SR 02-23-2016 3J 10 The additional cost would be roughly $2.6 million . This action would also increase total staff hours by 59.0 full time equivalent positions, or about 3% of the City’s total permanent staff . As -Needed Positions Possible to Convert Hrs. FTE Net Cost 11 4,598 59.0 $2.6 M Applying Criteria to Determine Proper Use of As -Needed Staff . The analysis and criteria below show that a wholesale conversion of as -needed staff to permanent staff, without regard for the operational needs that these positions fulfill, is not a prudent use of taxpayer resources and therefore not a recommended business practice , nor is it the optimum way to pr ovide services based on irregular schedules . Finally, it is not clearly in the best interest of as -needed employees. A critical consideration, and central to the question of employee fairness, is potential job loss. As -needed to permanent positions is n ot a one to one conversion, as several as -needed employees can fill one full time equivalen t position . This means that conversion decreases the total number of employment opportunities . And, the City cannot guarantee currently employed as -needed staff th ese new positions. As described above, local law requires that as -needed staff must compete in a formal hiring process. In the survey, m anagers indicated fluctuating , unknown or inconsistent service need or seasonal work as the most common reason s, or criteria, for using as -needed staff. Managers also mentioned jobs with limited daily hours , filling vacancies , conducting limited or new assignments, or provid ing additional unbudgeted services using savings . The table below shows the frequency of each criterion as a primary reason for using as -needed staff. Reasons for As -Needed Use Fluctuating or Inconsistent Demand 46% Fill vacancy 6% Limited daily hours 3% Seasonal work 37% Short term / Unbudgeted Service 8%
11 The table below describes criteria in more detail and provides examples. These criteria are consistent with best practices and with general guidelines for as -needed work . Criteria for Providing Services with As -Needed Staff Service Criteria Description Example Fluctuating or Inconsistent Demand Service is not required on a consistent basis. May need many staff for a short period of time and none at other times. City TV video editors and producers. Need fluctuates with number of shows. RRR equipment operators. Staff needed to cover daily collection routes for permanent employees on FMLA leave, worker’s compensation, and unscheduled absences. Seasonal Work Limited Daily Hours Service is only needed at a specific time of year . Service is required daily but only for a few hours per day. Lifeguards work ing primarily in the summer months . Library Pages re -shelving materials and maintaining stacks 4 -5 hours pe r day. Fill Vacancies Fill in for a variety of permanent employee leaves until employee ’s return. Any classification. Pilot or Limited Term Program Service level and need is not fully known for a new program or facility. The City does not have any services of this type at this time. Unbudgeted Additional Service Staff is responding to a new, unbudgeted community request for additional service. Homeless initiatives administrative support after grant funding was completed. Staff identified the number of hours represented by employees working an average of 20 hours per week or more; including about 85 individuals. Staff recommends maintaining approximately half of the se hours for as -needed positions, based on the criteria shown i n the table above . Further explanation of these decisions is shown below with examples from the three departments with the greatest use of as -needed hours -Community and Cultural Services , Public Works , and the Library. Fluctuating or Inconsistent Demand / Seasonal Work / Limited Hours Recreational and educational after school programs, and library programs, are seasonal and have fluctuating demand throughout the year, requiring flexible staff that can work short or variable hours. Human Services programs serving school age children are at nine school sites from after school until 6:00pm during the school year , with expanded programming offered during the summe r and school vacations; and at two parks after school, on weekends and during school vaca tions. These require a number of employees, (up to eight as -needed at each site) to coach, monitor activities, and conduct
12 programs , but only for two to three hours a day during the school year. Similarly, Library operations entail morning and evening p rogram and service area staffing across five libraries open more than 230 hours per week, requiring a large array of staff with flexible schedules. As with seasonal activities, those that are based on customer demand also necessitate the use of as -needed staff, as these hours are not consistent throughout the year, or from one year to the next. An example of this is the as -needed staff that assist s with Cemetery work based on need for services and availability of plots. Also, t he majority of Library temp orary staff work schedules are based on youth and adult program needs and patron demand. New / Pilot Programs Departments often use grant funds to pilot a new or enhanced service that is a community priority. For example, the Human Services Division rece ived a number of grants in 2007 that provided funding for the implementation of several key homeless initiatives including Homeless Court. Existing staff was initially used to help administer the grant funded activities, yet over time, the work and expec tations grew and existing staff was no long er able to complete the work given their other responsibilities. As a result, CCS identified budget savings to pay for an as -needed position to assist in program administration. An evaluation of staff needs will be conducted during the upcoming FY 2015 -17 Budget process to ensure that such structural staffing needs are assessed and addressed. Another case in this category is new programs whose service levels are not known upon inception and therefore require a degree of flexibility, provided by as -needed staff, while proper levels of service, and resources to meet these service levels, are confirmed. This was the case with the Laborer Trainees providing custodial services at the newly -constructed Beach restroo ms , and with Beach House staff . Once it is clear what the ongoing services needs are, staff will consider converting the positions to permanent status, as will be shown in the report recommendations. Operations In addition to the hours needed to perform a service, a permanent position’s hours also include paid leave time, which increases the number of required hours by 20 percent. F or those services that must continue despite staff absences, as is the case in custodial and maintenance services, Resource, Recovery and Recycling, Fleet Maintenance, and Big Blue Bus, managers use as -needed positions to fill short term vacancies during paid leave of permanent employees or to fill vacancies while recruitments are being conducted. Using as -needed positions allow s departments to hire up to the number of hours that they require. When a position does not have a consistent work schedule throughout the year, the costs to the City of providing paid leave and health care outweigh the benefits to the employee and are not a prudent use of the City’s limited resources. Without as -needed staff, Departments lose their ability to fill positions on a short term basis, to experiment with new levels of service, or to provide additional short term service using savings. Coun cil and community members have expressed concern about the level of benefits offered with as -needed compared to permanent employment. Permanent employees do receive more benefits than as -needed staff. But, temporary employment has benefits in that it pro vides flexible positions
13 with salaries comparable to other Southern California cities and the private sector; its hiring process is faster and less competitive, and it provides employment opportunities to a segment of job seekers for whom part time and fle xible work fits in with other activities and goals. Employment Opportunities The criteria above also can fill certain employment needs for certain job seekers desiring flexible hours and short or variable term positions. For example, m any as -needed staff members, particularly in the Aquatics unit of the Community Recreation Division, are college students who are only able to work limited hours during the school year, but can fill additional hours during the summer when demand is high. Some seek these jobs with the intent to leave them after a short time due to college pursuits or other commitments. Many as -needed Library employees want flexible hours and are college and graduate students , mothers, retirees, or have second jobs. For those that may seek longer -term employment at the City, t hese positions provide the opportunity to gain work experience and exposure to City employment. Recommendations. In the study, staff identified the as -needed hours representing staff working an a verage of 20 hours per week , including about 85 people filling 59.0 full time equivalent positions, or about 115,000 hours . Based on criteria identified in the study, staff recommends convertin g about half, or roughly 55 ,000 hours , into permanent full and part time positions , representing a 25.65 full time equivalent staff increase, or 1% of the City’s approved permanent full time equivalent positions, at an estimated cost of $1.0 million. These conversions would impact current employme nt for between 40 and 50 current as -needed employees, who would have to compete and might not be successful in the civil service selection process. In general, these conversions represent areas in which increasing and more consistent operational need makes permanent positions a better staffing choice. Recommended Conversions Fund Hr s . F TE Net Cost General Fund 1 5 ,496 7.5 $0.3M Other Funds 39,463 18.2 $0.7 M Total 54 ,959 25.7 $1.0 M The table below s hows these conversions by fund and title .
14 Current Hours Rec. Hours Rec. FTE Net Cost General Fund Community & Cltrl. Svcs. Guest Services Assistant 2,143 2,496 1.2 66,158 Cultural Affairs Coordinator 2 308 1,040 0.5 17,993 Finance Revenue Collections Assistant 5,490 4,680 2.3 101,022 Public Works Custodian I 3,144 1,040 0.5 26,212 Maintenance Worker 4,160 4,160 2.0 90,836 Street Services Worker I 4,264 2,080 1.0 49,765 General Fund Total 19,509 14,456 7.5 $351,986 Other Funds Community & Cltrl. Svcs. Beach House Aquatics Program Coordinator 3 709 1,664 0.8 50,363 Public Works Beach Beach Laborer 26,000 23,447 9.0 198,439 Custodian II 2,080 1.0 83,017 Beach House Custodian I 4,599 5,200 4.0 171,564 Pier Painter 955 2,080 1.0 75,208 RRR RRR Equipment Operator 4 17,458 4,992 2.4 116,957 Other Fund Total 49,721 39,463 18.2 $695,548 Total All Funds 69,230 54,959 25.7 $1,047,534 2 The Current Hours reflect a vacancy in FY 2013 -14. This position is budgeted at 1,040 hours, the recommended conversion. 3 Position was previously budgeted in the Beach House (.4 FTE) and in the General Fund (.4 FTE). Hours remain the same 4 The hours not recommended for conversion will remain as as -needed positions in the RRR fund to provide coverage for permanent position vacancies and leaves.
