HomeMy WebLinkAboutAgenda - 10-02-1995 - IX-A r
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ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No ZX_A
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 2 , 1995
SUBJECT: Customer Service, Innovation, and Efficiency Study
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DEPARTMENT County Manager PUBLIC HEARING YES NO X
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ATTACHMENT( S) INFORMATION CONTACT
Examples of Recent Innovation/ County Manager, ext 2300
Efficiency/Cost Saving Measures TELEPHONE NUMBER
Customer Service Survey Benefits/ Hillsborough 732-8181
Constraints Chapel Hill 968-4501
Examples of Results from Lincoln County Mebane 227-2031
Survey Durham 688-7331
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PURPOSE: To discuss and provide direction to staff on an approach to
pursuing a study of customer service, innovation, efficiency, and cost
savings in Orange County government services.
BACKGROUND: At the September 5 meeting, the Board of Commissioners
directed the County Manager to pursue a two-pronged effort to involve
citizens in a well-defined review of opportunities in Orange County
government for: additional efficiency, innovation, and cost savings
improvements; and a targeted survey of citizen perspectives on Orange
County customer service quality. The Board asked the Manager to
consult with department heads for suggestions about the best ways for
undertaking these efforts, to seek assistance from the North Carolina
Institute of Government ( IOG) staff in conducting these efforts, and to
bring the topic back for further Board discussion and decisions on
involving citizens in the review process .
The Board also indicated a desire to undertake the review of
efficiency, innovation, and cost savings, and to try to complete that
in the short-term. The service quality/customer service portion of the
study would require more time to complete.
Efficiency and Innovation Study
In recent years, County departments have implemented many initiatives
to reduce the cost of providing services to our citizens. A suggested
focus for the citizen committee on efficiency/innovation would be to
look for additional opportunities for these kinds of improvements . The
budget directive to County departments for the past five years has been
to submit budget requests with no increase for operations , unless those
expenditures were uncontrollable ( such as the County' s match for
Medicaid) . To accomplish this directive, with work load demands
increasing and annual inflation increases of about three percent,
departments have found numerous ways to reduce costs; to provide more
efficient service; or to reallocate existing personnel and operating
resources to higher priority services . Examples of some of these
initiatives are listed at Attachment 1 of this abstract.
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Of the County' s $73 million annual budget, a comparatively small
portion is allotted for County operations ( excluding costs for
personnel , schools , debt service , capital facilities and equipment , and
outside agencies) - around $10 million, or about 14 percent of the
total general fund budget . Of this $10 million, just over $4 million
is budgeted for public assistance programs in the Department of Social
Services. The balance, around $6 million, which represents
approximately 8 percent of the total general fund budget, is left for
County operations . while additional opportunities for efficiency and
innovation in County operations will undoubtedly be identified, perhaps
an important focus of the study should be a review of opportunities to
reallocate existing personnel or operating resources from services
perceived by citizens as lower in priority , to those of greater import .
Jack Vogt of the IOG has agreed to work with the County on the
efficiency/innovation study and to provide help and guidance to the
citizen committee as it conducts its review. The Manager proposes that
the efficiency/innovation committee be charged with delivering an
interim report of results to the Board of Commissioners by April 16 ,
1996 . Recommendations stemming from that report could be considered as
part of the 1996-97 budget process , with a final product timetable
established sometime later.
Customer Service Study
At a September 8th meeting , department heads discussed the benefits and
constraints which should be considered by the Board in determining how
to proceed with the customer service study. Attachment 2 outlines the
major themes from the department head discussion. Perhaps the most
significant will be recognition that the study represents a substantial
outlay of time and effort that will require a commitment to this as a
priority over an extended period.
Beyond the commitment to complete the study, another key theme was the
need for commitment required of the entire organization to follow
through on opportunities for improvement identified by citizens. This
will be vital to the overall success of the study. Incorporating
outcomes determined on a department-by-department basis into future
departmental workplans will provide a supportive structure for the
necessary follow-through.
Roger Schwarz and Peg Carlson of the IOG have agreed to work with the
County and citizen committee to fashion a service quality survey
similar to one they developed earlier for Lincoln County. The service
quality study contemplated would involve a survey of Orange County
citizens and employees that would focus on six to eight dimensions of
service quality . In the Lincoln County study, these dimensions
included: convenience; security; reliability; personal attention;
problem solving approach; fairness; fiscal responsibility; and citizen
influence . Examples of some of the findings from Lincoln County are
included as Attachment 3 .
