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HomeMy WebLinkAbout2011-06-21; City Council; 20591; EXTENSION HUMAN CAPTIAL MANAGEMENT AGREEMENTSCITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 20,591 06/21/11 FIN/HR/IT EXTENSION OF AGREEMENTS FOR HUMAN CAPITAL MANAGEMENT SYSTEM IMPLEMENT A TION SER VICES DEPT. HEAD CITY ATTtf CITYMG RECOMMENDED ACTION: 2011-137Adopt Resolution No. to approve and authorize execution of Amendment No. 4 to the professional services agreement with Kinsey & Kinsey, Inc. for implementation services associated with the Human Capital Management System (HCMS) project. 9D11-1^8Adopt Resolution No. 10 approve and authorize execution of Amendment No. 1 to the professional services agreement with Leckey Consulting, Inc. for implementation services associated with the HCMS project. ITEM EXPLANATION: One way the City of Carlsbad is preparing to meet the future needs of the community and make the most efficient use of taxpayer dollars is by investing in new technology. Ultimately, the proper use of technology helps the city provide value through greater levels of service, more efficiencies and a lower total cost. Although implementing new technology requires time, staff resources and, often, consultant support, the pay offs are long-lasting. The Human Capital Management System, or HCMS, is a computer software solution that will upgrade and unify the city's antiquated, manual systems for timekeeping, payroll and human resources processes throughout all City departments. This business system is designed to integrate the activities associated with the entire employment life cycle - from application for a City position to the end of an individual's employment - and replace the inefficient and redundant processes currently in place. This system will also provide valuable information concerning the employee workforce, helping managers and supervisors increase productivity and better allocate staff resources to meet community needs. This project is being completed in two phases. Phase 1 includes the automation of all core human resources, payroll and centralized timekeeping and includes a pilot program for full- time employees to enter their timecards directly on-line. One of the features of the new system is its capability for Activity Based Tracking. This new capability will track an employee's time at an activity and/or programmatic level. Time clocks for all hourly employees will be operational, and the "employee self service" features of the software (allowing employees to view and adjust some of their personal information) will be installed. Phase 2 will begin during the first quarter of 2012 and involve further automation of Human Resource processes. DEPARTMENT CONTACT: Julie Clark 760-602-2440 iulie.clark@carlsbadca.qov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D Dn D Page 2 This project began in March 2010 with an anticipated "go-live" date of August 1, 2011. The team assigned to this project is made up of staff members from the Finance, Human Resources and Information Technology departments partnering with a team of HCMS experts. Approximately eight city staff members are assigned to the HCMS team. The majority of the work associated with this project is being accomplished by internal staff who are familiar with the city's existing operating and computing environment Using this approach, City employees are becoming well versed in the new software capabilities and are being trained to operate the system independently going forward. Consultants are providing technical expertise on the software, teaching the internal staff about the software capabilities, documenting operating procedures and managing the overall project implementation - all ongoing and necessary functions until the system is fully operational. Since this effort began, the HCMS team has experienced unforeseen staff shortages, unexpected leaves of absence, and other departmental resource conflicts, significantly affecting the project schedule. Some of the work originally assigned to the internal project team has had to be transferred to the outside consultants, in some cases increasing the initial scope of work to the consultant contracts. These internal resource issues have compromised the implementation schedule and the project "go-live" date. The HCMS project team has evaluated the work remaining to complete Phase 1 and is recommending that the implementation schedule be extended as reflected in each of the respective agreements, or no later than January 3, 2012. In order to complete Phasel, it is staff's recommendation that the consulting contracts for Kinsey & Kinsey, Inc. and Leckey Consulting, Inc. be increased by $175,000 for each contract to accommodate the additional time required. Based on the purchasing policy of the City of Carlsbad, a professional services agreement may be amended up to 25 percent of the original agreement amount. The City Manager has authorized three amendments to the Kinsey & Kinsey, Inc. contract - two