April 20, 1999 AS-0

Honorable Board of Supervisors
County of Los Angeles
383 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, California 90012

Dear Supervisors:

AS-NEEDED SKILLED ACCOUNTING SERVICES

ALL SUPERVISORIAL DISTRICTS

3 VOTES

IT IS RECOMMENDED THAT YOUR BOARD:

PURPOSE OF RECOMMENDED ACTION

The Department of Public Works has a requirement for as-needed accounting services on a part-time and intermittent basis to assist its financial management operations for a period of one year. The approval of the above recommendation will allow the Department to supplement its current permanent fiscal workforce during this period of projected peak workload.

The Honorable Board of Supervisors
April 20, 1999
Page 2

JUSTIFICATION

The Department is implementing a new, Year 2000 compliant, Financial Accounting System (FAS) which will become operational on July 1, 1999. As the Department implements FAS, our workload will temporarily increase because of the new system's start-up requirements, the training of employees for its effective implementation, and the closing of Fiscal Year 1998-99 with the current accounting system. As there is limited time to complete all these additional tasks, the Department's current accounting staff is unable to perform these required tasks. Therefore, the Department needs personnel service companies to furnish as-needed accounting personnel to support our current staff and to meet any unknown contingencies during this transitional period.

FISCAL IMPACT

The amount for this contracted service shall not exceed $275,000 between the three recommended contractors. This amount is based on our estimated cost for this service. These contracts will be for a one-year term, commencing upon Board approval. The award of these contracts will have minimal impact on net County cost.

One or all of these contracts may be canceled or terminated at any time by the County without cause upon giving at least 30 days' written notice to the contractor(s).

FINANCING

Funds have been included in the Department's 1998-99 Internal Service Fund budget to cover the one-year estimated cost of $275,000 for this service.

FACTS AND PROVISIONS/LEGAL REQUIREMENTS

Contracting for this service is authorized in Government Code Section 31000.4.

The Honorable Board of Supervisors
April 20, 1999
Page 3

The required Comprehensive General Liability insurance certification, naming the County of Los Angeles as additional insured, and evidence of Workers' Compensation insurance will be obtained from the contractors before any work is requested.

The contracts have been properly executed by the contractors and County Counsel has approved them as to form.

CONTRACTING PROCESS

On February 1, 1999, the Department solicited proposals from 321 independent contractors and community business organizations. Also, a notice of proposal availability was placed on the Office of Small Business' Internet Website and an advertisement was placed in the Los Angeles Times.

On February 24, 1999, twelve proposals were received. An Evaluation Committee from the Department's Fiscal Division staff evaluated each proposal. The evaluation was based on criteria outlined in the Request for Proposals which included proposers' experience, capabilities, and pricing. Based on this evaluation, it is recommended that contracts be awarded to the three most responsive contractors: PDQ Personnel Services, Inc., located in Los Angeles, JM Staffing, Inc., located in San Dimas, and Headway Corporate Staffing Services, located in Montebello. Two proposers were found nonresponsive as they either submitted no pricing or incomplete pricing.

This contract contains the Board-ordered contract term regarding contract termination for improper considerations.

The Department has confirmed that the District Attorney has received the contractors' Principal Owners Information Forms in compliance with Los Angeles County Code Chapter 2.200 (Child Support Compliance Program).

The Honorable Board of Supervisors
April 20, 1999
Page 4

The requirements contained in the Director of Personnel's April 2, 1997, letter regarding personnel service contracts have been met. One of these requirements directed consultation with affected employee unions and the Chief Administrative Office's Employee Relations. On February 2, 1999, we sent a letter outlining our needs for this service, along with a copy of the Request for Proposals to SEIU Local 660. Subsequent meetings were held with Local 660 in March and April. Local 660 did not express any objection to these proposed contracts. Copies of our February 2, 1999, letter to Local 660 and our Request for Proposals were also supplied to Employee Relations and the Department of Human Resources.

As these contracts are for personnel services, they contain the GAIN requirements as directed by your Board and outlined in the Director of Personnel's July 28, 1997, letter to each department head.

Enclosure A reflects the minority participation of all 12 proposers. The contractors were selected upon final analysis and consideration without regard to race, creed, gender, or color.

We will alternate between these contractors giving each contractor equal opportunity to provide the requested personnel. We will select the contractor that can most promptly and economically meet our needs.

We confirmed with each contractor that they will be paying all employees assigned to this work an hourly wage greater than $7.75 which meets your Board's interim policy for service contracts pending your consideration of the living wage ordinance.

IMPACT ON CURRENT SERVICES (OR PROJECTS)

Award of these contracts will not affect County personnel as these services are required on an intermittent and as-needed basis to alleviate the peak workload created in our establishing FAS.

The Honorable Board of Supervisors
April 20, 1999
Page 5

NEGATIVE DECLARATION/ENVIRONMENTAL IMPACT REPORTS

Not applicable.

CONCLUSION

Please have the original of these contracts and one copy signed by the Chairman. Please return each contractor's copy to this office, together with conformed copies for the Department's files. The fully executed originals should be retained for your files.

One approved copy of this letter is requested.

Respectfully submitted,

HARRY W. STONE
Director of Public Works

AHF
P:\ASPUB\CONTRACT\TONY\ACCOUNTS\BLSAS.11

Enc. 10

cc: Chief Administrative Officer

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