The Corporate Structure of Las Cruces Government

 Woodie R. Jenkins, Jr.

FORM OF GOVERNMENT

 Las Cruces has operated under the “council-manager” form of government for more than half a century.  To provide an understanding of what it means to operate under a “council-manager” form of government, consider the corporate model that describes it.

 The corporate model that describes the “council-manager” form of government has the following seven elements: (1) owners of the corporation, (2) a corporate board of directors, (3) a chair and vice chair of the board, (4) a chief executive officer (CEO) of the corporation, (5) an operating organization, (6) customers, and (7) an arrangement for independent adjudication of disputes between customers and the operating organization.  Las Cruces, the name of the corporation, is a corporation under the laws of New Mexico.  The corporation has the following seven elements: (1) the residents/property owners ate the owners of the corporation, (2) the city council is the corporate board of directors, (3) the mayor is the chair and the mayor pro tem is the vice chair of the board, (4) the city manager is the chief executive officer of the corporation, (5) city staff is the operating organization, (6) all of the people in Las Cruces are the customers of the corporation, and (7) municipal court serves as an arrangement for independent adjudication of disputes between customers and the operating organization and provides adjudication of alleged violations of city laws.

 CORPORATE STRUCTURE VERSUS THE LEGISLATIVE BRANCH, EXECUTIVE BRANCH, AND JUDICIAL BRANCH STRUCTURE   

 The corporate structure works differently from the legislative branch, city manager, and municipal court structure.  Under the legislative branch, executive branch, and judicial branch structure, each branch has its own separate organization, employees, requirements, and budget.  Each branch operates independently from the other branches but their powers and duties provide checks and balances on the other two branches of government.  Under the corporate structure, the municipal court operates independently from the rest of the corporate structure but it provides no checks and balances - since the city manager or the city council has the discretion to assign adjudication cases outside the corporate structure.  The city manager and the city staff operate somewhat independently, but it is subject to oversight actions of the city council.  The city council has all of the power of the corporation but the city manager has the power to choose, without interference from the city council, how to implement and enforce city council policies and laws.  So, the corporate structure works differently from the legislative branch, executive branch, and judicial branch structure.

 CHARTER OF THE CORPORATION

 The charter of a corporation is a contract between the corporation and the state legislature.  It includes the articles of incorporation.  The corporation usually develops by-laws to govern its operation.  In the case of Las Cruces, the city charter is a combination of its articles of incorporation and its by-laws.  The by-laws may contain any provision for the regulation and management of the corporation not inconsistent with law or the articles of incorporation. 

 DISTRIBUTION OF POWERS AND DUTIES IN THE CORPORATE STRUCTURE

 

The Duties of the Board of Directors

The Board of Directors is in charge of Corporate Governance and the due arrangement of the corporation’s affairs. The Board of Directors decides on matters which, in view of the scope and type of the corporation’s operations, are uncommon or wide-ranging in impact. These are, notably, approval of the corporation’s objectives and the strategy that is formulated for achieving them, approval of operational plans, the definition and approval of control principles, approval of the corporation’s organizational structure, selecting the CEO, and assessing the CEO’s performance. The Board of Directors is responsible for duly organizing the corporation’s accounting and overseeing the management of its funds. The Board of Directors is responsible for seeing to it that the corporation’s financial statements give correct and sufficient information and that the consolidated financial statements have been prepared in conformity with Financial Reporting Standards and the financial statements of the corporation are in conformity with the acts and regulations in force in New Mexico. The Board of Directors discusses the corporation’s audit with the auditor. The Board of Directors evaluates its activities and ways of working on an annual basis. The Board of Directors has drawn up a written charter defining the above-mentioned duties and procedures.

 CEO Duties

A CEO is much more than just another upper level manager who has been promoted due to the standard of experience or performance. CEOs function as the main artery between the corporate board members and the various levels of the organization itself. The CEO is held solely responsible for the success or failure of the corporation.  It is also the CEO's responsibility to maintain and implement the corporate objectives established by the board members. There are three major responsibilities of a corporate CEO.

The first responsibility of a CEO is that he or she must have is a vision. The CEO must be able to scan the environment for hints of future changes. A CEO must be able to look into the future and predict changes as well as to project solutions to these changes. Seeing what is coming is only half of the job. Communicating this change to all other parts of the corporation is just as important. All of the various functions within the organization must be prepared to deal with foreseen changes, or the corporation will have serious problems. This means that a CEO must be a visionary, a problem solver, and a communicator.

The second requirement is that a CEO must act as a role model for the entire organization. Everything from how he or she dresses to what his or her values and attitudes represent, serve as models for employees and managers alike. Therefore, the CEO has the responsibility of setting a good example for the corporation. This requirement challenges the CEO to be a role model and a leader.

The third responsibility is that a CEO should set performance standards for the corporation and should promote those standards with confidence. The CEO must determine what standards are required to maintain a competitive advantage and implement these standards into the output of the corporation. Standards need to be set high to remain competitive yet still be within an attainable range. This responsibility requires that the CEO be a motivator as well as a supporter.

These three duties of a CEO are vital to the success of the corporation, but the CEO's responsibilities do not end at the boundaries of the corporation. Every decision a CEO makes affects many different people both internal and external to the corporation’s organization. Therefore, every decision must be well thought out and planned. The CEO's job is to implement and maintain the corporation's objectives through unexpected as well as foreseen threats and opportunities. The CEO is the key that keeps the corporation in focus.

 

CITY CHARTER UNDER THE CORPORATE STRUCTURE

 In view of the discussion above, logic dictates that the city council, the city manager, and the municipal court need to (1) know what it is expected to accomplish, (2) have the authority necessary to achieve what is expected to be accomplished, and (3) have the ability to obtain the resources necessary to achieve what is expected to be accomplished.  The following examines the charter relative to these concepts.

 The City Council

 

City Council Duties

Establish Public Policies & City Laws

Oversee the Conduct of City Business

Know what is expected

The city council should accommodate in their decisions as many known and valid diverse points of view as are practical.

 

The city council should choose courses of action or inaction, when addressing problems or sets of problems that agree with this community’s set of values regarding appropriate public goals and this community’s set of beliefs about the best way of achieving those goals.

 

This community’s goals are:

1.  Preserve and enhance the health, safety, and general welfare of the people in Las Cruces

2.  Maintain a sense of community in each neighborhood within the city

3.  Services provided by city government meet established standards

4.  Preserve open space

5.  Achieve an urban form which supports and enhances our unique environment

6.  Preserve and enhance our natural, visual, and historical/cultural resources

7.  Provide a multi-modal transportation system which efficiently and effectively supports the transportation needs of the community

8.  Achieve optimum efficiency in the planning and operation of our city's utility systems

9.  Establish and maintain a stable, diversified economy

10. Provide suitable housing opportunities which meet the needs of all socioeconomic levels

11. Enhance economic opportunities and economic activity within Las Cruces

 

This community’s set of beliefs about the best way of achieving those goals are: 

 

The governing body shall establish and adopt by ordinance or resolution the policies, goals and objectives outlined in the city General Plan. Such policies, goals and objectives shall not be revised or amended without one or more public hearing by the governing body

 

The city council shall hire and fire the city manager.

 

The city council shall by resolution tell the city manager what the operating organization is expected to accomplish and evaluate the city manager’s performance annually against the degree of accomplishment.

 

The part of the mayor pro tem’s service as mayor that exceeds thirty (30) consecutive days should be compensated at the mayor’s rate of compensation.

A.  The city council should require (1) research of policy issues, (2) development of information and analyses that document the pros and cons of decision options from the point of view of each group of stakeholders, (3) coordinated issue development, (4) evaluation of the effectiveness of the implementation and enforcement of council policies and laws, and (5) evaluation of the degree of compliance with established standards and program requirements.

 

B.  The city council should prioritize the spending of public funds.

 

C.  The city council should verify that the city’s funds are properly accounted, reported, protected, and managed.

 

D.  The city council should verify that city assets are properly accounted for and are maintained in serviceable condition.

 

E.  The city council should verify that all contractual and statutory requirements are timely met.

Have authority to achieve what is expected

A. Powers. The city should have all powers possible for a city to have under the constitution and laws of New Mexico.

B. Acceptance of devolution of powers,   By enacting the charter pursuant to the provisions of Article X, Section 6 of the New Mexico Constitution, and pursuant to the New Mexico Municipal Charter Act, the City of Las Cruces accepts the full and complete devolution of home rule powers granted in the constitution and the laws of the State of New Mexico to each municipality that adopts a municipal charter. Accordingly, the city should have all powers possible for a home rule municipality to possess under the New Mexico Constitution and the laws of the State of New Mexico, including all implied powers and all powers necessary to implement all express powers of the city, as if each and every one of the city’s implied powers were fully, completely and expressly enumerated in the charter.

 

C. Powers of general law municipal corporations, the city shall be entitled to exercise any and all powers granted by law of the New Mexico Constitution to municipal corporations, except to the extent there may be a conflict between the exercise of the powers and the provisions of the charter, in which case, the charter shall operate to limit the city’s ability to exercise such powers.

 

D.  The city council should take no action that interferes with the proper operation of the city manager or municipal court.

Oversight and Investigations:  The city council should be authorized to perform any and all acts it deems necessary to perform oversight of all governmental functions and to perform investigations into actions of city government (except that all matters covered by the city’s personnel policy and grievance procedures are excluded).

 

 

Have the ability to provide the resources needed to achieve what is expected

This ability is provided by the council’s general powers.

This ability is provided by the council’s general powers.

Rights of the public

Registered voters should have the right to run for and serve as a member of the city council.

 

The council shall provide a method for receiving, acknowledging, and resolving complaints or grievances concerning the city or its operations.

 

The public should have the rights of:

A. Referendum

 

1.  Right of referendum.   Registered voters who are residents of the city shall have the power to repeal any adopted ordinance, except as prohibited by law or the charter.

