HomeMy WebLinkAbout2020-06-23; City Council; ; Approval to Execute Amendments to the Master Service Agreement and Purchase the Renewal of Hosting Services and Professional Services with Velocity Technology Solutions,CA Review CKM
Meeting Date: June 23, 2020
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Rachel Muller, Acting Information Technology Applications Manager
Rachel.Muller@carlsbadca.gov, 760‐268‐4746
Maria Callander, Information Technology Director
Maria.Callander@carlsbadca.gov,760‐602‐2454
Subject: Approval to Execute Amendments to the Master Service Agreement and
Purchase the Renewal of Hosting Services and Professional Services with
Velocity Technology Solutions, Inc. for the Lawson Human Capital
Management System software in an amount not to exceed $747,029 for
a term ending June 30, 2022.
Recommended Action
Adopt a resolution authorizing the city manager to execute amendments to the master service
agreement with Velocity Technology Solutions, Inc. for hosting services and professional
services for the Lawson Human Capital System software in an amount not to exceed $747,029
for a term ending June 30, 2022.
Executive Summary
Staff is recommending that the City Council authorize the city manager to execute amendments
to the existing agreement with Velocity Technology Solutions Inc. to extend the hosting services
and to include professional services for the implementation of employee self‐service
automation.
The city has contracted with Velocity to host the Lawson Human Capital Management system
software since 2010. The proposed hosting solution includes application management with
hosting support of the Lawson applications. Extending these services will provide economies by
maintaining hosting services for the Lawson infrastructure, while Velocity will provide expertise
and specialized managed services to support the HCM system.
The City Council’s approval is required under Carlsbad Municipal Code Section 3.28.060,
because the agreement will cost the city more than $100,000 per agreement year.
June 23, 2020 Item #5 Page 1 of 10
Discussion
Velocity hosts our Lawson human resources, benefits and payroll applications. The current
agreement with Velocity contains an automatic renewal provision, which extended the
agreement to June 30, 2021. The amendments remove the autorenewal provision, extend the
agreement’s hosting services through June 30, 2022, and allow for two subsequent one‐year
extensions of the hosting services. The amendments also include additional professional
services to implement ESS automation.
Payments under the amendments will be made annually starting with the amount of $357,936
(increased annually by 5%) for the hosting services with an additional $13,260 for the ESS
Automation services, for a total of $747,029 for the term ending June 30, 2022. The optional
two one‐year extensions, if needed, would increase the total to $1,556,008 through June 30,
2024. If the two one‐year extensions are needed, staff will bring them back for City Council
approval in the appropriate fiscal year.
The amendments are required to provide the operation of all the HCM system applications –
HR, Payroll and ESS.
The existing agreement covers:
All hardware, operating system, and database licenses and maintenance along with
infrastructure support for the Lawson HCM application
Full functional and technical support to the city’s HCM system and processes
Extended support, to include existing interfaces and Lawson Business Intelligence
reports.
Around the clock, seven‐day‐a week coverage
The amendments would allow the city to add applications and services, including digital
security improvements, new Microsoft features, workplace and tax applications and increased
employee self‐service capabilities.
Fiscal Analysis
With the amendments, the cost of the agreement will be $747,029 through June 30, 2022.
Funding for the cost of the agreement through June 30, 2021, is $371,196 and is included in the
Information Technology Department’s fiscal year 2019‐20 operating budget. Future years’
funding will be requested during each fiscal year’s budget process. The fy 2020‐21 budget
request is included in the proposed city budget for fy 2020‐21.
June 23, 2020 Item #5 Page 2 of 10
Next Steps
With the City Council’s approval, staff will execute the agreement documents with Velocity
Technology Solutions, Inc.
Environmental Evaluation (CEQA)
This action does not constitute a “project” within the meaning of the California Environmental
Quality Act under California Public Resources Code Section 21065 in that it has no potential to
cause either a direct physical change in the environment or a reasonably foreseeable indirect
physical change in the environment and therefore does not require environmental review.
