Mayor voices skepticism on privatization
Published 5:00 am Monday, September 15, 2003
Following recent observations of private company service tocommercial customers, Mayor Bill Godbold said he is now moreinclined to continue city-run residential solid waste operationsinstead of switching to privatization.
“I’m really reluctant,” Godbold said. “Privatization would putour people in a bind.”
The mayor’s comments come as officials are expecting to hearfrom Solid Waste Consultant Butch Lambert, possibly at Tuesday’sboard meeting, regarding the city’s requests for proposals fromprivate companies to provide garbage collection services.
The city is paying Lambert $10,000 plus expenses for his help inpreparing bid specifications. Seeking bids would be the next stepif aldermen move to privatize.
Aldermen are considering privatization as a way of addressingfinancial woes in the city’s solid waste operation. A new yearbudget approved last week projects an approximately $33,000surplus, but includes no money for replacing or repairing oldequipment.
Another option would be for aldermen to elect to continuecity-run services and raise garbage rates enough to coveroperational expenses and new equipment needs. Godbold said any rateaction would be up to the board.
“If that’s what it takes, that’s what we’d have to do,” Godboldsaid.
Godbold said the city could continue the service for two moreyears and then allow the next administration to decide how toproceed with solid waste operations.
During last Monday’s budget meeting, which the mayor was unableto attend, City Clerk Iris Rudman-Smith emphasized the solid wastebudget situation. Whether taking steps to keep the service or toprivatize it, she urged the board to “bite the bullet” onaddressing solid waste funding.
“It’s a simple economics question. Do you want it or not?”Rudman-Smith said.
According to one estimate, it is costing the city $22 a month torun garbage services, yet it is charging residential customers $12a month.
Aldermen voted to discontinue commercial services in January.Businesses were forced to seek help from private services.
In seeking Lambert’s help, Godbold had signaled a possible movetoward privatization.
On Thursday, however, Godbold said he had noticed commercialgarbage bins filling up and overflowing during his travels aroundtown. He also expressed concerns about operations at the garbagetransfer station, which owned by the city and county but leased toa private service.
Godbold contended the city could provide better service.
“The things I’ve seen in the last 30 days have really popped inmy mind that they can’t do it like we can do it,” Godbold said.
Regardless of which course is taken, Godbold said the cityshould continue with trash collection services. Officials believethe city could continue that service with a small property tax levyallowed by law.
“I don’t think it would be to the public’s benefit or ourbenefit to get out of the trash business at this time,” Godboldsaid.
Godbold also advocated the city taking over operation of thetransfer station, which would require the city and county gettingout of a recently-renewed three-year contract. The city ran thetransfer station several years ago, but lost money during the briefeffort.
The mayor said the city could contract for hauling of garbage toan approved landfill. That would be a difference from the lasttime.
In addition to the transfer station, Godbold supported keepingthe city’s rubbish field. The city charges a fee for disposal ofrubbish and large trash at the site.
“It’s a money-making proposition,” Godbold said of the rubbishfield.