 

2.  Prohibited use of referendum power.   The power of referendum shall not extend to: the budget; the capital program; any ordinance relating to the appropriation of money; the levy of taxes, unless a referendum is specifically authorized by state law; salaries of city officers or employees; zone map amendments; ordinances authorizing bonds or other obligations when such ordinances, bonds, or other obligations are revenue bonds or have previously been approved at a city election; or any ordinance adopted in furtherance of the human and civil rights policy of the charter.

 

B. Initiative.

 

1. Right of initiative.   Registered voters who are residents of the city shall have the power to propose ordinances to the governing body, except as prohibited by law or the charter.

 

2.  Prohibited use of initiative power. The power of initiative shall not extend to: the budget; the capital program; any ordinance relating to the appropriation of money; the levy of taxes; salaries of city officers or employees; zone map amendments; ordinances authorizing bonds or other obligations when such ordinances, bonds, or other obligations are revenue bonds or have previously been approved at a city election; or any ordinance that would violate the human and civil rights policy of this charter.

 

3. City attorney’s opinion required. The city attorney shall review and render and publish a public opinion as to the legality and form of any initiative proposed ordinance before it is submitted to the governing body for consideration

 

C. Recall.

 

Right of recall. Registered voters who are residents of the city or residents of the district from which a councilor was elected shall have the right to recall certain elected officials in accordance with the procedures set forth in this section.

 

Duties & Rights of the members

The city council and its members should have the maximum practical access to information about the acts and functioning of city government.

The city council and its members should have the maximum practical access to information about the acts and functioning of city government.

 THE CITY MANAGER

 

 

City Manager Duties

Implement Laws & Policies

Enforce Laws & Policies

Operate the Organization

Know what is expected

Services provided by city government should meet or exceed adopted standards in each neighborhood of the city.   Where standards are not met, the unmet location should be placed on an action plan schedule for bringing the area up to standard.

 

All city government assets should be maintained in serviceable condition.  Assets not in serviceable condition should be placed on an action plan schedule for bringing the asset up to standard or to replace the asset.

 

The cost of operations should be maintained at the lowest practical level.

 

The city manager shall determine how to implement the city council’s adopted policies and laws.

 

The city manager shall implement the city council’s adopted policies and laws.

Enforcement actions should be consistent for similar circumstances.

 

The city manager should have procedures for enforcing municipal court rulings.

A.  The city manager and the city organization should operate their proper functions without interference from the city council or the municipal court.

 

B. The structure and size of the city government organization should be that which is necessary and sufficient to deliver standard levels of service to each neighborhood in Las Cruces.

Have authority to achieve what is expected

The city manager should have authority to implement policies and laws

The city manager  should have authority to enforce laws

The city manager should have a procedure for acquiring needed recourses

Have the ability to provide the resources needed to achieve what is expected

The city manager should have a procedure for acquiring needed recourses

The city manager should have a procedure for acquiring needed recourses

The city manager should have a procedure for acquiring needed recourses

Rights of the public

Lodge complaints and give public input

Lodge complaints and give public input

None

Duties & Rights of the members

Personnel actions should all be based on merit principles

 

Performance requirements and evaluations should be based on providing standard levels of service

Personnel actions should all be based on merit principles

 

Performance requirements and evaluations should be based on providing standard levels of service

Staff should be covered by a personnel policy.

 

There should be a process for dealing with certified bargaining units

 THE MUNICIPAL COURT

 

 

Municipal Court Duties

Adjudicate Conflicts & Alleged Violations

Operate the Organization

Know what is expected

A. Rulings should be consistent for similar circumstances

 

B. Unenforceable city laws should be reported to the city council and the city manager – with reasons why the laws are unenforceable.

A.  The presiding judge and the municipal court should operate proper municipal court functions without interference from the city council or city manager.

Have authority to achieve what is expected

A. The municipal court shall have jurisdiction over all petty misdemeanor offenses and complaints under ordinances of the City of Las Cruces and may issue subpoenas and warrants and punish for contempt.

 

B. The municipal court shall have such additional jurisdiction and duties as may be prescribed by law or legally assigned to the court by the council.

The municipal court staff is delegated authority from the presiding judge to act as expected.

Have the ability to provide the resources needed to achieve what is expected

The presiding judge needs to be authorized to hire municipal court staff, to contract for outside expertise, and to set and manage the municipal court budget

The city manager needs to provide the budgeted non-personnel resources identified by the presiding judge.

Rights of the public

Resident qualified voters may run for and serve as municipal judge.

 

The municipal court is not subject to local initiative or referendum.

 

The municipal judge may be removed from office in accordance with applicable state law.

 

The council shall establish by ordinance procedures wherein, unless waived, the municipal judge shall appoint an attorney to represent an indigent person in all cases in which a term of incarceration is to occur.

None

Duties & Rights of the members

The municipal judges and municipal court staff should have the maximum practical access to information about matters pertaining to pending adjudications.

Members of municipal court staff have the same rights, benefits, privileges, and protections as do city manager employees.