A Failure to Communicate Restoring Trust and Accountability in Santa Cruz City Government

Conclusions 2

• CL1 Page 26
  The period from November 2018 through the present day has been particularly tumultuous, divisive, and painful for the Santa Cruz City Leadership and City Staff, and the Community. The consensus among Grand Jury interviewees was trust and communications were broken on many levels. Few expressed confidence that a culture of trust and open communication could be re-established. The Council-Manager form of city government requires and assumes a partnership between City Council and City Staff.[201] It cannot function effectively if there is ​ ​​ ​ unresolved conflict among those parties. It might be reasonable to conclude that the dysfunction was situational rather than systemic. The root causes of divisions in the City might have been the coincidence of an alleged progressive majority and attempts at tackling the complex and incendiary labyrinths of affordable housing and homelessness. But the Grand Jury heard testimony and found evidence to the contrary. We learned that divisions existed prior to November 2018, and that the recall, if it were to be successful, would do little to heal those divisions. After the presentation of CRC findings to the City Council, Councilmembers expressed sadness over the conflicts that led to CRC involvement. But they did not fully acknowledge or take responsibility for their roles in the conflict, nor did they pledge to apply what they had learned to future conduct, or suggest that ongoing work and training in conflict resolution should be a high priority.[202] ​ ​ ​ Currently, in part due to COVID-19 constraints of remote proceedings and dial-in public comment, City Council meetings are outwardly less contentious. But what lessons were learned from the last 18 months that could provide guidance to Council and City Staff, working as a team, to improve their performance in solving existing and future crises? In a May 7, 2020 memorandum, the City Manager estimated that the City now faces huge budget deficits in the next 2 fiscal years.[203] These deficits will lead to substantial ​ ​​ ​ pain and hardship for the City and its residents. Surveys, Grand Jury testimony, and public comment have all demonstrated a lack of confidence in City Leadership. Can Council and City Staff restore trust and accountability in the midst of these challenges?
• CL2 Page 27
  When times are tough, it is tempting to conclude that there isn’t time to work on organizational improvements, and that all resources should be focused on getting through the tough times. But impacts of dysfunction are amplified during such times. Weaknesses are revealed that may hinder optimal response. This report suggests many improvements to City strategy, policies, and process. But as the legendary educator and business management guru Peter Drucker remarked, “Culture eats strategy for breakfast."[204] In other words, policies and strategy are ​ ​​ ​ important but without a culture of trust, transparency, teamwork and effective communications, even the best strategy will not lead to organizational success. Trust is a commodity that is lost quickly and regained slowly. For the City of Santa Cruz, now is time to begin restoring that trust. The Grand Jury therefore respectfully submits the following findings and recommendations.

Agency Responses 2

Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.