The folks at LSSI — the company seeking to take over management of the San Joaquin County-City of Stockton library system, of which the Tracy and Mountain House bibliotecas are a part — has a website it created obstensibly to inform locals about what a partnership with the private company would mean. Check it out here.
LSSI says that it can provide increased library services while spending less money, even establishing a reserve fund that could be used for later improvements. When asked how they could do this, officials with the company said that they have a tested and proven business model and turned around the question, asking why the county and city management haven't been able to provide more efficient services.
One answer might be that LSSI wouldn't have to deal with the California pension plan. If LSSI wins management of the library system, current government employees would be terminated and would then have to re-apply for jobs with LSSI. (For its part, LSSI says those employees would have preference in the hiring process.)
But since it's a private company, LSSI wouldn't be responsible for bolstering their employees' pension plans via CalPers — though an LSSI spokesman said that the company offers a 401k and a package of benefits that's "competitive" in the private sector.
Regardless of how LSSI plans to get there, any contract with the local governments would obligate LSSI to meet certain service levels and to meet them with a limited amount of money. In other words, if the company can't give the county/city the proper bang for the buck, that's LSSI's problem.