Category Archives: Insourcing/municipalization

City of Fort Wayne takes fleet maintenance in house; savings expected

Source: News-Sentinel, July 11, 2018

In a move expected to improve service and reduce costs, the city of Fort Wayne will no longer outsource fleet maintenance services and will instead bring operations in-house. Ending the contract with outside vendor, First Vehicle Services, is expected to save the city nearly $350,000 a year. … The new contract will also allow the city to take advantage of federal and state cooperative agreements, reducing costs on vehicle parts. Current workers for First Vehicle were offered positions in the new arrangement and most accepted. The city will hire 26 employees and will take over the operation Sept. 30.

Despite problems, Michigan is hiring Trinity employees to work in its prison kitchens

Source: Tom Perkins, Detroit Metro Times, June 19, 2018
 
For several years, private food service employees in Michigan’s prison kitchens have been a consistent problem. … Despite that, the Michigan Department of Corrections is now hiring some of Trinity’s employees, and they will be unionized state workers within the next several months. … The employees will be a part of the American Federation of State, County, and Municipal Employees union. Nick Ciaramitaro, legislative director for AFSCME Council 25, didn’t immediately respond to a request for comment. …

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Michigan’s $56.8B budget tackles prisons, potholes and pot
Source: Emily Lawler, MLive, June 12, 2018
 
The House and Senate on Tuesday voted to approve a $56.8 billion budget for Fiscal Year 2019, putting more money toward things like roads and regulating medical marijuana facilities while saving $19.2 million by closing a prison. … In his budget proposal earlier this year, Snyder moved to get rid of the contractor altogether and go back to state workers. The legislature followed suit, putting an extra $13.2 million into food services and authorized 352 new full-time equivalent employee positions.    Overall the Department of Corrections gets $2 billion in the budget. …

Prison guards: Michigan is deliberately hiding extent of prison kitchen horror show
Source: Tom Perkins, Detroit Metro Times, May 23, 2018

Since Michigan privatized its prison kitchens in 2014, problems with Trinity and Aramark’s employees have been well documented. But of all the issues, one that corrections officers say hasn’t received much attention is also perhaps the most dangerous — gangs are trying to exploit Trinity’s weaknesses to exert control over the food supply. … Officers say the kitchens are vulnerable because Trinity is understaffing them, undertraining employees, and underpaying employees. They allege that the Tampa-based company has unwittingly hired gang members along with inmates’ family members and ex inmates. But Trinity’s problems extend well beyond gangs. Documents show some Trinity employees have supplied drugs to inmates, or taken drugs or drank on the job. Trinity employees have had sexual contact with inmates so many times that one officer tells us, “We can tell which new [Trinity] employees will walk out of the prison with a boyfriend.” …

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MEU fails by three votes

Source: Sarah Strandberg, The Decorah Newspapers, May 14, 2018

The special election May 1 on whether the city of Decorah should be authorized to pursue a municipal electric utility (MEU) has been defeated by three votes. Following a recount Friday morning, two more “yes” votes were added, bringing the final total for the referendum to 1,385 “no” votes to 1,382 “yes” votes. Alliant Energy is the city’s current electrical provider. A citizens group, Decorah Power, asked the city to explore the possibility of a MEU. … Since the MEU was defeated, the matter cannot be brought back for a vote for another four years. … The “incredibly close” vote is a testament to the work of Decorah Power volunteers and supporters, Decorah Power volunteer Emily Neal said after the recount. … “We hope that the Iowa Utilities Board and Iowa lawmakers are paying attention to what happened here. If the role of the Iowa Utilities Board is indeed to look out for the consumers’ best interest, then the process for municipalizing needs serious reconsideration. …

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Power struggle: Iowa muni campaign heats up ahead of public vote
Source: Karen Uhlenhuth, Energy News Network, April 9, 2018

Voters in Decorah, Iowa, will decide May 1 whether they want the city to move ahead with a proposal to leave their current electricity provider and create a city-owned utility to take its place. … According to municipalization advocates, the utility, which is based 100 miles south in Cedar Rapids, has hired a community liaison to represent it at community gatherings. … Both camps developed feasibility studies, with vastly differing conclusions. Interstate’s study found that creating a municipal utility would be very costly and raise bills for customers using the 8,100 meters in the Decorah area. Decorah Power’s consultant concluded that a city utility would serve the community well and through 2023 charge at least 4 cents less per kilowatt hour than Interstate has projected. Estimates of what the city would have to pay for Interstate’s assets and startup and application fees were similarly at odds. … The election’s outcome won’t have a binding impact but will convey the thoughts of the city’s 5,250 registered voters, including some of the 2,000 Luther College students, whose election participation is once again the source of contention. …

