SR-101-003-04-08 (2)
SS:RC:F:\FINANCE\ACCTG\Staff Reports\Kronos.doc
Council Meeting: November 23, 2004 Santa Monica, California
TO: City Council
FROM: City Staff
SUBJECT: Contract with Kronos, Inc., for Timekeeping and Attendance Software
Licenses, Hardware and Ongoing Maintenance
Introduction
This report recommends that the City Council authorize the City Manager to negotiate and
execute a contract with Kronos, Inc., to provide software licenses, related hardware and
professional services and ongoing maintenance for a time and attendance software system
to be used by all City employees except motor coach operators.
Background
In December 1998, the City Council approved the purchase of an automated time and
attendance system for the Police Department. This system, provided by Kronos, Inc., has
allowed staff to automate both complicated and routine work processes related to police
employee timekeeping. In addition to the Police Department, the Solid Waste Division
staff has used the Kronos automated system during calendar year 2004. Both groups
report satisfaction with the system. With a goal to maintain the current software and to
extend an automated time and attendance system citywide, staff evaluated time and
attendance systems provided by Work Force, Kronos, and a consultant who has worked
with other cities. Staff evaluated the options in terms of the compatibility with the City’s
current software systems, cost, and features, and determined the Kronos system to be the
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best solution. The Kronos software is currently a best-in class solution for time and
attendance recordkeeping and leave management.
In order to extend the Kronos automated time and attendance system to additional
departments, software licenses and hardware must be purchased. Kronos will provide
assistance in the installation and implementation of the software and will provide ongoing
maintenance of the system. Staff estimates the cost of additional software licenses and
related hardware and the costs of implementation to be $316,000 with maintenance
estimated at $45,000 for the first year with a maximum five percent annual increase for an
additional four years.
Budget/Financial Impact
The General Fund cost of additional software licenses, related hardware and professional
services is $250,000 is appropriated at account # C010462 in year-end budget changes.
Asset Seizure funds in the amount of $66,000 are available at account # C210462. Funds
for ongoing maintenance are currently budgeted at 01304.533580 and 27441.533120.
Additional funds for maintenance will be included in the City’s annual operating budgets
beginning in FY 05/06 at account 01222.533580.
Recommendation
It is recommended that the City Council approve and authorize the City Manager to
execute contracts with Kronos, Inc., for time and attendance software and related
hardware and professional services at a cost not to exceed $316,000 and for ongoing
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software maintenance not to exceed $45,000 for the first year with a maximum five percent
annual increase for an additional four years.
Prepared by: Steve Stark, Director of Finance
Jory Wolf, Information Systems
Karen Bancroft, Human Resources
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