O.C. Considers List of Services for Privatizing

Dozens of Orange County government operations might be run more efficiently by private businesses, according to a draft document circulating among top county officials.

Tree trimming in regional parks, patrolling of the harbors and serving food in the jails are among a list of 144 government operations that could be turned over to the private sector.

Some suggestions on the list are modest and uncontroversial; others could be expected to encounter stiff opposition from county employee unions, and about 45 are considered unworkable or unlikely to produce significant results.

The list, which was produced by county department heads and compiled by the county administrative office, will be considered Wednesday by a newly formed task force exploring ways to save the county money by contracting out some government services. It will lay the groundwork for an ambitious county effort to shed some of its functions in the face of growing budget shortfalls.

“This is something that we have to do,” said attorney Paul Hegness, a member of the Public/Private Task Force on Privatization, which includes 20 county and private industry representatives. “We’re experiencing a budget crisis, not just here but in governments across the country.”

Supervisor Gaddi H. Vasquez, who has spearheaded the task force, agrees.

“We’ve got to find a more efficient way of providing services,” he said. “I think this is a very good first step.”

But trimming back government operations won’t be easy. While many of the suggestions are considered relatively simple--contracting out the county’s chemical spraying and rodent control services in regional parks, for instance--many probably would be opposed by labor groups and some would require changes in the law.

Under state law, for instance, jail food services must be administered by the government of any “general law” county. Orange County is one of those. To change the system, then, the local government would either need a change in the state law, or the county would have to adopt its own charter, an idea that Supervisor Don R. Roth has suggested.

Also, some of the changes might eliminate county jobs, though it is too soon to say how significant the impact could be or how much money could be saved.

Representatives of county employees said Monday that some of the ideas, such as privatizing transportation of jail inmates, could jeopardize public safety and expose the county to lawsuits.

“Everyone understands the constraints that the county budget is under, but this sounds to me like it could be penny-wise and pound-foolish,” said Robert MacLeod, general manager of the Assn. of Orange County Deputy Sheriffs. “Whether they’re going to be able to find a private group that can protect the public and protect the county from liability is another matter.”

MacLeod said he is particularly concerned that the list suggested possible private contracting for the Harbor Patrol and the sheriff’s helicopter units--two areas in which the county administrative office list did not note any perceived controversy.

But those jobs are performed by sworn officers, and MacLeod worries that private groups might not have the expertise, or command the respect, needed to carry out those functions.

No representatives of county employee groups were included on the task force. Vasquez said that was because the group would only be drafting preliminary suggestions and then forwarding them to the Board of Supervisors for action.

Once the supervisors narrow the list of recommendations to pursue, employee groups will be invited to discuss any proposal that would affect county workers, Vasquez added.

In the meantime, the task force is expected to draft a list of its favorite candidates for private sector contracting.

“The goal for now is to come up with a ‘top 10’ list of suggestions,” said Robert G. Love, deputy director of the General Services Agency and a member of the task force. “Then we’ll give those to the board and let them move ahead.”

The group will have plenty of ideas to choose from, ranging from potentially huge issues to modest ones. Maintenance and custodial functions are listed by several department heads, as are typing and record-keeping operations.

The public defender suggested contracting out its fee-collection work, while the Sheriff’s Department suggested letting a private company take over school crossing guard services.

At John Wayne Airport, management and security operations are both considered for possible private sector contracts, though neither received a top rating.

The General Services Agency and the Environmental Management Agency led the pack, suggesting 79 services between them that might be contracted out to private companies. Some were dismissed for a variety of reasons, but others received high ratings for their potential cost savings and acceptability.

Larry Seigel, a management consultant and partner with Ernst & Young in Irvine, said the task force will try to identify services that could save the county significant amounts of money with as little opposition as possible. In some cases, that involves dividing up services and seeing if they can be administered differently, he said.

In the case of the helicopter patrols, for instance, Seigel said the task force might investigate whether flying the craft could be turned over to a private company, while a deputy on board would continue to perform the law enforcement functions required of the units.

Members of the task force said they were pleased that county department heads had been so aggressive in suggesting ideas.

“It means that there are some county department heads who are thinking creatively about this issue,” said Ron Del Principe, a task force member and area vice president of Pacific Bell. “This is an issue that’s going to take some creative thinking.”

Suggested Targets for Privatization

Orange County officials have identified 144 areas in which the private sector may be able to provide a service more efficiently than the government. A few samples:

Service and Current cost

PRIORITY RATING 1

Custodial and landscaping services in Civic Center: $11.8 million

Centralized word processing (Environmental Management Agency): $567,000

Full landscape maintenance at regional parks: $336,000

Regional park chemical spraying and rodent control: $84,000

Bridge inspection: $22,055

PRIORITY RATING 2

Harbor Patrol: $6.2 million

Alcohol outpatient clinics: $2.1 million

Fire inspections: $40,000-$50,000

Fire department training services: Not stated

Air support detail (helicopter): Unknown

Rating of 1 means: “Cost savings will be realized. There are no legal restrictions, significant administrative costs or employee opposition. There is no indication that privatizing the task could be considered controversial.”

Rating of 2 means: “Privatization of the task is possible but there are some major barriers and some time is needed in order to implement the suggestion.”

All suggestions are tentative.

Source: County administrative office report.