SB 1322 -- A Very Bad Deal for Phoenix Taxpayers Senate Bill 1322: Cities;Towns; Managed Competition (Sen. Frank Antenori, R-Tucson) would mandate that the cities of Phoenix and Tucson put out most city services for competitive bidding, and award contracts to the lowest bidder who can do the work, even if they're out of state or out of the United States. What would be the cost to the City of Phoenix to comply with the mandated competitive bidding requirements of SB 1322? The city's Finance Department estimates that the average cost for a typical, simple procurement is somewhere between $22,000 and $42,000. A complex procurement, such as Phoenix already conducts for services like solid waste, towing, and banking, costs considerably more -- in the $100,000 to $150,000 range -- because consultants with expertise are needed to help structure the scope of work, monitoring requirements, etc. The most complex procurements, like a water treatment plant or airport, would cost the city millions of dollars because of the very detailed contract provisions requiring input from engineers and other specialists in these highly regulated operations. How many of these procurements would the City would be required to do should SB 1322 be enacted? It is safe to say that it would be in the thousands. Phoenix's total operating budget in fiscal year 2010-2011 including enterprises such as Aviation and Water Services was over $3.5 billion -- $432 million of that is already outsourced to private sector firms. To bid out and manage contracts for the other $3.1 billion in operations would cost Phoenix taxpayers hundreds of millions of dollars. For the upcoming fiscal year 2011-2012, Phoenix projects an estimated General Fund deficit of about $59 million. Clearly Phoenix does not have the money or other resources needed to comply with the unfunded mandates of SB 1322. Please call or email your legislator today -- why is the State even considering this? Source: P.L.A.N.
Sunday, March 27, 2011
P.L.A.N. Update - We Just Can't Afford It
SB 1322 -- A Very Bad Deal for Phoenix Taxpayers Senate Bill 1322: Cities;Towns; Managed Competition (Sen. Frank Antenori, R-Tucson) would mandate that the cities of Phoenix and Tucson put out most city services for competitive bidding, and award contracts to the lowest bidder who can do the work, even if they're out of state or out of the United States. What would be the cost to the City of Phoenix to comply with the mandated competitive bidding requirements of SB 1322? The city's Finance Department estimates that the average cost for a typical, simple procurement is somewhere between $22,000 and $42,000. A complex procurement, such as Phoenix already conducts for services like solid waste, towing, and banking, costs considerably more -- in the $100,000 to $150,000 range -- because consultants with expertise are needed to help structure the scope of work, monitoring requirements, etc. The most complex procurements, like a water treatment plant or airport, would cost the city millions of dollars because of the very detailed contract provisions requiring input from engineers and other specialists in these highly regulated operations. How many of these procurements would the City would be required to do should SB 1322 be enacted? It is safe to say that it would be in the thousands. Phoenix's total operating budget in fiscal year 2010-2011 including enterprises such as Aviation and Water Services was over $3.5 billion -- $432 million of that is already outsourced to private sector firms. To bid out and manage contracts for the other $3.1 billion in operations would cost Phoenix taxpayers hundreds of millions of dollars. For the upcoming fiscal year 2011-2012, Phoenix projects an estimated General Fund deficit of about $59 million. Clearly Phoenix does not have the money or other resources needed to comply with the unfunded mandates of SB 1322. Please call or email your legislator today -- why is the State even considering this? Source: P.L.A.N.
Friday, March 11, 2011
P.L.A.N. Update - Who's In Charge Here?
SHOULD THE STATE RUN OUR CITY?Earlier this week, state senators deliberated on two bills that would have state government dictate how city services are delivered in Phoenix.
Senator Frank Antenori – a Tucson legislator – is the sponsor of Senate Bill 1322: Managed Competition; City Services and Senate Bill 1345: Municipal Employees; Compensation, bills that would force the cities of Phoenix and Tucson to lay off thousands of employees, outsource each service or civilian job that costs more than $75,000 in total wages and benefits, and cap employee salaries.
The City of Phoenix’s voter-approved charter gives authority for hiring and setting wages and benefits to the City Manager, with oversight by the Mayor and Council. These two bills undermine the governing structure approved by Phoenix citizens.
Senator Antenori believes these bills will save taxpayer money and afford more opportunities for businesses to provide local services. The City agrees that competition can be beneficial. That's why Phoenix privatizes more than 350 services that infuse $432 million into the private sector and is currently studying ways to increase those numbers.
The proposed salary cap aims to tie public employee compensation to the average of private sector compensation. However, this mandate doesn't take into account the highly technical nature of many city jobs. For example, engineers, accountants, attorneys, chemists, and other professionals with advanced degrees and training would not receive the same level of compensation as their peers in other cities -- Phoenix would likely experience a "brain drain" as these professionals go to other local cities that aren't subject to this arbitrary cap.
The City strives to provide quality service while controlling costs. Today, Phoenix has fewer employees per capita than it did in 1972. Even in this difficult economic environment, the City budget remains balanced. We don't need the state to start telling us how to run the City. This is why Phoenix’s Mayor and Council have formally voted to oppose these bills.
The state faces countless challenges. Spending time and resources on legislation that targets only two cities with strong-arm state mandates does not seem prudent. Most people agree that the government closest to the people governs best. Please contact your state legislator and let them know that local officials, not a state senator from Tucson, are the ones you want to govern your city.
Source: P.L.A.N.
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