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HomeMy WebLinkAboutStaff Report 4.A 03/16/2015DATE: March 16, 2015 Agenda Item #4.A TO: Honorable Mayor and Members of the City Council through the City Manager FROM: Dianne Dinsmore, Director of Human Resources !V SUBJECT: Resolution Authorizing the Purchase of the Tyler/Eden Human Resources and Benefits Module and Authorizing the City Manager to Execute all Documents Necessary to Complete the Transaction RECOMMENDATION It is recommended that the City Council adopt a Resolution Authorizing the Purchase of the Tyler/Eden Human Resources and Benefits Module and Authorizing the City Manager to Execute all Documents Necessary to Complete the Transaction. The City currently utilizes a Human Resources data management system, HR Source, to store and manage a wide range of employee information such as job title, salary step, demographics, status, emergency contact information, supervisor, department and division, etc. The system is built on Microsoft Access and is not integrated with the City's Eden/Tyler Technologies system which includes financials, budgeting, payroll, permitting and other functions. Human Resources, Payroll and Finance, therefore, maintain spreadsheets to capture and reconcile data, a highly inefficient process which introduces increased risk of error. This action authorizes the City Manager to purchase and implement the fully -integrated Human Resources and Benefits Module of Eden. Since 2008, Human Resources staffing has been reduced from five positions to 3.6. Automation is a key factor in enabling Human Resources to provide timely service with reduced staffing. The use of a separate Human Resources Information System (HRIS) creates redundancy since a number of data fields must also be entered in the Eden payroll module. This duplication of effort also introduces increased risk of data entry errors. Efficiencies are achieved through employee self-service. The proposed system will allow employees or an employees department to update their information online, meaning neither Human Resources nor Payroll has to spend time or risk making data entry errors on these changes. Eden's HR and Benefits module is designed to integrate with Eden's payroll and financial systems seamlessly. All data will be available within one system. When an employee is separated from employment, the data entered in the HR module will flow to payroll and automatically prorate premium pays for final paychecks. Similar to the invoicing process in the Financial module, Personnel Action Forms (PAF) will be created and routed for approval electronically. PAFs are used to hire, promote, terminate, transfer, provide step increase, grant special pays and any other number of actions associated with employee status and compensation. Once approved, the data will be available to payroll immediately. Currently, PAFs are created on paper, then routed for signature by the Department Director, Human Resources, Finance and the City Manager. This process is cumbersome and time consuming. At times, PAFs are lost in the processing and therefore a new PAF must be generated and re-routed. As a result, PAFs do not always reach payroll in a timely manner, which necessitates manual generation of retroactive payment, another time-consuming task. Implementation of the HR and Benefits Module will eliminate this problem. The Benefits Module will automate benefits enrollment, open enrollment and benefit changes. Like timecards, an employee goes online to enter information. Once an employee has elected his/her benefits, those selections will flow to payroll and automatically adjust the employee's deductions or cashback accordingly. Automation of this process will significantly reduce Human Resources and Payroll staff time currently allocated to processing benefits. As of 2016, employers are mandated to report detailed information, not only for employees but also their dependents, to the Federal Government to comply with the Affordable Care Act. Payroll is responsible for this reporting, but the data required for the reporting is maintained by Human Resources. Implementing the HR and Benefits module will make the necessary