Lexington-Fayette Urban County Government

1. Lexington-Fayette Urban County Government Organizational Review Project Report

2. 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…

3. 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

4. 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

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

6. 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

7. Corporate Recommendations Recommendations 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

8. 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

9. Department of Finance and Administration Accounting Central Purchasing Revenue Community Development Human Resources

10. 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

11. 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

12. Department of General Services Building Maintenance & Construction Fleet Services Parks and Recreation

13. 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

14. 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

15. General Services (Cont.) • Parks and Recreation (cont.) • Close underutilized facilities

16. Department of Law Risk Management Corporate Counsel and Litigation

17. 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

18. Department of Public Works and Development Engineering Streets, Roads and Forestry Traffic Engineering Historic Preservation Planning Building Inspection

19. 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

20. 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

21. 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

22. 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

23. 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.

24. Department of Environmental Quality Office of Compliance Water and Air Quality Waste Management (formerly known as the Division of Solid Waste)

25. Environmental Quality Office of Compliance • Transfer environmental management duties of Division of Environmental and Emergency Management to the Department of Environmental Quality

26. 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

27. 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.

28. 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

29. Department of Public Safety Code Enforcement Community Corrections Enhanced 911 Environmental and Emergency Management Fire and Emergency Services Police

30. Public Safety Code 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

31. 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

32. 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

33. 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

34. Department of Social Services Adult Services Family Services Youth Services

35. 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

36. 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

37. Mayor and Advisors

38. 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

39. 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

40. 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

41. 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

42. 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

43. Questions

44. It has been a pleasure to work with Lexington staff on this project. Jerry Newfarmer and Julia Novak jnewfarmer@managementpartners.com www.managementpartners.com