Sunday, October 30, 2011

Report: Privatization in Redding, CA Wasteful & Unnecessary

Check out this article describing the consultants' reports about the wastefulness of contemplated privatization of municipal services.

Favorite quotes from the article:

But contract administration costs and a private firm's need to show a profit likely would offset any savings from less generous benefits, the report said.  The city pays $25,000 annually for pensions for each water and sewer worker on average while private-sector benefits would cost $4,000 . . . Outsourcing city planning and building would cost the city far more than it would save, Zucker Systems said in its report. The firm pegged those added costs at $424,738 to $777,578. Private consultants would charge the city an hourly rate of $110. City planners, building inspectors and other development service employees average $70 an hour, including benefits, the report said.  Private firms told Zucker they could do the same work in 20 percent less time, saving the city money.  But contract administration costs largely would offset those savings, Zucker said. And out-of-town planners would not know the city as well.

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