SR 09-14-2021 3B
City Council Report
City Council Meeting: September 14, 2021
Agenda Item: 3.B
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To: Mayor and City Council
From: Rick Valte, Acting Public Works Director, Public Works, Resource Recovery &
Recycling
Subject: Award Bid #4414 for Welding and Fabrication Services for Refuse, Recycling,
and Organics Containers
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4414 to Weldworx, Inc. for welding and fabrication services for
refuse, recycling, and organics containers for the Public Works Department; and
2. Authorize the City Manager to negotiate and execute an agreement with
Weldworx, Inc., in a total amount not to exceed $337,000 (including a $11,232
contingency) over a five-year period, with future year funding contingent on
Council budget approval.
Summary
To ensure safe use and prolonged reliable operation, staff relies on the use of welding
and fabrication services of a qualified vendor to repair City’s refuse, recycling, and
organics containers. Following a request for bids, the City received one bid. After
evaluating the bid based on price and ability to satisfy the City’s requirements, staff
recommends awarding a contract to Weldworx, Inc. for refuse, recycling, and organics
container welding and fabrication services for a total amount not to exceed $337,000
over a five-year period, with future year funding contingent on Council budget approval.
Discussion
The City maintains a refuse, recycling, and organics container replacement program for
replacement of the City’s two-, three-, and four-yard bins that are used throughout the
City. There are at least 2,793 bins in use across the City, each with an average lifespan
of five to eight years. Depending upon the material composition and color of a bin, the
current cost to purchase a new bin can range from $617.40 to $1,011.14 per bin
(excluding freight). These prices are due to the rising cost of plastic resin and metal,
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which has increased over the past year as a result of natural disasters and the effects of
the pandemic, as well as inflation. In addition to the costs per bin, the City has also had
to contend with increases in freight costs to ship the bins to the City.
One way to help reduce costs and the amount of bins purchased is to extend the
useful life of existing bins through welding and fabrication services. The longevity of the
containers can be prolonged from an average of five to eight years to up to 20 years
with proper repair and maintenance. Total annual repair and maintenance costs
average $55,100 per year. These repairs have extended the life of thousands of bins.
The number of bins repaired annually is approximately 468 which, at an average
replacement cost of $865 per bin, would total over $405,000 if all bins were replaced
rather than being repaired.
The City has used the services of an outside welder/fabricator to repair existing bins
and prolong their useful lives since 2003. On January 13, 2015, Council adopted a
Policy for Hiring Contracted or As-needed Staff for Non-professional Services
(Attachment A). This policy includes criteria under which contracting for a public service
is appropriate. Staff has reviewed the service needs, and recommends continuing to
provide refuse bin repair services through a contractor due to the following criteria:
• Specialized/Technical Expertise: Service requires technical or specialized
expertise that City staff could not or does not provide.
• Workforce Flexibility: Service is seasonal, unpredictable, or on-call basis. The
use of contract services provides the City with an opportunity to redefine or
adjust service levels as necessary to address demand.
Repair and maintenance services include: replacing lids, locks, or leach bars; replacing
and lubricating wheel and caster assemblies; straightening, aligning, and squaring
containers; and engraving bin numbers as necessary. The contractor must also be able
to make field calls to Santa Monica businesses to replace or repair chains and locks on
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metal bins where needed. The contractor is required to have a valid certificate for light-
gage and structural welding and possess their own welding material and equipment.
Vendor Selection
Best and Only Bidder Weldworx, Inc.
Bidder $120/bin repair Municipal Code SMMC 2.24.180
Evaluation Criteria Price; the quality of the services offered; skill of the bidder to
perform the services; the capacity of the bidder to perform the
contract or provide the service promptly, within the time
specified, and without delay or interference. The City shall
have absolute discretion in determining the applicability and
weight of the criteria listed above.
Bid Data
Date Posted Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
05/14/2021 City's Online
Bidding Site Santa Monica Daily Press 1 06/09/2021
Additional Vendor Outreach & Justification to Award
Procurement conducted outreach to seven project followers and received only one
response from a non-bidder, who stated they do not provide on-site welding services.
Weldworx, Inc. submitted the only bid and provided fair and reasonable pricing for parts
and total repair cost per bin, as compared to the previous contract pricing, which did not
increase. In addition, Weldworx, Inc. is the incumbent service provider for the City’s
refuse, recycling, and organics containers, and is thus aware of material makeup and
compatible parts. Weldworx staff has provided quality welding repair and fabrication
services to the Resource Recovery and Recycling Division for the last five years. The
company has provided scheduled and unscheduled service to the satisfaction of staff.
Finally, Weldworx, Inc. has remained in full compliance with the previous contract
requirements. Based on these criteria, Weldworx, Inc. is recommended as the best
bidder.
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Past Council Actions
Meeting Date Description
07/26/2016 (Attachment B) Award Bid for Refuse Bin Repair
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Resource Recovery and
Recycling Fund to award a contract with Weldworx, Inc. for refuse, recycling, and
organics container welding and fabrication services. Future year funding is contingent
on Council budget approval.
