Recommendation is to outscource custodial sources

Red Oak Superintendent Tom Messinger will recommend outsourcing custodial services at next month’s board meeting.
Messinger presented the numbers of the district’s costs in maintaining the current staff and those incurred with hiring an outsourcing firm during the regular Red Oak School Board meeting April 25.
While saying it was a little impersonal, Messinger said it was to focus on the dollars and cents.
“I realize this is people’s employment, their benefits, and their livelihoods. I know people’s lives could change depending on the decision the board makes,” Messinger said.
Messinger estimated the district would pay $479,420 next year to the custodians employed within the district.  In addition to employee salaries, the district was estimated to pay $49,118. for supplies and substitutes.
ABM, the outsourcing company, offered a cost of $360,756. Messinger estimated a savings of $167,800 going with ADM, when the current employees salaries, benefits,  supplies, and substitute costs were added and compared to ABM’s cost estimates.
Messinger said important information to consider was the district’s unspent authorized budget moving forward.
“From fiscal year 2016-17,  if we continue spending the way we are now, our total unspent authorized budget will decrease $717,508. From 2017-18, it will drop 857,857. And the 2018-19 fiscal year budget we estimate a negative balance on our unspent authorized budget and would be spending more than we’re allowed,” Messinger said.
If approved, the Red Oak custodians would be given first priority to be employed by ADM and continue custodial services for the district. Messinger said looking at just the numbers, the district had to have a certain number of custodians in the building. They were already approaching the minimum, so further reductions wouldn’t solve the problem, in his opinion.
“I’m in no way trying to diminish the value in any way. But we have to protect our programs and instruction, first and foremost.  We have to look for recurring savings. Eighty percent of our budget is salaries and benefits. Our attorney will guide us through the steps to reduce employees.  Based on the numbers, and speaking with other districts using outsourcing, I will recommend to the school board that we outsource custodial services. There are tough decisions that have to be made,” said Messinger.
Paul Cadwallader of ADM was on hand to answer board questions. Cadwallader said their plans were to offer a variety of contract options, and advised if the district reduced in size by one or more buildings, the cost savings in a reduction of custodians would be seen immediately. Cadwallader added they would either fluctuate hours for athletic events or could bring in extra custodians for coverage. Transportation Director Carlos Guerra said with over 300 events that were extra activities within all the district’s buildings, that may result in higher outsourcing costs.
Board President Paul Griffen asked Messinger to look at the impact to the savings with needing additional staff for extra-curricular activities and the effect on maintenance costs versus the savings by outsourcing. Cadwallader said light duty maintenance would be provided through the janitorial staff with his outsourcing company.
No further action was taken. The board will vote on potential outsourcing at their May 9 meeting.