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POLICY PROPOSAL
DATE FILE NUMBER SUBJECT PAOElOf�
10/22/91 CP-166 Privatization Committee Recommendation
PROPOSAL PROPOSED BY: ANAOER'S R EW
Councilman David Chappel
It is proposed that the following policy be adopted by the Fort Worth City Council regarding
privatization of certain service functions:
I. The City Council of the City of Fort Worth encourages the use of private vendors,
organizations and other sources for the delivery of municipal services and functions
when this can be done in an efficient and cost effective manner.
2. The City Council shall expect the staff to review and recommend such private
initiatives as an overall ongoing public policy and management strategy and as such,
all areas of government are subject to review by staff with a view to privatization.
(This should not be taken as a predetermination that privatization will occur,but that
the staff should justify their recommendation for continuation of our current non-
private methods.)
DISCUSSION
The City Council Privatization Committee has begun to explore the increased use of non-public
dties to deliver certain municipal services. The proposed policy statement provides the
eessary directive to the city staff to expeditiously pursue these efforts, with a presumption that
many current city services can be performed in a more efficient and cost effective manner, and that
a thorough staff review and report be made on a department by department basis.
LEGALITY
The legal implications of privatization of any municipal function or service should be carefully
studied. Although a municipal corporation generally has broad power to contract for the
performance of municipal functions, it may not contract away its governmental powers. In
addition, in those situations where the city is authorized to contract, it may be required to comply
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FISCAL NOTE ❑
CITY MANAGER'S COMMENTS ❑
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POLICY PROPOSAL (cont'd) PAGE--2-OF2
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with competitive bidding statutes and other applicable purchasing procedures. Finally, a true
assignment of the costs and benefits of any privatization should take into account the effect on the
City's potential tort liability.
FISCAL NOTE
There is no negative fiscal Impact associated with the adoption of this policy. Each privatization
opportunity, however, must be analyzed on an individual basis. Before privatization of any
function can responsibly be recommended, it must be demonstrated that privatization would be
cost effective in that particular instance.
" .11 MANAGER'S COMMENTS
The concept of privatization is currently utilized by the City of Fort Worth. Management's
objective is the delivery of municipal services in an efficient and cost effective manner. If, after
objective evaluation, privatization is in the best interest of the citizens, that particular function
should be performed by the private sector. It is important that any privatization effort be
consistent with other City Council policy directives, and opportunities open to all qualified
. f. viders, with special consideration for DBE as a continuing public policy commitment.
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CITY OF FORT WORTH