Category Archives: Insourcing/municipalization

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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City-owned Internet services offer cheaper and more transparent pricing

Source: Jon Brodkin, Ars Technica, January 15, 2018

Municipal broadband networks generally offer cheaper entry-level prices than private Internet providers, and the city-run networks also make it easier for customers to find out the real price of service, a new study from Harvard University researchers found. Researchers collected advertised prices for entry-level broadband plans—those meeting the federal standard of at least 25Mbps download and 3Mbps upload speeds—offered by 40 community-owned ISPs and compared them to advertised prices from private competitors. The report by researchers at the Berkman Klein Center for Internet & Society at Harvard doesn’t provide a complete picture of municipal vs. private pricing. But that’s largely because data about private ISPs’ prices is often more difficult to get than information about municipal network pricing, the report says. In cases where the researchers were able to compare municipal prices to private ISP prices, the city-run networks almost always offered lower prices. This may help explain why the broadband industry has repeatedly fought against the expansion of municipal broadband networks. This fight includes pushing legislators to draft anti-municipal broadband state laws, lobbying against local ballot initiatives, and filing lawsuits against cities that build their own networks. …

Council unanimously votes to take back library operations

Source: Andrew Clark, The Signal, January 9, 2018

Santa Clarita decided to take back full control of its library system Tuesday evening. The Santa Clarita City Council voted unanimously to end a contract with Library Systems and Services, LLC, and independently operate and staff the Santa Clarita Public Library system. … he move looks to save the city about $400,000 in what would be the city’s first fiscal year of operations. The decision comes nearly seven years after the city pulled the libraries out of the county system and contracted with Library Systems and Services to operate and staff libraries in Newhall, Valencia and Canyon Country. City documents noted the city initially had success with LSSI as library hours were expanded and the annual budget for books and materials was increased, but the company’s performance has declined in recent years. …

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Privatization–and Pushback–Proceed in Santa Clarita
Source: Beverly Goldberg, American Libraries, July 27, 2011

…. Mayor McLean’s sentiments about public accountability are echoed in a new toolkit from ALA’s Office for Library Advocacy. However, “Keeping Public Libraries Public: A Checklist for Communities Considering Privatization of Public Libraries” makes no bones about ALA’s opposition to library privatization. …. That distinction has also captured the interest of the California legislature, where a bill is being considered that would regulate under what circumstances the management of a library that is withdrawing from a free county library system could be privatized.

IPERS considering in-house management of retirement funds

Source: James Q. Lynch, The Gazette, January 16, 2018
 
IPERS officials told Iowa lawmakers it likely will be next year before they ask for legislative changes to allow in-house management the $30 billion public employee retirement fund.  IPERS, Iowa Public Employee’s Retirement System, which paid out $2 billion in benefits last year, is in “preliminary discussion” of what they are calling internal investment management. Currently, IPERS contracts for outside management of its funds, but CEO Donna Mueller and Chief Investment Officer Karl Koch told the House State Government Committee Tuesday they believe millions of dollars could be saved annually through in-house management of investments.  However, they added, the change would require “significant” startup investment as well as trading, accounting and control infrastructure. …

Peorians Deserve Their Water Back

Source: Jenya Polozova, Food & Water Watch, December 14, 2017

Illinois American Water is running a complicated show in the City of Peoria. They control the water system and they’re charging residents twice as much as what customers of neighboring public systems pay and the U.S. average. Water privatization in Peoria mirrors issues that towns all across the country run into when they sell a public resource to a privately owned corporation. Each time it means: losing transparency, accountability, management, and reliability. In sum, local residents have little say over the operations of the water system. … With the deadline of fall 2018 fast approaching, it’s finally time for Peorians to take their water back – but the water company is not going to go come to the negotiation table without a fight. …

