Category Archives: Insourcing/municipalization

Valet workers transferred from UCLA fear insourcing, loss of benefits

Source: Sharon (Yu Chun) Zhen, Daily Bruin, October 8, 2017
 
Edwin Cifuentes, a contracted valet worker at the Ronald Reagan UCLA Medical Center, said many valet workers who are being transferred away from UCLA are worried their new jobs will not offer them the same wages or benefits UCLA provided. … In August, UCLA ended its contract with ABM, a facility management company that employed valet workers like Cifuentes at the Ronald Reagan UCLA Medical Center. Although ABM had employed about 80 valet workers at the hospital, the university created about 35 in-house positions and has also hired part-time student workers.  Workers UCLA did not rehire are set to leave by Oct. 30, said Victoria Salgado, union organizer at American Federation of State, County and Municipal Employees Local 3299, the UC’s largest union. … Throughout the summer, ABM workers have protested the insourcing alongside AFSCME, including at the medical center in July and at the inaugural UC public law conference in September.  John de los Angeles, communications director for AFSCME, said when workers interviewed for the inhouse positions at UCLA, UCLA management discouraged workers from participating in union activities. In return, AFSCME issued a cease and desist letter in July. …

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UC employees, students protest in support of contracted valet workers
Source: Sharon (Yu Chun) Zhen, Daily Bruin, July 31, 2017
 
About 500 University of California workers and students protested the Ronald Reagan UCLA Medical Center’s treatment of contracted valet service workers outside the medical center Friday.  Valet service workers, who help park visitor and guest vehicles at the medical center, are contracted through ABM, a facility management company. Beginning in August, however, the hospital will lay off many valet workers because it will no longer be contracting out valet services, said hospital spokesperson Tami Dennis. Instead, it will offer in-sourced full-time, part-time and student positions. … John de los Angeles, communications director of American Federation of State, County and Municipal Employees 3299, the UC’s largest union, said the medical center would only offer 30 positions for the in-sourced program, even though the program currently employs 80 workers.  Several students and workers said they think the hospital will carry out the layoffs because the contract workers received a pay raise. …

CalOptima Takes Mental Health Administration In-House

Source: Thy Vo, Voice of OC, September 11, 2017

CalOptima, the county’s health care plan for low-income and elderly residents, now will administer its own mental health care services, after the agency voted to phase out its $41 million-a-year contract with Magellan Health. The agency’s Board of Directors voted Sept. 7 to take administration of mental health services for a majority of the health plan’s members in-house, including responsibilities like contracting with mental health providers, processing reimbursement claims and overseeing therapy programs for patients with autism. Patients still will see outside specialists for treatment. This will be the third time in three years the agency has made a major change in the management of its mental health services, and the change comes just one year after the agency approved its original contract with Magellan. … CalOptima is the federal and state financed health plan for about 800,000 county residents, roughly a quarter of the population. … The change was prompted in part by a contract dispute between CalOptima and Magellan in July, which may have left some patients without mental health care for nine days when the company refused to process Medi-Cal payment claims. …

Niles Township High School Union Contract Ushers In New Era

Source: Tom Robb, Journal & Topics Online, August 23, 2017

The Niles Township High School Dist. 219 Board of Education on Aug. 15 approved a new contract for the Niles Township Federation of Teachers and Support Staff, who earlier the same day voted to accept the July 1, 2017-effective agreement. … Under the new agreement, 37 staff support positions currently performed by outsourced contract workers will become direct district employee positions. The contract also covers 369.5 full-time teachers and 205 support staff.
Maintenance, clerical and librarian jobs that were contracted would become district union employee positions. Cafeteria, janitorial, security and transportation workers would remain contracted. District and union officials said district employees would have preference in hiring to fill those positions.

