HomeMy WebLinkAboutCAG2019-429 - Extension - Kronos - 2021 HCMA Workforce Telestaff Software Renewal - 12/26/2020ApprovalOriginator:Department:
Date Sent:Date Required:
Authorized to Sign:
o Director or Designee o Mayor
Date of Council Approval:
Budget? o Yes o No
Grant? o Yes o No
Type:Review/Signatures/RoutingDate Received by City Attorney:Comments:
Date Routed to the Mayor’s Office:
Date Routed to the City Clerk’s Office:Agreement InformationVendor Name:Category:
Vendor Number:Sub-Category:
Project Name:
Project Details:
Agreement Amount:
Start Date:
Basis for Selection of Contractor:
Termination Date:
Local Business? o Yes o No*
*If meets requirements per KCC 3.70.100, please complete “Vendor Purchase-Local Exceptions” form on Cityspace.
Notice required prior to disclosure?
o Yes o No
Contract Number:
Agreement Routing Form
For Approvals, Signatures and Records Management
This form combines & replaces the Request for Mayor’s Signature and Contract Cover Sheet forms.
(Print on pink or cherry colored paper)
Visit Documents.KentWA.gov to obtain copies of all agreementsadccW22373_1_20
Budget Account Number:
DATE: June 2, 2020
TO: Kent City Council
SUBJECT: HCMA/Human Capital Management & Automation – Project
Budget, Contracts, and Change Orders - Authorize
MOTION: Establish a new budget for the HCMA project at $4.39 million;
authorize the Mayor to sign all contracts, change orders, and other
documents necessary to advance the HCMA project that cumulatively do
not exceed the project budget, subject to final terms and conditions
acceptable to City Administration and the City Attorney; ratify past actions
consistent with this motion; provide that future change orders beyond the
project budget, but within the overall City budget, be authorized according
to their amended contract values and in accordance with the Kent City
Code; and authorize the Mayor to sign contract renewals under the terms
of the project contracts within established budgets.
SUMMARY: The Human Capital Management and Automation (HCMA) project’s
primary objective is to systemically resolve the City’s human capital management
and automation “pay” related business process issues. Focus is placed on fixing and
improving Human Resources, Finance, Information Technology, and citywide
timekeeping workflows. Supporting this work will include the deployment of a new
business system technology platform - Workday, being implemented by
Collaborative Solutions, LLC, originally projected not to exceed $2.15 million. The
key business driver associated with HCMA is to minimize, and where possible
eliminate, sources of systemic process errors by implementing the necessary
measures to continually improve end-to-end personnel, employee benefits,
scheduling, timekeeping and payroll accuracy. This includes responsive time entry,
in-place and post-payroll processing.
There are two reasons for the increase in the project budget from the $2.15 million
Council established in October 2019 to the $4.39 million sought today: 1) actual
contract costs that came in higher than originally estimated, and 2) the reallocation
of planned (i.e. not unexpected) costs from other parts of the City budget to the
HCMA project budget.
The Council is familiar with public works projects, where an engineer or architect
estimates the cost, staff bids the project, and the low bid can come in under or over
the estimate. In addition, public works projects almost always have change orders
that increase costs during the construction phase and therefore the project budget
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usually includes a contingency. Technology projects are similar in that staff
estimates the cost, but actual contract costs can come in under or over the
estimate, resulting in projects that require change orders.
The original estimate for the Workday and Collaborative Solutions contracts was
$1.63 million and the actual contract costs came in at $2.79 million. A significant
reason for the contracts coming in over the original estimate is the vendors insisted
they include not only the cost of the capital project but future annual subscription
costs as well (3 full years). Therefore, staff needs to move expenses that were
expected to appear in future operating budgets into the HCMA capital project to
align with contract amounts.
The original estimate for change orders was $200,000 and change orders from
inception to date have totaled close to $300,000. The larger of the two change
orders moved the “go live” date from October to December 2020, in part due to
COVID-19-related scheduling challenges.
Other costs beyond ongoing subscriptions that staff did not expect to appear in the
project budget last fall include 1) a separate but closely related IT capital project
called Telestaff, and 2) costs associated with the IT project manager assigned to
the HCMA project. Telestaff at $106,400 integrates with Workday and makes the
system work more effectively for work groups with highly complex schedules and
pay calculations such as the City’s Police Department. The Mayor signed the
contract to originally acquire the Telestaff software, but Council approval is needed
to authorize the contract provisions that allow future renewals of the software at
the contracted for subscription cost. The IT project manager was originally included
in the IT operating budget. The position’s move into the HCMA capital project
budget is part of a larger reallocation that Council approved in the last budget
process that moved a portion of all IT project managers from the operating budget
to the appropriate capital project budgets consistent with best practices in
budgeting.
The original project budget also included funds to hire temporary limited term
and/or temporary staff to backfill current staff assigned to the project. The
estimate for this expense was $320,000 and the actual cost is forecasted at
$629,240. This includes partial coverage for the unexpected departure of the City’s
Accounting and Reporting Manager from the project/Finance department.
EXHIBITS:
1. Copies of the applicable change orders for Workday, Collaborative Solutions,
and Telestaff are included. The main contracts are voluminous and available
upon request.
2. US Communities Purchasing Cooperative Agreement
BUDGET IMPACT: The new budget for the HCMA project is being reestablished at
$4.39 million. Components of the budget include the Workday product at $982,763,
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Collaborative Solutions’ implementation services at $2,106,949 (including all
change orders to date), Telestaff at $106,400, staff backfill at $629,240, project
management at $160,000, and a contingency of $400,000. Funding will come from
a combination of IT Capital Fund Balance, IT Operating accounts along with several
other Capital resource funds.