Contract/Agreement/Purchase Order Request
FY 2021-22
Budget
Request Amount
Department Account # Total Contract
Amount
$67,400 54500002.529310 $337,000
Prepared By: Patty Manalo, Administrative Analst
Approved
Forwarded to Council
Attachments:
A. Policy for Hiring Contracted or As-needed Staff for Non-Professional Services
B. Staff Report - 7/26/2016 Item 3B - Award Bid for Refuse Bin Repair (Web Link)
C. Weldworx Oaks 2021
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City of Santa Monica
Contract and As-Needed Staffing Review
Policy, Practice, Recommendations
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Introduction
On August 26, 2014, the City Council directed staff to study and report on the City’s use of non-
professional, contractual services in an effort to understand how often and why services are
contracted out rather than completed with in-house staff. The study looked at benchmark
information, identified all major contract and as-needed staffing used in the City, reviewed
operations carefully to identify the costs and operational requirements of these services if they
were provided by permanent City employees, and documented existing criteria staff use to make
service delivery decisions. This report summarizes the findings of the study, includes
recommendations to convert certain contract or as-needed staffing to permanent staffing based on
a reevaluation of current practices, and recommends policies to guide future decisions.
Finding the most effective service delivery method is complex. For most City functions, staff prefers
using permanent employees to provide services in-house. Advantages to using permanent City staff
include longevity, continuity, loyalty, pay equity, and retained expertise. Factors such as staffing
flexibility, cost, capacity, risks, efficiencies, accountability and community goals shape policy
decisions to contract out or perform services in-house with permanent or as-needed staff. When
considering a new service or periodically assessing the quality and efficiency of ongoing services,
the City’s informal policy has been to first consider whether capacity is available in house to
complete the service with permanent staff.
If, after a thorough analysis, staff determines that permanent staff is not an effective option,
managers consider using as-needed or contracted staff. The City’s policy to consider in-house
service delivery as a primary option is reflected in the fact that its contractual services over
$100,000 account for approximately five percent of the City’s total operating budget, less than one-
third of national averages. The City’s superior compensation structure for both permanent and as-
needed staff also demonstrates the priority given to in-house services. The City can offer many
services at a high level because it employs permanent staff for core services that most interact with
the community and limits contracts with outside providers to specific areas of expertise, a need for
fluctuating staffing levels, or where the connection to the community is not as strong. This balance
provides more and better service within finite resources.
In January 2007, and again in January 2009, Council directed staff to report on its use of contracted
staffing to provide City services. In both reports, staff identified an informal policy, based on a set of
criteria, used to help managers decide whether a service would be better delivered using in-house
or contracted staff. Specifically, the 2007 report presented Council with policy options based on
community and Council values for service provision to inform a potential citywide contracting
policy. The 2009 report reviewed City practices, identified criteria by which staff determined
whether to contract out for service, and recommended formalizing these criteria. Staff committed
to use the identified criteria in service delivery decisions, to bring before Council each contract over
$100,000 (recently increased to $175,000), and to maintain in-house custodial services in certain
high profile City properties, such as City Hall and libraries.
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The most recent study builds on the 2007 and 2009 reviews and considers as-needed staff use. The
review of informal City policies, major City contractual services and as-needed staff use leads to the
following findings:
• Existing practice is consistent. City of Santa Monica departments follow common and
generally consistent criteria for identifying how to deliver services or respond to City needs.
• Providing all services in-house using permanent staff would pose significant operational
challenges and costs. The report includes a comprehensive review of the potential
estimated costs and operational considerations associated with converting all contracted
and as-needed labor to permanent, in-house staff. These challenges are significant.
Operationally, managers would lose staffing flexibility and the ability to offer service to
meet needs, and therefore service quality could suffer. Currently employed as-needed staff
and long-term contracted staff could lose jobs as they would be required to compete
against a large applicant pool for a fewer number of jobs. And, the City’s functions, the
number of personnel it is responsible for, how much equipment and space it owns, leases
and manages, how much risk it takes on, and its operating budget and long-term liabilities
would change significantly.
• The City could bring some currently contracted services in house and convert some as-
needed positions to permanent full time or part time status. Staff has identified a number
of conversions, based on study data, which would conform to existing criteria.
• A written policy would improve decision-making. A formal policy clearly reflecting
community goals and clarifying existing criteria would help provide consistent guidelines for
managers, assure contracted and permanent employees of the City’s goal to be fair and
provide reasonable job security, and provide transparency for Council and the community.
Types of Service Provision
The City uses three types of service provision: permanent staffing, as-needed staffing, and
contracted staffing. When asked to perform a new service, staff’s approach is to determine first
whether there is capacity among existing City staff to perform the service; if not, staff considers
whether new in-house or contracted staff should perform the increased service. This same process
occurs when staff reviews ongoing services. The choice depends on factors such as skills required,
number of staff, hours and locations, type and duration of service, level of associated risk, resources
available to manage staff or the contract, the level of equipment and space needs, and budget
available. When considering changes to the method in which existing services are provided, the
overriding policy and practice of the City has been to limit involuntary employee job loss to
extraordinary circumstances only. This is the case with permanent, as-needed, and contracted
positions.
For the purposes of this report, staff uses the following interpretations:
Permanent Staff. Permanent employees work at least 20 hours a week and have relatively
consistent work schedules. This is a common practice among local governments, and a long-
term City practice. The hour threshold links to retirement guidelines, which include enrolling
any employee working 1,000 hours annually in the CalPERS system. It is the City’s practice to
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use permanent employees for the majority of the services provided, especially when those
tasks fill ongoing, predictable needs and core city functions.
As-Needed Staff. The City identifies as-needed staff as those employees working on an as-
needed basis: for a certain indefinite period of time, and, whenever possible, for fewer than 28
hours per week. As-needed employees are not required to have consistent work schedules.
