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EDUCATION Appeals court rules against Central Point schools on bus outsourcing Bus outsourcing process violated law, judges say Comment By Teresa Thomas Mail Tribune MailTribune.com By Teresa Thomas Mail Tribune Posted May. 6, 2015 at 5:50 PM Updated May 6, 2015 at 5:58 PM By Teresa Thomas Mail Tribune Posted May. 6, 2015 at 5:50 PM Updated May 6, 2015 at 5:58 PM » Social News The Oregon Court of Appeals has ruled that the Central Point School District violated the law by not conducting a thorough cost analysis before contracting out its student bus services in 2011. The appellate court overturned Jackson County Circuit Court Judge Ron Grensky’s 2012 decision to dismiss the lawsuit filed by former district bus driver Stephanie Hicks and sent the case back to the lower court for further review and a judgment consistent with its opinion that the district was at fault. Oregon Revised Statute 279B requires that public agencies — in this case, the school district — perform a detailed cost-benefit analysis before outsourcing government services of more than $250,000. This analysis must demonstrate that outsourcing services would be cheaper than providing them in-house. In 2011, district officials began considering outsourcing transportation services to a private company as an alternative to replacing its aging bus fleet. Former district Business Manager Vicki Robinson and, later, transportation consultant John Fairchild conducted separate cost analyses, and in June 2011, the School Board agreed to a contract with First Student Inc. Shortly after, the district laid off its 34 bus drivers after First Student agreed to hire all the “qualified drivers.” While the majority of the district’s former bus drivers were hired by First Student, a few retired, and at least one, Hicks, was not hired and was told she was not qualified. Less than a month later, Hicks, backed by the Oregon School Employees Association, sued the school district for failing to conduct a comprehensive analysis. “(The OSEA) represented the drivers when it was an in-house operation and were involved in the struggle to convince the School Board not to contract out,” said Ed Edwards, director of government relations for OSEA . In 2012, Grensky dismissed the lawsuit and ruled that the district had conducted a satisfactory cost analysis. Nonetheless, on April 22, the appellate court ruled that the analyses did not comply with ORS 279B.033 and had been calculated on the assumption that First Student would pay the same wages and benefits as the district. According to one study conducted in 2013 by the University of Oregon’s Labor Education and Research Center, many of the bus drivers — 15 out of the 34 were interviewed — were earning what they had been while working for the district, but some suffered wage loss due to reduced working hours. Further, at the time of the study, none of the former district drivers working for First Student were enrolled in the company’s health insurance or retirement plans. They also had fewer benefits — such as paid holidays, sick days and personal days — available to them. The appellate court’s ruling stated that the “district’s reliance on assumptions in preparing the cost analysis required by the statutes rendered that cost analysis ‘contrary to law.’ ” “One thing that (appellate court ruling) made clear is that the case belongs in the judicial court process, and the second thing we know is that the cost analysis required by law was not done properly,” Edwards said. Neither Edwards nor the district’s attorney, Brett Mersereau, could predict what will happen next in the case. The district, Mersereau said, is still evaluating the ruling and its options. “The timeline depends on whether either of the defendants (the district or First Student) files a petition for review with the Supreme Court and that is still being considered,” he said. Mersereau also said the appeals court ruling was unclear about how the case should proceed if it does return to circuit court. “There could be a wide range of outcomes in the trial court,” he said. Reach education reporter Teresa Thomas at 541-776-4497 or [email protected] . Follow her at www.twitter.com/teresathomas_mt . By Teresa Thomas Mail Tribune MailTribune.com By Teresa Thomas Mail Tribune Posted May. 6, 2015 at 5:50 PM Updated May 6, 2015 at 5:58 PM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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