EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: May 16, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Ana Maria Torres, Human Resources Manager
SUBJECT: Contract Extension with Muchmore than Consulting, LLC Recommendation
Adopt a resolution:
1. Ratifying payment to Muchmore than Consulting, LLC for $6,110.62.
2. Authorizing the City Manager to negotiate and execute the first amendment to the agreement with Muchmore than Consulting, LLC to increase the not to exceed by $45,000 to a total not to exceed of $78,110.62.
3. Waving the formal bid procedures under section 2.84.070(D) of the Municipal Code.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
· Increase Organizational Effectiveness and Efficiency
Background
On January 9, 2023, the City entered into a contract for an amount not-to-exceed $27,000 with Muchmore than Consulting (MTC) to provide HR services in order to provide the Human Resources Division with Organizational Development, Recruitment, Coaching, and Employee Relations support.
MTC has provided excellent support, allowing the City to complete the following tasks, some of which have lingered over multiple years:
· Assessment of Human Resource practices, systems and processes · Supporting updates to critical processes
o Providing written guidelines and best practices for recruitment processes o Federal and State leave administration processes
o Worker’s compensation vendor case management processes · Citywide assessment of staffing concerns
The completion of these projects has improved efficiency for Human Resources staff and has reduced potential risk to the City.
Analysis
However, the City has already exceeded the current contract by $6,110.62 and MTC continues to provide support for the following ongoing tasks:
· Revamped the recruitment process. This includes ongoing marketing to attract qualified applicants. This process provides hiring managers with an improved applicant pool. The City can now run multiple recruitments concurrently without disrupting HR day-to-day tasks.
· Support for proctoring during City interviews for applicants. This provides both additional expertise staff lack on the rules during interviews and provides direct relief to overstretched Human Resources staff, improving efficiency. · Supporting department hiring managers conducting job analysis and reviewing classifications prior to opening new recruitments and implementing a recruitment request form to ensure fiscal sustainability and proper approval processes. · Maintaining and administering a leave administration program which comprises educating our staff on their FMLA, CFRA, and reasonable accommodation rights. · Sourcing creative staffing solutions such as part-time CalPERS extra help employees and Retired Annuitants, who can perform duties part time without the cost of benefits and provide valuable knowledge to the departments and managers they serve because of their years of experience.
It would affect the ongoing progress made by Human Resource staff should this support be stopped without an identified replacement being able to take them over. Therefore, staff are asking that the Council ratify the overage payment and provide sufficient funding for staff to continue the contract until current projects are in a place that they can be transitioned.
Broadly, regulatory requirements for training, compliance, and policies, and practices in human resources have grown exponentially, and it is no longer possible for a single HR Manager or practitioner to do all that is required for compliance and organizational support. However, it is also not efficient to bring on staff all the required support. The most effective solution is to contract out for specific Human Resources needs.
Thus, given the City’s ongoing and perpetual need for additional Human Resources support, staff is assessing various staffing and combination staffing/consultant models to address all functions required of a municipality in Risk Management and Human Resources. Following the review of the best solution, staff intend to issue a request for proposals for a multi-year human resources consulting services contract in order to provide many of these services in the future.
The additional funds requested will allow the ongoing projects to continue while the City goes through the request for proposals process.
Due to the current capacity issues described above and the need for a sufficient funding cushion to start formal bidding, staff recommends formal bidding procedures for this appropriation be waived so that the MTC budget be increased to address the anticipated cost increase and to provide services for additional services in East Palo Alto, as determined by staff and consistent with the City’s Personnel Policies and Procedures.
Fiscal Impact
The fiscal impact will be $51,110.62 from the General Fund in FY 2022-23. However, there will be no increase to the adopted General Fund expenditures because there are existing general fund savings for this fiscal year to cover these costs.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo County Library located at 2415 University Avenue, East Palo Alto.
Environmental
The proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.
Attachments
1. Resolution MTC Contract Amendment
2. Draft Contract Amendment MTC