Several as-needed employees work more than one job either within or outside the City. Staff
depends on as-needed employees to supply services with seasonal, unknown, or fluctuating
demands, to temporarily fill those positions whose recruitments take multiple months to
complete, to provide coverage for various staff leaves (sick, vacation, family leave, etc.), and to
assist with short-term projects and special assignments. Because of the flexible hours, several
as-needed individuals can fill one full time equivalent position (2,080 hours of work). This
means that relative to permanent employees, as-needed hours or full time equivalent positions
offer a greater number of employment opportunities.
Contractual Services / Contracted Staff. This staff is employed by City-selected contractors
who provide services. Contractual service providers generally fill roles in which they can fulfill
a need for special expertise, flexibility, and efficiency. Contractors must abide by guidelines for
fair pay, as set by living wage and prevailing wage legislation, to partner with the City. Many of
these contracted employees have worked on City projects for many years.
Report Framework
The report follows the structure below. It provides background and best practices, and then a
comprehensive review of scope and findings related to each described service delivery method.
The report concludes with a discussion of next steps to implement recommendations.
Service Provision Background and Best Practices
Permanent Staffing
As-needed Staffing
Contracted Staffing
Recommendations and Next Steps
Service Provision Background and Best Practices
The International City / County Management Association (ICMA) conducts a survey of service
delivery by local government every five years. These results provide an informative indicator of
local government practice in the United States. Data from the 2012 study shows that direct public
delivery continues to be the dominant form of local government service provision, accounting for
45% of delivery on average across all services. The percentage of total services provided through
private delivery has remained relatively stable over the past 10 years (from 18 percent in 2002 to 16
percent in 2012). These services tend to be those where private markets are well established,
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where services tend to be easier to specify in a contract, and where services generally have low
citizen contact.
In its 2007 and 2009 reviews, staff reviewed contractual services practices and identified major
services (those greater than $100,000 per year) provided by contracted staff. In 2007 and 2009,
this number was about five percent of the City’s operating budget. The current analysis indicates
little change in the proportion of services contracted out, at five percent of the City’s FY 2014-15
operating budget. At less than a third of the national average noted in the ICMA study, Santa
Monica’s use of contracted staff to provide services is below the benchmark.
Staff asked the cities of Beverly Hills, Burbank, Culver City, Glendale, Long Beach, Pasadena, Simi
Valley, Thousand Oaks, Torrance and Ventura – cities the City commonly refers to for salary
comparisons - for information about their contractual services practices. The City of Long Beach
follows outsourcing guidelines contained in the city’s charter, and Beverly Hills and Thousand Oaks
reported informal outsourcing practices based on cost, human resources or bargaining unit
requirements, or Council direction. Most cities report contracting out for larger scale citywide
services - commercial waste, custodial, tree trimming; for routine maintenance - painting, heating
and air conditioning; and for specialized tasks - security guards and locksmith services. The most
commonly identified services contracted out, common to all cities surveyed, are custodial and
landscaping. A summary of city responses is included as Attachment A. Santa Monica’s contracted
services are similar to those reported by others, and in many cases Santa Monica provides services,
either partially or completely, in-house that comparison cities contract out: the Farmers’ Market,
Fire and Police dispatch, animal control, parking meter collection and maintenance, workers’
compensation, fixed route bus service, residential and commercial trash collection and recycling
services, some custodial and some landscape services, utility billing, tennis court reservations,
library technical and cataloging services, parking enforcement, and print shop services.
Permanent Staffing
Scope. The City currently has 1,998.7 Council-approved permanent full time equivalent (FTE)
positions. This is 91% of the City’s total workforce of 2,176.6, which includes permanent and as-
needed staff. Compared to benchmark cities, Santa Monica ranks second, behind only Beverly Hills,
in terms of General Fund city staff to population ratio. This staffing level indicates the City’s
commitment to high quality services provided by a stable, highly-trained workforce.
As discussed above, the City of Santa Monica provides most services directly using in-house staff.
The City has also brought a number of services once contracted out in-house to increase quality and
efficiency. These include workers’ compensation administration, business license audit, commercial
trash collection, and Fire dispatch.
Salaries and Benefits. Permanent employee salaries and benefits compared to surrounding
municipalities demonstrate the City’s commitment to attracting and retaining the highest quality
employees, and reflect the community’s value for fair treatment of its employees. The table below
compares the average salaries of the employee classifications that are most used in the types of
services examined in this study to those used in cities surveyed in Santa Monica’s salary comparison
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studies1. While these salaries reflect permanent classifications, as-needed employees are paid at
the same rate as their permanent peers. Currently, 94% of the City’s approximately 600 as-needed
employees work in positions earning more than the $15.37 living wage; exceptions are Junior
Lifeguards and Student Workers.
BARGAINING UNIT SM PERCENTAGE
ABOVE AVERAGE
Supervisory (STA) 8.84%
MEA 14.01%
TEAMSTERS 10.56%
UTU 12.69%
The City's benefits for full-time (and part-time) permanent employees include participation in the
California Public Employees Retirement System (CalPERS) pension program, medical, dental and
vision insurance, deferred compensation and the Dependent Care Assistance Plan. Full time and
permanent part time staff also receive paid vacation and sick leave (prorated based on FTE).
