The URL can be used to link to this page

Home My WebLink AboutHR Human Resources Information System Software Services Agreement____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: 07/21/2025 Disposition: Resolution 15444 Agenda Item No: 4.g Meeting Date: July 21, 2025 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Human Resources Prepared by: Nick Biss, HR Manager City Manager Approval: ____________ TOPIC: HUMAN RESOURCES INFORMATION SYSTEM SOFTWARE SERVICES AGREEMENT SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A SOFTWARE SERVICES AGREEMENT WITH ULTIMATE KRONOS GROUP (UKG) FOR A NEW HUMAN RESOURCES INFORMATION SYSTEM (HRIS) IN AN AMOUNT NOT TO EXCEED $425,600 FOR A FIVE-YEAR TERM THROUGH FISCAL YEAR (FY) 2029-30, SUBJECT TO FUTURE BUDGET APPROPRIATIONS, AND AUTHORIZING THE CARRY-FORWARD OF $66,500 IN FY 2024-25 BUDGET APPROPRIATIONS RECOMMENDATION: Staff recommends that the City Council adopt the resolution authorizing the City Manager to enter into an agreement with Ultimate Kronos Group (UKG) for the licensing, implementation, and support of UKG Ready for an initial five (5) year term in a not-to-exceed amount of $425,600, subject to future budget appropriations, and authorize the carry-over of $66,5000 in fiscal year (FY) 2024-25 budget appropriations (Fund 601) provided for this purpose. BACKGROUND: The City has historically relied on its existing financial/ERP system to track employee data and process payroll. However, significant manual processes and technology gaps remain in areas such as benefits administration, training and certification tracking, learning management for employees, performance management, and recruitment. For an organization of San Rafael's size, it is considered industry best practice to utilize a dedicated Human Resources Information System (HRIS) to manage and retain this type of data effectively. ANALYSIS: Since 2002, the City has utilized the Eden system from Tyler Technologies as its Human Resources Information System (HRIS), specifically for basic human resources demographic data and payroll processing. Largely, the remainder of the City of San Rafael's human resources activities have remained manual processes to date. The City requested proposals and demonstrations from two human resources software companies – NeoGov and UKG, ultimately recommending the selection of UKG as the best system to address the SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 City’s needs. The software, UKG Ready, will provide the City with core HRIS functionality – employee demographics, employee and manager self-service, automation of current manual processes, etc. – in addition to a benefits management system, learning management system, tracking and reporting for compliance with the Affordable Care Act, performance management system, and a true applicant tracking system to aid with recruitment activities. Staff recommends that the City Council authorize the City Manager to execute a Software as a Service (SaaS) Agreement, subject to future appropriation and with form and legality of the agreement to be approved by the City Attorney, with UKG for system licensing, implementation, and ongoing support The total cost of the proposed contract comprises $17,600 in one-time costs and $81,600 in annual recurring costs, spanning fiscal year 2025-26 through fiscal year 2029-30. While the City is under contract with Tyler Technologies for the implementation and rollout of certain human resources management functionalities in the Tyler/MUNIS ERP system, UKG Ready will supplement some of the gaps not addressed by the current ERP system, specifically performance management, learning management, and applicant tracking. There are efficiencies to come out of the introduction of a human resources information system for City staff: • The utilization of a human resources information system (HRIS) will allow City staff to reduce time performing manual processes and allow time for more strategic work. This accounts for both human resources staff time, as well as the broader City staff who will have access to the human resources information system (HRIS) for purposes of reporting, updating employee information, completing performance evaluations, reviewing applicants, tracking, training, acknowledging policies, completing forms, and selecting their benefits during open enrollment. • UKG Ready’s learning management module will assist the City in providing a more consistent onboarding experience by centralizing learning paths for new employees • When employees select their benefits, either at time of hire or during open enrollment, benefit enrollments and changes can be transmitted to the City’s benefits carriers through a data feed, eliminating the need for duplicate entry in various systems. • As both Tyler/MUNIS and UKG Ready are implemented and put into use, an integration can be built between the two systems to transmit employee data seamlessly. • UKG Ready will assist with compliance with Equal Employment Opportunity (EEO) reporting, Affordable Care Act (ACA) reporting, Consolidated Omnibus Budget Reconciliation Act (COBRA) notice requirements, etc., that