amendments for services not anticipated at the time of the original agreement and one amendment that corrected the contract end date and had no fiscal impact. City staff has identified additional services required of Kinsey & Kinsey to complete the project, and the cost of these additional services raises the total contract amount for this firm by $175,000, which is in excess of 25 percent of the original agreement amount. Therefore, Amendment No. 4 to the Kinsey & Kinsey contract requires City Council approval. The additional work required of Leckey Consulting, Inc. also requires a contract amendment at this time. City staff has identified additional services required of Leckey Consulting to complete the project by the revised project deadline, and the cost of these additional services raises the total contract amount for this firm by $175,000, which is in excess of 25 percent of the original agreement. Therefore, Amendment No. 1 to the Leckey Consulting, Inc. contract requires City Council approval. It should be noted that both of these consultant contracts include language that provides a disincentive to the contractor, including loss of retention funds, if the targeted go-live date is not met. Page3 FISCAL IMPACT: PROJECT COST SUMMARY FOR THE HUMAN CAPITAL MANAGEMENT SYSTEM (HCMS) PROJECT - PHASE 1 Original Project Budget (including contingency) Amendments Revised Original Budget Software and Implementation Contracts (Completed -Actual Costs) Estimated Software and Implementation Costs to Complete Proposed Amendment No. 4 to Kinsey & Kinsey Agreement Proposed Amendment No. 1 to Leckey Consulting Agreement TOTAL ESTIMATED PROJECT COST ADDITIONAL APPROPRIATION REQUIRED $2,840,000 $12,800 $2,852,800 $1,950,000 $902,800 $175,000 $175,000 $3,202,800 $350,000 The original contract amount with Kinsey & Kinsey, Inc. was $351 ,802, with two additional amendments: Amendment No. 1 of $86,400 and Amendment No. 2 of $132,640. Staff is requesting additional funds in the amount of $175,000 to be paid on a time and materials basis for services outlined in Amendment 4. The original contract amount with Leckey Consulting, Inc. was $580,000. Staff is requesting additional funds in the amount of $175,000 to be paid on a time and materials basis for services outlined in Amendment 1 . There are sufficient funds in the Innovation Technology Fund to cover these expenses and the Finance Director will transfer these funds to the project budget. ENVIRONMENTAL IMPACT: This amendment is statutorily exempt from CEQA pursuant to Public Resources Code Section 21080(b)(1). EXHIBITS: 2011 1371 . Resolution No. _ amending the professional services agreement with Kinsey & Kinsey, Inc. for implementation services associated with the Human Capital Management System (HCMS) project. 201 1 -12. Resolution No. ___1_ amending the professional services agreement with Leckey Consulting, Inc. for implementation services associated with the Human Capital Management System (HCMS) project. 3. Amendment No. 4 to agreement with Kinsey & Kinsey, Inc. 4. Amendment No. 1 to agreement with Leckey Consulting, Inc. 1 RESOLUTION NO. 2011-137 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING 3 AMENDMENT NO. 4 TO THE AGREEMENT WITH 4 KINSEY & KINSEY, INC. FOR HUMAN CAPITAL MANAGEMENT SYSTEM IMPLEMENTATION 5 SERVICES AND THE APPROPRIATION OF FUNDING 6 WHEREAS, the City of Carlsbad recognizes that the Human Capital Management System, or HCMS, is a computer software solution that will upgrade and o 9 unify the timekeeping, payroll and human resources processes throughout all City 10 departments; and 11 WHEREAS, the City has embarked upon a phased approach to transition to this 12 software solution, with the ultimate goal of replacing the manual and redundant I T processes that are currently in place; and 14 WHEREAS, after careful review and evaluation, the City selected Kinsey & 15 Kinsey, Inc. to provide the technical services needed to implement the new software; 16 and 17 WHEREAS, additional funds are required to extend the project go-live date to no18 19 later than January 3, 2012 and to accomplish the major deliverables of this phase of the 20 project; and 21 WHEREAS, sufficient funds are available in the Innovation Technology Fund for 22 this effort. 23 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 24 Carlsbad, California, as follows: 25 1. That the above recitations are true and correct. 26 27 28 1 2. That Amendment No. 4 to the Agreement with Kinsey & Kinsey, Inc., a 2 copy of which is attached hereto, is hereby approved and the Mayor is authorized to execute the agreement on behalf of the City. 4 3. That the Finance Director is authorized to transfer $175,000 from the 5 Innovation Technology Fund to the project budget. 