SR-112895-6h
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CM: ISD .JW:J M .server3\share\payroll. 01 NOV 2 8 1995
Council Meeting November 28, 1995 Santa MOnica, CalIfornia
TO Mayor and CIty CouncIl Contract NC. 7/14 (ccs)
FROM: City Staff
SUBJECT Recommendation to Authorize the City Manager to negotiate and execute
a contract with Peoplesoft, Inc for a human resources and payroll
computer system.
INTRODUCTION
This report recommends that the City Council authorize the City Manager to negotiate
and execute a contract with Peoplesoft, Inc for an automated human resources and
payroll computer system. This system will replace the city's current automated payroll
system,
BACKGROUND
The city's current payroll system IS an outdated collection of programs written In
several dIfferent languages The core of the system IS more than twenty years old.
This system IS diffIcult to maintain because of the outdated programming languages
and file structures that It uses
Some features requested by the Personnel or Finance Departments cannot be
Implemented With the current system For example the current system limits us to
100 different pay codes, Personnel would like to have many more than that avaIlable
to them. It lacks the flexibility to eaSily Incorporate changes mandated by the state or
federal governments An example IS the mablhty to deSignate a particular pay code H
subject to certain taxes and not others. Some functions must now be performe6
NOV 2 8 1995
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outsIde the system, requlrrng extra work to transfer and manrpulate the data, such as
the reporting for the Fair Labor Standards Act (FLSA) r which must be calculated with
a spreadsheet outsIde the payroll system
Lastly r the current payroll system programs will not run on our newer computer
equipment, which forces us to keep and maintain expensive, old computers as long as
we are runnmg the current payroll system.
DISCUSSION
A Payroll RFP Committee of twelve people was formed with staff from the Information
Systems DIVISion and the Personnel and Finance Departments. The committee began
a search for a replacement for the current payroll system by wrltmg speCifications that
were Issued In an RFP Bids were received from ten different vendors. Four of these
bIds were selected for further conSIderation These proposals were exammed in detail
and the vendors presented demonstrations of their software Customers were
contacted and surveyed as to their experiences and satisfaction With the system.
Peoplesoft, lnc was selected as the vendor With the system that best fit the
speCifications and requirements Peoplesoft IS the mdustry leader In sales of human
resources and payroll systems utiliZing modern computer techmques and systems
Peoplesoft wIll deliver and Install the software for the system. They Will confIgure the
system With test data and demonstrate Its operatIon. Tralnmg of city staff Will be
prOVIded by Peoplesoft at their training facility Peoplesoft Will assist city staff In the
configuration of the software to meet our processing and record keeping requirements
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They will consult with city staff regarding the conversion of our eXisting data to the
new system. They will assist in the testing of the system with our employees' data
The new system WIll be operatIonal by January 1997
BUDGET /FINANCIAL IMPACT
The cost of the system IS $285,000 which IS budgeted at account #
01-710-223-20096-8900-99501
RECOMMENDATION
It IS recommended that Council authorrze the City Manager to negotiate and execute
a contract wIth Peoplesoft, Inc. for the purchase of an automated human resources
and payroll system for $285,000
Prepared by Jeff Miller, Systems Development SupervIsor, Information Systems
DIVISion.