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HomeMy WebLinkAboutItem No. 05 AppleOne and Manpower Agreements for Temp Staffing ServicesCity Council Agenda Report City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 17-961 Agenda Date: 1/22/2019 Status: PassedVersion: 1 File Type: ReportIn Control: City Council / Successor Agency Agenda Number: 5) Contracts - AppleOne and Manpower for Temporary Staffing Services Authorize the City Manager to execute and implement contracts and any Amendments with AppleOne and Manpower to provide limited-term temporary staffing services in final form as approved by the City Attorney. Temporary services provided by Manpower and AppleOne will not to exceed $700,000.00 for the period of July 1, 2018 through June 30, 2022. Page 1 City of Lake Elsinore Printed on 5/9/2023 REPORT TO CITY COUNCIL To:Honorable Mayor and Members of the CityCouncil From:Grant Yates, CityManager Preparedby:Jennifer Avina, Human Resources AnalystDate:January 22,2019 Subject:Contracts –AppleOne and Manpower for Temporary Staffing Services Recommendations: Authorize the City Manager to execute and implement contracts and any Amendments with AppleOne and Manpower, to provide limited-term temporary staffing servicesin final form as approved by the City Attorney. Temporary services provided by AppleOne and Manpower will not exceed $700,000.00for the period of July 1, 2018 through June 30, 2022. Background The Human Resources Department has researched and interviewed the selected 2vendors with the objective of awarding contracts to more than one vendor. It is necessary to select several vendors based on services provided, technical level, and experience andvendor permission to perform certain tasks. Discussion The Human Resources Department conducts recruitments and maintains employment lists of qualified individuals for career and temporary positions. It is the goal of the City to fill temporary positions from employment lists maintained in the Human Resources Department. At times, a City Department may require additional administrative, clerical, technical, or professional temporary staff to augment its existing resources to deliver services and provideadministrative support. If there are no available candidates from the employment lists, City Departments may use a temporary staffing agencyto obtain limited-term temporary staff. There has been an average of three to four limited-term temporary positions filled by temporary staffing agencies each year during the last four years. Departments that have been primary users of temporary staffing services include: Public Works, Community Development, and Community Services. The Human Resources Department evaluated all vendors based on their ability to meet the City’s needs, their qualifications and experience, project approach/methodology, and cost. Contracts –AppleOneandManpower for Temporary Staffing Services January 22, 2019 Page 2 General Fund Expenditures The cost for temporary staffing services will not exceed $700,000 for the four-year term of these twocontracts. Expenditures for these services will be paid from a variety of funding sources in budgets of individual operating departments when the temporary staffing services are required. The contracts will be entered into the City’s contract management. Exhibits A –AppleOneAgreement B –ManpowerAgreement THE ACT-1 GROUP O U P Ft �t i . TEMPORARY&TE PORARY TO WIRE:. AppleOne will charge CITY of LAKE ELSINORE a mark-up over our associates'pay rates for temporary services for clerical positions. The rates represent the candidate's pay plus all applicable state and federal taxes,as well as workers'compensation and related administrative costs. r .]ob Calc9W), Bill hate ry Administrative 43%Mark-up n5 Our Bill Rate includes the following: candidate's pay rate plus payroll taxes, W-2 reporting, workers compensation and all applicable administrative costs. Once our Associate has completed 720 hours, you are free to hire the candidate on your payroll at no additional charge. If you should decide to hire the employee on or before completing 720 hours, n AppleOne will credit CITY of LAKE ELSINORE for the hours the employee completed on a temporary basis and credit 9 that amount against the original direct hire fee. The bill rates provided herein were developed based on AppleOne's current account management, recivitirrg, overhead and general administrative expenses, statutory taxes and other mandatory costs as or the date of this Proposal. The parties agree that, upon Appfeone's written notice to the Client, any statutory or other government-mandated cost or expense that is imposed or increased during the term or performance of services under this Agrecriwnt will be passed through to the Client by Appleane or;the Clients invoices; at cost(I.e., without additional markup). These Imposed and/or increased costs may include but are not limped to.' Workers'Compensation Insurance, State Unemployment insurance,as well as mandatory employee health care or sink leave benerits(Including costs related to the Affordable Care Act). s AppleOne Temporary Associates are not permitted to handle cash,securities rx other sensitive documents(with the exception of placements ,made by our Accounting Dlvlslon whereas a Fiduciary Background Clieck will