6 7 " 8 " 9 // 10 // 11 // 12 // 13 // 14 15 16 17 18 " 19 // 20 // 21 // 22 // 23 „ 24 25 26 27 28 1 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council 2 of the City of Carlsbad on the 21st day of June 2011, by the following vote to wit: 3 .. AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard. 4" 5 NOES: None. 6 7 ABSENT: None. s" 9 10 11 MATT "HALL," Mayor 12 ATTEST: 13 14 15 »NE M. WOOD, City Clerk 16 (SEAL)/ 17 18 19 20 21 22 23 24 25 26 27 28 1 RESOLUTION NO. 2011-138 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AMENDMENT NO. 1 3 TO THE AGREEMENT WITH LECKEY CONSULTING, INC. FOR HUMAN CAPITAL MANAGEMENT SYSTEM 4 IMPLEMENTATION SERVICES AND THE APPROPRIATION 5 OF FUNDING 6 WHEREAS, the City of Carlsbad recognizes that the Human Capital 7 Management System, or HCMS, is a computer software solution that will upgrade and 8 unify the timekeeping, payroll and human resources processes throughout all City departments; and 10 WHEREAS, the City has embarked upon a phased approach to transition to this 11 software solution, with the ultimate goal of replacing the manual and redundant 12 processes that are currently in place; and WHEREAS, after careful review and evaluation, the City selected Leckey 15 Consulting, Inc. to provide the project management services needed to implement the 16 new software; and 17 WHEREAS, additional funds are required to extend the project go-live date to no 18 later than January 3, 2012 and to accomplish the major deliverables of this phase of the 19 project; and 20 WHEREAS, sufficient funds are available in the Innovation Technology Fund for 21 this effort. 22 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 23 Carlsbad, California, as follows: 25 1. That the above recitations are true and correct. 26 27 28 1 2. That Amendment No. 1 to the Agreement with Leckey Consulting, Inc., a 2 copy of which is attached hereto, is hereby approved and the Mayor is authorized to execute the agreement on behalf of the City. 4 3. That the Finance Director is authorized to transfer $175,000 from the 5 Innovation Technology Fund to the project budget. 6 7 " 8 " 9 // 10 // // 12 // 13 // 14 15 16 17 18 " 19 // 20 // 21 // 22 // 23 „ 24 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 21st day of June 2011, by the following vote to wit: AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard. NOES: None. ABSENT: None. MAtTHALl, Mayor ATTEST: )RRAINE M. WOOD, City Clerk (SEAt) x../ AMENDMENT NO. 4 TO AGREEMENT FOR LAWSON IMPLEMENTATION SERVICES (Kinsey & Kinsey, Inc.) This Amendment No. 4 ("Amendment") is entered into and effective as ofthe^frft day of 2011, amending the agreement dated April 7, 2010 (the "Agreement") by and ri the City of Carlsbad, a municipal corporation, ("City"), and Kinsey & Kinsey, Inc. ("Qntractor") (collectively, the "Parties") for the Lawson system implementation relating to the Human Capital Management System ("HCMS") project. RECITALS A. The Parties desire to alter the Agreement's scope of work to provide additional consulting support to the project due to City staffing constraints and other unforeseen circumstances. This consulting support will supplement the project team resources to assist the City in areas as directed by the City. B. The Parties have negotiated and agreed to a supplemental scope of work and fee schedule, which is identified as Exhibit "A-4", Scope of Services and Fees. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. In addition to those services contained in the Agreement and Amendments 1, 2 and 3, Contractor will provide those additional services described in Exhibit "A-4" which is attached hereto and incorporated herein. 2. City will pay Contractor for all work associated with those additional services further described in Exhibit "A-4" in an amount that is not-to-exceed $175,000, which includes time and materials fees in an amount not-to-exceed $150,000 and travel expenses in an amount not-to-exceed $25,000. Contractor will provide City, on a monthly basis, copies of invoices sufficiently detailed to include hours performed, hourly rates, and related activities and travel costs for approval by City. With this Amendment 4, the new not-to-exceed amount for the entire Agreement and past amendments is $745,842 (compared to the original amount of $570,842). 3. Contractor will complete all work and services described in Exhibit "A-4" by the end of the original Agreement date (as amended). 4. Except as specifically modified herein, all other provisions of the Agreement will remain in full force and effect. 5. All requisite insurance policies to be maintained by Contractor pursuant to the Agreement will include coverage for this Amendment. 6. The individuals executing this Amendment and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Amendment No. 4. (Signature Page Follows) 1 City Attorney Approved Version #05.22.01 CONTRACTOR •By: n (sign here) l?n\il kuf CJ (print name/title) i v\st .1 k.'