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
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CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
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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 &
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Kinsey, Inc. to provide the technical services needed to implement the new software;
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and
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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:
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1. That the above recitations are true and correct.
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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.
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3. That the Finance Director is authorized to transfer $175,000 from the
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Innovation Technology Fund to the project budget.
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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:
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AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard.
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5 NOES: None.
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7 ABSENT: None.
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11 MATT "HALL," Mayor
12 ATTEST:
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»NE M. WOOD, City Clerk
16 (SEAL)/
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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.
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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.
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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