15 The table below summarizes the remaining hours for as -needed employees working over 20 hours per week by classification and excludes those who work extremely limited hours . Staff used the criteria described above to determine that the tasks completed using these hours are most appropriately completed by as -needed employees. Most fall into at least two c ategories, and those with the largest number of remaining hours fit into at least three. Fund / Title Hours not Rec. Based on Demand Seasonal Work Unbdgtd/ New Svc. Fill Vacancies General Fund Communications Operator 1,433 X Community & Cult Svs Leader 3,851 X X Facilities Attendant 3,811 X X X Library Assistant II 3,741 X X Library Page 6,077 X Library Services Officer 2,194 X Pool Lifeguard 1,083 X X Staff Assistant II 4,002 X X Staff Assistant III 1,050 X X Transp. Management Specialist 2,080 X Video Intern 1,096 X Video Production Coor d. II 1,064 X Assistant Planner 1,973 X Other Funds Event Coordinator (Beach) 3,321 X X Guest Services Assistant (Beach) 1,274 X X Laborer Trainee (Beach) 23,069 X X Maintenance Worker (Beach) 1,421 X X Venue Services Assistant (Beach) 1,464 X X RRR Equipment Operator (RRR) 5,434 X Motor Coach Cleaner (Bus) 2,828 X Grand Total 72,803 1 5 6 4 7
16 Contracted Staffing Scope. For the purposes of this study, the City conducted an internal survey of its contracted services that cost over $100,000 per year. Staff identified a total of 4 3 contracted services, with a total annual contract cost of approximately $2 4 million. The services represented by these contracts fall into three main categories: general services, specialized repair and maintenance, and specialized services , which inclu des services that require special knowledge, certifications, or equipment . TYPE Contracts Annual Amt. (millions) General Services 16 $10.8 Specialized Repair and Maintenance 14 $10.5 Specialized Services 13 $2.6 Grand Total 4 3 $23.9 Considerations . Local government experience indicates that contracting for services is most effective in areas where the private sector has considerable experience and is well established, offering competition, where the work scope and standards of performance are easily defined and monitored, and w here the city has adequate contract monitoring and evaluation in place. The table below summarizes these practices, showing what should be true on the vendor side (private sector), and on the City’s side, to make contracting out effective. The City’s con tractual services agreements include standards of performance that are evaluated and measured based on their scope. Some contracts are monitored daily/weekly and some are monthly/quarterly. Several performance measures considered are: scope and specifica tion compliance, complaints/complaint resolutions, project schedules compliance, m onthly reports and customer feedback. A sample Contractor Performance Form is included as Attachment B . Additionally, all contracts include a 30 day provision to cancel the agreement. Contracting Best Practices Private sector City Experience Strong contract monitoring Participation / competition Staff / timing flexibility Accountability C ontracted staff is protected in a number of ways, ranging from higher compensation to continued employment despite changes in contract firms. To begin with, m ost of the City’s contractual services vendors (and all of the contracts included in this study) are subject to the City’s Living Wage Ordinance (LWO) per Chapter 4.65 of the Santa Monica Municipal Code. The LWO establishes a Minimum Wage of $15.37 per hour (adjusted annually based on the Consumer Price Index) for employees of contractors providing services to the City where services exceed $54,200 or more. As noted e arlier, t his rate is $6.37 above the State’s minimum wage of $9.00. The ordinance also requires contractors to provide the same health care and other benefits to employees’ same sex
17 spouses and domestic partners as are provided to other employees’ spouses . An employee covered by the LWO is any person who does not actually work as a manager, supervisor, or confidential employee, and who is not required to possess an occupational license. Contractors are required to maintain payroll records to prove their compliance. Contractors with unionized and therefore represented employees are exempt from the living wage ordinance requirements. Additionally, a new State Senate bill, SB7, requires that, as of January 1, 2015, any contractor awarded a public works project by any general law or charter c ity in California must comply with prevailing wage provisions if it wishes to receive State funds . Public works is defined as construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds . While a previous California Supreme Court decision had held that a charter city may exempt itself from the state's prevailing wage requirements on locally funded projects, the City had not exempted itsel f from these requirements and had instead adopted a local prevailing wage ordinance for all of its public works projects in 1987. As a result, the City’s compliance with this law will not have a discernible fiscal impact. The City will also ensure that co ntractors comply with paid sick leave requirements of the Healthy Workplaces, Health y Families Act of 2014 beginning on July 1, 2015. To provide a complete analysis, the total contract costs in this study include t he estimated costs associated with this l aw, and potential Affordable Care Act implementation costs that may be passed through to the City in the future ,. The City also complies with the Displaced Janitor Opportunity Act of the California Labor Code Sections 1060 -1065 . T he City requires contractors and subcontractors that are awarded contracts for janitorial or building maintenance services to retain, for a period of 60 days, those employees who were employed at a specific site by the previous contractor or subcontractor. The act requires the successor contractors to offer continued employment to those employees if their performance during the 60 -day period is satisfactory. This has been the case with the City’s custodial contracts , although the City has required contractors to extend the review period from 60 days to 6 months . Many of the City’s currently contracted staff have worked at City locations, transferring from one contractor to another, for many years. Current custodial workers hold 1 year to 18 years of service at City locatio ns. Additionally, t he current custodial contractor offered to provide employee benefits, including seven paid holidays, five jury duty days, one week of vacation after the first year, and health benefits required by the Affordable Care Act. As noted above , contract management is essential to ensure that the work scope is being completed effectively and efficiently. Recently, the City conducted an audit of its tree maintenance contract to ensure compliance with these contract terms. Staff has incorporated industry -standard techniques of contract management, including clear work requirements, assignments and change order authorizations documented and confirmed with the contractor, a clear rate structure, and performance and compliance audits as needed. Cos t of Services if Provided with Permanent Staff. Responding to Council’s direction to study the potential of bringing contracted services in -house, s taff analyzed each contract and considered how to implement each service in -house. The analysis included direct costs (staff salary, paid leave, benefits, and coverage for vacation and sick leave). Also included were the equipment,
18 facility/space, supplie s, and training needed. Finally, indirect costs (overhead, worker’s compensation, human resources, payroll , additional insurance ), and additional resources necessary to house and manage an expanded work force and larger equipment and space inventory were added. To ensure a total cost comparison, staff included a cost to manage the contracts, at up to 25 percent of each contract’s cost. Staff estimates that the 4 3 contracted services, if provided by in -house permanent staff, would cost approximately $98 .8 million , as opposed to the current fully loaded contracted cost of $2 9.4 million, for a net year one cost of $6 9.4 million . The $98.8 million includes $5 9.9 million in ongoing staffing, vehicle and equipment maintenance, rent and overhead costs, and $38.9 million in one -time costs for vehicles and equipment and space tenant improvements. Th e net year -one cost represents 1 2 percent of the City’s overall budget, over 100 percent of the City’s contingency reserves, and more than six City departments’ com bined operating budgets (City Attorney, Council, City Manager, Human Resources, Information Systems, Library, and City Clerk). The ongoing cost represents 7 percent of the City’s overall budget. Cost detail for each contract, broken out by category, is included as Attachment G. Cost: Services through Contract vs. In -House Contract In -House NET COST YEAR 1 NET COST ONGOING Annual Cost Mgt & Health TOTAL Ongoing One -Time TOTAL $23.9M $5.4 M $29.4 M $59.9 M $38.9M 5 $98.8 M $6 9.4 M $30.5M 5 Does not include construction cost of a transfer station, estimated at $10M.
19 The largest portion of this estimated cost is staffing, followed by equipment (includes vehicle purchases), administrative overhead, workers’ compensation, and space , including one -time tenant improvement costs . Included in this cost is t he projected increase in staffing, a total of 3 71 .7 FTE (7 73,136 hours) representing a 1 9 percent increase in the City’s total permanent work force, and a space increase of approximately 90 ,000 square feet to house new staff , vehicles, and equipment. A further analysis of the space requirements is in Attachment C . Breakdown of Costs to Bring Services In -House Staffing 42% Vehicles, Computers, Equipment 32% Space 17% Overhead 8% Training, Uniforms, Supplies 1%
20 Applying Criteria t o Determine Proper Use of Contracted Staff . In the 2007 and 2009 contractual services studies presented to Council, staff listed a number of criteria used by managers to determine whether the City should consider using contracted staff to provide a service. According to the survey conducted for this study , the se criteria are still used by staff and they also reflect local government best practice . RECOMMENDED CRITERIA LIST EXAMPLES Workforce Flexibility Service is seasonal or unpredictable, but requires multiple staff if service is needed. Service continuity relies on large employee pool with numerous and immediately available backup options. Parking facility operations; Landscape Services; Custodial Se rvices ; Roof repair, Carpet and flooring, Supplemental law enforcement Specialized / Technical expertise Service requires technical or special expertise that City staff could not or does not provide, and is outside of core service mission of the departmen t. Roof and carpet repair and replacement, and asbestos removal. All of these require special licenses. Space Requirements The service requires substantial space to house the staff and/or equipment to provide the service, which is not available within C ity facilities or cannot be leased. Solid waste processing and hauling services ; t he City does not h ave a transfer station facility. Transit bus body painting and repair ; t his would require building and upfitting two new bus bays. Capital / Equipment Requirements The service requires significant equipment or other capital investment and maintenance, for which a private contractor could amortize the costs o r maximize use of the equipment. Waste Processing and Handling , Tree trimming , Police V ehicle Upfitting, Transit bus body painting and repair, Household hazardous waste collection, Fiber cable construction Risk Service entails risk that significantly increases the City’s potential liability. Asbestos removal Security services Proprietary Control Service relies on software or equipment subject to proprietary control by manufacturer / vendor / sole source. Parking meter installation and monitoring. Short term / Pilot Service is needed on an interim or emergency basis, or for a pilot period of time. Private sector contractor can better respond to expansions, contractions or special requirements of the service. The City does not have any services under this criterion at this time. In addition to these criteria, and as outlined in the 2007 Council study and in the proposed policy included as Attachment D , staff must also weigh the q uality of the service, employee fairness and protection, and cost effective ness when considering contracting out a service . An overview of the criteria that each of the 43 contracts reviewed in this study meets is included as Attachment E. The City’s eight largest contracts in terms of annual amount make up approximately
21 70% of the total. Staff has prepared a detailed explanati on of the way these criteria are used to evaluate whether contracting is the best way to provide each service using these contracts , shown in Attachment F . The Council might opt to override the criteria -based decision and choose to bring in a currently - contracted service. The following is a summary of the potential challenges that would need to be considered in these decisions. Workforce Flexibility Contractors are able to provide a large number of staff of varying classifications (including supervis ors) at a certain time, and then decrease that staff at other times. Pooling of employees across a number of different clients allows a contractor to provide this flexibility efficiently and with minimal impact to contracted staff. For example, the City’s parking facilities operations contract allows for increased staffing for major events such as GLOW and the Marathon. An additional benefit of pooled staffing is that many employees can be assigned to cover multiple facilities for short periods of time . This is the case with parking facilities staffing and landscape services. The City’s landscape contractor provides trash collection services 27 City parks, and maintenance services at 28 City facilities and 289 public landscape sites , on a tight schedu le. To maintain the schedule with in -house staff, the City would be required to hire an estimated 35 FTE, including new supervisors, to provide the same level of service at multiple locations at a given time. Similarly, the City’s contracted custodial st aff (t he City also employs 59 in -house custodians) is required to service 13 locations at one time during a limited number of hours. Without the benefit of pooling, the City would be required to hire staff at the peak level, increasing service hours by almost 50 percent and staffing costs by 98 percent. While bringing in these services would result in a significant cost, the staffing level that accommodates peak periods would also not be sustainable throughout the year from an operational perspective. Specialized/Technical Expertise The City’s operations rely on a number of systems and processes whose implementation requires a level of expertise that is not part of the City’s core functions. For example, the 60 police vehicles that are replaced each year require upfitting with state of the art equipment that is frequently updated. This equipment must be installed to manufacturer sp ecifications by certified technicians. Thus each employee completing this work is required to undergo specific training on an ongoing basis to complete work accurately. A contractor is able to spread this cost and the amount of time needed to complete th e training among a large number of clients without additional cost as this training is an integral part of the service they provide. Providing the service in house would require building a new and specialized expertise within City staff that is not part o f its core mission, applies only to that specific activity, and thus provides lower return in service provided on investment of financial and other resources . Tree trimming is another area that requires special certifications and experience. Performing t his service correctly protects the community, properties, and the City’s urban forest.
