It would be $3.5 million cheaper for Memphis Light, Gas and Water Division to switch to a new outside security guard company than it would be to hire the current outside security guards as MLGW staffers, a manager for the utility said Thursday.

The statement by Von Goodloe, MLGW’s vice president of human resources, came as members of MLGW’s board remained split on the question of how to treat the outside security guards who work at the utility.

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Two Memphis companies, CDA and Top Notch Security Inc.currently work together to provide about 110 security guards to the utility.

MLGW recently requested proposals from security firms.

The lowest proposal — $2.5 million — came from another Memphis company, Imperial Security, which would also work in partnership with Top Notch Security.

Hiring the guards currently employed by CDA and Top Notch at MLGW would cost $6 million, Goodloe said.

Board member Steven Wishnia believes CDA and Top Notch should get the contract.

“I’m just looking at it as a competitive bid where we’re looking for the lowest price to get the job done to save the ratepayers the money,” he said.

But board member Dedrick Brittenum says changing the contract would likely result in a big pay cut for the security guards who do the work now.

He says he can’t accept that result in good conscience.

Board members have been talking about the issue since early March, and Thursday’s meeting ended with the matter still unresolved.

In the meantime, CDA and Top Notch Security Inc. continue to operate under a 90-day contract.

Also Thursday, MLGW approved several routine spending items, including a five-year, $15 million contract with Fulton, Mo.-based AZZ %7c Central Electric Manufacturing Company for pieces of specialized equipment known as substation metal-clad switchgear complexes.

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