To: Mark R. Hafner, City Manager
From: Aaron Rector, Director of Administrative Services
Subject:
Title
Consider a resolution of the City Council of the City of Keller, Texas, approving an agreement with ADP, Inc. for Workforce Now Payroll Solutions and Workforce Now HCM Solutions in accordance with terms of the Omnia Partners purchasing cooperative; and authorizing the City Manager to execute all documents and relating thereto on behalf of the City of Keller, Texas.
Action Requested:
Consider a resolution of the City Council of the City of Keller, Texas, approving an agreement with ADP, Inc. for Workforce Now Payroll Solutions and Workforce Now HCM Solutions in accordance with terms of the Omnia Partners purchasing cooperative; and authorizing the City Manager to execute all documents and relating thereto on behalf of the City of Keller, Texas.
Background:
The City currently uses Tyler Technology’s Incode 10 for personnel management, Tyler Technology’s Execu-Time for time-keeping, Taleo for recruiting, and a phone-in system for open enrollment. Prior to implementing Incode 10, the City used STW for some limited personnel management and ADP for time-keeping. While Incode 10 personnel management has been an improvement from STW, the Execu-time software has payroll calculation errors each payroll as it is still being developed, it lacks easy import into Incode, and is not user-friendly. Taleo is the current on-line recruiting web system and the vendor no longer provides support for it. The City either has to replace the software or continue using it no updates. While the City has budgeted for an on-line open enrollment option, it has used a phone-in option for employees which has led to data input errors the past two years. Prior to the phone-in option, the City used paper open enrollment forms which were submitted to Human Resources (HR) for processing.
The proposed Payroll Solutions and HCM Solutions would provide a fully integrated payroll and HR suite that would include time-keeping, payroll, personnel management, recruiting, and open enrollment. The City has used a ADP time-keeping product prior to Incode, however, this suite is a different product as it is focused on a complete personnel management, not just time-keeping. In addition to improving the time-keeping user issues, it provides HR with much needed modern software for faster recruiting reviews and better reporting functionality. HR will be able to provide quality customer service from application to hiring and retention with the proposed system. All modules of ADP are required to have the full-funcationality and to eliminate import concerns. This would also remove the Incode personnel management module and ADP would import directly to the General Ledger.
Financial Impact:
The annual cost is $47,800.90 and implementation costs are $5,475 for a total first-year cost of $53,275.90. The current contract terms with Omnia Partners allows for two one-year renewals for a total contract cost of $148,877.70. The purchase would reduce the cost of Incode 10 and remove Taleo and on-line enrollment software for an estimated annual savings of $29,902. The net budget increase would be $17,898.90. Funds are available in the Information Technology Fund.
Citizen Input/Board Review:
N/A
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial