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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 1 of 4 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 , 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 2 of 4 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 3 of 4 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 4 of 4