Public Notification
Public notice of this item was posted in accordance with the Ralph M. Brown Act and it was
available for public viewing and review at least 72 hours prior to scheduled meeting date.
Exhibit
1. City Council resolution
Amendment & Possible Possible Possible
Extension Extension Extension Agreement
Description FY 2020‐21 FY 2021‐22 Total FY 2022‐23 FY 2023‐24 Total
Application Service Fees 350,652$ 368,184$ 718,836$ 386,594$ 405,923$ 1,511,353$
Infor ADFS 7,284 7,648 14,932 8,031 8,432 31,395
ESS Automation 13,260 ‐ 13,260 ‐ ‐ 13,260
Total 371,196$ 375,833$ 747,029$ 394,624$ 414,356$ 1,556,008$
Total for Initial Extension Agreement to June 30, 2022 747,029$
Total for Initial Extension with Possible Two One‐year Extensions Through June 30, 2024 1,556,008$
June 23, 2020 Item #5 Page 3 of 10
June 23, 2020 Item #5 Page 4 of 10
RESOLUTION NO. 2020-124
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENTS TO THE MASTER SERVICES AGREEMENT WITH VELOCITY
TECHNOLOGY SOLUTIONS, INC. FOR HOSTING SERVICES AND
PROFESSIONAL SERVICES FOR THE LAWSON HUMAN CAPITAL
MANAGEMENT SYSTEM (HCMS) SOFTWARE IN AN AMOUNT NOT TO
EXCEED $747,029 FOR A TERM ENDING JUNE 30, 2022.
Exhibit 1
WHEREAS, the City Council has determined that the most effective way to operate and support
the Lawson Human Capital Management Systems (HCMS) is through the use of a hosted solution; and
WHEREAS, the City of Carlsbad currently contracts with Velocity Technology Solutions, Inc.
(Velocity) for HCMS hosting services; and
WHEREAS, the current HCMS software (Version 10) is required to have annual support; and
WHEREAS, the current agreement with Velocity has auto-renewed to June 30, 2021; and
WHEREAS, the proposed amendments eliminate the autorenewal provision, add professional
services for ESS automation, extend the agreement term to June 30, 2022, and allow for two optional
one-year extensions of the agreement term; and
WHEREAS, the two one-year extensions, if needed, will be brought to the City Council for
approval and funding.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
Ill
Ill
1. That the above recitations are true and correct.
2. That the amendments, specifically Amendment 1 to Service Description No. 004
(Attachment A) and Professional Service Description 010 -ESS User Automation
(Attachment A.l), are approved and the city manager is authorized to execute them on
behalf of the City.
June 23, 2020 Item #5 Page 5 of 10
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 23rd day of June, 2020, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
None.
MATT HALL, Mayor
June 23, 2020 Item #5 Page 6 of 10
DocuSign Envelope ID: 915AC4A9-7082-4E13-8B0B-FE7CA071B8E7
Vel(•)city ATTACHMENT A
Amendment 001 to Service Description No. 004
This Amendment No. 001 is entered into as of the date last signed by a party hereto, and made a part of Service Description No.
004 ("SD#4") dated January 25, 2017, and the Master Agreement for Velocity Services, including (1) the Addendum to the
Master Service Agreement for Application Management and Hosting Services, (2) the Addendum to the Master Service
Agreement for Consulting Services and (3) Rider to the Master Agreement, all dated as of February 16, 2010 (collectively the
"Agreement") by and between Velocity Technology Solutions, Inc. ("we", "us", "our" or "Velocity"), and City of Carlsbad
("Customer").
