Franchising residential trash service is part of the mayor's plan to balance the city's budget.
Thursday morning's report touts a 15% rate reduction, and a big boost to the general fund... But it could mean a loss of about 180 jobs.
City employees have been down this "private" road before.
Solid waste drivers say rates went up when commercial trash service was privatized, contrary to City Hall's promise that there would be no increase.
Marina Magdaleno, Local #39 Operating Engineers: "In franchising out, they can collect a fee. We view that as a tax because that's an additional amount that people have to pay."
Trash haulers believe what the city is trying to do is get to the enterprise fund, which is not supposed to be touched.
By franchising parts of that, the city can collect fees.
And by privatizing neighborhood trash services, the city's looking to gain an extra couple million dollars to help balance the budget.
Roosevelt De Leon, Retired Driver: "They want to get to $2.5 million. Well, residential puts in $4 million into the general fund in fees paid to other departments. So, do the math... $2.5 million, $4 million... You're going to be short $1.5 million at the end of the year."
Here's a look at some of the benefits of privatizing, according to HF&H Consulting, which was hired by the city.
Customer pick-up rates would be reduced by about 15%.
The general fund gets a one-time payment of anywhere from $500,000 to $1 million.
The city would also realize about $2 million in annual net revenue.
But here's what it would cost. Anywhere from 135 to 176 positions would be eliminated.
Lee Brand, Council Member: "It's not about drivers, it's not about the rates. It's all about the city trying to survive financially."
Of those 176 jobs that could be impacted, according to the consultant's report, most of these workers could be employed by the private hauler, but would see about a 25% wage reduction.
City Council will pick up the issue again on August 16th.
TXT 24
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