22 Risk Risk is closely related to specialized and technical expertise. Like most business entities, the City manages risk exposure to protect tax payers from financial liability associated with risky work. By engaging outside parties specializing in a service o r activity, the City responsibly transfers or spreads risk to other parties specifically set up to manage that risk. Risk always exists; however, certain activities present specialized and/or extraordinary risks that are more easily mitigated by contract staff than in -house staff. The reasons behind this vary, but asbestos removal services and tree maintenance services provide at least two examples. In the case of asbestos removal, this service is considered a high risk peril – it poses serious health and safety risks and requires highly specialized personnel. At the same time, the City only needs asbestos removal services on an intermittent basis. This combination of conditions (i.e., high risk, low frequency) has the potential to create unsafe working co nditions for in -house employees due to the difficulty of keeping critical technical skills fresh when employed on an intermittent basis. Therefore, from a safety perspective, the City is better served to rely on professionally trained contractors dedicate d to asbestos removal services as opposed to in -house staff. Tree maintenance services represent another area where using contractors can be more advantageous than in -house staff. This too, is considered a high risk area – employee injuries and third -party liability claims are common and have the potential to create extraordinary losses for the City. The City’s workers’ compensation and liability expenses will likely always be higher than its private sector counterparts with sound safety and liability loss records. This is due to a variety of reasons – the most common relating to higher claim filing rates and greater compensation expectations. Transferring tree maintenance services to a private contractor cannot elimina te these risks, but it can help to mitigate the City’s exposure. Space and Capital Requirements Many of the City’s contracted services rely on contractors to purchase and maintain large, expensive equipment, and to house such equipment, as well as staff , off -site. As with pooled staffing, contractors have the ability to spread the cost of equipment and space among a large number of clients. As an example, the City chose to contract out Solid Waste Transfer and Hauling Services due to costly constructio n as well as operations – it would cost approximately $10.0 million for a modification of 8,000 sq. ft. to the existing transfer facility . Maintaining the City’s landscape would require purchasing and maintaining 20 vehicles and 31 types of equipment, at a cost of $1.1 million in the first year and $200,000 on an ongoing basis. The Police Upfitting contract, brought in -house, would require an additional 3,0 00 square feet of additional work space to house staff and equipment, including vehicle maintenance bays. At this time, current facilities meet only 60 percent of staffing and parking space needs at the City’s Corporation Yard. This lack of space has required that in -house public landscape staff use the Colorado Yards site, purchased for park use, for office, storage and parking needs. S taff believes that converting all contracts in -house would require t he acquisition and improvement of new office and storage space. As a result, additional space would take time to amass and would require additional maintenance and management. Quantifying this premium, conversion of all contracts would require 90 ,332
23 square feet of space for staff offices and lockers, equipment storage, and vehicles, including 43,000 square feet for landscape, custodial, and tree trim ming vehicle parking . Staff estimates annual costs of $1.8 million to $5.4 million if the City were to lease space in addition to one -time tenant improvements of $7.1 to $1 1 .8 million 6 . Proprietary Control In the case of the parking meter installation and monitoring contract, the proprietary equipment and software requires that contract staff complete the work. If the City were to bring the service in -house, it would be required to purchase, install and maintain new meters. Attachment G lists and quan tifies the impacts of contracting in services for all 43 contracts. Recommendations. While staff has used these criteria informally when making the service delivery decision to contract out , a s part of the most recent review , staff again evaluated each contract , using the above criteria, to ensure that the current delivery method provides the best and most effective service to the community. From this review, staff recommends bringing in -house two contracts over the $100,000 annual threshold, reviewed in this study, and three additional smaller contracts, at an approximate additional cost one -time to the City of $0.8 million; with an ongoing cost of approximately $0.3 million , of which $0.5 million one -time and $0.1 million ongoing is in the General Fu nd . The following table shows detail for the services recommended to bring in -house. 6 The range is based on a variety of factors that commonly impact lease values. Attachment C provides additional detail.
24 Recommended Contractual Services to be c onverted to In -House Services Type/ Fund / Service Contract Cost 7 In -house Cost 8 Rec. FTE Year 1 Net Cost Ongoing Net Cost CONTRACTS > $100,0000 General Fund HVAC Installations and Repairs 9 199,930 417,530 1.0 217,600 13,050 Big Blue Bus Fund Bus Facilities Repair 172,541 413,276 2.0 240,735 112,735 TOTAL $372,471 $830,806 3.0 $458,335 $125,785 OTHER CONTRACTS General Fund Graffiti Removal 68,250 238,741 1.0 170,491 52,891 Plan Check and Tree Inspection 10 52,500 191,973 1.0 88,909 57,169 subtotal $120,750 $430,714 2.0 $259,400 $110,060 Pier Fund Painting 47,250 124,505 1.0 77,255 69,655 TOTAL $168,000 $555,219 3.0 $336,655 $179,715 Total General Fund $320,680 $848,244 3.0 $477,000 $123,110 Total Other Funds $219,791 $537,781 3.0 $317,990 $182,390 TOTAL ALL CONTRACTS / FUNDS $540,471 $1,386,025 6.0 $794,990 $305,500 Contracts over $100,000 HVAC. This contract, for h eating , ventilation and air conditioning (HVAC) installations and repairs may be provided by in -house staff with minimal changes . The cost to provide this service in -house would be about $0.4 million . Services would be provided by 4.0 FTE HVAC Technicians (three existing and one new). The H VAC contractor services of approxim ately $80 ,000 annually would still be needed to perform large/complex HVAC installation and repairs. Bus Facility Maintenance and Repair . In evaluating this service based on the criteria, it was clear that there are no operational, technical, capital or cost challenges related to completing this service with in -house staff. The conversion includes 2.0 permanent staff, and minor space and equipment needs. The conversion will make the best use of existing in -house staff and resources. Other Contracts In addition to the serv ices over $100,000 that were reviewed a s part of this study , as part of ongoing contract and service review, staff recommends converting t hree additional contracts to in - 7 Includes contract management and estimated health care costs. 8 Includes staff and equipment. Higher one -time costs compared to on going indicate large equipment purchases. 9 Additional HVAC contractor services of $80,000 a year would still be required 10 Net costs include an offset of 1.0 FTE trades intern vacant position deletion.
25 house services . These are areas where staff has identified exist ing in -house capacity, and where criteria identified above do not apply : • Graffiti removal services / power washing services in the amount of $65,000. Services are provided 3 days per week focusing on the Pico Neighborhood. The cost to provide this servic e in -house would be approximately $239,000 comprised of $85,000 for salaries/benefits, $141 ,000 for space/equipment costs (first year) and $6,000 for ongoing equipment/materials costs. Services would be provided by 1.0 FTE Graffiti Removal Technician. Ne t cost would be $17 0 ,491 . • Plan check & tree protection inspection s ervices in the amount of $50,000 annually. Services would be provided by 1.0 FTE Urban Forest Supervisor at a cost of approximately $192,000 comprised of $127,000 for salaries/benefits, $32,800 to configure new office space, and purchase phone and miscellaneous tools (first year) and $9,200 in ongoing costs including tools, phone and vehicle maintenance. Staff plans to offset this cost by deleting a vacant trades intern position at $50,564 , leading to a net cost of $88,909 . • Painting services at the Pier provi ded 35 hours per week at a cost of $45,000. Services would be provided by 1.0 FTE Trades Intern at a cost of $124,505 comprised of $96,000 in salaries/benefits, $7,600 equipment costs (one -time) and $5,100 in ongoing equip ment costs. Net cost would be $7 7,255 . Of the remaining contracts, t he average contract met two of the eight criteria , and many met more than two . The most frequent reasons to contract for these services are capital and space requirements, specialized or technical expertise, and work force flexibility. T able 1 contains a full list of the identified contracts, and ties each to the appropriate criteria. Recommendations and Next Steps Staff recommends the following service delivery changes based on study results: As -needed. Staff recommends converting as -needed hours to permanent positions in maintenance, custodial, resource recovery, customer service and administrative areas ; a total new 25.7 full time equivalent positions. This change would result in 30 new full time (14) and part time (1 6 ) positions , for a net ongoing cost of $1.0 million. The recommended change would also impact the approximately 40 -50 current as -needed employees currently filling these roles , who would not be guaranteed positions . Contracts. Staff recommends converting five maintenance and repair contracts to in -house services. This change would create 6.0 new full time equivalent positions, for a one -time $0.8 million and ongoing $0.3 million additional cost citywide. The recommended change wo uld also impact the contracted workers associated with the City’s current vendors for these services.
26 RECOMMENDED CONVERSIONS Fund FTE Changes Net Cost Year 1 Net Cost Ongoing AS -NEEDED POSITIONS General Fund 7.5 351,986 351,986 Other Funds 18.2 695,548 695,548 Total 25.7 $1,047,534 $1,047,534 CONTRACTS General Fund 3.0 477,000 123,110 Other Funds 3.0 317,990 182,390 Total 6.0 $794,990 $305,500 ALL CONVERSIONS General Fund 10.5 828,986 475,096 Other Funds 21.2 1,013,538 877,938 Total 31.7 $1,842,524 $1,353,034 I f implemented at one time , these changes wou l d increase the City’s overall budget by $1.8 million in year one : $0.8 million in the General Fund and $1.0 million in all other funds. The changes would also increase permanent staff by 31.7 FTE; 10 .5 FTE posi tions in the General Fund and 21 .2 FTE positions in all other funds. Ongoing changes total $1.4 million, with $0.5 million in the General Fund and $0.9 million in all other funds. Staff believes that these changes , along with the adoption of a policy guiding the use of contracted and as -needed staff , can be incorporated in the City’s budget over time with no adverse impact on services. However, it is important that the changes occur incrementally. The phased implementation would begin with the January 13, 2015 Council Meeti ng, continuing to the Jan uary 27 , 2015 Midyear Budget Council Meeting, and then throughout the FY 2015 -17 Biennial Budget period. We have outlined our recommended next steps based on this timeline: Phase I: January 13, 2015: Recommendation for Council to review and adopt Poli cy for Hir ing Contracted or As -Needed Staff for Non -Professional Services (Attachment D ). This policy outlines the criteria to be used when considering the method of providing services for a particular program or project. Over the long term, staff would include within their staff reports requesting authorization for contracted services a discussion of the criteria that they used to justify the contracted service. Phase II: January 27 , 2015: Five Year Forecast and Midyear Budget Council Meeting . Council would consider the first part of a phased implementation of conversions. Council w ould at this time be able to review the recommended changes along with other needs and requests, and
27 with the City’s updated financial pictur e. Implementing these changes w ould require prioritizing among community concerns and considering tradeoffs. As noted in the report, the Civil Service recruitment process will take an average of 12 weeks, with an additional 4 to 8 weeks for candidates to pass a background check. In addition, if necessary, staff will require time to acquire space, complete tenant improvements, and purchase equipment as necessary. Once staff has been hired, there will be a need for training and completion of certificati on requirements by the employee. For this reason, s taff recommends that the conversions occur gradually over two and a half years., beginning with the Midyear Budget. Staff will include recommended early conversions as part of the Midyear Budget staff rep ort. Phase III: June 2015 -June 2017: Biennial Budget. Staff recommends a two -year implementation schedule for the r emaining as -needed conversions and all recommended c ontract conversions . Contract conversions will require additional time due to space and equipment needs, additional training and certifications that might be required, and ensuring a smooth transition from the contract service to the in -house service. Attachments Attachment A: Comparison Cities Survey Attachment B: Cont ractor Performance Form Attachment C : Space Needs Attachment D: Policy for Hiring Contracted or As -Needed Staff for Non -Professional Services Attachment E: Contracted Services Criteria Met Attachment F : Analysis of 8 Largest Contracts Attachment G: C ontractual Services Summary and Conversion Factors
ATTACHMENT A COMPARISON OF BENCHMARK CITIES CITY CITY SIZE CITY BUDGET WRITTEN OUTSOURCING POLICY INFORMAL OUTSOURCING POLICY MAJOR SERVICES OUTSOURCED CONTRACT PERFORMANCE MEASUREMENT Santa Monica 8.3 Square Miles Population: 89,736 City Budget: $575,637,583 General Fund Budget: $329,259,247 General Fund Personnel 1,454.5 FTEs No Yes. Staff follows criteria presented to Council in January 2007 and January 2009 study sessions.Parking Services, Solid Waste Transfer and Hauling, Tree Trimming,some Landscape, Parking Citation and Permits Processing, Parking Meter Installation and Monitoring, some Custodial, Police Vehicle Upfitting.Each department is responsible for reviewing and ensuring that their contracts meet all measurements outlined in the agreement-performance specifications.Beverly Hills 5.7 Square Miles Population: 34,290 City Budget:$174,199,931 General Fund Budget:$89,800,000 General Fund Personnel 770 FTEs No City staff meet and confer that services that are being contracted out do not conflict with bargaining units (MOUs).No City staff meet and confer that services that are being contracted out do not conflict with bargaining units (MOUs).Commercial Sold Waste, Custodial, Facility Maintenance, Parks Maintenance (Tree Trimming, etc.), Construction (Street Paving, etc.), Parking Lot Operations Each department is responsible for reviewing and ensuring that their contracts meet all measurements outlined in the agreement-performance specifications.Burbank 17.16 Square Miles Population: 105,543 City Budget:$153,297,900 General Fund Budget:$119,490,634 General Fund Personnel 941.96 FTEs No No Landscaping, Janitorial, Tree Trimming, Maintenance, Some Solid Waste Drivers Each department is responsible for reviewing and ensuring that their contracts meet all measurements outlined in the agreement-performance specifications.Culver City 5.1 Square Miles Population: 40,000 City Budget: $94,484,903 General Fund Budget:$73,093,510 General Fund Personnel 414.57 FTEs No Although outsourcing is not explicitly referenced, the City’s Charter (CCMC § 3.07.075 through 3.07.090) is the bidding procedure that must be followed when hiring someone outside the City.No Although outsourcing is not explicitly referenced, the City’s Charter (CCMC § 3.07.075 through 3.07.090) is the bidding procedure that must be followed when hiring someone outside the City.Janitorial, Street Sweeping, Tree Trimming, Landscape & Gardening, Recycling Services, Water Billing No Glendale 30.6 Square Miles Population: 196,021 City Budget: $181,501,527 General Fund Budget: $136,930,957 General Fund Personnel 890.29 FTEs No No Mechanical Maintenance, Janitorial, Construction, Painting, Locksmith Services, Heating, Ventilation and Air Conditioning No Long Beach 52 Square Miles Population: 465,000 City Budget: $391,000,000 General Fund Budget (Structural)$324,000,000 General Fund Personnel:2,487 FTEs No The City of Long Beach does not have a formal policy on outsourcing; however, language regarding outsourcing is included in the City's charter-Proposition L.No The City of Long Beach does not have a formal policy on outsourcing; however, language regarding outsourcing is included in the City's charter-Proposition L.Landscaping, Tree Trimming, Janitorial, Security Guard, Recyclables Collection The City is planning on developing a performance measurement for contractual services in the future.