… The shift from contracted workers to direct district employees is significant. According to union President Ann Goethals, former Supt. Nanciann Gatta was on record as wanting to have only teachers and paraprofessionals working as classroom teacher aids to be in union bargaining units. Before her departure in 2015, Gatta told the Journal she was trying to outsource non-core educational positions in the district. Supt. Steven Isoye said the having the majority of workers in the school as direct employees generates better productivity. Union members complained bitterly at a school board meeting last year about contracting and outsourcing positions. …

Harris County Nixes Private Prisons

Source: Allison Lee, Houston Public Media, August 1, 2017

Private prisons usually get a bad wrap from advocates, for a lack of oversight. But, that wasn’t main reason behind Sheriff Ed Gonzalez shifting the department away from private prisons. … “Within three months, we were able to move everybody back in house,” Gonzalez said. … According to the Harris County Sheriff’s office, the department spent $4.5 million on outsourced inmates last fiscal year. This fiscal year, they’re projecting to spend just under $300,000 (for what’s been spent before the transition). … He says there are also other benefits to bringing inmates back in-house. “We have more control of what we’re doing. You know, the medical records, things like that,” Gonzalez said. Another benefit? Loved ones can visit inmates, without having to travel to other municipalities or cities.

Is Privatization on Its Way Out?

Source: Donald Cohen, HuffPost, July 27, 2017

According to a new report by the Transnational Institute, cities across Europe are increasingly deciding to reclaim public goods like water, energy, and health care from corporations and private investors. For example, fourteen cities in the Catalonia region of Spain have brought their water under public control in the past two years alone. … As always, the movement is starting at the bottom.  There’s Milford, Connecticut, a small city pushing to purchase its water system after learning that the corporation that owns it plans to raise rates by nearly 30 percent.  There’s New York, which just brought back state workers to provide IT help desk services after concerns about rising costs in a contract with IBM.  There’s Atlantic City, New Jersey, which earlier this month passed an ordinance to ensure residents get to vote on any action by the state to sell or lease the city’s water system.  There’s Baltimore, Maryland, where teachers just recruited hundreds of new public school students after weeks of knocking on doors. And Miami, Florida, where parents and teachers rallied over the weekend to demand more funding for public education and regulation of charter schools.

Read full report.

State workers to return to help desk jobs that had been outsourced

Source: Rick Karlin, Times Union, July 21, 2017
 
Less than a year after it started, the state Office for Information Technology Services is backing away from the outsourcing of its help desk, and will be once again have state workers assume many of those responsibilities. Soon after it began last fall, representatives of numerous state agencies complained they couldn’t get through to the newly privatized help desks, which were based in Buffalo but were backed up in Boulder, Colo. There had also been worries about the cost of the outsourcing. …  The agency said it will continue to work with its main outsourcing contractor, IBM, but state employees will provide on-site assistance at the various state agencies. The process will begin this month in the Capital Region. …

Towns sell their public water systems — and come to regret it

Source: Elizabeth Douglass, The Washington Post, July 8, 2017

Neglected water infrastructure is a national plague. By one estimate, U.S. water systems need to invest $1 trillion over the next 20 years. Meanwhile, federal funding for water infrastructure has fallen 74 percent in real terms since 1977, and low-interest government loans have not filled the gap. … The prospect of offloading these headaches to for-profit water companies — and fattening city budgets in the process — is enticing to elected officials who worry that rate hikes could cost them their jobs. Once a system has been sold, private operators, not public officials, take the blame for higher rates. But privatization will not magically relieve Americans of the financial burden of upgrading their water infrastructure. … One of the biggest inducements for water deals is the “fair market value” legislation that has been passed in six states — Indiana, California, Illinois, Missouri, New Jersey and Pennsylvania — and is being considered by others.  …

… Even as more cities consider selling their water infrastructure, others are trying to wrest control of their systems back from private operators, usually because of complaints about poor service or rate hikes. Since private owners are rarely willing to surrender these lucrative investments, cities usually end up pursuing eminent domain in court. That means proving that city ownership is in the public’s interest and then paying a price determined by the court. Those prices can be exorbitant. …

For some cities, promises of privatization fall short

Source: Mark Niesse and Arielle Kas, The Atlanta Journal-Constitution, May 18, 2017

