School board evaluating transportation outsourcing

Unionville-Chadds Ford School Board directors
are in the final stages of evaluating the economic benefits of outsourcing the
bus transportation. The directors
will vote once their final review is complete the school board directors
assured transportation department employees.

According to Director Holly Manzone, “We are
playing with people’s careers. The
employees need to know as soon as possible if they will still have their jobs.”

Manzone’s remarks were made after the
conclusion of Robert Cochran, business manager and Sharon Allen-Spann, director
of personnel and pupil services made a presentation of the district’s evaluation
of five outsourcing bids on transportation during the May 16 board meeting. A
copy of the presentation is posted on the UCFSD Web page http://www.ucfsd.org/trans2011.html.

Evaluation of the bids determined only one
bid—First Student—would generate savings. During a five-year period, the projected savings would
provide average annual savings of $143,641 plus a one-time cash payment
$1,717,553 generated by selling district buses to the outside contractor.

Although there was no final vote, comments
from board members seemed to support maintaining in-house control of bus
transportation.

“The Board undertook the transportation evaluation as part of
its fiduciary duty to the taxpayer’s,” Keith Knauss said. “The study was
thorough, unbiased and fair. Current in-house cost of providing bus
transportation beat 4 of 5 outsourcing bids. Our transportation employees are
well regarded. I believe I will support
retaining bus transportation. The
school board plate is full. We
have to fill the Superintendent position, complete the teacher contract
negotiations and oversee the high school construction project. If in three to
five years the in-house PSERS and FICA costs are too large, we may need to
reconsider outsourcing.”

Knauss also said the one-time $1.7 million
cash payment for selling the bus fleet to a private contractor should not be a
significant factor in deciding to retain or outsource bus transportation.

Paul Price adamantly supported outsourcing
bus transportation services now.

Reading from a prepared document, Price said,
“There are three very important considerations that need to be thought out
regarding this issue.

“Pennsylvania has already shown its
inclination to cut back on FICA reimbursements in the current budget
proposal. While this may be
reversed partially or totally for this year, it is likely to be a target in
future state budgets – particularly for ‘rich’ districts like UCFD

“While Pennsylvania currently reimburses us
50 percent of our PSERS contributions this also is not guaranteed to continue.
We should be prudently planning for the possibility that this may be reduced or
eliminated in future years.

“The recently passed HB2497 set PSERS
contribution rates that are going to ramp up dramatically…The 5-year period
illustrated in our transportation analysis [Cochran’s May 16 presentation] cover
an average PSERS contribution of 16.88 percent [years 2012 – 2016]. The average annual contribution
[set by recently passed HB2497] for the next five year period [2017 – 2021]
will be 26.602 percent— an increase of 60 percent from the 2012 – 2012
outsourcing proposal [Cochran presentation.”

Price also said, “We have been agonizing over
budget cuts that total a fraction of the savings we’re looking at by making
this change. While having in-house
transportation services is preferable is it worth cutting professional staff,
programs and facilities that could otherwise be kept intact?

Cochran commented the in-house bus
transportation employees are also offering further cost savings proposals that
may save the school district $200,000 next year. Details of the possible additional in-house cost savings
were not detailed at meeting; however Cochran assured the board directors the
additional savings proposal was firm.

The nine school board directors agreed to
expedite their final analysis and any additional questions so a date could be
set in the very near future to set a date for a public meeting for the
directors to cast their votes on the outsourcing of bus transportation.

About Jim Phreaner

After 41 years of auditing large NYSE global corporations, former IRS Agent Jim Phreaner was looking for a project in retirement with fewer regulations and more people. He joined the staff at Chadds Ford Live more than a year ago. James Edward “Jim” Phreaner, 64, died suddenly in his Birmingham Township home on Dec.17, 2012. Jim was a devoted husband, son, father, friend, and neighbor.

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