Title
AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH KELLY SERVICES, INC.
Staff Contact: Tom Duensing, Director, Finance and Technology
end
Purpose and Recommended Action
Recommendation
This is a request for the City Council to authorize the City Manager to enter into a linking agreement with Kelly Services, Inc. for Citywide temporary staffing services through March 28, 2016; authorize the City Manager or designee to renew the agreement at their discretion, upon consent of both parties, for an additional two years through March 28, 2018 in an amount not to exceed $200,000 per year.
body
Background
On March 25, 2013, the State of Arizona entered into a contract, ADSPO13-043962, with Kelly Services, Inc. for temporary staffing services. The contract is available for use by all state agencies, boards, commissions, and eligible political subdivisions including the City of Glendale. Purchases can be made by governmental entities from the date of award, which was March 25, 2013, until the date the contract expires, as amended, on April 1, 2016. The request is to also allow the City Manager or designee the authorization to renew the term of the agreement for an additional two, one-year periods until the cooperative purchasing agreement expires on March 25, 2018.
Kelly Services, Inc. provides temporary staffing services in various job functions such as accounting, call center, administrative and clerical, data entry, and other areas of specialized expertise.
Analysis
Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale's procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.
City departments use temporary staffing agencies when seeking qualified temporary staff to fill vacancies caused by staff turnover or to complete special projects. The use of temporary staff is unique to each department and varies depending on need. The length of the assignment can vary from one week to several months. Kelly Services, Inc. has been providing temporary employees for several departments of the city using this agreement and the accumulated usage is now expected to exceed the $50,000 limit which requires Council approval. Therefore, staff is requesting approval of this item to establish the linking agreement, ratify the expenditures to date, and approve the expected level of expenditures for future years.
This action will allow the City Manager to approve the linking agreement retroactively from March 3, 2015 until April 1, 2016 with the option to extend the agreement in one-year increments until March 25, 2018. The action will also allow the city to expend up to $200,000 each year for the initial term and any subsequent extensions until March 28, 2018, subject to the need for services and available budget appropriation.
Budget and Financial Impacts
The hourly rate the city pays for temporary staffing is established by the state contract price in Exhibit C of this agreement. The hourly rate varies by job function and skill level. The funding is available in the FY14/15 operating budget. Expenditures in subsequent years will be dependent on available appropriation.
Cost |
Fund-Department-Account |
$20,000 |
1000-11360-518200, Professional & Contractual |
$20,000 |
1140-84700-518200, Professional & Contractual |
$50,000 |
1320-31028-518200, Professional & Contractual |
$40,000 |
1660-16540-518200, Professional & Contractual |
$43,000 |
1820-32056-518200, Professional & Contractual |
$15,000 |
1820-32060-518200, Professional & Contractual |
$10,000 |
1000-11320-518200, Professional & Contractual |
$2,000 |
2360-17180-518200, Professional & Contractual |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?