Outsourcing January 4, 2012 Michael E. Finn, CFO

Custodial Eliminate full time P.M. positions (sans 1 full time supervisory position) over next three years and fill with part time employees (no benefits or ASRS) Hire only temporary help between now and June 30, 2012 Begin hiring part time staff July 1, 2012 for 9- month positions Student work program – Met with Student Advisory Committee

Quote provided by ABN in 2011 of $.76 per square foot for basic cleaning package Part time proposal will provide basic cleaning for $.62 per square foot 3 Custodial

4 Custodial Financials High Schools Current Labor Cost$1,804, Out Source Bid$1,342, Part Time Expense$1,046, Elementary and Support Current Labor Cost$2,908, Out Source Bid$2,204, Part Time Expense$1,968, Total Current Labor Cost$4,713, Out Source Bid$3,547, Part Time Expense$3,015, Savings Out Source$1,165, Part Time$1,697,933.67

No contracts are currently available on State or Cooperative agreements Reviewed neighboring District contract and met with president of company – Agreement has pass through expenses and management fee of $9,350 per month ($112K yr) – District maintains two employees to manage contract PUSD positions potentially replaced with outsourcing equal $217.3K 5 Food Service

No agreements on State or cooperative contracts Continue to recommend moving to centralized maintenance process as designated in original 2009 reduction plan to begin July 1, 2012 ($500K) 6 Maintenance

No agreements are currently available on State Contract or Cooperative Agreements – Phoenix Union agreement was reviewed for application in PUSD – Phoenix Union only outsourced the southern portion of the district due to no Valley Metro Service – Current contract calls for $ per mainstream run and $ per extracurricular run 65 mainstream runs per day equals $16,864 per day Planned 5,246 miles / $3.21 per mile 7 Transportation

PUSD Total Expense = $8.6M – General education and extracurricular expenses account for $7.16M annually – Special Education accounts for $1.4M annually Total miles equate to 2.6M Total cost per mile = $3.32 – Includes maintenance and fuel for white fleet – Includes ancillary travel expenses such as FBI – PUSD would also need to retain staff to manage the contract and respond to parents 8 Transportation

QUESTIONS AND DISCUSSION 9