In the beginning, the gospel of privatization was as if etched in stone. It was handed down from Sandy Springs, the first new city, to generations of descendants: Dunwoody, Johns Creek, Brookhaven and Tucker. … Sandy Springs is still an adherent of the outsourcing theory. But privatization has gradually given way to more traditional government in many of the nine cities that followed. … While Brookhaven, founded in 2012, started in the Sandy Springs mold, the city brought once-outsourced programs in-house, including community planning, human resources and government technology systems. It still contracts for road paving, park maintenance, permitting and code enforcement. Even those that have backed away from blind faith in privatization still see it as the best way to start a new city. … In Sandy Springs, faith in the model remains unshaken, though it has evolved. … Jason Lary, the mayor of the new city of Stonecrest … [plans] to learn from other municipalities that outsource, and is contracting out city administration, planning and zoning, attorneys and building permitting. The Stonecrest City Council voted Monday to hire CH2M as its primary service provider. … South Fulton is taking the opposite tack. Leaders there want to assume control of the services currently under the county’s umbrella and the employees who provide them. They are negotiating agreements with the county to transfer those departments to South Fulton. …

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Is the ‘Sandy Springs model’ of government changing?
Source: John Ruch, Reporter Newspapers, July 8, 2016

Since its founding in 2005, Sandy Springs has drawn national notice for outsourcing most city government operations to competitively bidding private contractors. But last month, the city approved three-year, no-bid contract extensions due to fears of government disruption during a planning and development boom. The City Council approved the no-bid extensions only after voicing caution about not shifting to an “in-house,” public-sector government. But new local cities inspired by Sandy Springs, like Brookhaven and Dunwoody, already have brought more jobs and departments in-house. … But the model has changed. In 2011, the city dumped CH2M’s single deal to bid out multiple contracts, saying that saved $7 million. …

Georgia city shows pros, cons of going private
Source: Stanley Dunlap, barrowcountynews.com, April 27, 2014

While Barrow County leaders mull privatization, one Georgia city provides an example of both sides of the equation. Milton is one of three Fulton County cities that have undergone privatization in the last decade. The majority of operations in Milton, Sandy Springs and Johns Creek were contracted out when they incorporated in 2006, however two of them have since scaled back privatization in an effort to save money. ….. The majority of operations in Milton, Sandy Springs and Johns Creek were contracted out when they incorporated in 2006, however two of them have since scaled back privatization in an effort to save money. In 2008 the economy led to Milton officials renegotiating their contracts in order to save money. The city now has 144 employees and only contracts out a few departments. “What they figured out was that by ending the contract with CH2M Hill, and going with a more traditional model for most departments, Milton saved $1.2 million in 2010 and another $1 million in 2011,” said Milton Communications Manager Jason Wright. …. If Barrow officials decide to privatize on a large scale, then it would become the first county in Georgia to do so….

Lexserv to Temporarily Shut Down While City Takes Over Service

Source: WTVQ, May 8, 2017

A temporary shutdown of the LEXserv online and phone bill payment system has been scheduled as Lexington’s Division of Revenue takes over the service from Greater Cincinnati Water Works. Beginning May 15, the city will manage all LEXserv customer service and billing services, eliminating the need for outsourcing. Officials say some of the many benefits include:

  • City will save taxpayer dollars by moving system in-house;
  • Customer service will be handled by LFUCG staff in Lexington, creating jobs;
  • Payments will be mailed to a Lexington address for processing;
  • New web portal for customers to make payments, review billing. …

JSU Police canceling Calhoun County 911 dispatch service management

Source: Patrick McCreless, The Anniston Star, May 5, 2017

Jacksonville State University police are set to return to in-house dispatch services in July, less than a year after outsourcing those duties in the expectation of improved efficiency. JSU officials now say contracting out the emergency and non-emergency medical calls hasn’t made the dispatch service more efficient. The JSU police will instead use a combination of professional dispatchers and student workers to handle all emergency and non-emergency calls moving forward. JSU police Chief Shawn Giddy sent a letter to Calhoun County 911 Monday stating his department no longer wanted the organization to manage its dispatch services. …