Item 6-H

City Council Meeting: 12-15-98

TO: Mayor and City Council

FROM: City Staff

SUBJECT: Recommendation to Authorize the City Manager to Negotiate and Execute a Contract to Purchase a Police Timekeeping and Attendance System from Kronos, Inc.

INTRODUCTION

This report recommends that the City Council authorize the City Manager to negotiate and execute a contract with Kronos, Inc. for a time and attendance system for the Police Department. This system will provide accurate and timely data for the allocation and assignment of Police personnel and will interface with the City's new PeopleSoft payroll system.

BACKGROUND

On February 1, 1997, the Police Department created and staffed the Audit and Inspection Unit within the Office of the Chief of Police. The unit was established to analyze internal processes and identify new systems or methods to improve the Department's efficiency and effectiveness.

The Police Department devised a work order system to enable the tracking and reporting of overtime by cost center. While effective, the process requires manual compilation of data from multiple sources, e.g., payroll, time card, inter- and intra-departmental billing, and accrued data files. The data is then translated, formatted and melded together using traditional spreadsheet programs. This task has become cumbersome and labor intensive. An automated timekeeping system will efficiently record and report overtime, regular work hours, and the associated costs in real time.

DISCUSSION

Information Systems and Police staff developed a request for proposals (RFP) defining the needs and requirements of a timekeeping and attendance system. Seventeen vendors received the proposal and five responded. Staff reviewed the proposals, evaluated the various products and determined that the solution offered by Kronos, Inc. best meets the needs of the Police Department.

The Time, Attendance, and Labor Management System from Kronos offers a robust database, extensive real-time reporting capabilities, a hardware and software platform that conforms to the standards developed by the Information Systems Division to ensure support by existing personnel and compatibility with other City systems, and it is year 2000 compliant. Kronos, Inc. also offers a turnkey solution with on-site and telephonic technical support and a local training facility.

The Time, Attendance, and Labor Management System will provide the Police Department with on-line access to time and attendance records. Reports are available in a user friendly menu system. The Kronos solution applies consistent payroll rules and policies ensuring personnel are in compliance with existing regulations. The end result is that the Police Department will have access to accurate and timely data by which to make informed human resource decisions.

BUDGET/FISCAL IMPACT

The contract to purchase the Time, Attendance, and Labor Management System from Kronos is not to exceed $270,000. This includes the software, timekeeping devices, installation, training, first years' maintenance, sales tax, and freight. The product is a client/server application and will require an additional $98,000 for computer hardware.

The total cost of implementation for the first year is not to exceed $370,000 and funding is available from the Local Law Enforcement Block Grants (LLEBG) for 1997 and 1998. The State Program Manager of the Local Law Enforcement Block Grants Program Division, Bureau of Justice Assistance, confirmed that the purchase of the timekeeping system would be within the LLEBG grant guidelines. It is proposed that $280,512 will be used from the 1997 LLEBG grant account (#20-730-304-20098-8900-9957), $31,559 from the 1997 LLEBG grant match account (#01-730-304-20098-8900-99537), and $55,929 from the 1998 LLEBG grant account (#20-730-304-20099-8900-99537).

First year maintenance costs will be covered under the system warranty. A contract for maintenance after the first year will start at $23,575 and increase three percent each year to a maximum of $26,534 after five years. The total cost of the maintenance contract for the additional five years is not to exceed $125,163 and will be appropriated in the Police Department operating budget account (#01-300-304-00000-3358-00000) beginning with fiscal year 99/00.

RECOMMENDATION

It is recommended that the City Council authorize the City Manager to: 1) negotiate and execute a contract with Kronos, Inc., for the purchase of the Time, Attendance, and Labor Management System at a cost not to exceed $270,000; 2) purchase the required computer hardware through a competitive bid process at an amount not to exceed $98,000; and 3) negotiate and execute a contract with Kronos, Inc. for a maintenance agreement to cover the five years subsequent to the end of the system warranty at a total cost not to exceed $125,163.

Prepared by: James T. Butts, Jr., Chief of Police

Jory Wolf, Manager of Information Systems