Our Principles

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Federal, state, county and local government bodies manage a variety of public resources and services that are a public trust and essential to our society. These government bodies are directly responsible to the public, which helps to ensure these assets and services are managed for the public good, rather than for private gain.

Privatization of public resources and services is something that can and has adversely impacted taxpayers, ratepayers, service quality, the environment and jobs. Many of these problems arise because private companies have little or no accountability to the public or the promises they make to communities when privatization contracts arise. There is no reason to assume that privatization will provide better results for communities than government currently provides.

To protect communities from the damaging impacts of privatization contracts, the following minimum standards need to be set for all contracts that privatize public services and assets:

Protecting the Bottom Line of our Communities:
Privatization contracts must provide cost savings to communities including the aggregate of fees, fairs, rates, taxes, shifting revenue streams and other charges. No privatization contract should allow these rates to increase faster than historical levels.

The public must receive fair long-term value for assets. Public assets should not be sold at a discount and no contracts should be made longer than 10 years.

Prior to soliciting bids, personnel performing services must be allowed to submit a proposal to reduce costs and increase the efficiency of agency operations. The agency shall review the proposal after the completion of bidding and consider this alternate proposal when determining whether the bids received will provide savings for the agency. The agency shall not disclose the alternative proposal to reduce costs prior to the completion of the bidding.

Upon the conclusion of a privation contract a community must either rebid the contract assume government control.

Protecting Service Quality for Communities:
The services a private contractor provides to a community must be equal to or greater than the current service that is provided to a community into the future, and privatization cannot have a negative impact on low-income and minority communities.

Employees of a private contractor must have certification, licensing equal to or exceeding current employees providing a service.

Employees of a private contractor must receive continuing training that is equal to or exceeds that currently provided by the agency they are replacing or necessary to address any changes to industry standards and technology.
Transition protocols must be developed and implemented to ensure an efficient and seamless transition to a private contractor.

Protecting the Environment in our Communities:
Contractors must maintain environmental standards that are at least as good as those currently being provided by the agency providing the service and provide an action plan to upgrade specific operations that are out of compliance with current standards. If standards are increased during the contract period, then the private contractor must also abide by those higher standards.

Contractors entering bids must not have a record of substantial or repeated noncompliance with federal, state or local laws pertaining to environmental protection.

Protecting Workers:
Rate of wages and benefit for each position may not be less than the rate paid to comparable current agency employees.

Workers must have the right to present an alternative proposal before bids for privatization contracts can be solicited.

Private contractors must hire New Jersey residents, and give preference to those residing within their jurisdiction of their service.

The agency must give current agency employees displaced or dismissed from agency employment, in whole or in part, because of the privatization contract, right of first refusal on positions with the contractor and other vacant agency positions to which the employee may bequalified.

The agency shall prepare a plan of assistance for each employee displaced as a result of the contract, including any training needed to place the employee in a position with the contractor or the agency.

Contractor making bids must not have substantial or repeated noncompliance with any state or federal law pertaining to labor relations, workplace standards, occupational safety andnondiscrimination.

Stopping Corruption:
Annual independent audits will be required of privatization contracts to ensure compliance with cost savings and other requirements outlined in these principles.

Contractors will be ineligible to bid on contracts if they have a familial or financial relationship with any person who has a decision-making authority over the awarding of the contract. This would include direct and ongoing financial arrangements such as a partner in a law firm or family members and indirect short-term relationships such as a family member purchasing real estate from a decision maker.

Contractors submitting bids must include a disclosure of all political contributions made in the last five years by the entity, their employees, agents and/or officers either directly or indirectly to any elected officials, political organizations, political action committees or political parties.

Government bodies must have the ability to cancel contracts, without penalty to the governing body or community, when compliance with cost savings and other requirements outlined in these principles are not met. And if a government body fails to act in such an instance, those adversely impacted by the privatization should be able to petition to cancel the contract and have the ability to recoup legal fees in the event the contract is canceled due to the actions of the petitioners.

In addition to other licensing requirements, contractors must not be eligible to bid on contracts until they have a license to do so. Contracting licenses should only be held by contractors who attend classes that ensure their knowledge of contracting standards. Contractor with substantial or repeated noncompliance with any local, state or federal laws shall be ineligible to hold a contracting license.

Penalties, sanctions and criminal charges will be levied against those found to fraudulently represent expected savings or ability to comply with other provisions of these principles.

Protecting Democracy:
Contractors who submit bids cannot have made a campaign contribution to electoral campaigns in NJ for five years preceding a contract and during the term of any contract they may receive.

Private contractors must comply with open record and public meeting requirements of the public entities they would replace.

Communities who do not have direct control over the provision of public services, but receive public services that are proposed for privatization, must approve of any privatization contract that would impact these services.
Privatization contracts that are $250,000 or more must be put before the residents of a community for a vote. Any additional costs associated with conducting the election must be paid for by the private entity that would receive the pending contract. A vote by the residents could not void any of the protections reflected in these principles.

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