REPORT TO COUNCIL
SUBJECT
Title
Authorization to Modify Existing Contracts for Citywide Temporary Personnel Placement Services for the Department of Human Resources (F14-55)
Report
BACKGROUND
Approval is requested to modify existing temporary personnel placement services contracts with AppleOne Employment Services and Coast Personnel Services Inc. by increasing the not-to-exceed value of the contracts to $200,000 each. Approval is also requested to delegate authority to the City Manager to renew the contracts for three additional one-year periods, consistent with the five-year total contract timeframe established in the Request for Proposals (RFP) conducted in 2012, as more fully explained below.
ENVIRONMENTAL REVIEW
N/A
DISCUSSION
RFP No. F1103-56 was issued in April 2012 in order to establish contracts for temporary personnel placement services for use by all City departments. One-year agreements in the amount of $75,000 were awarded to AppleOne Employment Services and Coast Personnel Services, Inc. under the City Manager's contract award authority, effective July 1, 2012. The agreements were renewed in July 2013 for $75,000 each. The contract amounts were based on actual expenses from prior fiscal years.
In the last several months, a number of factors have led to a significant increase in the use of temporary staff, requiring additional contract expenditures. These factors include backfilling for long-term absences due to employee illness, retirements, resignations and promotional opportunities. In order to meet the demand for temporary staffing, the contract with AppleOne was amended in December 2013 to increase the total not-to-exceed value to $95,000.
The RFP envisioned an initial three-year contract term, plus two one-year renewals, for a total timeframe of five years. However, since the City was establishing contracts with two new staffing agencies, Human Resources staff opted to enter into one-year agreements to maintain maximum flexibility while evaluating the new service providers. Service has been acceptable, and staff would like to continue contracting with the firms.
FISCAL IMPACT
Due to the recent increase in the use of temporary staff, it is recommended that the total value of each contract be increased to $200,000 for the current period and successive renewal periods. Demand is expected to be high for the foreseeable future. Budgeted funds are available in various operating programs throughout the City.
It should be noted that temporary staffing services are utilized only when Departments have existing funding to absorb the costs within their respective budgets, and the City Manager has approved a hiring requisition.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1. Approve modification of existing contracts with AppleOne Employment Services and Coast Personnel Services, Inc. by increasing the not-to-exceed value to $200,000 each; and
2. Delegate authority to the City Manager to renew the contracts for three additional one-year periods consistent with the terms of Request for Proposals No. F1103-56, provided pricing and service remain acceptable.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director, Finance
Reviewed by: Teri Silva, Director, Human Resources
Approved by: Robert A. Walker, Interim City Manager
Attachments
ATTACHMENTS
1. Draft Second Amendment to AppleOne Employment Services Contract
2. Draft Amendment to Coast Personnel Services Contract