City Takes First Step Towards Outsourcing Services
May 5, 2014
(West Palm Beach, FL) – West Palm Beach City Commissioners gave their thumbs up today to a proposed plan to outsource portions of the city’s fleet repair and maintenance operations.
The decision follows the recommendation of specialists hired by the city to look at city operations and pick out areas where outsourcing would lead to increases in either savings or efficiency.
Three areas were highlighted as targets:
1) Small Equipment Maintenance
2) Diesel Generator Set Maintenance
As has been a concern in the past when the idea of outsourcing city services has come up, city leaders are hesitant to move ahead if it will lead to workers losing their jobs.
But the experts brought in to look at outsourcing found that current city fleet operations are significantly under staffed and delivering poor service. They told the city commission that sending the work to outside companies would not necessarily be a cost-cutting measure, but it would boost the level of service to where it needs to be.
According to the analysis, current fleet operations cost the city $4.67 million dollars per year. If the city were to staff fleet services at the level needed to deliver proper service, it would cost the city $5.14 million dollars.
However, if the city were to outsource the operations, the cost would remain the same as it is today (approximately $4.65 million dollars), but the service level would significantly increase.
The commission decided to pursue outsourcing of the three targets areas, but stopped short of moving forward with moving towards outsourcing the entire fleet operation.
The city will move in that direction and in the future evaluate how effective it has been regarding cost and level of service.