Custodial Staffing *In-House* vs. *Outsourced*

Report
CONTRACTING SERVICES
Presentation to the Delaware Valley Association of Business Officers
Ron Farkas, Ph.D., CCRES, Executive Director
Charles Gibson, President, ServiceMaster
Oct. 2, 2014
CCRES
Grounds
Maintanence
CCIU
Energy
Management
ServiceMaster
School of the Past
4
School of the Present
5
School of the Future
6
Budget Crisis…why?
Revenues
Expenditures
PSERS History/Projections
Employer Contribution Rates
35%
30.87%
29.15%
30%
28.30%
25.80%
25%
21.31%
20%
16.93%
15%
12.36%
10%
8.65%
6.46%
6.04%
5%
4.61%
3.77%
1.94%
0%
1.09% 1.15%
4.23%
4.69%
7.13%
4.76% 4.78%
5.64%
30.14%
30.76%
30.93%
Health Insurance Premium Costs
Affordable Care Act Will Penalize Cadillac Plans
• Although most plans currently do not fall in this category, it is anticipated that with the rising
cost of healthcare, most plans will be in this category by the year 2018.
Affordable Care Act Requires Monitoring Hours Worked
• Some districts are reducing hours of aides and assistants to <30/week to avoid health
insurance costs or penalties.
THE FUTURE
With increasing PSERS costs and continually rising
medical benefit costs in the coming years the pressure
will likely continue to look at contracting services.
16
Who We Are
CCRES is a non-profit organization of dedicated and
highly trained staff members providing quality
educational and behavioral health services to students
and families
17
Who We Are
• Incorporated in 1999 as a non-profit, 501(c)(3) organization
• Board of Directors includes district superintendents / school officials, two IU executive
directors, college president, and 14 executive leaders from local private industry
• CCRES employs over 900 professional staff
• CCRES is the leading provider of behavioral health service staff in Chester County
18
CCRES Partnership with CCIU Home and Community Services Achieved
$26,626,425 in Savings for the
Chester, Delaware, Lancaster-Lebanon and Montgomery County School
Districts for Special Education Support Services Paid Directly by Medicaid in Last Two Years.
$16,000,000
$14,000,000
$12,000,000
$10,000,000
2012-13
$8,000,000
2013-14
$6,000,000
$4,000,000
$2,000,000
$0
Chester
Delaware
Montgomery
Lancaster
19
Success Story
Kennett Consolidated School District
• In May 2013, KCSD engaged CCRES to provide all Instructional Assistants (58) and Teacher Assistants
(7)
• Interviewed, Trained, and Transitioned KCSD staff to CCRES organization.
•
•
•
•
•
Flat hourly billing rate of $20.00 per hour
CCRES employee hourly rates were $.07 - $1.05 higher than then current KCSD hourly rates
Elimination of PSERS liability and healthcare claims and administrative costs
Training coordinated with school district
Substitute employees provided by CCRES
20
Success Story
Kennett Consolidated School District
• In 2013-14, reduced KCSD’s annual costs from projected $2,241,054 to $1,533,862
(-$707,192 or 31.6%)
• Ensured continuity and consistency of KCSD staff
• Reduced future Human Resources costs for KCSD related to Instructional and
Teaching Assistant staff
• Contract increases tied to Act 1 of 2006 index.
21
Testimonial
“While the economic decision to outsource 64 employees was difficult, CCRES made
the transition to contracted paraprofessionals trouble free and seamless. At the
forefront of our decision to award the contract to CCRES, was its ability to meet the
demands of our educational programs and service our diverse population of
learners. CCRES’s paraprofessionals work side by side in classrooms with our faculty
delivering a spectrum of services including one-on-one assistance, instructional
computer software help, cafeteria duties, and clerical responsibilities. When visiting
our educational facilities it is impossible to discern our employees from CCRES
employees.
22
Testimonial
Throughout the inaugural year, CCRES’s commitment to provide highly qualified, well
educated paraprofessionals each and every day has unquestionably set the stage for
a long-term successful partnership. Honestly, we couldn’t be more pleased with the
outcome. “
Barry Tomasetti, Ed.D.