currently live with other vendors. This system enables the consolidation of services into a single system. Implementation is expected to last approximately six months, with a dedicated team from Ultimate Kronos Group (UKG) guiding the City through the system setup. Additionally, individuals on the Human Resources team have prior knowledge and experience in configuring this system and will be able to maintain and further develop it over time. COMMUNITY OUTREACH: The City solicited proposals from NeoGov and Ultimate Kronos Group (UKG). Both of which are established leaders in the human resources information system space for government agencies. Upon evaluating product demonstrations, City staff selected UKG Ready as the recommended product for implementation. UKG was chosen over NeoGov due to its more comprehensive functionality for both human resources and payroll, user-friendly interface, stronger integration capabilities with existing City SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 systems and benefits vendors, as well as a proven track record in California municipal agencies. Additionally, UKG’s implementation timeline and ongoing customer support were determined to be better aligned with the City’s operational needs. As part of the selection process, the City also requested and reviewed references from other local government agencies in California that are currently using UKG Ready, all of which reported positive experiences with the system's performance, reliability, and customer service. FISCAL IMPACT: The proposed Software Services Agreement with UKG for the licensing, implementation, and support of a new human resources information system is for a five-year term and a not-to-exceed amount of $425,600. This includes one-time costs of $17,600 and annual ongoing costs of up to $81,600 per year (or $408,000 through the initial five-year term of the contract). Funding to support the first-year project costs has been provided through appropriations within the fiscal year 2024-25 budget ($66,500) and the fiscal year 2025-26 approved budget ($35,000), within the Enterprise Software and Technology Project funds. City Council action is requested as part of this agenda item to carry over fiscal year 2024-25 budget appropriations approved for this purpose. Annual ongoing support costs will be incorporated into the annual budget process through the term of the software agreement with UKG. OPTIONS: The City Council has the following options to consider on this matter: 1. Adopt the resolution. 2. Adopt the resolution with modifications. 3. Direct staff to return with more information. 4. Take no action. RECOMMENDED ACTION: Staff recommends that the City Council adopt the resolution authorizing the City Manager to enter into an agreement with Ultimate Kronos Group (UKG) for the licensing, implementation, and support of UKG Ready for an initial five (5) year term in a not-to-exceed amount of $425,600, subject to future budget appropriations, and authorize the carry-over of $66,5000 in fiscal year (FY) 2024-25 budget appropriations (Fund 601) provided for this purpose. ATTACHMENTS: 1. Resolution 2. Proposed UKG Software Services Order Form RESOLUTION NO. 15444 RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A SOFTWARE SERVICES AGREEMENT WITH ULTIMATE KRONOS GROUP (UKG) FOR A NEW HUMAN RESOURCES INFORMATION SYSTEM (HRIS) IN AN AMOUNT NOT TO EXCEED $425,600 THROUGH FISCAL YEAR (FY) 2029-30, SUBJECT TO FUTURE BUDGET APPROPRIATIONS, AND AUTHORIZING THE CARRY-FORWARD OF $66,500 IN FY 2024- 25 BUDGET APPROPRIATIONS PROVIDED FOR THIS PURPOSE WHEREAS, the City of San Rafael requires a technology solution to better facilitate human capital management processes organization -wide; and WHEREAS, City staff have historically managed such processes manually, resulting in excessive use of staff time, affected response time, and risk of efficiency and accuracy; and WHEREAS, after issuing a Request for Qualifications, City staff has identified Ultimate Kronos Group (UKG) as a software vendor to best meet its needs in this regard; and WHEREAS, staff recommends authorizing the total expenditure of $425,600 for the licensing, implementation, and support of UKG Ready for an initial five (5) year term, for which funding for this project in the amount of $66,500 for one (1) year was provided for in the FY 2024-25 budget and an additional $35,000 is appropriated in the approved FY 2025- 26 budget, within the Enterprise Software and Technology Fund (Fund 601); and NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby authorizes the City Manager to negotiate and enter into a Human Capital Management software services agreement with UKG, in the amount of $425,600 for a five (5) year term, through FY 2029-30, subject to future appropriation and with form and legality of the agreement to be approved by the City Attorney, and be it BE IT FURTHER RESOLVED, that the City Council authorizes the carry-forward of 66,500 in FY2024-25 budget appropriations (Fund 601) provided for this purpose. I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 21st day of July 2025, by the following vote, to