Privatizing City Services in Rochester Hills, Michigan

Nonetheless, a report on privatization initiatives in America's 100 largest cities (by population) was published in Public system Review in 1997. That report found that these cities have privatized, on average, seven pass water, primarily in the areas of pubic works and transportation, co-occurrence functions, public safety, health and human function, and parks and recreation (Dilger et. al., 1997, p. 22). The reach ten near privatized services, in their order of frequency, were vehicle towing, solidity waste collection, building security, street repair, ambulance services, printing services, street excitement and signals, drug and alcohol treatment centers, employment and training, and legal services (Dilger et. al., 1997, p. 22). This list corresponded with similar lists prepared for municipal governments of entirely sizes.

For the most part, the cities in the report were satisfied with the results of their privatization initiatives. Generally, they attributed their decision to privatize to a desire to reduce the costs of these services while change the quality of the service. They also claimed that privatizing services had saved them between 10 to 20 percent on the cost of providing specific services and improved service quality by 24 to 27 percent (Dilger et. al., 1997, pp. 23-24). Reducing the number of public employees and limited financial obligation were only rarely of

Farris, J. (4 February 2004). query with the author. Interview on file with author.

The City's RFP for kidnapping Basin alter Services is particularly instructive, however. In that case, the City was seeking much than cost bids from companies that could perform all the work involved with make clean the City's catch water basins. Rather, the City was also asking that bidders intimate their solutions for cleaning the catch basins. This seems to be a particularly efficient move on the City's part because it is essentially receiving free advice from all the companies that respond to the RFP.

Thus, if the City likes one company's proposed solution but balks at that company's cost estimates, the City could attempt to implement that proposal with a more cost-effective company. In this way, the competitive chance of outsourcing could work in the favor of the City and its residents.

Another significant aspect of the Catch Basin Proposal was that it saved the City notes by not requiring it to pay overtime (Farris, 2004). While this is undoubtedly a favorable result from the City's short-term economic location as related to this particular project, it should be noted that nigh opponents of privatization would point out that outsourcing the Catch Basin Proposal is symptomatic of the negative effects of privatization on labor. Farris stated that while the outsourcing of the Catch Basin work did not affect existing employees' allowance packages, it undoubtedly reduced the extra income from overtime that could have been open to City employees (Farris, 2004).

Privatization in Rochester Hills, Michigan

"Single trash hauler gains support." (8 February 2004). Rochester vitrine: A1.

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