Fred Meurer City Manager Monterey, CA/BAH (831) Military – Community Collaboration Areas and Approaches for Efficiency

Situation Assessment within the DoD The Defense Operating Environment is Changing u Defense budgets are shrinking u Weapon systems are aging u Personnel management costs are increasing u Some career fields are being stressed and civilian/military force levels are changing u Congressional oversight is increasing u SECDEF Efficiency Initiatives are taking shape u Continued “risk” in infrastructure The Operating Environment Continues to Shape DoD Strategies to Gain Efficiencies u Centralization (e.g., organizational, processes, authorities) u Consolidation (e.g., BRAC, Joint Bases, merging career fields) u Leveraging best practices from private sector, academia, consultants, other Services, agencies, & internal AF change management efforts u Revised Strategic Plans & “Transformational Initiatives” u Search for IT efficiencies u Incorporation of asset management principles into business processes u Expanding Public Private Partnerships

u FAR - competitive procurements, sole source arrangements u Sec 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) u Special Legislation u 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 u Senate Colloquy - Senator Nunn and Senator Boxer clarify intent of Sec. 816 to waive requirement for A76 Congressional Record - Senate - 9/5/95 u Commander Initiative & Patience u Collaborating Community u Table Top Exercises to identify collaboration areas and mechanisms Authorities and Tools

Situation Assessment within Communities The Local Community Operating Environment is Changing u Community budgets are shrinking u Demand for jobs is increasing u SECDEF Efficiency Initiatives are taking shape that will have downstream impacts on communities u Shared services are becoming the norm among cities/counties u Elimination of duplicative/non- productive overhead is essential to allow funding of key services u Services can be tailored to the unique needs of the customer, if customer is willing to pay the cost increment u We must move from a budget mentality to a cost mentality in all we do u Erosion of capital reinvestment and sustainment capabilities The Operating Environment is Shaping Community Strategies to Gain Efficiencies u Communities seeking new ways to cost effectively serve their citizens u Communities seeking to expand partnerships with the military to effectively support DoD missions, operations and personnel u Communities open to new partnership models that will meet community and military objectives u 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.”

u Changing operating environment in DoD and communities creating need for efficiencies to meet similar objectives u Serve Servicemen and families, serve citizens u Be cost effective u Accomplish operational mission, keep base open Resulting Situation and Options for Response

u Needs are creating opportunities for expanded military-community partnerships u Mission encroachment and land use compatibility u Public safety - force protection, police, fire u Public services - medical/mental health, social u Utility infrastructure - water, sewer, energy u Education and workforce development u Transportation u Environment

NEED(S) u Maintenance of Nature Preserve u Maintenance & Operation of Historic Park u Ball Fields u Turn Key Base Ops; Maintenance (e.g., fire, buildings, streets, storm drains, sewer, broadband) u Force Protection u Landfill closure and waste management SOLUTION(S) u Out lease u Use other people’s $ and real estate instrument u Special Legislation u Cooperative Agreement u Joint Powers Authority Past Successes – Municipal Services in Monterey, CA

Savings via Cost Avoidance u Soldiers Field Capital Costs: $410,000 Annual O&M :$25,000 u Presidio Historic Park Capital Costs: $350,000 Annual O&M:$25,000 Total Capital: $1,283,000 Total Annual O+M: $102,500 u Child Care/Development Center Capital Costs: $508,000 Annual O&M: $ 40,000 u Nature Preserve Capital Costs: $ 15,000 Annual O&M: $ 12,500

Savings via Cost Avoidance Inter-governmental vs. Traditional Support Savings Traditional Support Inter- governmental Support Delta (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) u Contracted to provide facilities maintenance and repair services since 1999 u City of Monterey provides services to Presidio of Monterey and SATCOM Camp Roberts u City of Seaside provides service to Ord Military Community u PMSA is a Non Profit Organization: Contract is Cost-Reimbursable u Only pay for actual project costs and services, no contractor profit u AAA audit in 2000 validated 41% savings over ISSA with Navy Post Graduate School (in-house work force) u 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) u Recognized as Best Practice within Installation Management Command u 2010 finalist for ACOE Exemplary Practice Award

PMSA Outcomes u Exceptional Service 24/7 u Skilled, professional on-site work force of 30+ u City immediately expand workforce and equipment when needed u Have access to City Engineers, Planners, Urban Forester, etc. u 24 hr hotline for after hour emergencies u March 2009 visit by Office of IMCOM Inspector General, CSM Aubrey u “Best barracks maintenance & management program in the Army” u Superb customer service ratings—over 98% satisfaction rate u All projects (18,723) in FY 10 completed within allowed time

PMSA Capabilities u PSMA Delivers Cost-Effective Municipal Services Through Unique Capabilities u Can immediately expand workforce and allocation of equipment using city resources when needed u Don’t pay for this capability, only pay for actual cost of services when provided u Rapid response to facility emergencies/natural disasters minimizes damage and saves big $$ u Army Benefits From City Relationship With Regional and State Government Agencies u Reimbursement checks for multitude of energy upgrade projects from local and state-wide rebate programs u Several projects completed at no costs to the installation u Facility energy mgt, Vending Misers, lighting retrofits, water conservation

u Explore the possible at proven location – Visit Presidio of Monterey to examine potential of installation collaboration with the community u Attend ADC conference and mission support panels to see other examples, July 17 – 20, 2011 at the Marriott Waterside in Norfolk, VA u 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 u Expand Authorities Next Steps

u 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) u Convene community and military stakeholders to define the nature and scope of partnerships using a table top exercise approach u Conduct a feasibility study looking at the potential for shared service opportunities and efficiencies

Contact Information u Fred Meurer, City Manager, Monterey, CA u Office: u