REPORT TO COUNCIL
SUBJECT
Title
Award of Contract for Temporary Personnel Placement Services for General Laborers (F18-009)
Report
REPORT IN BRIEF
Approval is requested to award a contract for temporary personnel placement services for general laborers. Staff recommends awarding a contract to HR Management, Inc. of San Jose, in an amount not-to-exceed $200,000. Approval is also requested to authorize the City Manager to increase the not-to-exceed amount and to extend the contract 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, City Council approval is required for contracts exceeding $100,000.
Consistent with the provisions of Chapter 2.08 of the Sunnyvale Municipal Code, temporary personnel placement services are 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”) 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 seasonal work or special projects, filling in for an employee who is on a leave of absence, or staffing a vacancy pending the recruitment and selection process to fill the position on a regular basis. 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 West Valley Staffing Group. These agencies are not able to fulfill the City’s needs for temporary field laborers.
Staff issued RFP18-009 for Temporary Personnel Placement Services for Field Laborers on August 3, 2017. One proposal was received on August 31, 2017 from HR Management, Inc. The proposal was found responsive and was independently reviewed and scored by an evaluation team consisting of three Human Resources staff members. HR Management, Inc. was selected for recommendation based on their ability to provide the necessary staff, customer service and that they have local offices that can support the temporary staffing need.
Consistent with current temporary personnel placement services contracts, an initial two-year term is recommended with three optional one-year renewals, to be awarded at City discretion and as operationally necessary, subject to available budgeted funding.
FISCAL IMPACT
Over the course of previous contract periods, the annual spending level has averaged approximately $200,000. This amount is expected to increase given the current vacancy rate. As these services backfill vacant positions, budgeted funds would be available through vacancy savings to fund temporary staffing services in various operating programs and funds 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 HR Management, Inc. and authorize the City Manager to execute the contract when all necessary conditions have been met; 2) authorize the City Manager to increase the not-to-exceed amount of the initial contract as operationally necessary, subject to available budgeted funding and extend the contract 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: Anthony Giles, Interim Director of Human Resources
Reviewed by: Teri Silva, Interim Assistant City Manager
Approved by: Kent Steffens, Interim City Manager
ATTACHMENTS
1. Draft Temporary Services Agreement