San Diego Business Journal

Storm Water Savings: Mayor's Office Praises Managed Competition

Thursday, October 11, 2012

Managed competition, or the process of city departments bidding against outside vendors on a service, resulted in another $875,000 in savings for taxpayers, according to Mayor Jerry Sanders’ office.

The latest group to win back its own contract is the street division of the city’s Transportation and Storm Water Department, which came in with a bid that was 7 percent below what the service was previously budgeted, the mayor’s office said.

Counting the most recent planned savings, San Diego has saved more than $9 million through managed competition, a process that was approved by voters several years ago. The other city services that slashed their budgets to retain the work are publishing services, fleet maintenance, street sweeping and landfill operations.

“With every managed competition, taxpayers are guaranteed that they are getting the best value for their dollar, regardless of who wins,” Sanders said.

To accomplish the savings and win the contract, the storm water department proposed cutting 13.8 full-time positions or reducing staff by 14.5 percent. It also proposed cutting equipment use by 34 percent.

The agreement is still subject to a sign-off from the city’s labor unions, according to the mayoral announcement.