Waste Management sues over ‘arbitrary’ bidding process in Carson, California

Source: Ellen Ryan, WasteDive, May 9, 2018

Claiming that its bid would have brought Carson 15 times more revenue than the eventual winner’s, Waste Management — a major player across the state — wants Los Angeles Superior Court to overturn the new contract and restart the bidding process. This is not the first time a waste collection company has turned to the legal system over a bidding loss. Late last year Republic Services sued Middletown, New Jersey, claiming the township violated state law in awarding a five-year hauling contract to Central Jersey Waste and Recycling. … Meanwhile, public complaints have grown as the City of Los Angeles revamped its waste hauling system in recent months, and citizens attempted a referendum to end it. Waste Management is one of the companies involved in the multi-zone, supposedly more efficient system that has broken down into complaints of lapsed service and higher fees. …

Privatized student housing – Four key trends will differentiate older and newer P3 projects next year

Source: Moody’s Investors Service, May 1, 2018 (Subscription Required)

Privatized student housing projects are vulnerable to negative pressures in the higher education sector, but will hold steady because of solid real estate fundamentals and marginally improving financial performance. … Examining how trends differ between older projects that have been operating for four years or more (seasoned) and new construction that opened in 2015 or later (recent) underscores how a project’s early years carry the most risk, seasoned projects’ upside potential is limited and no project is immune from an unfavorable operating environment. … Rent growth trend diverges for seasoned projects. … Sector maintains solid occupancy despite disappointing initial lease up at some new projects. … Financial performance strengthens overall, but year-to-year fluctuations at individual projects are the norm. … Unfavorable operating conditions contributed to five downgrades last year. …

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U.S. public universities turning to private sector to meet campus needs
Source: Stephanie Kelly, Reuters, August 26, 2016

U.S. public universities are increasingly turning to public-private partnerships to develop student housing and other campus projects, sometimes using the structure to transfer borrowing and liability risks to the private sector. Over the last five years, there has been an “uptick” in universities and colleges leveraging the private sector to deliver housing needs, said Kevin Wayer, an international director and co-president of the Public Institutions group at commercial real estate firm Jones Lang LaSalle. … Use of P3s can contribute to reduced debt on universities’ balance sheets, said Todd Duncan, assistant vice president of housing, food and retail services at the University of Cincinnati’s main campus. While still only a “fraction” of the U.S. municipal infrastructure market, the P3 market is building, Moody’s Investors Service said in a report issued in March. … Universities might engage in P3s for a number of different reasons, including the efficiency that developers can bring to projects, Duncan said. Increased operating costs for institutions and decreased state contributions have led to a financing gap, said Kurt Ehlers, managing director at Corvias Campus Living, a development group. From fiscal 2008 to fiscal year 2016, state spending per student at public two- and four-year colleges decreased 18 percent, according to Michael Mitchell, a senior policy analyst at the Washington, D.C.-based Center on Budget and Policy Priorities. The National Council for Public-Private Partnerships, a non-profit that advocates for P3s, lists 18 types of P3 partnership structures on its website. The council did not have a national figure for how much money is being spent on higher education P3 projects. …

Parking meter deal keeps getting worse for city as meter revenues rise

Source: Fran Spielman, Chicago Sun Times, May 14, 2018

Chicago’s parking meter system raked in $134.2 million last year, putting private investors on pace to recoup their entire $1.16 billion investment by 2021 with 62 years to go in the lease, the latest annual audit shows. Four underground, city-owned parking garages took in $34 million in 2017, while the privatized Chicago Skyway generated $99.9 million in cash, separate audits of those assets show. Not a penny of those revenues, once a mainstay for city government, went to ease the avalanche of tax increases imposed by Mayor Rahm Emanuel to solve the city’s $36 billion pension crisis. That’s because all three of those assets were unloaded by former Mayor Richard M. Daley, who used the money to avoid raising property taxes while city employee pension funds sunk deeper in the hole. …

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Parking meters, garages took in $156M — but city won’t see a cent
Source: Mick Dumke and Chris Fusco, Chicago Sun-Times, February 13, 2017

Chicago’s parking-meter system took in $121.7 million last year, while four underground city-owned garages reaped another $34.7 million — with not a penny of that money going to the cash-strapped city government. Instead, the $156.3 million pot of parking cash went to private investors who control the meters and garages under deals cut by former Mayor Richard M. Daley and rubber-stamped by the City Council. … Chicago Parking Meters — formed by banking giant Morgan Stanley and other financial partners — paid the city $1.15 billion to manage the meter system and pocket the money fed into it for the next 75 years. The city took in $23.8 million from the meters in 2008, the last year before CPM took over the system. In the seven years since, the meter company has reported a total of $778.6 million in revenues. It’s on pace to make back what it paid the city by 2020, with more than 60 years of meter money still to come. … The garage agreement has also sent a stream of money into the coffers of private investors. … Over the nine years of the deal, the facilities have generated $292.6 million in revenue for their private operators. … Last week, the rights to the garages were sold to a group of foreign investors.

