(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 districtâs 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 districtâs 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 contractorâs wages are at the industryâs 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 âdisplacementâ 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 contractorâs 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 âfirmâ means a corporation, limited liability company, partnership, nonprofit organization, or sole proprietorship. (10) The potential economic advantage of contracting is not outweighed by the publicâs 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 col
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