The parties hereby amend the above referenced SD#4 as follows, all effective July 1, 2020:
I. The paragraph below the first table in Section I of Attachment 00 I to SD#4 is deleted replaced in its entirety to read as follows:
The Additional Applications consist of: lnfor ADFS ($607.00), Microsoft Add-ins ($350.00), lnfor Process Automation
($1,117.00), Design Studio ($195.00), Lawson Business Intelligence (2 core) ($1,450.00), lnfor Workplace Standard (incl
SharePoint) ($650.00), BSI TaxFactory ($695.00), Disaster Recovery (48 hour RTO, 24 hour RPO) (incl.), LDAP Bind (incl.) and
VCAMP Base License Fee ($2,524.21) (the "VCAMP Base License Fee"). The VCAMP Base License Fee is included in the
current monthly Application Service Fee hereunder.
2. The following paragraph in Section 4 Term of SD#4 is deleted and replaced in its entirety to read as follows:
The term of SD#4 shall begin on January 25, 2017 and shall expire on June 30, 2022 (the "Service Description Term"), unless
terminated earlier or extended in accordance with SD#4 or the Agreement. Notwithstanding Section 4 of SD#4, the Services under
SD#4 and Attachment 001 shall end on June 30, 2022; however, the parties may, upon mutual written consent, renew SD#4 for
two (2), one (I) year renewal terms (each a "Renewal Tenn"). Thereafter, SD#4 may only be renewed by mutual written consent
of the Parties and, notwithstanding anything to the contrary herein, in the event that either Party gives the other Party a written
notice of non-renewal as provided in the Agreement, Velocity will not thereafter be obligated to provide Customer with Upgrades
as provided in Section l .H.
3. Effective July l, 2020, the minimum Application Service Fee set forth in Section 2 of Attachment 001 to SD#4, as currently in
effect, is increased by seven thousand two hundred eighty-four dollars ($7,284.00) per year, payable yearly in advance for an annual
aggregate Application Service Fee of three hundred fifty-seven thousand nine hundred thirty-five dollars and eighty-eight cents
($357,935.88).
4. Terms bearing initial capital letters not otherwise defined herein shall have the meanings ascribed to them in the Agreement. Except
as otherwise expressly provided herein, the terms of the Agreement, and its Service Descriptions and Attachments, all remain in
full force and effect. In the event of any conflict, the terms of this Amendment No. 001 shall control over any contrary provision
of the Agreement, its Service Descriptions or Attachments with regard to the subject matter set forth herein.
H s caused its authorized representative to execute this Amendment No. 001 as of the date set forth above:
CI
By:
Name (type or print)
Date
June 23, 2020
VELOCITY TECHNOLOGY SOLUTIONS, INC.
1
By: James
Mcinnes
James Mcinnes
Name (type or print)
coo
Title
17 June 2020
Date
Velocity Technology Solutions, Inc.
Proprietary and Confidential Information
Form 2015-07-13 DocuSlgn CTR#007262 Item #5 Page 6 of 10
June 23, 2020 Item #5 Page 7 of 10
DocuSign Envelope ID: 915AC4A9-7082-4E13-8B0B-FE7CA071 B8E7
Professional Service Description
010
ESS User Automation
Prepared for:
City of Carlsbad
By:
Jim Hayek
June 23, 2020
ATTACHMENT A.l
Ve/@city
June 23, 2020 Item #5 Page 8 of 10
DocuSign Envelope ID: 915AC4A9-7082-4E13-8808-FE7CA07188E7
Vel@city
Overview
This Professional Service Description O IO ("Service Description") is entered into by Velocity Technology Solutions,
Inc. ("Velocity"), and City of Carlsbad ("Customer") effective June 23, 2020 (the "Effective Date") under the terms
of the Master Agreement for Velocity Services, including (I) the Addendum to the Master Agreement for Application
Management and Hosting Services, (2) the Addendum to the Master Agreement for Consulting Services, and (3) the
Rider to the Master Agreement, all dated effective February 16, 2010 (the "Agreement") to document the Services
Velocity will provide under the Agreement.
