College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
Links to Planning and Standards:
SP Goal 3 Fiscal and Operational Sustainability
Standard D. The institution plans and manages its financial affairs with integrity and in a manner that ensures financial stability. The level of financial
resources provides a reasonable expectation of both short-term and long-term financial solvency.
Standard D. 4 Financial resource planning is integrated with intitutional planning.
1
Rollback 2012-13 COLA
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2
Rollback 2012-13 Step
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
3
Rollback 2013-14 Step
2012-13
2013-14
6 months svgs
Permanent svgs
56,670
18,195
74,865
Furlough - 6 furlough days
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
5
Eliminate temporary staff
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2/20/2013 1:05 PM
2012-13 Steps began in July paychecks. The 2012-13 Steps would
be rolledback for the second six months of 2012-13 and in future
121,854 years. Will require successful negotiations to implement. BPC
ranked a similar proposal as 5 out of 11.
2012-13
2013-14
6 months svgs
Permanent svgs
60,927
89,158
37,057
187,142
2012-13
178,316
74,113
374,283
Assuming that current contract terms would continue into 2013-14,
Permanent svgs 2013-14 Steps will begin in next July's paychecks. The 2013-14
121,854 Steps would be rolledback permanently. Will require successful
negotiations to implement. BPC ranked a similar proposal for 2012178,316 13, but this is a new proposal.
2013-14
6 months svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
4
113,340
36,389
149,729
A 1.5 % COLA for 2012-13 began in July paychecks. COLA would
be rollbacked for the second six months of 2012-13 and in future
years. Will require successful negotiations to implement. BPC
ranked a similar proposal as 2 out of 11.
74,113
374,283
2012-13
2013-14
6 months svgs
Permanent svgs
116,856
179,628
89,280
385,764
-
2012-13
2013-14
6 months svgs
Permanent svgs
62,500
62,500
-
1
Employee's would be required to take a certain number of workdays
off as unpaid furlough days. Potenital budget savings are noted for
6 furlough days between January and June for all employees by
class. Furloughs do not provide ongoing savings, so no savings for
2013-14. Will require successful negotiations to implement. BPC
ranked a similar proposal as 7 out of 11.
This would eliminate many, but not all, temporary staff in the general
fund. The total temp costs are in the $250,000 range. The 2012-13
savings estimate is based on reducing temp staff by 50% for the
second half of the year. To make this budget cut work, we will need
to reduce the respective department budgets, so that the funds are
not spent on other items. BPC ranked a similar proposal as 6 out of
11.
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
6
Suspend Overtime
2012-13
2013-14
6 months svgs
Permanent svgs
-
-
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
7
Eliminate general fund support to other
funds & categoricals
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
8
Reduce General Fund Support to DSPS
to Minimum Required Match
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
9
Suspend General Fund Capital Outlay
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
10
Eliminate High School Concurrent
Enrollment Fee Waiver
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2/20/2013 1:05 PM
-
118,000
2012-13
2013-14
6 months svgs
Permanent svgs
33,969
67,938
2012-13
2013-14
6 months svgs
Permanent svgs
33,834
67,668
2012-13
2013-14
6 months svgs
Permanent svgs
-
20,000
2
DRAFT - For Discussion Only
ESTIMATES
Managers would be advised to not approve overtime work, except in
cases involving immediate health and safety. BPC did not rank this
proposal as overtime approval is a manager's decision. 2011-12
comp time earned was $53,642, paid out was $15,865.
General fund provides support to non-general fund operations and
categorical programs as follows:
Shively Farm: $28,000
Child Development: $90,000
BPC ranked a similar proposal a year ago, and will review this
proposal.
General fund provides support to DSPS as part of a required match.
However, the District has been optionally providing additional suport
in excess of the required match. Mandated services will need to be
provided, even if cost is above minimum match, need to find low
cost services.
BPC will review this proposal.
Suspend the capital outlay budget. Budget is $135,335, but may be
unrealistic to suspend entire budget, so half is noted as savings.
BPC will review this proposal.
