LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT

Organizational Review

Project Report

Project Goals• Conduct a comprehensive management

review of the entire government organization, including:

Structure Selected policies and processes Staffing levels Operational practices Strategic work and financial planning

• Make the City work faster, better and cheaper…

Today’s Presentation• Methodology• Government-wide review of key

recommendations: Finance and Administration General Services Law Public Works and Development Environmental Quality Public Safety Social Services Mayor and Advisors

• Wrap-up/Next Steps

Methodology

• Interview Mayor, City Council Members, commissioners, directors and staff

• Gather employee input (surveys/focus groups) • Document review and data analysis• Peer comparisons with benchmark communities• Identify best practices – nationally • Review findings with commissioners and Mayor• Prepare/present project report

Project Summary

• 424 Recommendations for improvement that will result in organizational efficiencies and cost savings across the government

Section RecommendationsCorporate 11Finance and Admin 43General Services 72Law 40Public Works and Dev 70Environmental Quality 52Public Safety 66Social Services 32Mayor and Advisors 38Total 424

Project Summary

• Structure changes will clarify responsibilities, eliminate redundancies, and streamline management

• Recommendations are specific and action-oriented, will work to improve efficiency and effectiveness of government operations

Corporate RecommendationsRecommendations promote large-scale positive

improvement and efficiency, including:• Implement strategic planning

City-wide, the use of strategic management and strategic planning is limited; few departments have strategic plans or conduct work planning

• Develop comprehensive system of performance management to ensure routine communication between managers on operational performance and project management

Corporate Recommendations (Cont.)

• Prepare a City-wide enterprise Information Technology (IT) Plan

• Change the culture of having quality control at the “end” of the process – by eliminating the citizens advocate position

• Redefine the Lexington “brand” End the use of LFUCG acronym

Department of Finance and Administration

Accounting

Central Purchasing

Revenue

Community Development

Human Resources

Finance and Administration (Cont.)

Increase revenues• Initiate discussions with the School Board to

resume collecting the OLT on its own behalf $200,000 in additional revenue to the City at no additional

costs, unknown reduction in costs to the school district

• Develop a plan to eliminate or reduce the General Fund parking subsidy

Eliminate $780,000 of General Fund expense

Finance and Administration (Cont.)

Human Resources• Modify statutory authority for the City’s civil service system

to provide a modern civil service system based on merit and fitness

• Create an Executive Service System designated by ordinance, separate from the classified civil service system

• Repeal requirement for legislative approval of routine personnel actions

• Eliminate the requirement for the Council to approve all new hires

Saves a minimum of two weeks in the hiring process cycle time

Department of General Services

Building Maintenance & Construction

Fleet Services

Parks and Recreation

General Services

Organizational Structure• Create a new Facilities and Fleet Management

Division that consolidates decentralized facilities management functions

New unit will be responsible for the planning, management, asset management, and maintenance for all Lexington property, buildings, vehicles and equipment

• Reduce, eliminate, and/or pool the 107 fleet vehicle units specified in the fleet utilization analysis Generate $651,000 from the sale of 97 excess units Estimated 2.7 million savings in forgone replacement costs

General Services (Cont.)

Parks and Recreation• Increase recreation fees immediately to be consistent

with the current policy • Revise the recreation fee policy to establish an annual

not-to-exceed amount for the General Fund support of recreation programs and encourage recreation managers to provide innovative programs that generate additional revenue

•  Revise the recreation fee policy to provide for approval of Parks and Recreation fees administratively by the Commissioner of General Services

General Services (Cont.)

• Parks and Recreation (cont.) Close underutilized facilities

Department of Law

Risk Management

Corporate Counsel and Litigation

Law

• Separate Risk Management functions into two separate components Separate according to legal functions for claims and

litigation, and non-legal functions

• Separate attorneys and support staff for divisions of litigation and corporate counsel

Department of Public Works and Development

Engineering

Streets, Roads and Forestry

Traffic Engineering

Historic Preservation

Planning

Building Inspection

Public Works and Development (Cont.)

New Division - Capital Projects and Management

• Centralize project management for CIP projects requiring plans, specifications and bid documents in a new Capital Projects Management division

Public Works and Development (Cont.)

Division of Engineering• Amend engineering consultant selection process

to ensure compliance with qualifications-based selection practices and price negotiation with the most qualified firm Selection should be evaluated by technical staff

Public Works and Development (Cont.)

Development Plan Review• Require engineering review of development

plans for key areas such as drainage and stormwater management City review must be in-depth and verify that

engineering calculations are correct

Public Works and Development (Cont.)

