Loading...
SR-032586-6V~iv MAR ~ 5 198 FI : BR: g: cape L 1- ~~ ~ . Council Meeting: March 25, 1986 Santa Monica, California TO: MAYOR AND CITY COUNCIL FROM: City Staff SUBJECT: RECOMMENDATION TO AUTHORIZE THE CITY MANAGER TO NEGOTIATE A CONTRACT WITH CAPE DATA INC. TO PROVIDE AND INSTALL AN AUTOMATED PAYROLL SYSTEM Introduction This report recommends that the City Council authorize the City Manager to negotiate and execute a contract with CAPE Data Inc. of Reno, Nevada, to provide and install a new automated payroll system for the City. Background The City currently uses a ten-year old automated payroll system. The existing system has been extensively modified by City staff over the past ten years to accomodate changes in Federal, State and PERS payroll requirements, and to handle the substantial payroll complexity resulting from the large number of bargaining units recognized by the City. The existing system was also written in a non-standard computer language. In addition, there are a number of operational shortcomings inherent in the existing system which require extensive manual processing by payroll staff. Moreover, the City is now preparing to implement the requirements of the Fair Labor Standards Act (FLSA). The effective date for - 1 - ~-~ MAR 2 5 1986 FLSA implementation complicated work hog the City's existing payroll systems, it provisions manually sub-systems. is April 15, 1986. The FLSA Act requires zr and pay calculations which cannot be met by payroll system. Until the City changes will be necessary to meet the Act's and/or through specially programmed In light of these factors, staff concluded that it was no longer cost effective to continue to modify the existing payroll system to meet the City's needs. Selection Process To expedite the process of obtaining a new payroll system, the City retained the services of Coopers and Lybrand, a major accounting and management/systems consulting firm, to assist in preparing a Request for Proposal (RFP) and evaluating vendor responses. Eleven RFP's were distributed to a list of pre-screened payroll system vendors. Responses were received from three vendors: Infocomp Systems, Inc., Xerox Computer Services and CAPE Data, Inc. The non-responding vendors were questioned and it was determined that they declined to respond due to the complexities of the City's payroll requirements and the new FLSA requirements. The three responses were thoroughly reviewed by Coopers and Lybrand and a City Selection Committee composed of Lynne Barrette, Assistant City Manager; Mike Dennis, Director of Finance; Meganne Steele, Budget Director; Gordon Johnson, Director of Personnel; Ken Phillips, Management Information - 2 - Services Director; Bill Ramsey, Assistant Director of Finance; Pat Shaughnessy, Programmer Analyst III; and Susan McCarthy, Consultant. As a result of the response reviews, the Committee eliminated all firms except CAPE Data Inc. as the other firm's payroll systems could not be modified to meet the City's payroll needs, or because of cost considerations. Subsequently, a series of technical meetings/interviews were conducted by the Selection Committee with staff of CAPE Data, Inc. A final phase of evaluation of the CAPE Data Inc. payroll system consisted of an on-site visit by a sub-committee of the Selection Committee to the City of Odgen, Utah, where the CAPE Data Inc. payroll system has been in operation for some time. Based on this extensive evaluation process, staff recommends the selection of CAPE Data Inc. as the firm best suited to successfully provide and implement a new payroll system for the City. Providing and Implementing the New Payroll System It will take approximately six months (April - September, 1986) for CAPE Data, Inc. to modify and enhance its existing payroll system to meet completely the City's payroll and FLSA requirements. During this period, a City implementation team consisting of staff from the City Manager's Office, Finance, Information Systems and Personnel Departments will work closely with CAPE Data, Inc. - 3 - Subsequently, during the period October - December 1986, extensive payroll system tests will be run to ensure all City, Federal, State and PERS operating requirements are met. Following these tests, the City will switch to the new payroll system on January 1, 1987. Budget/Financial Impact Total cost of providing and installing the City's new payroll system is $195,000, including costs of the consulting assistance provided by Coopers and Lybrand and a 10~ contingency cost. For FY1985/86, $90,000 was budgeted in the General Government Category of the Capital Program Budget, account number 01-710-202-000-901, "Automated Financial Systems." In addition, the Council had previously approved in concept $75,000 for automated financial systems in FY1986/87 as part of the City's three year capital program. This $75,000 will not be required next fiscal year due to implementation of the new payroll system and the involvement of Finance Department staff in preparatory work required to determine systems requirements for an enhancement to the City's automated financial system now scheduled for FY1987/88. It is therefore recommended that the Council accelerate the appropriation of this $75,000 to the current fiscal year and appropriate an additional $30,000 to meet the full costs of providing and installing a new City payroll system. The additional current fiscal year appropriation of $105,000 can be financed from the General Fund fund balance. Once the new - 4 - payroll system has been implemented, the City's other operating funds will be appropriately charged their fair share of the system cost through the City's Annual Cost Allocation Plan. In this manner, approximately one-third of the total cost of the new payroll system will be shared by funds other than the General Fund. Recommendation It is recommended that the City Council authorize the City Manager to negotiate and execute a contract with CAPE Data Inc. to provide and install a new payroll system for the City, and increase the appropriation at account number 01-710-202-000-901 by $105,000. Prepared by: Mike Dennis, Director of Finance Sill Ramsey, Assistant Director of Finance - 5 - Reference Contract No. 4653 (CCS).