ATTACHMENT A COMPARISON OF BENCHMARK CITIES CITY CITY SIZE CITY BUDGET WRITTEN OUTSOURCING POLICY INFORMAL OUTSOURCING POLICY MAJOR SERVICES OUTSOURCED CONTRACT PERFORMANCE MEASUREMENT Pasadena 23 Square Miles Population: 140,020 City Budget: $205,622,000 General Fund Budget:$127,368,000 General Fund Personnel 937 FTEs No No Janitorial, Landscaping, Meter Collection, Tree Trimming, Landscaping, Parking Enforcement, Parking Garage Management, Construction Departments are responsible for managing their contracts.Simi Valley 42.4 Square Miles Population: 126,305 City Budget: $65,747,300 General Fund Budget:$56,411,200 General Fund Budget Personnel:548.19 FTEs General Fund No No Tree Trimming, Painting, Landscape Maintenance, etc.The City is planning on developing a performance measurement for contractual services in the future.Thousand Oaks 56 Square Miles Population: 128,143 City Budget: $70,000,000 General Fund Budget:$28,000,000 General Fund Personnel:217 FTEs No Departments consider the level of staffing needed to provide a service.No Departments consider the level of staffing needed to provide a service.Landscape, Janitorial Each department is responsible for reviewing and ensuring that their contracts meet all measurements outlined in the agreement-performance specifications.Torrance 21 Square Miles Population: 147,706 City Budget: $176,398,000 General Fund Budget:$133,599,792 General Fund Personnel 920.1 FTEs and 59.5 Recurrent Positions No No Records Storage, Mail Presort,Landscaping, Custodial, Water Billing Departments evaluate contractor's on an annual basis.Ventura 21.7 Square Miles Population: 108,903 City Budget: $91,730,927 General Fund Budget: $60,200,000 General Fund Personnel:431 FTEs No No Custodial, Landscaping, Tree Trimming, Temporary Employment, Cold Planning, Trackless Tack Coating, Concrete Sidewalk Grinding, Sidewalk and Driveway Construction, Pier Maintenance and Repair, Downtown Cleaning Operations, Carpet Repair/Removal, HVAC Preventative Maintenance, Elevator Repair/Maintenance, Street Sweeping, Security Guard, Records Storage, Retention and Destruction, Sewer, Storm, Drain, Water Line, Equip. Maintenance, Wastewater, Hazardous Waste Recycling, Uniform Laundering The City currently does not have a performance measurement. Project Managers are responsible for monitoring their contracts.
Correspondence to Vendor/Firm Please attach all copy of all correspondence made to the vendor/firm regarding performance issues. Indicate below the date and topic of each correspondence. Attachment # Topic Date 1 2 3 Term of Contract/PO Renewal Options? to No Yes Additional years: Additional Comments: Department Department Contact Name Department Contact Phone Description of Products or Services Vendor/Firm Name Contract/PO Annual Amount $ Departments must monitor the vendor’s performance throughout the term of the contract. Every effort is to be made to make sure that problems are identified, documented, addressed and corrected as they arise. At the completion of each 3 month period (quarter) of the Contract Purchase Order term the department must review the vendors performance as it relates to the tasks (deliverables) identified in the original RFP or BID. The City Project Manager must fill out this Performance Review Form. The completed form is to be kept by Project Manager and filed with vendor’s Contract or Purchase Order. City of Santa Monica Contract or Purchase Order Performance Review Quarter #1 Dates Covered in the Quarter Have there been any complaints during the quarter? Explain below. to No Yes Describe below a summary of the performance issues and any corrective action that was requested of the vendor/firm. Quarter #2 Dates Covered in the Quarter Have there been any complaints during the quarter? Explain below. to No Yes Describe below a summary of the performance issues and any corrective action that was requested of the vendor/firm. Quarter #3 Dates Covered in the Quarter Have there been any complaints during the quarter? Explain below. to No Yes Describe below a summary of the performance issues and any corrective action that was requested of the vendor/firm. Quarter #4 Dates Covered in the Quarter Have there been any complaints during the quarter? Explain below. to No Yes Describe below a summary of the performance issues and any corrective action that was requested of the vendor/firm. ATTACHMENT B
Attachment C Contractual Services Study Space Needs and Cost Considerations Based on the space requirements identified by the various City depart ments with contractual services , the City would need approximately 90 ,332 square feet of additional sp ace to accommodate personnel , equipment, storage and vehicles in the event existing contractual services were brought in -house . At this time, the City is already experiencing a shortage of space. C urrent facilities meet only 60 percent of staffing and parking space needs a t the City’s Corporation Yard. This lack of space has required that in -house public landscape staff use the Colorado Yards site, purchased for park use, for office, storage and parking needs. As a result, the conversion of contracted services to in -house services would require t he acquisition and improvement of additional office and storage space. The costs to lease suitably zoned and sized buildings within Santa Monica to meet the City’s additional space needs can range from $1.65 to $5.00 per square foot per month based on a search of available properties found on November 4, 2014 using the CoStar real estate database . The costs vary due to differences in location, quality of build ing and amenities which are factor ed in to the asking price per square f eet. Additional considerations include inv ent ory of comparable properties, number of parking spaces onsite , supply of available leasable s quare footage and load factor which is the multiplier to a tenant’s useable space that accounts for the tenant’s proportionate share of the common area (restrooms, mechanical rooms, etc.). In addition, rents typically escalate annually, based either on changes to the CPI or negotiations between landlord and tenant. Due to limited inventory , it is probable that the City would have to enter into several leases at various locations to meet the City’s overall space needs. T he City’s space costs, consequently, would be contingent on which buildings are ultimately leased and a t what cost per square feet, per month. Given these variables, conservatively, using the cost ranges currently found on CoStar , the space rental costs could range from $149,048 to $451,660 per month or $1,788,574 to $5,419,920 annually, excluding costs including but not limited to utilities, insurance and maintenance . Moreover, tenant improve ment costs for the identified square feet could range from $150 to $250 per square foot , resulting in an upfront expense of $7.1 million to $11 .8 million to build out or configure the spaces for the vario us needs of the user groups. In summary, t o lease approximately 90,332 sq. ft. of appropriately zoned properties in the M1 or light industrial sections of the City is anticipated to cost : Low High Estimated Monthly Costs Annual Costs One Time Costs Rent/SF/Mo: $1.65 $5.00 $149,048 -$451,660 $1,788,574 - $5,419,920 Utilities: Insurance: Maintenance: Tenant Improvements: $150 $250 $7.1 million - $11 .8 million
Attachment C Sources : CoStar Real Estate Database (for available leasable properties) City’s Architecture Services Division (for the range of tenant improvement costs per sq. ft.) Notes : The maximum tenant improvement amount is based on the total square footage identified excepting large parking areas f or landscape, custodial services, and tree trimming vehicles (4 7,332 square feet). Staff anticipates the remaining space (43,000) requiring little to no improvements .
ATTACHMENT D 1 POLICY FOR HIR ING CONTRACTED OR AS -NEEDED STAFF FOR NON -PROFESSIONAL SERVICES When considering the provision of routine, manual or physical services that require staff to work less than full -time or irregular schedules throughout the year, or where the service is subject to higher costs, risk, or training needs, the City may compare the benefits and cost s of contracting out the service or hiring as -needed staff as opposed to using permanent civil service staff to complete the service . The use of con tract ed or as -needed staffing will be restricted to those services that meet the criteria below. If, over time, staff identifies new criteria, those will be noted and added to this policy, pending Council approval. When comparing the cost of providing the service by a private sector contract or to in -house performance of the service, staff will includ e indirect, direct and contract administration costs. If the criteria and findings of the review suggest that the public would benefi t from the service being contracted out due to cost, risk or expertise, staff will provide this recommendation to Council, along with the findings. For programs and activities currently provided by City employees, conversions to contract services will gene rally be made through attrition, reassignment or absorption by the contractor. For services that are contracted out, the City will provide adequate staff to monitor and enforce the work, to ensure that contractors are following laws related to wages, healthcare benefits, and paid sick leave, and to check performance based on agreed upon standards. Decisions related to contracting out services will be based on the following objectives: • Assurance of responsive and high quality service to the community, • Fairness and protections for existing employees and contracted workers, and • Assurance of financially feasible options, in the short and longer term. Evaluation Criteria for Contracted Services Within the general policy guidelines stated above, the effectiveness of contract services in meeting established service levels will be determined on a case -by -case basis using the following criteria: 1. Specialized/Technical expertise: Service requires technical or special expertise that City staff could not or does not provide, and is outside of core service mission of the department. 2. Short term / Pilot : Service is needed on an interim or emergency basis, or for a pilot period of time. Private sector contractor can better respond to expansions, contractions or special requirements of the service. These efficiencies reduce the cost of providing services from labor cost increases. 3. Space Requirements: The service requires substantial space to house the staff and/or equipment to provide the service, which is not available within City facilities or cannot be leased. Private vendors can bear the cost on behalf of the City. 4. Capital / Equipment Requirements : The service requires significant equ ipment or other capital investment and maintenance, for which a private contractor could better amortize
ATTACHMENT D 2 the costs or maximize use of the equipment compared to the City. Economies of scale shield the city from equipment cost increases over the length of t he contract. 5. Risk: Service entails risk that significantly increases the City’s potential liability. 6. Proprietary Control: Service relies on software or equipment subject to proprietary control by manufacturer / vendor / sole source. 7. Workforce Flexibility : Service is seasonal or unpredictable, but requires multiple staff if service is needed. Service continuity relies on large employee pool with numerous and immediately available backup options. The use of contract services provides the City with an oppor tunity to redefine or adjust service levels. 8. Ability to quantify and adequately assess contract services provided. Evaluation Criteria for Use of As -Needed Staffing The use of as -needed staffing will be considered on a case -by -case basis to assist staff with program implementation using the following criteria: 1. Fluctuating or Inconsistent Demand: Service is not required on a consistent basis. May need many people for a short period of time and non at other times. 2. Seasonal Work: Service is only needed at specific times of the year. 3. Limited Daily Hours: Service is required daily but only for a few hours per day. 4. Filling Vacancies: To fill in for a variety of permanent employee leaves. 5. Pilot or Limited Term Program: Service level and need is not clear for a new program or facility. 6. Unbudget e d Additional Service: Staff is responding to a new, unbudgeted community request for additional service.