Project Scope
Velocity wiJI provide functional and technical consulting services to assist Customer with its Infor Lawson
("Lawson") software and associated applications. Specifically, Velocity will: · ·
• Build IPA flow to create new ESS users and to assign proper security access;
• Velocity will meet with Customer's project team to review the requirements and approach and to set the
project milestones. Velocity will document the milestones and present to the Customer for approval;
• Once the milestones have been approved, Velocity will create the design document and submit it to the
Customer for approval;
• Once approved, Velocity will begin the work on IPA flow to meet the requirements of the design
document. Velocity will perform an initial 'QA' of the flow in the 'DEV' environment, before making it
available to the Customer for testing;
• Velocity resources wilJ be available during Customer testing to address issues as they are identified;
• Velocity will make adjustments and corrections as necessary, post training and then resubmit to the
Customer for validation;
• Once fully tested, Velocity will provide the promotion details to the Customer. The Customer will
submit a new request to promote the IP A flow to production;
• Velocity will be available to assist with any issues once the flow has been promoted;
• At the end of two weeks, the flow will be transitioned to Velocity support and the project will be
completed;
• Provide Project Management.
Project Assumptions:
• Velocity will perform this work remotely;
• Velocity will perform this work in the 'DEV' environment;
• Velocity will be using a Customer supplied 'ProcessFlow' as the base for this project;
• Velocity wiH base its development on the approved design document. Any changes to that design may
result in a Change Order;
• Customer will request a data refresh from 'PROD' to 'DEV' if necessary to have current data for testing;
• Customer wiU be responsible for providing resources for data validation and testing;
• Customer will provide timely responses to requests and approvals;
• Customer agrees t,o adhere to the dates set forth in the milestones once defined.
Note: Velocity will require a minimum of.two (2) weeks from the date the Service Description is executed to
secure resources for this effort.
Customer and Velocity subject matter experts will collaborate dw·ing the design phase of the project to develop a
comprehensive functional and technical specification and detailed project plan. The Velocity Project Manager
assigned will review the detailed specifications and the project plan with Customer. Customer and Velocity will
indicate agreement on the detailed project plan and program specifications prior to materially beginning efforts. Such
agreement is to be confirmed by the parties through email or other written means.
2
Velocity Technology Solutions, Inc. Services Descriplion
Proplietary and Confidential Information
Form 2018-09-07 -DocuSlgn
CTR#007192
June 23, 2020 Item #5 Page 9 of 10
DocuSign Envelope ID: 915AC4A9-7082-4E13-8B0B-FE7CA071B8E7
Vel@city
Project Schedule
The Services shall start on or about July 1, 2020 and are scheduled to be completed on or about Sept I, 2020 (the
"Project Period").
Customer Responsibilities
Customer will provide suitable system access for Velocity personnel performing the Services. Customer will make
appropriate staff resources available during the course of the Services.
Estimated Effort
Estimates are provided by task:
Functional Support
Technical Support
Project Management
Total
Standard Rates By Role
Project Task Hours
2.50
56.50
9.00
68.00
The following table defines project roles that Velocity offers during the course of an engagement. Services ar.e
provided by Velocity on a time and materials basis at the applicable "Hourly Rate" specified in the table below for
each role. Such charges ("Service Charges") apply for all hours worked. Velocity may adjust the Hourly Rate to its
then current rate on or after January 1 of each year.
NOTE ON RATES: Hours worked by a single consultant in excess often (I 0) in a day at the request of the Customer
are charged at the Hourly Rate shown above plus a premium of twenty-five dollars ($25.00) per hour. Hours worked
on holidays and weekends at the request of the Customer are charged at the hourly rate plus a premium of twenty-five
dollars ($25.00) per hour. Out of town travel time is charged at seventy-five dollars ($75.00) per hour with a maximum
of four ( 4) hours for each one-way leg of a trip.
Expenses
Customer shall reimburse Velocity for all out-of-pocket expenses incurred by it in performing the Services m
accordance with the Agreement.
Estimated Charges
The estimate to implement the Services provided in this Service Description is sixty-eight (68) hours or thirteen
thousand two hundred sixty dollars ($13,260.00). Estimates are for guidance but do not alter the application of Service
Charges at the Hourly Rate for all hours actually worked and any hours above the Estimated Effort shall be charged
at the applicable hourly rate.
