Study of Privatization Sees Savings for County : Government: Task force draft report finds many services could be done as well and for less.

Turning over an array of county government operations to private businesses could save money and still provide residents with quality services, a special task force has concluded in a draft report obtained Thursday.

The report, which was shared with aides to all five county supervisors in a special briefing Wednesday, highlights 55 areas that the task force believes might be better handled by private companies.

Together, those operations now consume $79.7 million in taxpayer money every year. And although the draft report does not indicate how much money could be saved, many experts say that turning government functions over to private companies typically shaves 10% to 25% off the cost.

The 55 services identified in the draft report cover a wide range of local government functions, from tree trimming to the Harbor Patrol, from school crossing guards to landfill operations.

“I think we’ve identified enough things to give the momentum to get the program started,” said Larry Seigel, a member of the task force. “Some of these things are slam-dunks.”

Seigel and several county officials cautioned, however, that many of the suggestions in the task force’s draft report only are tentative and probably will be dropped by the board or by the county staff. While the idea of contracting out services is popular among many county officials, labor leaders are deeply skeptical and are expected to raise objections to some of the suggestions.

Contracting out government operations--a process known as “privatization”--has captivated public officials in many parts of the country in recent years, as public agencies trying to deal with shrinking budgets and expanding demand for their services.

In Orange County, a growing fiscal crisis that has seen record shortfalls in the county budget has helped propel privatization to the top of the county agenda.

The county “is facing a period of difficult fiscal constraints,” the draft report notes. “Private providers are reported to be less wasteful and more cost-effective than government agencies.”

But while the concept enjoys strong support among the supervisors, local labor unions are fiercely opposed to some of the suggestions.

“It’s ludicrous, just plain ludicrous,” Robert MacLeod, general manager of the Orange County Deputy Sheriffs Assn., said of the proposal to contract out Harbor Patrol services. “The training that’s required as a Harbor Patrol officer, or a sheriff’s deputy assigned to that area, is very broad.”

In addition to identifying services that could be handed over to private companies, the task force is suggesting strategies for how to whittle away some operations. County departments should focus on their “core business,” the task force recommends, while contracting out many support functions.

The county also should offer incentive pay to encourage managers to contract out operations, and such ideas should be judged on the full cost savings with such things as retirement pay and health cost savings included, the task force draft concludes.

And though the county needs to administer its contracts carefully, the task force recommended that it press for authority to turn over as many of its services as possible to the private sector.

Board of Supervisors Chairman Gaddi H. Vasquez declined to comment on the specifics of the report, noting that it remains a working draft. But he said he was pleased by the progress of the task force.

“The process has been a very positive one,” said Vasquez, who along with Supervisor Don R. Roth has emerged as one of the leaders of the county privatization effort. “All the indications are that we are on course.”

Task force members, who include high-ranking county government officials as well as executives from several local companies, said they, too, are enthusiastic about the effort so far. The task force met with aides to each of the five supervisors Wednesday, and participants in that meeting said later that they were glad to find that the board offices appeared receptive to their ideas.