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Privatization: The Case of Sanitation
Transcript of Privatization: The Case of Sanitation
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
December 1, 2014
How does this relate to SANITATION?
Should your town
the formal and lawful delegations of specific responsibilities to designated officials and organizations
the norms, values, and standards of conduct that provide meaning, purpose, and a source of motivation to individuals working within an organizational unit
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.
Must adhere to Kansas City health codes
Aramark Corporation- Concession Operators
Aramark District Managers supervise concessions
Employees answer to stand managers
Workers served expired food
Clear lack of unity within the concession operators
How could concession manager let this happen?
Lack of leadership
Lack of motivation
Health Code Violations
at Kansas City Stadiums
: Millburn, New Jersey
: Giordano Company, Inc ($2 million, 3-year contract)
Reasons for Privatization:
Loss of state aid
Caps on property taxes
Save taxpayer money
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
Lower costs to taxpayers
Expertise in services
Reduced responsibility for upkeep, equipment, and personnel management
Competitive market pricing
Advantages of Privatization
Asset Sale or Long-Term Lease
11% → 25%
Animal Control Services
14% → 26%
10% → 27%
16% → 34%
16% → 29%
18% → 35%
Solid Waste Collection
30% → 54%
Street Maintenance & Repair
19% → 41%
9% → 22%
2% → 9%
3% → 12%
Increasing Privatization Trends
Quality of the vendor
Less direct communication channels
Ongoing municipal responsibility
Disadvantages of Privatization