Permanent part-time City employees hired after July 1, 2010 and before January 1, 2015, who work
at least 20 and less than 32 budgeted hours per week have the option to elect from one of the City-
provided HMO medical insurance plans for themselves and their dependents. Those permanent
part-time employees hired after January 1, 2015 will have the option to elect from one of the City-
provided HMO plans for themselves only. Permanent part-time City employees may, at their option,
pay the difference between the premium of the HMO medical insurance plan and the Preferred
Provider Organization (PPO). All employees contribute towards the cost of their healthcare
premium.
Considerations. The average recruitment time frame for permanent position recruitment is 12
weeks, with an additional four to eight weeks for candidates to pass a background check. The
process begins with Human Resources staff working with a department that has a permanent
vacancy to create an examination plan. Through the examination processes, Human Resources
screens applicants, determines that they meet the minimum qualifications of the vacant position
and tests their skills, knowledge and abilities to perform the duties of the position. Successful
candidates are ultimately placed on an eligible list. The eligible list of qualified candidates is
presented to the hiring authority for final selection. The candidate is then processed by Human
Resources through the new employee orientation process where they are introduced to the City
and advised of the benefits associated with being a permanent employee. This includes
identification of the bargaining unit they will be represented by, their rights as a permanent
employee and a full explanation of benefits they will receive.
Departments often request to appoint an as-needed employee while the 12-16 week permanent
recruitment is in process and until a permanent employee is on board.
1 Beverly Hills, Burbank, Thousand Oaks, Culver City, Glendale, Long Beach, Pasadena, Simi Valley, Torrance,
Ventura
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Permanent employees are by definition less flexible in terms of hours and scheduling. To fill in for
their paid vacation, sick and family medical leave, and other contingencies, the City may hire as-
needed staff.
A permanent staff member also requires administration once he or she is hired, including training,
application of civil service rules involving performance evaluations and disciplinary actions,
accommodation through the workers’ compensation process, and liability risk. Staff anticipates a
30% increase in workers’ compensation costs in FY 2015-16 as a result of increased claims and
higher permanent disability costs based on new state laws, which in general favor workers’
compensation claims by employees.
These factors are a part of the civil service system as established by local law, and are not reasons
to avoid permanent staff for service provision. Rather, these factors impact program
implementation, timing, staffing composition, and expenses.
As-Needed Staffing
Scope. City staff surveyed departments for this report to ascertain the total hours worked and
types of services provided by as-needed employees. The City currently employs approximately 600
people in an as-needed capacity. These individuals work approximately 409,000 hours, equivalent
to 196.7 FTE, or 9% of the City’s total staff hours. Several staff can fill each full time equivalent
position’s hours, demonstrated by the fact that the number of people working is much greater than
the total full time equivalent position number. The total FY 2013-14 cost for as-needed staff was
approximately $8.0 million.
The majority of these reported hours come from three departments: Community and Cultural
Services (largely recreation and before and after school programs, such as the CREST programs); the
Library (largely library pages); and the Public Works Department (largely laborer trainees engaged
in custodial and maintenance work; and Resource Recovery and Recycling equipment operators).
Other classifications identified include crossing guards, video production assistants, parking meter
collection and counting room staff, and staff providing various administrative functions: a total of
53 different titles.
As noted above, the City’s practice is for permanent staff to work an average of 20 hours a week or
more. Because this study is examining what positions could most logically be converted to
permanent status, only the as-needed hours belonging to positions working an average of 20 hours
a week or more will be discussed. This group includes approximately 85 individual employees
(compared to 600 total as-needed employees). In a year, they work approximately 115,000 hours,
or the equivalent of 59.0 FTE, and make up $4.8 million of the total $8.0 million cost. Fewer
individuals work the hours represented in this group, demonstrating that most of the City’s as-
needed employees are in positions suited for less than full time employment.
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Total As-Needed Hours Identified
Hrs. FTE Total Current
Cost
Total 409,054 196.7 $8.0M
20 hrs. or more/week 114,598 59.0 $4.8M
Salaries and Benefits. The City of Santa Monica offers its as-needed employees competitive
compensation. The minimum wage for a non-student worker as-needed position is $15.37,
reflecting the City’s Living Wage rate, $6.37 per hour more than the California minimum wage. As
noted above, 94% of current as-needed employees fill permanent job classifications that are paid at
a rate comparable to that of their permanent peers; on average, these classifications are 8.8 - 14
percent higher than Santa Monica’s benchmark cities. Additionally, market studies have also shown
that the City’s compensation for a number of recreational positions is higher than that offered by
private service providers.
As-needed staff positions are essentially hourly positions with minimal benefits. The City of Santa
Monica provides a deferred compensation (457) retirement plan for its as-needed employees who
are not eligible for coverage under the California Public Employees Retirement System (CalPERS)
(working less than 1000 hours per year). The City and the as-needed employee are each required to
contribute 3.75% of wages to the deferred compensation plan. As-needed employee contributions
are deducted from paychecks on a pre-tax basis.
Any as-needed employee that works 1000 hours or more in a fiscal year automatically enters the
City’s pension plan according to Public Employee Retirement Law. A city’s failure to sign up an
employee in a timely manner will result in a $500 penalty. In this scenario, the City also takes on the
new, unbudgeted ongoing cost of the pension contribution. Staff monitors hours to avoid these
unplanned costs.
