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December 15, 1998 Santa MOnica, California
TO Mayor and City Council
FROM City Staff
SUBJECT Recommendation to Authorize the City Manager to Negotiate and Execute
a Contract to Purchase a Police Timekeeping and Attendance System
from Kronos, Inc
INTRODUCTION
ThiS report recommends that the City CounCil authorize the City Manager to negotiate and
execute a contract with Kronos, I nc for a time and attendance system for the Police
Department ThiS system Will proVide accurate and timely data for the allocation and
assignment of Police personnel and Will mterface With the City's new PeopleSoft payroll
system
BACKGROUND
On February 1,1997. the Police Department created and staffed the Audit and InspectIon
Unit Within the Office of the Chief of Police The Unit was established to analyze Internal
processes and Identify new systems or methods to Improve the Department's effiCiency
and effectiveness
The Police Department devised a work order system to enable the trackmg and reporting
of overtime by cost center WhIle effective, the process requires manual compilation of
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DEC 1 5 1998
data from multiple sources, e 9 ,payroll, time card, Inter- and Intra-departmental billing, and
accrued data files The data IS then translated, formatted and melded together uSing
trad Itlonal spreadsheet programs This task has become cu mbersome and labor intensive
An automated timekeeping system will efficiently record and report overtime, regular work
hours, and the associated costs In real time
DISCUSSION
Information Systems and Police staff developed a requestfor proposals (RFP) defining the
needs and reqUirements of a tlmekeepmg and attendance system Seventeen vendors
received the proposal and five responded Staff reviewed the proposals, evaluated the
vanous products and determined that the solution offered by Kronos, I nc best meets the
needs of the Police Department
The Time, Attendance, and Labor Management System from Kronos offers a robust
database, extensive real-time reportmg capabilities, a hardware and software platform that
conforms to the standards developed by the Information Systems DIVISion to ensure
support by eXisting personnel and compatibility with other City systems, and It IS year2000
compliant Kronos,lnc also offers a turnkey solution With on-site and telephonic technical
support and a local training faCIlity
The Time, Attendance, and Labor Management System Will provide the Pollee Department
With on-line access to tIme and attendance records Reports are available m a user
fnendly menu system The Kronos solution applies consistent payroll rules and poliCies
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ensunng personnel are In compliance with eXlstmg regulations The end result IS that the
Police Departmentwlll have access to accurate and timely data by which to make Informed
human resource decIsions
BUDGET/FISCAL IMPACT
The contract to purchase the Time, Attendance, and Labor Management System from
Kronos IS not to exceed $270,000 ThiS Includes the software, tlmekeepmg devices,
mstallatlon, tralnmg, first years' maintenance, sales tax, and freight The product IS a
client/server application and Will require an additional 898,000 for computer hardware
The total cost of Implementation for the first year IS not to exceed $370,000 and funding
IS available from the Local Law Enforcement Block Grants (LLEBG) for 1997 and 1998
The State Prog ram Manager of the Local Law Enforcement Block Grants Program DIvIsion,
Bureau of Justice AssIstance, confirmed that the purchase of the tlmekeepmg system
would be withm the LLEBG grant gUIdelines It IS proposed that $280,512 WIll be used
from the 1997 LLEBG grant account (#20-730-304-20098-8900-9957), S31,559 from the
1997 LLEBG grant match account (#01-730-304-20098-8900-99537), and $55,929 from
the 1998 LLEBG grant account (#20-730-304-20099-8900-99537)
First year maintenance costs Will be covered under the system warranty A contract for
maintenance after the first yearwllI start at $23,575 and mcrease three percent each year
to a maximum of $26,534 after five years The total cost of the mamtenance contract for
the additional five years IS not to exceed $125,163 and Will be appropnated In the Police
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Department operating budget account (#01-300-304-00000-3358-00000) beginning with
fiscal year 99/00
RECOMMENDATION
It IS recommended that the City Council authorize the City Manager to 1) negotiate and
execute a contract with Kronos, Inc I for the purchase of the Time, Attendance, and Labor
Management System at a cost not to exceed $270,000,2) purchase the required computer
hardware through a competitive bid process at an amount not to exceed $98,000, and 3)
negotiate and execute a contract with Kronos, Inc for a mamtenance agreement to cover
the five years subsequent to the end of the system warranty at a total cost not to exceed
$125,163
Prepared by James T Butts, Jr , Chief of Police
Jory Wolf, Manager of Information Systems
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