SR 06-14-2016 3I
City Council
Report
City Council Meeting: June 14, 2016
Agenda Item: 3.I
To: Mayor and City Council
From: Donna Peter, Director, Human Resources Department
Subject: Authorize the Purchasing Services Manager to Issue Purchase Orders to
Temporary Staffing Agencies
Recommended Action
Staff recommends that the City Council:
1. Award RFP #56 to AppleOne Employment Services Government Solutions
Division, a California-based company; Chrysalis Enterprises, a California-based
company; First Call Staffing, Inc., a California-based company; JAS Pacific, a
California-based company; Johnson Service Group, an Illinois-based company;
NTT Data, Inc., a Massachusetts-based company; Partners In Diversity, Inc., a
California-based company; Top Tempo - Future Personnel Agency, Inc., a
California-based company; Two Roads Professional Resources, Inc., a
California-based company; and Ultimate Staffing Services, a California-based
company; for temporary staffing services;
2. Authorize the Purchasing Services Manager to issue purchase orders with
AppleOne Employment Services Government Solutions Division, Chrysalis
Enterprises, First Call Staffing, Inc., JAS Pacific, Johnson Service Group, NTT
Data, Inc., Partners In Diversity, Inc., Top Tempo - Future Personnel Agency,
Inc., Two Roads Professional Resources, Inc., and Ultimate Staffing Services for
temporary staffing in the amount not to exceed $700,000 for one year, with four
additional one-year renewal options to extend on the same terms and conditions
for a total amount not to exceed $3,500,000, with future year funding contingent
on Council budget approval.
Executive Summary
Staff recommends that the City Council authorize the Purchasing Services Manager to
issue purchase orders to ten temporary staffing agencies on an as-needed basis for a
one-year term, with four additional one-year renewal options to extend on the same
terms and conditions. City Departments utilize Temporary Staffing Agencies for a
variety of reasons including temporarily staffing positions held by permanent employees
on leave, assisting with more specialized projects or to temporarily work in an open
position during the recruitment process. In these rare instances City Departments
request a temporary staff person through the Human Resources Department. Human
Resources Staff works with the requesting Department to fully assess the need and
then selects from the list of pre-approved agencies to supply the personnel. Once the
temporary staff person is dispatched, Human Resources Staff will remain in
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communication with the requesting Department to monitor the effectiveness of the
appointment. The use of temporary staff is infrequent, with only 28 temporary staff
hired in Fiscal Year 2014-2015. The estimated expenditure for temporary staff is
expected to be less than $700,000 dollars annually. This estimate is based on past
expenditures of $702,641 in FY 2013-14 and $663,634 in FY 2014-15.
Background
Prior to July 2005, City Departments independently utilized the services of temporary
staffing agencies. They were typically used to temporarily staff project-based work
requiring specialized staff such as engineers, IT professionals and accountants. In
addition the agencies were used to quickly and efficiently provide general staff to cover
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positions ranging from administrative work to facility maintenance due to the temporary
absences of permanent employees or while recruitments were completed by the Human
Resources Department.
This resulted in difficulties in monitoring and regulating temporary staffing agency usage
across departments. It was determined that the temporary staffing should be
centralized in Human Resources. The Human Resources Department issued a Request
approval in February 2006, to establish a list of seven agencies to provide temporary
personnel. This proved to effectively address the issues while still meeting the needs of
the department. Following expiration of RFP results from 2005, the Human Resources
Department issued a new RFP in 2009 for temporary staffing services, which was
approved by the City Council on October 27, 2009. The 2009 RFP process resulted in
12 agencies selected as approved vendors through FY 2013-14.
In FY 2014-15 and FY 2015-16, while a new RFP process was underway, purchase
orders for temporary staffing services have been approved by the City Manager. In
FY2015-16, the City utilized staff from temporary agencies 44 times to support
administrative and professional functions. A summary is below.
Position Type Utilization
Administrative Support 33
Civil Engineer 1
IT Specialist 3
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Mail Courier 2
Permit Specialist 2
Plan Check 2
Transportation Engineer 1
TOTAL 44
Discussion
The Human Resources Department receives all requests for temporary staff. This
ensures that temporary staff are hire appropriately and allows for monitoring the total
number of hours the individual works. The monitoring performed by Human Resources
makes sure that the City remains in compliance with CalPERS regulations and that
temporary staff are hired for the appropriate reasons. Staffing through these agencies
is more costly than directly hiring as-needed staff so Human Resources works
periodically reviews the placements to determine if the assignment can be handled in a
more efficient or permanent way. For example, the City recently hired a temporary
Transportation Engineer while a recruitment is being planned. This required the use of
a certain type of professional for an extended time period given the length of the exam
process. The City has reduced its usage of temporary staffing agencies since the
original RFP was conducted in 2006. At that time it was estimated at over $1 million a
year and it is now estimated to be approximately $700,000 per year.
Vendor Selection
On October 9, 2015, the City issued a Request for Proposals (RFP) for temporary
staffing services as required by various City Departments on an as-needed basis. The
Santa Monica Daily Press in accordance with City Charter and Municipal Code
provisions. 73 vendors downloaded the RFP and 17 proposals were received.
Proposals were evaluated based on the criteria in SMMC 2.24.073, including cost,
background/reference and reputation, flexibility, utility and suitability.
Agencies selected demonstrated an ability to respond to staffing requests quickly, with
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existing pools of temporary staff covering a range of positions at competitive pricing.
Some were also included due to their specialization in a particular field. Emphasis was
placed on agencies that perform these services for comparable clients and cost.
Based on these criteria, a pre-qualified list of ten vendors is recommended as best
qualified to provide temporary personnel. The chart below demonstrates what staffing
specializations each of the selected agencies offers.
Financial Impacts and Budget Actions
The purchase orders to be awarded to the above-referenced temporary staffing
agencies are for an amount not to exceed $3,500,000 over five years. Funds in the
amount of $700,000 are available in the FY 2016-17 Proposed Budget in the various
Departments submitting the requests for temporary staffing services.
Prepared By:
Donna Peter, Director
Approved Forwarded to Council
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