gain a higher level of self-sufficiency without the need for Whi^thp?7 by IT personnel. Where it isn't possible, work to'make i^s^if Wh le the IT organization will always play a role in directing users, providing them guidance and ^d^rs^^^^^^ Move corporate resources to a secure cloud - A move to a secure corporate cloud (either internally managed or leveraging public cloud sen^ices) makes applic^ns and ^ici m^ a frl^f^^^^^^^ r'"'"'°" "^""'^^ IcK^aLs and dellfceTThTdoesn't mean a free-for-all approach to corporate data or services. Restrictions will always be Gartner, Inc. | G00226511 Page 9 of 11 necessary for certain types of sensitive data. For example, access to customer credit card or patient data must be tightly controlled. Adopt browser-based applications with local assistance - the "app" model. While not every app lends itself to decomposition into smaller chunks or delivery through the browser, companies need to get away from device-dependent, locally-installed applications. At the same time, companies should look for new delivery techniques to ease the burden of administration (for example, moving away from application installation by using App-V or other techniques to eliminate the need to store or manage devices). Recommended Reading Some documents may not be available as part of your cunent Gartner subsciiption. "How Will Users Access the PC Apps They Need on Their Altemative Devices?" "Use Managed Diversity to Support the Growing Variety of Endpoint Devices" "Gartner's View on 'Bring Your Own' in Client Computing" "Windows Applications Will Be Critical Through the Planning Horizon, but Lose Majority in 2012" "Client-Cloud Applications: The Rebirth of Client/Server Architecture" "iPad and Beyond: The Media Tablet in Business" "Managing the Next Generation of Client Computing" Page 10 of 11 Gartner. Inc. 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Although GLer r:^al7,%lV^- ^^^^^ssed provide legal aOvice or slices and its research sho.=rno be ™^ nr °' '^^^"^ '«9^' ^a^tner does no' sharehoiders n.ay include fin.s and funds that H vs^^^^t^^^j:^' ^-f ""'^' ^"^'^ ^^^P^^^' '^^ Directors may include senior managers of these f.rr;s orfSndr'S r^l r ^"""'^ ^^^'"^^^'^ ^^^^ ^1 without input or infiuence from these firms, funds oTte r rranaoers For^^^^ f independently by its research oroan.zaton .^s^rch. soe -Guiding P^ncipies on .ncepend^ a °" '"^^^^"^^"^ and ..tegntyo' Gartner Gartner, Inc. i G00226511 Page 11 of 11