AUTHORIZATION TO ENTER INTO AMENDMENT NO. 2 TO THE AGREEMENT WITH STAFFING SPECIALISTS NV, LLC, FOR TEMPORARY WORKERS FOR RECYCLING FACILITY, LANDFILL AND PUBLIC WORKS AND RATIFICATION OF EXPENDITURES
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into Amendment No. 2 to the Agreement for Temporary Workers for Recycling Facility, Landfill and Public Works with Staffing Specialists NV, LLC, Contract No. C-10230, for an increase in the compensation in the amount of $4,540,180 to a not to exceed amount of $5,886,980 for the full term of the Agreement for temporary staffing services, ratification of expenditures in the approximate amount of $538,000 for services rendered through June 30, 2017; and authorizing the City Manager to renew the contract, at the City Manager’s discretion, for three additional years in one-year increments. The current term of the Agreement is effective through August 28, 2017 and includes three remaining optional one-year renewals, allowing the Agreement to be extended through August 28, 2020.ody
Background
On August 25, 2015, Council authorized the entering into of two Agreements for temporary employment services to support the Public Works Department: Contract No. 10229 with JG Staffing, Inc. in an amount not to exceed $4,375,765 over the full five-year term of the Agreement, and Contract No. C-10230 with Staffing Specialists NV, LLC in an amount not to exceed $1,346,800 over the full five-year term of the Agreement. JG Staffing, Inc. was awarded the larger of the two Agreements to provide daily services to sort and process recycling materials at the Materials Recycling Facility, whereas Staffing Specialists NV, LLC would be used as needed to support the Landfill and Solid Waste Management.
In August 2016, the city entered into Amendment No. 1 with both vendors, extending the terms through August 28, 2017.
In March 2017, the city and JG Staffing, Inc. agreed to mutually terminate Contract No. C-10229. Public Works staff requested that Staffing Specialist NV, LLC agree to amend Contract No. C-10230 to include the daily support at the recycling facility.
Analysis
The initial agreement with Staffing Specialists NV, LLC, was for staffing services to provide temporary workers needed at various Public Works Departments. The three primary positions included mechanics, CDL drivers, and accounting personnel.
This request is to increase the compensation to include the cost of the addition of temporary workers to include line sorters, line leads, forklift operators, general labors and groundskeepers to replace the terminated agreement, and to include annual increases in the minimum wage per Arizona Revised Statute §23-363 that were not anticipated in the original Agreement.
Public Works staff estimate the value of work performed from the termination of Contract No. C-10229 with JG Staffing, Inc., through ratification of Amendment No. 2 to Contract No. C-10239 with Staffing Specialists NV, LLC, to be at $538,000.
Previous Related Council Action
On August 25, 2015, Council authorized entering into an Agreement, C-10229, with JG Staffing, Inc. for temporary staffing services.
On August 25, 2015, Council authorized entering into an Agreement, C-10230, with Staffing Specialist NV, LLC, for temporary staffing services.
Community Benefit/Public Involvement
This Amendment will ensure uninterrupted operation of the city’s Material Recycling Facility.
Budget and Financial Impacts
Funding for the ratification was available in the Fiscal Year 2016-17 Public Works Operating and Maintenance budgets. The increase in expenditures with Staffing Specialists NV, LLC, is $4,540,180 for a total not to exceed amount of $5,886,980 over the full term of the Agreement, contingent upon Council Budget approval.
|
Cost |
Fund-Department-Account |
|
$4,540,180 |
Various Public Works Divisions |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?