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State Seal Parks, Department of
 Parks System Transformed In First Six Months
Press Release Date:  July 9, 2004
Contact:  Jim Carroll, (502) 564-8110, ext. 307; Jim.Carroll@ky.gov
 

    It would be no understatement to say that the first half of 2004 has seen a transformation in the Department of Parks.

 

     The department has been reorganized within a new Commerce Cabinet, new senior management has been put into place, and priorities have been developed.

 

     George Ward left a successful hotel-management company in mid-February to take over as parks commissioner. He had a mandate from Commerce Secretary Jim Host to bring commonsense business principles to the Parks Department. Job 1 was developing a list of top management priorities.

 

    "You can't say that you've arrived at a destination if you haven't defined where you are going," said Commissioner Ward. "I was shocked to learn when I got there that the department has operated without stated management goals."

 

    In short order, five priorities were developed. By order of importance, they are to protect the park system's natural beauty, to strive for 100 percent visitor satisfaction, to develop the professionalism of employees, to maintain the park system's facilities, and to reach financial self-sufficiency within four years.

 

     Commissioner Ward said he is pleased by the progress made toward those goals.

 

      Protecting the park system's natural beauty became an issue in May when Ward learned that a farm adjacent to William Whitley State Historic Site was going to be subdivided and auctioned off for housing development only three days later.

 

     In two working days, the department identified emergency funds and, the next day, bought 30 acres of land, thus preserving the rural scenery immediately surrounding the historic site.

 

      The department also moved aggressively to clean up an illegal dump that that was reported to the Department of Parks in mid-2003 at Lake Barkley State Resort. It will cost $500,000 to remove the dump and restore the area.  Upon learning about the problems at Lake Barkley, Ward immediately hired environmental consultants to assess the other state parks.  The study found environmental problems at two other parks - Pine Mountain and Lake Cumberland state resorts. Some other parks have less substantial issues. The price tag for cleaning up the remaining parks could reach an additional $500,000.

 

     Progress has been made in achieving consistent customer satisfaction, Commissioner Ward said. The department already has contracted to provide online room reservations, a service that today's internet-savvy guests have come to expect. The department also will provide customer service training for front-line employees. The private sector has a 60 percent occupancy rate, higher than the park system’s, because of consistent customer service and on-line reservations.

 

     Among initiatives in developing professionalism of employees has been enforcement of an existing dress code and initiating a proper greeting when answering the phone. The department also is taking steps to provide adequate safety training for employees.

 

    "Our worker's comp claims far exceed the industry average," Commissioner Ward said. "I have talked to park managers who have said that they haven't held safety training sessions in years. This is changing."

 

     Suitable maintenance of park facilities received a boost recently when the department set aside $1.4 million in additional emergency maintenance funds. The money was part of $3 million in funds budgeted but not spent during the fiscal year that ended June 30. Many park guestrooms will be improved with new mattresses, TV sets, bedspreads and drapes, hairdryers, and iron/ironing boards with an additional $600,000 in leftover money. (Another $1 million in unspent funds will be returned to the General Fund.)

 

     The department has made a good start in reaching self-sufficiency, Commissioner Ward said. The department currently is budgeted for $29 million more in operating costs than it takes in from revenue.

 

     From the outset, the new management team found several opportunities for containing costs. 

 

     The department replaced an expensive program that kept contract workers on the payroll for relatively small construction projects. From now on, local, private-sector labor will be contracted to carry out such projects more quickly and less expensively. The net annual savings is estimated at $1.1 million.

 

     Commissioner Ward also learned early in his tenure that the department had been paying insurance on junked and unnecessary vehicles. The department disposed of 179, saving $407,000 in various expenses.

 

     The new management team also found that department workers had 364 procurement cards scattered throughout the system, with no firm controls on how the credit cards were used. An examination showed examples in which three different workers at a park made trips to a local Wal-Mart on the same day to buy goods. In other instances, parks used pro cards to buy supplies that should have been routinely reordered in bulk, using basic inventory control.

 

     The department cancelled 290 of the cards and set in place fiscal controls on the remaining 74 cards. $160,000 was spent per month on the cards before; now, $8,000 is being spent. 

 

    Opportunities for creating new revenue also abound, Commissioner Ward said.

 

      Sales training that instructs staff members on how to close a sale will generate at least $1 million in new revenue each year, Ward.

 

       On the marketing side, the department has branded its six best golf courses as a "Signature Series" and has developed a "Tee's and Zee's" package that offers a round of golf with cart, two meals and an overnight stay for one price.   

 

    "We're already seeing substantial increases in revenue from our four new golf courses," Commissioner Ward said. "This package will only enhance our sales."  Additional package offerings for families and couples are in the development stage.

 

     The department also will heavily promote state parks with members of the American Automobile Association. Kentucky parks will be featured in an inside front cover advertisement in the 2005 Kentucky-Tennessee TourBook and most of the resorts will be prominently listed in the guide. The parks also will be listed in AAA's Kentucky travel website.






 

Last updated: Friday, July 09, 2004