THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, September 18, 1996 TAG: 9609180629
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY LANE DEGREGORY, STAFF WRITER
LENGTH: 77 lines
Burns Anderson's small car care shop now takes care of dozens of state transportation vehicles.
Wesley Fennell's hauling company installs reflectors along miles of state-maintained pavement.
And Colony Tire repairs wheels and inner tubes of highway equipment that used to be serviced in state-owned garages.
In the past two years, transportation officials say, they have saved taxpayers about $3 million by contracting private firms to do work previously performed by state personnel.
The percentage of state transportation funds paid to the private sector has increased from 33 to 35 percent since January.
``We've tried a lot of things, farming state work out to private companies. We do them if they save money in the long run. We can them if they don't work,'' said Anthony Roper, an assistant engineer for the northeast division of North Carolina's Department of Transportation.
``With private companies working on our vehicles, there's not as much down time for the state equipment. They keep our trucks on the road more because they work Saturdays and at night where our guys only worked during the week and had to keep the equipment off the road,'' Roper said this week.
``People say over and over again that we need less government - and that's us - so we're cutting back in a lot of areas.''
With 551 employees working in 14 counties, the northeastern division of the transportation department includes a bigger area than any other district. Officials traditionally have hired private contractors to build bridges and most major new roads. On Wednesday, they signed $59 million in contracts for the Chowan River bridge and new Edenton bypass.
But in the past three years, transportation managers also have increasingly sought private firms to mow along roadways, resurface streets, clear shoulders, maintain equipment and even survey potential thoroughfares.
The state contends private companies often can perform jobs cheaper than state personnel. And by signing one-time contracts, instead of hiring new full-time workers, transportation officials save taxpayers long-term costs such as employee benefits and retirement. They also don't have to pay any overtime because the contract cost holds whether extra hours of work are required or not.
``We've cited three positions to be eliminated this year and have seven others we're holding open,'' Division Engineer Don Conner said. ``We've cut 11 additional temporary positions that we had hired people for to do maintenance work.''
In personnel costs alone, Conner said, his division has saved almost a quarter-million dollars this year. Mowing costs have dropped from $2.3 million to about $1 million. And bills to put reflective pavement markers along roadways have decreased by $30,000.
``Private contractors are better equipped to do some of this work than the state. And we can't touch their costs - in some cases - because of our own overhead and expenses,'' said Conner. ``No one's been fired from state jobs. All of the positions have become vacant and we've held 'em open.
``Our employees see us as trying to eliminate them. But we're not. We're just trying to farm out those things that lend themselves better to private contractors.''
R.V. Owens III represents the northeastern part of the state on North Carolina's Board of Transportation. For more than three years, he's been pushing Conner and Roper to privatize portions of their work. At first, the engineers were skeptical of the scheme.
Now, they say they're cautious - but optimistic.
``There hasn't really been a lack of control we worried about with private firms,'' Conner said. ``If the contractor doesn't perform to our specifications, we just don't hire them back. And our people still do all the final inspections.
``We're going to max out where we've got contracts on all the work that can be farmed out,'' said Conner. ``We're not there yet. But that point's coming.''
Owens said he doesn't want to serve another four years on the transportation board once his appointment expires in November. But he hopes the push toward privatization will continue in his absence. ``People want the most efficient government they can get,'' Owens said.
``I'm trying to prepare for tomorrow. We're surgically removing areas of the state's transportation department. We're taking the fat out over time.'' by CNB