As pressure on town and school operating budgets increases, Andover is looking at consolidating and regionalizing services to stay out of the red.

The School Department also explored privatizing its custodial services this spring as a means of cutting costs, with the school custodians union agreeingd to contract concessions to help save jobs and ensure the schools would not hire a private cleaning company next year.

The 41 school custodians had been the only Andover employee union working without a contract.

Under the terms of a new contract announced in early June, the custodians will forgo the 3.5 percent cost-of-living raises the majority of school employees will receive next year.

That will save $66,000. School custodians are still eligible for longevity raises and will receive 3 percent retroactive raises for the previous and current fiscal years.

The custodians also agreed to cut their overtime pay in half, saving $35,500.

In return for those and other concessions, the School Committee agreed not to pursue the outsourcing of custodial services before June 30, 2010, the end of the next fiscal year.

Over many years, Town Manager Reginald "Buzz" Stapczynski said the town has chosen to privatize certain services, including trash and recycling pickup, snow removal and tree maintenance.

Stapczynski said privatizing the town's trade work would not likely save money because Andover would have to pay contractors like plumbers, electricians and carpenters prevailing wages.

The town will consolidate several clerical positions this summer, Stapczynski said.

"We're not going to fill all of our office and clerical vacancies," said Stapczynski. "So there will be a need for job sharing."

Stapczynski said Andover consolidated town and school Human Resources and Plant & Facilities departments in the 1980s. Recent informal discussions have involved consolidating town and school business offices, he said.

A technology committee is also exploring potential cost savings between the town and school information technology departments.

Starting July 1, the town will enter into a one-year agreement and pay a fee to use North Andover's sewer flusher truck to clean underground sewer pipes.

The agreement was drawn up after selectmen denied a request to buy a similar vehicle for $250,000.

"They were looking for a creative approach," said Stapczynski. "That's what we came up with."

Stapczynski said the town receives money from the state because Memorial Hall Library is a regional library. The town also sells millions of gallons of water to North Reading each year.

The School Department is also pursuing several regionalization initiatives.

Under a one-year agreement, Greater Lawrence Technical School will pay Andover schools $40,000 to have Andover Food Services Director Gail Koutroubas run its cafeteria.

The deal means Greater Lawrence Superintendent-Director Judy Ann DeLucia will not need to hire a replacement for her former food services director, who retired in January.

DeLucia said the partnership will save the school about $50,000 in costs associated with salary and benefits.

The $40,000 will be placed in Andover's food services revolving account. About $30,000 will go toward replacing aging kitchen equipment.

The town is budgeting $371,798 to send students to the technical school next year.

School Committee Chairwoman Deb Silberstein said Superintendent Claudia Bach has also met with officials from four area school districts to explore potential cost-savings related to online classes for students and professional development for staff members.

"This is all brainstorming," said Silberstein. "But we're continuing to work together."