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Tuesday, June 26, 2012

CONSULTANTS: ELIMINATE POSITIONS, CONSOLIDATE SERVICES

THE RIVER CITY NEWS MORE COVINGTON NEWS THAN ANY OTHER SOURCE
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by Michael Monks 
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Jerry Newfarmer of Management Partners
The City of Covington could save upwards of $3.2 million if it adopts fifty-nine recommendations set forth by Management Partners, the Cincinnati-based consulting firm hired to review each department at City Hall, including police and fire. Many of the recommendations would be dramatic departures from the way the City has conducted business for decades and the way citizens have expected services to be performed. "Achieving these goals will take extraordinary leadership, they will not be easy to do," said Management Partner's Jerry Newfarmer, the former city manager of Cincinnati. 
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Among the recommendations are the privatization of ambulance services, browning out another piece of equipment in the fire department, eliminating the rank of captain in the police department, and possibly outsourcing the tasks performed by the city's code enforcement department. Mayor Chuck Scheper invited The River City News (and a reporter from the Cincinnati Enquirer) to his office Tuesday afternoon to preview the recommendations. "It's a lot to digest and discuss but we promise that this report will not gather dust," Scheper said. "In the next thirty to sixty days, we will create an opportunity to discuss these recommendations in more depth. Which ones can we implement now? Which ones can we tweak?" Scheper said those public discussions will be scheduled in the coming days. 
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Conducting the departmental reviews was part of Scheper's 10-point plan and he pledged half his salary to pay for it. That roughly $15,000 will put a small dent in the estimated $130,000 price tag and Scheper is working to find partners in civic organizations to make up the deficit.
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DRAMATIC RESTRUCTURING OF COVINGTON FIRE DEPARTMENT
"The current financial model of the City and fire department is not financially sustainable," Newfarmer warned. "We need to find ways to help the City address that problem." Newfarmer recommends that City issue a request for proposals from private ambulance services to handle EMS in Covington. "We see it as the single most significant opportunity for cost savings the City has," he said. "We don't know what any savings would be, we can only estimate." The estimate that Management Partners came up with is $1.5 million in savings, the exact same amount EMS currently costs the City annually.
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But if a proper private contract could not be attained, another option would be to create a new department within the City but outside the fire department. Newfarmer says that move would eliminate hazardous duty pension contributions, reduce personnel by changing to eight-hour shifts (currently many of Covington's approximately 119 firefighters serve dual purposes on EMS runs and work 24-hour shifts with the next 48 hours off), while also reducing the number of ambulances between the hours of 2:00AM and 7:00AM. Those moves would save the City $500,000 according to Newfarmer.
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Meanwhile, the long-awaited new firehouse in Botany Hills would likely never happen if the recommendations are adopted. Management Partners calls for closing the antiquated firehouse in the neighborhood formerly known as West Covington and also closing the main fire station on East Robbins Street. Newfarmer suggests a new firehouse that would consolidate the ones proposed for shuttering with a location to be determined in the Downtown area. 

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Additionally, a quint fire truck would be browned out and two staff positions would be eliminated (likely through attrition) which could save $800,000 annually. On a larger scale, Newfarmer recommends the exploration of a regional fire department in which Covington leads the way. "I would encourage the City of Covington to take the lead on that. A major advantage Covington brings to the table is the professionalism of its fire department," he said.

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There is much more below, click the link!


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POLICE DEPARTMENT
Mayor, Commissioners, and city staff
listen to Newfarmer
Newfarmer reiterated support for the elimination of Covington's 911 emergency dispatch center which will be taken over by Kenton County likely in the fall. Management Partners conducted study a few years back when that merger was first being fully explored. As for the police department, the consultants recommend streamlining the management team. Twelve positions, or eleven percent of the entire staff, are reserved for management positions. The rank of captain would be eliminated while two assistant chief positions open up where currently there was just one. Moreover, Newfarmer believes that $437,000 could be saved annually through adopting the CompStat model of service delivery management, rebalancing staffing between midnight and swing shifts, implementing a telephone reporting system for low priority 911 calls (which he says will free up 3,000 hours of patrol time), and the creation of a tactical unit in the patrol bureau encompassing school resource officers, housing authority officers, and other special officers. 
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"What these changes do, taken together, is help the department to focus its resources in a pinpointed fashion at more serious crimes people are concerned about," Newfarmer said.

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CODE ENFORCEMENT, HOUSING AUTHORITY, COMMUNITY DEVELOPMENT

Though code enforcement is often cited as a top concern for residents, and through multiple city leaders have expressed the need for a city-wide housing strategy, and though community/economic development is the city's most pressing priority after the budgets, this portion of the presentation was presented vaguely and quickly. 
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"Covington is an older city and older city with its housing stock has a different set of problems than a new city," Newfarmer said. "Properties tend to deteriorate over time and this ought to be a major concern for Covington." But instead of the current way those deteriorating or neglected properties are handled, Newfarmer's team recommends outsourcing the job of code enforcement, either to a regional quasi-governmental agency or through the creation of a regional consortium. Or, reduce in-house employees to part-time. Through those moves, Newfarmer promises that code enforcement would be more transparent, systematic, predictable, consistent, and timely.
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There was not much exploration of a housing strategy, just that the City needs one and that it also needs to improve its relationship with the Housing Authority of Covington. As for the reorganization of the community development department, Management Partners recommends adopting the recommendations set forth in the Center City Action Plan that calls for a new umbrella agency outside of City Hall to oversee economic development projects. The overall cost savins are estimated to be $475,000 annually.

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OTHER NOTES

Even City Manager Larry Klein was part of the review. Newfarmer's team determined that Klein has thirteen employees throughout City Hall that respond directly to him. "It is impossible to give the proper balance and attention to important functions of the City," Newfarmer said.
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"Once you get above seven, it's difficult to manage, from my own personal experience," Mayor Scheper said.

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Management Partners recommends that there be some reorganization in the city manager's office that include the merger of the parks & recreation department into a new development department overseen by the assistant city manager.
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Management Partners was the firm hired for consultation when the City created its Department of Public Improvements in 2008, and Newfarmer reports that many of their recommendations four years ago have been adopted. Next, his team turns their attention to the finance department which was too busy with the City's budget to be reviewed with the rest of them. Mayor Scheper added that the legal and human resources departments will also be reviewed but not by Management Partners and instead pro bono by local business executives.

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The powerpoint presentation offered Tuesday night will be available at the City's website Wednesday morning and the full report will be made available when it is completed.

2 comments:

  1. Why people believe you save money to privatize ems services is beyond me! Think about this, the only way to save money is to reduce the number of ambulances, cut supply costs, hire people for minimum wage with no benefits! None of which is a good scenario for Covington!

    ReplyDelete
  2. Firedog: What are you talking about? Don't you know this is the new business model for America?

    ReplyDelete