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<br />REPORT <br /> <br /> <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />August 22, 2005 <br /> <br />Subject <br />Temporary labor Services <br /> <br />Recommendation <br />By Motion, approve Amendment No.2 to the agreement with Bay Span, Inc. of Vallejo, CA, <br />to modify language and extend the agreement through June 30, 2006. <br /> <br />Background <br />On April 30, 2005, the City Manager approved an agreement with Bay Span, Inc. for <br />temporary labor services in the amount of $60,000 through June 30,2005. On May 23, <br />2005, the City Council approved Amendment No.1 extending the agreement to December <br />31, 2005 at the same unit prices and increased the not-to-exceed amount to $190,000. <br /> <br />Shortly after the amendment approval, Bay Span changed liability insurance carriers. The <br />new insurance carrier has requested modifications to the language in the agreement. <br />Public Works Services staff worked with Bay Span, the City Attorney's office, staff with the <br />Bay Cities Joint Powers Assurance Authority and the City's Finance Director to develop <br />the language workable for both parties. The language proposed reduces the City's liability <br />coverage from Bay Span. However, temporary labor is directed by City staff and the level <br />of workers worksite liability risk with the temporary employees is similar to that of regular <br />full-time City workers in both opportunity and cause. Staff is able to manage the work <br />assignment of the temporary workers to minimize risk to the City. Staff believes the <br />agreement language and worker assignments present an acceptable risk level for the <br />City's liability protection. <br /> <br />Bay Span requested language acknowledging that their employees are under the <br />assignment of the City and that Bay Span has limited control over what the workers are <br />assigned to perform. This is the basis for the change in language request about <br />indemnification. Staff concurred with the wording request although could not reduce the <br />indemnity language as much as Bay Span requested. Additionally included in the <br />recommended language changes, the City will receive a waiver of subrogation for any <br />workers compensation injuries incurred by Bay Span workers. Staff believes this covers <br />the greatest risk to the City. <br /> <br />The Public Works Services Department utilizes temporary labor services to fill short term <br />gaps in full-time regular employee positions that are created by vacancies, budget <br />reductions, and/or seasonal peaks in work load. The temporary labor is used to <br />supplement the streets maintenance subprogram for seasonal leaf vacuum and the paving <br />crew which has been reduced to four regular employees (from eight in fiscal year 02-03). <br />Funds for temporary labor were approved by Council in the FY 05-06 Public Works <br />Services operating budget. <br /> <br />Temporary Labor Services Amendment2 <br /> <br />Page 1 of 2 <br />