High School concurrent fee waiver was reduced to $20,000 in 201112 to provide a partial fee waiver for early college high school
programs at Eureka main and Del Norte campuses. This would
eliminate the $20K remaining fee waiver. Unlike the Board of
Governor's (BOG) fee waiver, this is a local fee waiver, so it reduces
District revenue. BPC didn't rank this proposal, but supported the
2011-12 fee waiver reduction. BPC will review this proposal.
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
11
Eliminate Summer Term and/or Use 11
Month Contracts
2012-13
6 months svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
12 Campus Shut Down
-
13
Reorganize Deans, division chairs, area
coordinators, etc
Reduce Non-Instructional Faculty
Release Time
2013-14
Permanent svgs
-
-
2012-13
2013-14
6 months svgs
Permanent svgs
-
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2/20/2013 1:05 PM
Shut down campus during breaks.
Shut down a building.
Reduce the times when the college is open.
Probably can't close a bldg, since no duplication of facilities at other
bldgs. Less svgs in out years as enrollments pick up.
Efficiencies and cost savings might be realized by reorganizing
these adminstrative functions. However, a portion of these noninstructional administrative costs are included in the collective
bargaining agreement. The $80K is a placeholder estimate. Will
require successful negotiations to implement. BPC ranked a similar
proposal as 3 out of 11.
80,000
2012-13
2013-14
6 months svgs
Permanent svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
15 Suspend Full Sabbaticals
600,020
2012-13
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
14
The District would offer no summer term classes or very limited
classes, for example only online classes. Note that the $600K BPC
savings estimate is more conservative assuming that instructional &
2013-14
certain other employees would not be reduced. If we move forward,
Permanent svgs then more detailed savings estimates will need to be developed.
Will require successful negotiations to implement. BPC ranked a
similar proposal as 8 out of 11.
Staff: $422,000 (11 months or 8.3% savings)
337,600 Instructional and non-instructional faculty: $649,000 (only the non116,820 instructional portion could be reduced)
Managers, confidential, etc: $208,000
145,600
Total: $1,278,000
6 months svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
DRAFT - For Discussion Only
ESTIMATES
200,000
-
Approximately $700K in non-instructional faculty release time is
included in the collective bargaining agreement. The $200K is a
placeholder estimate. Will require successful negotiations to
implement. BPC ranked a similar proposal as 2 out of 11.
200,000
2012-13
2013-14
6 months svgs
Permanent svgs
-
-
3
Suspend full sabbaticals. Will require successful negotiations to
implement. BPC will review this proposal.
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
Hold Open Vacant Positions Planned to
16
be Filled
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
Program Discontinuance - Eliminate
17
Academic Programs &/or Reduce Athletics
2012-13
2013-14
6 months svgs
Permanent Svgs
2012-13
2013-14
6 months svgs
Permanent svgs
-
-
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
19 Reorganize confidential staff
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2/20/2013 1:05 PM
This would not apply to instructional faculty vacancies. This option
would require that all vacant positions only be filled internally by a
general fund employee and will require transfers to fill key postions.
2012-13 savings is for 7 staff positions and 2 corridor positions for 6
months. Savings is net of estimated lumpouts and SERP costs.
These positions are currently planned to be filled or may have
already been filled. BPC ranked a similar proposal as 3 out of 11.
126,000
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
Contract Out Graphics, IT, Custodial,
18 Groundskeeping, Warehouse, Payroll,
Security, or other department
DRAFT - For Discussion Only
ESTIMATES
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
4
Potential savings from suspending academic programs or reducing
the athletic budget. For academic programs, review cost data to
identify high cost programs, inefficient programs, unsustainable
programs to suspend due to lack of State funding. Savings will
depend on the magnitude of reductions. BPC ranked a similar
proposal 7 out of 11.
Savings from contracting out for services through an RFP process.
ECS 88003.1 requirements. 2011-12 cost center budgets are as
follows:
Graphics/Mrkting: $490,000
IT: $1,102,000
Custodial: $690,000
Groundskeeping: $279,000
Warehouse/Logistics: $209,000
Payroll: $186,000
Security: $175,000
Will require successful negotiations to implement. BPC will review
this proposal.
