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SR-205-008 F:\PERSON\MISC\COUNCIL\STAFFRPT\TempAgencies2005.doc Council Meeting: February 14, 2006 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Authorize Purchasing Agent to Issue Purchase Orders for Contractual Temporary Staffing Services with Temporary Staffing Agencies INTRODUCTION This report recommends that the City Council authorize the Purchasing Agent to issue purchase orders for contractual temporary staffing services for one-year terms with two one-year renewal options with twelve temporary staffing agencies. The estimated annual expenditure is not expected to exceed $1 million. This estimate is based on past expenditures of $1,187,420 in FY2003-2004 and $1,062,760 in FY2004-2005. BACKGROUND Prior to July, 2005, departments of the City of Santa Monica were able to independently utilize the services of temporary staffing agencies to meet specific workload needs, to fill temporary vacancies resulting from regular employees’ leaves of absence or to fill vacancies until recruitments were completed by the Human Resources Department. This resulted in difficulties in monitoring temporary staffing agency usage across departments. Payments for services were allocated to each user-department. In an effort to centralize and monitor the use of temporary agency staffing services, the City’s Human Resources Department has selected twelve agencies that meet the City’s requirements for service - 1 - levels, insurance, and compliance with the City’s Living Wage Ordinance. The Human Resources Department will oversee utilization of temporary agency services. The centralized approach will enable Human Resources to better monitor City-wide staffing needs and levels as well as the usage of temporary agencies by various departments. DISCUSSION Staff issued a Request for Proposal to 59 temporary staffing agencies in June 2005. Twenty-one proposals were submitted and evaluated. Seven agencies were interviewed and selected to provide temporary clerical/administrative and general (unskilled or semi- skilled) labor positions and five agencies were interviewed and selected to provide temporary employees with specialized risk management, engineering or other technical skills. The twelve agencies are: Act 1 Personnel Services, Apple One Employment Services, First Call Staffing Services, PDQ Careers, Inc., Superior Staffing Services, Inc., Top Tempo/Future Personnel Agency, Inc., and Volt Services Group for clerical/administrative and general (unskilled and semi-skilled) services and Sapphire Technologies for information technology; Insurance Overload Staffing Systems and Claims Staffing Solutions, Inc. for risk management; Civic Solutions, Inc., for planning; and Labor Ready for semi-skilled and skilled trades. BUDGET/FINANCIAL IMPACT Funds for temporary staffing services are available in the specific departmental budgets depending on department needs and vacancies. Total expenditures for temporary staffing services are not expected to exceed $1,000,000 annually. - 2 - RECOMMENDATION It is recommended that the City Council authorize the Purchasing Agent to issue purchase orders for contractual temporary staffing services with twelve temporary staffing agencies for one-year terms with options to extend for two one-year terms. Prepared By: Karen Bancroft, Director of Human Resources - 3 -