1. New World - New Partnerships How Change in California is Evolving City Government’s Scale May 2011 www.MuniServices.com

2. New Realities of California May 2011 www.MuniServices.com Fiscal Outlook is Bleak Budgets are tight The state is looking deeper into local government revenues Rumblings of realignment are everywhere Budget pressure to do more with less Demographic Change is Significant Population density is on the rise CA population is more urban Greater economic interdependence (statewide and global)

3. Regional Realities May 2011 www.MuniServices.com The stage that city governments are now asked to perform on is far bigger than their geography, population or budgets. Local projects require more capital and resources than individual jurisdictions can support Cities need to find scale without loss of individual services Many issues cross from one city to the next

4. Historic Big Stage Examples May 2011 www.MuniServices.com Global Commerce and International Goods Shipments Devise an efficient method for moving large shipments in and out of Southern California Ports and beyond into the heart of America. Water Resources for Economics Growth Southern California has faced a water shortage since the early 20th century and as a region used scale to address that concern with the Colorado River Aqueduct and again with the State Water Resources projects. California Joint Powers Insurance Authority When abandoned by the private market, cities banded together to self-insure and manage risk, but found comfort in scale to overcome risks good management alone could not solve.

5. Future Big Stage Examples May 2011 www.MuniServices.com Communications Network for Cities and County The LA-RICS program to consolidate and enable cross jurisdiction communications and enhance emergency response for large scale events. Parking Citation Revenue Collection Develop a regional approach to enforcement of municipal parking codes through data consolidation and employment of advanced vehicle location technologies. Regional Library Authorities Cities take ownership of their own libraries and manage a regional contract with a library services provider to manage costs and expand services.

6. Big Stage Problem Characteristics May 2011 www.MuniServices.com Solve something that no individual city can solve on their own. Affect multiple cities in a region. Show potential to harm cities that at this stage may not be harmed by the problem. Typically require large upfront capital expenditures that are tough to overcome, but yield large long term benefits when used on a broad scale

7. A Question of Leadership May 2011 www.MuniServices.com Big stage regional problems create a need for one of two approaches: Cities work together to accomplish a shared objective, or Someone goes to Sacramento and passes a bill for the State to take over the job. Who do you want to take the lead?

8. The Politics of the Regional Approach May 2011 www.MuniServices.com “The new structure needs to provide regulatory, fiscal and other incentives to encourage cooperation among local governments in partnership with the private sector to efficiently and effectively meet regional needs. This strategic alliance should align public efforts with regional economic activity and match the scale of effort to the magnitude of regional challenges.”

9. Political Groundwork for Joint Approaches May 2011 www.MuniServices.com Power Sharing within Regions Requires Focused Consideration of Representation Local Elected Officials Must Take the Lead to Bring Parties to the Table to work together to solve common problems and address major issues A Sense of Urgency Must be Created Among Stakeholders Clear Identification of Costs and Risks Prior to Gaining Commitment is Required.