Reorganize confidential staff for overall savings. BPC will review
this proposal.
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
20
Employees Pay Monthly for Health
Benefits Plus Inflation
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
21
Switch Medical Plans from Oak to
Spruce
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
22
Switch Medical Plans from Oak to HDHP
plan
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
23 Switch Dental Plans from plan 12 to 3
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2/20/2013 1:05 PM
2012-13
2013-14
6 months svgs
$100/month
Permanent Svgs
$106/month
45,600
36,600
25,200
107,400
96,672
77,592
53,424
227,688
2012-13
2013-14
6 months svgs
Permanent Svgs
38,673
31,040
21,372
91,086
2012-13
6 months svgs
84,273
67,640
46,572
198,486
2012-13
6 months svgs
8,906
7,148
4,922
20,975
77,347
62,081
42,744
182,172
DRAFT - For Discussion Only
ESTIMATES
Employees would pay a monthly premium for health and welfare
benefits. CR pays a flat rate per covered employee, regardless of
number of dependents, of $1,198/mo or $14,376/yr per covered
employee. Each year, monthly premiums would increase by the
benefit cost increase percent. Estimate is only employees who
receive health benefits, NOT all employees: 130 Classified, 61
Admin/Mgr/Conf, 83 Instr & Non-instructional Faculty, 274 Total
Benefitted Employees. In general fund: 76 Classified, 42
Admin/Mgr/Conf, and 61 Faculty. BPC ranked a similar proposal as
5 out of 11. These headcounts are for all funds, will research the
general fund employees receiving benefits.
District employees receive Blue Shield's Oak plan for health
benefits. CR pays a flat rate per covered employee, regardless of
number of dependents, of $1,198/mo or $14,376/yr per covered
employee. Based on current rates, the District could opt for the less
costly plan to save $1,018 annually per covered employee.
Estimate is only employees who receive health benefits, NOT all
employees: 130 Classified, 61 Admin/Mgr/Conf, 83 Instr & Noninstructional Faculty, 274 Total Benefitted Employees. In general
fund: 76 Classified, 42 Admin/Mgr/Conf, and 61 Faculty. Will
require successful negotiations to implement. BPC will review this
proposal. These headcounts are for all funds, will research the
general fund employees receiving benefits.
District employees receive Blue Shield's Oak plan for health
benefits. CR pays a flat rate per covered employee, regardless of
number of dependents, of $1,198/mo or $14,376/yr per covered
2013-14
employee. Based on current rates, the District could opt for the less
Permanent Svgs costly plan to save $2,218 annually per covered employee.
Estimate is only employees who receive health benefits, NOT all
employees: 130 Classified, 61 Admin/Mgr/Conf, 83 Instr & Noninstructional Faculty, 274 Total Benefitted Employees. In general
168,547 fund: 76 Classified, 42 Admin/Mgr/Conf, and 61 Faculty. Will
135,281 require successful negotiations to implement. BPC will review this
93,144 proposal. These headcounts are for all funds, will research the
general fund employees receiving benefits.
396,972
District employees receive Delta Dental's plan 12. CR pays a flat
rate per covered employee, regardless of number of dependents, of
$1,198/mo or $14,376/yr per covered employee. Based on current
2013-14
rates, the District could opt for the less costly dental plan to save
Permanent Svgs $88 annually per covered employee. Estimate is only employees
who receive health benefits, NOT all employees: 130 Classified, 61
Admin/Mgr/Conf, 83 Instr & Non-instructional Faculty, 274 Total
Benefitted Employees. In general fund: 76 Classified, 42
17,811 Admin/Mgr/Conf, and 61 Faculty. Will require successful
14,296 negotiations to implement. BPC will review this proposal. These
headcounts are for all funds, will research the general fund
9,843
employees receiving benefits.
