Loading...
HomeMy WebLinkAboutEMPLOYMENT SYSTEMS, INC. (ESI) - 1994-10-03 • REJUEST FOR CITY CO EL ACTION J ^ " Date: October 3, 1994 Submitted to: Honorable Mayor and City Council APPROVED BY CITY COUNCIL Submitted by: Michael T. Uberuaga, City Administra�,� 19 Prepared by: Michael P. Dolder, Fire Chief crrr t.tx Subject: CONTRACT WITH E YMENT SYSTEMS INCORPORATED FOR AMBULANCE OPERATOR/FIRE INTERN Consistent with Council Policy? [ X J Yes [ J New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: 1 t7 At/ Ct • r Rio rnm iK, e�10 . V, r ,VzjyPes . 'O \ Cb� N=> f q P.r STATEMENT OF ISSUE: The City of Huntington Beach executed a one (1) year contract with Employment Systems Incorporated on August 31, 1993 to lease personnel to staff the Huntington Beach Ambulance Program. Renewal of the contract would allow continuation of personnel to staff the ambulance operator/fire intern positions. RECOMMENDATION: By motion approve and authorize the Mayor to execute a contract with Employment Systems Incorporated in the amount not to exceed $520,000 to provide personnel to the City. ANALYSIS: In 1993 the City entered into a one (1) year contract with Employment Systems Incorporated (ESI) to provide eighteen(18) limited term(2 to 4 years)ambulance operator/fire interns. The ambulance operator/fire interns staff three(3) ambulances 24 hours per day, 7 days per week. During this last year, ESI met its contractual obligations with the City in a professional and timely manner. Existing City of Huntington Beach Personnel Rules do not allow for hiring limited term employees. Therefore, this lease agreement provides this limited term personnel resource. Staff will continue to evaluate the potential of modification of the personnel system to allow employment of limited term ambulance operator/fire interns. The recommended contract with ESI would allow cancellation with thirty (30) days written notice should the City choose to do so. FUNDING SOURCE: The Fire Department's Ambulance Program Budget Account (E-AA-FR-315) identifies a contractual services amount of $528,850 for funding salary and benefits. This budget amount is totally offset by transfers from the FireMed fund for ambulance transport costs. ALTERNATIVE ACTIONS: Do not sign this agreement which would prevent staffing of the Huntington Beach Ambulance Program. Negotiations with a private provider would reed to be initiated for ambulance transport. ATTACHMENTS: AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND EMPLOYMENT SYSTEMS INCORPORATED TO SUPPLY PERSONNEL TO THE CITY. MTU/MPD/CR/sr i 14 a:ai.rca AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND EMPLOYMENT SYSTEMS, INC. TO SUPPLY PERSONNEL TO THE CITY II THIS AGREEMENT is made and entered into this 3day of Def- ba i 1994, by and between the City of Huntington Beach a municipal corporation of the State of Califomia, hereinafter referred to as "CITY,"and EMPLOYMENT SYSTEMS, INC., a California corporation, hereinafter referred to as "ESI." WHEREAS, ESI is a California corporation which provides the services of its employees to government agencies for the purpose of discharging the responsibilities of government agencies; and CITY authorized the implementation of a City Ambulance Program and requires the personal services of certain persons to perform the duties of ambulance operators/fire interns; and Program continuity and economic reasons exist which make it in the best interest of the CITY to discharge certain of its responsibilities through the use of ESI employees; and NOW, THEREFORE, in consideration of the promises, covenants, and warranties hereinafter set forth, the parties hereto mutually agree as follows: 1. DEFINITIONS All terms used in this Agreement shall have the customary meaning afforded such terms unless the same are used in a technical or business context, in which event such terms shall have the technical and/or special meaning normally afforded such terms within the particular trade, industry, or business to which they relate. The following are the definitions of special terms used herein: 1.1 "Current payroll" means the payroll set forth in attached Exhibit A and incorporated by this reference due on a bi-weekly basis. 1.2 "Employees" means those individual persons who are subject to the terms of this Agreement and whose job type is identified in attached Exhibit B incorporated in this reference. 1.3 "Employee tax forms" means all forms applicable to the payroll which are required by United States, state, and local governments to be provided by an employer to an employee, including US Department of the Treasury, Internal Revenue Service Form W-2 (Wage and Tax Statement) and Form W-4 (Employee's Withholding Allowable Certificate) and Form 1099 (as and if applicable), as well as comparable and/or counterpart forms prescribed by the state and/or local government in which employees are performing services pursuant to this Agreement. 1.4 "Employer tax forms" means all forms required to fully and properly report the payroll to the United States, state and/or local governments, including United States Department of the Treasury, Internal Revenue Service Forth 941 (Employers Quarterly Federal Tax Return for Federal Income Tax Withheld from Wages and for Federal Insurance Contributions Act Taxes), Forth 940 (Employers Annual Federal Unemployment Tax Return), and comparable and/or 1 %Jagre rn/ESI/90/94 counterpart forms prescribed by the state and/or local government in which employees are performing services pursuant to this Agreement. 1.5 'Payment due date" means any date on or before the last day of each payroll period. 1.6 'Pay period" means the interval between payments to employees specified in attached Exhibit A. 1.7 'Payroll' means the total payroll applicable to all employees and includes the aggregate of net compensation to employees, federal withholding taxes, state and local (if any)withholding taxes, employer and employee costs pursuant to the Federal Insurance Contributions Act, employer costs pursuant to the Federal Unemployment Tax Act, employer costs for state unemployment taxes (if any), employer costs pursuant to the Voluntary Compensation Plan (if any), employer listed service fees (as applicable), employer cost of Workers Compensation insurance , and employer cost of benefit programs listed on Exhibit A (or the cost of employer payments to employees paid in lieu of employee participation these benefit programs). 2. IMPLEMENTATION 2.1 Relationship of Parties. Effective at the commencement of business on the 8th day of October, 1994, ESI will provide to CITY those of its employees who are identified in attached Exhibit B to CITY and CITY hereby accepts such employees on the terms and conditions provided in this Agreement. 2.2 Term of Agreement. This Agreement and the rights and obligations of CITY and ESI shall commence on the effective time and date specified in paragraph 2.1 and shall expire and terminate at the same time on the corresponding date one year later. CITY may terminate this Agreement by giving thirty (30) days written notice to ESI. 2.3 Employment by CITY of ESI Leased Employees. ESI is aware and has no objection to the CITY at a future date employing directly the leased employees of ESI leased to the CITY. Upon any of these leased employees becoming CITY employees, ESI shall terminate them from their employment and have no further right of compensation from the CITY for that leased employee. 