The contract would be for 3 years at the bid price, with two 1-year renewal options. Should there be increases beyond the end of the contract term, Council will be notified and the amount will be reflected in future operating budgets.

Post-Retirement Benefits

These savings have been calculated on the basis of the seven (7) RFT positions being eliminated if caretaking is contracted out in Phase II. Should the positions to be replaced internally, the replaced positions would be eligible for post retirement benefits up to the age of 65. Based on past actuarial calculations, the present value savings for each position is approximately $13,000. With seven (7) regular full-time positions not being replaced, this would result in an additional approximate savings of $91,000 that has not been included in the table above.

For the purpose of simplicity, only the first generation of these job replacements have are included in this calculation. However, these savings are recurring for each generation of employees following the previous group’s retirement.

Consultations:

Adrian Busa, Manager, Facility Operations

John Lechicky, Manager, Employee Relations

Mark Spizzirri, Manager, Operating Budget Control & Financial Administration

Tracey Ou, Financial Planning Administrator, Facilities

Alex Vucinic, Manager, Purchasing

Conclusion:

Council directed administration to proceed with the phasing of contracting out caretaking services. The RFP for Phase II of contracting out caretaking services at City hall results in a substantial annual savings to the City. Depending on the attrition rate, the retention of the one staff member could result in “one time” incremental costs to the city, as in prior outsourcing efforts. Administration continues to act at the direction of City Council on this matter.

Should Council elect not to approve award of the contract, a recruitment will need to take place immediately to fill the current vacancies in order to continue providing an adequate level of service for cleaning and maintaining the facilities.