41,950
5
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
24 Switch Vision Plans from C7 to A1
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
25
Associated Students Fund Clerical
Support
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
26
Consolidate Admissions, Financial Aid,
Records
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
27
Reduce Campus Public Safety to less
than 24/7 coverage
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
28
Suspend Board of Trustees Stipends
(one-time)
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
29 Revenue generating initiatives
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2/20/2013 1:05 PM
2012-13
2013-14
6 months svgs
Permanent Svgs
2,841
2,280
1,570
6,691
5,682
4,560
3,140
13,382
2012-13
2013-14
6 months svgs
Permanent Svgs
5,000
5,000
10,000
10,000
2012-13
2013-14
6 months svgs
Permanent Svgs
50,000
2012-13
DRAFT - For Discussion Only
ESTIMATES
District employees receive plan C7 vision coverage. CR pays a flat
rate per covered employee, regardless of number of dependents, of
$1,198/mo or $14,376/yr per covered employee. Based on current
rates, the District could opt for the less costly vision plan to save $75
annually per covered employee. Estimate is only employees who
receive health benefits, NOT all employees: 130 Classified, 61
Admin/Mgr/Conf, 83 Instr & Non-instructional Faculty, 274 Total
Benefitted Employees. In general fund: 76 Classified, 42
Admin/Mgr/Conf, and 61 Faculty. Will require successful
negotiations to implement. BPC will review this proposal. These
headcounts are for all funds, will research the general fund
employees receiving benefits.
Associated Students could provide some funds to help offset costs
related to the clerical support provided by the District. BPC ranked
a s imilar proposal as 9 out of 11.
Efficiencies from combining services and staffing. BPC ranked a
similar proposal as 1 out of 11.
100,000
Certain shifts would not be covered, so County Sheriff would be first
Permanent Svgs responder. Night shifts when school is not in session might be an
example. Savings estimate is based on 90 days with one shift not
9,000 covered. BPC ranked a similar proposal as 11 out of 11.
2013-14
6 months svgs
4,500
4,500
9,000
2012-13
2013-14
6 months svgs
Permanent Svgs
13,000
13,000
These stipends would be held back during 2012-13. Savings is for 6
months. BPC ranked a similar proposal as 8 out of 11.
-
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
6
Move forward on some of the revenue generating initiatives
previously identified by the BPC, such as locating cell phone or
communications towers on District property. Additional revenue is
already included in the budget, so conservatism requires that the
estimate not be increased until some of the new money starts to
materialize. BPC ranked a similar proposal as 4 out of 11.
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
30 Centralize AOA staff
2012-13
31
Eliminate printing of all catalogs and
schedules
-
2013-14
6 months svgs
Permanent Svgs
-
-
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
33 Reduce Travel & Supplies Costs
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
34 Use More Web-Based Services
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
35 Sell or Lease Property
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
2/20/2013 1:05 PM
12,500
2012-13
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
32 Reduce Software Costs
By centrally locating AOA support staff for the instructional areas to
Permanent Svgs one location, efficiencies and savings might be realized. Savings is
12,500 about .25 FTE at about $30K salary. BPC ranked a similar proposal
as 6 out of 11.
2013-14
6 months svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
DRAFT - For Discussion Only
ESTIMATES
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
7
Place catalogs and schedules on CR website. Eureka main
schedules are online only. Mendocino and Del Norte centers are
online and paper. BPC will review this proposal.
Review our software expenses for lower cost alternatives.
Tutor.com and Parature
Convert from Turn It In to Safe Assign
There will be transition costs to go to new software. Also software
prices increase, so savings is net of inflation.
Need IT Dept & Technology Planning Committee review. BPC
previously reviewed a similar proposal.
Eliminate or reduce the travel budget. Use more online professional
development and training.
Total travel budget is about $200K. We must pay for travel between
Mendocino, KT, Del Norte, etc. We have already limited travel, so
cannot realistically budget for a substantial cut.
Can't cut utility, insurance, and other "fixed cost" services and
supplies budgets. Already took $200K cut in 2012-13. BPC
previously reviewed a similar proposal.
Use more automated or web based services for routine interactions,
registration, financial aid, payments, parking permit purchase.
