Facing a revenue decline, Sandy Springs intends to capitalize on its privatization model and find a ready solution by breaking up its government services contracts.
Savings will be generated by parting ways with CH2M Hill, Sandy Springs’ sole provider of government services since its inception, city officials said. This past fiscal year, the city paid the private firm $24 million to handle all of its operational needs outside of emergency services, including public works, community development and parks and recreation.
The city expects to save $7 million by offering individual contracts for seven categories of government service to multiple private firms.
“We are still very committed to the model on which we began this city,” said Sandy Springs Mayor Eva Galambos, who denied that the city was undertaking a change in philosophy. “This is a cost-saving measure.”
Budget projections for the city show an anticipated $2.9 million deficit, with the biggest gap, more than $1.7 million, coming in property taxes.
CH2M Hill is a Colorado-based private firm that was contracted to run services for several metro Atlanta cities when newly created, among them Sandy Springs, Johns Creek, Milton and Chattahoochee Hills.
Sandy Springs has awarded contracts for its government services to the following: InterDev, an Atlanta-based computer consulting firm, for information services; Severn Trent of Fort Washington, Pa., for financial services; San Francisco-based URS for public works; the Collaborative, based in Boston, for communications and community development, and Pasadena, Calif.-based Jacobs Engineering Group Inc. for municipal court and parks and recreation. Total cost: more than $10 million.
The city’s decision to break up its government services contract into seven pieces means the city will assume financial responsibility for items that outgoing contractor CH2M Hill had built into its $24 million contract this year, such as office supplies, fuel for city cars and janitorial services.
Ken Wright, Dunwoody mayor, applauded Sandy Springs’ decision to break up its service contracts.
“We feel like we were the leader on that separate-contracts model,” Wright said. “And we’re glad they followed our footsteps. But other than bragging rights, I think this model is a good one for governments to continue to push efficiencies and good use of taxpayer money.”
Residents hope the switch from CH2M Hill will do more than just save the city money; some hope the new companies will make it easier to discuss community problems.
“What’s been missing is a real line of communication,” said Bill Cleveland, a Sandy Springs resident.
“We need something on a much lower level than the council,” he said. “And I hope that can happen with these new contractors.”
Doug Falciglia, another Sandy Springs resident, said he’s anxious to see how the new contractors provide services. He doesn’t want them to pull back in order to keep their costs low.
“I want the same level of services I’ve had,” he said. “I don’t want to lose anything for the sake of saving money.”
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