A Tale of Two P3s
Source: Yvette Shields, Bond Buyer, July 7, 2016

Chicago’s first mistake in its much-maligned parking meter lease was its choice of asset. That’s one conclusion of a report released Thursday by the Manhattan Institute for Policy Research that looks at public-private partnerships and compares the details of two deals – Chicago’s nearly $1.2 billion 75-year meter system lease and Indiana’s $3.9 billion 75-year lease of the Indiana Toll Road. The Indiana deal is held up as a model while the Chicago parking lease offers a roadmap of pitfalls to avoid. …

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Stalled contract talks impact dozens of CSEA union workers

Source: News 12, May 14, 2018

Stalled contract talks are affecting dozens of union workers in Middletown. Middletown CSEA workers have been without a contract since 2014. City officials say the sticking points are money and a cost-saving plan to privatize its Sanitation Department. Union representatives say members won’t agree to “sell out” co-workers for a raise, but Mayor Joe DeStefano says the union already came to an agreement with the city months ago but hasn’t brought it for a vote. …

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Middletown, sanitation union clash over privatization
Source: James Nani, Times Herald-Record, June 25, 2017
 
Major changes to city sanitation services are unlikely to materialize this year after negotiations between city and union officials to privatize waste-hauling reached an impasse. The city and the CSEA union, that represents more than 100 city workers and about 14 city sanitation workers, had been negotiating a new contract since late 2014. … CSEA Southern Region President Billy Riccaldo has claimed that the costs of outsourced sanitation have “spiraled out of control in many communities after initial lowball bids” and that outsourcing means surrendering control on prices, scheduling and other factors that can affect price and inconvenience residents. Jessica Ladlee, a CSEA spokeswoman, said members do not want to trade negotiating people out of their union for salary increases.

Middletown explores outsourcing waste hauling
Source: James Nani, Record Online, May 2, 2017

Middletown officials are in negotiations with the union representing city sanitation workers as the city explores outsourcing waste hauling, a move that could eliminate the 14-member department. The talks with the union come as Middletown considers two options to reduce the cost of city sanitation services: either privatizing the services or downsizing and automating part of the department. … But under a push by Alderman Joe Masi, the city last released a request for proposals on the costs of private waste haulers to take over all waste services. As part of the request, any private hauler who wins a contract with the city would have to hire all city sanitation workers for one year. The move has met with resistance by the CSEA, which represents city sanitation workers. …

Puerto Rico’s Teachers Battle for the Schools Their Students Deserve

Source: Jesse Hagopian, The Progressive, May 9, 2018
 
On May Day, thousands of Puerto Rican teachers, parents, and students launched strikes and boycotts to push back against austerity measures that would close nearly 300 schools, lay off 7,000 teachers, convert public schools into privatized charters, and cut public sector pensions. I spoke with Mercedes Martinez, President of Teachers Federation of Puerto Rico, about the neoliberal attack on the schools and public sector, the worker strikes and boycotts of May Day, and the brutal response of the police. …

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Puerto Rico Plans to Shutter 283 Schools
Source: AJ Vicens, Mother Jones, April 6, 2018
 
The Puerto Rico Department of Education announced late Thursday that it would close 283 public schools next school year, citing a decline in enrollment of nearly 39,000 students and the island’s ongoing budget crisis.  “Our children deserve the best education we are capable of giving them taking into account the fiscal reality of Puerto Rico,” Puerto Rico Secretary of Education Julia Keleher said in a statement issued in Spanish Thursday evening. “Therefore we are working hard to develop a budget that will allow us to focus resources on student needs and improve the quality of teaching.” In early February, Keleher and Puerto Rico Gov. Ricardo Rosselló introduced a sweeping education reform plan that called for closing several hundred schools over the next several years and introducing charter schools to the island. The governor estimates the plan will help save $466 million per year by 2022, according to figures in his most recent fiscal plan meant to address the island’s staggering $120 billion in outstanding debts and obligations. Those figures do not take into account the estimated $95 billion in damage caused by Hurricane Maria. …