be required for placed ca c# ates). We also do not Permit our ass-ocyates to operate rnotorized vehicles, tadudlIV client-owned vehicies, tor-compariy purposes Additionally, our temporary associate,must W � work at the job site of the original assignment.Any changes must be approved by an aulhorizedAppleOne representative. Our commitment to find, understand and fulfill the needs of another has allowed AppleOne to effectively place temporary associates for over forty-nine years, creating a successful partnership between both our client'companies and our temporary associates. DEDICATED i Karen DiDominic, an experienced staffing professional from our AppleOne,Temecula office has been se1ccted to manage the partnership with CITY of LAKE ELSINORE, and will be responsible for establishing consistent guidelines, maintaining effective rt ' yy communication, and providing comprehensive usage reporting capabilities. Karen will tour your facility to fully comprehend the culture and environment at CnT OF j LAKE ELSINORE, Lhus, enabling our office to recruit, screen, evaluate, and qualify candidates who possess the tangible and intangible skills required to be productive at ,f your cOrnpany. Karen will be available to CITE OF LAKE ELSINORE 24 hours a day, seven � 7 days a week by calling either the branch during our normal business hours Of 7:30 AM to ?� 5:30 PM Monday through Friday or by answering service. We look forward to continuing to develop our partnership with you and CITY of LAKE ELSINORE. If you have any questions or if I " c•si i IaI of immediate assistance please do not hesitate to call. r:ir r�crr�l I i 0171inic Lisa Dana - 't Senior Branch Manager "..� Senior Arc ut3t Ma ,�:(:r 9 t.C:t I 0��2 0 I� if Pear 9t/Human Resources Date Sill aritJal by-11, 4C_T.1 Group Revirion 3113114 .� Page 2 ,r - Manpower & City of Lake Elsinore Page 1 of 3 RATE & SERVICE CONFIRMATION LETTER January 14th,2019 Ms Jennifer Avina, Human Resources Analyst City of Lake Elsinore 130 South Main Street, Lake Elsinore, CA 92530 Email: javina@lake-elsinore.org Dear Jennifer, Thank you for choosing Manpower, the leader in the changing world of work. This letter confirms our agreement with City of Lake Elsinore,“the Customer”, to place one or more employees described below at the prices set forth below. Manpower Services:Manpower will recruit, interview, screen and assign to Customer our employees who, through our proven process and expertise, are the best qualified candidate to perform the work described below. Manpower will maintain personnel and payroll records; paying, withholding and transmitting payroll taxes; making unemployment compensation contributions; handling unemployment and workers’ compensation claims involving our employees with respect to the compensation that Manpower has agreed to pay; and removing any assigned employee at your request, provided there is a valid legal reason for doing so.Customer also agrees to only request testing equivalent to what they would require of their own full-time employees in that respective position. Customer Responsibilities:Manpower expects Customer will take responsibility for supervising and controlling the work performed by our employees. Customer will also provide all employees with a safe worksite and will provide information, training and safety equipment with respect to any hazardous substances or conditions to which employees may be exposed at the worksite, whether or not required by law. Without limiting the generality of the foregoing, because Customer controls the facilities in which employees work, it is agreed that Customer is primarily responsible for compliance with the Occupational Safety and Health Act and comparable state laws and regulations there under, to the extent those laws apply to employees working at Customer’s facilities. Manpower will, at the request of Customer, instruct its employees on general safety matters in accordance with information provided to Manpower by Customer. Additionally, Customer agrees to provide all our employees with a worksite environment free of harassment. In the event there are substantial changes to the agreed assignment duties, the Customer is required to notify Manpower immediately. Customer also agrees to document all hours worked, approve and submit timesheets to Manpower in a timely manner. Manpower, as the common law employer, has the right to physically inspect the work site and work processes; to review and address, unilaterally or in coordination with Customer, Assigned Employee work performance issues; and to enforce Manpower’s employment policies relating to Assigned Employee conduct at the worksite. Payment terms:Manpower is solely responsible for the compensation of our employees and must pay each employee for all hours worked. Customer agrees to remit the negotiated Bill Rate for all hours worked, including California overtime bill rates for hours worked in excess of 8 hours in a workday or hours exceeding forty (40) hours during the weekly pay period. Manpower invoices Customer weekly.Payment will be due upon receipt of invoice. The Manpower bill rate includes all deductions required by state and federal legislation, including employer's contributions for FICA taxes, providing Unemployment and Workers' Compensation, liability insurance and