2.4 Specification of Services and Approval of Compensation. CITY shall specify, and by notice to ESI may accept, modify, or reject the services and/or rate of compensation of any and all employees leased to CITY in accordance with this Agreement. In the event of rejection of services and/or rejection of the rate of compensation of any employee leased to CITY, the lease made by this Agreement shall terminate as to such employee, effective upon receipt by ESI of notice thereof. For purposes of business and financial accounting between the parties, this Agreement shall be deemed several as to each employee and shall be deemed prorated on a daily or other periodic basis necessary to give effect to the manifest intentions of the contracting parties. 2.5 Changes and Adiustments of Payroll. CITY and ESI acknowledge the payroll will vary from pay period to pay period by reason of additions, terminations, and changes in compensation rates of employees. It is further acknowledged that the payroll also may vary from pay period to pay period by reason of changes in the rate and/or amount of employee withholding and/or employer payroll contributions and/or costs of employee benefit plans and programs. It is specifically agreed that the amount of all payments coming due and owing from CITY to ESI shall 2 6/WagreeMES V921194 be adjusted (by increase or decrease, as applicable) to the extent necessary to directly reflect such changes on a current basis. All such changes and adjustments in payroll are hereby expressly approved by the parties. 2.6 Employer Duties of ESI. ESI shall: 1) pay all wages and other remuneration to its employees who are subject to this Agreement; 2) prepare and file all payroll tax returns and reports; 3) pay all amounts due and owing pursuant to the payroll tax returns and reports which are prepared and filed; 4) prepare, file, and furnish to employees applicable employee tax forms; and 5) prepare and file, with a copy to CITY, applicable employer tax forms. In the event of termination of any employee as provided by paragraph 2.4, ESI shall provide placement assistance to that employee by listing that employee at no charge to the employee in ESI's A/E ConnectionsTm job listing service. 2.7 Duties of CITY. CITY shall: 1) provide the workplace for all employees subject to this Agreement; 2) maintain the work place in strict accordance with applicable health and working standards and specifications; 3) comply with all safety engineering and governmental health and safety rules, regulations, directives, orders or similar requirements; 4) provide all required safety equipment; 5) for employees located in California, take all actions necessary to establish and implement an injury and illness prevention program as required by the Occupational Injury Program Act, also known as Senate Bill 198, and codified at California Labor Code Section 6401.7; 6) post or provide employee notices required by law; and 7) notify ESI immediately of all employee illnesses, accidents, injuries, and absences; 8) review, approve and forward employee time sheets to ESI; and, 9) provide adequate dormitory and kitchen facilities.. 2.8 Workers' Compensation. Pursuant to California Labor Code Section 1861, ESI acknowledges awareness of Section 3700, et seq. of said code, which requires every employer to be insured against liability for workers compensation; ESI covenants that it will comply with such provisions prior to commencing performance of the work hereunder. ESI shall maintain such workers compensation insurance in an amount of not less than One Hundred Thousand Dollars ($100,000) bodily injury by accident, each occurrence; One Hundred Thousand Dollars ($100,000) bodily injury by disease, each employee, and Two Hundred Fifty Thousand Dollars ($250,000) bodily injury by disease, policy limit, at all times incident hereto, in forms and underwritten by insurance companies satisfactory to CITY. 2.9 Health and Other Benefits ESI maintains various health and other benefits which are available to employees under a cafeteria plan permitting each employee to choose the type of benefits he or she will receive. 3. COMPENSATION 3.1 Fee. CITY agrees to pay a flat rate of One Hundred Fifteen Dollars and Thirty-eight cents ($115.38) per employee plus the current payroll, on or before each payment due date. 3.2 Fee Plus Payroll. The total Agreement for Fee Plus Payroll shall not exceed Five Hundred and Twenty Thousand Dollars ($520,000)for a period not to exceed one (1) year. 3 6/WagreeMES1/921/94 3.3 Payment Address. All payments due ESI shall be paid to: EMPLOYMENT SYSTEMS, INC. 11590 West Bernardo Court, Suite 211 San Diego, CA 92127 3.4 Terms of Compensation. Payment is due fifteen (15) days from date of invoice. ESI will invoice CITY every two (2)weeks, approximately seven (7) days following payroll. Delinquent payments will be subject to a late payment carrying charge computed at a periodic rate of one percent(1%) per month, which is an annual percentage rate of twelve percent(12%), which will be applied to any unpaid balance owed commencing seven (7) days after the payment due date. Additionally, in the event CITY fails to pay any undisputed amounts due ESI within forty-five (45) days after payment due date, then CITY agrees that ESI shall have the right to consider said default a total breach of this Agreement and the duties of ESI under this Agreement may be terminated by ESI without liability to ESI upon ten (10)working days advance written notice. 3.5 Additional Services. CITY may request ESI to perform additional services not covered by this Agreement, such as recruiting services, and ESI shall perform such additional services and will be paid for such additional services when they are mutually agreed to and made part of this Agreement by written amendment. 4. SUPERVISION OF EMPLOYEES ESI shall supervise the daily activities of employees, but employees shall discharge government responsibilities and perform in accordance with the ordinances, resolutions, rules, regulations, and procedures adopted by CITY in its governmental capacity. ESI shall have no control over such government responsibilities and such ordinances, resolutions, rules, regulations, and procedures. 5. INDEMNIFICATION ESI shall indemnify, defend, and hold harmless CITY for the purpose of all required payroll deductions and withholdings, legally required workers' compensation insurance, and health benefits of the employees. However, inasmuch as the employees will discharge governmental responsibilities and perform in accordance with the ordinances, resolutions, rules, regulations, and procedures adopted by CITY in its governmental capacity 1) ESI and its employees to the degree the law will allow shall be entitled to all protection and immunities of government employees, including without limitation, those provided in California Government Code, Tide 1, Division 3.6, Claims and Actions against Public Entities and Public Employees; and 2) CITY does release and agree to indemnify, defend and hold harmless the employees, ESI, and ESI's agents, personnel, directors, and officers from, any and all actions, claims, damages or injuries to persons or property, penalties, obligations or liabilities arising out of or related to the services performed by the employees of ESI assigned and working under the control of CITY under this Agreement. In addition, the employees, ESI, and ESI's agents, personnel, directors, and officers shall be additional named insured on CITY's insurance policies or on any self-insurance agreement. If CITY is a member of a Risk Management Agreement(RMA) or similar agreement, CITY will notify the 4 6A0agreert✓ESU9121194 organization responsible for RMA or similar agreement in writing that the employees, ESI, and ESI's agents, personnel, directors, and officers do not have any applicable insurance coverage. 