PRIVATIZATION ADVISORY COMMITTEE MEETING
of the
CHARLOTTE-MECKLENBURG BOARD OF EDUCATION
June 10, 2012
The Privatization Advisory Committee held its thirteenth meeting on Tuesday, June 12, 2012 in conference
room 527 on the fifth floor of the Charlotte-Mecklenburg Government Center.
Committee Members Present
Rob Harrington, Chairperson
Joan Belk
Sylvia Grier
Barry Hall
Kathleen Rose-Bellot
Susan Walker
John White
Committee Members Absent:
Mike Murdock
Cassandra Tydings
Susan Walker
CMS Staff Present
Kevin Bringewatt, CMS Legal Counsel
Mike Raible, Ex. Director, Planning/Project Management
Sheila Shirley, Chief Finance Officer
LuEllen Richard, Ex. Director, Financial Services
Mike Martin, Director, Payroll
Kay Hall, Director, Business Systems
Greg Bame, Senior Purchasing Agent
Others
Rick Fratcher, Infinisource
Todd LaFever, Infinisource
Randy Welch, ADP
Gregg Sumrow, ADP
Laura Coggins, ADP
Call to Order
The meeting was called to order at 8:06am.
Opening Comments
Rob Harrington welcomed everyone and acknowledged that the committee had a full agenda, so presentations
and discussions would begin immediately.
Minutes
The committee minutes for the April 10, 2012 meeting were approved without change. No minutes were
prepared for the committee’s May 8, 2012 meeting because of a lack of quorum.
Presentation by Infinisource
Infinisource is a new company to the Charlotte area specializing in human capital management. Rick Fratcher
presented a powerpoint illustrating an overview of services provided by Infinisource. The presentation
included the following themes:
 Macro Challenges (extensive budget cuts, more out of less, healthcare costs, etc.)
 Departmental Initiatives (maintain compliance systems, evaluation outsourcing as alternative, etc.)
 New Perspectives (what can be leveraged, best practices from private sector, etc.)
 Departmental Wins (dollars can be used for teaching, insulation from future uncertainties, etc.)
 Theory (cost reduction, improved service, technology insulation, focus on strategic function, etc.)
 Typical In-House Issues (initial cost, uncertainty, cost of errors, upgrade nightmares, etc.)
 Typical Outsource Systems (data not integrated, loss of control of database, limited liability, etc.)
 Differentiators (data integration, technology embedded service, cost to value, etc.)
 Infinisource/CMS Partnership (local, desire to succeed, industry expertise, I-Guarantee, etc.)
There was a brief period for questions which focused on the capacity of Infinisource to service large clients,
whether they service other large public school districts, an assurance that the payroll function could be
isolated from a fuller suite of services which offer more value and why they chose to locate their Charlotte
headquarters in Ballantyne.
The Infinisource powerpoint presentation is attached as part of the minutes.
Presentation by ADP
ADP is a human capital management firm founded in 1949; ADP pays one out of every five Americans.
Randy Welch presented a powerpoint illustrating the hosted (cloud) services provided by ADP, as well as an
explanation of the standalone, traditional and BPO services. Their integrated service delivery includes:
 Pre-Employment Services (recruitment, candidate pre-screening, background checks, onboarding, etc.)
 Workforce Administration (payroll administration, W2 processing, employee/manager self service, etc.)
 Benefits Administration (Cobra, flexible spending accounts, total compensation statements, etc.)
 Talent Management (compensation/performance/learning management, succession planning, etc.)
The presentation also included government and education critical themes: budget crisis, human capital crisis,
doing more with less, best practices, costly ERP upgrades, legacy systems and compliance issues/concerns.
There was a brief explanation of the PwC methodology into the total cost of ownership for the four core
business functions of payroll, workforce administration, time/attendance and health/welfare administration.
Mr. Welch indicated that the total cost of ownership finding from the PcW analysis was an average 40%
reduction in cost.
Following the presentation, the committee asked questions regarding the names of other large public school
districts serviced by ADP, how would compliance reported be handled with the state, at what point could the
PcW analysis be done and how long it would take to implement a conversion of service. Regarding the PcW
analysis, Mr. Welch indicated that ADP would pay for the analysis, provide a final report, look for an award
letter following an RFP, then engage their legal resources for completion of the project, with implementation
anticipated within six months.
A copy of the ADP presentation is attached as part of the minutes.
Presentation from CMS Technology Services
Kay Hall provided a historical synopsis of the Lawson integrated suite of services which provides one solution
that flows seamlessly from HR to payroll to the general ledger; she also gave brief details of the Kronos project
which provides time/attendance information on non-exempt employees. Ms. Hall explained that she leads the
business system department with 13 full time employees, four full time consultants and two half-time
consultants. She made several notable points, including:
 the large investment made upfront in Lawson systems although their consultants are long gone
 the recent foundational upgrade accomplished with internal personnel
 the positive partnership between payroll and technology
Ms. Hall also wanted to stress that ADP, Infinisource and Kronos all have indicated that best practice is to
integrate HR and payroll rather than operate segregated systems. Additionally, the state of North Carolina
(DPI) cloud initiative is addressing solutions for HR/payroll for NC LEAs, although their timeline is not certain.
Update on Custodial Services RFP
Greg Bame informed the committee members that the RFP pre-bid conference for administrative custodial
service is scheduled for 8:30am on June 25 at Oakhurst Administrative Center on Monroe Road. After listening
to the presentations today, Mr. Bame also cautioned that any allowance of a PcW analysis by ADP might
become an issue during the RFP bidding process.
Conclusion
The next committee meeting will be July 10, 2012. At that time, the committee will debrief on the Infinisource
and ADP presentations. Mr. Harrington requested that the custodial services RFP be sent to members along
with the June minutes. Also being sent will be a confidential statement to be signed by committee members in
advance of further RFP discussions.
Closing
Mr. Harrington adjourned the meeting at 10:10am.
The meeting notes were recorded by Diane L. Wilson.
____________________________________
Robert Harrington, Chairperson
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Diane L. Wilson, Scribe