Storm Water Savings: Mayor's Office Praises Managed Competition

San Diego Business Journal

 Thursday, October 11, 2012

Managed competition, or the process of city departments bidding against outside vendors on a service, resulted in another $875,000 in savings for taxpayers, according to Mayor Jerry Sanders’ office.

The latest group to win back its own contract is the street division of the city’s Transportation and Storm Water Department, which came in with a bid that was 7 percent below what the service was previously budgeted, the mayor’s office said.

Counting the most recent planned savings, San Diego has saved more than $9 million through managed competition, a process that was approved by voters several years ago. The other city services that slashed their budgets to retain the work are publishing services, fleet maintenance, street sweeping and landfill operations.

“With every managed competition, taxpayers are guaranteed that they are getting the best value for their dollar, regardless of who wins,” Sanders said.

To accomplish the savings and win the contract, the storm water department proposed cutting 13.8 full-time positions or reducing staff by 14.5 percent. It also proposed cutting equipment use by 34 percent.

The agreement is still subject to a sign-off from the city’s labor unions, according to the mayoral announcement.

Note:

Managed competition was sold to voters as a way by which private companies that allegedly provided better products and services for less cost than city workers, would take over the provision of those products and services.

Since the program began, not one private company has obtained a contract from the city. What has happened is that city workers have been given the opportunity to work outside the confines of city-mandated bureaucratic practices and procedures, allowing them to provide services at lower costs while still maintaining a high level of quality. City departments have won every project or service put out to bid.

So, it seems that "privatization" has failed in favor of allowing city workers to do their jobs the way they choose, as opposed to the way they have been forced to do it in the past.

Why doesn't the Mayor's office give up the charade and simply allow city workers who are trained to do these things, do them without the interference of elected officials, who are generally not trained to do much of anything?