County to Hold Off on Using Private Firms for Repair Work

A plan to save hundreds of thousands of dollars by turning repair work on county-owned vehicles over to a private firm was put on hold Friday after the release of a union study showing that the proposal actually would cost the county money.

The study also demonstrates that equipment repair operations at two county landfills that were taken over several years ago by a private contractor are costing a lot more than they should, said Fred W. Lowe, director of the Orange County Public Employee Council of the Service Employees International Union.

The plan shelved Friday would have sent equipment repair work at two other county landfills to private firms--and perhaps car repair work at other sites.

Lowe said the plan would have affected as many as 100 county employees, including mechanics who repair Sheriff’s Department patrol cars, costing the employees their jobs and millions of dollars in wages and benefits.

The county’s decision to delay its plan, said Lowe, is “a major victory for us because it is the largest attempt at privatization the county has ever attempted.”

Saved Money

Lowe’s contention that the study shows current private repair operations are wasting money was challenged by Robert Love, director of the county’s General Services Agency. He said the operations have saved a “considerable amount” of money, though he had no exact figures.

“We went to contracting out to save money, and our updates show that we have,” Love said.

The union study focused on repair work done on equipment at the two landfills where county employees still do the work--on one small operation involving seven county mechanics in particular. That operation would cost the county $45,000 more a year if it were being handled by a private firm, according to the study.

The study noted that the county had estimated that it would cost $824,741 annually to have county employees continue to do repair work on bulldozers and other equipment at the two landfills and $760,852 for a private contractor to do it. The study said county workers could do the job in the same period of time for $716,511.

The union study said the county’s estimate failed to take into account:

Realistic staffing levels.

The increased cost of equipment and car parts when they are bought indirectly through a contractor.

That county mechanics work only part of the time at the landfills and also work at other sites, thereby increasing their productivity.

A study done by the county a few years ago pointed out that equipment bought through contractors costs more than it does when bought directly, the study said.

Also, the study concluded, “if Orange County contracts out maintenance services at the two remaining landfills, it will be completely dependent on this private company for these services . . . making it easier for the contractor to increase the amount it charges in future years.”

Love said county officials are interested in “several suggestions” in the union’s study but would not elaborate.