6. GENERAL PROVISIONS 6.1 Representation. A CITY representative shall be designated by the CITY and an ESI representative shall be designated by ESI as the primary contact person for each party regarding performance of this Agreement. The following are the designated representatives: EMPLOYMENT SYSTEMS, INC. CITY OF HUNTINGTON BEACH Anne Wigdahl Duming, Director, Professional Relations Michael P. Dolder, Fire Chief 11590 West Bernardo Court, Suite 211 2000 Main Street San Diego, CA 92127 Huntington Beach, CA 92648 6.2 Assignment. This Agreement shall not be assignable by either party without the prior written consent of the other party. 6.3 Audit. CITY shall have the right to audit and inspect ESI's records and accounts covering costs under this Agreement for a period of two (2) years after tennination of the Agreement. 6.4 Titles. The titles used in this Agreement are for general reference only and are not part of the Agreement. 6.5 Severability. Should any provision of this Agreement be determined to be unenforceable, such determination shall not affect the remaining provisions. 5 6/I0agr eWESI/9Q /94 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written. EMPLOYMENT SYSTEMS, INC., aCalifornia CITY OF HUNTINGTON BEACH, A corporation municipal corpomtyyion of the State of California By: ^% ? X Ray J.��rrym'— n, hiefOperating Officer v Mayor By: Mary J an tary APPROVED AS TO FORM: ATTE$�. City Attorney City Cleric INMATED AND APPROVED: `WGceA-Ae-�� REVI AND APPR V Fire Cif r Administrator 6 6/k/agreem/ESIMB/9/21/94 fmpluymcnl S}'slcros, Inc. Exhibit A Proposal to the City of Huntington Beach forcontract staffing of 18 Ambulance Operatot,Tire Interns Annual Annual Hours Worked Compensation& Costt Hourly Payrate 55.00 Regular Hours 1,865 9,323 Overtime Hours at time and a half 1,058 7,935 Overtime Hours at Doubletime Q 0 Total Hours 2,923 17,258 Number of Employees 18 Total Base Compensation All Employees 16705 Total Overtime Compensation All Employees 142,830 Total Annual Compensation All Employees 310,635 Payroll Taxes and Worker's Compensation Rate Subject Wages Pica (wages up to 57,600 per Employee) 6.20% 333,135 20,654 Medicare (wages up to 135,000 per empl) 1.45% 333,135 4,830 SUI(wages up to 7,000 per employee) 3.50% 126,000 4,410 FUTA (wages up to 7,000 per employee) 0.80% 126,000 1,008 Worker's Compensation(wages excluding OT premium 13,34% 295,525 38,089 Group Insurance Long Term Disability(Unum .35%of wages) 0.35% 333,135 1,166 Employee Medical Insurance(Prudential HMO) 117.37 Per Mo./per empl 25,352 Employee Dental Insurance(Prudential DMO) 20.76 Per Mo./per empl 4,484 Life and AD&D(Prudential 33 per 1000/mo) 1,230 Other Benefits 401Y Plan-2.5%Company Match from l/1/95 6,940 Sick Pay 100 Firs/ Year per empl 9,000 Holiday Pay 50 Hrs/ Year per empl 4500 Vacation Pay 100 Hrs/ Year per empl 9,000 ESI Administrative Charges 250.00 Per Mo./per empl 54,000 Estimated Total Annual Cost To Agency $495,299 Exhibit B AMBULANCE OPERATOR/FIRE INTERN Position Under direct supervision of the Company Commander, respond to both routine and emergency medical aid requests; participate in routine maintenance of apparatus and equipment; attend training sessions; and, do related work as required Examples of Duties Will be regularly dispatched to emergency scenes to assist in rendering aid to injured parties; will perform appropriate field procedures including EMT-1 level skills such as performing vital signs, bandaging, splinting, and assisting paramedics as needed; will drive ambulances and other vehicles as needed; will participate in station and equipment clean-up, training drills, hospital in-services; and, other duties as required. Employee will be required to participate in training deemed appropriate by City. Qualifications Training and Experience: Any combination of experience and education that would likely provide the required knowledge and abilities for the position of ambulance operator. A typical combination would be as follows: graduation from high school; experience in medical emergencies; and, other related knowledge which would indicate success in the position. Knowledge and Abilities: General knowledge of ambulance transportation procedures including first aid, resuscitator and gurney operations. Applicant should be in good physical condition suitable to performing the lifts and carries as required for the position. Special Requirements • Must possess and maintain certification as an Emergency Medical Technician (EMT-f) as defined by the State of California with current CPR card. • Possess an ambulance attendant license from Orange County EMS prior to driving an ambulance. • Must maintain physical fitness requirements as prescribed by the Fire Department. • Possess a valid State of California driver's license, Class C. Desirable Experience • Presently attending or have graduated from a 240 hour fire academy which meets State of California requirements. • Fire Science course work at the college level. 8 6/k/agreem/ES I/HB/9/21/94 AI:111!I/ CERTIFIC4&E OF INSURANCE 0922 01274 -1 E /99lYY7 09 94 PRGDGCER IHIS GERI II ICA TE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTW40ATE HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE R . DAVID BULEN INSURANCE POLICIES BELOW. O BOX 115 COMPANIES AFFORDING COVERAGE KE ELSINORE CA 92531 -0115 COMPANY A C N A INSURANCE CO I ETTEM COWMY B N9URm LErreR SI CONSULTANTS, INC. , COMPANY C NIGAR & RAY, INC. & LFr7lR &MPLOYMENT SYSTEMS, INC. mwA D 6880 W. BERNARDO #100 LRTO AN DIEGO , CA 92127 -1616 CovANY E LETTER OOVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE SEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. O - _ — - POLICY BRaCTNE POLICY FXlMATIOM TYPE OF 9gU111NC! FOCI NIIYRM WA rn DATO wMDDnn DATE IMM()DiYYI odcMILLUMIRY OF128170610 2/31/93 2/31/94 O&ARALAGGREGATE 1 0 0 00 X C�OMMNR"d''A"LOPLMLLIMLDY PRODUCTBCOME,OPAGO. • 1 000 00 Hw�A9 MAW FOOOUE ' PERSCNLL a ADV.INJURY' 1 1 000 00 rro--wwpama a CONTRAOTdq PACT. EACH OCCLRUBICE 1 11000. 00 'ME DAMAGE JAM A ANI 1 50 00 MLED.Ev IARY RIN P.wo AmoMa9NE uAmJ 13UA128170624 2131/93 2/31/94 COI/91p LRNia ANY AUTO LIMIT • 1, 000, 00 ALL OWNED AUT09 POORLY INJURY SCHEDULED AllT09 I'N PARM�1 1 HIRED AUTOS BODILY INJURY NONOWNED AUTOS MMPWNIO GARAGE LIABILITY - — MOPERTY DAMSON 1 EXCE•1 UAOILTY CUP128170638 2/31/93 2 31 94 FACH«cunnPJce 1_51000y0.0- X UMBRELLA FOMM AGORNATE 1 5, 000, 00 OTHER THAN UMBRELLA FOAM WC128170641 2/31/93 12/31/94 STATUTORY UNIT9 WORMM"B COMPEM9AMN AND EACH ACCIDENT 9 1, 000. 00 ewnorenr LUMLm — DI99Aw*oUCYUw 1 1, 000. 00C d9weACH ER.fLOY1111 1 1, 000. 00 OTHEIPROPERTY OF128170610 2/31/93 2/31/94 DEWMPT10111 OF OPER MMOM1 ATMNSNM CLHr1PBCYLL AMBULANCE OPERATOR/FIRE INTERN W �_ CERTIFICATE HOLDER OANOELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, CITY OF HUNTINGTON BEACH MAIL 30__DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE ATTN MICHAEL P. DOLDER LEFT, UT OF��oncE SFOEt wsa Moe6LwwsleN aR FIRE CHIEF LIAIILBRY ENTATNES. 