Date of Award

2004

Degree Type

Thesis

Degree Name

Master of Public Administration (MPA)

Abstract

The issue of whether the city of Sacramento should privatize residential garbage collection has been the subject of considerable debate in the past ten years. Given California's economic uncertainty and local agencies' dependence on the state's fiscal prognosis, the issue will no doubt continue.

Studies by prominent academics regarding the privatization of garbage services have turned up mixed results. E.S. Savas, who surveyed more than 1,300 cities on the issue, concluded that the extra cost of municipal agencies operating trash collection over private firms was more than 40 percent. On the other hand, Barbara Stevens, who surveyed 121 communities in the Los Angeles area, found that public agencies contracting with private firms saved less than 10 percent. Cities with franchises offered no savings, and private competitive arrangements cost a third more than municipal collection.

The city of Phoenix is held up as a successful model of a public agency that has been able to compete and win garbage collection contracts. The lesson that can be learned from the Phoenix experiment is that, when contracts are put to a competitive bid process, public entities are galvanized into action. And, when faced with the prospect of losing to private firms, they will rise to a level previously not expected of them. Moreover, if given the opportunity to provide input, implement cost-saving procedures, and be given access to private-sector type incentive programs, municipal agencies can not only prevail, but can exceed the success of private contractors.

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