DATE:February 18, 2025
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
FROM: Diane Pitman, Administrative Services Director
DEPARTMENT: Administrative Services
SUBJECT: CONTRACT AMENDMENT NO. FOUR (4) IN THE AMOUNT OF $40,000 TO THE AGREEMENT WITH IT’S PERSONNEL
CONSULTING FOR HUMAN RESOURCES
CONSULTNG SERVICES
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing the Mayor to execute Contract Amendment No. 4 (CA #4) in the amount of $40,000 with It’s Personnel Consulting, Inc. for additional Risk Management and Workers Compensation consulting services for a revised total contract amount not to exceed $250,000.
EXECUTIVE SUMMARY
In July 2022, due to staffing shortages, the City entered into a Professional Services Agreement with It’s Personnel Consulting, Inc. (It’s Personnel) to provide specialized Human Resources (HR) support services in various areas including recruitment, classification/compensation, benefits administration, leave administration and other HR functions (“Agreement”).
A First Amendment to the Agreement (CA #1) was approved in May 2023. A Second Amendment to the Agreement (CA #2) was approved in August 2023 and a Third Amendment to the Agreement (CA #3) was approved in May 2024 revising the total contract amount to $210,000.
A Fourth Amendment to the Agreement (CA #4) in the amount of $40,000 is now
necessary to continue to provide Risk Management and Workers Compensation consulting services. With CA #4, the revised total contract amount will be $250,000.
BACKGROUND/ANALYSIS
On July 21, 2022, the City and It’s Personnel entered into a Professional Services Agreement to assist with various HR services including recruitment, classification/compensation, benefits administration, leave administration and other HR functions. These services were provided on an as-needed basis up to a maximum Agreement amount of $20,000.
On May 22, 2023, a First Amendment to the Agreement was entered into by the City Manager to increase the contract amount based on recent vacancies that occurred in the HR Department to ensure HR services continued. The services continued to be provided on an ad-hoc basis as needed but also included a Senior HR Analyst resource for the more complex and specialized services for an additional amount of $29,000 increasing the maximum Agreement amount to $49,000. The City Manager approved the Agreement and CA #1 as they were both within his signing authority under the City’s Purchasing Policy.
On August 21, 2023, CA #2 was approved by the City Council to include additional services including a part-time Interim HR Director while the full-time position was being recruited. CA #2 increased the maximum amount by $101,000, increasing the maximum Agreement amount to $150,000. The Interim HR Director was hired as the Administrative Services Director in October 2023. The contract with It’s Personnel continued to provide HR services in the area of recruitment and classification/compensation. In addition, a Risk Management and Workers Compensation expert was added to provide best practices and review the City’s processes and provide recommendations.
On May 20, 2024, CA #3 was approved by the City Council to continue to utilize expertise in the area of Risk Management and Workers Compensation and to provide various HR services. CA #3 increased the maximum amount by $60,000 revising the total contract amount to $210,000.
CA #4 in the amount of $40,000 is necessary to continue to utilize Risk Management and Workers Compensation consulting services. Staff recently issued a Request for Proposal (RFP) for Workers Compensation Third-Party administration. The Risk Management and Workers Compensation consultant from It’s Personnel will assist staff in reviewing the RFP responses, implementing new third-party administrator and assist with the transition.
In addition, the consultant will assist in reviewing previous workers compensation claims to determine if there are strategies for reducing costs or improving services provided to claimants. With CA #4, the revised total contract amount will be $250,000. We are nearing the end of this project and do not anticipate any additional amendments to this contract.
California Environmental Quality Act
Approval of CA #4 is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment.
FISCAL IMPACT
With the execution of CA #4, the revised contract amount is $250,000:
Professional Services Contract $ 20,000
Contract Amendment No. 1 $ 29,000
Contract Amendment No. 2 $ 101,000
Contract Amendment No. 3 $ 60,000
Contract Amendment No. 4 $ 40,000
Revised Contract Amount $ 250,000
CA #4 in the amount of $40,000 to the agreement with It’s Personnel will ensure there is sufficient funding to utilize Risk Management and Workers Compensation consulting services. Funding is available in the approved Administrative Services budget and no additional appropriation is required.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
ATTACHMENTS:
Attachment 1 – Resolution
Attachment 2 – Contract Amendment No.4
Attachment 3 – Original Agreement