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One of the most important aspects of the service quality study is to
identify gaps, if any, between what employees think citizens will say
they receive in terms of service quality in various dimensions; what
citizens say they receive in those dimensions; and what citizens say
they expect to receive in those dimensions . The larger purpose of the
service quality study will be served by identifying, examining , and
implementing organizational changes that can close those gaps in the
future. Given the complexity of this project , and depending on the
time needed to complete the efficiency/innovation review phase,
the Manager recommends that a minimum of 12-18 months be allotted for
completion of the service quality study.
Citizen Committees
The Manager recommends that the Board appoint two separate committees,
that could potentially meet together on several occasions (on an as
needed basis ) to share information that might be beneficial to the work
of the other committee. The Manager recommends that the Board include
a number of employee representatives on the committees to assist the
citizen appointees in gaining a broader perspective of how Orange
County departments currently conduct business . One approach would be
for the Board to appoint two 15 member committees, with 9 citizen
appointees designated by the Board and 6 employees ( representing a
cross-section of 2 first-line workers , 2 supervisors, and 2 department
heads ) designated by the Manager . Selected staff from the Manager' s
Office, Budget, and Personnel would provide staff support to the
committees throughout the process.
Part of the charge to the committees should be to develop specific
definitions of the terms "innovation" , "cost savings" , "efficiency"
and "service quality" as these pertain to this study effort. The Board
should also consider defining the scope of the review expected of the
committees . The Manager recommends that the committees pursue their
reviews from a broad perspective, and that the efficiency committee
particularly limit its focus on the line-item level of detail . A
major part of the focus should also be on how resources or priorities
could be redirected, rather than on specifically reducing service
levels .
The Board may wish to consider making appointments to the citizen
committees at this meeting, or postpone that portion of the decision
process to the next regular meeting on October 17 . Staff is prepared
to begin work immediately with the Institute of Government consultants ,
consistent with the Board' s direction.
RECOMMENDATION: The Manager recommends that the Board discuss the
proposed course of action for a two-pronged review of efficiency, cost
savings, and innovation opportunities , and of customer service quality;
and provide appropriate direction to the Manager and staff for
beginning this effort.
ATTACHMENT I
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Selected Examples of Cost Saving/Efficiency/Innovation Initiatives
Implemented in Recent Years
1 . Consolidated the 21 unattended greenbox sites to 6 staffed
solid waste collection sites . This initiative has reduced the tonnage
deposited into the landfill from County solid waste containers by
roughly 50% , at an annual savings in tipping fees of more than $200 , 000 .
2 . The installation of the County-owned telephone system about four
years ago caused a dramatic decrease in the call volume of the
switchboard. Although it is still necessary to maintain two switchboard
operator positions, these employees are now able to also support County
departments by running large photocopy jobs and the County print shop.
3 . The Finance Department initiated a new procedure for processing
accounts payable. County departments enter requests for payment on
computer diskette. This information is verified by the Finance
Department and is then uploaded to the accounting system. This new
procedure eliminates double keying of vast amounts of data.
4 . Orange County EMS has initiated a pilot program involving single
paramedics using Quick Response Vehicles (QRVs) to provide initial
response to most calls for an ambulance. Paramedics respond with
Advanced Life Support capabilities , treat the patient at the scene, and
refer or call for an ambulance if necessary. If fully implemented upon
completion of the pilot phase, this service delivery approach could free
up considerable EMS staff time to focus on other aspects of patient care
that will improve overall patient outcomes.
5 . The Planning Department reduced their $9, 000 advertising budget by
nearly $4 , 000 , a 40 percent reduction. Planning staff analyzed
advertising by other jurisdictions and suggested changes to County
advertising practices that meet the requirement of the law while
continuing to inform citizens appropriately on planning issues .
6 . Eliminated the use of temporary property tax listers formerly
stationed in various locations throughout the County' s seven townships .
This initiative saves about $18 , 000 each year.
7 . An example of efficient coordination between jurisdictions is the new
fueling site being constructed as part of the Motor Pool project . The
County negotiated with the Town of Hillsborough to jointly use the
County' s new fueling site . The Town will contribute $43 , 540 to help
offset construction.
8 . Various cost saving initiatives at the Jail have been implemented:
(a) The Sheriff installed a pay-tel telephone system, which allows
inmates to make outgoing collect telephone calls. This initiative
generates around $17 , 000 per year in revenue returned to the County .
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(b) The Sheriff took over the canteen operations for the jail . This
function had previously been provided by an outside vendor. The canteen
is expected to generate a net profit of around $30 , 000 annually.