6 Months After Maria, Puerto Ricans Face a New Threat—Education Reform
Source: Yarimar Bonilla, Rima Brusi and Natasha Lycia Ora Bannan, The Nation, March 21, 2018
 
Six months after Hurricane Maria, Puerto Ricans are understandably frustrated with their government officials. One might expect discontent to center around the head of the power company who oversaw months of blackouts or the governor who awarded hundreds of millions of dollars in private contracts with little or no oversight. But instead it is the secretary of the department of education, Philadelphia-native Julia Keleher, who has become the focus of people’s anger. In the past few weeks, Puerto Ricans have been calling for her resignation, making her the object of a viral hashtag campaign, #JuliaGoHome. On Monday, the school system was paralyzed by a strike as thousands of teachers protested the education-reform bill her office has spearheaded. …

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Kansas agency chief on no-bid contracts: ‘It’s all public record’

Source: Jonathan Shorman, Wichita Eagle, May 11, 2018
 
Kansas lawmakers voiced frustration this week that they were unaware the state’s revenue agency had entered into no-bid contracts worth millions, including one to outsource dozens of employees. But the agency’s chief said Friday they had been properly informed. “We’ve reported to the legislative committees on every phase of this where we were supposed to, that we followed the law the way we were supposed to follow it, that it’s all public record what’s been done,” said Revenue Secretary Sam Williams. … Sarah LaFrenz, president of the Kansas Organization of State Employees, said there is a difference between posting a public notice online and talking openly about what is going to happen under the contract. “That’s the transparency when people are going to lose their jobs — that’s what people are looking for,” LaFrenz said. … LaFrenz said to her knowledge employees last fall likely understood that the agency would be contracting but did not know that they would lose their jobs. …

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Outsourcing at Kansas Department of Revenue could mean dozens of layoffs
Source: Associated Press, May 9, 2018
 
The Kansas Department of Revenue will lay off nearly 60 employees as it moves its information technology service to CGI Technologies, which was given no-bid contracts worth nearly $60 million despite criticism of its operations in the rollout of the federal health care website in 2013. The 56 workers losing their jobs will be allowed to apply for CGI jobs in Topeka or could be matched with other jobs in the revenue department or other areas of state government, department spokeswoman Rachel Whitten said Wednesday. …

Charter schools cost three California school districts more than $142 million, think tank claims

Source: Lisa Fernandez, KTVU, May 9, 2018
 
Three California school districts, including two in the Bay Area,  lost a total of  $142.5 million to public charter schools during the 2016-17 school year, according to a report conducted by a think tank that critics claim is politically biased. The Oakland Unified School District lost $57.3 million and San Jose’s East Side Union High School District $19.3 million, according to In The Public Interest, a nonprofit centered on ” privatization and responsible contracting.” The report, “Cost of Charter Schools for Public School District,” published Tuesday, compared the school districts’ 2016-17 budgets to what they could have been if 15,487 students in Oakland’s charters and 4,811 in East Side Union’s charters enrolled in traditional public schools instead. The report also found that the San Diego Unified School District lost $65.9 million by the “unchecked expansion of privately managed charter school.” …

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Bill passes in Senate that avoids strike of group home workers

Source: Rick Lessard, Fox61, May 5, 2018
 
Senate passed a bill Saturday afternoon that will raise wages non-profit group home workers, which prevented a worker strike that was scheduled for May 7. The bill would provide a $14.75 minimum wage and a 5% increase for workers above $14.75 effective January 1, 2019.  This wage increase will cover 18,000 union and non-union workers who care for the disabled. …

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Without new workers contract, costly strike preparations loom for state
Source: Emillie Munson, CT Post, May 1, 2018
 
The state will commence costly strike preparations on Thursday if the General Assembly does not act in the next 36 hours on a new contract for workers who care for disabled people, House Democrats warned Tuesday. Some 2,400 unionized workers have threatened to strike on May 7, two days before the end of the legislative session. They are pressing for a contract that would impact thousands of employees in privatized homes and day programs for the disabled. Many of these workers have not received raises in years. Strike preparations involve hiring replacement workers and security to work while striking employees are protesting. Each day of the strike might cost the state close to $1 million, said House Speaker Joe Aresimowicz, D-Berlin, on Tuesday.

