SR 01-26-2016 3A
City Council
Report
City Council Regular and Special Joint Meeting: January 26, 2016
Agenda Item: 3.A
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To: Mayor and City Council
From: Jory Wolf, Chief Information Officer, Software Systems, Information Systems
Department
Dennis J. Downs, Interim Fire Chief
Subject: Fourth Modification to Agreement #8417 (CCS) with Kronos, Inc. for software
licensing and upgrade services and Third Modification to Agreement #8434
(CCS) with Kronos, Inc., for software maintenance and support services
Recommended Action
Staff recommends that the City Council:
1) Authorize the City Manager to negotiate and execute a fourth modification to
agreement #8417 (CCS) in the amount of $85,179 with Kronos, Inc., a
Massachusetts-based company, for 200 additional employee software licenses
for Citywide use and upgrade services for Kronos, the City’s electronic
timekeeping and attendance system used by all departments and to implement
an upgrade of Workforce TeleStaff (TeleStaff), event-based employee scheduling
software used by the Fire Department. The term of the contract remains
unchanged at 15 years, ending June 30, 2020. The new amended total contract
amount will not to exceed $465,179, with future year funding contingent on
Council budget approval;
2) Authorize the City Manager to negotiate and execute a third modification to
agreement #8434 (CCS) in the amount of $74,000 (includ ing a 10% contingency)
with Kronos, Inc., for maintenance and support services for Kronos and
TeleStaff. The term of the contract remains unchanged at 15 years, ending June
30, 2020. The new amended total contract amount will not to exceed
$1,202,653, with future year funding contingent on Council budget approval.
Executive Summary
In 1998, the City purchased electronic timekeeping and attendance hardware and
software from Kronos, Inc for Citywide use. In preparation for implementation of the
new Enterprise Resource Planning (ERP) system, an overall upgrade of the Kronos
system is required, as well as the purchase of 200 additional employee licenses to
accommodate for a Citywide increase in staff and for some job-sharing of current
positions.
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Additionally, in 2004, the City purchased TeleStaff, an automated staff scheduling and
notification system for the Fire Department. The purchase included software
maintenance services, which have been renewed annually since 2005. The City
currently uses a version of TeleStaff that is four years old and will soon no longer be
supported by Kronos, Inc., the current manufacturer who purchased the system from
PDSI on May 2, 2011. An upgrade to the latest version of TeleStaff is required at this
time for the Fire Department.
Staff recommends modifying the existing Sales Agreement and Software License
Agreement #8417 (CCS) with Kronos, Inc. in the amount of $85,179, for a new total
contract amount not to exceed $465,179, to upgrade Kronos and purchase additional
licenses and upgrade TeleStaff to the latest version. Staff also recommends modifying
the Software Maintenance and Support Agreement #8434 (CCS) in the amount of
$74,000, including a 10% contingency, for a new total contract amount not to exceed
$1,202,653, to extend the maintenance and support services for Kronos and TeleStaff
and to purchase additional licenses as needed during the term of the contract. These
changes will result in the consolidation of all Kronos licensing and maintenance services
into two agreements with Kronos as referenced above.
Background
Currently, the City has three contracts with Kronos, one for hardware and software
purchases and services, governed by a Kronos Sales Agreement and Software License
Agreement No. 8417 (CCS); one for hardware and software maintenance, governed by
Software Maintenance and Support Agreement No. 8434 (CCS); and by virtue of the
PDSI acquisition, Agreement #8400 (CCS) for TeleStaff.
On December 15, 1998 (Attachment C), Council authorized the purchase of a
timekeeping and attendance system from Kronos, Inc. for the Police Department . The
contract included the purchase of a time, attendance, and labor management system,
and maintenance agreement to cover the five years following the end of the system
warranty. Staff recommended Kronos, Inc. to provide this service following a
competitive process.
On November 23, 2004 (Attachment D), Council authorized an agreement with Kronos,
Inc. for the purchase of a time and attendance software system for Citywide use –
Agreement #8417 (CCS) and an agreement for maintenance and support services –
Agreement #8434 (CCS). Following the initial purchase and software agreement, the
contract has been modified previously to add software purchases and professional
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services to accommodate for upgrades, new staff, and to extend the maintenance
agreement: administratively, on December 23, 2008; and through Council approval on
September 14, 2010 (Attachment E), June 12, 2012 (Attachment F), and May 12, 2015
(Attachment G).
On October 12, 2004 (Attachment A), Council authorized the purchase of TeleStaff for
the Fire and Police Departments from PDSI – Agreement #8400 (CCS). On February 8,
2005 (Attachment B), Council approved a modification to the agreement to add three
years of maintenance. In 2006, the contract was modified to remove the scheduling
component for the Police Department who moved to a different scheduling system. On
May 2, 2011, Kronos, Inc. acquired PDSI and assumed the terms and conditions of the
City's agreement with PDSI for the TeleStaff software.
Discussion
In preparation for implementation of the new ERP system, an overall upgrade of the
Kronos Citywide timekeeping system is required, as well as the purchase of 200
additional Citywide employee licenses to accommodate for an increase in staff and for
some job-sharing of current positions. Additionally, the version of TeleStaff that is
currently being used by the Fire Department is four years old and will soon no longer be
supported by Kronos. The version in use does not offer many of the new features now
available in the current product, such as support for advanced scheduling needs and
mobile devices. Therefore, staff recommends upgrading TeleStaff to the latest version
and extending the maintenance and support services.
