Long Beach Municipal Code Div. III Private Work or Services Contracts

The City Council, based upon the respective findings set forth in this Section, determines that the following work or services to be contracted for can be performed by a private contractor as efficiently, effectively and at an estimated lower cost to the City than if said work or services were performed by employees of the City and declares that it has considered all other relevant factors and has determined that the performance of said work or services by a private contractor will not be detrimental or adverse to the best interests of the citizens of the City:

A. Coordination of the State Immunization Grant Program at the City's Health Department. Findings: The City Health Department has operated an immunization program under a special grant for the State since 1975. In July, 1978, the City, at the specific request of the State, created a civil service job classification of Immunization Program Coordinator to assure the proper coordination of said program. The State has informed the City that it will no longer approve a full-time coordinator for said program. In order to maintain the same level of service and satisfy State requirements, it is necessary to hire a coordinator of said program on an hourly contract rate basis and to eliminate the civil service job classification of Immunization Program Coordinator.

B. Elevator Maintenance and Repair. Since 1980, elevator maintenance work and services for all City facilities has been performed by private contractors. Prior to that time, the Public Service Bureau and the Civil Service Commission made a concerted effort to recruit employees to perform said work and services, but were unable to obtain qualified applicants, due to the large disparity between City and union wage rates, which disparity could not and cannot be overcome without impacting other crafts and supervisor pay rates. The elevator maintenance and repair work performed by a private contractor heretofore has been as efficient and effective as if said services were performed by City employees. Further, formal bids have been received for elevator maintenance and repair for those City facilities other than City Hall. Based thereon, the annual cost to the City if said work and services were performed by private contractor is approximately fifty-four thousand seven hundred dollars ($54,700.00); said annual cost if performed by City employees is approximately one hundred seventy-one thousand dollars ($171,000.00). Therefore, there is a cost savings in excess of one hundred sixteen thousand dollars ($116,000.00) if said work and services are performed by a private contractor rather than by City employees.

C. Starter Services for City Golf Courses. Findings: The continued use of City employee starters will cost two hundred ninety-three thousand dollars ($293,000.00), plus administrative costs, for fiscal year 1981—1982. Based upon the low bid received, contracting with the low bidder to provide these services will cost one hundred thirty-five thousand dollars ($135,000.00) per year, which represents an annual savings of one hundred fifty-eight thousand dollars ($158,000.00) for fiscal year 1981—1982, which annual savings will increase each ensuing year as the cost of providing these services by City employees increases. Furthermore, the low bidder offers a more effective and efficient service than can be provided by City employees. Contracting with the low bidder to provide these services also will enable the City to retain the present golf fees, which would have to be increased in the near future if these services continued to be provided by City employees.

D. Long Beach Convention and Entertainment Center. Findings: Pursuant to an agreement with the State of California dated September 12, 1974, the Long Beach Convention and Entertainment Center ("Center") and the revenues to the City from the operation thereof have been dedicated to and are a part of the Tidelands Trust. Since the dedication and opening of the Center in January, 1978, the operating expenses and parking authority and Gas Department revenue bond debt service obligations of the Center have exceeded the revenues for the same period. The deficits are due in part to the cost of work and services performed by City employees. At the direction of the City Council, the City Manager, on June 17, 1980 and December 16, 1980, solicited proposals for a qualified private contractor for the management of all operations and activities at the Center. None of the proposals received from either solicitation were responsive to the City's requirements and were rejected by the City Council. On April 14, 1981 the City Council authorized the City Manager to enter into negotiations to determine if an agreement for the assumption of operational activities at the Center by a private contractor could be structured which would be acceptable to a private contractor. Such an agreement has been negotiated, which by its terms provides a total labor cost saving to the City over the five (5) year term of the contract of two million two hundred fifteen thousand dollars ($2,215,000.00). It is, therefore, found and determined that the Center can be operated as efficiently, effectively, and at a lower estimated cost by a private contractor rather than City employees.

E. Rehabilitation Treatment Services. Findings: The City Health Department has operated alcohol rehabilitation, drug rehabilitation and drinking driver programs for several years. Federal, State and County budget cuts, along with increased costs, make it impossible for those programs to operate in a self-supporting mode. Attempting to reduce expenditures by decreasing staff created the cyclical problem of reducing service units generated, which in turn reduces revenues. Based upon the low bids submitted for case management services and the rates negotiated for professional services for the conduct of these programs for the period from October 1, 1982 to October 1, 1983, it has been determined that these services can be performed at a lower cost to the City through the use of private contractors than if said services or work were performed by employees of the City. If after the expiration of such contracts the City Manager determines that it would be in the best interests of the City to continue to provide these services through private contractors, the City Manager shall submit detailed comparative cost data and other relevant information to the City Council pertaining to the continued performance of such services by private contractors so that the City Council may determine whether the findings stated herein continue to exist in order that such contracts may be authorized by the City Council.

F. Long Beach Museum of Art. Findings: Pursuant to a minute order adopted by the City Council at its meeting of July 24, 1985 the City entered into an "Agreement Delegating Authority for Maintenance and Operation of the Long Beach Museum of Art" with the Long Beach Museum of Art Foundation, a California nonprofit public benefit corporation. That agreement has two (2) terms, a development term and a management term. The development term commenced upon the signing of the agreement and contains certain conditions precedent which must be satisfied before the management term can begin. In fulfillment of one (1) of the conditions the Foundation has submitted a five (5) year development plan which clearly demonstrates that the services can be performed by the Foundation as efficiently and effectively as if the services were performed by employees of the City. Considering other relevant factors such as the proposed increase in spending on acquisition of artwork and exhibitions as well as the contemplated endowment for new facilities, it is determined that performance of said services by the contractor will not be detrimental or adverse to the best interests of the citizens of the City; in fact, it would be beneficial. It would cost the City a minimum of two million two hundred six thousand two hundred fifty dollars ($2,206,250.00) to maintain and operate the museum for the next five (5) years. Under the contract, the City would pay the Foundation three hundred fifty-seven thousand six hundred twenty-one dollars ($357,621.00) per year or one million seven hundred eighty-eight thousand one hundred five dollars ($1,788,105.00) for five (5) years which is a minimum savings of four hundred eighteen thousand one hundred forty-five dollars ($418,145.00). Therefore, it is found and determined that the Foundation can perform, operate and maintain the Long Beach Museum of Art at an estimated lower cost than if the work were performed by City employees.

(Ord. C-6335 § 1, 1987; Ord. C-6183 § 1, 1985; Ord. C-5888 § 1, 1982; Ord. C-5758 § 1, 1981; Ord. C-5752 § 1, 1981; Ord. C-5718 § 1, 1981; Ord. C-5628 § 1, 1980; Ord. C-5619 § 1, 1980; prior code § 2900)