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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 8.C Packet Pg. 28 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, 8.C Packet Pg. 29 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 8.C Packet Pg. 30 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