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
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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
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I� if Pear 9t/Human Resources Date
Sill aritJal by-11, 4C_T.1 Group Revirion 3113114
.� Page 2
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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: