SD Rostra

Competition Between Government and Private Businesses Saving Millions for S.D. Taxpayers and Neighborhoods

Managed competition has created nearly $6 million in savings so far

Competition works — and is delivering results for San Diego.

Today, San Diego City Council President Pro Tem Kevin Faulconer joined Mayor Jerry Sanders and City Councilmember Todd Gloria to announce City employees won a bid against three private companies to provide street sweeping services to San Diegans. Freed up to compete with the private sector through the voter-approved managed competition process, City workers submitted a bid that will reduce the cost of sweeping streets by $560,ooo each year. These permanent savings constituted the lowest bid, prompting the recommendation today that City employees win the contract.

To date, three managed competitions for City services — publishing, fleet maintenance and street sweeping —  have produced a total projected savings of nearly $6 million annually for taxpayers. Six other managed competitions are in progress.

Faulconer, one of the original supporters of the 2006 managed competition ballot measure, has long said that regardless of whether the City or a private company wins, the real winners are San Diego taxpayers. He greeted the news that competition has again proven to lower costs and improve efficiencies for the City of San Diego. The following are his remarks from today’s news conference.

Today we are announcing that competition between the government and private sector is delivering real results – and savings – for San Diego taxpayers.

As one of the signers in support of the 2006 managed competition ballot measure, I believe that simply asking the question, “Which can perform a service more effectively, the private sector or City workers?” can unlock millions of dollars in savings and efficiencies for City government.

Putting street sweeping services up for competition has created an opportunity for City employees to submit a winning bid that will save taxpayers over half a million dollars each year. In fact, managed competition has now resulted in three cost-saving proposals, saving taxpayers nearly $6 million each year once this latest contract goes into effect. That’s millions of dollars that the City will no longer spend on overhead, duplicative processes, red tape and inefficiencies, which it can now reinvest in San Diego neighborhoods to repair roads, maintain parks, run libraries and fight crime.

The results of this competitive bid once again prove that the City has skilled workers who are ready to compete.

I am proud to have collaborated with Mayor Sanders, my City Council colleagues and San Diego voters to unleash the power of competition and deliver real results for San Diego.

Matt Awbrey is Communications Director for Council President Pro Tem Kevin Faulconer.

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