The city of Spokane is implementing the first wave of recommendationswhich should yield an annual cost savings of about $500,000from the comprehensive efficiency study it ordered last year.


The 500-page, $260,000 study, prepared by Matrix Consulting Group, of Palo Alto, Calif., contains about 275 recommendations that it says could save Spokane as much as $6 million annually and bring in more than $1 million annually in additional revenue.


John Pilcher, the citys chief operating officer and point man for implementing the recommendations, says he doesnt expect that all of Matrixs suggestions ultimately will be enacted.


For instance, the Matrix study recommends reducing the citys work force of 2,000 employees by more than 70 positions.


Were not going to eliminate that many individuals, Pilcher says. The goal is to reduce staff through elimination of vacant positions and voluntary retirement.


So far, about 10 positions, including one vacant accounting position and three vacant garbage collector posts, have been eliminated as a result of the study.


Some recommendations that the city has begun implementing have immediate, measurable savings, Pilcher says. On others, the savings will come later.


Among the recommendations the city is currently putting in place:


The city is consolidating and further automating its trash collection routes and eliminating some alley pickups. Automated pickup speeds up collection by allowing a single driver to use a mechanical arm on a garbage truck to empty trash cans, rather than getting out of the truck to empty them by hand.


The city could save $220,000 annually by using automated equipment on additional selected routes, Pilcher says. So far the city has implemented automated pickup in about half of those routes for an annual savings of more than $100,000.


Meanwhile, alley pickup puts more wear and tear on garbage trucks, and presents a higher risk of damaging private property due to tight-fitting situations, he says. Such pickups are going away across the country, Pilcher says, adding, Were catching up with the state of the industry.


The city would have to charge more for trash pickup if it didnt seek more automation, he says. Alley pickup simply costs more.


The idea of moving trash pickup from the alley to the streets hasnt been universally accepted by residents, Pilcher says. We have to communicate with people to tell them reasons for the changes, he says.


The city plans to pool the departmental funds, rather than keep them in separate accounts, to boost interest income. Pilcher says he expects that consolidation to occur this coming fall.


We have an average of $30 million in various accounts at any given time, he says.


Pilcher says pooling funds and allowing departments to access them as needed will increase interest income from those funds by at least $90,000 a year.


The city already has implemented the studys recommendation to issue more traffic citations.


The Matrix study recommended that police issue at least 48,500 vehicle citations annually, nearly 70 percent more than were issued in 2005. That increase would generate $57,000 to $280,000 in additional revenue per year, while also encouraging compliance with traffic regulations, the study says.


Theres been an increase in revenue, Pilcher says. I dont think its at that level, but we have to look at that over time.


The city expects to centralize its accounting system by the end of the year, says Pilcher. Currently, city departments have their own accounting divisions with a total of about 70 separate accounts.


Each accountant is vested in parts of the city organization that they work for, Pilcher says. Their allegiance is more to the operation and success of a group than the whole.


Under a centralized system, accountants would report to the citys chief financial officer.


Pilcher says he cant estimate the savings for centralized accounting. I dont know all of the budgets, but I think centralized accounting would have a significant savings and be more efficient for the taxpayer, he says.


The city hopes to control rising employee-benefit costs, but will need to get such savings approved through collective bargaining with its employee unions. The city has approved contracts with two of the citys smallest unions with provisions that employees now pay a portion of their medical insurance premiums.


That represents a modest savings Pilcher says, but its too early to comment on whether the city will realize similar savings through negotiations with other unions.


The city has begun to reduce its fleet of 1,500 vehicles by 10 percent. It has compiled a list of 75 vehicles, or 5 percent of the overall fleet, for a potential phase-out.


The savings depend on the vehicles were getting rid of, says Pilcher. They are probably the ones least used or fully depreciated. He adds that the fleet reduction will save thousands of dollars in maintenance and storage costs.


The city plans to make 20,000 public records available on a searchable computer network that will be accessible by the public.


We spend a lot of time complying with public records requests, but we dont have a great index system to access records, he says.


In a high-profile case, a data base of public records thats available to the public could save the city thousands of hours that city staff would spend looking things up.


The city began in May implementing an over-the-counter permitting system process through which applicants for a basic building permit can receive the permit during a single appointment.


That may not be easy to put a dollar value to, but from a customer standpoint it provides much greater efficiency, Pilcher says.


The city is increasing its cross training, particularly with personnel who handle taxes and licenses, so employees can switch tasks according to the workflow.


We can give better service using existing resources more efficiently, he says. In a way, thats providing more resources.


Pilcher says hes confident that the city will soon realize the initial savings goal of $500,000 annually, adding, Were halfway there.


The search for potential savings wont end there, he says.


By the end of the year, we will have identified $1 million in savings, and I think we will be on our way toward implementation.


Contact Mike McLean at (509) 344-1266 or via e-mail at [email protected].