2000 MAIN STREET AUTHOftnD MPM KOTTATIVE HUNTINGTON BCH CA 92648 ACORO 26-8 (7190) BAGDAD 0ORPORA710N ISK RE&EST FOR CITY COIL ACTION 4ea "UNnNG "'""" We: Sepembc 7, 1993 Submitted to: Honorable Mayor and City Council APPROVED BY CITY COUNCIL Submitted by: Michael T. Uberuaga, City Administrat r �/ � q� 7 19� Prepared by: Michael P. Dolder, Fire Chief 9' a c�mcuxx Subject: AGREEMENT BETWEEN THE CrTY AND EMPLOYMENT SYSTEMS, INC.TO SUPPLY AMBULANCE OPERATOR PERSONNEL TO THE CITY Consistent with Council Policy? [ ] Yes [ X ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE: Implementation of the City Ambulance Program requires the personnel services of certain persons to perform the duties of Ambulance Operator/Fire Intern. Implementation schedules prevent the City from immediately staffing limited term Ambulance Operator/Fire Intern positions. Employment Systems, Inc. can provide leased personnel to the City allowing a timely implementation of the Ambulance Program while City personnel system changes are pursued. RECOMMENDATION: BY MOTION, approve and authorize the Mayor to execute a contract with Employment Systems, Inc. in the amount not to exceed $475,000 to provide personnel to the City. ANALYSIS: The City Council approved the implementation of a Fire Department Ambulance Program on August 2, 1993. Three (3) options for staffing City ambulances were presented which included full-time permanent, limited term or contract employees. The preferred employee status is a limited term employee who would be hired for a two(2)to four(4)year period. This would provide the employees with an opportunity to acquire firefighting skills for future employment in the Huntington Beach Fire Department or some other fire department. This limited term alternative requires the City to change its current personnel system which cannot be completed prior to the City Ambulance Program start-up date of November 1, 1993. Contracting with Employment Systems, Inc. (ESI) to provide leased Ambulance Operator/Fire Interns provides the City with the most flexible Ambulance Program staffing alternative and allows the City to meet its staffing needs on a timely basis and at a lower cost than estimated for full-time employees. ESI is a member of the Berryman & Stephenson Industries (BSI) group of companies which provides consulting services to governmental agencies throughout California and the West. ESI provides flexible contract staffing arrangements for various governmental positions. An agreement was reached with ESI to provide up to eighteen(18)Ambulance Operator/Fire Interns. Under the agreement (Attachment #1) Ambulance Operator/Fire Interns would be available to the City as soon as October 11, 1993 to allow training to begin and to start ambulance operations by November 1, 1993. Additional details regarding ESI can be found in Attachment #2. IL AGREEMENT BETWEEN THE CITY AND EMPLOYMENT SYSTEMS, INC. TO SUPPLY AMBULANCE OPERATOR PERSONNEL TO THE CITY September 7, 1993 Page 2 FUNDING SOURCE: The City Council authorized a$503,476 general fund appropriation for salary and benefits in Fire Department Account #AA-FR-315. ALTERNATIVE ACTIONS: Do not sign this Agreement, which would delay implementing the City Ambulance Program by at least sixty (60) to ninety (90) days with revenue loss of between $68,000 to $102,000 or more. ATTACHMENTS: 1. AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND EMPLOYMENT SYSTEMS, INC. TO SUPPLY PERSONNEL TO THE CITY. 2. EST - A NEW APPROACH TO LOCAL AGENCY STAFFING. MTU/MPD/sr a:ambl.rca AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND EMPLOYMENT SYSTEMS, INC. TO SUPPLY PERSONNEL TO THE CITY THIS AGREEMENT is made and entered into on this 31'r day of AuGLkl — 19�,by and between the City of Huntington Beach a municipal corporation of the State of California, hereinafter referred to as "CITY," and EMPLOYMENT SYSTEMS, INC., a California corporation, hereinafter referred to as "ESI." WHEREAS, ESI is a California corporation which provides the services of its employees to government agencies for the purpose of discharging the responsibilities of government agencies; and CITY authorized the implementation of a City Ambulance Program and requires the personal services of certain persons to perform the duties of ambulance operator/fire interns; and Economic reasons and implementation schedules exist which make it in the best interest of the CITY to discharge certain of its responsibilities through the use of ESI employees; and NOW, THEREFORE, in consideration of the promises, and agreements hereinafter made and exchanged, the parties covenant and agree as follows: 1. DEFINITION 1.1 All terms used in this Agreement shall have the customary meaning afforded such terms unless the same are used in a technical or business context, in which event such terms shall have the technical and/or special meaning normally afforded such terms within the particular trade, industry, or business to which they relate. The following are the definitions of special terns used herein: 1.2 "Current payroll" means that portion of the payroll set forth in attached Exhibit A and incorporated by this reference due on a bi-weekly basis. 1.3 "Employees" means those individual persons who are subject to the terms of this Agreement and whose job type is identified in attached Exhibit B incorporated in this reference. 1.4 "Employee tax forms" means all forms applicable to the payroll which are required by United States, state, and local governments to be provided by an employer to an employee, including US Department of the Treasury, Internal Revenue Service Form W-2 (Wage and Tax Statement)and Form W4 (Employee's Withholding Allowable Certificate) and Form 1099 (as and if applicable), as well as comparable and/or counterpart forms prescribed by the state and/or local government in which employees are performing services pursuant to this Agreement. 1 1.5 "Employer tax forms" means all forms required to fully and properly report the payroll to the United States, state and/or local governments, including United States Department of the Treasury, Internal Revenue Service Form 941 (Employers Quarterly Federal Tax Return for Federal Income Tax Withheld from Wages and for Federal Insurance Contributions Act Taxes), Form 940 (Employer's Annual Federal Unemployment Tax Return), and comparable and/or counterpart forms prescribed by the state and/or local government in which employees are performing services pursuant to this Agreement. 1.6 "Payment due date" means any date on or before the last day of each payroll period. 1.7 "Pay period" means the interval between payments to employees specified in attached Exhibit A. 1.8 "Payroll" means the total payroll applicable to all employees and includes the aggregate of net compensation to employees, federal withholding taxes, state and local (if any) withholding taxes, employer and employee costs pursuant to the Federal Insurance Contributions Act, employer costs pursuant to the Federal Unemployment Tax Act, employer costs for state employment taxes(if any), employer costs pursuant to the Voluntary Compensation Plan (if any), employer listed service fees(as applicable),employer cost of Workers' Compensation insurance, and employer cost of benefit programs listed on Exhibit A (or the cost of employer payments to employees paid in lieu of employee participation in these benefit programs). 2. IMPLEMENTATION 2.1 Relationship of Parties. Effective at the commencement of business on the I l -day of Oc-rcn6E2 , 199 ESI will provide to CITY those of its employees who are identified in attached Exhibit B to CITY and CITY hereby accepts such employees on the terms and conditions provided in this Agreement. 2.2 Term of Agreement. This Agreement and the rights and obligations of CITY and ESI shall commence on the effective time and date specified in paragraph 2.1 and shall expire and terminate at the same time on the corresponding date one(1)year later. CITY may terminate this Agreement by giving thirty (30) days written notice to ESI, but in no event sooner than six (6) months from the execution of this Agreement. 2.3 Employment By CITY of ESI Leased Employees. ESI is aware and has no objection to the CITY at a future date employing directly the leased employees of ESI leased to the CITY. Upon any of these leased employees becoming CITY employees, ESI shall terminate them from their employment and have no further right of compensation from the CITY for that leased employee. 