AFSCME Privatization Update

Source: By ERIC STIRGUS, The Atlanta Journal-Constitution (GA), Published on: 04/29/08

Atlanta is scheduled to accept bids Wednesday from companies that want to run the city's parking ticket and meter collection operation, now done by the Public Works Department.

....... Nancy Lenk, a leader of one of the city's largest unions, disagrees. She says union leaders in other cities have seen businesses frequently make low bids to provide government services and later increase their rates well past how much it cost government workers to do the job.

"Over time, [privatizing] is a bad idea," said Lenk, assistant director of the American Federation of State, County and Municipal Employees, Local 1644, which says it represents about 2,000 Atlanta employees.

Posted by Info Center at 3:46 PM in Public Works | Permalink
Tags: Georgia

Source: BY AMANDA N. MAYNORD, Nashville City Paper (TN), January 8, 2008

For three months last year the building that houses the Davidson County Election Commission was not guarded on Saturdays, but the city was being billed anyway according to Metro officials.

.......... Wackenhut Corp., which has provided security through a subcontractor for the building since May 20, 2007, as well as several other Metro buildings billed the city under a long-term contract the company has to provide security to Metro government buildings. The subcontractor, Specialized Security Consultants, Inc. and Wackenhut have come under fire in connection with A Dec. 23 break-in at the Election Commission that resulted in the theft of two laptop computers containing the Social Security numbers of 337,000 registered Davidson County voters.

Posted by Info Center at 11:08 AM in Horror Stories | Public Safety | Public Works | Permalink
Tags: Tennessee

Source: By Steve Brandt, Star Tribune (MN), July 20, 2007

Minneapolis will shed eight of the 24 parking ramps it operates under an $88.2 million deal approved over the objections of some union representatives.

The City Council approved the privatization deal 11-0, adding some job dislocation help for the undetermined number of largely immigrant workers who lose jobs.

....... The sale allows the city to retire about one-third of the debt on its parking facilities, and strengthen its cash flow on the remaining ramps, according to projections. The privately held ramps would generate an estimated $3.4 million in property taxes annually.

Posted by Info Center at 11:22 AM in Public Works | Transportation | Permalink

Source: Indianapolis Star, May 14, 2007

Stephen Goldsmith, who championed privatization as mayor of Indianapolis for two terms in the 1990s, has joined an investment company with money to spend on government assets. Goldsmith will work for CapitalSource, a commercial lender and investment business in Chevy Chase, Md., as director of its new Infrastructure Finance and Investment Group, a news release said. ……. "The new group will focus on acquiring and financing long-life infrastructure assets -- transportation, utility or recreation -- across the United States," the company said.

Posted by Info Center at 11:26 AM in Asset Sale/Lease | Parks & Recreation | Public Works | Transportation | Permalink

Source: By Jerry Knight, writer for the Washington Post, Fort Wayne Journal Gazette (IN), Fri, Mar. 24, 2006

The leasing of the Indiana Toll Road is on the forefront of a trend in the U.S. of privatizing infrastructure. If somebody asked if you wanted to buy the Brooklyn Bridge, you’d know it was a con. But how about buying the Indiana Toll Road? Before you snicker, you should know the Indiana highway was auctioned off last week for $3.8 billion. …. Ducking tax increases is what motivated the state of Indiana and the city of Chicago to sell their toll roads. Indiana was facing a billion bill for updating its highway system when Gov. Mitch $10 Daniels, a former federal budget director, came up with an alternative to paying the price – tapping the Toll Road. …. Prudence would argue for going slowly, doing what amount to clinical trials of privatization before prescribing it as a cure for the ailments of America’s infrastructure. But bridges are crumbling, roads are jammed and the infrastructure privateers are standing at the door, checkbooks in hand.

Posted by Info Center at 11:25 AM in Public Works | Permalink

Source: InsideINdianaBusiness.com Report, 3/23/2006 10:25:35 AM

A new report from Fitch Ratings says the privatization of U.S. toll roads are an attractive option for state and local governments because of the financial resources generated and the resulting reduction in public sector investment. The rating agency’s report says the benefits to governmental entities and users include quicker and more efficient delivery of services, as well as a higher quality of services. The report also notes that private companies operating the roads can often provide added value to users at a reasonable cost while generating an acceptable profit margin.

The Fitch report notes: "Efficient Operations, Maintenance, and Life Cycle Asset Management: The private sector is not often constrained by restrictions such as statutory bidding requirements, administrative processes, and labor
contracts with union pay scales and restrictive work rules.

Posted by Info Center at 3:31 PM in Asset Sale/Lease | Public Works | Permalink

Source: Albany Times Union (NY)
Date: Monday, November 21, 2005

Hiring private contractors to inspect New York's bridges is costing the state at least 50 percent more than using state employees on the job, according to a new study by the Public Employees Federation. What's more, PEF analysts say, internal Department of Transportation memos show that the agency's increasing reliance on consultants hasn't been fueled by a desire to save money, increase efficiency or improve quality. Rather, the memos indicate that consultant contracts are seen as a way to replace bridge inspectors lost due to early retirements and freezes on hiring and promotions.

Posted by Info Center at 2:35 PM in Horror Stories | Public Works | Permalink