Issue Statement:  On September 3, 2020, the City Commission awarded Invitation to Bid #063020 to Waterford Florida Staffing, LLC D/B/A Staffing Connection for an initial contract term of two (2) years beginning August 1, 2020, and ending July 31, 2022, with an option to renew for three (3) additional 2-year periods (R-2020-105).  

The second 2-year renewal is set to expire July 31, 2026 (Exhibit A).  Staffing Connection and the City now wish to renew the contract with amended contract rates for the third, and final, 2-year renewal period beginning August 1, 2026, through July 31, 2028.

Due to the State of Florida mandated minimum wage increase for fiscal year 2027 from $14.00 to $15.00 per hour, adopted by the State in November 2020, the vendor is requesting an increase for the first year of this renewal, with the rates remaining the same for the second year (Exhibit B).  

Recommended Action: Staff recommends that the City Commission adopt a resolution authorizing the appropriate City officials to execute the third and final renewal and amendment of the agreement for school crossing guard services for the period August 1, 2026 through July 31, 2028, at the rates stated in the amended agreement.

Background:  In November 2020, Florida Minimum Wage was adjusted pursuant to the passage of Amendment 2.  The approved Constitutional Amendment was designed to progressively increase the state minimum wage from $8.56/hour in 2020 to $15.00/hour by September 2026, through annual increases of $1.00/hour. The first wage adjustment became effective September 30, 2021, establishing a $10.00/hour minimum wage, and each year since Florida's Minimum Wage has increased by $1.00/hour.

Staffing Connection was awarded Invitation to Bid #063020 for school crossing guard services.  This amendment renewal is the third and final 2-year contract.

Due to the minimum wage increase, the vendor is requesting an increase in the billing rate for the first of the two years included in this renewal. Staffing Connection currently has a markup factor of 1.38.  Florida State minimum wage increases to $15.00/hour on September 30, 2026, the last of the increases to minimum wage.  As a result of the change, Staffing Connection is requesting, as part of the renewal, a new hourly rate in the amount of $20.70/hour beginning September 30, 2026.  This rate will remain the same throughout this 2-year renewal as long as minimum wage does not increase.

The City utilizes approximately 24,000 service hours annually.  The proposed renewal has a billing rate of $20.70.  The estimated annual cost for FY27 is $496,800.  This will be the same estimated cost for FY28 barring any mandated minimum wage increases.

The funding for this service during FY27 has been included in the proposed FY27 operating budget of the Parks & Leisure Services Department.  Funding will be available once the proposed budget is approved in September.