fidelity bonding, as well as all other deductions and benefits paid to our temporary employees. Additionally, we cover all administrative charges related to payroll, including preparation of W-2 forms at the end of the year. Our price is based upon weekly invoicing with method of payment in the form of check, bank transfer, or Electronic Data Interchange. Alternate payment methods may impact price and require mutual agreement. In the event there is a governmental mandated requirement (federal, state, or local law such as FICA, FUTA, Workers’ Compensation, and State Unemployment Tax)to increase wages or employer payroll burdens, Customer agrees to accept and remit additional costs to Manpower from the effective date to the expiration date of this agreement. Manpower & City of Lake Elsinore Page 2 of 3 Term:The term of this agreement will be three years from the signature date of this agreement. 1.JOB DESCRIPTIONS*and RATES: Service Delivery Fee Schedule Admin (Clerical & Admin roles)50%Mark Up Light Industrial (Public Works, General Labor, Groundskeepers)50% Mark Up Professional (Engineering, Finance & Accounting, HR, IT)TBD based Case by Case Basis *If the parties decide to change information contained within this letter, for example, adding or deleting jobs, they must notify the Manpower office in writing reflecting the intended change. Manpower reserves the right not to provide an Assigned Employee or candidate for any reason. Manpower will only bill for sick time accrued while employee is on assignment. 2.ADDITIONAL BACKGROUND CHECKS AND TESTING: All Manpower employees complete an I9, are processed through E-Verify, and have their employment background verified and screened. Manpower processes thousands of background and drug screenings on behalf of our Customers every year. As such, we have negotiated the most competitive rates possible. Manpower will cover the cost of our Standard drug and background screenings –any client specific requirements above our standard screenings will be billed back to client. 3.CONVERSION FEES: TEMPORARY STAFFING: NO FEE FOR HIRING: It is Manpower’s policy not to charge a fee for employees hired by Customer, after our employees have been on assignment for 520 hours. If Customer desires to hire a Manpower employee before 520 hours the conversion fee will be prorated based on hours completed. The conversion is calculated by the hours remaining times the difference between the pay rate and the bill rate. Bill Rate –Pay Rate x hours remaining = Conversion Fee Example: Bill Rate $14 -Pay Rate $10 x 300 hours = $1,200 Conversion Fee PERMANENT PLACEMENT FEE: Permanent Placement Fees: Customer agrees to pay a fee if Customer hires or retains a candidate, in any capacity, referred by Manpower within one (1) year after that candidate was presented to Customer, regardless of whether Customer learned of or could have learned of the candidate through other means. As follows is the fee payable, which is a fixed percentage of Compensation* paid by Customer: *Compensation includes base gross salary, gross compensation for services, fees,and wages,excluding anticipated bonus and commission earnings, to be made to the candidate during the first twelve (12) months of employment. 4.TEMPORARY STAFFING GUARANTEE: Manpower will guarantee the services of each employee. If for any reason the Customer is not satisfied with an employee, Manpower will replace that employee at no charge, provided Manpower is notified within the first eight (8) hours of that employee’s start of an assignment. Annualized Compensation Fee Percentage All Direct Hire positions 18% Manpower & City of Lake Elsinore Page 3 of 3 5.ACA INDEMNIFICATION:Manpower shall be solely responsible for, and shall reimburse, indemnify, and hold harmless Customer (hereafter collectively referred to as “Customer Indemnity”) for, any taxes, penalties, or other liabilities assessed against Manpower or Customer under Code §4980H with respect to Manpower Assigned Employees due to Manpower’s failure to: (i) Offer “minimum essential coverage” within the meaning of Internal Revenue Code (the “Code”) §5000A(f)(1)(B) under an “eligible employer-sponsored plan” each within the meaning of Code §5000A(f)(2); or (ii) Offer coverage that is not “affordable” or fails to provide “minimum value,” each within the meaning of Code §36B(c)(2)(C) and related regulations, including regulations under Code §4980H. Effective Jan. 5th, 2015, all Manpower invoices will include a 1.28% surcharge for healthcare benefits for associates as a response to the recent Affordable Care Act legislation. Provided, however, that in no event shall the customer Indemnity extend to any taxes, penalties, or other liabilities under the under Code §4980H where such tax, penalty, or other liability results from the imposition of assessable payments against the customer under Code §4980H(a) or Code §4980H(b) with respect to the customer’s employees. Once again, thank you Jennifer,for your business. Please let me know if you have any questions. We look forward to working with you! Kind regards and thanks, Caroline Hunt Branch Manager, Manpower Office:951-308-2686, Cell: 951-491-4428 39885 Alta Murrieta Drive, Ste D1, Murrieta, CA 92563 ACKNOWLEDGED AND ACCEPTED: City of Lake Elsinore By: Printed Name/Title: Date: