MSD Executive Director Bud Schardein announced that, with a second
round of lay-offs and further cuts to outside consultants made
today, the agency has reached mid point in its goal to reduce
costs by $10 million. Since his appointment to head the sewage and
drainage utility in 2003, Schardein has pushed a wide variety of
measures to increase efficiency and eliminate unnecessary
spending. The changes are designed to keep MSD’s rates for sewage
and drainage services among the lowest in the country.
“We had to get lean quickly if we
wanted to keep our rates low,” Schardein said, “without losing the
muscle we need to get the work done. So we’ve looked hard at every
position in the agency and asked ourselves ‘does this position
contribute to doing the job of building sewers, improving drainage
and eliminating flooding?’ If the answer was no, we eliminated the
position.” No positions have been eliminated in the front line
maintenance and operation forces.
The process of reorganizing and
downsizing began last October when MSD laid off 19 employees and
permanently eliminated 29 vacant positions, and told remaining
employees to expect further cuts. Those cuts continued today as
seven positions were eliminated and more consultants were let go.
Schardein cited several other
measures taken over the past two years that have helped minimize
the number of layoffs. Cost of living increases have been
suspended indefinitely, and all temporary employees have been laid
off. Professional services contracts with engineering firms for
design and construction management have been drastically reduced
and the work redistributed to MSD employees. Restrictive policies
on take home cars, deep cuts to travel expenses, and strict
inventory controls on MSD equipment have been implemented, while
improved procedures for billing and collection of drainage fees
have raised revenues. MSD is also marketing its own fertilizer,
Louisville Green, saving half a million dollars a year in landfill
fees.
Schardein said reorganization
efforts would continue, but said he does not expect further
lay-offs. “There’s only so much more we can ask of our employees.
They have been wonderful and loyal throughout, taking on more work
over the last two years. They understand the challenge to operate
on the same principles that make the private sector work.”
Schardein also credited Metro Mayor
Abramson and the Metro Council for MSD’s success. He cited the
evolving cooperative spirit among all metro service providers as
an example. “Our customers are Metro constituents. They expect the
highest level of service available for their dollar.”
“I think the most painful cuts are
over, but the demand to work smarter and harder is not,” Schardein
said. “We will keep at it, and we will reach our goal.”
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