Council OKs Moratorium on Contracts With Private Firms

In a major victory for municipal labor unions, the City Council on Tuesday night approved an indefinite moratorium on contracting with private industry for city services.

The 3-2 vote, which followed a series of testimonials from city workers, rejected a recommendation from the city manager. He had warned that the action could “tie my hands” in pursuit of cost savings in a recession-plagued economy.

“If you say that private contractors are not an option, then the only alternative sometimes is to make major additional cuts,” City Manager James D. Ruth said. “This takes away a tool to look at the efficiency of costs.”

Mayor Fred Hunter, who proposed the action, said he believed the city owed a responsibility to its workers. Joining Hunter in support of the move were Councilmen William D. Ehrle and Bob D. Simpson.

With additional cuts anticipated as the state solves its own budget crisis, Sharon Ericson, president of the Anaheim Municipal Employees Assn., said city management had threatened to cut positions in favor of private contractors.

Opposing the move, Councilmen Irv Pickler and Tom Daly also said the city was “closing the door” on budget options during critical economic times.

City contracts with private firms now total about $126 million, or about 23% of the city’s budget.

The council action also comes at a critical political time for incumbents and challengers vying for support of the city’s organized labor force. That force has played key roles in the successful candidacies of Hunter, Ehrle and Simpson.

This fall, Hunter is running for a third term as mayor while Ehrle is seeking reelection to his council seat. The mayor is expected to face a formidable challenge from Councilman Tom Daly to keep his post.