ATTACHMENT E CONTRACTUAL SERVICES: CRITERIA MET Service Annual Amount Specialized / Tech Expertise Short term / Pilot Space Req. Capital / Equipment Req. Risk Proprietary Control Workforce Flexibility Parking Services 5,090,000 X X Solid Waste Transfer and Hauling 2,500,000 X X Tree Trimming 1,813,273 X X X Landscape 1,731,113 X X X Parking Citation and Permits Processing 1,535,000 X X X X Parking Meter Installation and Monitoring 1,293,800 X X X Custodial 1,343,47 6 X X X Police Vehicle Up -fitting 792,000 X X X Transit Bus and Body Painting and Repair 614,250 X X X X Pier Marketing and Management 494,257 X Security Guards 450,000 X X Fuel Systems Maintenance and Repair 400,000 X X X General Contractor 350,000 X Bus Engine Maintenance and Repair LNG/CNG 344,000 X X X X Roof Repair 325,000 X X X Carpet and Flooring 300,000 X X Charnock Wel lfield Operations and Mgmt. 278,024 X X Supplemental Law Enforcement 260,000 X X Water Pumps Maintenance and Repair 259,600 X X X Fueling Facility Maintenance and Repair 250,000 X X X Wastewater Pumps Maintenance and Repair 250,000 X X X Carousel Operations and Maintenance 248,322 X X Bus Engine Maintenance and Repair (LNG) 208,360 X X X Household Hazardous Waste Collection 200,000 X X X Parking Revenue Equipment 190,000 X Bus HVAC Maintenance and Repair 175,000 X Heating, Ventilation, and HVAC 174,999 X Painting 174,999 X X X Plumbing 174,999 X X X Beach House Uniformed Unarmed Security 158,400 X Bus Stop Cleaning and Maintenance 150,000 X X Bus Facilities Maintena n ce 150,000
ATTACHMENT E CONTRACTUAL SERVICES: CRITERIA MET Service Annual Amount 1 Specialized / Tech Expertise Short term / Pilot Space Req . Capital / Equipment Req . Risk Proprietary Control Workforce Flexibility Fiber Cable Construction 130,213 X X Bulky Items Collection 127,800 X Transmission Repair 125,000 X X Bus Transmission Repair 125,000 X X Electronic Equipment Repair 114,750 X X Bus Detailing and Cleaning 110,000 X X Door Repair 100,000 X X X Asbestos Removal 100,000 X X X Hazardous Waste Disposal and Management 100,000 X X X Prisoner Transportation 99,183 X Network Operations 72,500 X TOTAL $23,883,319 25 - 14 23 19 3 14 1 Includes cost of contract, without contract management costs or future healthcare costs.
Attachment F 1 Analysis of 8 Largest Contracts This section contains detail for the City’s largest dollar value contracts, and explains staff’s analysis and decision making process for contracting these services, with reference to specific criteria . Parking Services Central Parking Services manages the C ity’s 42 parking facilities . The contractor hires and schedules personnel, provides and launders employee uniforms, manages administrative operations, maintains parking equipment cleans and stripes parking lots and structures, collects revenue and provides security. The contractor also hires employees on an as -needed basis and pulls existing employees from other areas around Southern California as necessary to manage workload needs . Central Parkin g staff is unionized. Contract In -House New FTE Hours 183,444 hrs . 205,920 hrs . 99.0 FTE COSTS ($ in millions) Contract In -House Net Contract & Contract Management 6.8 In -house staff 11.1 Equipment & Training 0.4 Additional Payroll/HR Staff Cost 0.1 Overhead 1.6 Total Year 1 $6.8 M $13.2 M $6.4 M Total Ongoing $6.8 M $13.0 M $6.2 M Parking services primarily meet the following criteria for contracting out the service: Workforce Flexibility • The contractor manages large fluctuations in staffing demand. Parking staffing needs shift significantly with seasons, which makes hiring and managing with only permanent staff challenging. Major events like GLOW and the LA Marathon require two to three times the number of parking staff for one or two days only during the year. • Daily needs require staffing at 15 to 20 different parking lots and structures, requiring a large nu mber of staff at once working much less than full time hours. • The large work force requires supervision of different types and at different levels, which would mean the City would need to hire a significant number of new supervisors. • To provide the same level of service performed by the contractor, the City would need to hire 99 FTE permanent staff , almost 5% of the City’s current permanent workforce, requiring additional human resources and payroll staffing . This level of staffing wou ld provide the mini mum coverage but would result in excess staff hours for permanent staff to achieve the 20 hour a week minimum. Staffing would have to increase to 130 FTE during the summer months; this short term increase cannot be accommodated using permanent staff. As a result, t he City would not be able to sufficiently staff large events without using contracted services; these would require contracted staff for each instance, at approximately $2 5 ,000 annually.
Attachment F 2 Specialized/technical expertise • The parking staff is required to know basic elevator resets in the event the elevator s get stuck. Staff also needs to know low level equipment repair and ma intenance and traffic direction .
Attachment F 3 Solid Waste Transfer and Hauling Services In 2 008 , the City contracted with a private company to provide transfer and hauling services of the City’s mixed waste, green waste, food waste, construction and demolition debris, street sweeping and other materials to approved disposal facilities because the Ci ty facility had reached its capacity . The existing facility didn’t meet regulatory requirements associated with a facility transferring solid waste. Contract In -House New FTE Hours n/a 1 20,800 hrs. 10.0 FTE Space 8,000 ft 2 COSTS ($ in millions) Contract In -House Net Contract & Contract Management 2.8 In -house staff 0.9 Equipment & Training (year 1) 3.1 Space Costs 1.4 Overhead 0.4 Total Year 1 $2.8 M $5.8 M $3.0 M Ongoing $2.8 M $3.1 M $0.3 M These services primarily meet the following criteria for contracting out: Space Requirements • Staff evaluated the construction of a new facility but the project was cancelled due to costly construction estimate of approximately $10.0 million for a modification of 8,000 sq. ft. to the existing transfer facility. Instead, Council directed staff to develop a new materials processing plan in conjunction with a private company adjacent to the City Yards . Capital/Equipment Requirements • In addition to space, bringing this service in -house would require purchasing over $3.0 million in vehicles and equipment, including five semi -trucks, which require significant space to house and are costly to maintain. Not included in this estimate are ongoing facilities maintenance and utilities costs . While the ongoing cost of this service, if brought in -house, seems to be very close to the contracted service, the key challenge in bringing this service in -house is that it requires a transfer station facility with the capacity to process the City’s estimated annual hauling of 85,800 tons of material. As noted above, the construction of a transfer station facility that meets regulatory requirements would cost approximately $10.0 million. Since the City is not prepared to spend funds on a pay -as -you -go basis to build a facility , staff anticipates using debt financing to cover the cost, with a n ongoing approximately $1.2 million annual debt service charge over 15 years. 1 This contract is based on tons processed versus hours, so a comparison is not applicable. Staff estimates requiring 10.0 FTE to perform the services currently covered under the contract.
Attachment F 4 Tre e Care and Maintenance The service contract is for the maintenance of the City’s more than 33,000 public trees. Services include tree pruning for tree health, traffic clearance and pedestrian safety , and community aesthetics , tree removal and replacement for trees that pose a risk to public safety, and management of the electronic tree inventory. Tree trimming is important for community safety, and for the health and safety of the City’s urban forest. Tree trimming was previously provided with in -house s taff. However, this service was gradually transitioned to a contract through attrition. The City still retains 2.0 FTE tree trimming staff in -house to carry out issues of immediate need and concern such as sight distance, small tree pruning, and resident requests and inquiries. Contract In -House New FTE Hours 42,848 hrs. 49,920 hrs. 24.0 FTE Space 16,300 ft 2 COSTS ($ in millions) Contract In -House Net Contract & Contract Management 2.4 In -house staff 2.5 Equipment & Training (year 1) 3.5 Space Costs 1.0 Overhead 1.7 Total Year 1 $2.4 M $8.7 M $6.3 M Ongoing $2.4 M $5.9 M $3.5 M Tree care services primarily meet the following criteria for contracting out the service: Capital/Equipment Requirements • Tree care requires specific and costly vehicles and equipment , including 22 heavy trucks /equipment , and specific machinery, with an estimated total cost of $3.5 million for vehicle purchase, depreciation and ongoing maintenance. Ongoing costs are over $80 0,000 per year. Specialized / Technical Expertise • Tree trimmers and senior tree trimmers require arborist certifications; other senior tree trimmers and urban forest supervisor require supervision and safety training. Risk • Failure to provide proper training increases risk of employee injury and the City’s liability from falling branches or trees. The City’s workers’ compensation and liability expenses will likely always be higher than its private sector counterparts with sound safety and liability lo ss records. This is due to a variety of reasons – the most common relating to higher claim filing rates and greater compensation expectations. Maintaining tree maintenance services with a private contractor cannot eliminate these risks, but it can help t o mitigate the City’s exposure.
Attachment F 5 Space Requirements • An additional 24.0 FTE would be required to provide tree care and maintenance. Office space of 200 sq. ft. would be required to accommodate an administrative analyst and a supervisor at an estimated $12,000 annually . Additional break room/locker space would not be necessary as there is existing space to accommodate field staff . Additional parking space of 16,100 square feet for 22 City vehicles and 24 personal vehicles would cost approximately $1.0 million per year ongoing. This is a need that cannot be accommodated at the Colorado Yards or the Corporation Yard. It should also be noted that Colorado Yards, currently used for exiting in -house landscape and tree care staff and equipment, was purchase d for park use and is therefore not being utilized as planned. If staff overlooked the capital , technical expertise , and risk challenges to bringing the service in -house, other costs are also significant. Staff estimates requiring 24.0 FTE to maintain the City’s trees, and provide proper oversight for this process, at an estimated total cost o f $2.5 million. With all costs acc ounted for, staff estimates the net first year net cost at $6.3 million in year one, and $3.5 million ongoing .
Attachment F 6 Landscape Services The City’s contracted landscape maintenance services cover emptying trash cans at 27 City parks and basic/routine maintenance at 5 City parks, 28 City facilities, and 289 public landscape sites (e.g. parkways, medians, curb extensions, etc.). B asic /routine services provided by the contractor include turf mowing, edging, line trimming, hardscape grooming, planter beds , sand raking, and minor irrigation work. The City currently pays $1.7 million annually for this service, which includes about 62,000 hours of staff work per year. The City has contracted out landscape services for more than 20 years. However, the City retains 44.0 FTE in -house staff to provide landscape maintenance services at 24 City parks including amenity repairs to benches, playground e quipment, fencing, tables, drinking fountains, sports fields, bleachers as well as repairs to irrigation main lines , laterals, valves , and clocks. Services are coordinated with park staff to cause minimal disruption to park program s and the public . Contract In -House New FTE Hours 61,984 hrs. 72,800 hrs. 35 FTE Space 18,200 ft 2 COSTS ($ in millions) Contract In -House Net Contract & Contract Management 2.3 In -house staff 3.1 Equipment & Training (year 1) 1.1 Space Costs 1.1 Overhead 0.7 Total Year 1 $2.3 M $6.0 M $3.7 M Ongoing $2.3 M $5.2 M $2.9 M Landscape services primarily meet the following criteria for contracting out: Capital/Equipment Requirements • Providing all landscape maintenance services in -house woul d require purchasing and maintaining 20 vehicles and 31 specific equipment types . The f irst year cost to purchase and begin maintenance on the equipment is $1.1 million, with ongoing costs of $245,000 annually. Space Requirements • Additional parking space of 18,200 square feet for 20 City vehicles and 35 personal vehicles would cost approxim ately $1.1 million per year. Workforce Flexibility • To provide this work in -house, t he C ity would need to hire an estimated 35.0 FTE, including new supervisor s , to comply with the City’s maintenance schedule at 350 locations. • Contract s taff provides trash collection at multiple sites seven days per week. While capital requirements are the largest operational hindrance to bringing services in -house, staffing and other costs are also significant . The staffing increase includes an additional 35.0 FTE to provide necessary service coverage and additional supervision, at a cost of $3.1 million , and along
Attachment F 7 with this i ndirect costs for administrative overhead associated with new staffing. The cost to bring the contract in is a net $3.7 million one -time and $2 .9 million ongoing cost .