SUPPORTS STRATEGIC PLAN GOAL:
Innovative Government - Delivering outstanding customer service, developing leaders, and
fostering innovation.
Evolving Infrastructure - Connecting people and places through strategic investments in physical
and technological infrastructure.
Thriving City - Creating safe neighborhoods, healthy people, vibrant commercial districts, and
inviting parks and recreation.
Sustainable Services - Providing quality services through responsible financial management,
economic growth, and partnerships.
ATTACHMENTS:
1. Collaborative Solutions C01-City of Kent (DOCX)
2. Collaborative Solutions_C02-City of Kent Revised (002) (DOCX)
3. Kronos_47948 CO - CITY OF KENT, TSG, Telestaff (PDF)
4. USC MICPA 11-8-2018 (PDF)
05/26/20 Committee of the Whole RECOMMENDED TO
COUNCIL BY CONSENSUS
RESULT: RECOMMENDED TO COUNCIL BY CONSENSUS
Next: 6/2/2020 7:00 PM
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Support Services Quote
Page 1 of 2
Quote Type:Subscription
Customer:CITY OF KENT
Solution ID:6164416
Payment Terms:Net 30 Days Contract #:1213615 S27-AUG-20
Currency:USD Date:02-SEP-2020
Customer PO Number:Prepared by:Judy Demers / US Subscription
Bill To:CITY OF KENT
220 4TH AVE S
KENT WA 98032-5838
UNITED STATES
Ship To:CITY OF KENT
220 4TH AVE S
KENT WA 98032-5838
UNITED STATES
Contact:MIKE CARRINGTON
Email:mcarrington@kentwa.gov
CONTRACT SUMMARY
Contract Period: 26-DEC-2020 - 25-DEC-2021
Description Support Services Estimated Tax Subtotal
Software Support Services 23,896.13 2,389.61 26,285.74
Educational Services 0.00 0.00 0.00
Total 23,896.13 2,389.61 26,285.74
Annualized Contract Value: 23,896.13
The Annualized Contract Value is the value of the contract if all services are priced for 365 days. The Annualized Contract Value does not include
estimated tax. Please note that this quote may include services priced for prorated periods.
IMPORTANT NOTES
Support Services are subject to applicable taxes. The tax amount shown on this quote is only an estimate. The actual tax due will be reflected on the invoice.
CITY OF KENT KRONOS INCORPORATED
Signature:_______________________________________________Signature:_______________________________________________
Name:___________________________________________________Name:__________________________________________________
Title:_____________________________________________________Title:____________________________________________________
Date:____________________________________________________Date:____________________________________________________
Dana Ralph
Mayor
09/18/2020
Support Services Quote
Page 2 of 2
Quote Type:Subscription
Customer:CITY OF KENT
Solution ID:6164416
Payment Terms:Net 30 Days Contract #:1213615 S27-AUG-20
Currency:USD Date:
Customer PO Number:Prepared by:Judy Demers / US Subscription
Bill To:CITY OF KENT
220 4TH AVE S
KENT WA 98032-5838
UNITED STATES
Ship To:CITY OF KENT
220 4TH AVE S
KENT WA 98032-5838
UNITED STATES
Contact:MIKE CARRINGTON
Email:mcarrington@kentwa.gov
SOFTWARE SUPPORT SERVICES
Line Support Service
Level Covered Product License
Count Start Date End Date Duration (days)
1 Subscription
Software Service WORKFORCE TELESTAFF BIDDING V7.1+240 26-DEC-2020 25-DEC-2021 365
2 Subscription
Software Service
WORKFORCE TELESTAFF ENTERPRISE
BUNDLE V7.1+240 26-DEC-2020 25-DEC-2021 365
3
Subscription
Software Service
Add on
WORKFORCE TELESTAFF ENTERPRISE
BUNDLE V7.1+240 26-DEC-2020 25-DEC-2021 365
Support
Services Estimated Tax Subtotal
Software Support Services 23,896.13 2,389.61 26,285.74
EDUCATIONAL SERVICES
Line Support Service
Level Covered Product License
Count Start Date End Date Duration (days)
1 ED Services
Subscription KNOWLEDGE PASS SAAS WFC SMB 26-DEC-2020 25-DEC-2021 365
Support
Services Estimated Tax Subtotal
Educational Services 0.00 0.00 0.00
City of Kent Purchase Order
Order number must appear on all invoices, packages, etc.
Order #
Order Date:
160242 OP
9/11/2020
This document is hereby deemed a valid purchase order and authorizes the procurement of
the materials and/or services indicated. Please let us know immediately if you are unable to
ship the complete order.
Ordered by:Lynnette R Smith
Info Tech-Administration
Ship to: City of Kent
Information Technology
400 West Gowe Street
Suite 122
Kent, WA 98032
Bill to: City of Kent
Accounts Payable
220 4th Avenue South
Kent, WA 98032
Phone: (253) 856-5230
Vendor: 2136461
Kronos Incorporated
900 Chelmsford St
Lowell, MA 01851
Payment Terms: Net 30
Line Item #Description Quantity Unit Cost Ext. Cost Sales Tax Total Cost
1 WF Telestaff SW Sub Rnwl (240) | Term:12/26/2020-12/25/2021 23,896.13 2,389.61 26,285.74
Approved by: Carrington, Michael Charles
Mayor's Signature: ________________________________________
(Required for contracts over $20,000)
Subtotal:23,896.13
Sales Tax:2,389.61
Total:26,285.74