2.4 Specification of Services and Approval of Compensation. CITY shall specify, and by notice to ESI may accept, modify, or reject the services and/or rate of compensation of any and all employees leased to CITY in accordance with this Agreement. In the event of rejection of services 2 and/or rejection of the rate of compensation of any employee leased to CITY, the lease made by this Agreement shall terminate as to such employee, effective upon receipt by ESI of notice thereof. For purposes of business and financial accounting between the parties, this Agreement shall be deemed several as to each employee and shall be deemed prorated on a daily or other periodic basis necessary to give effect to the manifest intentions of the contracting parties. 2.5 Changes and Adjustments of Payroll. CITY and ESI acknowledge the payroll will vary from pay period to pay period by reason of additions, terminations, and changes in compensation rates of employees. It is further acknowledged that the payroll also may vary from pay period to pay period by reason of changes in the rate and/or amount of employee withholding and/or employer payroll contributions and/or costs of employee benefit plans and programs. It is specifically agreed that the amount of all payments coming due and owing from CITY to ESI shall be adjusted (by increase or decrease, as applicable) to the extent necessary to directly reflect such changes on a current basis. All such changes and adjustments in payroll are hereby expressly approved by the parties. 2.6 Employer Duties of ESL ESI shall: 1) pay all wages and other remuneration to its employees who are subject to this Agreement; 2) prepare and file all payroll tax returns and reports; 3) pay all amounts due and owing pursuant to the payroll tax returns and reports which are prepared and filed; 4) prepare, file, and furnish to employees applicable employee tax forms; and 5) prepare and file, with a copy to CITY, applicable employer tar forms. In the event of termination of any employee as provided by paragraph 2.4, ESI shall provide placement assistance to that employee by listing that employee at no charge to the employee in ESI's A/E ConnectionsT'job listing service. 2.7 Duties of CITY. CITY shall: 1) provide the workplace for all employees subject to this Agreement; 2) maintain the work place in strict accordance with applicable health and working standards and specifications; 3) comply with all safety engineering and governmental health and safety rules, regulations, directives, orders or similar requirements; 4) provide all required safety equipment; 5) for employees located in California, take all actions necessary to establish and implement an injury and illness prevention program as required by the Occupational Injury Program Act, also known as Senate Bill 198, and codified at California Labor Code Section 6401.7; 6) post or provide employee notices required by law; and 7) notify ESI immediately of all employee illnesses, accidents, injuries, and absences; 8) review, approve and forward employee time sheets to ESI; and, 9) provide adequate dormitory and kitchen facilities. 2.8 Workers' Compensation. Pursuant to California Labor Code Section 1861, ESI acknowledges awareness of Section 3700 et seq. of said code, which requires every employer to be insured against liability for workers' compensation; ESI convenants that it will comply with such provisions prior to commencing performance of the work hereunder. ESI shall maintain such Workers' Compensation Insurance in an amount of not less than One Hundred Thousand Dollars ($100,000) bodily injury by accident, each occurrence, One Hundred Thousand Dollars ($100,000) bodily injury by disease, each employee, and Two Hundred Fifty Thousand Dollars ($250,000) bodily injury by disease, policy limit, at all times incident hereto, in forms and underwritten by insurance companies satisfactory to CITY. 3 2.9 Health, and Other Benefits. ESI maintains various health and other benefits which are available to employees under a cafeteria plan permitting each employee to choose the type of benefits he or she will receive. 3. COMPENSATION 3.1 Fee. CITY agrees to pay a flat rate of One Hundred Thirty-Eight Dollars and Forty-Six Cents ($138.46) per employee plus the current payroll, on or before each payment due date. 3.2 Fee Plus Payroll. The total Agreement for Fee Plus Payroll shall not exceed Four Hundred and Seventy-Five Thousand Dollars ($475,000) for a period not to exceed one (1) year. 3.3 Payment Address. All payments due ESI shall be paid to: EMPLOYMENT SYSTEMS, INC. 11590 West Bernardo Court, Suite 211 San Diego, CA 92127 3.4 Terms of Compensation. Payment is due fifteen (15) days from date of invoice. ESI will invoice CITY every two (2) weeks, approximately seven (7) days following payroll. Delinquent payments will be subject to a late payment carrying charge computed at a periodic rate of one percent (1%) per month, which is an annual percentage rate of twelve percent (12%), which will be applied to any unpaid balance owed commencing seven (7) days after the payment due date. Additionally, in the event CITY fails to pay any undisputed amounts due ESI within forty-five (45) days after payment due date, then CITY agrees that ESI shall have the right to consider said default a total breach of this Agreement and the duties of ESI under this Agreement may be terminated by ESI without liability to ESI upon ten (10) working days advance written notice. 3.5 Additional Services. CITY may request ESI to perform additional services not covered by this Agreement, such as recruiting services, and ESI shall perform such additional services and will be paid for such additional services when they are mutually agreed to and made part of this Agreement by written amendment. 4. SUPERVISION OF EMPLOYEES ESI shall supervise the daily activities of employee, but employees shall discharge government responsibilities and perform in accordance with the ordinances, resolutions, rules, regulations, and procedures adopted by CITY in its governmental capacity. ESI shall have no control over such government responsibilities and such ordinances, resolutions, rules, regulations, and procedures. 4 5. INDEMNIFICATION ESI shall indemnifv, defend, and hold harmless CITY for the purpose of all required payroll deductions and withholdings, legally required workers' compensation insurance, and health benefits of the employees. However, inasmuch as the employees will discharge governmental responsibilities and perform in accordance with the ordinances, resolutions, rules, regulations, and procedures adopted by CITY in its governmental capacity 1) ESI and its employees to the degree the law will allow shall be entitled to all protection' and immunities of government employees, including without limitation, those provided in California Government Code, Title 1, Division 3.6. Claims and Actions against Public Entities and Public Employees and 2) CITY does release and agree to indemnify, defend and hold harmless the employees, ESI, and ESI's agents, personnel, directors, and officers from, any and all actions, claims, damages or injuries to persons or property, penalties, obligations or liabilities arising out of or related to the services performed by the employees of ESI assigned and working under the control of CITY under this Agreement. In addition, the employees, ESI, and ESI's agents, personnel, directors, and officers shall be additional named insured on CITY's insurance policies or on any self-insurance agreement. If CITY is a member of a Risk Management Agreement (RMA) or similar agreement, CITY will notify the organization responsible for RMA or similar agreement in writing that the employees, ESI, and ESI's agents, personnel, directors, and officers do not have any applicable insurance coverage. 