Park district tests new management tool

Contract maintenance may be a way for your agency to provide more services for less money.

By Thomas M. Kalousek

As the public demands a reduction in government spending and agencies try to provide services within limited resources, park districts are searching for ways to respond.

Contracting for maintenance services is a tool which management should consider. It can enable an agency to acquire flexibility, obtain specialized services or skills and cut costs or reallocate resources for other services.

The Rockford Park District has been using contractual grounds maintenance for the last four years. In 1985, our 111 park sites, equaling 640 acres, were maintained by eight grounds maintenance contractors. These contractors ranged in size from "mom and pop" operations to established contractual maintenance firms.

The grounds maintenance contracts for 1985 totaled $171,862, or an average seasonal cost of $268 per acre. The cost for contractual maintenance in 1984 actually decreased 18 percent from 1983. In 1985, we experienced a one percent increase, and we expect increases to average about two percent this year.

Contract maintenance works for us, but it may or may not work for you. As professionals, we must constantly examine what we do and how we do it.

Cost effectiveness

The district's decision to contract for grounds maintenance was based on the theory that open competition would result in lower prices. We are not in a position to identify every cost related to in-house maintenance. However, our study of personnel costs, materials and supplies indicated a significant savings when we contracted maintenance for park grounds. At the end of the 1983 season, we had saved about $109,000 for use in other areas.

The use of contract maintenance enabled us to cut personnel costs dramatically. We reduced the number of seasonal employees from 70 to 35 and eliminated five full-time positions. The savings in wages and benefits exceeded the entire contract maintenance budget during the first year. This is an impressive example of "doing more for less."

Impact on management

The change from in-house to contract maintenance also brought about some changes in our management approach. Managers and supervisors had to switch their emphasis from managing a maintenance process to achieving a desired end product. Our employees had to switch their perspective from the methods and techniques of how to do the work to ensuring that contractors produced the desired result.

Illinois Parks and Recreation 9 January/February 1986

We initially perceived that contract maintenance would reduce our control over maintenance functions, and therefore, it was somewhat threatening. What we have found, though, is not a loss of control, but rather a shift of control to a different level. Through the writing of bid specifications and monitoring of park sites, management now controls the end product. It can leave the procedural details (and problems) to the contractors.

Flexibility

The park district staff originally thought that contract maintenance would also result in a loss of flexibility. This did not prove to be the case, as our bidding process netted a variety of contractors.

We design our bid evaluation process to include both price and experience as weighting factors. A certain level of experience and equipment are prerequisites for the larger and more difficult parks. A less stringent standard is used for the one-block neighborhood parks.

By dealing with several small community-based contractors, we are able to assign additional work when needed. We also specify a two-week written notice of contract termination by either party in the bid documents.

This termination serves two purposes. First, it gives us flexibility in responding to a contractor who cannot handle the contractual commitment. Secondly, it leaves us an option for budget control. For example, if the district budgeted for a new contract program, such as roadwork maintenance, and a more pressing problem emerged, we would be able to completely revamp our plans and "free up" funds for the priority project in two weeks.

If the park district decides to contract out more maintenance functions, it will also have the option to reduce costs for equipment replacement and repairs. The lowered usage requirements would result in lower repair costs, and additional savings could be realized by selling equipment that is no longer used.

However, there is another factor to consider if and when we get to that point. To protect our flexibility we have to keep some options open. For that reason the park district does not contract all of its grounds maintenance. We retained some personnel and equipment to provide a contingency if a contractor fails to perform. Moreover, we did not want to become dependent upon a contractor or contractors.

Service expansion

One of our goals was to provide the kind of recreation and leisure services our citizens want, not demand. It was our experience that people would expect that grass be cut, weeds be removed, garbage be emptied and rest-rooms be cleaned. Our employees, while conditioned to this type of maintenance, were certainly more skilled and experienced overall.

Our intention was to change the role of our employees from the doers of work to the facilitators and providers of services. After four years of contract maintenance, we have reallocated our financial and personnel resources to provide more direct community services in a form that people want and appreciate.

Illinois Parks and Recreation 10 January/February 1986

For example, we have provided a higher level of playground safety inspection and repair. We have expanded our support services by 50 percent to community groups and cosponsors by providing bleachers, snowmobiles and picnic tables for use in community events. Also, we have provided greater athletic fields and recreational playgrounds because we have not been tied down with routine maintenance tasks.

During the last three years, there has been a higher level of continuity in the routine grounds maintenance services. This has produced an improved image of care and concern for neighborhood parks. In exchange, park district employees are able to provide more recreational services as opposed to routine maintenance.

Conclusion

Management needs to view contract maintenance with an open mind. It is intended to be a tool for acquiring flexibility, obtaining specialized services or skills, and cutting costs or reallocating resources. It is not a "cure-all" for every agency.

It can provide dramatic results in cutting personnel and equipment costs, but gaining budget control may lead to trade-offs that go against the agency's goals in other areas. The Rockford Park District started this program expecting negative results in quality control and flexibility, but found that both actually improved.

Our experience has been encouraging, but there are a few kinks to iron out. We continue to change our specifications and develop a positive relationship with our contractors. We have not yet had to terminate a contract based on poor performance by a contractor.

Our staff is studying new areas that will lend themselves to contract maintenance in an effort to expand this program. Based on the cost effectiveness, quality control and flexibility gained, the Rockford Park District considers contract maintenance to be an excellent tool for "doing more for less."

ABOUT THE AUTHOR: Thomas Kalousek is superintendent of park services for the Rockford Park District.

Illinois Parks and Recreation 11 January/February 1986