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Home My WebLink About20 EMPLOYMENT SYS AG 04-01-96DA___ NO. 20 4-1-96 -/n t e r-C 0 m DATE: APRIL 1, 1996 TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER CHRISTINE A. SHINGLETON, ASSISTANT CITY MANAGER AUTHORIZATION TO ENTER INTO AN AGREEMENT WITH EMPLOYMENT SYSTEMS, INC. Recommendation: It is recommended that the City Council: 1) Certify by minute motion that the use of Employment Systems, Inc., is consistent with the City's purchasing ordinance and would not require formal bidding procedures and that a bid process for the proposed services would be impractical and unsuitable; 2) Authorize the Assistant City Manager to negotiate and enter into an agreement with Employment Systems, Inc., to provide contract staffing services for grant-related tasks to the City of Tustin, subject to review and approval by the City Attorney. Fiscal Impact: Proposed services would not be expected to exceed funding provided through Department of Defense Office of Economic Adjustment grants. Background: The City of Tustin was notified .in 1995 that the Department of Defense Office of Economic Adjustment (OEA) had approved a grant to the City of Tustin in the amount of $397,043 for additional planning-related activities pertaining to the closure of MCAS, Tustin. One of the specific uses of grant funds that was approved was the provision of additional interim staff support for MCAS, Tustin-related planning efforts. The City's request for support was approved in the amount of $77,343 with the understanding that OEA would review eligible future needs for a possible 12-month extension in the future. The remaining tasks needed to coordinate completion of the Reuse Plan, negotiate caretaker or service contracts with the Navy, manage development of a Business and Development Plan, and preparation of any potential Economic Conveyance application for the base will result in a significant increase in current City staff responsibilities and time commitments. Additional planning assistance is neceSsary for caretaking, roadway and infrastructure planning management, economic development program planning, contract administration, etc. The City of Tustin does not believe that current or anticipated staffing levels will be sufficient to ensure the rapid economic conversion and job creation possible in the Orange County market. A list of the anticipated scope of work and tasks needed for additional support of our reuse planning efforts is shown in Attachment A. City Council Report April 1, 1996 Page 2 Hiring of a regular employee for the anticipated scope of work is not practical given the fact that the additional staff support would be only necessitated for a limited time period and there is a specific time frame and dollar limit to available grant funds. There would also be significant costs and liability in hiring a permanent employee with all City benefits for a limited time frame. The federal government would also like to see a competitive process for any use of grant funds. Rather than hiring a new permanent City employee, staff has explored a number of options for contracting for services for the needed position. Unfortunately, many firms will provide staff support but at a significantly higher cost than what the City's cost would be. Employment Systems, Inc. (ESI), is a California-based corporation established in 1992 to provide public agencies with privatized staffing services. They are unique in their field in providing staff leasing costs to public agencies at costs lower than the cost of a public agency hiring an employee. A sample comparison of the Cost savings to the City of utilizing ESI is shown below. Based on the example shown, utilization of ESI will permit staff support for almost an additional month. A COMPARISON OF STAFFING COSTS Monthly Cost Estimated Monthly Cost of a City Employee With Benefits $4,3OO $5,461 Estimated ESI Annual Cost With Benefits $5,185 Included in ESl's package to a leased employee are Workers' Compensation premiums, both state and federal payroll taxes, an administrative fee for processing Workers' Compensation claims, payroll tax preparation and the filing of tax reports as well as benefit administration. The employee benefits program includes health insurance, dental insurance, life insurance, accidental death and dismemberment insurance, long-term disability insurance and a 401K plan. The City would choose the number of vacation, holiday and sick days it wOuld like the employee to havel VVhile provisions of Section 1625(c)(3)(i) of the CitY's Purchasing Ordinance permit the City to enter into a contract for professional services without formal bidding procedures, the Office of Economic Adjustment has asked that the City Council certify in a public meeting that the proposed use of ESI is consistent with the City of Tustin's Purchasing Ordinance and would not require a formal bidding process. In addition, a bidding process for the proposed services would be impractical and unsuitable. City staff, after a lengthy search, is not aware of any other firms providing staff leasing services to public agencies. OEA has asked the City to have ESI bring to the City a pool of candidates from which the City may make a selection through a competitive process. They have verified that this procedure and the Council's certification of compliance with its Own purchasing procedures will 'be adequate to comply with federal grant purchasing requirements. Christine A. Shing~eton ~ ATTACHMENT A SCOPE OF WORK OEA FUNDED MCAS, TUSTIN REDEVELOPMENT PROJECT PLANNER--MCAS, TUSTIN I. Example of Tasks mo g. Assist in finalizing: 1. Complfition of final Re-use plan 2. Completion if EIR/EIS 3. Adoption of final Re-use Plan Coordinate planning for implementation of Re-Use Plan with non-city agencies 1. DOD 2. Department of the Navy 3. Marine Corp 4. School Districts 5. Educational Consortium 6. County 7. Special Districts 8. Homeless Providers 9. Utilities 10. State of California C. Coordinate planning with City .Departments 1. Planning 2. Building 3. Public Works 4. Water 5. Poi icc 6. Fire 7. Community Services D. Coordinate State, Local and Homeless Conveyances 1. School District 2. County 3. Special Districts 4. Federal Agencies 5. Educational Consortium 6. Homeless Providers Page 1- Eo Coordinate development of plans for: 1. Infrastructure phasing 2. Infrastructure financing and phasing of financing 3. Development phasing 4. Disposition phasing II. F. Coordinate development of Redevelopment Project Area Go Coordinate programs to offset loss of business within community 1. Suppliers of goods and services to base 2. Retailers serving base personnel 3. Providers of off-base housing H. Coordination with other closed/closing bases I. Coordination of application(s) for Economic Development Conveyances o o Identification of job creation Development of Business Plan a. Timetable, phaging, cash flow b. Market financing feasibility c. Cost estimates for infrastructure d. Investment/financing strategies Analysis and preparation of price/terms to Feds J. Preparation and submittal of Grants o 2. 3. 4. State Defense Conversion EDA Defense Conversion CDBG Economic Development Analysis/research/application for other grants K. Assistance in administration of OEA Grants Minimum Qualifications A. Education/Experience Bachelor's degree in urban planning, economics, business or public administration or a related field and two years of increasingly responsible experience in redevelopment, community development, planning, i:eal estate acquisition and/or development, commercial and housing rehabilitation, economic development and/or closely related fields. Page 2 Be Ce Do E° Knowledge of: Principles and practices of redevelopment and economic development; real estate development and finance; California community redevelopment and Planning law and federal and state rehabilitation law, programs and regulatiOns; business retention and recruitment programs; housing development and rehabilitation programs; principles, practices and methods of pUblic administration, budgeting, purchasing, property management, financial procedures regulations; and loans pertaining to real estate, loan management and property improvements. Ability to: Understand, apply and administer existing federal, state and local laws and regulations regarding real estate, property management and redevelopment; determine appropriate methods to provide construction rehabilitation programs most effectively and efficiently; analyze and interpret development proformas, financial statements, market studies, plans, specifications and bid documents; work effectively and cooperatively with business and property owners, developers, City staff, City boards and commissions and others; write accurate and concise technical reports and memoranda; manage consultants; make effective verbal presentations; establish and maintain effective and cooperative working relationships with the public while maintaining compliance with federal, state and local laws, regulations, policies and procedures. Possession of Valid California Drivers License. Other Requirements Position depends upon continued Federal Department of Defense and/or Redevelopment ,Agency Program funding. ~ RZ:kd\mcas\projmgr.rsp Page 3