As-needed staff use has taken on a greater operational significance with the Affordable Care Act
(ACA) implementation. As a large employer under the ACA, the City must provide healthcare to all
employees working an average of 30 hours a week over the period of a year or face significant
penalties. In Spring 2014, staff evaluated all as-needed positions to determine which positions
consistently required an individual to work 30 hours a week, and converted these as-needed hours
to create 7.0 permanent employee positions in custodial, maintenance, and customer services
areas. An additional 18 staff will be offered healthcare benefits on January 1 (and are included in
recommendations to convert staff in this report) as it was later determined that their jobs required
them to work over 30 hours a week during the past year. Staff will continue to monitor as-needed
hours, as required by the ACA, and assess whether additional positions should be converted.
The City will comply with the Healthy Workplaces, Healthy Families Act of 2014, which requires that
an employee who, on or after July 1, 2015, works in California for 30 or more days within a year
from the commencement of employment is entitled to paid sick days for prescribed purposes, to be
accrued at a rate of no less than one hour for every 30 hours worked. An employee would be
entitled to use accrued sick days beginning on the 90th day of employment. The bill would
authorize an employer to limit an employee’s use of paid sick days to 24 hours or 3 days in each
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year of employment. The time will roll over if unspent in a given year with a maximum accrual cap
of 48 hours. The City’s permanent full and part time employees’ paid sick leave exceeds this
amount, while as-needed employees currently do not have access to paid leave. The City will
incorporate this benefit into its practices and budget beginning on July 1, 2015; the impact is not
anticipated to be significant.
Considerations and Hiring Processes. A total of 244, or 12 percent, of the City’s permanent
employees began their careers with the City in an as-needed capacity, demonstrating that as-
needed employment often acts as a portal for permanent employment. Thus, while currently as-
needed employees must compete for permanent positions based on merit, they may benefit in the
civil service recruitment process due to their knowledge of the City and its operations.
For as-needed staff to be converted to permanent status, they must compete in an open
competitive examination process according to Section 2.04.080 of the Santa Monica Municipal
Code. All employment processes are job-related and conducted to assess qualifications of each
candidate for particular positions. This is distinctly different than the hiring process for as-needed
employees, which consists of a Training and Experience Assessment. Candidate names are then
certified to the operating department. The department may then hire the best individual for the
position without being restricted to the full civil service rules that must be applied when hiring
permanent employees.
The City of Santa Monica attracts a high volume of applicants for most open positions. In the last
fiscal year, more than 15,000 individuals applied for a variety of positions with the City. With this
volume, Human Resources must use a fair, equitable and job related merit system process to screen
for the most qualified candidates to be placed on an eligible list for a particular position. One result
of the competition for job openings and regulated application process is that existing as-needed
employees applying for permanent positions are not guaranteed a position in the City. These
individuals must successfully pass examination processes or place very high on an eligible list, as
they may be competing with individuals with more education, training and experience who are
willing to accept lower level positions just to gain access to City employment.
Currently, 208 as-needed staff members have been employed by the City for over five years,
working in assignments that are seasonal or require a limited number of hours per day. The City has
very rarely elected to eliminate as-needed positions. However, in the event that this occurs, the
City affords as-needed staff a level of protection. For example, Public Works’ recommendation in
August to contract out Beach custodial services included a provision that as-needed Beach
Maintenance staff would be absorbed by the new contractor. In another instance, the Civic
Auditorium closure in 2013 meant that 14 long-term as-needed employees would lose their jobs.
Staff from the Human Resources and Community and Cultural Services Departments worked to find
alternate employment within the City and provided a variety of job search workshops and skills
coaching for the impacted employees. With this assistance, almost all staff members interested in
continuing employment with the City successfully competed for positions and were placed.
Cost of Services if Provided with Permanent Staff. As noted above, converting all as-needed
positions working an average of 20 hours per week would affect 85 employees’ current positions.
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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
114,598 59.0 $2.6M
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 provide 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 not a one to one conversion, as several as-needed employees can
fill one full time equivalent position. This means that conversion decreases the total number of
employment opportunities. And, the City cannot guarantee currently employed as-needed staff
these new positions. As described above, local law requires that as-needed staff must compete in a
formal hiring process.
In the survey, managers indicated fluctuating, unknown or inconsistent service need or seasonal
work as the most common reasons, or criteria, for using as-needed staff. Managers also mentioned
jobs with limited daily hours, filling vacancies, conducting limited or new assignments, or providing
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%
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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 working primarily in
the summer months.
Library Pages re-shelving
materials and maintaining stacks
4-5 hours per 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
these hours for as-needed positions, based on the criteria shown in 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 summer and school
vacations; and at two parks after school, on weekends and during school vacations. These require a
number of employees, (up to eight as-needed at each site) to coach, monitor activities, and conduct
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programs, but only for two to three hours a day during the school year. Similarly, Library
operations entail morning and evening program 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 assists with Cemetery work based on need for
services and availability of plots. Also, the majority of Library temporary 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 received 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 expectations grew and existing staff was no longer 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 restrooms, 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. For 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 allows 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.
Council 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 provides flexible positions
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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 flexible 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, many 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, these 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
average 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 converting
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
employment 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 Hrs. FTE Net Cost
General Fund 15,496 7.5 $0.3M
Other Funds 39,463 18.2 $0.7M
Total 54,959 25.7 $1.0M
The table below shows these conversions by fund and title.
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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 Coordinator2 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 Coordinator3 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 Operator4 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.
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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 categories, 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 Coord. 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 15 6 4 7
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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 43 contracted services, with a
total annual contract cost of approximately $24 million. The services represented by these
contracts fall into three main categories: general services, specialized repair and maintenance, and
specialized services, which includes 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 43 $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 where 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 contractual 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 specification compliance, complaints/complaint
resolutions, project schedules compliance, monthly 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
Contracted staff is protected in a number of ways, ranging from higher compensation to continued
employment despite changes in contract firms. To begin with, most 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 earlier, this 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
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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 city 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 itself 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 contractors comply with paid sick leave requirements of the Healthy
Workplaces, Healthy Families Act of 2014 beginning on July 1, 2015. To provide a complete
analysis, the total contract costs in this study include the estimated costs associated with this law,
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. The 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 locations. Additionally, the 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.
Cost of Services if Provided with Permanent Staff. Responding to Council’s direction to study the
potential of bringing contracted services in-house, staff 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,
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facility/space, supplies, 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 43 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 $29.4 million,
for a net year one cost of $69.4 million. The $98.8 million includes $59.9 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. The net year-one cost represents 12
percent of the City’s overall budget, over 100 percent of the City’s contingency reserves, and more
than six City departments’ combined 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 $5.4M $29.4M $59.9M $38.9M5 $98.8M $69.4M $30.5M
5 Does not include construction cost of a transfer station, estimated at $10M.
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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 the projected increase in staffing, a total of 371.7 FTE
(773,136 hours) representing a 19 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%
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Applying Criteria to 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, these 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 Services; 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 department.
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 City facilities or cannot be leased.
Solid waste processing and hauling
services; the City does not have a
transfer station facility. Transit bus
body painting and repair; this 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 or
maximize use of the equipment.
Waste Processing and Handling,
Tree trimming, Police Vehicle
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 quality of the service, employee fairness and
protection, and cost effectiveness 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
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70% of the total. Staff has prepared a detailed explanation 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
supervisors) 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 schedule. 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 staff (the 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 specifications 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 the 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 of 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 this service correctly protects the community, properties, and the City’s
urban forest.
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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 or 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 conditions 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 dedicated 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 eliminate
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 construction 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 3,000 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. Staff believes
that converting all contracts in-house would require the 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
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square feet of space for staff offices and lockers, equipment storage, and vehicles, including 43,000
square feet for landscape, custodial, and tree trimming 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 $11.8 million6.
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 quantifies 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, as 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 Fund.
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.
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Recommended Contractual Services to be converted to In-House Services
Type/ Fund / Service
Contract
Cost7
In-house
Cost8
Rec.
FTE
Year 1
Net Cost
Ongoing
Net Cost
CONTRACTS > $100,0000
General Fund
HVAC Installations and Repairs9 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 Inspection10 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 heating, 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 HVAC contractor services of approximately $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 services over $100,000 that were reviewed as part of this study, as part of
ongoing contract and service review, staff recommends converting three additional contracts to in-
7 Includes contract management and estimated health care costs. 8 Includes staff and equipment. Higher one-time costs compared to ongoing 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.
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house services. These are areas where staff has identified existing 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
service 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. Net cost would be $170,491.
• Plan check & tree protection inspection services 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 provided 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 equipment
costs. Net cost would be $77,255.
Of the remaining contracts, the 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 workforce flexibility. Table 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
(16) 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 would also impact the contracted workers associated with the City’s
current vendors for these services.
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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
If implemented at one time, these changes would 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 positions 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 Meeting, continuing to
the January 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 Policy for Hiring 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 would at this
time be able to review the recommended changes along with other needs and requests, and
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with the City’s updated financial picture. Implementing these changes would 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 certification requirements by the employee. For
this reason, staff 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 report.
Phase III:
June 2015-June 2017: Biennial Budget. Staff recommends a two-year implementation schedule
for the remaining as-needed conversions and all recommended contract 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: Contractor 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: Contractual Services Summary and Conversion Factors
3.B.a
Packet Pg. 60 Attachment: Policy for Hiring Contracted or As-needed Staff for Non-Professional Services (4700 : Award Bid for Welding and Fabrication
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.
3.B.a
Packet Pg. 61 Attachment: Policy for Hiring Contracted or As-needed Staff for Non-Professional Services (4700 : Award
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.
3.B.a
Packet Pg. 62 Attachment: Policy for Hiring Contracted or As-needed Staff for Non-Professional Services (4700 : Award
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 3.B.a
Packet Pg. 63 Attachment: Policy for Hiring Contracted or As-needed Staff for Non-Professional Services (4700 : Award Bid for Welding and Fabrication
Attachment C
Contractual Services Study
Space Needs and Cost Considerations
Based on the space requirements identified by the various City departments with contractual
services, the City would need approximately 90,332 square feet of additional space 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. 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. As a result, the conversion of
contracted services to in-house services would require the 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 building and amenities which are factored into the
asking price per square feet. Additional considerations include inventory of comparable properties,
number of parking spaces onsite, supply of available leasable square 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. The City’s space costs, consequently, would
be contingent on which buildings are ultimately leased and at 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 improvement 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 various needs of the user groups.
In summary, to 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
3.B.a
Packet Pg. 64 Attachment: Policy for Hiring Contracted or As-needed Staff for Non-Professional Services (4700 : Award Bid for Welding and Fabrication
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 for landscape, custodial services, and tree trimming vehicles (47,332 square feet). Staff anticipates the
remaining space (43,000) requiring little to no improvements.
