REPORT TO COUNCIL
SUBJECT
Title
Award of Two Contracts for Citywide Temporary Personnel Placement Services (F17-094)
Report
REPORT IN BRIEF
Approval is requested to award two (2) two-year contracts for temporary personnel placement services. Staff recommends awarding contracts to West Valley Staffing Group, Inc. of Sunnyvale in an amount not-to-exceed $200,000 and AppleOne Employment Services of Torrance in the amount of $400,000. Approval is also requested to authorize the City Manager to increase the not-to-exceed amounts and to extend the contracts, if operationally necessary, for up to three additional years, with both actions subject to available budgeted funding.
EXISTING POLICY
Consistent with the provisions of Chapter 2.08 of the Sunnyvale Municipal Code, temporary personnel placement work is solicited through a Request for Proposals (RFP) process, unless otherwise exempt from the competitive bidding process. Contracts resulting from RFPs are awarded based on best value to the City, rather than the lowest bid price as in the case of an Invitation for Bids (IFB). RFPs are utilized when the City is seeking a solution and cannot exactly specify what is needed.
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.
BACKGROUND AND DISCUSSION
For many years, the City has contracted with temporary personnel placement agencies to enhance and supplement its regular workforce. Temporary agency employees are generally used for short-term assignments, such as filling in for an employee who is on a leave of absence or while a vacancy exists pending the recruitment and selection process to fill the position on a regular basis, or for seasonal work or special projects of a one-time or limited nature. Employees who work under this type of agreement typically fall into one of the following categories: clerical/administrative; laborers/maintenance; and professionals and para-professionals. Temporary employees are not used on an ongoing basis for work performed by regular city employees.
The City’s current contracts for temporary personnel are with AppleOne Employment Services and COAST Personnel Services. These contracts resulted from an RFP process conducted in 2012 and will expire on June 30, 2017.
In March 2017, an RFP was distributed to ten local firms and posted on the City’s website. Four responsive proposals were received on April 7, 2017 from AppleOne Employment Services, West Valley Staffing Group, Johnson Service Group, Inc. and Macias, Gini, O’Connell (MGO). Proposals were reviewed and ranked by an evaluation team consisting of Human Resources staff. After interviews with the evaluation team, AppleOne Employment Services and West Valley Staffing Group were selected as the highest ranked proposers based on their experience, customer service and local offices that can support the temporary staffing need.
The award of two contracts is recommended in order to provide flexibility in assisting departments with timely and effective temporary employee placements. With two agencies providing temporary staffing, it is anticipated that placements will occur more quickly; and there will be a larger pool of potential candidates available for placement, thereby reducing the time a position is temporarily vacant.
FISCAL IMPACT
Over the course of the previous contract period, the annual spending level has averaged approximately $250,000, but this amount is expected to increase given the current vacancy rate and increases in hourly rates. Budgeted funds are available through vacancy savings in various operating programs throughout the City.
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) Award a two-year contract, in substantially the same format as Attachment 1 to the report in an amount not-to-exceed $200,000 to West Valley Staffing Group; 2) award a two-year contract, in substantially the same format as Attachment 2 to the report in an amount not-to-exceed $400,000 to AppleOne Employment Services; 3) authorize the City Manager to execute the contracts when all necessary conditions have been met; and 4) authorize the City Manager to increase the not-to-exceed amounts of the initial contracts if operationally necessary, subject to available budgeted funding and to extend the contracts up to three additional years, not-to-exceed budgeted amounts, if pricing and services remain acceptable to the City.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Teri Silva, Director of Human Resources
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Draft Temporary Personnel Services Agreement Between the City of Sunnyvale and West Valley Staffing Group
2. Draft Temporary Personnel Services Agreement Between the City of Sunnyvale and AppleOne Employment Services