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Continuous Improvement & Benchmarking

Approve CIB Implementation - Guide


Introduction
At this point in your CIB project you will have determined the preferred solutions, recommended these to your Steering Committee and received their endorsement, and may have secured the funding necessary to implement your improvements. Where any of the following conditions exist, it is most likely that you will need final approval from your Mayor or Council before you can commence the implementation: Additional funding is required from the Council budget; Funding re-allocation from within the budget is requested; A new tax is to be levied upon the community; A major asset is planned to be sold; A major asset is planned to be leased or purchased; There is significant policy change or change to the by-laws of the City; There is significant changes to fee for service charges or penalties for by-law violation; The City will incur a debt / loan that is secured over the assets of the city and will need to be repaid; or The impact upon the residents of the city is significant and is likely to be raised in the Council or to individual councilors.

The trigger point for the Council becoming involved will vary from municipality to municipality, and it can be expected that this point will depend upon the size and political context of the Council.

Seek to have the proposal put on Councils agenda


Getting your CIB Project proposal onto the Council agenda is the first step. You should be aware of the back log of agenda items, and it may be several months before your project can be considered. Having your CIB Project placed on the agenda will also encourage the CIB team to prepare for the proposal, and ensure it is completed on time.

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Created: 25-Nov-04

Revised: 14-Mar-05

2004 ADB Institute

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Continuous Improvement & Benchmarking

Consider objections and be ready for them


Whenever a proposal is put forward to a Council or a committee it must be expected that some individuals will contest or object to some component. This is a predictable way of demonstrating analysis and responsible consideration. The key issue here is to be ready for these objections or questions and where possible have the answer ready within the Proposal. To do this, you can have the CIB team, and your Mayor work through the likely Council or committee members, and guess what questions or objections they may have. This may depend upon the political bias of the individuals or other priorities they may have. A work sheet as follows may be useful:

Council members and their Likely Objections


Councilor name Position on Council Mayor Chair of the Finance SubCommittee Chair of the Budget Sub-Committee Their likely Objection The planned sale of an under-utilized asset will not yield the funds as forecast How we will address this Objection Append to the Proposal a number of valuations from reputable real estate agents and the City Valuer A cash flow forecast is provided with the proposal setting out the Citys capacity to repatriate this loan Work up a planned work schedule with the IT Department and agree with the Department as to when this project may be completed Clear statement of how this project will also benefit her constituents, and when her project
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Mayor Thomas

Is unsure that the City can repay this debt and wants assurance this is affordable Councilor James Councilor Member of the IT Sub-Committee The IT department is focused upon other more pressing issues and does not have the capacity to do this project Wants the money spent on another project that is considered more important

Councilor Mary

Councilor Affiliated with a local NGO

124047547.doc

Created: 25-Nov-04

Revised: 14-Mar-05

2004 ADB Institute

Continuous Improvement & Benchmarking will be possible in the future

Prepare Council Proposal


The Council proposal should be very similar to the CIB Project report (Recommendations) that your Team submitted to the Steering Committee. The additional items that will be required are: A covering letter from the Chair of the Steering Committee recommending the Proposal and seeking Council endorsement; The financial cash flow and accompanying letters of agreement from lenders or sponsors; Cross reference to any separate but related submissions such as changes to the Citys by-laws that may be submitted under a different cover; and The names and contact details of relevant staff members to whom a Councilor may ask questions before the Council meeting.

Issue the Proposal to Councilors


Your City should have an established procedure for submitting proposals and papers to your Council. These procedures need to be followed. In regard to the above, ensure that any proposal for a significant project or improvement, is submitted to the Councilors with sufficient time for them to read, digest, consider, ask questions and debate with their colleagues, before the relevant Council meeting is scheduled. For a major project, the lead-time should be in the order of one month.

Amend proposal to accommodate Council changes


It is very likely that some changes to the Proposal will be sought from the Council. The changes may be small or significant, so be ready for these. The key issue here, is to re-act very quickly to the change requests, and get the amended Proposal back to Council while their memory of the original debate is fresh in their minds. Attempt to get the amended proposal back at the very next Council meeting. If you delay the amendments, there is a chance that more discussion will take place and a further round of changes may be requested. In the final (hopefully second) submission of the Proposal, it is best to cover the Proposal with a memorandum from the Steering Committee Chair, highlighting or
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Continuous Improvement & Benchmarking summarizing the changes requested by Council, and how these requests have been addressed. This way the Councilors will not have to wade through the entire proposal again and will only focus upon the issues, concerns or requests they made on the original proposal. A short table on the front of the amended proposal, as shown below will assist Council to endorse the amended Proposal.

124047547.doc

Created: 25-Nov-04

Revised: 14-Mar-05

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Table Showing Council Amendments


Councilor Objection or request I would like the project brought forward by one month The project budget is too large and I would like the project implemented in two phases, spreading the cost over two years I would like to be assured that the sale of the old building will yield the forecast sale value How this has been dealt with The project timetable has been amended and will start one month earlier The project has been divided into two phases. Phase I will be implemented in 2006 and phase II in 2007 We have obtained two independent valuations that support the original valuation, plus we have included a contingency in the forecast cash flow to allow for any shortfall. Reference inside the amended Project Proposal Appendix A, Project timetable

Councilor James

Councilor Mary

Appendix A Project time table, and Appendix D Project cash flow forecast

Mayor Thomas

Appendix D Project cash flow forecast, and Appendix M copies of two independent valuations

Seek Council endorsement


The final step is to specifically ask for Councils endorsement of the amended Proposal and have this minuted in the Council Meeting Minutes. This minute will be the approval required for this Project to proceed.

124047547.doc

Created: 25-Nov-04

Revised: 14-Mar-05

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Disclaimer: The views expressed in this Toolkit are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank (ADB) or Asian Development Bank Institute (ADBI), or their Board of Directors, or the governments they represent. ADB and ADBI do not guarantee the accuracy of the data included in this CD-ROM and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

124047547.doc

Created: 25-Nov-04

Revised: 14-Mar-05

2004 ADB Institute

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