Report to: General Committee                                                     Report Date: March 19, 2009

 

 

SUBJECT:                          Extension of Contract 077-T-05 Adult School Crossing Guard Program

 

PREPARED BY:               David Porretta, Ext. 2040

                                            Tony Casale, Ext. 3190

 

 

RECOMMENDATION:

  1. THAT the report entitled “Extension of Contract 077-T-05 Adult School Crossing Guard Program” be received;

 

  1. And that the tender process be waived in accordance with Purchasing Bylaw 2004-341, Part 11, Section 7(1) c which states “when the extension of an existing contract would prove more cost-effective or beneficial; and,

 

  1. And That Contract 077-T-05 for Adult School Crossing Guard Program be extended for an additional five (5) years with” Staffing Services Inc.”;

 

  1. And That the following estimated costs be awarded to Staffing Services Inc (based on $12.83 per shift, 253.5 shifts per day, 187 school days, and an annual  3% increase);

 

Ř      Sep- Dec 2009 - $234,173.16

Ř      Jan - Dec 2010 - $615,224.93

Ř      Jan - Dec 2011 - $633,681.68

Ř      Jan - Dec 2012 - $652,692.13

Ř      Jan - Dec 2013 - $672,272.89

Ř      Jan - Jun  2014 - $420,970.21

 

  1. And That the estimated award for Sep – Dec 2009 in the amount of $234,173.16 exclusive of GST be funded from the 2009 Operating Budget # 640 998 5642 “School Crossing Guards”;

 

  1. And That the awards for 2010/11/12/13 & 2014 be subject to approval of the annual operating budgets;

 

  1. And That the actual annual monetary amount will be based on a per hour basis (two 30-minute shifts);

 

  1. And That Staff be authorized to amend the award amounts in years 2010 – 2014 to reflect changes to the crossing guard operating budget account approved by Council during the annual budgeting process.

 

AND THAT Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

 

 

1. Purpose       2. Background         3. Discussion        4. Financial      5. Others (Strategic, Affected Units)       6. Attachment(s)

 

 

PURPOSE:

To obtain approval to extend contract 077-T-05 for the Adult School Crossing Guard Program for a term of five (5) years.

 

BACKGROUND:

The Town of Markham has been contracting the Adult School Crossing Guard Program for the past 20 years and currently has 79 locations where school crossing guards are located.   During this period, “Staffing Services Inc.” has continuously been the successful proponent on all contracts released to the marketplace. In 2001, the Town released contract 001-R-01 to the market for which “Staffing Services Inc.” was the only bidder.  Once again in 2005, staff released contract 077-T-05 to the market for which “Staffing Services Inc.” was the only bidder.

 

The existing four (4) year contract approved by Council on June 14, 2005 with “Staffing Services Inc” will expire on June 30, 2009.  To continue this service in September 2009 and beyond, the tendering of a new contract is necessary or the Town has the option to negotiate with the current supplier under the Town’s Purchasing By-law.

 

This contract provides the Town with all aspects of administrating the Adult School Crossing Guard Program. This includes recruitment, payroll and day to day supervisory activities of the crossing guards.  Town staff ensure invoices are processed in a timely manner and resident concerns are responded to in an appropriate fashion.

 

Town staff has been satisfied with the performance of Staffing Services Inc. and is confident that they will continue to provide service that meets and/or exceeds the Town’s requirements.

 

OPTIONS/ DISCUSSION:

“Staffing Services Inc.” has provided exemplary service to the Town for the past twenty (20) years.  Currently, there are no other contractors within the Greater Toronto Area that have the ability to provide this service on such a scale. 

 

Most municipalities in the Greater Toronto Area that provide adult school crossing guard service manage their program internally.  Some municipalities have sizable programs (Mississauga – 200+ guards; Brampton – 160 guards) that require dedicated Municipal staff to oversee the program, including recruitment, training and supervisory duties.

