Title
Recommendation to Allocate Seventy-four Thousand Dollars ($74,000) from the Technology Services Fund (704) for a Contract with Soft Resources, Inc. for Computer Consulting Services to Support the Human Resources Department's Needs Assessment and Procurement of a New Human Resources Information System (HRIS). (Human Resources 704)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Allocate Seventy-four Thousand Dollars ($74,000) from the Technology Services Fund (704) for a Contract with Soft Resources, Inc. for Computer Consulting Services to Support the Human Resources Department's Needs Assessment and Procurement of a new Human Resources Information System (HRIS)
BACKGROUND
A modern Human Resources Information System (HRIS) is a computer system which tracks all pertinent payroll and human resource information for employees, including their hours, pay rates, leaves, special pays (such as uniform allowances and educational incentives), hire dates, breaks in services, etc. It should be able to calculate hours and pays on an automated basis, communicating such information to the payroll function so that every employee is paid correctly and every employee's leaves and payroll history are automatically tracked. It should also correctly calculate overtime and allow staff to run informational reports. This requires seamless information integration between the Finance Department and the Human Resources Department.
Over the past few years, the number and level of complexity of Memoranda of Understanding between the City and employee bargaining groups has grown creating inconsistencies between documents which are difficult to administer. Compounding the issue has been information system upgrades shared by Finance and Human Resources which have better met the Finance Department's needs, but resulted in dramatic loss of functionality for the Human Resources Department. The combination of these issues now require the Human Resources staff to hand calculate pay raises, special pays, leaves, benefits, etc., for manual input into the system. For example, a simple report to determine if any part-time employees worked an average of over 28 hours per week, necessary to calculate as a result of the Affordable Care Act, requires two full days of a Human Resource Analyst's time to convert data to a manageable format. In sum, the need to upgrade the City's Human Resources Information System has reached a critical juncture and there is an urgent need to replace the system.
DISCUSSION
Over the past several months, Human Resources staff has reached out extensively to other Human Resource Departments throughout the State to find out what types of HRIS were being used in conjunction with our current Finance Information System (Sungard). It was discovered that this issue was extremely complex due to the vast variety of systems available and the array of upgrades and/or special programming that our current Finance system runs. The end result was that no apparent alternative system exists.
While in Alameda, previous Finance Director, Fred Marsh, contacted other Finance colleagues regarding this issue and discovered that several jurisdictions utilized the services of Soft Resources, Inc. This firm assesses information technology needs, specifically assisting cities with Enterprise Resource Planning services (ERP) and providing high level assessments of technology needs, including Human Resources solutions. . Soft Resources also assists cities in the procurement process, developing correct specifications for a Request for Proposal process and helping assess and rate competing systems for their functionality and compatibility with current City systems, needs and resources. Soft Resources has been providing software selection services for almost twenty years, has extensive government experience and gives the City the advantage of independent unbiased vendor analysis that can objectively analyze our options.
Soft Resources provided a client list and staff contacted approximately five municipal users of similar size to Alameda to ascertain their satisfaction with Soft Resource's assistance. Each and every municipality provided excellent reviews of this company, some regretting only that they had not used them earlier in their process or more extensively. Based on this feedback, staff has negotiated a tentative contract for services which includes the consultant coming on site and interviewing various staff members throughout the City regarding our needs and the current status of our systems. They would then develop specifications for a new system based on our needs. Soft Resources can then identify systems that fit within our specifications and assist with the procurement process to purchase the best system at the best price for the City.
The Scope of Services (Exhibit 1) describes two different work products and actions. The first part is an assessment of Human Resources' needs, which will cost $29,750. After the specifications have been developed, staff will then utilize Soft Resources to assist with locating and purchasing a system. The procurement work will be performed by Soft Resources at their hourly rate and will most likely include a Request for Proposal (RFP). Additionally, the scope of work will include the cost to implement the new system. Staff estimates the cost of locating, purchasing, and implementing a system to be approximately $44,000.
Currently, funds for this project have not been appropriated, but are available in the Technology Services fund. Staff requests that $74,000 be appropriated in the Technology Services fund to allow this contract to move forward.
FINANCIAL IMPACT
The funds for this project are not currently budgeted, however funding is available for appropriation in the Technology Services Fund (704). If this appropriation is approved, these is no additional impact on the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under the CEQA Guidelines section 15061(b)(3).
RECOMMENDATION
Recommendation to appropriate seventy-four thousand dollars ($74,000) from Technology Services Fund (704) for a contract with Soft Resources, Inc. for Computer Consulting Services to support the Human Resources Department's needs assessment and procurement of a new Human Resources Information System (HRIS).
Respectfully submitted,
Stephanie Garrabrant-Sierra, Administrative Services Director
Financial Impact section reviewed,
Juelle-Ann Boyer, Interim Finance Director
Exhibit:
1. Scope of Services