Staff evaluated alternatives for Kronos and TeleStaff for timekeeping, employee
notification, scheduling, and attendance systems during the RFP process for the new
ERP in 2014. However, none of the systems that were evaluated had the robust
functionality of the Kronos and TeleStaff systems and did not integrate to allow for
attendance data and scheduled time worked to be transferred to the City’s financial
system.
Staff recommends modifying the sales and software license and software maintenance
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and support services agreements with Kronos to include the additional licenses and
upgrade services for Kronos and TeleStaff, and related maintenance and support
services. These changes would result in the consolidation of all Kronos licen sing and
maintenance services into two agreements with Kronos.
A fourth modification of the Kronos Sales Agreement and Software License Agreement
No. 8417 (CCS) would add 200 additional employee licenses for Citywide use and
related upgrade services for Kronos and would incorporate the upgrade services and
licenses for TeleStaff used by the Fire Department, currently under a separate
agreement, into the existing Kronos agreement, for a total cost of $85,179. This would
result in a revised contract amount not to exceed $465,179. A third modification of the
Software Maintenance and Support Agreement No. 8434 (CCS) with Kronos, Inc. would
incorporate the maintenance and support services for Kronos and TeleStaff, currently
under a separate agreement, into the existing Kronos agreement and extend the
services to cover both systems at a cost of $74,000, including a 10% contingency. This
would result in a revised contract amount not to exceed $1,202,653.
Additionally, one of the critical components of the new version of TeleStaff is the ability
to notify Fire Department employees of work assignments via system generated
automatic phone calls through a service provided by Voxeo, which would become
available with the TeleStaff upgrade. The Voxeo services are bi lled through Kronos,
Inc. Therefore, during the term of the agreement, up to $10,000 may be paid to Kronos,
Inc. for Voxeo’s services as part of the software maintenance and support agreement.
The amount for these services is incorporated into the third modification amount for the
TeleStaff component.
Vendor Selection
In 1998, Council authorized the purchase of a timekeeping and attendance system from
Kronos, Inc. The system was selected after a competitive bidding process, which
resulted in the evaluation of five vendors systems for their ability to meet the City’s
needs. The Kronos system was selected because it offered the most robust database,
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extensive real-time reporting capabilities, a hardware and software platform that
conforms to the City standards to ensure support by existing personnel and
compatibility with other City systems, and offered a turnkey solution with on-site and
telephonic technical support and a local training facility.
In 2004, Council authorized the purchase of TeleStaff, an automated staff scheduling
and notification system for the Fire Department. The system was selected after
evaluating multiple vendors’ systems for their ability to be customized to fit the Fire
Department’s complex call-out requirements, including accommodating for organization
specific rules in a decision-making hierarchy to automatically notify staff-via phone and
email – with the details of their required attendance.
In 2014, staff evaluated new timekeeping, attendance and scheduling alternatives
during the RFP process for the new Enterprise Resource Planning system. However,
none of the systems that were evaluated had the robust functionality of the Kronos and
TeleStaff systems and they did not integrate to allow for scheduled time worked to be
transferred to the City’s financial management system.
At this time, staff recommends Kronos, Inc. to continue to provide software licenses and
maintenance and support services on a sole source basis for the Kronos and TeleStaff
software. Kronos is the only vendor that can provide maintenance and support for its
software systems. Therefore, this sole source purchase is necessary in order to ensure
service continuity as specified in SMMC 2.24.080 (a). Competition does not exist, for
proprietary items of original equipment manufacturers and/or their authorized exclusive
distributors.
Financial Impacts and Budget Actions
The fourth modification to contract 8417 (CCS) to be awarded to Kronos, Inc. for
software licenses and services is for an amount not to excee d $85,179. Funds for the
TeleStaff licenses and upgrade services are available in the FY 2015-16 budget in the
Fire Department. Funding for the Kronos Citywide employee licenses and upgrade
services will be included in the FY 2015-16 Midyear Budget for Council approval. The
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modification will be charged to account C55000314.589000 ($15,179) and
C019135.589000 ($70,000).
The third modification to contract 8434 (CCS) to be awarded to Kronos, Inc. for the
maintenance and support services is for an amount not to exceed $74,000. Funds are
available in the FY 2015-16 budget in the Fire and Finance Departments budgets. The
modification will be charged to account 01312.533580 ($47,785) and 01221.533580
($26,215).
Future year funding is contingent on Council budget approval.
Prepared By: Benjamin Steers, Systems Analyst - Public Safety
Approved
Forwarded to Council
Attachments:
A. October 12, 2004 Staff Report (web link)
B. February 8, 2005 Staff Report (web link)
C. December 15, 1998 Staff Report (web link)
D. November 23, 2004 Staff Report (web link)
E. September 14, 2010 Staff Report (web link)
F. June 12, 2012 Staff Report (web link)
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G. May 12, 2015 Staff Report (web link)
Reference:
Modified Agreement No. 8417
(CCS)
&
Modified Agreement No. 8434
(CCS)