Connecticut Nonprofits Support Strike of Their Caregiver Workforce
Source: Ruth McCambridge, NonProfit Quarterly, April 30, 2018

Even as news stories proliferated over the weekend on the crisis in the caregiver workforce serving people with disabilities, in Connecticut, 2,400 employees of nine nonprofit agencies voted to authorize a strike that will begin in the early morning of May 7th. Supporting the strike are not just the agencies employing the workers but also the state’s nonprofit alliance (join yours today). … “We’ve reached a crisis of underfunding in the care our state provides people with disabilities and the workers who care for them,” SEIU 1199 spokesperson Jennifer Schneider said. “When privatized group homes and programs are shuttering and workers are forced to work 80 hours a week just to make ends meet, something has to change. …

Amid National Uprising, Teachers Just Took a Major Step Toward Organizing Charter Schools

Source: Rachel M. Cohen, The Intercept, May 2, 2018
 
The fight over charter schools is often just as much a battle over unions. Charter school operators and funders take relatively clear anti-union positions, and the absence of organized labor is often a selling point for charters, which boast flexible hours and pay schedules as paths toward quality education. Teacher unions, meanwhile, tend to oppose charter schools as a drain on needed resources for traditional schools and as centers of educator exploitation. In the 2016-2017 academic year, just 11 percent of charter schools were unionized. Yet in Los Angeles, teachers just took a big step toward reversing that trend. … On Wednesday morning, a legal representative for a majority of teachers at three of the network’s 25 campuses filed union authorization cards at the state’s Public Employment Relations Board. Once the signatures are verified, the new Alliance Educators United union will be official. …

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Calif. Charter Network Can’t Block Union Organizers, Emails, Judge Rules
Source: Stephen Sawchuk, Education Week, June 8, 2016

California’s labor-relations board for public employees issued a mixed ruling on whether a major California charter management organization illegally tried to quash a unionization drive at its schools. The battle over unionization at the 27-campus Alliance College-Ready Public Schools has been ongoing for more than a year, ever since teachers submitted a “mission statement” outlining their intent to unionize last March. … Judge Kent Morizawa ruled that Alliance officials impermissibly blocked union organizers from schools, and interfered in the drive by redirecting emails from United Teachers Los Angeles into teachers’ “spam” folders. And in one instance, the PERB ruled, an Alliance employee talked about a teacher’s evaluation and employment status in a conversation about the teacher’s support for United Teachers Los Angeles. … But the ruling sided with the Alliance on other matters. For instance, the PERB ruled that many of the Alliance’s other communications to teachers and parents—including statements suggesting that unionization would result in a loss of flexibility and autonomy at the schools—were not coercive or threatening. …

Legislature Orders Audit of LA Charter Chain for Spending Taxpayer Funds to Block Union Drive
Source: Steven Rosenfeld, Alternet, May 26, 2016

The Joint Legislative Audit Committee (JLAC), composed of members of the Assembly and Senate, voted 8-3 Wednesday to authorize the audit of Alliance College-Ready Public Schools, which has 11,000 students in 27 schools. The audit comes after a Los Angeles County Court issued a temporary restraining order against the taxpayer-funded but privately run school to stop its anti-union actions, which include not only intimidating and threatening teachers but also working with the California Charter School Association (CCSA) to recruit parents and alumni to fight the union drive. … The chain has received hundreds of millions in public funds. How much was spent fighting the union drive, including hiring consultants, legal fees, producing media, running phone banks and other outreach activities will be investigated by the state’s auditor. … In March 2015, when teachers and counselors at the chain began a unionization campaign—which is legal under state labor law—the charter school chain responded with aggressive tactics, including illegal surveillance, interference with union meetings, phone calls to parents attacking teachers involved in the campaign, blocking teacher emails and retaliation against organizers. …

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Proos and MDOC spar over prison budget

Source: Cheyna Roth, WNMU, April 30, 2018
 
A Republican Senator is sparring with the Michigan Department of Corrections over privatizing prison services. The department is already trying to end one type of privatization – and they don’t want a new one.  This year, the DOC asked the Legislature to give it enough money to stop outsourcing food services to a private contractor. The Legislature appears to be on board, but now Senator John Proos wants to have a private contractor put in charge of employing the prisons’ nurses. … The Department of Corrections says it’s already having a hard time filling open nurse positions. Paying them less and without state benefits – which they say would happen with a private contractor – would make filing positions even more difficult. …