“Changing the Mindset” was the cornerstone of the IBM recommendations, urging that regional cooperation was fundamental to improving economic competitiveness. The original governance model suggested by IBM was a streamlined approach comprised of three “layers,” each with specific roles to provide unified economic development:

1. The top layer had 6 jurisdictional representatives: The Mayors of the Cities of Reno and Sparks, the Chair of the Washoe County Board of County Commissioners, and the City and County Managers, who were tasked with the vision and accountability for the project’s implementation.
2. The next layer was a three-person “regional board,” comprised of one representative from each jurisdiction who was empowered to make decisions on behalf of each government and who collectively were responsible for making decisions, adjusting course, and managing risks.
3. The bottom layer was comprised of the Implementation Teams, which owned the tactical execution of the five recommendations and which reported regularly to the regional board.

In addition, there was an “advisory council” to the “regional board” made up of civic, academic, and private leaders who could identify high-priority issues and analyze data, as needed.

From June – September 2013, City of Reno staff presented the IBM Final Report to our sister jurisdictions and to the entities which were identified in the Report as key to implementation (i.e., Truckee Meadows Regional Planning Agency, The Chamber, EDAWN, Washoe County School District, DRI, UNR and TMCC). The Report was presented as a potential regional strategy and the entities were asked whether they wished to participate.

The response was affirmative, from elected officials to senior management. Based on this appetite, the project was expanded from Smarter Cities to Smarter Region – from Reno-centric to regional. In October, the Reno-Tahoe Airport Authority was invited to the project since that sector is a significant economic driver for the region.

These changes triggered a need for a revised governance model, one which reflected the expansion and created a way for the 11 entities – which were silo’d in different sectors – to be cohesive.  The members of the Smarter Region Management Team and Action Team collaborated on revising the original IBM governance model to reflect the addition of the new regional partners. During December 2013 and January 2014, members of the Action Team provided an update to the elected bodies on the nature of the revisions that were underway and the new entities that were collaborating.

The new governance model to achieve the goal of regional cooperation to achieve improved economic development outcomes is attached to this staff report. Please note that there are color-coded boxes corresponding to the four “layers” which provide an explanation of the layers’ role in the project.

The highlights of the new governance model include:

1. Smarter Region Leadership is now fully inclusive, rather than selective. Every elected official who makes policy decisions affecting public entities which are participating in the Smarter Region project is represented on the Smarter Region Leadership Team. Twenty-six officials are in this layer, representing the governing bodies of :

• The City of Reno
• The City of Sparks
• The Washoe County School District
• Washoe County

It also includes our region’s representatives to the Board of Regents for the Nevada System of Higher Education.  The Regents as a whole oversee the University of Nevada, Reno, Truckee Meadows Community College, and the Desert Research Institute.

Smarter Region Leadership is the first time in our history that these officials have convened as a body to consider policy decisions which affect regional economic development and workforce development.

2. The “Management Team” is new. This “layer” is comprised of the chief executive officers (e.g. Managers, Presidents, Executive Directors, CEO’s) from each of the 11 entities participating in Smarter Region, both public and private. The Management Team has 11 members, comprised of:

• The Reno City Manager
• The Sparks City Manager
• The Washoe County Manager
• The President of the University of Nevada, Reno
• The President of the Desert Research Institute
• The President of Truckee Meadows Community College
• The Superintendent of the Washoe County School District
• The President and CEO of the Reno Tahoe Airport Authority
• The Chairman of the Board of the Economic Development Authority of Western Nevada (EDAWN)
• The Chairman of the Board of The Chamber
• The Executive Director of Truckee Meadows Regional Planning Agency

The members voted that the Chair of the Board of EDAWN would serve as the Chair of the Management Team. For CY 2014, the Chair is Steve Anderson. The rationale behind this decision was two-fold: 1) it demonstrates the primacy of the private sector in regional economic development initiatives, and 2) it sends a clear message that Smarter Region is a true public/private partnership in execution as well as intent. What is of note is that several members of the Management Team had never met before this project.

3. The Management Team decided to create an expanded advisory council comprised of leaders from civic, private, academic, and other public agencies, e.g. the Regional Transportation Commission, the Reno Sparks Convention & Visitors Authority, hotel/casino property owners, business and community leaders, and local philanthropic foundations. The role of the Advisory Council is to provide strategic input on a periodic basis, identifying high-priority issues and potentially making recommendations to the Management Team.

4. The Action Team was reconfigured and its role was fleshed out. The Action Team is comprised of 24 “worker bees,” key staff who are responsible for the actual implementation of the IBM recommendations. They liaise between the Implementation Teams and the Management Team, ensuring that parallel efforts remain aligned and vetting issues that the Management Team refers.  Similar to the Management Team, several members of the Action Team had never met before this project.

5. The Implementation Teams remain the same as those recommended by the IBM Team.   

The Management Team, Action Team and Implementation Team have been in operation since Fall 2013; the overall structure is working well. The Teams have grown into meaningful forums for new cross-agency communication, problem-solving, and collaboration. For example, the small team who created a process to identify a shared regional economic development vision came together through frank discussions at the Management Team level. The Media Team is another example: it is comprised of talent drawn from multiple agencies who are working together for the first time.

Progress made to date fulfills the first two aspects of the recommendation’s scope as presented in the IBM Final Report:

• Build coalition and collaboration
• Regional leaders agree on a governance model and management system

I move to approve Resolution No. 3256 ratifying the goal of regional cooperation regarding improving economic development outcomes and the new Smarter Region governance model to achieve that goal.