Superintendent
Kennett Consolidated School District
•
23
Privileged & Confidential
Privileged & Confidential
With more than 5,000 company-owned and franchise locations in North America,
100+ offices in Pennsylvania alone,
Memphis-based ServiceMaster is one of the world’s largest, and most respected, residential and commercial service networks.
ServiceMaster Commercial combines trusted ServiceMaster® brands, a network of pre-screened and qualified service providers
and a convenient, cost-effective technology platform to manage your facilities’ maintenance needs. Access and manage the array
of ServiceMaster® Commercial services, all from one single portal and through one point of contact.
ServiceMaster By the Numbers
7
5,000
21,000
10,000
8 Million
$3Billion
Trusted
Brands
Locations in North
America
Company
Employees
Service
Vendors
Customers Serviced
Annual
Revenue
ServiceMaster significantly reduces process and
operating costs without any infrastructure investment.
For School District, it means:
MORE EFFECTIVE FACILITY SERVICE MANAGEMENT
 Single point communication to better manage
staff/vendors throughout entire portfolio of locations
 immediate access to all
service and budget information via online portal.
 better document organization by having direct access to
all critical data via the online portal.
 customized reports to meet the needs ad requirements of
all level of management
 Best in Class service providers
ENHANCED COMMUNICATIONS
 place and track service requests by phone, fax, e-mail,
cell, etc.
 dedicated Management team support
 24/7/365 operations
INCREASED CONTROL
 Allows management to monitor all services in real time for all staff.
 Provides full visibility from one vantage point via online portal
 Proactive alert system to alert appropriate staff of priority events or
situations
 Work Order management technology
ENSURED COMPLIANCE
 Legal compliance by working directly with school districts legal
representation
 budgetary certainty by entering budgets into online portal and keeping
a real time accounting of all activity
 contractor licensing via our vendor management team
 risk management handled by ServiceMaster
 Insurance & tax issues handled by Service Master support staff
REDUCED COSTS
 Provides manual/administrative processing efficiencies via our central
support staff
 streamlines inefficient processes
 Leverage ServiceMaster’s buying power
Client:
Avon Grove School District
• Providing daytime and nighttime custodial services
• Estimated annual savings $713,690 this fiscal year
“ The Chester County Intermediate Unit, supported by ServiceMaster and Brickman Landscaping, this group
has completely transformed the outward and inward look of our schools and facilities. In a short summer, 5
weeks, with many projects such as security enhancements, from top to bottom scrubbing and cleaning of the
hallways and classrooms, a new high school gym floor and the beautification of our school campuses these
people gave it their best each and every day and look at the results, therefore I would like to publicly
acknowledge their work and thank them for their efforts. Our schools are in tip-top shape…”
M. Christopher Marchese, Ed.D
Superintendent
Avon Grove School District
Client:
Oxford Area School District
“ We originally partnered with SM when we opened our new high school in 2006. We
were so pleased with their services we wanted to expand their presence in the school
district without adversely affecting our staff. We were able to accomplish this by adding
SM building by building as our staff diminished through attrition. SM is now in 5 of our
7 buildings and our plan is to expand their presence as we experience more attrition”
Charles Lewis
Oxford Area School District
Client:
Octorara Area School District
“With the heavy rain this morning, we had a great deal of water make its way into the
High School Band Room, Office and TV Studio. I want to thank the ServiceMaster folks
who stepped in and assisted with the clean-up today. Their quick response was greatly
appreciated!!”
Dan Carsley
Octorara Area School District
Custodial Staffing
“In-House” vs. “Outsourced”
Kennett Consolidated School District
ServiceMaster Case Study
Kennett Consolidated School District
•
•
•
•
•
•
3,800 +/- students
4 elementary schools
Middle school
High School
District office
Well maintained and organized, clean schools, stable management and staff.
