Memorandum Mayor Jim Pearman TO:
Rich Conrad, City Manager
FROM:
Mayor Jim Pearman
DATE:
November 30, 2011
RE:
2011 City Manager’s Performance Review
In preparation for your 2009-2011 performance appraisal, I have reviewed the 2009-2011 work plans as agreed upon at each respective year’s Planning Session (1st quarter) and your analysis of the outcomes for the Objectives, Projects, and Goals as listed in each respective year. I also have conducted personal interviews with the department heads and the City Council. Your review will focus on the health of the City (internally and externally), work performed during each year, and your working relationship with the City Council. On the advice of legal counsel, and due to the struggling economy with no option of a potential performance pay increase or bonus in 2009 & 2010, there were no formal performance reviews prepared by the City Council during this time; however, the entire Council felt it was time to prepare a formal review of your performance for the last three years even if there is no fiscal impact associated with it. Health of the City of Mercer Island Internally: The City of Mercer Island is in solid financial shape navigating through one of the worst recessions since the Great Depression. The 2011-2012 Biennial Budget was a real milestone with the first reduction in the City’s budget since the City was incorporated over 50 years ago. With your leadership and supported by your management team the City was able to cut 9% from the budget without layoffs and significant reductions in service levels. Hard decisions were made and as a direct result our City has weathered the recession in much better shape than virtually any city within the region. With your proactive approach and reaction to the slowing economy, the City is financially stable and has an AA1 Moody’s rating (the highest in Washington State, along with Seattle and Bellevue). The City of Mercer Island performed exceedingly well in the 2010 Citizen satisfaction survey. There were no areas of particular concern. Your leadership of the management team through a very difficult budget cycle was steady and methodical. One item of particular note was the elimination of City funding for the Summer Celebration fireworks. Instead of ending the fireworks you worked with the community to find ways to privately fund the 2011 celebration. It was a real success for the community. The Management Team is very supportive of you and the direction of the City. They all voiced recognition of the struggling economy, and the need to do more with less. Under your
leadership the departments worked together to address the required budget reductions to meet the approved budget. This was no small task. Unlike many other cities faced with similar reductions, our departments worked together and avoided inter-departmental conflicts. They credit you for fostering this collaborative effort. One significant action on your part was obtaining voluntary wage reductions from the union and non-union employees in 2010-2011. Externally: The City of Mercer Island continues to be the envy of the region with the delivery of our services and the quality of life enjoyed on the Island. This can be measured in the value of our real estate, and the demand on our parks and recreational facilities (e.g. Mercer Island Community Center). One area which has been a real struggle for the Island has been the Lindell litigation. The lawsuit, the way it was portrayed in the press, and the inability of the City to publically discuss and respond to the allegations and misinformation, hurt the image of the City both on and off the Island. It was unfortunate the City never had its day in court; however, we must move on. Your performance will continue to be measured in part by your ability to lead the City forward and restore its goodwill. It needs to be recognized this was a real tragedy for the employees negatively impacted by Lindell’s actions, the City Council, and our citizens. Even though there were no findings regarding the allegations in her complaint (with the exception of Lindell’s destruction of evidence), the public perception is that the entire situation could have been managed better. You are the CEO of the City and therefore you must shoulder some of this criticism. Work Performed The City was very active in 2009-2011 even with a reduction in the actual budget. Due to the complexity of a lean budget and a demand for exceptional city services by our citizens, the actual work might well have increased over past years: Doing more with less. The actual number of agenda bills planned and completed in their respective year is as follows (the actual spreadsheets are attached): Year 2009 2010 2011
Planned 98 99 87
Completed 98 87 72 (YTD)
Significant projects completed during this review period were: • Sewer lake line implementation •
Finalization of the PEAK Partnership
•
Bike Pedestrian Plan
•
Updated Shoreline Master Program
•
Emergency Water Supply (Well Project)
•
Pool Funding strategy
•
Recycling Center-Community Process
•
Island Crest/Merrimount Implementation
•
Southend ball field development
•
Traffic lights in the Central Business District
•
Island Crest Way pedestrian crossing lights
The overall feedback of our staff’s performance on these projects was very positive. Most significant was the work on the sewer lake line project. The project came in nearly $2 million under budget and has won numerous regional and statewide awards. Working Relationship with the City Council The overall relationship with the City Council has been positive; however, the Lindell lawsuit has had an impact. The majority of the City Council is supportive of your leadership and supports your future management of the City. The entire City Council is upset with the way the Lindell lawsuit was concluded and how it was portrayed to the Island and the region. As mentioned before, you are the CEO and you must take ownership of this situation and how it developed and ultimately ended. The Council is now future focused and is looking to you to get the City refocused on the work ahead. The majority of the Council finds you approachable and quick to respond to information requests. You have a reputation of being honest and straight forward when dealing with the Council. The one area where there seems to be unanimous agreement is the desire for you to refrain from constantly asking if you have the confidence and support of the Council. The City’s staff, the citizens, and the Council need a strong and confident leader to guide us through the uncertainties of the future economies. The other area of concern is the hiring practices of the City. The Council realizes that no city or business has a perfect record in hiring employees that have the skill set and personality to fit into an organization. There is concern that in the past you have placed your faith in employees who have betrayed that faith and caused significant problems within the City and community. In the future, more care needs to be placed in refining hiring practices and working with your staff to avoid a recurrence of these situations. Summary The past three years have been a combination of outstanding staff work as well as real strife within the City due to the Lindell lawsuit. The majority of the Council has not lost faith in your ability to lead the City, and wish you to continue as the City Manager. It is also clear the majority of the Council has put their faith in you to get the City refocused on the work ahead, and restore confidence in City Hall.