Fred MeurerCity Manager

Monterey, CA/BAHmeurer@ci.monterey.ca.us

(831) 646-3760

.

Military – Community Collaboration Areas and Approaches forEfficiency

Situation Assessment within the DoD

The Defense Operating Environment is

Changing Defense budgets are shrinking Weapon systems are aging Personnel management costs

are increasing Some career fields are being

stressed and civilian/military force levels are changing

Congressional oversight is increasing

SECDEF Efficiency Initiatives are taking shape

Continued “risk” in infrastructure

The Operating Environment Continues to Shape DoD

Strategies to Gain Efficiencies Centralization (e.g., organizational,

processes, authorities) Consolidation (e.g., BRAC, Joint

Bases, merging career fields) Leveraging best practices from

private sector, academia, consultants, other Services, agencies, & internal AF change management efforts

Revised Strategic Plans & “Transformational Initiatives”

Search for IT efficiencies Incorporation of asset management

principles into business processes Expanding Public Private

Partnerships

FAR - competitive procurements, sole source arrangements Sec 2667 - Lease Authority

“... the Secretary is authorized to accept improvements, maintenance, protection, repair or restoration of the property by the lessee in payment of all or part of the consideration for the lease.” 10USC 2667 (b)(5)

Special Legislation Sec 816 National Defense Authorization Act for FY95

Demonstration Project on purchase of fire, security, police, public works, and utility services from local government agencies - 8/12/94

Senate Colloquy - Senator Nunn and Senator Boxer clarify intent of Sec. 816 to waive requirement for A76 Congressional Record - Senate - 9/5/95

Commander Initiative & Patience Collaborating Community Table Top Exercises to identify collaboration areas and

mechanisms

Authorities and Tools

Situation Assessment within Communities

The Local Community Operating Environment is Changing

Community budgets are shrinking Demand for jobs is increasing SECDEF Efficiency Initiatives are

taking shape that will have downstream impacts on communities

Shared services are becoming the norm among cities/counties

Elimination of duplicative/non-productive overhead is essential to allow funding of key services

Services can be tailored to the unique needs of the customer, if customer is willing to pay the cost increment

We must move from a budget mentality to a cost mentality in all we do

Erosion of capital reinvestment and sustainment capabilities

The Operating Environment is Shaping Community Strategies

to Gain Efficiencies Communities seeking new ways to

cost effectively serve their citizens Communities seeking to expand

partnerships with the military to effectively support DoD missions, operations and personnel

Communities open to new partnership models that will meet community and military objectives

Monterey Example – “Effectively support the DoD missions, operations, and personnel in Monterey’s installations by providing quality facilities, housing, infrastructure and base support services, at the lowest cost.”

Changing operating environment in DoD and communities creating need for efficiencies to meet similar objectives Serve Servicemen and families, serve

citizens Be cost effective Accomplish operational mission, keep base

open

Resulting Situation and Options for Response

Resulting Situation and Options for Response

Needs are creating opportunities for expanded military-community partnerships Mission encroachment and land use

compatibility Public safety - force protection, police, fire Public services - medical/mental health,

social Utility infrastructure - water, sewer, energy Education and workforce development Transportation Environment

NEED(S) Maintenance of Nature

Preserve Maintenance & Operation of

Historic Park Ball Fields Turn Key Base Ops;

Maintenance (e.g., fire, buildings, streets, storm drains, sewer, broadband)

Force Protection Landfill closure and waste

management

SOLUTION(S) Out lease Out lease

Use other people’s $ and real estate instrument

Special Legislation

Cooperative Agreement Joint Powers Authority

Past Successes – Municipal Services in Monterey, CA

Savings via Cost Avoidance

Soldiers FieldCapital Costs: $410,000Annual O&M : $25,000

Presidio Historic ParkCapital Costs: $350,000Annual O&M: $25,000

Total Capital: $1,283,000Total Annual O+M: $102,500

Child Care/Development Center

Capital Costs: $508,000

Annual O&M: $ 40,000

Nature PreserveCapital Costs: $

15,000Annual O&M: $

12,500

Savings via Cost Avoidance

Inter-governmental vs. Traditional Support Savings

Traditional Support

Inter-governmental

SupportDelta

(Savings)

BASOPS Services

$6,213,000 $3,681,000 $2,532,000

Fire Protection $1,700,000 $226,000 $1,474,000

Total $7,913,000 $3,907,000 $4,006,000

51% Total Savings using Inter-governmental Support!

Presidio Municipal Services Agency (PMSA)

Contracted to provide facilities maintenance and repair services since 1999 City of Monterey provides services to Presidio of Monterey

and SATCOM Camp Roberts City of Seaside provides service to Ord Military Community

PMSA is a Non Profit Organization: Contract is Cost-Reimbursable Only pay for actual project costs and services, no contractor

profit AAA audit in 2000 validated 41% savings over ISSA with

Navy Post Graduate School (in-house work force) Estimated 22% cost savings versus firm-fixed price contract

for same services of provided by private contractor (estimated $9.7 M savings for life of contract)

Recognized as Best Practice within Installation Management Command 2010 finalist for ACOE Exemplary Practice Award

PMSA Outcomes Exceptional Service 24/7

Skilled, professional on-site work force of 30+ City immediately expand workforce and

equipment when needed Have access to City Engineers, Planners, Urban

Forester, etc. 24 hr hotline for after hour emergencies March 2009 visit by Office of IMCOM Inspector

General, CSM Aubrey “Best barracks maintenance & management

program in the Army” Superb customer service ratings—over 98%

satisfaction rate All projects (18,723) in FY 10 completed within

allowed time

PMSA Capabilities PSMA Delivers Cost-Effective Municipal Services

Through Unique Capabilities Can immediately expand workforce and allocation of

equipment using city resources when needed Don’t pay for this capability, only pay for actual cost of

services when provided Rapid response to facility emergencies/natural

disasters minimizes damage and saves big $$ Army Benefits From City Relationship With Regional and

State Government Agencies Reimbursement checks for multitude of energy

upgrade projects from local and state-wide rebate programs

Several projects completed at no costs to the installation

Facility energy mgt, Vending Misers, lighting retrofits, water conservation

Explore the possible at proven location – Visit Presidio of Monterey to examine potential of installation collaboration with the community

Attend ADC conference and mission support panels to see other examples, July 17 – 20, 2011 at the Marriott Waterside in Norfolk, VA

Identify pilot location: (1) Military - Query base civil engineers and community planners to identify a service collaborator (city/manager) open to discussions; (2) Community – Show commitment to provide services to save money

Expand Authorities

Next Steps

Next Steps Identify potential shared services with

community via meetings with city manager and county administrative office (e.g., Paving, Fire, Forestry Management, Storm Water Management, Force Protection, Broadband, Landfill Closure, Waste Management, Elevator and Roof Maintenance)

Convene community and military stakeholders to define the nature and scope of partnerships using a table top exercise approach

Conduct a feasibility study looking at the potential for shared service opportunities and efficiencies

Contact Information

Fred Meurer, City Manager, Monterey, CA Office: 831-646-3760 Email: MEURER@ci.monterey.ca.us