Traffic Engineering• Establish a partnership and contractual arrangement

with Jessamine County for traffic engineering services

Planning and Historic Preservation• Streamline Division staffing by eliminating a vacant

planning manager position and a staff assistant position• Align historic and planning functions by placing Historic

Preservation within the Planning Division• Develop a comprehensive integrated system for plans

review and tracking linked to the process currently underway by the Division of Building Inspection to purchase plan tracking software

Public Works and Development (Cont.)

Building Inspection• Streamline the organizational structure by reducing the

number of existing residential inspectors by 3 positions• Use contract inspectors, as needed, to handle peak

residential inspections in excess of 2006 workload volumes.

Department of

Environmental Quality

Office of Compliance

Water and Air Quality

Waste Management (formerly

known as the Division of Solid Waste)

Environmental Quality

Office of Compliance

• Transfer environmental management duties of Division of Environmental and Emergency Management to the Department of Environmental Quality

Environmental Quality (Cont.)

Water and Air Quality

• Implement a stormwater utility including funding for stormwater management activities and support functions

• Develop a comprehensive plan for capital improvements

Environmental Quality (Cont.)

Waste Management• Develop an action plan to implement

recommendations contained within the solid waste management study

• Make participation in recycling and yard waste collection programs mandatory, including areas outside the Urban Services Districts.

Environmental Quality (Cont.)

• Create a solid waste special revenue fund with customer charges based more closely on cost of services

Consider a phased conversion from ad valorem levy to annual special assessment approximating the cost of service delivery based on customer class; develop long-term strategy for converting to a user-fee based utility

Department of Public Safety

Code Enforcement

Community Corrections

Enhanced 911

Environmental and Emergency Management

Fire and Emergency Services

Police

Public SafetyCode Enforcement• Develop an annual rental inspection and point of

sale program• Develop a fee rate structure that will make

annual and point of sale inspections self-supporting

• Develop procedure and policy based on expedited lien placement and aggressive enforcement to recover abatement costs and civil penalties

Public Safety (Cont.)

Enhanced 911• Consolidate emergency management and E-911

operations organizationally and physically into a single new division reporting to the Public Safety Commissioner

Public Safety (Cont.)

Fire and Emergency Services• Do not change engine company staffing

No indicated improvement in functioning or public safety by increasing the minimum staffing level and doing so has significant ongoing costs to the City

• Staff ambulances with two persons instead of the current three Savings of $1.4 million for a reduction of 27

employees

Public Safety (Cont.)

Police• Adopt the International Association of Chiefs of

Police (IACP) workload patrol staffing standard as minimum standard Assign a minimum of 14 additional officers to the

patrol function to meet IACP minimum patrol staffing

• Reclassify division positions filled by sworn staff not requiring the use of police powers to civilian classification

Department of Social Services

Adult Services

Family Services

Youth Services

Social Services

Office of the Commissioner• Relocate the Partners for Youth Program from

the Mayor’s Office to the Department of Social Services

• Eliminate Multi-Cultural Affairs Coordinator position

• Add a Deputy Social Services Commissioner

Social Services (Cont.)

Family Services• Examine the feasibility of partnering  with the

Fayette County Health Department to manage health clinic operations

Youth Services• Explore the feasibility of transferring operational

responsibility for the Day Treatment Center to the Fayette County Public School District

Transfer of operations could significantly reduce current expenditures of an estimated $400,000 to $600,000 per year to operate the facility and debt service of $5.3 million

Mayor and Advisors

Mayor and Advisors

Chief Information Officer• Incorporate a property-based customer

relationship management module into the specifications of the development review system being evaluated for implementation in the Building Inspection Division

Mayor and Advisors (Cont.)

Chief Information Officer• Redesign the website with a focus on the

consumer’s interests and perspectives, providing clear navigation tools and effective help

• Investigate use of Citizen Resource Management (CRM) module provided by the major permit system makers for 311 and other citizen request functions

Mayor and Advisors (Cont.)

Office of Policy and Budget• Implement a biennial budget process• Implement a detailed capital planning process

for development of a multi-year capital budget

Conclusion

• Using this report as a roadmap, the City can begin to reformulate and modernize the way it does business, improve operations, services and financial position by:

Adopting a City-wide and department level strategic plans

Implement performance measures Investing in information technology

Conclusion (Cont.)

• Adopting market-rate fees and having a policy of full cost recovery

• Moving to a biennial program budget• Reducing the time to hire new staff• Streamlining the organization structure, clarify

mission and purpose, consolidate like functions, eliminate unnecessary management layers

• Staffing public safety operations appropriately• Eliminating under-utilized fleet

Questions

It has been a pleasure to work with

Lexington staff on this project.

Jerry Newfarmer and Julia Novak

jnewfarmer@managementpartners.com

www.managementpartners.com