6. GENERAL PROVISIONS 6.1 Representation. A CITY representative shall be designated by the CITY and an ESI representative shall be designated by ESI as the primary contact person for each party regarding performance of this Agreement. The following are the designated representatives: EMPLOYMENT SYSTEMS, INC. CITY OF HUNTINGTON BEACH Anne Wigdahl Duming Michael P. Dolder Director - Professional Relations Fire Chief 11590 West Bemardo Court, Suite 211 2000 Main Street San Diego, CA 92127 Huntington Beach, CA 92648 6.2 Assignment. This Agreement shall not be assignable by either party without the prior written consent of the other party. 6.3 Audit. CITY shall have the right to audit and inspect ESI's records and accounts covering costs under this Agreement for a period of two (2) years after termination of the Agreement. 6.4 Titles. The titles used in this Agreement are for general reference only and are not part of the Agreement. 5 6.5 Severability. Should any provision of this Agreement be determined to be unenforceable, such determination shall not affect the remaining provisions. 6.6 Extent of Agreement. This Agreement represents the entire and integrated Agreement between CITY and ESI and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be modified or amended only by a subsequent written agreement signed by both parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers the day, month and year first above written. EMPLOYMENT SYSTEMS, INC. CITY OF HUNTINGTON BEACH a municipal corporation of the State of California /�� BY: �34 � - ' \ "� /JOP A. RODR196EZ Mayor Its: Vice Presid�t BY: Z4�r—tlzl k1 28�l� s r A Y ERRYM N Its: Secretary ATTESb APPROVED AS TO FORM: City Clerk City Attorney CkC fi/-f7 ,PD AND PV D7 INITIATED AND APPROVED:-Administrator Fire Chief C.WMDOVAGREENMIX C 6 Employment Systems, Inc. Exhibit A Proposal to the City of Huntington Beach 1 for contract staffing of 18 Ambulance Operator/Fire Interns J Annual Annual Hours Worked Compensation& Cost: Hourly Payrate $5.00 Regular Hours 1,840 9,200 Overtime Hours at time and a half 762 5,715 Overtime Hours at Doubletime 0 0 Total Hours 2,602 14,915 Number of Employees 18 Total Base Compensation All Employees 165,600 Total Overtime Compensation All Employees 102,870 Total Annual Compensation All Employees 268,470 Payroll Taxes and Worker's Compensation Rate Subject Wages Fica ( wages up to 57,600 per Employee) 6.20% 290,970 18,040 Medicare (wages up to 135,000 per empl) 1.45-1. 290,970 4,219 SUI (wages up to 7,000 per employee) 3.503f, 126,000 4,410 FUTA (wages up to 7,000 per employee) 0.80'/„ 126,000 1,008 Worker's Compensation (wages excluding OT premium 14.34`;,, 256,635 36,801 Croup Insurance Long Term Disability (Unum .35% of wages) 0.35% 290,970 1,018 Employee Medical Insurance (Prudential HMO) 116.21 Per Mo./per empl 25,101 Emplovee Dental Insurance (Prudential Db1O 19.05 Per Mo./per empl 4,115 Life and AD&D (Prudential .33 per 1000/mo) 1,063 Other Benefits Sick Pay 100 Firs/ Year per empl 9,000 Holiday Pay 50 Firs/ Year per empl 4,500 Vacation Pay 100 Firs/ Year per empl 9,000 ESI Administrative Charges 300.00 Per Mo./per empl 64,800 Estimated Total Annual Cost To Agency 5451,546 EXHIBIT B AMBULANCE OPERATOR/FIRE INTERN POSITION Under direct supervision of the Company Commander, respond to both routine and emergency medical aid requests; participate in routine maintenance of apparatus and equipment; attend training sessions; and, do related work as required. EXAMPLES OF DUTIES Will be regularly dispatched to emergency scenes to assist in rendering aid to injured parties; will perform appropriate field procedures including EMT-1 level skills such as performing vital signs, bandaging, splinting, and assisting paramedics as needed; will drive ambulances and other vehicles as needed; will participate in station and equipment clean-up, training drills, hospital in-services; and, other duties as required. Employee will be required to participate in training deemed appropriate by City. QUALIFICATIONS "Training and Experience: Any combination of experience and education that would likely provide the required knowledge and abilities for the position of ambulance operator. A typical combination would be as follows: graduation from high school; experience in medical emergencies; and, other related knowledge which would indicate success in the position. Knowledge and Abilities: General knowledge of ambulance transportation procedures including first aid, resuscitator and gurney operations. Applicant should be in good physical condition suitable to performing the lifts and carries as required for the position. SPECIAL REQUIREMENTS • Must possess and maintain certification as an Emergency Medical Technician (EMT-I) as defined by the State of California with current CPR card. • Possess an ambulance attendant license from Orange County EMS prior to driving an ambulance. • Must maintain physical fitness requirements as prescribed by the Fire Department. • Possess a valid State of California driver's license, Class C. DESIRABLE EXPERIENCE • Presently attending or have graduated from a 240 hour fire academy which meets State of California requirements. • fire Science course work at the college level. J4142:cd/c:windows/agrmtesi • • ATTACHMENT 2 A New Approach To Local Agency Staffing Who is ESI? Employment Systems, Inc. is the latest member of the Berryman and Stephenson Industries group of companies. Berryman and Stephenson Industries. through its BSI Consultants. Inc. subsidiary ( 335 employees and annual revenues in excess of $25 million ) has been providing consulting services to governmental agencies throughout California and the West since 1975. ESI's management has extensive experience in providing services to governmental agencies and has held various department head positions in cities throughout California. ESI's main office and support staff are located in San Diego, California. Through our affiliation with BSI Consultants, Inc., we have seven additional offices in California and one office in the Seattle area. What are ESI's "Staff Privatization Services"? ESI provides flexible contract staffing arrangements. Any position in an agency (with the exception of those in police and fire departments), whether temporary or long-term, can be staffed using personnel who are employed and administered by ESI, and whose daily direction is received from permanent city staff or outside consultants contracted by the agency. Since ESI contract personnel are not permanent agency employees, an agency can easily adjust the size of its work force to meet its workload and budget constraints much more easily, and at a lower cost, than with permanent agency employees alone. What categories of personnel does ESI offer? ESI can arrange for contract personnel in any agency department, for any position except those in police and fire departments (sworn positions are excluded), and may be entry-level on up through experienced professionals. Our contract personnel can be utilized in: Accounting Flood Control Public Works Building and Safety Hazardous Materials Purchasing Building Inspection Hydrology Right of Way Data Processing Landfill Roads and Streets Engineering Mapping Sanitation Environmental Safety Permits Solid Waste Facilities Management Planning Telecommunications Finance Project Management Positions That Can Be Staffed Through ESI (Selected) Administrative Support General Services -Typists -Vehicle Maintenance Mechanics -Secretaries -Purchasers -Word Processors -Street/R.O.W. Maintenance Workers -Computer Operators/Programmers -Field Crews -Dispatchers -Meter Readers -Management Analysts -Equipment Operators -Refuse Collectors -Custodians Building Safety -Building Officials Legal -Plan Checkers -Paralegals -Inspectors -Assistants -Counter Technicians -Legal Secretaries Library Central Services .Administrators -Publications Workers *Clerical Workers -Printing Shop Workers -Librarians •Mail/Delivery/Clerical Workers Parks & Recreation City Clerk -Program Coordinators -Bid Processors -Instructors -Council Reporters •CIP Managers •Records Maintenance Workers Personnel •Policy Compliance Workers Code Enforcement -Recruitment Officers -Business License Clerks -Benefit Programs Managers -Ordinance Violation Enforcers -Animal Control Officers Planning (Current/Advanced) -Environmental Health Specialists -Senior Planners -Associate Planners -Assistant Planners Facilities Management -Technicians -Project Architects/Engineers -Project Managers Public Works -Construction Managers -City Engineers -Project Managers -Design Engineers Finance -Draftspersons -Account Clerks -Plan Checkers -Payroll Staffers -Inspectors -Budget Analysts -Transportation Planners -Cashiers -Surveyors Fire Redevelopment -Fire Prevention Analysts -Inspectors -Training Coordinators -Finance Administrators -Researchers/Study Writers _J What are ESI's obligations? • As the employer of record. ESI is responsible for all payroll, workmen's compensation, fringe benefits, and personnel related issues. Each account is assigned a specialist to work with agency management and our contract employees to ensure that all issues are addressed and that the agency is completely satisfied with all aspects of our contract services. All timesheet processing, tax deposits, compliance reporting, all benefit questions and planning Is handled by ESI and an 800 number made available to our contract employees for administrative purposes. All conduct related personnel problems are addressed by our staff directly with the employee. • Since ESI is the employer of record, we are responsible for any wrongful discharge or discrimination claims (including age, race, or sex), Department of Labor wage and hour disputes and labor law compliance such as COBRA and the Immigration Act. • On a bi-weekly basis, ESI submits one invoice to the agency for payment. • All payroll records, insurance policies and related records are available for inspection by the agency. What are the agency's obligations? The agency is responsible for: • Providing a work environment that is in compliance with all federal and state safety laws. • Providing work space, furnishings and tools. • Providing the daily direction and supervision of the contract employees ( an agency may wish to contract with a full-service consultant to provide this as a separate service, for a completely private sector" staffing solution), including performance monitoring and technical competency assessment. • Reporting of all conduct and performance problems to ESI's account representative. • Timely payment of ESI invoicing on a bi-weekly basis. What are some of the benefits to my agency? ESI's Staff Privatization Services can be implemented in a variety of creative approaches to accomplish the specific results that an agency is trying to achieve. Below are some of the typical benefits that can be realized: More control over labor costs Contract employees. whether hired for short-term assignments or to fill an on-going position, can be added to or deleted from the agency's work force much more easily than can permanent employees. This allows the agency to keep its labor cost in line with its workload and budget. Reduced administrative costs Since ESI is responsible for all payroll, workmen's compensation, fringe benefits, and personnel related issues, fewer agency support staff are required. Increased mob security for core agency staff ESI's contract employees provide a 'buffer zone- for your permanent work force. In the event of a shortage of funds or a reduction in workload, the agency can reduce the number of contract positions before permanent positions are affected. Extended probationary permod ESI does not charge a placement fee to convert a contract employee to a permanent agency employee. Because of this, staff can easily be hired on a contract basis, given an extended period to prove themselves, and the high performers converted to regular employee status. Increased productivity and motivation Contract employees have a built-in incentive to perform. Those who are not performing at acceptable levels risk being replaced more easily and quickly than a permanent employee. Further, most contract employees are likely to be interested in applying for permanent agency positions as they become available and, as a result, will be motivated to maintain a high level of performance. From our experience, productivity increases of 20 to 30 percent may be expected. Elimination of "employer" legal exposure Since ESI is the employer of record, we are responsible for any wrongful discharge or discrimination claims (including age, race, or sex), Department of Labor wage and hour disputes and labor law compliance such as COBRA and the Immigration Act. Agencies have been using specialized consulting firms to provide interim staffing for some time. How is the ESI approach different? Full service consulting firms have been in the business of providing experienced professionals on an interim or on-going basis to governmental agencies for a number of years. When agencies contract for such a service, they are purchasing the consulting firm's expertise in a given area and usually want the consultant to assume the liability for the quality of the work being performed. More reputable consultants usually carry errors and omissions insurance that protects the agency if the consultant makes a mistake. Consultants usually do not require any training and can move in quickly with a ready-made team to accomplish a specific project or fill a sudden professional level vacancy. ESI's contract staff fill the gap between a permanent agency employee and a full service consultant. In contrast to a consultant. ESI does not assume responsibility for the quality of work our contract employees perform. As ESI is not providing a professional service, we do not carry errors and omissions insurance. We do, however, make every effort to ensure that the agency is completely satisfied with all contract staff provided by ESI. Because ESI does not have the overhead structure or responsibility of a full service consultant, we are able to provide staff to the agency for about 550/6 of their cost. One strategy that we advocate calls for a core group of agency staff to provide leadership and direction, a group of ESI contract employees to provide production capacity, and an arrangement with a full- service consultant for specialized projects. This gives an agency a very flexible staffing approach and provides for access to additional expertise when necessary, at an overall lower cost than using a full- service consultant alone. If an agency wishes to provide a service without any involvement of agency personnel, arrangements can be made with a full service consultant to staff key positions and assume responsibility for the service being provided. Can ESI provide consulting services? ESI itself does not provide professional consulting services. However, we do have an arrangement with BSI Consultants. Inc. to provide professional consulting services when necessary. BSI Consultants, Inc. provides consulting services to governmental agencies in the areas of: Engineering