Students may appreciate not having to stand in line for routine
transactions. Will take time to implement. BPC previously reviewed
a similar proposal.
Extra Mendocino property. Extra Del Norte property. Extra Eureka
main property & bldgs.
Garberville budget is minimal (utilities), so recommendation is to not
add staffing.
Will require staff research, legal review and time to market property.
No return in the near term. Proceeds from property sale cannot go
to operating expenses. BPC previously reviewed a simliar proposal.
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
36 Use Higher One Card for Student ID
2012-13
2013-14
6 months svgs
Permanent Svgs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
37 Reduce Faculty Overload Assignments
-
One-time draw from Employee Benefit
Trust (one-time)
2013-14
6 months svgs
Permanent Svgs
-
-
2012-13
2013-14
6 months svgs
Permanent Svgs
-
-
2012-13
2013-14
6 months svgs
Permanent svgs
-
-
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
39 Layoffs
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
SAVINGS ESTIMATE SUMMARY - Includes some "duplicates"
Classified
430,076
Instr & Non-instructional Faculty
470,165
Admin/Mgr/Conf
257,167
Other
243,803
GRAND TOTAL
1,401,211
2/20/2013 1:05 PM
Savings is estimated on ID card stock and printers, would still need
to take pictures for Higher One. Will need to negotiate with Higher
One. BPC previously reviewed a similar proposal.
BPC will review this proposal.
2012-13
Classified
Instr & Non-instructional Faculty
Admin/Mgr/Conf
Subtotal
38
10,000
DRAFT - For Discussion Only
ESTIMATES
$3 million fund balance in the employee benefit trust may be drawn
upon by the general fund. The balance was built up in earlier years
when about $1.6 million of the general fund's excess fund balance
was transferred to the employee benefit trust. However, the trust is
currently drawing against those balances because annual payments
into the trust are less than the payments out to beneficiaries. Since
this is a one-time solution, we must identify a permanent savings for
2013-14 for any amounts noted here. BPC ranked a similar
proposal as 8 out of 11.
Faculty layoff would require multiple annual advance notices and
would be effective July 1. Administrative layoffs require March 15
advance notice and would be effective July 1. Manager, classified
and confidential would require 45 days advance notice. Savings will
depend on the magnitude of reductions. BPC ranked a similar
proposal as 10 out of 11, and 11 out of 11.
978,867
1,080,602
532,511
463,606
3,055,585
8
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
This is a summary of available plans and fees. More detailed plan
information can be obtained directly from Human Resources, the
North Coast Medical Insurance Group, and the vendors. Note that
North Coast Schools Medical Insurance Group requires at least 45
days advance notice if CR chooses to switch plans.
Summary of Evidence
Health and Welfare Benefits Programs Options:
2/20/2013 1:05 PM
DRAFT - For Discussion Only
ESTIMATES
9
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
2/20/2013 1:05 PM
10
DRAFT - For Discussion Only
ESTIMATES
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
2/20/2013 1:05 PM
11
DRAFT - For Discussion Only
ESTIMATES
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
2/20/2013 1:05 PM
12
DRAFT - For Discussion Only
ESTIMATES
2013-14 CR Bgt Forecast3.xlsx Bgt Options
College of the Redwoods
2012-13 Budget Balancing Options
DRAFT - For Discussion Only
ESTIMATES
Education Code Section 88003.1
(a)Notwithstanding any other provision of this chapter, personal services contracting for all services currently or customarily performed by classified school
employees to achieve cost savings is permissible, unless otherwise prohibited, when all the following conditions are met:
(1)The governing board or contracting agency clearly demonstrates that the proposed contract will result in actual overall cost savings to the community college
district, provided that:
(A)In comparing costs, there shall be included the community college district's additional cost of providing the same service as proposed by a contractor. These
additional costs shall include the salaries and benefits of additional staff that would be needed and the cost of additional space, equipment, and materials
needed to perform the function.
