Outsourcing the Management of IVGID

Published

on

Author: Myles Riner, MD

In a surprising development, the agenda and a related memorandum for the upcoming IVGID Board meeting on August 6, 2024, have revealed that Trustees Dent, Schmitz, and Tulloch plan to outsource the management oversight of the Incline Village General Improvement District (IVGID), probably to Troon Management, a management consulting firm. This move would occur alongside the appointment of an interim General Manager to replace Mr. Magee. (Source)

It is likely this contract will extend for at least 12 months, probably costing something like $350,000 annually, in addition to the salary for the Interim General Manager. The source of this funding remains uncertain, as it is currently not accounted for in the existing budget.

The primary objective of this consulting management team will be to “analyze IVGID’s current operations and implement the needed changes as identified in various consultant reports.” The memo suggests that: ”at some point in the future, following the implementation of those identified changes, the Board may want to consider the value in partnering with an Interim
General Manager who can work directly with the management agency to ensure Board initiatives and directions are received by staff and managed to completion”. Thus, the contractor may hope for this management contract to extend indefinitely.

This move marks a significant shift in the stance of the three Trustees, who have previously denied any intentions of outsourcing the management of the District and its facilities. However, their latest direction to staff clearly suggests otherwise.

My belief is that Tulloch, in particular, and the other two Trustees, aim for the new management firm to quickly identify and recommend staff reductions to rein in payroll expenses. However, it will likely take months for the Troon Management team to familiarize themselves with the District’s operations, required personnel, and the preferences of the community’s residents. The Trustees who hope to instigate a rapid ‘house-cleaning’ are likely to be disappointed by this extended transition period.

The potential reception of IVGID staff to external non-employee managers is also in question.

Outsourcing management oversight will be perceived as a move to undermine the established operational principles of the General Improvement District, which has a long-standing history of reliable service to the community. This outsourcing idea is so antithetical to the commitments
made by the staff to the operation of the General Improvement District that it smacks of nothing more than retaliation against employees who are viewed as more loyal to the community than to these three Trustees.

With two of these three Trustees set to leave their position in the coming months, now is not the time to make such a significant commitment.

The upcoming Board meeting on August 6th will be a critical moment for residents to voice their concerns and opposition to this proposed expensive and unnecessary outsourcing strategy. (Agenda)