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Privatization: The Case of Sanitation

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on 1 December 2014

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Transcript of Privatization: The Case of Sanitation

Privatization:
The Case of Sanitation

design by Dóri Sirály for Prezi
The provision of public services and activities by private companies or other non-governmental entities
Private companies risk their own money therefore they have a greater incentive to provide quality services at lower costs seeing as the revenue produced is from their quality of service and not the taxpayers’ money
Concept is based on the theory that a private company can provide certain services effectively and at a lower cost than a public agency




Applies to services like sewage, recycling, garbage, snow plowing
Has proved popular in cities seeking to reduce spending
Around 50% of American cities use private trash collectors
Private estimates indicate sanitation privatization could save municipalities between 20-40% on sanitation costs
Georgia case study


What is PRIVATIZATION?
POLS 103: Intro to Public Administration
Professor Ochs
December 1, 2014

Addison Jenkins
Allie Starer
Caitlin Grady
Gabby Romano
Joe Frick
Phil Baus

Thank you!
How does this relate to SANITATION?
Should your town
privatize sanitation?
Structure:
the formal and lawful delegations of specific responsibilities to designated officials and organizations

Culture:
the norms, values, and standards of conduct that provide meaning, purpose, and a source of motivation to individuals working within an organizational unit

Craft:
public managers' attempts to influence government performance through the force of their personal efforts in goal-setting, exemplary actions, leadership and the like


Structure, Culture & Craft

Adler, Moshe. "New York's Lesson on Garbage Privatization." The Toronto Star. Toronto Star Newspapers Limited, 22 July 2002. Web. 24 Nov. 2014.
Downs, Peter. "Past Experience of Many Cities Suggests Privatizing Sanitation Services Wasn't a Panacea." The Commercial Appeal. Scripps Interactive Newspapers Group, 10 July 2011. Web. 24 Nov. 2014.
Gaist, Thomas. "Detroit Sanitation Workers Denounce Privatization." World Socialist Web Site. International Committee of the Fourth International (ICFI), 20 Feb. 2014. Web. 24 Nov. 2014.
Lavigne, Paula. "Bugs, Mold on Menu at K.C. stadiums." ESPN. ESPN Internet Ventures, 14 Nov. 2014. Web. 24 Nov. 2014.
Leon, Joan. "Pros, Cons of Privatization." Santa Maria Times. Cynthia Schur, 20 Aug. 2010. Web. 24 Nov. 2014.
"Municipal Services." In the Public Interest. The Partnership for Working Families, n.d. Web. 24 Nov. 2014.
O'Connell, Kim. "Taking Back the Trash." American City & County. Penton Media, 1 Apr. 2005. Web. 24 Nov. 2014.
"Organizational Structure." West Montrose Sanitation District | Organizational Structure. West Montrose Sanitation District, n.d. Web. 24 Nov. 2014.
United States of America. Chicago Dept. of Streets and Sanitation. Chicago, Illinois. DSS Department Organization. City of Chicago, n.d. Web. 24 Nov. 2014.
United States of America. Georgia Municipal Association. Atlanta, Georgia. Privatization of Municipal Services: A Guide for City Officials. By Perry Hiott and Justin Kirouac. Ed. Amy Henderson. Atlanta: Georgia Municipal Association, 2001. Print.

Works Cited
Structure:
Must adhere to Kansas City health codes
Aramark Corporation- Concession Operators
Aramark District Managers supervise concessions
Employees answer to stand managers
Culture:
Workers served expired food
Ignored manager
Clear lack of unity within the concession operators
Craft:
How could concession manager let this happen?
Lack of leadership
Lack of motivation





Health Code Violations
at Kansas City Stadiums


Town
: Millburn, New Jersey
Company
: Giordano Company, Inc ($2 million, 3-year contract)

Reasons for Privatization:
Loss of state aid
Caps on property taxes
Save taxpayer money

The Facts
Model Town: Millburn, NJ
2x/week garbage collection and 1x/week recycling
Contract calls for 3 years with the ability to extend up to 5 years
Goal: to reduce long term and short term costs
Maintain/improve service levels
Maintain great relationship with employees

Model Contract
Lower costs to taxpayers
Expertise in services
Increased innovation
Reduced responsibility for upkeep, equipment, and personnel management
Competitive market pricing

Advantages of Privatization
Outsourcing
Load Shedding
Managed Competition
Management Contracts
Vouchers
Asset Sale or Long-Term Lease
Government Corporations
Volunteer Partnerships
Reverse Privatization
Privatization Methods
Ambulance Services
11% → 25%
Animal Control Services
14% → 26%
Bill Collection
10% → 27%
Data Processing
16% → 34%
Golf Courses
16% → 29%
Park Maintenance
18% → 35%
Solid Waste Collection
30% → 54%
Street Maintenance & Repair
19% → 41%
Street Sweeping
9% → 22%
Water Systems
2% → 9%
Wastewater Systems
3% → 12%

Increasing Privatization Trends
1987-1997
Quality of the vendor
Operational changes
Contract monitoring
Less direct communication channels
Employee monitoring
Ongoing municipal responsibility
Disadvantages of Privatization
Full transcript