(B)In comparing costs, there shall not be included the community college district's indirect overhead costs unless these costs can be attributed solely to the
function in question and would not exist if that function was not performed by the community college district. Indirect overhead costs shall mean the pro rata
share of existing administrative salaries and benefits, rent, equipment costs, utilities, and materials.
(C)In comparing costs, there shall be included in the cost of a contractor providing a service any continuing community college district costs that would be
directly associated with the contracted function. These continuing community college district costs shall include, but not be limited to, those for inspection,
supervision, and monitoring.
(2)Proposals to contract out work shall not be approved solely on the basis that savings will result from lower contractor pay rates or benefits. Proposals to
contract out work shall be eligible for approval if the contractors wages are at the industry's level and do not undercut community college district pay rates.
(3)The contract does not cause the displacement of community college district employees. The term "displacement" includes layoff, demotion, involuntary transfer
to a new classification, involuntary transfer to a new location requiring a change of residence, and time base reductions. Displacement does not include changes
in shifts or days off, nor does it include reassignment to other positions within the same classification and general location or employment with the contractor, so
long as wages and benefits are comparable to those paid by the school district.
(4)The savings shall be large enough to ensure that they will not be eliminated by private sector and community college district cost fluctuations that could
normally be expected during the contracting period.
(5)The amount of savings clearly justify the size and duration of the contracting agreement.
(6)The contract is awarded through a publicized, competitive bidding process.
(7)The contract includes specific provisions pertaining to the qualifications of the staff that will perform the work under the contract, as well as assurance that the
contractor's hiring practices meet applicable nondiscrimination standards.
(8)The potential for future economic risk to the community college district from potential contractor rate increases is minimal.
(9)The contract is with a firm. A "firm" means a corporation, limited liability corporation, partnership, nonprofit organization, or sole proprietorship.
(10)The potential economic advantage of contracting is not outweighed by the public's interest in having a particular function performed directly by the community
college district.
(b)Notwithstanding any other provision of this chapter, personal services contracting shall also be permissible when any of the following conditions can be met:
(1)The contract is for new community college district functions and the Legislature has specifically mandated or authorized the performance of the work by
independent contractors.
(2)The services contracted are not available within community college districts, cannot be performed satisfactorily by community college district employees, or are
of such a highly specialized or technical nature that the necessary expert knowledge, experience, and ability are not available through the community college
district.
(3)The services are incidental to a contract for the purchase or lease of real or personal property. Contracts under this criterion, known as "service agreements,"
shall include, but not be limited to, agreements to service or maintain office equipment or computers that are leased or rented.
(4)The policy, administrative, or legal goals and purposes of the community college district cannot be accomplished through the utilization of persons selected
pursuant to the regular or ordinary hiring process. Contracts are permissible under this criterion to protect against a conflict of interest or to ensure independent
and unbiased findings in cases where there is a clear need for a different, outside perspective. These contracts shall include, but not be limited to, obtaining
expert witnesses in litigation.
(5)The nature of the work is such that the criteria for emergency appointments apply. "Emergency appointment" means an appointment made for a period not to
exceed 60 working days either during an actual emergency to prevent the stoppage of public business or because of the limited duration of the work. The method
of selection and the qualification standards for an emergency employee shall be determined by the community college district. The frequency of appointment,
length of employment, and the circumstances appropriate for the appointment of firms or individuals under emergency
(6)The contractor will provide equipment, materials, facilities, or support services that could not feasibly be provided by the community college district in the
location where the services are to be performed.
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(7)The services are of such an urgent, temporary, or occasional nature that the delay incumbent in their implementation under the community college district's
regular or ordinary hiring process would frustrate their very purpose.
(c)This section shall apply to all community colleges, including community college districts that have adopted the merit system.
(d)This section shall apply to personal service contracts entered into after January 1, 2003. This section shall not apply to the renewal of personal services contracts
subsequent to January 1, 2003, where the contract was entered into before January 1, 2003, irrespective of whether the contract is renewed or rebid with the
existing contractor or with a new contractor.
Also reference: http://sclscal.org/files/clientupdates/12-03(CC).pdf
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