SR-06-12-2012-3PCity Council Meeting: June 12, 2012
Agenda Item:
To: Mayor and City Council
From: Gigi Decavalles- Hughes, Director of Finance
Subject: Second Modification to Contract with Kronos, Inc., for Time and
Attendance Software Licenses, Software Upgrade and Maintenance and
Support Services
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute modifications to Contract
#8417 with Kronos, Inc., a Massachusetts -based company, in the amount of
$64,000, $34,000 for additional software licenses and $30,000 for a software
upgrade, for a new contract not -to- exceed amount of $380,000; and
2. Amend the maintenance and support agreement by $23,000 for a new contract
not -to- exceed amount of $383,000 for ongoing maintenance and support through
FY2014 -15.
Executive Summary
The City of Santa Monica adopted the Kronos, Inc., Time and Attendance Software
Management System more than ten years ago. Ninety percent of the City's current
workforce reports time using this automated system. In order to roll out this reporting
system to the remaining City workforce, the City must purchase 300 additional software
licenses. These licenses will accommodate the increase in the City's workforce since
the original licenses were purchased in FY2004 -05. In addition, a software upgrade to
the latest version of the software will provide enhanced functionality for all users. It is
expected that all City employees will be utilizing this automated time reporting system
by the end of calendar year 2012.
Background
On December 15, 1998, the City Council authorized the purchase of a police
timekeeping and attendance system from Kronos, Inc. for an amount not to exceed
$270,000 for software and not to exceed $125,163 for maintenance and support for a
five -year term. On November 23, 2004, the City Council authorized a new contract for
the purchase of a time and attendance software system from Kronos, Inc., for an
amount not to exceed $316,000 for software licenses and $243,735 for maintenance
1
and support services for a five -year term. On September 14, 2010, Council authorized
the extension of maintenance and support services for a five year term ending in
FY2014 -15 not -to- exceed $360,000.
Discussion
The Kronos Time and Attendance Software System continues to offer a robust
database and extensive real -time reporting capabilities and is considered the best
solution for the City time reporting system. Since purchasing the software licenses
attributed to each employee in 2004, the number of employees has increased by 15 per
cent. In order to extend the software to all employees, additional licenses are needed.
Staff estimates that an additional 300 employee licenses will be sufficient to extend the
use of the software to all employees through FY2014 -15, when the maintenance and
support services agreement will need to be renegotiated. A software upgrade to the
latest version of the Kronos product will also provide additional functionality.
Financial Impacts & Budget Actions
The contract modification to be awarded to Kronos, Inc., is $64,000, $34,000 for
software licenses and $30,000 for a software upgrade, for a new contract total of
$380,000. The maintenance and support services modification is $23,000, for a new
contract total of $383,000. Funds are available for the purchase of software licenses
and the upgrade at CM010557.589000 and for maintenance and support at
01222.533580.
Prepared by: Candace Tysdal, Financial Operations Manager
E
Forwarded to Council:
Rod Gould
City Manager
Reference Amended
Contract No. 8417 (CCS).