HomeMy WebLinkAbout7/21/1999 - STAFF REPORTS (15) DATE: July 21, 1999
TO: City Council
FROM: Assistant City Manager -Administration
CONTRACT CHANGE AUTHORIZATION FOR PAYROLL41UMAN RESOURCES SYSTEM
WITH HIGH LINE CORPORATION
RECOMMENDATION:
It is recommended that the City Council approve a Contract Change Authorization in the
amount of$66,520 for the Y2K ready Payroll/Human Resources System contract with
High Line Corporation.
BACKGROUND:
On January 21, 1998, City Council approved the award of a contract for the City's
Integrated Financial System to Pentamation for $311,246 and a contract for the
Payroll/Human Resources System to High Line Corporation in the amount of$157,027.
These systems were necessary for the City to become Y2K ready before January 1,2000.
It appears that the Pentamation System installation, which is almost completed, will be
able to be finished within cost authorizations of the City Council.
The High Line System, however, will not be able to be fully installed and implemented
within the$157,027 authorized by the City Council. The High Line System will automate
the City's human resources and payroll systems beyond any level previously attained by
the City. To accomplish this, the High Line System is developed in such a way as to
allow the customer, the City of Palm Springs in this case, to customize the software for
every aspect and detail of payroll and human resources records and manpower tracking.
This makes the system extremely complex, also beyond anything envisioned by the staff
and the High Line Corporation back in January, 1998. Consequently, additional training
and support has been, and will be, required by the City from the High Line Corporation.
Although$48,000 was allowed for this training and support, it appears that an additional
$37,000 will be necessary to complete the project.
Additionally,two software revisions were requested of High Line Corporation. The first
was a screen display layout revision in order to speed up data entry throughout the life of
the system. Secondly, since the City of Palm Springs did not have the source code for the
software,the payroll check design had to be customized for our City by High Line. These
two changes cost$5,000 each.
When the City Council was asked to approve the acquisition of these systems in January
1998, the costs were reported as anticipated "costs over the next three years." City
Council approved$157,027 toward the acquisition of the High Line System to cover costs
for the first three years. A review of the contract shows that the total cost for the first
three years really amounts to$176,547, or$19,520 more. It appears that this difference
is made up of 1) the omission of the costs for the third year of software maintenance and
IM
I M
July 21, 1999
Contract Change Authorization For PayrolUHuman Resources
System With High Line Corporation
support and 2) an underestimation of the training costs($43,500 reported in January 1998
vs. $48,000 stated in the contract).
Therefore, the total contract change authorization being requested is$66,520, as follows:
a) Additional training $37,000
b) Software revisions (2 @ $5,000) 10,000
c) Initial costs understatement 19.520
XfLL2.0
Funds are available in the 1999-2000 Fiscal Year budget for this requested authorization.
—44a���Dallas J. Flicek, ssistam City na 'r Administration
APPROVED aj}}"fi�t
ATTACHMENTS:
1. Minute Order
MINUTE ORDER NO. r �-�f
APPROVING A CONTRACT CHANGE
AUTHORIZATION FOR A CONTRACT WITH
HIGH LINE CORPORATION FOR THE
PAYROLL/HUMAN RESOURCES SYSTEM IN
AN AMOUNT OF$66,520
I HEREBY CERTIFY that this Minute Order, approving a Contract Change
Authorization for a Contract with High Line Corporation for the Payroll/Human
Resources System in an amount of$66.520, was adopted by the City Council of
the City of Palm Springs, California, in a meeting thereof held on the 21st day of
July, 1999.
PATRICIA A. SANDERS
Acting City Clerk
136