Attachment F 8 Parking Citations and Residential Parking Permits Processing The City has employed contractors for parki ng citation services since 2003, and added permit processing in 2010. Services include payment processing, scheduling of hearings, customer service, collection of delinquent accounts, and other related services. Prompt citation processing and handling leads to revenue for the city, and to short response times for conteste d tickets; and permit processing leads to community members having faster access to necessary permits. Contract In -House New FTE Hours 24,960 hrs. 31,200 hrs. 15.0 FTE Space 2,500 ft 2 COSTS ($ in millions) Contract & Contract Management 2.0 In -house staff 1.6 Equipment & Training (year 1) 0.9 Space Costs 0.8 Overhead 0.2 Total Year 1 $2.0 M $3.5 M $1.5 M Ongoing $2.0 M $2.1 M $0.1M These services primarily meet the following criteria for contracting out: Proprietary Control • The contractor has proprietary software and equipment with which it is able to quickly and efficiently create, monitor, and maintain accurate records for approximately 700,000 citations per year. The process is highly automated, making it faster and less pro ne to error. Specialized/Technical Expertise • Unlike other areas of enforcement, fines and the administration of parking citations is regulated by the State, which creates consistencies across jurisdictions, creating opportunities for Cities to share resources. In fact, the current contract is struct ured as a partnership between Santa Monica, Beverly Hills, and West Hollywood. By contracting with an Application Service Provider that specializes in this area and who also provides customer service, the City benefits from economies of scale from the hig hly specialized experiences the provider brings. Technical issues can be resolved more quickly, referrals to the Franchise Tax Board and DMV for intercepts on citations not paid can be processed more efficiently, customers have more payment option locatio ns and can pay parking tickets from multiple jurisdictions in one location, and best practices can be shared more effectively. Additionally, shared customer service infrastructure, which includes call center technology, knowledge management software, and staffing of customer service centers, allows for higher levels of customer service. Capital/Equipment Requirements • Staff estimates that a new software and related equipment would cost approximately $700,000 with additional ongoing maintenan ce expenses of approximately $50,000 .
Attachment F 9 Space Requirements • An additional 1 5 FTE would be required to process citations and permits. Staff does not have existing office space for these employees, so estimates requiring an additional 2,500 square feet for staff offices and break rooms, with an additional one -time cost for space tenant improvements.
Attachment F 10 Parking M eter I nstallation and M onit oring On October 25, 2011, Council awarded a contract to IPS Group to deliver and install 5,816 parking meters throughout the city. These meters accept credit cards, and include ground sensors to provide real -time parking data. The contractor installed a ll meters in 2012, with an expected seven to ten year life span. The current contract is a sole source agreement based on the technology included in the meters, and provides software maintenance, software -related repairs on meter, and installation of new meters. City staff maintains the meters. This s ervice primarily meets the following criteria for contracting out: Proprietary Control • The contractor operating the City’s meters owns and maintains the software running these meters, and was the only provider able to deliver the City’s request for a single -space product. • The City owns its existing operating meters, which should continue to function for the next five to seven years. Labor associated with this contract is minimal, and is limited to meter installation if needed. Meters are maintained and emptied of cash by in -house staff. Specialized/T echnical expertise • Contractor staff has specific knowledge of the parking meter technology and associated software maintenance. The City would not b e able to fully bring this service in house, since part of the contract is related to mai ntaining proprietary software. If the City were to bring the service in -house when new meters become necessary, staff estimates requiring an initial $5.4 million in vestment for meter and software purchase and installation, and an additional $0.7 million ongoing for meter and software depreciation and maintenance costs. This does not include the cost of developing and maintaining expertise in this software, which is not a core service of the City. Due to the proprietary nature of this contract, a comparison of costs is not relevant.
Attachment F 11 Custodial Services The City has historically provided custodial services for City -owned and City -leased locations with a combination of contracted and in -house employees. This combination maximizes City resources dedicated to custodial work, maintains City properties at a h igh level, and ensures uninterrupted service at all hours . The City currently contracts with six vendors to provide custodial services at the Santa Monica Pier, the Public Safety Facility, and City offices at various locations – areas with seasonal demand s and leased office spaces. The City maintains park restrooms, community centers, libraries, City Hall , the Annenberg Beach House, and the Santa Monica Pier with 59.0 FTE in -house staff, and employs as -needed staff for beach restroom cleaning at the Santa Monica State Beach. Services include regular daily and monthly services, and quarterly specialty services, such as carpet cleaning, window cleaning and stripping and sealing composition floors. For health and safety reasons, custodial services must be c ontinuo us and are a high City priority, and c ontractors maintain City facilities in excellent condition. The contractor has strong incentives to perform well related to industry competition and the need to win a subsequent bid, and staffing flexibility ma kes this high level of service dependable. Contract In -House New FTE Hours 40,779 hrs. 60,320 hrs. 29 .0 FTE Space 11,660 ft 2 COSTS ($ in millions) Contract & Contract Management 1.8 In -house staff 2.3 Equipment & Training (year 1) 0.3 Space Costs 1.4 Overhead 0.5 Total Year 1 $1.8 M $4.5 M $2.7 M Ongoing $1.8 M $3.6 M $1.8 M Custodial Services primarily meets the following criteria for contracting out the service: Capital/Equipment Requirements • Providing all custodial services in -house woul d require purchasing and maintaining 7 vehicles and 14 specific equipment types . The first year cost for equipment is $0.3 million, with ongoing costs of $0.1M annually. Space Requirements • Additional parking space of 11,150 sq. ft. for 7 City vehicles and 29 personal vehicles would be required at a cost of approximately $0.7 million per year. An a dditional 510 sq. ft. would be required for materials storage and employee break room/locker space , at an estimated $30 ,600
Attachment F 12 per year . In addition, staff estimates a one -time $0.7 million cost for tenant improvements related to all space acquisitions . Workforce Flexibility • Various work sites, like the Santa Monica Pier restrooms , have seasonal demands that require flexible staffing. • Staff must be available to perform services at 13 locations at one time. The City would need to hire additional staff to be present at multiple locations , and also manage a variety of hours to avoid impacting operations . • Staf f absences for vacation or sick leave would require additional and duplicative hours in overtime or as -needed hours to provide service effectively. During staff leave , daily services such as trash pickup and restroom cleaning are not performed unless staf f is pulled from other areas, resulting in deferral of weekly tasks. The additional coverage would require a 48% increase in hours over what is currently contracted —the equivalent of 9.4 FTE.
Attachment F 13 Police Vehicle Up -fitting Services As a part of the City’s equipment replacement program, staff anticipates replacing 60 Police Department vehicles per year that woul d require up -fitting services. New v ehicles must be equipped with emergency lighting/warning equipment, police radio, prisoner transport systems, and mobil e computers and camera systems. Up -fitting services are required on a continuous basis, as older vehicles reach the end of their service life. Contract In -House New FTE Hours 2,714 hrs . 6240 hrs. 3.0 FTE Space 3,000 ft 2 COSTS ($ in millions) Contract In -House Net Contract & Contract Management 0.9 In -house staff 0.4 Equipment & Training (year 1) 0.7 Space Costs 0.9 Overhead 0.1 Total Year 1 $0.9 M $2.1 M $1.2 M Ongoing $0.9 M $1.3 M $0.4 M Vehicle Up -fitting Services primarily meet the following criteria for contracting out the service: Specialized/technical expertise • The service requires specialized equipment that must be installed to manufacturer specificat ions by a certified technician. City st aff does not have the necessary certifications to install such equipment. A significant amount of training would be required for employees to obtain certifications at a cost of $48,000 in the first year . As new equipment models are released, additional t raining would be required to maintain certification. Capital/Equipment Requirements • The service requires installation equipment and machinery/tools that are not available within City facilities and would cost $63,000 to purchase in the first year, and $48 4,000 for materials and other ongoing costs per year. The ongoing cost includes $0.5 million in materials costs, wh which the contractor currently provides. Space requirements • The service requires 3,000 square feet of additional work space to house the staff and equipment to provide the service, which is not available within City facilities, at a cost of approximately $1.1 million to build out and configure work space.