. CITY OF CARLSBAD, a municipal corporation of the State of California By: ATTEST: r Mayor t .1 _ -mai(e-mail address) w • (sign here) *AINEM. WOOD Clerk (print name/title) C (e-mail address) If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a Corporation. Agreement must be signed by one corporate officer from each of the following two groups. *Group A. Chairman, President, or Vice-President "Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPRO, RANALD O FORM: t Lll, City Attorney sistant City Attorney City Attorney Approved Version #05.22.01 It EXHIBIT "A-4" SCOPE OF SERVICES AND FEES Contractor agrees to the following scope of services for Amendment 4: 1. Task 1 - Increase total onsite consulting support beyond the Agreement and Amendments 1 and 2 by 800 hours. Contractor agrees to be onsite for the following five months in addition to those months defined in the Agreement and Amendments 1 and 2; specifically, September 19, 2011 through February 16, 2012. Tasks that the Contractor may work on relating to this Amendment are as follows. a. Assistance with integration and parallel testing. b. Assistance with integration decisions between Lawson and CyberShift. c. Data conversion design questions (i.e., approach, data mapping, using add-ins for the import, etc.). d. Configuration changes during the City's testing of the Lawson system. e. Development of additional custom Lawson reports beyond the scope of the original Agreement (i.e., beyond three reports). f. Development of additional Lawson ProcessFlows beyond the scope of the original Agreement (i.e., beyond five ProcessFlows). g. Development of additional Lawson Smart Notes beyond the scope of the original Agreement (i.e., beyond 10 Smart Notes). h. Creation of user guides and training materials, i. Assistance with end user training. The exact tasks that the Contractor will work on will be determined by the City and will vary depending on the needs of the project. The City will confirm in writing to Contractor the scope of the task that Contractor will perform and Contractor will confirm in writing to City the estimated not-to-exceed time and material fees to complete the task. 2. Task 2 - An additional 50 hours of technical development work will be allocated for making changes to interfaces, ProcessFlows, dashboards, custom reports and/or SmartNotes that are made after the City has tested and accepted the interfaces (e.g., due to changes in requirements based on integration or parallel testing of CyberShift and/or Lawson that occurs later in the schedule). The exact tasks that the Contractor will work on will be determined by the City and will vary depending on the needs of the project. City Attorney Approved Version #05.22.01 Fees for this Amendment: 1. Task 1 - The 800 additional hours will be billed at $175 an hour (not-to-exceed $140,000) for functional consultants (e.g., Brian Thome) and travel expenses not-to-exceed $25,000. If a technical consultant is required and used for development work, the technical consultant will charge $200 per hour. Unless otherwise agreed to in writing by the City, all 800 hours of additional consulting support will be delivered by Brian Thome. If the City believes that Brian Thome's functional consulting services are not needed later in the project, the City, at its sole discretion, will have the option to: 1) Reallocate the remaining budget for the 800 hours to development work (i.e., ProcessFlows, SmartNotes, interfaces, reports, etc.) to be completed by a technical consultant from Kinsey or its subcontractors, or 2) Elect to not use the remaining budget for the project and terminate the Agreement. If this reallocation or termination were to occur, the City will give Kinsey a two week notice. 2. Task 2 - These services will be charged at $200 an hour (not-to-exceed $10,000). Any development work will be done offsite. Therefore, no travel expenses have been allocated to this task. 3. A 10% payment retention (up to $15,000) relating to services provided by the Contractor for Amendment 4 will be withheld for each invoice and will only be paid to the Contractor if the HCMS system is in production use by no later than January 3, 2012. At a minimum, production use is defined as centralized usage of the new HR, Payroll and timekeeping solution, and if implemented for the first payroll in the beginning of the 2012 calendar year, payroll history will not be required. If this deadline is not met, the Contractor will forgo payment of this retention. City Attorney Approved Version #05.22.01 /3 AMENDMENT NO. 1 TO AGREEMENT FOR HCMS PROJECT MANAGEMENT SERVICES (Leckey Consulting, Inc.) This Amendment No. 1 ("Amendment") is entered into and effective as oftheeXX day of 2011, amending the agreement dated February 17, 2010 (the "Agreement") by between the City of Carlsbad, a municipal corporation, ("City"), and Leckey Consulting, Inc., Corporation ("Contractor"). RECITALS A. The Parties desire to alter the Agreement's scope of work to provide additional project management consulting services to the HCMS project due to City staffing constraints. B. The Parties have negotiated and agreed to a supplemental scope of work and fee schedule, which is identified as Exhibit "A-1", Scope of Services and Fees. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. In addition to those services contained in the Agreement, Contractor will provide those additional services described in Exhibit "A-1" which is attached hereto and incorporated herein. 2. City will pay Contractor for all work associated with those additional services further described in Exhibit "A-1" in an amount that is not-to-exceed $175,000, which includes time and materials fees in an amount not-to-exceed $157,250 and travel expenses in an amount not-to-exceed $17,750. Contractor will provide City, on a monthly basis, copies of invoices sufficiently detailed to include hours performed, hourly rates, and related activities and travel costs for approval by City. With this Amendment 1 , the new not-to-exceed amount for the entire Agreement and past amendments is $755,000 (compared to the original amount of $580,000). 3. Contractor will complete all work and services described in Exhibit "A-1" by the end of the original Agreement date (as amended). 4. Except as specifically modified herein, all other provisions of the Agreement will remain in full force and effect. 5. All requisite insurance policies to be maintained by Contractor pursuant to the Agreement will include coverage for this Amendment. 6. The individuals executing this Amendment and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Amendment No. 1 . (Signature Page Follows) City Attorney Approved Version #05.22.01 CONTRACTOR *By: (sign 7? CITY OF CARLSBAD, a municipal corporation of the State of California By: (print name/ti M itli/ Mayor ATTEST: (LORRAINE M. WOOD City Clerk If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a Corporation, Agreement must be signed by one corporate officer from each of the following two groups. *Group A. Chairman, President, or Vice-President "Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: City Attorney City Attorney City Attorney Approved Version #05.22.01 EXHIBIT "A-1" SCOPE OF SERVICES AND FEES Contractor agrees to the following scope of services for Amendment 1: 1. Task 1 - Increase total project management consulting services beyond the Agreement by 925 hours. Contractor agrees to provide project management consulting services for the following six months in addition to those months defined in the Agreement; specifically August 22, 2011 through February 16, 2012. Tasks that the Contractor will work on relating to this Amendment are as follows. a. Provide day-to-day project management. b. Ensure that the HCMS vendor's responsibilities of the project are satisfactorily met. c. Ensure that the City's responsibilities of the project are satisfactorily met. d. Review all major deliverables produced by HCMS vendors and the City. e. Monitor the project plan and schedule and make course corrections as necessary. f. Manage issues and ensure that resolutions are finalized in a timely manner. g. Enforce project scope. h. Ensure end user training and communication are effective. i. Proactively manage risk. j. Re-direct resources as capabilities and/or needs change. k. Track and communicate project budget/costs. I. Review and approve all vendor invoices. m. Identify data integration requirements to support required functionality with other systems. n. Hold project team status meetings. o. Report and present biweekly status reports to the HCMS Steering Committee. p. Provide hands-on assistance with detailed tasks as needed (e.g., technical specifications, user guides, training materials, testing, end user training, etc.). The exact tasks that the Contractor will work on will be determined by the City and will vary depending on the needs of the project. City Attorney Approved Version #05.22.01 Fees for this Amendment: 1. Task 1 - The 925 additional hours will be billed at $170 an hour (not-to-exceed $157,250) for project management services and travel expenses not-to-exceed $17,750. Unless otherwise agreed to in writing by the City, all 925 hours of additional project management consulting services will be delivered by Steve Leckey. If the City believes that Steve Leckey's project management services are not needed later in the project, the City at its sole discretion will have the option to not use the remaining budget for the project and terminate the Agreement. If this termination were to occur, the City will give the Contractor a two week notice. 2. A 10% payment retention (up to $15,725) relating to services provided by the Contractor for Amendment 1 will be withheld for each invoice and will only be paid to the Contractor if the HCMS system is in production use by no later than January 3, 2012. At a minimum, production use is defined as centralized usage of the new HR, Payroll and timekeeping solution, and if implemented for the first payroll in the beginning of the 2012 calendar year, payroll history will not be required. If this deadline is not met, the Contractor will forgo payment of this retention. Additionally, if the go-live date is beyond December 5, 2011, the Contractor will work free of charge for up to one month. City Attorney Approved Version #05.22.01 n