Quote:
Originally Posted by Festivus
And why is it not run by the city itself? Core services should be owned and run by the public, the past has proven that privatization/contracted services only end up costing the public more (while at the same time creating lower-paying jobs).
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I don't agree with this. If contracting is mismanaged, it can cost more, but the City has an extremely high cost structure and outsourcing properly can save taxpayers money while reducing risks by transferring the risk to the private sector. For example City employee pension cost are more than an additional 20% over and above wages.
This does not mean the City should contract out everything. For example the City should have core staff ready to respond to normal issues like snow removal, water main breaks, parks and road maintenance and other routine issues. It does not make generally sense though to have large crews siting around waiting for a big project to come along. Those can be sent out to tender.
I assume the City did not have the expertise or infrastructure to take on the compost file and decided to contract it out, just like they do with recycling.
This current scenario is a good example. If the contract is well structured, the contractor is eating the cost of having to find alternate land. The contractor may have already bought the land and now may have to sell for a loss. If the City was doing it they would bear that cost.