ATTACHMENT G CITY OF SANTA MONICA CONTRACTUAL SERVICES COST SUMMARY SERVICE CONTRACTOR # of Contract HRs Landscape services TruGreen Landcare 26%61,984 1,731,113 444,469 135,332 2,310,914 35.0 18,200 3,100,703 245,472 1,092,000 480 4,438,655 903,820 - - 903,820 5,342,475 602,398 94,850 37,382 734,629 6,077,104 3,766,190 Tree care and maintenance West Coast Arborists 25%42,848 1,813,273 453,318 93,551 2,360,143 24.0 16,300 2,471,789 815,844 978,000 2,400 4,268,033 2,692,580 50,000 - 2,742,580 7,010,613 1,241,475 387,344 25,633 1,654,452 8,665,065 6,304,922 Custodial Services Various Custodial 25%40,779 1,343,476 335,869 89,034 1,768,379 29.0 11,660 2,315,931 111,011 699,600 - 3,126,542 223,240 740,000 - 963,240 4,089,782 326,555 94,055 30,973 451,584 4,541,365 2,772,986 Door repair and replacement All Access Doors / Lawrence Doors / Specialty Doors 12%500 100,000 12,000 1,092 113,092 2.0 900 163,702 400 54,000 - 218,102 16,600 225,000 - 241,600 459,702 22,081 6,487 2,136 30,703 490,405 377,314 Roof repairs & replacement Apex Roofing / Best Contracting / Tecta So Cal 12%1,200 325,000 39,000 2,620 366,620 4.0 1,200 355,092 - 72,000 - 427,092 20,000 300,000 - 320,000 747,092 47,779 12,973 4,272 65,024 812,117 445,497 Police Department Vehicle Up-fitting Airwave Communication Enterprises 12%2,714 792,000 95,040 5,926 892,966 3.0 3,000 355,927 483,975 180,000 112,936 1,132,838 62,888 750,000 48,000 860,888 1,993,726 124,666 11,252 3,204 139,122 2,132,848 1,239,883 On-site security guard services Currently out for bid 12%8,736 450,000 54,000 19,074 523,074 10.0 - 941,021 16,793 - 600 958,413 50,000 - 1,990 51,990 1,010,403 68,214 67,333 10,680 146,227 1,156,631 633,557 Cummins engine services on LNC/CNG powered City transit buses Cummins engines Cummins Pacific LLC 12%1,016 344,000 41,280 2,218 387,498 1.0 3,600 118,642 210,300 216,000 7,500 552,442 2,000 900,000 7,500 909,500 1,461,942 23,946 6,733 1,068 31,747 1,493,689 1,106,191 ZF transmission overhaul services Harbor Diesel & Equipment, Inc.12%200 125,000 15,000 437 140,437 1.0 600 118,642 215,308 36,000 7,500 377,450 137,000 150,000 7,500 294,500 671,950 24,302 6,733 1,068 32,104 704,053 563,617 Technical support for electronic support equipment Intercon Technologies 12%1,034 114,750 13,770 2,258 130,778 1.0 400 118,642 52,370 24,000 7,500 202,512 12,000 100,000 7,500 119,500 322,012 12,705 6,733 1,068 20,507 342,519 211,741 Engine in-frame/overhaul services for Detroit 50 Series LNG powered engines Valley Power Systems, Inc.12%1,019 208,360 25,003 2,225 235,588 2.0 3,600 237,284 202,370 216,000 7,500 663,154 12,000 900,000 7,500 919,500 1,582,654 31,826 13,467 2,136 47,428 1,630,083 1,394,495 LNG CNG fuel systems maintenance and repair.Agility Fuel Systems 12%2,000 400,000 48,000 4,367 452,367 3.0 112 331,955 159,419 6,720 2,600 500,694 15,000 28,000 - 43,000 543,694 35,158 20,200 3,204 58,562 602,256 149,889 Bus HVAC maintenance and repair Bus Systems Unlimited 12%3,500 175,000 21,000 7,642 203,642 3.0 112 355,927 12,656 6,720 8,000 383,303 - 28,000 - 28,000 411,303 26,803 20,200 3,204 50,207 461,509 257,868 Bus detailing and cleaning Uniserve Facility Maintenance 12%4,160 110,000 13,200 9,083 132,283 3.0 112 243,163 4,256 6,720 3,384 257,523 - 28,000 - 28,000 285,523 17,851 20,200 3,204 41,255 326,778 194,495 LCNC fueling facility maintenance and repair Clean Energy 12%900 250,000 30,000 1,965 281,965 4.0 112 660,749 155,656 6,720 2,600 825,725 - 28,000 - 28,000 853,725 58,292 26,933 4,272 89,497 943,222 661,257 Bus stop furniture and signage cleaning and maintenance Shelter Clean 12%4,160 150,000 18,000 9,083 177,083 3.0 112 245,553 79,930 6,720 2,600 334,803 170,160 28,000 - 198,160 532,963 23,351 20,200 3,204 46,755 579,718 402,636 Bus Facilities Maintenance and Repair Vehicle Technical Consultants 12%2,080 150,000 18,000 4,541 172,541 2.0 112 239,826 1,656 6,720 4,000 252,202 100,000 28,000 - 128,000 380,202 17,472 13,467 2,136 33,075 413,276 240,735 Bus transmission overhauls Westerns States Converters 12%295 125,000 15,000 644 140,644 1.0 600 118,642 300 36,000 15,000 169,942 335,000 150,000 - 485,000 654,942 9,533 6,733 1,068 17,335 672,277 531,633 General Contractor Services RAMCO/Omega Construction 12%3,500 350,000 42,000 7,642 399,642 2.0 600 217,637 8,776 36,000 - 262,413 69,800 150,000 2,000 221,800 484,213 30,465 6,487 2,136 39,087 523,301 123,659 Heating, ventilation, and HVAC LEC Service / Masters Mechanical / West Coast Air 12%1,800 175,000 21,000 3,930 199,930 1.0 600 121,525 8,644 36,000 22,022 188,191 44,550 150,000 10,000 204,550 392,741 20,478 3,243 1,068 24,789 417,530 217,600 Painting Services AJ Fiestes / ENL Service / Stolie Painting 12%4,900 174,999 21,000 10,698 206,697 3.0 900 313,086 22,564 54,000 - 389,650 101,900 225,000 3,750 330,650 720,300 45,163 9,730 3,204 58,097 778,397 571,699 Plumbing Services CDMT/The Lighthart Group/Wilner Plumbing 12%1,600 174,999 21,000 3,493 199,492 2.0 600 221,452 16,528 36,000 22,022 296,002 86,800 150,000 - 236,800 532,802 34,984 6,487 2,136 43,607 576,409 376,917 Asbestos/Hazardous Materials Mitigation Services Castlerock Environment 12%1,000 100,000 12,000 2,183 114,183 7.0 1,200 761,174 4,200 72,000 - 837,374 20,000 300,000 14,000 334,000 1,171,374 102,984 22,703 7,476 133,163 1,304,537 1,190,354 Carpet and Flooring Repair Services Elite Floorcovering 12%1,600 300,000 36,000 3,493 339,493 5.0 1,500 556,002 - 90,000 - 646,002 - 375,000 - 375,000 1,021,002 74,812 16,216 5,340 96,369 1,117,372 777,878 Bulky item collection services Chrysalis 12%2,080 127,800 15,336 4,541 147,677 2.0 - 175,640 2,400 - - 178,040 4,000 - 51,520 55,520 233,560 15,627 20,147 2,136 37,910 271,470 123,793 Maintenance, Repair Service, and Replacement Equipment for Water Pumps Citywide General Pump 12%1,000 259,600 31,152 2,183 292,935 14.0 6,000 1,585,704 23,500 360,000 - 1,969,204 900,000 1,500,000 13,860 2,413,860 4,383,064 135,320 26,120 14,953 176,392 4,559,456 4,266,520 Operations, Maintenance, and Management Services (OMMS) for the Charnock Well Field Evoqua Water Technologies 12%6,240 278,024 33,363 13,624 325,011 3.0 - 444,873 2,700 - 405 447,978 - - 600 600 448,578 37,671 5,597 3,204 46,472 495,050 170,039 ADDL COST / -SAVINGS w IN-HOUSE TOTAL W/ INDIRECT TOTAL INDIRECT Contract Management %CONTRACT MGMT. COST TOTAL CONTRACT COST ADD'L STAFF (HR + Payroll)ANNUAL CONTRACT AMT.OVERHEAD (on ongoing direct costs)WORKERS' COMP (on salaries)FTE for In-House SQ FT STAFFING EQUIPMENT ONGOING SPACE ONGOING TOTAL ONE-TIME TOTAL DIRECT COSTS ACA / Sick Leave OTHER ONGOING TOTAL ONGOING EQUIPMENT ONE-TIME SPACE ONE-TIME (TI)OTHER ONE-TIME
ATTACHMENT G CITY OF SANTA MONICA CONTRACTUAL SERVICES COST SUMMARY SERVICE CONTRACTOR # of Contract HRs ADDL COST / -SAVINGS w IN-HOUSE TOTAL W/ INDIRECT TOTAL INDIRECT Contract Management %CONTRACT MGMT. COST TOTAL CONTRACT COST ADD'L STAFF (HR + Payroll)ANNUAL CONTRACT AMT.OVERHEAD (on ongoing direct costs)WORKERS' COMP (on salaries)FTE for In-House SQ FT STAFFING EQUIPMENT ONGOING SPACE ONGOING TOTAL ONE-TIME TOTAL DIRECT COSTS ACA / Sick Leave OTHER ONGOING TOTAL ONGOING EQUIPMENT ONE-TIME SPACE ONE-TIME (TI)OTHER ONE-TIME Hazardous Waste Transportation, Management, and Recycling/Disposal PSC Environmental 12%100 100,000 12,000 218 112,218 3.7 2,350 384,825 33,572 141,000 8,340 567,737 340,000 587,500 - 927,500 1,495,237 37,456 37,271 3,952 78,679 1,573,916 1,461,697 Maintenance, Repair Service, and Replacement Equipment for Six (6) Wastewater Pumping Plants Pumpman 12%200 250,000 30,000 437 280,437 12.0 5,750 1,330,441 271,000 345,000 8,880 1,955,321 1,015,000 1,437,500 11,880 2,464,380 4,419,701 105,499 28,524 12,817 146,840 4,566,541 4,286,104 MSW Process and Hauling Services Southern California Disposal 12%- 2,500,000 300,000 - 2,800,000 10.0 600 929,357 552,900 36,000 30,000 1,548,257 2,465,660 150,000 38,740 2,654,400 4,202,657 250,000 100,734 10,680 361,414 4,564,072 1,764,072 Door-to-Door HHW Collection WM Curbside, Inc 12%832 200,000 24,000 1,817 225,817 2.0 300 236,867 185,700 18,000 - 440,567 193,700 75,000 51,000 319,700 760,267 37,090 20,147 2,136 59,373 819,640 593,823 Pier Carousel Operation and Maintenance Roth Management 12%5,532 248,322 29,799 12,078 290,199 5.0 - 457,614 1,000 - - 458,614 - - 3,601 3,601 462,215 67,555 - 5,340 72,895 535,111 244,912 Marketing, Event Production, Performer Monitoring, Policy Recommendations to Council Santa Monica Pier Corporation 12%15,000 494,257 59,311 32,750 586,318 7.0 - 1,159,235 - - - 1,159,235 - - - - 1,159,235 170,758 - 7,476 178,234 1,337,469 751,151 Fiber Cable Construction Dynalectric 12%1,100 130,213 15,626 2,402 148,241 4.0 800 454,011 19,654 48,000 - 521,665 47,500 200,000 - 247,500 769,165 32,735 3,355 4,272 40,362 809,527 661,286 24/7 Network Operations Center Mosaic451 12%8,736 72,500 8,700 19,074 100,274 5.0 600 814,736 - 36,000 - 850,736 - 150,000 2,000 152,000 1,002,736 48,437 4,193 5,340 57,971 1,060,707 960,433 Prisoner Transportation Los Angeles County Sheriff's Office - Prisoner Transport 12%- 99,183 11,902 - 111,085 3.0 - 509,667 9,056 - - 518,723 70,000 - 3,000 73,000 591,723 30,342 24,233 3,204 57,779 649,502 538,417 Supplemental Law Enforcement Services Los Angeles County Sheriff's Office - Supplemental Enforcement 12%800 260,000 31,200 1,747 292,947 22.0 - 3,849,499 - - - 3,849,499 - - - - 3,849,499 190,161 177,707 23,497 391,365 4,240,864 3,947,918 Maintain City parking facilities and staff City events Central Parking 25%183,444 5,090,000 1,272,500 400,520 6,763,020 99.0 - 11,112,577 140,740 - - 11,253,317 234,160 - - 234,160 11,487,477 1,616,129 - 105,737 1,721,865 13,209,342 6,446,322 Provide and maintain Parking Access and Revenue Control System DataPark USA, Inc.12%- 190,000 22,800 - 212,800 1.0 300 173,260 500 18,000 - 191,760 3,225,000 75,000 - 3,300,000 3,491,760 24,954 - 1,068 26,022 3,517,782 3,304,982 Parking meter/sensor installation and monitoring IPS Group, Inc.25%- 1,293,800 323,450 - 1,617,250 - - - 717,500 - - 717,500 5,400,000 - - 5,400,000 6,117,500 103,043 - - 103,043 6,220,543 4,603,293 Parking citations and residential parking permits processing Xerox State and Local Solutions, Inc.25%24,960 1,535,000 383,750 54,496 1,973,246 15.0 2,500 1,574,911 92,500 150,000 - 1,817,411 759,350 625,000 - 1,384,350 3,201,761 239,463 - 16,021 255,483 3,457,244 1,483,998 Transit bus body repair and painting services as needed by BBB Carlos Guzman Inc. 12%14,062 614,250 73,710 30,702 718,662 9.0 5,000 982,496 56,840 300,000 94,212 1,433,548 7,020,000 1,250,000 2,600 8,272,600 9,706,148 80,679 - 9,612 90,291 9,796,439 9,077,777 Unarmed Security (Beach House)Eagle Security Services 12%8,300 158,400 19,008 18,122 195,530 4.0 - 346,345 300 - - 346,645 - - - - 346,645 35,275 - 4,272 39,547 386,192 190,662 TOTAL 465,911 23,883,319 4,542,556 1,017,240 29,443,115 371.7 90,332 41,206,123 4,938,288 5,419,920 370,481 51,934,813 26,749,708 11,833,000 288,541 38,871,249 90,806,062 6,281,485 1,348,787 396,993 8,027,265 98,833,327 69,390,212