Iowa town’s municipal utility effort is financially feasible, consultant finds
Source: Karen Uhlenhuth, Midwest Energy News, January 17, 2018

A northeastern Iowa community could lower its electric bills by creating a municipal-owned utility, according to a feasibility study presented to its city council Tuesday. Supporters of an effort to create a city-owned electric utility in Decorah, Iowa, got a boost this week from a consultant’s report that concludes the move is financially feasible. … Talk of a municipal utility surfaced after several attempts to develop renewable energy in the city ran into policies of Interstate Power and Light, the investor-owned utility that currently serves Decorah and much of the state. …

… Although the feasibility study, conducted by NewGen Strategies & Solutions and two other consultants, signaled that municipalization could work, Johnson said he’s aware of what a long and arduous process it would entail. The City of Boulder (Colo.), for example, last November approved a tax measure that will provide the funds needed to continue exploring the possibility of creating a city utility. That process began seven years ago. … Every year there are communities that start to explore creating a municipal utility to take the place of a for-profit utility, Schryver said. Although motivations tend to vary, she said that the desire for clean energy has been the main driver recently. A few new municipal utilities have taken shape lately. In California, the South San Joaquin Irrigation District, which provides water service, recently won approval from state authorities to create an electrical utility as well, meaning it will displace Pacific Gas & Electric in that locality. … Jefferson County in Washington state formed a municipal utility in 2013 to serve about 18,000 customers who formerly purchased electricity from Puget Sound Energy. Three smaller communities — two in Alaska and one in Ohio — also created new municipal utilities in the past few years, according to Schryver. Although exploration of municipalization doesn’t always result in a city-owned utility, Schryver said it can effect change in other ways. In Minneapolis, for example, efforts to depart from Xcel Energy ceased when the utility agreed to expand its clean-energy portfolio. …

Mayor Curry ‘will not submit JEA privatization plan to Council’

Source: Jim Piggott, News4Jax, April 26, 2018
 
Months into a political firestorm over the prospect of the city selling the JEA, Jacksonville Mayor Lenny Curry issued a statement Thursday morning, writing, “I am choosing to state unequivocally that I will not submit any JEA privatization plan to the City Council.” … While Curry has been consistent in his public statements that he is not pushing the agenda, members of City Council and the council auditor believe that his administration was working behind the scenes to valuate the electric/water/sewer utility for possible sale. …

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JEA names private investor, a utility newcomer, interim CEO 
Source: David Bauerlein and Nate Monroe, Florida Times-Union, April 17, 2018

The JEA board of directors named a 38-year-old private investor with little experience managing a large utility the agency’s interim chief executive officer Tuesday, rejecting a bid by the finance chief to remain in the top spot, and marking a major departure from the kind of leaders JEA courted in the past. Aaron Zahn immediately assumed the interim CEO role and refused to take questions after the board meeting. The move to hire Zahn was contingent upon making a push to retain Melissa Dykes, the agency’s chief financial officer, as a high-level executive to run the day-to-day operations of the agency. Dykes, whose own bid to remain the interim CEO only garnered two votes from the five-member board, said she was open to staying but it’s not clear whether she will. …

Opinion: JEA union leaders explain opposition to sale
Source: Kathleen Crowe, Valerie Guiterrez, Rick Lehman, Ronnie Burris, Randy Hilton, April 15, 2018

Question: Would a private utility better serve the city of Jacksonville and the JEA ratepayers of Northeast Florida better than JEA? Answer: It is the official position of the JEA union leadership that a privatization of JEA would have severe, harmful and long-term detrimental economic impacts on all stakeholders. … While we have attempted to counter much of the noise regarding the privatization of JEA, there is a very simple reason for not selling JEA that overcomes all the noise. Any company or entity willing to buy JEA, whether it is $1 billion or $20 billion, must have the resources to ensure the price it pays will definitely be paid back in full with interest. This is not like selling your house for a premium and walking away with no further commitment to that house. The customers of JEA will still be on the hook for the premium paid in the initial purchase price, as well as the interest or earnings above and beyond that premium paid to the city. …

Jacksonville utility unions pan potential JEA sale as ‘harmful’
Source: A.G. Gancarski, Florida Politics, April 6, 2018
 
Even as well-connected lobbyists for major utility companies hover over Jacksonville’s JEA ahead of a potential sale, five utility unions combined in opposition to any moves Friday. Per a statement from the five unions: “It is the official position of the JEA Union Leadership that a privatization of JEA would have severe, harmful, and long term detrimental economic impacts on all stakeholders.” … Signatories include American Federation of State, County & Municipal Employees, International Brotherhood of Electrical Workers. Jacksonville Supervisor Association, Labors International Union of North America, and the Professional Employees Association. …

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Cobo Center to save $200,000 annually by bringing janitorial services in-house

