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Tampa's Estimate Of Privatization Savings Too Optimistic

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By ELLEN GEDALIUS

The Tampa Tribune

Published: June 20, 2008

TAMPA - Last year, city officials estimated they could save about $1.3 million by turning janitorial and security work over to the private sector.

Those estimates turned out to be overly optimistic.

The savings for privatizing security work are so small the city is dropping the idea altogether.

And instead of saving $950,000 by privatizing janitorial work, the city now expects the figure to be less than $400,000. The difference comes because the city wants to keep some of its own parking attendants.

In November, Mayor Pam Iorio announced plans to privatize janitorial and security services, targeting about 50 security officers and 38 janitors to lose their jobs. Iorio had said the cuts were necessary as the city tries to balance its budget in the wake of state-mandated property tax cuts.

Some city council members immediately questioned the numbers because no contracts had been awarded. Councilman John Dingfelder vehemently argued against the proposal, in part because he did not want to see some of the city's lowest-paid employees lose their jobs. Union officials also rallied at city hall to voice their opposition. Still, the administration sought bids for the contracts.

Five companies bid on a contract to provide janitorial services to the city's parking division and parks and recreation department. The bids ranged from about $940,000 to $2.3 million. United Services Group, based in Clearwater, is the low bidder.

According to city records, privatizing janitorial services would allow the city to cut 31 positions: four in parking and 27 in parks.

All but four of those positions are occupied.

The city administration planned to ask the city council to approve the two-year contract next week, but Dingfelder asked for a delay, arguing the community needs more time.

"This is an important issue in this community and it shouldn't be rushed into," Dingfelder said.

Chief of Staff Darrell Smith said the administration plans to move ahead anyway by asking the council Thursday to privatize janitorial services. He said taxpayers would not be affected by the change and would save about $785,000 over the course of the two-year contract.

Iorio is scheduled to present a budget Aug. 7.

Councilman Tom Scott said he remains undecided on the privatization issue.

"Right now, you're in a budget crunch. You have to look at everything," Scott said. He added, "I'm concerned about loss of jobs."

He said he wants to know whether United Services Group will hire the laid-off city workers.

A United Services Group official could not be reached for comment.

As for security services, the city has decided to continue using its own employees, partly because the savings would have been about $164,000 rather than the $355,000 initially projected, Smith said.

Reporter Ellen Gedalius can be reached at (813) 259-7679 or egedalius@tampatrib.com.

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