In the May 28 story, “Private vs....
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In the May 28 story, “Private vs. public argued in Newport Beach,”
City Manager Homer Bludau said trash could not be outsourced, because
“Our residents love the guys who pick up their trash, and it would be
very unpopular for me to propose that we contract out that service.”
With tree trimming, the city reduced costs by 50%. The trash
haulers who service my area are great guys, but if significant cost
savings could be achieved, and quality maintained, that option should
be considered. Trash collection is a repeatable service, with service
levels provided based on a contract.
Decisions of this type should be made on the basis of full
analysis, considering the qualitative and financial implications,
rather than gut feel about residents’ views of a change in staff. How
about conducting a survey of residents to ask them what service
levels and cost structure they would prefer?
Apparently trash-collection fees are covered in the 1% general
property tax levy, so, per the city, residents get “free” trash
collection. This is not the case. The cost for trash collection is
based on salaries, equipment and other costs incurred by the provider
to provide the requested service levels. This “fully burdened cost”
should be considered independently of the pricing, and current method
of collecting fees, i.e. through the 1% property tax levy.
Newport Beach residents understand the value of business decisions
made with full understanding of the facts. We deserve to have
decisions about city services made in that way.
LAURA CURRAN
Newport Beach
It’s easy to go along with the adage that private business is
always more efficient than government. However, it is an assumption
that may not always be true. Each consideration of outsourcing needs
to be looked at very carefully to know if the bottom line is really
what it seems to be.
As an example, Greenlight spokesman Phil Arst says that the
tree-trimming cost dropped from $89 to $39 per tree when a private
company took over the work from the city. That may not be what it
seems to be when everything is considered for total cost. Someone
needs to do a complete evaluation of this and report to the taxpayers
of Newport Beach. Just in this one case, these are the things that
need to be considered: What is the total amount charged to the city
in extra fees each year for the work that the company does that is
not included in the regular tree trimming. It would be easy to low
ball the bid on trimming and then make it up with additional fees.
Does the company trim palm trees more often than shade trees because
they are quicker and therefore more profitable? Does the company pay
as much attention to the health of the tree when trimming, or has our
loss rate gone up after outsourcing? What is the turn-around time
when a resident requests a tree be trimmed compared to when city
employees did it?
I am not making any accusations -- I don’t know what the results
of such an evaluation would be. I’m saying that all of these things
need to be looked at and accounted for when making a judgment on the
value of outsourcing to the taxpayers of Newport Beach. It’s possible
that we got a lot for $89 per tree, when everything is placed on the
table, and in the worst scenario, bottom line, we may actually be
paying more than that now. I’d like to know for sure.
FRANK COLVER
Newport Beach
Should Newport Beach consider outsourcing? Absolutely not.
I’m sure most of us have experienced the marked decrease in
customer service from companies that have outsourced some of their
work and functions. We don’t need this in Newport Beach. Outsourcing
would likely save a small amount of city budget (probably much less
than $72 per resident per year, according to Assistant City Manager
Dave Kiff’s numbers in the Daily Pilot), but are the residents of
Newport Beach willing to sacrifice the efficient, helpful and
friendly responses from the city employees when you have a problem? I
think not.
We have all chosen to live in this wonderful city, and I’m sure
that most of us recognize that it would be less costly to live
elsewhere, but we haven’t chosen to move. Why? Because we like the
city the way it is. I moved here from a large city where most of the
employees had a couldn’t-care-less attitude. Getting any question
answered or getting a problem solved was typically a nightmare of
runarounds and partial or incorrect answers or directions.
I have had several occasions since I relocated to Newport Beach to
contact city employees, and I cannot recall even one experience where
my problem or question was not quickly and fully satisfied. (This
even included building a new home, which is something you would
expect to have many, difficult problems.) The time saved and the
headaches avoided have been well worth the little extra we might be
paying here in Newport Beach for these helpful city employees.
Those residents who support more outsourcing need to remember the
old saying that you get what you pay for. Here in Newport Beach we
pay a little more and get a lot more.
TOM WEBBER
Balboa Island
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