Thursday, June 30, 2011

CM PRESS # 545

PEACEFUL GAZA FLOTILLA UNDERWAY
Israelis continue with silly propaganda about ships carrying weapons.
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YOU CAN'T OUTSOURCE EVERYTHING

In manufacturing industries it is common to use make or buy charts in determining whether it makes more economic sense to make some sub-parts that go into the manufacture of products manufactured by the firm or to outsource them.

You can most clearly see this with automobile manufacturers who commonly buy brake parts, trim items and much more from other firms that specialize in the manufacture of those parts and who can usually produce them cheaper than the automobile manufacturer can produce them.

However, some things are better done in house by the automobile manufacturers themselves.

As Costa Mesa moves forward with outsourcing some jobs that have heretofore been done in house, it is wise to keep in mind that some things may also be better done in house by our City government with City employees.

Exactly what is best done in house and what is best outsourced is the real question.  Some jobs just lend themselves to being outsourced, but some others need study.

So, as we think along these lines, we logically come to wondering about joining forces with other cities in various cooperative agreements such that rather than outsourcing to the private sector, we might want to outsource or join with other cities to provide services at the best price and quality to the residents of those cities.

BI-CITY OR TRI-CITY COOPERATIVE?


Costa Mesa and Newport Beach are natural partners. Huntington Beach, while somewhat less so, is still in our orb.

It seems to make sense for the cities to have some captive plumbers, some captive electricians, some captive mechanics, just to name three trades, but does it make sense for each of the cities to have their own plumbers, electricians and mechanics? Might there be some efficiencies if these and some other trades are put under a new quasi-public, paper entity that services both or all three cities?

If the new paper entity is created so that it uses existing admin and payroll staff of the cities, and thus has no non-trade overhead, then it might be worth considering.

Of course, whether this is a good or a bad idea will largely depend on whether those in the above and other trades now working for the individual cities are completely busy all the time, or if they have days when there is nothing to do. If the latter is the case, then combining the trades so that they work for both or all three cities might make sense.
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Those are our opinions.  Thanks for reading them.

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