In 2014 the Elkhart County Highway Department underwent a major reorganization that included a reduction in work force and outsourcing certain maintenance functions. Join us to learn what Elkhart County has experienced from the challenges and benefits of outsourcing

Taylor, Jeff

Yoder, Mike

English

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Experiences from Elkhart County HighwayMike Yoder, Elkhart County CommissionerJeff Taylor, Highway ManagerScenario Driving Decisions Extreme winter stress of 2013-14 had taken its toll on employee morale. Economic downturn reduced income Expenses continued to rise Unusual winter exceeded budget 2013 MVH Income - $4,287,357 2013 MVH Budget - $5,084,904 Difference – ($797,547)Additional Factors 2014 MVH Income - $5,126,391 2014 MVH Budget - $5,786,645 Difference ($660,254) Decided to reorganize the business model All  aspects of maintenance operations were audited for efficiency Measured costs and productivity All decisions were data driven to improve efficiencyWork Data Gathered/Analyzed Mechanics/Garage/Shop work Snow Plowing (subdivisions and main roads) Equipment utilization: Street sweeping Catch basin cleaning Excavating (culverts, ditch work, etc.) Chip seal Roadside mowingResults of Study Equipment underutilized – Gradall, grader, etc Plowing service to subdivisions not timely and quality of plowing unacceptable. Equipment/vehicle repair – quality and quantity unacceptable. Identified potential cost savings through outsourcing.Overcoming Perceptions Outsource certain work functions  Just because we “can” do it doesn’t mean we should.   It may cost more “in house”. Reduce work force (layoff or release)Treat Employees Courteously Took employees to another building to explain being released Provided 2 weeks severance pay Did not contest unemployment benefits Willing to give good reference Provided information on benefits and insurance Vacation was paidEngage Officials In Decision Making Commissioners Attorney Personnel Department Council County Administrator Build a consensus and ownership in decisionsPrepare for the Fallout  Media Television Comments by officials – “dead wood” 3 EEO filings Former employees appearing at meetings Stay focused – stay the courseSummary of Operational Changes Snowplowing subdivisions - $60.00/Hour Roadside mowing – $20.00/mile Main roads plowing - $80.00 -$160.00/hr. Work release – untapped resource Outsource shop - $300,000 + savings Excavating - outsourced Auctioned underutilized equipment -$88,474  Today’s balance $40,831.562013 vs. 2015 MVH 2013 2015    Difference Total $4,494,834 $3,627,476 -867,358(includes 3% raise for employees) LRS 2013 2015 Difference Total $1,136,400 $1,128,400 -8,000 CBF(1135) 2013 2015  Difference 1135 $   488,585 $   325,873 -162,712 2013 v. 2015 Garage/Shop/Fleet Maintenance Personnel Budget 2013 5 $1,082,981.84 2015 0 $   631,600.95  Difference -5 $   451.380.89  (savings in shop) 2015 Additional Appropriations for road maintenance paving - $1,050,0002013 vs. 2015 Personnel Summary (Includes MVH & CBF) Positions 2013 2015 Labor/Drivers/Formn 53 30 Mechanics 4 0 Office/Clerical 4.5 3.5  Mgmt/Supervisory 9 2 Engineers/Technicians 7 7 Total Employees 77.5 42.5 Commissioners/Political Commissioners own the decision  Develop strategy for County Council Inform entire County Council at same time as plan is implemented with employees  Media contacts: Commissioners, not staff Ensure a consistent message to publicSummary Outsourcing may or may not be suitable in your county. Determine inefficiencies in operations Consider the political consequences Build a consensus with others Make the tough decisions Reevaluate the effectiveness and adjust Ignore the noise!

Outsourcing Maintenance Operations: Experiences from Elkhart County Highway

https://docs.lib.purdue.edu/cgi/viewcontent.cgi?article=4064&amp;context=roadschool

Outsourcing Maintenance Operations: Experiences from Elkhart County Highway

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