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CC - CONSENT ITEM: (1) Approval of an Agreement with UKG Kronos Systems, LLC to Provide an Online, Cloud-Based Timekeeping, Scheduling, and Attendance Management Software as a Solution (SaaS) For a Total Amount Not-to-Exceed $513,000 over Five Years; and (2) Authorization to the City Manager to Approve Expenditures to UKG Kronos Systems, LLC in an Annual Amount Not-To-Exceed $97,000 Allowing for an Increase of Five Percent for Annual Renewals after the Initial Five Year-Term at the Sole Discretion of the City.
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Meeting Date: April 28, 2025
Contact Person/Dept.: Michael Towler/Finance Department
Punit Chokshi/Finance Department
Ravnil Rattan/Finance Department
Phone Number: 310-253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (04/23/2025)
Department Approval: Lisa Soghor, Chief Financial Officer (04/22/2025)
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RECOMMENDATION:
Staff recommends that the City Council (1) approve an agreement with UKG Kronos Systems, LLC for an online cloud-based timekeeping, scheduling, and attendance management Software as a Service (SaaS) solution. The recommended agreement is for a total amount not-to-exceed $513,000 (including 10% contingency) over five years; and (2) authorize the City Manager to approve expenditures to UKG Kronos Systems, LLC in an annual amount not-to-exceed $97,000 allowing for an increase of five percent for annual renewals after the initial five year-term at the sole discretion of the City.
BACKGROUND:
The Finance Department processes a biweekly payroll for over 750 employees. The City has contracted with ExecuTime Software, LLC for the ongoing timekeeping, attendance and advanced scheduling software solution since 2015. ExecuTime is used to process timekeeping for most City departments, except for Transportation Department bus operators, who are currently processed on a system developed in-house over decade ago, and are in the process of transitioning to the Clever Devices MAIOR Transit Scheduling Suite (designed specifically for Transit operator timekeeping and shift management), and Fire Department staff, who are processed on UKG Telestaff system (an automated scheduling system designed specifically for public safety). The ExecuTime software solution is now ten years old, has exceeded its useful life, and no longer meets the various reporting and regulatory needs of the City.
As part of the Fiscal Year 2024-2025 Capital Improvement Program (“CIP”) Budget, City Council approved funding to replace the obsolete timekeeping system. In preparation for the replacement, staff invited qualified service providers to submit proposals for a comprehensive, configurable, cloud-based timekeeping, scheduling, and attendance management solution that will streamline processes, increase efficiencies, reduce redundancies and reliance on subsidiary systems.
DISCUSSION:
Culver City Municipal Code Section 3.07.055.E exempts the purchase of software and software maintenance from competitive procurement requirements; however, to better understand the software solutions available and make an informed technology-forward decision, staff published a formal Request for Proposal (“RFP”) #2353 for a Timekeeping, Scheduling, and Attendance Management Software System on May 24, 2024. The City received proposals from thirteen firms. An evaluation panel of representatives from various Departments including Finance, Information Technology, Human Resources, Police, and Transportation reviewed and ranked proposals using the criteria set out in the RFP. The top three ranked firms that were most qualified to meet the specific needs of the City were invited to participate in an interview and provide a demonstration of their proposed software solution. Based on the review of the proposals, interviews, demonstrations and reference checks with other cities, staff recommends UKG Kronos Systems, LLC to provide the City with a streamlined timekeeping system to deliver an integrated, efficient, customer friendly and cost-effective solution.
With UKG’s Pro Workforce Management solution, the City will gain greater workforce management functionality including improved time tracking, accrual tracking, leave management, schedule generation, overtime management, approval workflow, geo-fenced mobile access, and regulatory reporting compliance. The solution’s underlying architecture, user experience, functionality, and integrations are specifically designed and configurable to optimize the user experience. UKG has over 40 years of experience working with over 2,500 government agencies across the United States and understands the distinct challenges government agencies face. UKG has partnered with the City’s exiting Tyler Munis Enterprise Resource Planning (“ERP”) for over twenty years and will integrate with the City’s existing ERP to ensure secured and accurate bidirectional data exchanges. The UKG solution will improve system integrations, ensuring the smooth transition of processed time and attendance data from the City’s subsidiary systems (UKG Telestaff for Fire Department, and MAIOR for Transportation Bus Operators) to the principal payroll system in Tyler Munis ERP.
UKG will provide support for the technology infrastructure 24 hours a day, seven days a week, 365 days a year, as well as on-call user support services that align with the City’s normal business hours. UKG will also provide ongoing resources to educate staff, help the City optimize its use of the Pro Workforce Management software and stay on top of new reporting and regulatory requirements including user discussion boards, Q&A forums, “How- to”, articles, case studies, direct connections to other UKG customers across the nation, webinars and best practices recommendations. The UKG Workforce Management solution uses a configurable building block approach which will can provide a complete audit trail to automate the labor and pay polices and facilitate compliance with Department of Labor Fair Labor Standards Act (FLSA), CalPERS Retirement System, Culver City Memorandum of Understandings (MOUs), as well as the City’s financial policies, personnel rules and overtime regulations.
Finance staff will work with UKG to train all City staff on the new system and ensure a successful transition from the existing system.
FISCAL ANALYSIS:
The Adopted Budget for Fiscal Year 2024-2025 includes sufficient funds in the amount of $250,000 to cover the one-time startup costs, hardware, first year subscription and support services in CIP Account No. 42080000.730100.PT015 (Timekeeping Replacement Project) which can be found in the Capital Improvements section of the budget book on page 479. Once the software is configured and deployed, the ongoing annual subscription and support service costs totaling approximately $90,000 annually will be budgeted and accounted for in the Account No. 10124100.600200 (Information Technology - R&M Equipment). The City’s base budget already includes $58,000 for the City’s current time and attendance software which will partially off-set the annual cost of UKG software. Funding for future year’s ongoing costs will be included in the future fiscal year budgets.
MOTION:
That the City Council:
1. Approve an agreement with UKG Kronos Systems, LLC to provide an online, cloud-hosted timekeeping system to replace the current timekeeping system in an amount not-to-exceed $513,000 over five years;
2. Authorize the City Manager to approve expenditures to UKG Kronos Systems, LLC in an annual amount not-to-exceed $97,000 allowing for an increase of five percent for annual renewals after the initial five year-term at the sole discretion of the City;
3. Authorize the City Attorney to review/prepare the necessary documents; and
4. Authorize the City Manager to execute such documents on behalf of the City.