information available to Payroll and automate the reporting process through the Payroll system, which will generate the new IRS Forms 1094 and 1095 reporting in the appropriate format. A critical role of the IT Division is to ensure continued business operations in the event of and in the days following disaster. This often involves the creation of a redundant system at a second location. For example, the financial system currently resides on servers at City Hall, and a redundant system is ready for operation if needed, at a remote location. Currently, there is no redundant setup for the Human Resources system. Moving to Eden HR and Benefits module would allow us to take advantage of the Eden financial system's existing hardware setup to similarly have a back-up for HR operations. This purchase meets the criteria for sole source as the City already uses the Tyler/Eden system, and the HR and Benefits module is designed to interface seamlessly with the current platform system with no external interface required. Staff recommends that the Council adopt the attached Resolution, Authorizing the City Manager to execute all documents necessary to complete the transaction for the amount of $30.276. FINANCIAL IMPACTS Total cost, inclusive of travel, is estimated at $32,276. No additional appropriations are necessary to fund the software costs. Purchase of Tyler/Eden is funded by 1100.11400 in the amount of $15,276 from the Finance Department, and 7300.73100 in the amount of $15,000 from the IT Division. Both amounts are already within the 2014-2015 fiscal year budget. Implementation of this proposed project will result in savings to staff for human resources and benefits activities, allow savings in ongoing maintenance costs, and improve staff workflow for maintaining personnel related transactions. ATTACHMENTS 1. Resolution Authorizing the Purchase Including Exhibit A Tyler/Eden quote 427889 2. Sole source justification 3 Attachment 1 Resolution No. 2015 -XXX N.C.S. of the City of Petaluma, California RESOLUTION AUTHORIZING THE PURCHASE OF TYLER/EDEN HUMAN RESOURCES AND BENEFITS MODULE AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO COMPLETE THE TRANSACTION WHEREAS, the City of Petaluma's Human Resources data management system, HR Source, is not integrated with the City's Eden/Tyler Technologies system which includes financials, budgeting, payroll, permitting and other functions; and WHEREAS, the use of a separate Human Resources Information System (HRIS) creates redundancy, duplication of effort and increased risk of data entry errors and significant manual handling of data and forms.; and WHEREAS, the current HRIS does not support mandated reporting under the Affordable Care Act; and WHEREAS, This purchase meets the criteria for sole source as the Eden Human Resources and Benefits Module ("Eden system") is the same software used for the City's financial system and therefore will integrate seamlessly with the human resources and the financial systems; and WHEREAS, the implementation of the Human Resources and Benefits Module will significantly reduce Human Resources and Payroll staff time, achieve efficiencies, reduce errors, and support mandated reporting; and WHEREAS, the City has obtained a cost quotation from Tyler Technologies for the Eden system which was previously competitively bid and awarded through the National Joint Purchasing Alliance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma as follows: 4 I . The City Council authorizes the City Manager to execute purchasing documents to acquire Human Resources and Benefits software, training and consulting services and one year of annual maintenance from Tyler/Eden not to exceed the sum of $30,276, plus travel costs and applicable sales, personal property or other similar taxes, as outlined in the Sales Quotation from Tyler Technologies dated January 12, 2015 and attached hereto as Exhibit A. 5 Sales Quotation For: Tim Williamsen Mr. Phone: (707) 778-4573 City of Petaluma PO Box 61 Fax: Petaluma, CA 94953 Email: timw rilci.petaluma.ca.us 1 Software HR-HRIS-SW-D HR -W B 6E -S W- D 2 Services Consulting Exhibit A Iluman Resources - Sothvare 1.00 511,200.00 $11,200.00 $2,240.00 58,960.00 efit Enrollment Web Extension - 1.00 $5,000.00 $5,000.00 $1,000.00 54,000.00 Sofhvare Total: Total: $3,240.00 $12,960.00 IIR-(IRIS-CS-D Human Resources - Consulting 1.00 51,200.00 51.200.00 $0.00 51,200.00 Training I-IR-HRIS-TR-D Conversion I1R-IIRIS-CV-D 000 ofPetaluma Total: $1,200.00 HumanResources- Training 7.00 51,200.00 58,400,00 50.00 58,400.00 Total: $8,400.00 Human Resources - Conversion 1.00 54,800.00 Quoted By: Christina Hendrickson 0000 tyler Date: 01/12/2015 Quote Expiration: 04/30/2015 M X. " Quote Name: HR and Benefits Enrollment Web Quote Number: 27889 Sales Quotation For: Tim Williamsen Mr. Phone: (707) 778-4573 City of Petaluma PO Box 61 Fax: Petaluma, CA 94953 Email: timw rilci.petaluma.ca.us 1 Software HR-HRIS-SW-D HR -W B 6E -S W- D 2 Services Consulting Exhibit A Iluman Resources - Sothvare 1.00 511,200.00 $11,200.00 $2,240.00 58,960.00 efit Enrollment Web Extension - 1.00 $5,000.00 $5,000.00 $1,000.00 54,000.00 Sofhvare Total: Total: $3,240.00 $12,960.00 IIR-(IRIS-CS-D Human Resources - Consulting 1.00 51,200.00 51.200.00 $0.00 51,200.00 Training I-IR-HRIS-TR-D Conversion I1R-IIRIS-CV-D 000 ofPetaluma Total: $1,200.00 HumanResources- Training 7.00 51,200.00 58,400,00 50.00 58,400.00 Total: $8,400.00 Human Resources - Conversion 1.00 54,800.00 54.800.00 $0.00 54,800.00 Total: $4,800.00 Total Total Total Total Total Other Consulting: Training: Conversion Services: Services: Services: $0.00 $1,200.00 $8,400.00 $4,800.00 $14,400.00 Total Total Training Consulting Days:7 Days:1 6 Page 1 of 2 3 Maintenance HR -IMS -SP -D Human Resources -Support 1.00 52,016.00 $2,016.00 $0.00 52.016.00 HIR-WBBE-SP-D Benefit Enrollment Web Extension - Support 1.00 5900.00 $900.00 50.00 5900.00 Total: Total: $0.00 $2,916.00 Summary Fees Maintenance Total Software $12,960.00 $2,916.00 Total Services $14,400.00 Summary Total $27,360.00 $2,916.00 Comments Tyler's quote contains estimates of the amount of services needed, based on our preliminary understanding of the size and scope of your project. The actual amount of services depends on such factors as your level of involvement in the project and the speed of knowledge transfer. Prices submitted in the quote do not include travel expenses incurred in accordance with Tyler's then -current Business Travel Policy. In the event Client cancels services less than two (2) weeks in advance, Client is liable to Tyler for (i) all non-refundable expenses incurred by Tyler on Client's behalf, and (ii) daily fees associated with the canceled services if Tyler is unable to re -assign its personnel. For existing EDEN Clients, the fees are billed as follows: - 100% of Application Software License Fees upon delivery of the software products - I00%of the Year 1 Application Software Maintenance Fees are billed upon Initiation (first day of training) - Conversion will be invoiced as fixed fee. - Consulting, Training Services and associated expenses as provided/incurred. Payment is due within 30 days of invoice receipt. Quote is subject to existing Contract. Customer Approval: Print Name: All primary values quoted in US Dollars Date: P.O. #: 7 City of Pelahima Page 2 of 2 Attachment 2 CITY OF PETALUMA, CALIFORNIA PROCUREMENT SOLE SOURCE JUSTIFICATION DATE: 3/2/15 DEPARTMENT HR/ITD/Finance CONTACT Dianne Dinsmore TELEPHONE: x343 VENDOR: Eden/TylerTechnologies TELEPHONE: 1-800-328-0310 JUSTIFICATION (Initial all entries that apply) 1. Amount of purchase does not exceed current dollar amount required for formal bidding. _(Q� 2 Vendor is the original equipment manufacturer; there are no regional distributors. X W� 3 The parts/equipment are not interchangeable with similar parts of another manufacturer. 4 This is the only equipment that meets the specialized needs of the department and performs the intended function. 5 Detailed justification is available which establishes beyond doubt that the Vendor in the only source practicably available to provide the items or service required. I recommendt}x t competitive procurement be waived, and that the equipment and/or supplies on t e I ttgAed Procurement Request be purchased as a Sole Source. Signed: Date: Approvals: Purchasing 0er: _ Date:--='—�—� 0