Schools’ custodial pact OK, firm isn’t

The unified Memphis and Shelby County school board, under pressure from a federal judge to pass a unification plan with 172 recommendations, ultimately approved a motion Thursday night to outsource custodial services.

The outsourcing was one of the Transition Planning Commission’s most controversial recommendations. But the proposal to award the contract to GCA, the current contractor for Shelby County Schools, was defeated on a vote of 9-12.

Chairman Billy Orgel announced an intention to attempt to rescind the decision next week. Interim Memphis City Schools Supt. Dorsey Hopson

asked for more time, at least until next Thursday’s special called meeting, to renegotiate or rebid the contract.

The board moved on to debate another cost-saving measure, to “harmonize” insurance coverage across the district, so that current MCS employees would be forced to pay more out of pocket for premiums to meet what current SCS employees have been paying out of pocket.

At the beginning of the debate, Memphis board member Jeff Warren spoke directly to staff, teachers and the public, imploring them to go directly to the County Commission and demand more money for local education. Otherwise, he said the board has to make excruciating choices, between hurting the pocketbook of teachers and staff or “going into the classroom and firing teachers” to make up the budget shortfall.

“We have to come up with the best possible plan to keep the money in the classroom if the funding body will not give us the money,” Warren said.

Kevin Woods, a recently elected board member, also cited the commission’s refusal at a weekend budget retreat to entertain the school system’s full budget request.

The original custodial proposal was to extend the outsourcing of custodial services from the current Shelby County Schools to the entire unified district before it opens in the fall — a mandate for the board that U. S. Dist. Judge Samuel “Hardy” Mays expressed a great deal of concern about in a hearing earlier this week on the status of the schools consolidation lawsuit.

The in-house Transi- tion Steering Committee estimated in its Feb. 12 budget presentation that the district could save $13 million by outsourcing custodial services in what are now the city schools.

Ultimately, it was determined that accepting the bid of GCA would save $11.5 million, a bit more if the board approves school closings.

The case for the company was made by several school officials, including SCS administrator Brian Shipp, who said familiarity with GCA as well as its low bid played into the recommendation.

Several officials of Aramark, which also had submitted a bid on the project, appeared before the commission to argue for reconsideration, promising to lower the company’s bid to match that of GCA, spend more money than GCA on subcontractors and establish a training program.

The argument had appeal with a number of board members, who argued that the board’s responsibilities extended beyond budgetary considerations and into the community at large.

There were concerns among some commissioners who wanted more information on the factors that led to the recommendation. Some were simply opposed to the idea of outsourcing because of its effect on the community and employees who would have to take a pay cut, although they had basically been promised jobs with the contractor if they could pass background checks.

Both Hopson and SCS Supt. John Aitken reminded board members that they were in a tight budgetary situation.

“Let’s remain focused on where we are and how we got to this point,” Aitken said, pointing out that the money saved by outsourcing custodial services would save the equivalent of 150 schoolbased positions.

“We’re sensitive to the trade offs,” he said, “but we want you to be aware of the total ramifications.”

Commissioner Sara Lewis provided high drama during the debate, alluding to an alleged prearrangement on the contract and storming out of the meeting at one point, threatening to expose whoever was responsible.

After saying she had been given information on the contract at a casino in Las Vegas, she added: “I am not going to do this, and I’m going to do everything in my power to expose what has occurred … You all know who I’m talking about. I’m going to find my lawyer.”

She eventually returned, but remained silent for the remainder of the debate.

When the outsourcing debate finally wrapped up, the commissioners turned quickly to the question of proposed changes in the health insurance coverage for employees, which had been debated at length previously.

Approved with relatively little discussion were proposals to shift to a 63 percent effective board share of the premiums for current employees and retirees and to withdraw coverage from employees’ spouses who are covered elsewhere. MCS currently provides a contribution to premiums for its employees at a 70 percent effective rate.

The package is expected to erase about $13.3 million in red ink from the district’s inaugural budget, according to the Transition Steering Committee’s calculations. The board voted 17-3, with three absent, to approve the recommendation.