Board of Education Special Meeting, 4.1.19 – President’s Message

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Outsourcing:

The general terms that apply to outsourcing are in ORS 279B.030: https://www.oregonlaws.org/ors/279B.030 It lays out the requirements for a cost analysis when a public agency is considering outsourcing.

ORS 279B.033: https://www.oregonlaws.org/ors/279B.033

The Oregon Court of Appeals has interpreted ORS 279B.033 to mean:

“After setting forth the required contents of the cost analysis, the statute explains that, subject to an exception for time-sensitive work, a contracting agency may proceed with the procurement process only if the cost analysis demonstrates that it would be more expensive for the government to perform the services in question with its own staff and resources. Id. Further, even if the cost analysis indicates that it would be more expensive for the contracting agency to perform the services in question with its own staff and resources, procurement is nonetheless prohibited if the estimate reflects that the only reason for any cost savings stems from the fact that a private contractor’s costs for wages, salary, and benefits are estimated to be lower than the contracting agency’s costs for wages, salary, and benefits in connection with the services at issue.”

The contractor needs to demonstrate the reason they are able to provide the service at less cost  isn’t because they pay their employees less, but because of some other operational savings.

Ripple effect of closing services:

The college must place displaced contracted employees in comparable jobs.  Not just any vacancy. It must be comparable.

Three (2.65FTE) of our four contracted Food Service employees are in the Preparations and Sales Services Family. One (1 FTE) contracted Titan Bookstore employee is in this same family. That equals 3.65 FTE in positions that we need to place in comprehable jobs. The CML is likely the program that we must look to for placing these employees. First all timesheet employees in the family would need to be laid off which means contracted employees with full benefits would be added to the CML budget.  We are all aware that program has just recently become sustainable. Placing more contracted employees under their budget will make things far more challenging for them.

It is the same scenario when thinking about closing the Health Clinic. There are employees who would likely need to move to the Health Professions Department which will change their budget.

The college has put Titan Bookstore outsourcing back in the budget even though the Board already voted to not contract with Barnes and Noble.  Before that vote happens again it seems logical that we discern whether it is legal to outsource the bookstore as well as Food Services.

We can restructure these services.  We can minimize on staffing and hours.  We own a food truck. We don’t need a contractor to come to Lane and do what we can do ourselves.