… Years of propaganda and messaging campaigns create doubt that a City has the ability to provide services. But, when it comes to water systems, public provision is the American way.
… This trend to public ownership continues today. In June, Missoula, Montana, bought its water system from a provide company to provide long-term stability and better water resource management, as well as to make necessary improvements. The system was losing more than half of its water through leaks. The city plans $30 million in investments over the next 5 years — all without raising water rates. As the mayor said: “The city of Missoula is in this business for only one reason and that’s to serve customers. Water is it.” While it is understandable that the local union in Peoria fears that jobs may be jeopardized if the city takes over the water company, the City Council can and should include recognizing the local labor union and keeping the existing workforce as part of the municipalization effort. Not a single union worker should be dropped. Furthermore, cities that take back their water systems experience incredible economic benefits as a direct result. Take the city of Evansville, Indiana, where remunicipalization from IAW was expected to save the city $14 million over a short period of five years. Or even the city of Cave Creek, Arizona, where the city took back their water from American Water and saved an astonishing $1,335,017. …

Unhappy with cleanliness, Chesterfield school leaders break ties with outside custodial service

Source: Vanessa Remers, Richmond Times-Dispatch, December 12, 2017

Chesterfield County School Board members will bring at least some of their custodial services back in-house, cutting ties with an outside contractor that school officials said couldn’t keep the county’s schools clean enough. School Board members voted unanimously Tuesday not to renew their contract with Tennessee-based Service Solutions Corporation. Instead, they moved forward with a hybrid plan in which the daytime custodial work will be done in-house and after-school cleaning will be completed by at least three outside contractors. … In the past two years, school officials charged SSC more than $400,000 in penalties for not meeting the contracted level of cleanliness. … To shift back to at least some in-house custodial work, School Board members supported hiring custodians to work as day porters, in addition to outsourcing after-school cleaning to at least three contractors. That could cost the school system approximately $19 million in the first year, according to a plan that has been proposed by staff. That’s about $7 million more than it pays now under the current SSC contract. The tab could increase to $23 million annually as the schools increase staff to achieve a higher “ideal” level of cleanliness. … The school system switched from providing custodial services in-house to an outside contractor three years ago, in part because the shift would save millions. But even before that switch happened, school officials said the internal system wasn’t staffed properly. …

Video: Deal of the Year 2017 – Small Issuer: City of Missoula, Mont.

Source: Bond Buyer, December 6, 2017

The city of Missoula, Montana waged a six-year legal battle to wrest control of its water system from a private company. The water system in the town of 70,000 was privately-owned by Mountain Water – a company that refused to make needed repairs to the system or sell it to the city. … Obtaining traditional financing with no disclosure from Mountain Water — and water assets nearly beyond repair — was unattainable given the risks. The city also had to provide payment before the court could rule it owned the water system. The solution: the direct sale to Barclays of nearly $140 million in A-rated bond anticipation notes. The financing plan uniquely provided the necessary mechanics to allow the city to purchase the water system. Prior to the acquisition, water bills were 17% higher than elsewhere in the state, but dropped to 49% below average after the deal.

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City Of Missoula Takes Ownership Of Mountain Water Company
Source: Beau Baker, MTPR, June 22, 2017

The city of Missoula has taken ownership of the water utility that serves its residents after a three-year court battle. The city bought Mountain Water Company for $84 million and paid another $6.8 million to developers who had a claim against the company. A separate bundle of transition costs, the bulk of which are attorneys’ fees, amounts to $7.5 million.
Mayor John Engen said city attorneys originally estimated the legal costs would be $400,000. Missoula won the right to buy the utility in an eminent domain case. It now joins all 128 cities and towns in Montana in controlling and owning its own water and distribution system. … Merriam says there are no immediate plans to change the rates. …

One for the history books: Missoula will buy its water system
Source: Sherry Devlin, Missoula Current, February 22, 2017

In an historic vote Monday night, the Missoula City Council unanimously approved the purchase of Mountain Water Co., forever ensuring the city’s “access to clean, affordable and reliable water.” … Throughout the recent effort, and decades of unsuccessful attempts by previous mayors and councils, the goal has been to place Missoula’s drinking water system into public ownership. … That now could happen by the end of March. With Monday’s vote, the local water system will be free from an increasingly distant and disaffected roster of corporate owners, most recently The Carlyle Group, a global investment fund, and the Canadian utility Algonquin Liberty. … Missoula’s water has always been in private ownership; all other Montana cities own their water system. … In fact, Bender said, Mountain Water Co.’s purchase by an international hedge fund – The Carlyle Group – imperiled every future generation.
The city’s purchase of its drinking water system will benefit those future generations the most, Bender said. …

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