Problem: 2013-2014 General Fund Budget Deficit
32
Comparison of Operation and Maintenance Costs per Student
School Districts with Enrollment of 3,700 – 4,800 Students
2010-2011 Annual Financial Report Data
Oxford Area SD
Southeast Delco SD
Springfield SD
1,013
1,097
1,253
Kennett Consolidated SD
1,327
Garnet Valley SD
1,334
Unionville-Chadds Ford SD
1,414
Upper Dublin SD
1,533
Wissahickon SD
1,535
Great Valley SD
Colonial SD
Upper Merion Area SD
Rose Tree Media SD
Cheltenham Township SD
1,557
1,684
1,712
1,772
2,007
Comparison of Night Time Staffing
Kennett High School
Kennett In-house 2012-13
Contractor
(7) 8-hour custodians
(3) 8-hour custodians
(7) 4-hour custodians
52 hours total
56 hours total
Kennett Middle School
(7) 8-hour custodians
(3) 8-hour custodians
(5) 4-hour custodians
44 hours total
56 hours total
Greenwood Elementary
24 hours total
(1) 5-hour custodian
(4) 4-hour custodians
21 hours total
Mary D. Lang (3) 8-hour custodians
Kindergarten Center
24 hours total
(1) 5-hour custodian
(4) 4-hour custodians
21 hours total
New Garden Elementary
(3) 8-hour custodians
(3) 8-hour custodians
(1) 5-hour custodian
(4) 4-hour custodians
21 hours total
24 hours total
Bancroft Elementary
(3) 8-hour custodians
(1) 5-hour custodian
29 hours total
__________________________________________________
(6) 4-hour custodians
(1) 5-hour custodian
29 hours total
____________________________
Across the District Summary
(26) 8-hour custodians
(1) 5-hour custodian
(6) 8-hour custodians
(4) 5-hour custodians
(30) 4-hour custodians
213 hours total
188 hours total
IN-HOUSE CUSTODIAL STAFF
Pros
Cons
1. More control
1. Dealing with personnel problems first hand
2. More flexibility – snow removal & emergencies
2. Time spent recruiting & interviewing new employees
3. More familiarity with buildings
3. Time spent ordering cleaning supplies
4. Less turn – over
4. Scheduling subs
5. Higher comfort level with keys & security codes
5. Time spent on “Right-to-Know” requirements
6. Easier to cover off-hours building use – i.e. Saturdays
6. More personnel costs
7. Pride of ownership
8. Ability to cover a Head Custodian absence with a Night
Custodian
OUTSOURCED CLEANERS
PROS
CONS
1. Less personnel costs
1. Less flexibility
2. Less personnel issues
2. More frequent turn – over
3. Substitutes for absences covered by contractor 3. Not as familiar with building (short term)
4. They order cleaning supplies (except paper
products & large trash can liners)
4. You turn over use of your equipment to them (autoscrubbers, buffers, vacuums, etc.)
5. Fixed Monthly Cost
5. They are primarily just cleaners – no lamp replacing,
minor repairs or grounds work in summer
6. Layered supervision (on site manager, area
manager, operations manager, etc.)
7. No guessing on rising employee benefits cost
Projected Savings
Existing Night Custodial Staff compared to ServiceMaster Services
Projected Saving at existing staff level
Night Staff Only
Projected Savings thru Staff reconfigurations
and ServiceMaster Programs
I n-hous e
SVM Empl oye e
Savings
% from Baseline Total
2013
$ 1,401,799
$ 1,140,174
$ 261,624
18.7%
2014
$ 1,513,728
$ 1,168,678
$ 345,049
22.8%
2015
$ 1,595,023
$ 1,197,895
$ 397,127
24.9%
I n-hous e
SVM Empl oye e
Savings
$ 1,401,799
$ 1,009,054
$ 392,744
$ 1,513,728
$ 1,034,280
$ 479,447
$ 1,595,023
$ 1,060,137
$ 534,885
% from Baseline Total
28.0%
31.7%
33.5%
Projected Savings: Supplemental Supply Savings
Existing Supply Expense compared to ServiceMaster Services
Supply Costs
I n-hous e
SVM
Savings
% from Baseline Total
$
$
$
2013
88,518
64,794
23,724
26.8%
$
$
$
2014
90,288
66,375
23,913
26.5%
$
$
$
2015
92,094
67,998
24,096
26.2%
38
Next Steps for Interested School Districts:
1) Have ServiceMaster and/or CCRES team meet with appropriate School District staff.
2) Develop analysis of current costs and savings opportunities.
3) Execute a mutually acceptable contract.
4) Develop Transition and Implementation during the Summer break (estimate 45-60
full transition and implementation)
days for
40

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