Source: Kurt Nagl, Crain’s Detroit Business, April 13, 2018

Cobo Center is on track to save around $200,000 annually on housekeeping by bringing those services in-house. The Detroit venue parted ways with The Professional Group, a janitorial services provider based in Detroit, last October and is pleased with the savings and performance of the restructured team, said Claude Molinari, general manager of Cobo. The venue’s budget for housekeeping this year is $1.75 million a year, which would mean a savings of 10 percent compared to the cost last year, Molinari said. Cobo, which is operated by the Detroit Regional Convention Facility Authority and managed by SMG, had contracted with Detroit-based ABM Janitorial Services for several years prior to The Professional Group winning the bid in 2016. The Professional Group terminated the contract after one year. … Molinari said that under the new management structure the average wage of a full-time cleaner is $13.50 plus benefits — up from an average of $11.10 plus benefits before the new arrangement. …

Whittier-area schools have new bus provider — it’s the high school district

Source: Mike Sprague, Whittier Daily News, April 14, 2018

When Hun Joon “Paul” Lee, a 19-year-old special needs Whittier Union High student, died after being left inside a parked, hot school bus in 2015, his death sparked a movement that culminates with what is essentially a new bus provider for seven Whittier-area school districts. Whittier Union High School District has left the Pupil Transportation Cooperative, or PTC, which had been providing bus transportation since 1984. Instead, starting July 1, it will run the buses for all seven PTC member districts — East Whittier City, El Rancho, Little Lake, Los Nietos, South Whittier and Whittier City. … After his death, Lee’s family received $23.5 million in a settlement with the PTC. In turn, the PTC sued the high school district last year for partial compensation of the settlement. That lawsuit since has been dismissed. Now, with the contracts approved Tuesday, the changeover from the PTC to the high school district is nearly ready to go. …

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Bus Company to upgrade safety policies after death of special-needs student in Whittier
Source: Miriam Hernandez, ABC7 Eyewitness News, September 16, 2015

Immediate safety upgrades will be put into place by Pupil Transportation Cooperative following the tragic death of a 19-year-old man with special needs in Whittier, the company announced during a press conference Wednesday. … PTC will be pushing for electronic notification devices to be placed in school buses and two adults will now monitor every bus to ensure no student is left on board. … DeLapp said the substitute driver was a 10-year veteran who may not have known Lee’s limitations. Yet there is evidence the driver ignored what is characterized today as a standard child check procedure, which is spelled out in the bus operator manual. “Walk the entire length of the bus interior, front to rear, and check for students who may still be on board,” the manual states. DeLapp said the procedure was signed off, but yet Lee was still inside the bus. …

Special Needs Student Found Dead on School Bus May Have Been Waiting for Instructions: Family
Source: Hetty Change and William Avila, NBC Los Angelos, September 14, 2015

When family members learned that Lee had been left on a school bus on a hot Friday afternoon, they thought he may have stayed there waiting for a cue. The 19-year-old was found alone and unresponsive. Police could not revive him. Lee, or Paul to those who knew him, had a severe form of autism. Leslie Perez’s mom was his caregiver. She says her mom waited outside for Lee’s bus to drop him off at 3:30 p.m., like she does every afternoon, but it never showed up. Police found the adult school student lying in the aisle near the front of the bus parked in a Whittier school district parking lot. He was declared dead — less than two weeks before his 20th birthday — after lifesaving efforts failed. … It’s also unclear whether drivers with the bus company, Pupil Transportation Cooperative, are required to do head counts. Family members say a different bus driver had picked him up that morning.

Napolitano addresses higher education access, student support at LA event

Source: Anirudh Keni, Daily Bruin, March 19, 2018
 
University of California President Janet Napolitano said at an event Monday the University is working to expand access to higher education by accepting more transfer students and improving academic advisory and student support programs. Napolitano spoke to UC regents and local high school students at City Club in Los Angeles about the different ways the University is helping more people attend the UC. Napolitano was briefly interrupted by members of the American Federation of State, County and Municipal Employees 3299, the UC’s largest union, protesting UCLA’s decision in August to end its contract with ABM Industries, a facility management company that employed valet workers at the Ronald Reagan UCLA Medical Center. The protesters, who chanted “UCLA, hire the valets,” claimed UCLA’s decision has led to workers losing their jobs or being transferred to other locations that do not offer the same wages or benefits UCLA provides. …

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LACMA’s Art + Film Gala honors Mark Bradford and George Lucas
Source: Deborah Vankin, Los Angeles Times, November 5, 2017

Earlier in the evening, UCLA service and hospital workers who are members of the American Federation of State, County and Municipal Employees union tried to steer some of the focus to the Westside by protesting the Ronald Reagan UCLA Medical Center’s treatment of contract valet workers. They chanted,“David Geffen make it right, support valet workers’ rights,” referring to the philanthropist who recently pledged $150 million toward the construction of a new Peter Zumthor-designed building for LACMA. “More than 40 immigrant service workers have lost their jobs,” union organizer Paul Waters-Smith said. “David Geffen is the most prominent backer to UCLA Health. He can, with a phone call, make it right.”