Management Electrical Engineering Assessment Engineering Construction Services Landscape Architecture Surveying Building Safety Real Property Services Plan Check Wastewater/Water Transportation Flood Control and Drainage Computer Services Management Consulting Of course. ESI will work with any professional consultant that an agency is presently using. What does ESI's contract staffing cost? Billing rates for on-going positions are comparable with the cost of full-time permanent employees when all fringe benefit, insurance, administrative, and support costs are taken into account and are about 55% less than traditional full-service consultants. Rates for temporary positions are competitive with those of other specialized temporary services. Actual billing rates are determined after consideration is given to a number of factors including: • the number of positions that the agency is planning to staff • whether the position is temporary or on-going • the base pay of the individual involved • whether the position receives a full benefit package As an example: a full-time employee for an on-going position that is paid $ 20.00 per hour is offered to the agency at a billing rate of $ 38.00 per hour Including the cost of a complete fringe benefit package which we provide to the employee. If the employee does not receive a full benefit package, the billing rate is reduced accordingly. How is ESI's contract staff recruited and selected? There are a number of approaches that ESI uses to locate staff, each involving varying degrees of agency involvement. Option 1 ESI has an on going recruitment campaign to solicit government agency applicants with a variety of backgrounds and skills. We utilize a state-of-the-art "key word search" resume retrieval system to rapidly identify candidates based on requirements that you supply to us. The best resumes for each position are then furnished for your review. You identify one or more candidates for each position and we arrange a short interview for you to determine if there is an initial fit. Once you decide on the candidate, we employ them and have the individual report, to you for work. Candidates that do not meet your expectations are quickly replaced with those that do. Option 2 The agency can recruit for the individual using their regular process, but indicate that the opening is for a contract position with ESI. Depending on the preferences of the agency, resumes can be screened by the agency or furnished to ESI. As above, we will set up a short interview with the individual, and arrange for employment of the candidate you select. Option 3 The agency can identify an individual that it would like to employ on a contract basis. ESI can contact previous employees, or other individuals with whom the agency is already familiar, and make the necessary arrangements. Option 4 Agencies that are reconfiguring or desiring to shift a major portion of their workforce to a contract staffing arrangement may wish to lay off staff. ESI can arrange to contact departing agency employees and include them in the pool of individuals that the agency wishes to consider for contract positions. What about unions? The relationship between your agency and any unions that may represent your employees is something you should consider if you are planning to utilize ESI Staff Privatization Services for major portions of your workforce. Our legal counsel has determined that California cities and counties have authority to terminate and then contract for the services of employees for economic reasons, subject to their own charters, ordinances and rules, and if the agency is party to a collective bargaining agreement with its employees, subject to a requirement to bargain with unions representing employees to be terminated. Similar research for the State of Washington is pending. How does ESI begin work with an agency? ESI feels that each agency's needs are unique. As a result, we tailor our services for each agency. Before providing contract staff, we will meet with agency representatives to gain a thorough understanding of the agency's needs and objectives. If necessary, we can meet with agency management or city council members to facilitate the implementation of our services. Does your agency need to staff part-time professional and non-professional positions? It can be difficult to attract quality personnel for a part-time position. As a result, some agencies engage full-service consulting firms to staff part-time positions on an hourly or monthly retainer basis. While there are many merits to this approach, an agency may be able to further reduce their costs by staffing certain part-time positions through ESI's multi-agency staff sharing program. ESI can arrange to employ qualified staff and make them available to two or more agencies at a very affordable hourly rate. As an employee of ESI, "shared" employees receive a complete benefit package including vacation, sick, holiday and medical insurance programs. As with all our contract personnel. ESI is the employer of record and handles all payroll processing and personnel related issues. Employment Systems,lnc. (619) 451-0040 CERTIFICATbOF INSURANCE • ISSUE DA��TEIM//M/D33DIVV) - PRODUCER FTHTS-CERTIFICATEISHSSUED AS AAM'ATTER-OFINFORMA�fov &It,AND CHUCK COLLINS ( CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE 770 THE CITY DRIVE SOUTH, #6000 LPOLICIES BELOW. ORANGE, CA 92668 COMPANIES AFFORDING COVERAGE CO ' LETTERNY A NATIONWIDE MUTUAL INSURANCE COMPANY COMPANY B INSURED LETTER BSI / ESI CONSULTANTS INC. COMPANY 16880 W BERNARDO DR. LETTER C SAN DIEGO, CA 92127 COMPANY LETTER D COMPANY E LETTER THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REOUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS LTR DATE(MWDDIYY) DATE(MM/DDIYY) - GENERAL LIABILITY----_"- ------ - ------� — --- GENERAL AGGREGATE S COMMERCIAL GENERAL LIABILITY PRODUCTS COMPIOP AGG. $ CLAIMS MADE OCCUR. PERSONAL S ADV.INJURY S OWNER'S&CONTRACTOR'S PROT. EACH OCCURRENCE S FIRE DAMAGE(Any one lire) S N ED.EXPENSE(Any end Mason) $ AUTOMOBILE LIABILITY -- COMBINED SINGLE $ ANY AUTO LIMIT ALL OWNED AUTOS BODILY INJURY S SCHEDULED AUTOS (Per person) HIRED AUTOS BODILY INJURY ' NON-OWNED AUTOS (Per accident) $ GARAGE LIABILITY PROPERTY DAMAGE S EXCESS LUBILITV EACH OCCURRENCE S UMBRELLA FORM AGGREGATE $ OTHER THAN UMBRELLA FORM WORKERS COMPENSATION ----'__-_---- _-_-- -'y_ _-- X STATUTORY LIMITS WORKER'S 73WC005687-0004 12/31/92 12/31/93 EACH ACCIDENT s 1 ,000,000. AND EMPLOYERS'LIABILITY DISEASE-POLICY LIMIT S 1 ,000,000. DISEASE-EACH EMPLOYEE S1,000 000. OTHER -- - - - APPROVED AS TO FORD GAIL HUTTON CI T' a PTORNEY DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS Attorne NONE CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE CITY OF HUNTINGTON BEACH EXPIRATION DATE THEREOF. THE ISSUING COMPANY WILL EX9lWJ XXIXX 2000 MAIN ST MAIL DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE HUNTINGTON BEACH, CA 92648 KR ATTN: MICHAEL DOLDER 2SX&i1S3GTC3ipC%X �gX [7C�i&( e} }SIEXCX FIRE CHIEF AUTHORI PRESR IVE - ----- ----- ACORD 25-S (7/90) CAC00006RPORATION 1990 0 40 CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK September 13, 1993 Employment Systems , Inc. 11590 West Bernardo Court Suite 211 San Diego, CA. 92127 Attn: Anne Wigdahl Durning, Director - Professional Relations The City Council of the City of Huntington Beach at the regular meeting held Tuesday, September 7, 1993, approved an Agreement between the City of Huntington Beach and Employment Systems, Inc. , to supply personnel to the City. Enclosed is an executed copy of the agreement for your records. Connie Brockway City Clerk CB:bt Enc. (Telephone: 714-536.5227)