(c ) In lieu of adding a Deputy position to meet the work load demands in
the Jail , a custodian position was approved by the Board of
Commissioners . This relieved the sworn officers from many of the general
custodial duties and frees their time to tend to more pressing jail
needs .
9. Eliminated service contracts on certain equipment not heavily used.
This included office equipment, such as typewriters , which had in the
past been maintained under service agreements . To pay for repairs of
equipment if necessary, funds were budgeted to repair equipment on an
as-needed basis. By eliminating these contracts, the annual savings
could be as much as $22, 000 .
10 . The Emergency Management Services department analyzed the telephone
line usage to determine if any emergency phone lines could be
eliminated. Certain dedicated ring-down lines were eliminated and a
number of dedicated administrative lines were consolidated. The annual
costs savings is about $5 , 000 .
11 . The Department on Aging negotiated a deal with the Durham Herald to
publish and underwrite distribution of The Senior Times, a bi-monthly
publication. This initiative not only increased circulation of this
publication, but also saves nearly $16 , 000 per year in publication and
distribution costs .
12 . By expanding the transportation system to a public transportation
system for rural Orange County, the County became eligible for Federal
Section 18 funds, totaling nearly $90 , 000 each year.
13 . The Data Processing Department explored various options for providing
equipment maintenance. The result was a third .party agreement for
maintenance for the McDonnell-Douglas mainframe computer. By using in-
house staff for equipment repairs with assistance by the third party, the
savings were reallocated to pay for the new RS6000 computer. Annual
maintenance was reduced from around $70, 000 to about $11 , 000.
14. Various automation efforts have allowed the County to provide more
efficient services in many areas . Some examples include: (a) Master
Client Index project; (b) Optical Imaging Project in the Register of
Deeds Office; (c ) Applicant tracking system in Personnel ; (d) The budget
development and capital improvements plan system; (e) Geographic
Information Systems; ( f) Records system in the Sheriff' s Department
(Visions ) ; (g) the State' s automated collection tracking system (ACTS) in
Child Support Enforcement; and (h) Electronic Mail , which is being
implemented in all County Departments.
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15 . In May 1994 , the Board of Commissioners approved an EMS franchise for
Johnston Ambulance Service, a private ambulance provider . This
initiative allowed the County to discontinue providing convalescent
transport service, which allowed limited resources to be to redirected to
higher priority aspects of emergency medical services.
16 . The County began purchasing modular ambulances, with the chassis and
ambulance box as two separate components . This initiative allows the
County to refurbish, not replace, ambulances after approximately 150 , 000
miles . The cost of replacing the chassis only is about $16 , 000 , instead
of $65 , 000 to $70 , 000 to replace the entire ambulance.
17 . The County routinely uses cars that the Sheriff ' s Department has
taken out of service. These vehicles can generally give an additional
50 , 000 miles of service when reallocated to other departments before
being sold at auction.
18 . Redesigned the merit pay plan to include performance awards as a one
time payment which do not become part of base annual salary. When
compared to the previous merit pay plan, this change is estimated to save
$1 .7 million over a five year period.
19 . Implemented two Incentive Programs: the Savings Count program, which
is an employee suggestion program; and the You Can Count on Us program,
which is a team achievement awards initiative.
20 . Completed a comprehensive review of the employee health insurance
plans to identify cost saving options for Board of Commissioners
consideration, providing potential cost savings in the range of $160 , 000
to $330 , 000 .
21 . Through enhanced management and education on Federal wage-hour
requirements and implementation of the Federal Fair Labor Standards Act
Section 7 (k) exemption in Emergency Management Services, reduced annual
costs for overtime pay by approximately $100 , 000 for 1994-95 .
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ATTACHKENT II
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Customer Service Survey
Benefits
1. Enables the County to identify where to place its energy as an organization in
providing more effective customer service.
2. Gives a broad, County-wide perspective on citizen perception of service quality.
3. Provides objective, factual information of citizen perceptions of Orange County
service quality and helps the County to see services from the perspective of the
citizen.
4. Educates citizens about Orange County services and the importance the County
places on customer service.
5. Follows through and builds on the County's on-going customer service initiative.
Constraints
1. Does not provide information as to what the County needs to do; that is, how to
close the service quality gaps.
2. May raise expectations on the part of citizens and employees which cannot be met
or met in a timely way. Requires the County be clear about what it is going to do,
and how the information will be used. Beyond this,requires that the County
follow through and act on the survey results.
