City Manager: City could privatize trash services
By Andrew Edwards
Staff Writer
SAN BERNARDINO -- Another year of budget troubles is likely to revive talk of selling off the city's waste hauling division.
Interim City Manager Mark Weinberg wants to bring the idea before the City Council some time in the next two months.
"The Integrated Waste enterprise represents a substantial City asset that could be sold outright, or franchised, in a manner which would provide the City with a significant cash infusion, as well as a recurring income stream," Weinberg wrote in an email.
The Integrated Waste Management Division is part of the city's Public Services Department. The division is responsible for hauling garbage, recyclables and green waste from homes and businesses.
Weinberg wrote that he plans to ask the council to approve the hiring of a consultant to study whether some kind of privatization plan would work out.
The idea raises a number of questions, such as whether a contractor could provide equivalent or better service that the city-run operation. There are also the matters of whether residents' rates would go up and what would happen to current employees' job security.
"I'm concerned about maintaining the integrity of employees," 3rd Ward Councilman Tobin Brinker
That said, Brinker said he's open to the notion of privatizing waste services if a prospective contractor can turn in a quality proposal.
He said he's aware of preliminary projections indicating that privatization could be a $30 to $50 million boon for the city, but has not seen any kind of detail that would put more substance to those predictions.
Fifth Ward Councilman Chas Kelley also said he's open to the idea, and mayoral chief of staff Jim Morris said Mayor Pat Morris thinks the idea is worth studying.
Seventh Ward Councilwoman Wendy McCammack was more skeptical.
"As far as refuse is concerned, the commercial side of refuse is money maker for the city. Why would you sell a money maker?," she asked.
McCammack said she is more interested in exploring the possibility of selling surplus property. She is also gathering cost-savings ideas from San Bernardino employees.
San Bernardino's mid-year budget report shows that the city's Integrated Waste Management fund is expected to bring in nearly $24.7 million by the end of June.
Expenditures and transfers -- nearly $2.6 million is set to go to the general fund -- are expected to leave the fund about $570,000 in the hole when the fiscal year ends June 30.
Neighboring Colton franchises waste hauling services to firm called Colton Disposal. The company's rate for Colton residences is $22.59 per month.
San Bernardino's charge for single family residences is $22.84 per month.
Colton City Manager Daryl Parrish wrote in an email that he's pleased with his city's franchising arrangement.
Colton takes in about $900,000 annually in franchise fees, plus a $90,000 administrative fee. The city also receives about $125,000 in recycling income.
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Andrew Edwards. E-mail Andrew here.
You can sure tell it is Spring Time in the Inland Empire. The fresh clean air affects many of the residents with hey-fever or bouts of asthma. It also seems to affect some of SB’s leadership with lightheadedness and unbelievable decision making ability or the full understanding and comprehension of just what it is they are trying to do.
Sell the SB Waste Management Dept? Commission a feasibility study at a time the City is laying off it’s employees and trying to furlough others? Maybe the FD paramedics can go and look for that big lump that has to be on the City Manager’s head. He must have fallen somewhere. This could be serious for all concerned. Just how is this commission or feasibility study is going to be paid for…when the City till is EMPTY…or is it?
The City is not in an environment of future growth now; it is supposed to be in an environment of survival both now and in the foreseeable future (like in four [4] months when the new 2010 budget is due). What or who will be sacrificed them?
Will this sell simply raise waste costs to the residents? Will any guarantee’s be offered to the residents and commercial users that it won’t?
What is next? I have been suggesting for over a year+ now for a complete audit/review of all the City’s physical assets which are owned by the City throughout, to include property in the downtown area that was purchased for the notorious “River Walk” idea of a past Mayor. (Boy was a LOT of our tax dollars and redevelopment money wasted on that idea that was studied to death yet made “several” of the companies doing the studies VERY rich!!) These assets (to include property) should be made known to the public/voters/residents of SB. After all, it really belongs to us the taxpayers, and City Hall is just supposed to be “managing” it for us. After a very public review and accountability, educated decisions could follow as to what would be best for these assets, not only in terms of the City’s financial dilemma, but also for the affected neighborhoods that may be impacted positively/negatively if they are sold off.
For any major decisions that are made to sell off a complete department, I feel this matter should be put before the voters, let them decide. There is an election scheduled for the fall of the year, put this idea on the ballet…act now and you have the time to do so.
I hope the FD Paramedics are still talking to the City Manager…he just may be needing assistance when these guys are on their furlough!! Ya gotta love SB leadership and politics. Maybe our leaders could interest Hollywood into making a weekly TV series on the trials and tribulations of a typical multimillion dollar So Cal town with $0.10 management! (Sorry for the sarcasm but this is getting hard to believe it is happening).