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There’s nothing inherently bad about cities contracting services out to third parties, according Pelissero. The movement toward contracting out work began in the 1970s, and research has shown that third parties can provide more efficient services in some cases and help cities and their taxpayers save money on payroll and post-retirement benefits, such as pensions, he said. 

John Pelissero, director, government ethics, quoted by The San Francisco Standard.