Payment of Service Charges
Service Charges at the Hourly Rate for all hours worked in providing the Services shall be paid by Customer in
accordance with the Agreement.
3
Velocity Technology Solutions. Inc. Services Description
Proprietary and Confidential Information
Form 2018-09-07 -DocuSign CTR#007192
June 23, 2020 Item #5 Page 10 of 10
DocuSign Envelope ID: 915AC4A9-7082-4E13-8B0B-FE7CA071B8E7
Vel<it)cit;y
Change Management
In the event that Customer requests Services that are not defined or authorized in the scope of this Service Description,
the Velocity Engagement Manager will develop a Service Description Amendment to identify the requested Services
and the impact of this change. A Service Description Amendment will become effective only when signed by both
parties. In certain circumstances, a separate Service Description for the expansion of Services will be required.
Project Sign Off
Upon completion of Customer validation of Customer's instance of the Applications, the Customer Executive Sponsor
will confinn Customer acceptance of the Services by signing a Project Acceptance Letter ("Project Sign Off'). Project
Sign Off represents completion of the Project Period and the Services. In the event a Project Acceptance Letter is not
signed, Project Signoffwill be deemed to have occurred on the date which is five (5) business days from completion
of Customer's validation of Customer's instance of the Applications.
Relation to Agreement
This Service Description is incorporated into and governed by the Agreement. The provisions of this Service
Description shall control over any inconsistent terms of the Agreement. Tenns bearing initial capital letters not
otherwise defined in this Service Description have the meanings ascribed to them in the Agreement.
IN WITNESS WHEREOF, the Parties hereto have executed this Service Description by their duly authorized
representatives as of the date set forth above.
VELOCITY TECHNOLOGY SOLUTIONS, INC.
By:
James Mcinnes
Name (type or print)
~,v MA..u.lroll
Name (type or print)
coo
Title
Date
June 23, 2020
Title
17 June 2020
Date
4
Velocity Te<:hr,cjogy Solutions. Inc. Services Desa!ption
Propriet81}' and Confidertlal Information
Form 2018-09--07 -DocuSlgn
CTR#007192
Item #5 Page 10 of 10
5. Extension of Hosting Agreement with
Velocity for HCMS
Maria Callander, IT Director
Rachel Muller, Project Manager
June 23, 2020
Background
•Velocity hosts our human resources, benefits
and payroll applications
•Original agreement approved by council in 2010
•Amendments to extend in 2015 and 2017
•Current agreement has an automatic renewal
provision which extended to June of 2021
2
Velocity Hosting Services
•All hardware, operating systems and licensing
•Functional and technical support
•Backup and recovery services
•Interfaces to other city systems
3
Proposed Amendments
•Extends hosting agreement through FY 2021-22
•Removes auto-renewal provision
•Allows for two 1-year extensions if needed
•Adds new user security technology (ADFS)
•Adds professional services to automate user
provisioning (ESS Automation)
4
Fiscal Analysis
FY 2020-21 FY 2021-22 Total
Hosting $ 350,652 $ 368,184 $ 718,836
Infor ADFS 7,284 7,648 14,932
User Provisioning 13,260 -13,260
Total $ 371,196 $ 375,833 $747,029
5
Fiscal Analysis
6
FY 2020-22 Possible
Extension
2022-23
Possible
Extension
2023-24
Possible
Agreement
Total
Hosting $ 718,836 $ 386,594 $405,923 $ 1,511,353
Infor ADFS 14,932 8,031 8,432 31,395
User provisioning 13,260 --13,260
Total $ 747,029 $ 396,624 $ 414,356 $ 1,556,008
Recommended Action
•Adopt a resolution authorizing the city
manager to execute amendments with
Velocity for hosting and professional services
for the Lawson Human Capital Management
System software in an amount not to exceed
$747,029 for a term ending June 30, 2022
7
Thank you
8