3. Requires excellent survey design and timing to assure validity; that is,the survey
is measuring what it is intended to measure.
4. Will not tell the County if it is providing the right services.
5. Requires considerable investment of staff time to complete the survey and follow
through on results. In turn,this requires the County make a commitment to this as
a priority over an extended period.
ATTACHMENT III
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Lincoln County Government Employee Feedback Handout
Service Indices - About Organization
El Employees Predict 0 Citizens Receive ❑Citizens Expect
4 4.1 4 4.1 4 4.1 4
4 3.6 3.4 3.7 F-7 3.5 .3..5 38 3.2 3.5 3.1 3.3 3.1 3.7
3
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4
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5
3 2 27 3,1
.7 .... 2.7
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.... 2.4
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... .... .... ....
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... .... ....
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... .... ....
2 .... .... ....
... ... ...
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Convenience Security Reliability Personal Problem Fairness Fiscal Citizen
Attention Solving Responsibility Influence
Approach
Index Descriptions:
Convenience - providing services that are easily accessible Problem Solving Approach -providing services by working
and convenient with citizens
Security- providing services in a way that makes citizens Fairness- providing services in a way that is fair to all
feel secure and confident
Fiscal Responsibility- providing services in a way that uses
Reliability- providing services reliably and accurately money responsibly
Personal Attention-providing services in a way that is Citizen Influence-providing services in a way that
personalized, courteous, and attentive citizens can have influence in how the service is
delivered
Organization 61
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Lincoln County Government Emp{oyee Feedback Handout
Which of the eight indices is most important to citizens? - About Organization
Employees' responses: Citizens' responses.:
Fiscal Fiscal
Responslblllry Responsibility Citizen 2oX citizen
27% Influence
47. Influence
2%
Convenience
9% Convenience
13%
Fairness
26%
Fairness
Security �
16% 12'/.
i Securtty
9%
Problem Reliability
Solving Personal 14% Problem ReI15X lty
Approach Attention srt Personal
12% 6% Approach Attention
Index Descriptions:
Convenience- providing services that are easily accessible Problem Solving Approach-providing services by working
and convenient with citizens
Security- providing services in a way that makes citizens Fairness- providing services in a way that is fair to all
feel secure and confident
Fiscal Responsibility- providing services in a way that uses
Reliability - providing services reliably and accurately money responsibly
Personal Attention-providing services in a way that is Citizen Influence-providing services in a way that
personalized, courteous, and attentive citizens can have influence in how the service is
delivered
Organization 62
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Lincoln County Government Employee Feedback Handout
Convenience Index
Examples:
(employees predict) *Citizens in Lincoln County believe that. . .
(citizens receive) 1 believe that . . . . . . Lincoln County provides services at hours that are
(citizens expect) 'In order to be satisfied, I expect that. . . convenient to all of its citizens.*
About Organization
strongly agree 5
4
agree 4 3.6
RMISISSERM
neither agree 3 ., 2.7
nor disagree
...........
...........
...........
..........
..........
disagree 2 -
...........
...........
...........
...........
...........
strongly disagree 1
Employees Citizens Citizens
Predict Receive Expect
Organization 53
Employees Citizens Citizens
Predict Receive Expect
Convenience Index Questions Ora• Ora• OM
Lincoln County has locations that are convenient to all of its
citizens. 2.7 3.8 4.0
. . . they can find a parking place when they visit a Lincoln County
office. 2.0 3.3 3.9
. . . Lincoln County employees help them without their having to
give employees the same information again and again. 3.0 3.6 4.0
Lincoln County provides services at hours that are convenient
to all of its-citizens. 3.0 3.8 4.1
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Lincoln County Government Employee Feedback Handout
Fiscal Responsibility Index
Examples:
(employees predict) 'Citizens in Lincoln County believe that. . .
(citizens receive) 'I believe that. . . . . . Lincoln County government spends money responsibly.'
(citizens expect) 'In order to be satisfied, I expect that. . .
About Organization
strongly agree 5
4
agree 4
3.1
norther agree 3
not disagree
2.4
disagree 2
strongly disagree t
Employees Citizens Citizens
Predict Receive Expect
Organization 59
Employees Citizens Citizens
Predict Receive Expect
Fiscal Responsibility Index Questions Org• Ora. Orq.
. . . Lincoln County government spends money responsibly. 2.4 3.1 4.0
Lincoln County government provides its services without
wasting money. 2.4 3.1 4.0
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