 

Municipalities such as Aurora, Richmond Hill and Newmarket have expressed concerns with managing their program, due to the considerable resources required to manage the program internally, and are exploring the possibility of hiring a contractor to help mitigate these concerns.

 

 

 

 

 

 

Municipal Comparison

Below is a cost summary of comparable municipalities in the Greater Toronto Area which provide Adult School Crossing Guard Service.

Municipality

2009 Budget

# of Guards

Average cost per Unit/Year

Managed By

Brampton

$1,909,300

160

  $11,933   *

City

Vaughan

$797,655

91

  $8,765   **

City

Markham

$613,998

79

                $7,772 ***

Contractor

*     Includes one dedicated part-time supervisor and two assistants

**   Cost only includes crossing guard salaries, training & equipment

*** Includes all costs associated with administering the program

 

As identified above, the unit cost of the program in Markham is considerably less costly than that of both Vaughan and Brampton, which operate their program internally utilizing city staff forces.

 

Staffing Services Inc. Proposed Pricing for 2009 – 2014

* Number of Shifts / Day is subject to change due to school closure, crossing guard addition,        subtraction, etc.

** Estimated Annual Price is based on the fixed Unit Price per 30-minute shift

 

Staffing Services Inc initially proposed an increase of 18% to hourly rates for this contract extension compared with the previous contractual rates (Sept 2005 – June 2009).  This has been successfully negotiated down by Purchasing and Operations to 5% for the Sept – Dec 2009 period and a subsequent 3% year increase thereafter. Compared with the same period (Sept 2005 – June 2009), the Consumer Price Index (CPI) has increased by approximately 10% over these years.

 

Staffing Services Inc. has provided high quality, dedicated service to the Town of Markham for the past 20 years.  Their knowledge of the Town as well as their staff which are hired from the local community is an invaluable asset to communities in which they service.  Also, the financial cost is considerably less than other municipalities which manage their program internally.

Should the contract not be awarded to “Staffing Services Inc.”, the Town will be faced with three alternate options: (1) Manage the program internally, (2) Re-tender with the intention that the contractor can oversee the 79 locations currently being serviced, or (3) Cancel the program.

 

The financial cost of implementing Option (1) or (2) will be considerable, both financially and in terms of quality.  Running the program internally will require hiring additional staff to administer and oversee the program.  Also, the guards would be under the employ of the Town, further increasing costs.  If the Town were to re-tender, it is likely that no additional bids will be received due to the size and scope of the project.  This has been the case in previous tenders for this program.  If the Town were to cancel the program, several communities which have relied on school crossing guard service for the past 20 years will have busy pedestrian crossings without any supervision.

 

Regardless of which alternative option is chosen, the quality of the service currently being provided will be significantly reduced.  Also, any other actions to be taken would need to be executed immediately in order to ensure provisions are in place by September 2009.  This is simply not possible, given the scope of the program

 

The Town cannot afford to reduce the quality of service that is currently being provided.  Therefore, the Town is recommending that the contract be awarded to “Staffing Services Inc.”

 

FINANCIAL TEMPLATE

 

ALIGNMENT WITH STRATEGIC PRIORITIES:

The School Crossing Guard Program is a considerable asset to local families, neighbourhoods and the Town as a whole.  By improving safety for school children and encouraging parents to leave their vehicles at home, the program helps reduce traffic congestion on our streets while improving the health of our children and the environment.

 

DEPARTMENTS CONSULTED AND AFFECTED:

Purchasing and Operations have been in consultation during this process.

 

 

 

 

 

 

 

RECOMMENDED BY:

                                 

 

________________________                                                ________________________

Paul Ingham,                                                                             Peter Loukes,

General Manager, Operations                                                   Director, Operations 

 

 

 

________________________                          

Brenda Librecz, Commissioner,

Community & Fire Services

 

                                           

 

 

                                           

Q:\Finance\Purchasing\2009 File Management\Contract Management\094-S-09 Adult School Crossing Guard Program\Award Reports & Bid Analysis\094-S-09 Staff Award Report Final.doc