VENDOR :GOODWILL SOUTHERN CALIFORNIA EF ENTERPRISES QUALIFIED MOBILE, INC SHELTERCLEAN SERVICES LOS ANGELES, CALIFORNIA BANNING, CALIFONRIA NORCO, CALIFORNIA SUN VALLEY, CALIFORNIA PRICING PER PERSON/HR PER PERSON/HR PER PERSON/HR PER PERSON/HR ALL HOURLY RATE PRICING WILL INCLUDE PERSONNEL, CLEANING SUPPLIES, CLEANING MATERIALS, VEHICLES, EQUIPMENT, AND TOOLS NECESSARY TO PERFORM THE JOB AS DESCRIBED IN THIS BID SPECIFICATION.REGULAR HOURLY RATE $27.00 $64.00 $40.00 $32.80 OVERTIME HOURLY RATE $32.00 $90.00 $60.00 $45.20 PAYMENT TERMS NET 10 DAYS NET 60 NET 30 N/A PLEASE DESCRIBE ANY ADDITIONAL FEES AND CHARGES NOT LISTED ABOVE (I.E. FREIGHT, FUEL SURCHARGES)NONE N/A NONE N/A DESCRIPTION RESPONSE RESPONSE RESPONSE RESPONSE VENDOR MEETS REQUIRED EXPECTATIONS YES YES RENEWAL OPTION PERIOD 2 (FIRST ANNUAL RENEWAL OPTION)3% INCREASE 3% INCREASE SAME PRICE, TERMS, AND CONDITIONS OFFERED 3% INCREASE. INCREASE WILL EQUAL LIVING WAGE. INCREASE IF IT EXCEEDS 3% IN ANY OPTION YEAR. RENEWAL OPTION PERIOD 3 (SECOND ANNUAL RENEWAL OPTION)3% INCREASE 3% INCREASE SAME PRICE, TERMS, AND CONDITIONS OFFERED 3% INCREASE. INCREASE WILL EQUAL LIVING WAGE. INCREASE IF IT EXCEEDS 3% IN ANY OPTION YEAR. OAKS INITIAVTIVE DISCLOSURE FORM COMPLETE COMPLETE INCOMPLETE COMPLETE STATE OF ARIZONA DISCLOSURE FORM NO PRESENCE NO PRESENCE NO PRESENCE NO PRESENCE LIVING WAGE ORDINANCE NON-PROFIT EXEMPT COMPLETE COMPLETE COMPLETE Reference checks Unable to verify work experience from references. Cost prohibitive Cost prohibitive All three references were very favorable ATTACHMENT A
1 councilmtgitems From:ZinaJosephs@aol.com Sent:Tuesday, February 23, 2016 1:35 PM To:Council Mailbox; councilmtgitems; Kevin McKe own Fwd; Tony Vazquez; Gleam Davis; Sue Himmelrich; Pam OConnor; Terry O’Day; Ted Winterer Cc:zinajosephs@aol.com Subject:City Council: 2/23/16 item 3-J -- Big Blue Bus Follow Up Flag:Follow up Flag Status:Flagged February 23, 2016 To: City Council From: Zina Josephs Re: 2/23/16 agenda item 3-J Custodial and Maintenance Serv ices for Big Blue Bus (BBB) Bus Stops and Zones Located Within and Outside of Santa Monica Reading in the Feb-Apr Seascape about the "City of Santa Monica's 5 Strategic Goals," the "Mobility" section says that "2016 will be a year of new choices for mobility in Santa Monica...with attractive and convenient choi ces for people to get where they're going, while helping to reduce vehicle cong estion and climate change." Having read that, I was startled to read in the Staff Report for agenda item 3-J the following: 1) The number of BBB bus stops has been reduced from 1,200 to 1,003. 2) While 650 of the stops are located outside of Santa Monica, only 270 of the bus stops are located within Santa Monica . (I don't know where the other 83 are located.) I have the following questions: A) How does reducing the number of bus stops make ri ding BBB more convenient for Santa Monica residents? For example, people who lives in the large apartment buildings on Appian Way between Pico and the Pier, and in the 160 affordable apartments on Ocean Avenue between Pico and Olympic Drive, used to able to catch the #7 Pico bus on Ocean Avenue in order to shop at: i) Rite Aid on Pico and 24th ii) 99-cent store on Pico and 28th iii) Trader Joe's on Pico and 33rd Add to 3-J 02/23/16
2 Now they have to walk to and from 4th Street and carry their grocerie s for several additional blocks on the way home. Is that more “convenient”? B) Why are the vast majori ty of the BBB bus stops located outside Santa Monica? I’ve been told that BBB is not a “municipal” bus company but rather a “regional” bus company. City web sites tell a different story: http://bigbluebus.com/About-BBB/About-BBB.aspx -- "The Big Blue Bus is a City of Santa Monica department , governed by Santa Monica’s City Council." http://bigbluebus.com/About-BBB/Timelin e/Historical-Info/Historical-Info.aspx --In 1928, the City of Santa Monica launched its own bus line and over 16,000 passengers rode the new buses the first week. They chose a blue color scheme for their buses and called their service Santa Monica Municipal Bus Lines ....In 1950, Bay Cities Transit sold to Santa Monica Municipal Bus Lines, now commonly known as the Big Blue Bus ....The agency’s name was officially changed to "Santa Monica's Big Blue Bus" in 1999, reinforcing its role as a cornerstone of the city’s “S ustainable City Plan.” C) Why is “Santa Monica’s Big Blue Bus” eliminating an d moving bus routes in a way that reduces public transportation options fo r Santa Monica residents who may not be able to afford a car? In what way is that considered “sustainable”? D) When is the new BBB bus stop that was mistakenly constr ucted on my block going to be removed? In a message dated 02/16/16 12 :37:28 Pacific Standard Time , Suja.Lowenthal@SMGOV.NET writes: Hi there, Zina. I hope you had a great weekend. I a pologize for the delay in getting back to you. Thank you for pointing this out to us. The person who helped you on the phone was correct in that there is no route to be found on 23rd Street between Ocean Park and Pearl. With over 110 bus stops being built in preparation for next week's service change we have had some confusion and we are glad to report that mistakes such as this have been kept to a minimum. With the new service to Bergamot Station so close to your house and your deep interest in all things related to transportation, we hope to see you on the new service and to hear more about your experience as a bus rider and your thoughts as a passenger on how we can improve the system. Thanks again for letting us know a bout this. We will have it removed. Warmly, suja From: ZinaJosephs@aol.com [mailto:ZinaJosephs@aol.com] Sent: Saturday, February 13, 2016 3:16 PM Add to 3-J 02/23/16
3 To: Suja Lowenthal <Suja.Lowenthal@SMGOV.NET> Cc: zinajosephs@aol.com; elaincarol@earthlink.net; starbaby@earthlink.net; crdonaldsn@verizon.net; OMGLaw@gmail.com; nhkolhoff@yahoo.com; vflitton@earthlink.net; fospairport@rocketmail.com Subject: New Bus Stop? Southbound 23rd between Pearl & Ocean Park Blvd. Dear Suja, The attachment is a photo of a new concrete pad and a sign announcing a "New Bus Stop" on the west side of 23rd Street north of Ocean Park Blvd. I'm not aware of any new bus route that will have buse s traveling south on 23rd between Pearl Street and Ocean Park Blvd. I phoned the number on the sign on Wednesday, February 10th, and spoke to a young woman who perused the bus route maps for about 10 minutes, but could not figu re out why a bus stop would be constructed in that location. She promised to have someone from BBB call me back, but no one has. I'd appreciate your letting me know the purpo se of a BBB bus stop in that location. Best regards, Zina Josephs and members of the FOSP Board of Directors Add to 3-J 02/23/16
1 councilmtgitems From:Council Mailbox Sent:Tuesday, February 23, 2016 4:17 PM To:Tony Vazquez; Ted Winterer; Pam OConnor; Sue Himmelrich; Gleam Davis; Terry O’Day; Kevin McKeown Fwd Cc:councilmtgitems; Elaine Polachek; Ed King; Suja Lowenthal Subject:FW: Consert Item - 3 -J: BBB want the CIty to pay for maintenance on bus stops within and OUTSIDE of SAnta Monica.Follow Up Flag:Follow up Flag Status:Flagged Council ‐ Please see email below re: BBB bus stop maintenance. Clerk ‐ Add ‐to for tonight's meeting. Thanks, Stephanie ‐‐‐‐‐Original Message ‐‐‐‐‐ From: Ellen Brennan [mailto:ellenbren@roadrunner.com] Sent: Tuesday, February 23, 2016 4:00 PM To: Council Mailbox <Council.Mailbox@SMGOV.NET> Cc: Rick Cole <Rick.Cole@SMGOV.NET> Subject: Fwd: Consert Item ‐ 3 ‐J: BBB want the CIty to pay for mai ntenance on bus stops within and OUTSIDE of SAnta Monica. > > >>>>> Dear Council members >>>>> >>>>>>> On tonight concil agenda: Item 3 ‐J deserves your attention. >>>>>>> >>>>>>> BBB service witin SAnta Monica is serously lacking. . When I complain, I’m told that BBB is not s San ta Monica bus company. It’s a regional bus company. In fact their web site says they service Santa Monica and West Los Angeles. Their rating among Santa Monica residents is so bad they have hired a consulting firm to help them change that. >>>>>>> >>>>>>> BBB buses are all over Culver City, even th ought Culver City has it’s own bus company. BBB services the length of Westword Blvd, in Westword and go all the way to the West Side Perviillion on Pico. Is the City of SAnta Monica ready to take on the maintaince of all those bus stops outside SA nta Monica while leaving Santa Monica residents standing at bus stops within the city that BBB now refuses to service? Add to 3-J 02/23/2016
2 >>>>>> >>>>>>> The bus stop at Pico and Main Street has been abondomed So has the bus stop at Colorado and Ocean (justs north of the pier bridge. on the west side of Ocean where buses heading South on Ocean Ave have stopped for years. This stop has serviced the pier an d South Beach Neighborhood for years. But no more. All the stops on the >>>>>> >>>>>> east side of Ocean avenue from Pico to Colorado have all been abondomed. for buses headed north on Ocean. The bus stops on 4th Street between Colorado and the corner of Broadway have all been aba ndoned. Also BBB runs two buses on PIco ‐ the 7 and 7R. In conversation with a bus driver he said, “When I started driving this bus, it was all about service. But Today I see residents standing for an hour while the 7R bus that services the West Side Pervillion refuses to pick th em up >>>>>> >>>>>> Now BBB is asking the City to pay for maintenance for BBB stops OUTSIDE the city? .Now how would could you justify that expese. There’s no benefit to the City >>>>>> >>>>>> Please remove item 3 ‐J off the Cersent Calendar. There is no ben efit to the City to pay for maintance for BBB stops OUTSIDE the City. especially since residents have lost bus service in their neighborhoods within the Cityl. . >>>>>> >>>>>> Thank you, >>>>>> >>>>>> Cordially, >>>>>> Ellen Brennan >>>>>> Speaker for South Beach Neighborhood >>>>> >>>>> P.S. my spell check may not be working today, But I hope you get th e message and will have 3 ‐J removed from the consent callender. I think hou’ll agree. that would make good financial sense for the city . ‐ Thank you. >>>>>> . >>>>>> >>>>>>> >>>>>>> >>>>>> >>>>> >>>> >>> Add to 3-J 02/23/2016
3 >> > Add to 3-J 02/23/2016
Reference: Agreement No. 10256 (CCS)