Chris Casale, Assistant Director of Parks & Leisure Services

Issue Statement:  On September 3, 2020, the City Commission awarded Invitation to Bid #063020 to Staffing Connection (R-2020-105) 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.  On September 22, 2021, the City Commission approved a mid-term contract amendment, R-2021-125 (Exhibit A), to allow a rate increase due to the State of Florida’s passage of Amendment 2 which approved mandatory annual increases to the State’s minimum wage through 2026.  The City’s first amendment to the contract did not change the contract term, only the contract rates.

The initial 2-year term will expire July 31, 2022.  Staffing Connection and the City wish to renew the contract.  This will be the first of three (3) 2-year renewal options for the period August 1, 2022 through July 31, 2024. Due to the yearly minimum wage increases set by the State of Florida in November 2020, the vendor is requesting increases each year of the contract (Exhibit B).  

Recommended Action: Staff recommends the City Commission adopt a resolution approving Staffing Connection's first renewal option and request to increase their billing rates from $13.52/hour to $14.87/hour beginning September 30, 2022, and to $16.23/hour beginning September 30, 2023, when minimum wage increases again, and authorizes the appropriate City officials to execute an amended renewal to the 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 in 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.

Staffing Connection was awarded Invitation to Bid #063020 for crossing guard services.  This amendment is the first 2-year contract renewal and two additional 2-year renewal options remain.  An amendment in 2021 was approved to the contract to increase the billing rate from $11.69 an hour to $13.52 an hour due to minimum wage changes.  The amended agreement in 2021 did not change the initial two-year contract term set to expire on July 31, 2022. 

Due to the minimum wage increases each year, the vendor is requesting an increase in the billing rate for each of the two years included in this renewal. Staffing Connection has a markup factor of 1.3521.  Minimum wage increases to $11.00/hour this year and then to $12.00/hour the following year, resulting in the new rates being requested in the amount of $14.87/hour beginning September 30, 2022, and $16.23/hour beginning September 30, 2023.

Crossing guard locations/levels will remain the same and will continue to be monitored to maximize efficiency. 

The City utilizes approximately 23,578 service hours a year.  The initial contract rate of $11.69 per hour billed was the equivalent to an annual cost of $275 thousand.  The first amendment to the agreement last year increased this billing rate to $13.52, the annual equivalent of $318 thousand.  

The proposed renewal has two different hourly billing rates, one for year 1 of the renewal term ($14.87) and one for year 2 ($16.23).  The annual cost for year 1 is anticipated to be $350 thousand and the estimated cost for year 2 is $382 thousand.  

The funding for this service to be provided during FY23 has been included in the proposed FY23 operating budget of the Parks & Leisure Department.

Staff recommends the City Commission adopt a resolution approving Staffing Connection's first renewal option and request to increase their billing rates from $13.52/hour to $14.87/hour beginning September 30, 2022, and to $16.23/hour beginning September 30, 2023, when minimum wage increases again, and authorizes the appropriate City officials to execute an amended renewal to the agreement.