TITLE
Recommendation to, by motion of the City Council, refer to City of Long Beach and Long Beach Unified School District Joint Committee a request that the Committee explore what, if any, cost reductions could be realized by both organizations through a joint purchasing agreement for items commonly used and purchased by both organizations, including, but not limited to, health care benefits.
DISCUSSION
The Press Telegram recently reported: "In a worst-case scenario, the Long Beach Unified School District (LBUSD) projects a $189 million deficit out of its $700 million operating budget by 2014 if state budget cuts continue." The City of Long Beach also recently reported a projected $26 million dollar deficit if revenues continue to decline.
Both entities employ approximately the same number of employees and spend approximately the same amount in millions of dollars for health care benefits. Both entities purchase office supplies, equipment, and materials (asphalt, concrete).
Recently, the City Council formed a Joint-Use Committee between the City and LBSUD as a way to explore (among many items) the sharing of recreational and sports facilities.
Since both organizations face deficits and both organizations purchase similar items, including health care benefits, there may bean opportunity to reduce costs for both government agencies due to bulk purchasing agreements.
FISCAL IMPACT
The implementation of joint purchasing could potentially result in considerable savings to the City of Long Beach and the Long Beach Unified School District.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
COUNCILWOMAN GERRIE SCHIPSKE
FIFTH DISTRICT
COUNCILWOMAN RAE GABELICH
EIGHTH DISTRICT
COUNCILMEMBER STEVEN NEAL
NINTH DISTRICT