UCLA student groups advocate for medical center valet workers 
Source: Sharon (Yu Chun) Zhen, Daily Bruin, October 24, 2017

UCLA labor- and immigration-justice groups held a town hall meeting Monday night to urge UCLA to create more insourced positions for contract valet workers at the Ronald Reagan UCLA Medical Center.  … Victoria Salgado, a union organizer at the American Federation of State, County and Municipal Employees Local 3299, the UC’s largest union, said many workers are concerned for their job security because they received unclear notifications in July and September about their employment dates. … Owen Li, a senior researcher for AFSCME Local 3299, said the UC has been increasing executive pay while cutting benefits for workers.  “The University of California literally wastes billions of dollars on hedge funds, management bloats and on these crazy executive perks,” he said.  The UC has 67 percent more overall staff than in 1993, and the number of senior managers has increased by 327 percent since 1993, Li added.  Li said most of the jobs UCLA is offering to current valet workers are part-time jobs, which he he thinks do not offer enough pay to live on. …

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Over 1,600 towns, cities worldwide now reversing privatization

Source: Michael Makabenta Alunan, Business Mirror, February 13, 2018
 
Over 1,600 cities and municipalities in 45 countries have acted to claim back public utilities and services from private companies, of which 835 were successful cases, showing people’s initiatives to wrest control over earlier privatization moves the past two to four decades that only resulted in spiralling prices, nondelivery of services to the poor and more misery. … Significant deprivatization models and best practices worldwide were also discussed in a book, entitled Reclaiming Public Services, which is a compendium of studies documenting actual experiences from different countries and edited by Satoko Kishimoto of Transnational Institute and Olivier Petitjean. … Conference delegates told journalists that while privatization and the neoliberal policies the past decades may claim to have contributed to growth, they helped worsen global inequality. … Even in the United Kingdom where privatization started under Thatcher, there are already 64 cases of public takeovers from the private sector, called in Europe as “municipalisation” of running services for people not for profit. …

MT plans to take over developmentally disabled case management detailed

Source: Jonathan Ambarian, MTN News, January 17, 2018

Leaders with the Montana Department of Public Health and Human Services now believe they will be able to maintain targeted case management services for 3,600 Montanans with developmental disabilities. Four nonprofits – Helena Industries, AWARE, Opportunity Resources and the Central Montana Medical Center – currently receive contracts from the state to provide case management for these Montanans. However, DPHHS announced last month that, because of state budget cuts, it would end the contracts and take over the responsibility itself. … DPHHS leaders initially announced they would be able to keep providing case management for 2,700 people who receive care through comprehensive Medicaid waivers. But Matthews told reporters Tuesday they now believe they can also serve another 900 to 1,000 who are covered on a state plan or are on a waiting list for a Medicaid waiver. … Department leaders say taking over case management services themselves will save $2.5 million by June 2019. …

Library groups call for inquiry after Carillion collapse

Source: Natasha Onwuemezi, The Bookseller, January 17, 2018

Libraries body CILIP has called for a public inquiry to investigate whether the government knowingly issued contracts for the delivery of public services to a failing company following the collapse of Carillion. The government services provider has gone into liquidation after losing money on big contracts and running up huge debts of around £1.5bn, putting thousands of jobs at risk across multiple sectors. Carillion has run several public library services since 2013, including Hounslow, Ealing, Croydon and Harrow. Hounslow terminated its contract with Carillion last August and on Tuesday (15th January), Croydon Council stepped in to “secure the long-term future” of all its libraries and “guarantee the jobs of library staff” by taking the running of its library service back in house. However, the councils of Ealing and Harrow have told The Bookseller they have not as yet terminated their contracts with Carillion. …

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Croydon libraries to be run by the council again to ‘protect jobs’ after Carillion collapse
Source: Andy Datson, Croyden Advertiser, January 15, 2018

Croydon Council has announced it “intends” to terminate its contract with troubled contractor Carillion and that it will take back control of running libraries across the borough, “protecting” jobs in the process. Construction giant Carillion announced on Monday (January 15) that it is to go into liquidation, putting thousands of jobs at risk across multiple sectors…..

Now Carillion remove home library service from the disabled
Source: Inside Cryodon, November 20, 2017

Carillion, the building company which runs Croydon’s public libraries, has been accused of “blatant discrimination” against the disabled over plans to withdraw the home library service from January 1, something described as a “disgraceful and stupid decision”…..

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