wit: AYES: Councilmembers: Bushey, Hill, Kertz & Mayor Kate NOES: Councilmembers: None ABSENT: Councilmembers: Llorens Gulati ________________ Lindsay Lara, City Clerk Quote#: Q-350973 Page 1/4 ORDER FORM Quote#: Q-350973 Order Type: Quote Expires: 07 Aug, 2025 Date: 08 Jul, 2025 Sales Executive: Michael A Knight Effective Date: Effective as of the date of last signature of this Order Customer Legal Name: CITY OF SAN RAFAEL Customer Legal Address: 1400 5TH AVE, SAN RAFAEL, CA 94901 USA Bill To: CITY OF SAN RAFAEL 1400 5TH AVE SAN RAFAEL, CA 94901 USA Ship To: CITY OF SAN RAFAEL 1400 5TH AVE SAN RAFAEL, CA 94901 USA Bill To Contact: Ship To Contact: Nick Biss Ship to Phone: 415-485-3391 Ship to Mobile: Contact: Nick Bliss Email: nick.biss@cityofsanrafael.org Currency: USD Shipping Terms: Shipping Point Customer PO Number: Ship Method: FedEx Ground Solution ID: 6205508 Freight Term: Prepay & Add Initial Term: 60 months Uplift Percent: 8 % Renewal Term: 12 months Payment Terms: Net 30 Days Billing Start Date: 90 Days from the Effective Date Quote#: Q-350973 Page 2/4 Subscription Services Billing Frequency: Annual in Advance Subscription Services Quantity PEPM Monthly Price Annual Price UKG READY ACA MANAGER 400 USD 0.50 USD 200.00 USD 2,400.00 UKG READY BENEFITS 400 USD 5.00 USD 2,000.00 USD 24,000.00 UKG READY HR 400 USD 6.00 USD 2,400.00 USD 28,800.00 UKG READY INTEGRATION HUB 1 USD 0.00 USD 0.00 USD 0.00 UKG READY LEARNING 400 USD 2.50 USD 1,000.00 USD 12,000.00 UKG READY PERFORMANCE 400 USD 1.00 USD 400.00 USD 4,800.00 UKG READY RECRUITING 400 USD 2.00 USD 800.00 USD 9,600.00 Total Price USD 6,800.00 USD 81,600.00 Professional Services - Fixed Fee Billing Frequency: Billed 100% upon signature of the order form Professional Services - Fixed Fee Billing Role Quantity Unit Price Total Price UKG READY LAUNCH FIXED FEE Grouped 1 USD 17,600.00 USD 17,600.00 Total Price USD 17,600.00 Quote Summary Item Total Price Minimum Monthly SaaS Service & Equipment Rental Fee USD 6,800.00 Item Total Price Minimum Annual SaaS Service & Equipment Rental Fee USD 81,600.00 Item Total Price Total Fixed Fees USD 17,600.00 Order Notes: After the Initial Term, the Subscription Fee shall increase per annum by the Uplift amount set forth above. GENERAL TERMS: This Order is subject to and governed by the terms and conditions of the Master Services Agreement dated as of the Effective Date between UKG and Customer (hereafter “Agreement”). UKG will provide the Services in accordance with the Services Descriptions and Statements of Work (“SOW”) located at the following Quote#: Q-350973 Page 3/4 link, except if an SOW is attached to this Order, then the attached SOW shall control over the link SOW: www.ukg.com/services-descriptions All Customer Data (as defined in the Agreement) will be secured and protected as set forth in the Technical and Organizational Measures of UKG’s Data Processing Agreement as set forth in the Agreement. Any personal data provided to UKG through the Subscription Services will be processed in accordance with UKG’s Data Processing Agreement located at: www.ukg.com/ukg-unified-dpa UKG Launch is based on the Launch Quantity of 400 The Subscription Fees for the applicable monthly Minimum Quantities are due on the Billing Frequency stated on the Order Form and invoiced sixty (60) days in advance of the Billing Start Date and annual anniversary. To reconcile the actual employee counts, promptly following the end of each month starting from the Billing Start Date, UKG will invoice Customer for the actual number of employees in each month that exceeded the Monthly Minimum Quantity. The monthly subscription amount (number of employees multiplied by the applicable Subscription Fee) may increase or decrease if the number of employees increases or decreases, but in no event shall the monthly Subscription Fee be calculated on less than the Monthly Minimum Quantity above. Quote#: Q-350973 Page 4/4 IN WITNESS WHEREOF, the parties have caused this Order to be executed by their authorized representatives and shall be effective as of the date of the last signature below. CITY OF SAN RAFAEL Kronos SaaShr, Inc. Signature: /CS1/______________________________ Signature: /KS1/_____________________________ Name: /CN1/______________________________Name: /KN1/_____________________________ Title: /CT1/______________________________Title: /KT1/_____________________________ Date: /CD1/______________________________Date: /KD1/______________________________ The monthly price on this Order has been rounded to two decimal places for display purposes. As many as eight decimal places may be present in the actual price. Due to the rounding calculations, the actual price may not display as expected when displayed on your Order. Nonetheless, the actual price on your invoice is the true and binding total for this Order for purposes of amounts owed for the term. If you are tax exempt, please email a copy of your “Tax Exempt Certificate” to TaxExemption@ukg.com along with the quote number otherwise this order is subject to applicable taxes. The actual tax amount to be paid by Customer will be shown on Customer’s invoice.