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HomeMy WebLinkAboutCP 166 110M COE Hmu MMMOUZ&O LD ... di 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 ��• U:OAUTY FISCAL NOTE ❑ CITY MANAGER'S COMMENTS ❑ cJtT t�a. ,•,� t7ortt,. Texan o _ POLICY PROPOSAL (cont'd) PAGE--2-OF2 lowb- 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. i r CITY OF FORT WORTH