There are a range of tools and methods available to measure, assess and monitor local governance, based on assessment by citizens (single stakeholders), by local government institutions, or by multiple stakeholders. In terms of specifically assessing capacity there are tools which produce capacity assessments for the purposes of Capacity Development (CD). For example Brinkerhoff provides a series of assessment frameworks which could be used to assess local government capacity and provide comparisons between local governments.
There does not currently seem to be a readily available tool to assess leadership in a development context. However, leadership and human agency within development contexts has emerged recently as a focus of research. Recent literature suggests how to better define leadership and decision-making characteristics which help identify good leadership.