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Packet Pg. 65 Attachment: Policy for Hiring Contracted or As-needed Staff for Non-Professional Services (4700 : Award Bid for Welding and Fabrication
ATTACHMENT D
1
POLICY FOR HIRING 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 costs 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 contracted 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 contractor to in-house
performance of the service, staff will include indirect, direct and contract administration costs.
If the criteria and findings of the review suggest that the public would benefit 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 generally 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 equipment or other
capital investment and maintenance, for which a private contractor could better amortize
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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 the 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
opportunity 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. Unbudgeted Additional Service: Staff is responding to a new, unbudgeted community
request for additional service.
3.B.a
Packet Pg. 67 Attachment: Policy for Hiring Contracted or As-needed Staff for Non-Professional Services (4700 : Award Bid for Welding and Fabrication
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 1,343,476 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 Wellfield 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 Maintenance 150,000
3.B.a
Packet Pg. 68 Attachment: Policy for Hiring Contracted or As-needed Staff for Non-Professional Services (4700 : Award
ATTACHMENT E
CONTRACTUAL SERVICES: CRITERIA MET
Service Annual Amount1
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 $23,883,319 25 - 14 23 19 3 14
1 Includes cost of contract, without contract management costs or future healthcare costs.
3.B.a
Packet Pg. 69 Attachment: Policy for Hiring Contracted or As-needed Staff for Non-Professional Services (4700 : Award
Attachment F
1
Analysis of 8 Largest Contracts
This section contains detail for the City’s largest dollar value contracts, and explains staff’s analysis
and decision making process for contracting these services, with reference to specific criteria.
Parking Services
Central Parking Services manages the City’s 42 parking facilities. The contractor hires and schedules
personnel, provides and launders employee uniforms, manages administrative operations,
maintains parking equipment cleans and stripes parking lots and structures, collects revenue and
provides security. The contractor also hires employees on an as-needed basis and pulls existing
employees from other areas around Southern California as necessary to manage workload needs.
Central Parking staff is unionized.
Contract In-House New FTE
Hours 183,444 hrs. 205,920 hrs. 99.0 FTE
COSTS ($ 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 $6.8M $13.2M $6.4M
Total Ongoing $6.8M $13.0M $6.2M
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
number 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 would provide the
minimum 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, the City
would not be able to sufficiently staff large events without using contracted services; these
would require contracted staff for each instance, at approximately $25,000 annually.
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Specialized/technical expertise
• The parking staff is required to know basic elevator resets in the event the elevators get stuck.
Staff also needs to know low level equipment repair and maintenance and traffic direction.
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Solid Waste Transfer and Hauling Services
In 2008, the City contracted with a private company to provide transfer and hauling services of the
City’s mixed waste, green waste, food waste, construction and demolition debris, street sweeping
and other materials to approved disposal facilities because the City facility had reached its capacity.
The existing facility didn’t meet regulatory requirements associated with a facility transferring solid
waste.
Contract In-House New FTE
Hours n/a1 20,800 hrs. 10.0 FTE
Space 8,000 ft2
COSTS ($ 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 $2.8M $5.8M $3.0M
Ongoing $2.8M $3.1M $0.3M
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 an
ongoing approximately $1.2 million annual debt service charge over 15 years.
1 This contract is based on tons processed versus hours, so a comparison is not applicable. Staff estimates
requiring 10.0 FTE to perform the services currently covered under the contract.
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Tree Care and Maintenance
The service contract is for the maintenance of the City’s more than 33,000 public trees. Services
include tree pruning for tree health, traffic clearance and pedestrian safety, and community
aesthetics, tree removal and replacement for trees that pose a risk to public safety, and
management of the electronic tree inventory. Tree trimming is important for community safety,
and for the health and safety of the City’s urban forest. Tree trimming was previously provided
with in-house staff. However, this service was gradually transitioned to a contract through attrition.
The City still retains 2.0 FTE tree trimming staff in-house to carry out issues of immediate need and
concern such as sight distance, small tree pruning, and resident requests and inquiries.
Contract In-House New FTE
Hours 42,848 hrs. 49,920 hrs. 24.0 FTE
Space 16,300 ft2
COSTS ($ 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 $2.4M $8.7M $6.3M
Ongoing $2.4M $5.9M $3.5M
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 $800,000 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 loss 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 to mitigate the City’s exposure.
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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 purchased 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 of $2.5 million. With
all costs accounted for, staff estimates the net first year net cost at $6.3 million in year one, and
$3.5 million ongoing.
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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.). Basic/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 $1.7 million annually for this service, which includes
about 62,000 hours of staff work per year. The City has contracted out landscape services for more
than 20 years. However, the City retains 44.0 FTE in-house staff to provide landscape maintenance
services at 24 City parks including amenity repairs to benches, playground equipment, fencing,
tables, drinking fountains, sports fields, bleachers as well as repairs to irrigation main lines, laterals,
valves, and clocks. Services are coordinated with park staff to cause minimal disruption to park
programs and the public.
Contract In-House New FTE
Hours 61,984 hrs. 72,800 hrs. 35 FTE
Space 18,200 ft2
COSTS ($ 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 $2.3M $6.0M $3.7M
Ongoing $2.3M $5.2M $2.9M
Landscape services primarily meet the following criteria for contracting out:
Capital/Equipment Requirements
• Providing all landscape maintenance services in-house would require purchasing and
maintaining 20 vehicles and 31 specific equipment types. The first 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 approximately $1.1 million per year.
