FeedsSchools look at privatization to reduce costs
The Northville Public School District could save up to $1 million annually by privatizing some services, but what about ‘the human factor?’
That’s what employees, teachers and parents wanted school board members to keep in mind as they pondered the move as a way to reduce costs. The board hosted a study session Monday night to look into hiring contractors to perform custodial, food service and transportation services for the district.
“These people are a part of the Northville Public Schools,” said Tom Gleason, a maintenance worker. “They’re not just a value, a number. They’re a face and you have to remember that.”
School board members first brought up the concept of privatization during the 2006-2007 budget cycle, when they established the study of the concept as one of their goals. They’ve since contracted with consultants to assist with the study and developed a request for proposals in September of 2007.
The study comes on the heels of several other attempts to reduce costs in the district, from entering into an energy savings initiative to reducing the number of innovative grants distributed by the district to seeking concessions from employee unions on high-cost items like health care benefits. They’ve dipped heavily into budget reserves, too.
“It’s relentless,” said Schools Superintendent Leonard Rezmierski. “We’re looking all the time at everything we can do to save money.”
“Obviously, we understand that our employees are terrific,” added Board President Joan Wadsworth. “We would not be in this situation if there were easy ways to cut costs.”
The responses were a bit mixed for the district. State requirements for food service contracts delayed that portion of the process, according to Dave Bolitho, assistant superintendent for administrative services.
The district only received one response—from One Button Services—for the transportation contract, he said.
The district received seven bids in response to the custodial services request, though. Each firm had to meet 87 stipulations set forth in the Request For Proposals (RFP) and include benefit and overhead costs with their bid. Alternates were also provided that included the cost of chemical and paper supplies.
Base bids—that just included salary, benefits and overhead—ranged from $1.9 million annual (Enviro Clean) to $2.65 million (Hi-Tec). The Northville district spends about $3.25 million annually on custodial employees. The cost savings stems from the lower wages the private companies pay and the lack of retirement costs they have to disburse.
It’s the intangibles they bring to the table that makes Northville employees a bargain, though, said their supporters.
“Our custodial staff know us and they know the area they work in so well they’re able to see problems and solve problems,” said Laurie Macy, a teacher. “They’re proactive, not reactive, saving the district a lot of money.”
Deborah Roth, a nurse at the Old Village School, talked about the care and compassion custodians showed for the special needs students there.
Others urged the school board to look for ways to bring in additional revenues to offset the costs or warned about hidden costs within the contract. Resident and former school board candidate Steve Lomske questioned whether the firms would lowball the district to get the contract and increase fees later on, negating any savings.
The next step in the process is to interview three of the firms and bring additional information back to the board, he said. The school board will have at least one more study session—scheduled for 7 p.m. on May 14 at the forum at Hillside Middle School.
Wadsworth said the board wouldn’t make a decision prior to the June 10 meeting. She said the board would look at all aspects of the issue before deciding to chart the best possible course of action for the district.
