REPORT TO COUNCIL
SUBJECT
Title
Award a Contract to All City Management Services Inc. for Crossing Guard Services (F21-150) and Approve Budget Modification No. 10 in the Amount of $92,375
Report
BACKGROUND AND DISCUSSION
In December 2015, staff identified programmatic issues with the City’s Crossing Guard Program (RTC No. 15-1083). Council directed staff to provide a recommendation for alternative methods of service delivery, including contracting out professional services to provide and administer the Crossing Guard Program.
After completion of an RFP process in 2016, the City awarded a contract to All City Management Services Inc. (ACMS) to provide temporary staffing for Crossing Guard services for five years (RTC No. 16-0750), which expires on December 31, 2021.
On June 23, 2021, a Request for Information was solicited to determine if there were other service providers that had the capacity and experience to provide Crossing Guard Services in Sunnyvale. Eighteen (18) potential contractors were notified, and the City received two (2) responses. ACMS was the only vendor that demonstrated the capacity and experience to continue providing these services. The scope of services is provided in Attachment 1.
Since the initial contract was issued in April 2016, the number of sites requiring crossing guards has increased. In July 2017, funds were added to the contract to include summer school programs (RTC No. 17-0646). In January 2020, budgeted funds were increased to accommodate the addition of two intersections (El Camino Real/Henderson and El Camino Real/Poplar) (RTC No. 20-0158). Currently, 40 sites are staffed, with some sites requiring two crossing guards due to their location at a busy/large intersection. With 180 regular school days and summer school programs, the estimated number of staffing hours is 19,262 per year.
On March 19, 2021, ACMS notified the City of an hourly rate increase pursuant to the terms of their contract. The rate increase was based on the January 2021 increase in Sunnyvale’s minimum wage rate, as well as an adjustment to meet the California split shift wage law requirements. Hourly rates increased from $33.92 per hour to $41.78 per hour (a 23% increase). The mid-contract increase in the hourly rate reduced the number of staffing hours that could be provided from approximately 19,200 to 15,512 per year. However, due to implementation of remote learning in FY20/21, the expenses were substantially lower than the budgeted amount, so a budget modification was not required at that time.
Schools are now back to in person instruction, creating a need to analyze the current budget in light of the March 2021 rate increase. On November 19, 2021, ACMS notified the City of a rate increase due to various economic factors, including the increase in minimum wage that takes effect on January 1, 2022. At the quoted hourly rate of $43.94, the projected contract total is an estimated $846,372 for Year 1. The current budgeted funding for this activity is $661,622. Therefore, to provide coverage at all identified intersections, a budget increase of $184,750 is required in the first year of the contract. DPS is requesting a budget modification of $92,375 (50% of the total increase) in FY21/22 to support anticipated additional contract costs from January 1, 2022 - June 30, 2022.
EXISTING POLICY
In accordance with the provisions of Sunnyvale Municipal Code Chapter 2.08.060, an alternate method of procurement may be used which do not compromise the integrity of the procurement process if approved in advance by the City Manager.
Additionally, in accordance with Sunnyvale Municipal Code 2.08, City Council approval is required for the procurement of goods and/or services exceeding $250,000 in any one transaction.
ENVIRONMENTAL REVIEW
The Action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378 (a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
A total of $661,622 is available to fund this contract in the Department of Public Safety (“DPS”) operating budget as stated in Attachment 2 to the report. In order to meet the current staffing needs for crossing guard services, additional funds of $184,750 are required in Year 1 of the contract. A budget modification of $92,375 will be required to increase the contract on the effective date of January 1, 2022, with funds transferred from General Fund reserves to the Department of Public Safety Operating Budget (Program 12700).
It should be noted that the contract requires that the vendor meet the current Sunnyvale requirements for minimum wage and allows the vendor to increase rates charged to the City accordingly with sufficient notice. Future increases in minimum wage may require review and revision to the budget for this activity. If future budget modifications are required, those will be presented before City Council through the appropriate budget adjustment process. Assuming a normal inflationary pattern, the increased cost over twenty years will be approximately $5 million. The impact of this increase will be included in the FY 2022/23 recommended Budget.
Budget Modification No. 10
FY 2021/22
|
|
Current |
Increase/ (Decrease) |
Revised |
|
General Fund |
|
|
|
|
Expenditures |
|
|
|
|
Program 12700 - Public Safety Administrative Services |
$ 6,122,265 |
$ 92,375 |
$ 6,214,640 |
|
|
|
|
|
|
Reserves |
|
|
|
|
Budget Stabilization Fund |
$ 45,712,797 |
($92,375) |
$ 45,620,422 |
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, Sunnyvale Public Library and Department of Public Safety. In addition, the agenda and report are available at the Office of the City Clerk and on the City's website.
ALTERNATIVES
1. Award a contract in substantially the same form as Attachment 1 to the report in the amount not to exceed $846,372 to All Cities Management Services, Inc. to provide Crossing Guard Services, Approve Budget Modification No. 10 in the amount of $92,375, and authorize the City Manager to amend and renew the contract for four additional one-year terms, subject to available budget, if pricing and service remain acceptable to the City.
2. Do not award the contract, and direct staff to return to Council with an alternate proposal for a service delivery level that fits within the current budget.
3. Amend the existing contract with ACMS in substantially the same form as Attachment 3 to the report to extend for a period of six months, in the amount of $507,823 (based on a 10-month school year, at a rate of $84,637.20 per month) to allow staff time to complete Alternative 2, and Approve Budget Modification No. 10 in the amount of $92,375.
4. Other direction as provided by Council.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Award a contract in substantially the same form as Attachment 1 to the report in the amount not to exceed $846,372 to All Cities Management Services, Inc. to provide Crossing Guard Services, Approve Budget Modification No. 10 in the amount of $92,375, and authorize the City Manager to amend and renew the contract for four additional one-year terms, subject to available budget, if pricing and service remain acceptable to the City.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Tim Kirby, Director of Finance
Reviewed by: Phan Ngo, Director of Public Safety
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Services Agreement
2. ACMS Rate Quote
3. Draft Amendment to Existing ACMS Contract