Workforce Flexibility
• To provide this work in-house, the City would need to hire an estimated 35.0 FTE, including new
supervisors, to comply with the City’s maintenance schedule at 350 locations.
• Contract staff 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
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with this indirect costs for administrative overhead associated with new staffing. The cost to bring
the contract in is a net $3.7 million one-time and $2.9 million ongoing cost.
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Parking Citations and Residential Parking Permits Processing
The City has employed contractors for parking citation services since 2003, and added permit
processing in 2010. Services include payment processing, scheduling of hearings, customer service,
collection of delinquent accounts, and other related services. Prompt citation processing and
handling leads to revenue for the city, and to short response times for contested tickets; and permit
processing leads to community members having faster access to necessary permits.
Contract In-House New FTE
Hours 24,960 hrs. 31,200 hrs. 15.0 FTE
Space 2,500 ft2
COSTS ($ 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 $2.0M $3.5M $1.5M
Ongoing $2.0M $2.1M $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 prone 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 structured 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 highly 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
locations 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 maintenance expenses of approximately $50,000.
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Space Requirements
• An additional 15 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.
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Parking Meter Installation and Monitoring
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 all 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 service 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/Technical expertise
• Contractor staff has specific knowledge of the parking meter technology and associated
software maintenance.
The City would not be able to fully bring this service in house, since part of the contract is related to
maintaining 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 investment for meter and software purchase and installation, and an
additional $0.7 million ongoing for meter and software depreciation and maintenance costs. This
does not include the cost of developing and maintaining expertise in this software, which is not a
core service of the City.
Due to the proprietary nature of this contract, a comparison of costs is not relevant.
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Custodial Services
The City has historically provided custodial services for City-owned and City-leased locations with a
combination of contracted and in-house employees. This combination maximizes City resources
dedicated to custodial work, maintains City properties at a high level, and ensures uninterrupted
service at all hours. The City currently contracts with six vendors to provide custodial services at
the Santa Monica Pier, the Public Safety Facility, and City offices at various locations – areas with
seasonal demands and leased office spaces. The City maintains park restrooms, community
centers, libraries, City Hall, the Annenberg Beach House, and the Santa Monica Pier with 59.0 FTE
in-house staff, and employs as-needed staff for beach restroom cleaning at the Santa Monica State
Beach.
Services include regular daily and monthly services, and quarterly specialty services, such as carpet
cleaning, window cleaning and stripping and sealing composition floors. For health and safety
reasons, custodial services must be continuous and are a high City priority, and contractors
maintain City facilities in excellent condition. The contractor has strong incentives to perform well
related to industry competition and the need to win a subsequent bid, and staffing flexibility makes
this high level of service dependable.
Contract In-House New FTE
Hours 40,779 hrs. 60,320 hrs. 29.0 FTE
Space 11,660 ft2
COSTS ($ 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 $1.8M $4.5M $2.7M
Ongoing $1.8M $3.6M $1.8M
Custodial Services primarily meets the following criteria for contracting out the service:
Capital/Equipment Requirements
• Providing all custodial services in-house would 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 additional 510 sq. ft. would be
required for materials storage and employee break room/locker space, at an estimated $30,600
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per year. In addition, staff estimates a one-time $0.7 million cost for tenant improvements
related to all space acquisitions.
Workforce Flexibility
• Various work sites, like the Santa Monica Pier restrooms, have seasonal demands that require
flexible staffing.
• Staff must be available to perform services at 13 locations at one time. The City would need to
hire additional staff to be present at multiple locations, and also manage a variety of hours to
avoid impacting operations.
• Staff absences for vacation or sick leave would require additional and duplicative hours in
overtime or as-needed hours to provide service effectively. During staff leave, daily services
such as trash pickup and restroom cleaning are not performed unless staff is pulled from other
areas, resulting in deferral of weekly tasks. The additional coverage would require a 48%
increase in hours over what is currently contracted —the equivalent of 9.4 FTE.
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Police Vehicle Up-fitting Services
As a part of the City’s equipment replacement program, staff anticipates replacing 60 Police
Department vehicles per year that would require up-fitting services. New vehicles must be
equipped with emergency lighting/warning equipment, police radio, prisoner transport systems,
and mobile computers and camera systems. Up-fitting services are required on a continuous basis,
as older vehicles reach the end of their service life.
Contract In-House New FTE
Hours 2,714 hrs. 6240 hrs. 3.0 FTE
Space 3,000 ft2
COSTS ($ 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 $0.9M $2.1M $1.2M
Ongoing $0.9M $1.3M $0.4M
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
specifications by a certified technician. City staff 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 training 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 $484,000 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.
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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-HOUSETOTAL W/ INDIRECTTOTAL 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 COSTSACA / Sick Leave OTHER ONGOING TOTAL ONGOING EQUIPMENT ONE-TIME SPACE ONE-TIME (TI)OTHER ONE-TIME
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ATTACHMENT G CITY OF SANTA MONICA CONTRACTUAL SERVICES COST SUMMARY
SERVICE CONTRACTOR # of Contract HRs
ADDL COST / -SAVINGS w IN-HOUSETOTAL W/ INDIRECTTOTAL 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 COSTSACA / 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
3.B.a
Packet Pg. 84 Attachment: Policy for Hiring Contracted or As-needed Staff for Non-Professional Services (4700 :
3.B.c
Packet Pg. 85 Attachment: Weldworx Oaks 2021 (4700 : Award Bid for Welding and Fabrication Services)