1 STAFF REPORT
DAT
E: July 12, 2022
T
O: Justin Hess, City Manager
F
ROM: Dawn Roth Lindell, General Manager, Burbank Water and Power VIA: Riad Sleiman, Assistant General Manager, Electric Services Division BY: David Hernandez, Manager Transmission and Distribution Engineering SUBJECT: Appr oval to Authorize the General Manager of Burbank Water and Power to Execute the First Amendment to the Terms and Conditions of a Temporary Services Agreement with Sincerus Solutions, Inc. for Temporary Personnel
RECOMMENDATION
Approve and a uthorize the General Manager of Burbank Water and Power, as the designee of the City Manager, to execute the first amendment to the temporary services agreement with Sincerus Solutions, Inc. to extend the term of the agreement from August 24, 2022, to August 24, 2023; to increase the total c ost of service from a not to exceed amount of $300,000, to a not to exceed amount of $8 00,000; and, to amend the hourly billing rates as described in Section 4.0 of the first amendment (Attachment 1).
BACKGROUND
Burbank Water and Power (BWP) utilizes temporary staffing to augment deficiencies in its labor resources due to position vacancies from recent retirements and movement within the organization. In addition, temporary staffing has been needed to complete additional workload due to a significant rise in customer projects, development within Burbank, and capital improvement projects.
BW
P’s electric service, customer service, and w ater divisions are currently utilizing an existing temporary services agreement (agreement) on an as-needed basis with Sincerus Solutions, Inc. (Sincerus). The e lectric services division uses this agreement for engineering and design support for the replacement and upgrading of electrical equipment in BWP’s electric al distribution system, including sub-transmission,
WATER AND
POWER
2 substations, distribution, and customer electrical services. The customer service and water divisions will use this agreement for administrative support.
DISCUSSION
BWP’s electric services division expects to use about 70-80% of the amount of the agreement. The electric services division has retained two full-time temporary employees to provide design support for substation engineering and distribution engineering work for ongoing capital work . In addition, three part-time consultant s have been retained to provide field engineering and design support for an influx of customer service and project development, such as Second Century, First St. Village, and 777 Front St.
BWP’s customer service and water divisions expect to utilize between 20-30% of the amount of the agreement. The Customer Services Division has retained one full -time temporary employee to provide field service support for electric and water services during the fiscal year 2022-2023. The Water Division is planning on hiring at least one full-time temporary employee for administrative support for their operational needs through the end of the fiscal year 2022-2023.
Prior to the fiscal year 2021-2022, the amount of BWP’s temporary services agreement with Sincerus had not exceeded $100,000. However, due to a significant rise in customer service projects, development projects, and capital improvement projects, there was a need to increase the amount of the agreement to $300,000 in the fiscal year 2021-2022.
More recently, BWP has experienced retirements and resignations in the water and electric service divisions. While BWP recruits to fill these position vacancies, staff estimates that it will need up to $ 500,000 in temporary employee services in the fiscal year 2022- 2023 to complete the increase in workload. To allow BWP to use this agreement throughout the fiscal year 2022-2023 without exceeding the amount and term of the a greement, staff recommends increasing the amount of the agreement from $300,000 to $800,000 and extending the term of the agreement to August 24, 2023.
BWP may also recruit highly experienced and specialized “ engineering consultants” through this a greement with a pay rate between $64.90 and $130 per hour. Because these “engineering consultants” have a pay rate of $64.90 or more, meeting the Internal Revenue Service definition of Highly Compensated Employees, Sincerus has agreed to lower their billing rate from 135% to 130%. To effectuate this change, Section 4.0, Hourly Billing Rates, of the agreement must be amended.
FISCAL IMPACT
This amendment will increase the not-to-exceed amount of the agreement from $300,000 to $ 800,000, effective July 1, 2022. Sufficient funding for these temporary employee services is available and budgeted under funds 496 and 497 for the fiscal year 2022- 3 2023. About 10% of the expected costs are associated with customer development projects, which are fully reimbursable through aid-in-construction agreements.
CONCLUSION
Authorizing the BWP General Manager to execute the first amendment of this agreement with Sincerus will allow BWP to augment deficiencies in its labor resources due to recent position vacancies within the organization and additional workload due to a significant rise in customer projects, development projects, and capital improvement projects.
ATTACHMENTS
Attachment 1 – First Amendment to City of Burbank Terms and Conditions for Temporary Staffing with Sincerus Solutions, Inc. for Temporary Personnel Attachment 2 – City of Burbank Terms and Conditions of Temporary Services Agreement with Sincerus Solutions, Inc. for Temporary Personnel