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Item 4G Item 4G M E M O R A N D U M July 30, 2019 TO: Shana Yelverton, City Manager FROM: Stacey Black, Director of Human Resources SUBJECT: Approve a professional services agreement with Kronos to upgrade the current Kronos employee timekeeping system including purchasing software, hardware, and maintenance in an amount not to exceed $86,369 Action Requested: Approve a professional services agreement with Kronos to upgrade the current employee timekeeping system including purchasing software, hardware, and maintenance in an amount not to exceed $86,369. Background Information: The City originally implemented Kronos in 2010 and has not upgraded the software or hardware since the original implementation. The current software version only supports a version of Microsoft SQL Server that will no longer be supported by Microsoft after December 31, 2019, thus requiring the City to make a change. This upgrade will allow the City to move to a Software as a Service (SaaS) model in which Kronos will host the timekeeping application in the cloud rather than the City buying it and installing it onsite. In addition, the upgrade will include purchasing 18 replacement biometric time clocks to be deployed across City facilities. The current time clocks are heavily used by staff and are no longer manufactured or supported by Kronos. Replacement parts are no longer available and new versions of the time clocks are not compatible with the software version the City is currently running. Upgrading the current system will provide the following benefits: • Security: The Kronos security program undergoes examinations from an independent auditor in accordance with the American Institute of Certified Public Accountants’ (AICPA's) SSAE18 (i.e., SOC 1) and the AICPA’s TSP Section 100a, Trust Services Principles, Criteria, and Illustrations for Security, Availability, Processing Integrity, Confidentiality, and Privacy (i.e., SOC 2 and SOC 3). • Backup Services: Kronos backs up customer data on a daily incremental and weekly full backup schedule. Database backups Shana Yelverton, City Manager Item 4G July 30, 2019 Page 2 are replicated via encrypted SSL sessions to an offsite Kronos managed hosted environment. • Disaster Recovery Services: The environment and all data are replicated to a secondary Kronos managed datacenter in the event of a disaster at the primary hosted facility, reducing the likelihood of lost data or production downtime. • Staff Efficiency: Moving to the SaaS hosted model will enable Southlake IT staff to focus on other valued added IT services. Application service packs, legislative updates (if applicable), patches, and technical upgrades will be administered and deployed by Kronos on a regular basis. • User Impact: The upgraded system will provide a more user- friendly look and feel, with easier to use administrative functions and reporting for employees and managers. • Hardware: The new timeclocks will be more modern with touchscreens and bilingual capability. The State of Texas and the City of Southlake purchasing requirements have been met by purchasing this upgrade through the U.S. Communities Omnia Partners cooperative purchasing arrangement under Contract #18221. Financial Considerations: The FY 2019 approved budget included $800,000 for the Intelligent Transportation System (“ITS”) in the Technology Infrastructure and Security Fund. The consultants are currently completing the study for the ITS project; however, the project will not be completed this fiscal year. Staff recommends reallocating $86,369 of that funding for this purchase. Strategic Link: Performance Management and Service Delivery: optimize use of technology. Citizen Input/ Board Review: Not applicable. Legal Review: The City Attorney’s Office has reviewed the agreement. Alternatives: Deny agreement with Kronos and seek alternative options. Supporting Documents: Kronos Professional Services Engagement Agreement Staff Recommendation: Approve item as proposed. 7/18/2019 Professional Services Engagement Overview Purpose and Overview of Engagement This Professional Services Engagement Overview outlines the scope of services to be provided by Kronos for the Setup Fees indicated on the applicable Order Form, to CITY OF SOUTHLAKE(“Customer”) related to the Core Modules, Value-add Modules, and/or Optional Services contained in the document. Our Professional Services engagements are designed to help our Customers successfully implement your Core Modules, as well as enable you to easily layer Value-add Modules and functionality over time based on your priorities, schedule, and resources. The Kronos® Workforce Ready® (WFR) Professional Services engagement described herein is fixed price based and is subject to the terms and conditions governing your Kronos Workforce Ready – Software as a Service (the “Agreement”). Unless otherwise defined herein, words and expressions defined in the Agreement shall have the same meaning in this Professional Services Engagement Overview Your Workforce Ready SaaS Solution CITY OF SOUTHLAKE and Kronos are deploying the following WFR modules with 1 location(s) and 0 collective bargaining agreements(s). Core Modules Employees Deployments Estimated Duration WORKFORCE READY TIME KEEPING 575 1 WORKFORCE READY ACCRUALS 575 1 90 Days CITY OF SOUTHLAKE and Kronos Collaboration A successful Professional Services Engagement will require close collaboration between CITY OF SOUTHLAKE and Kronos. The Kronos Professional Services team is equipped to help keep you on target for meeting project milestones and requirements, as well as to assist you in configuring and deploying the Kronos Workforce Ready solution that meets your organization’s specific requirements. Your organizations participation and commitment to the project goals and timeline are critical to help ensure success. Please see the Kronos Workforce Ready Professional Services Engagement Guidelines at https://www.kronos.com/kronos-workforce-ready-implementation-guidelines to review both parties' responsibilities The Estimated Duration stated above is an estimate based upon our experience with our customers and products. Depending upon the preparation and engagement of your organization, there may be opportunity to accelerate the completion of this engagement. However, the Estimated Duration may be exceeded based on the level of preparedness, bandwidth, and skill level of your available resources. Other examples that may extend the Estimated Duration include: separate deployments of the solution, having a unionized workforce, and policies that vary across employee groups. Core Functionality Deliverables Working in close collaboration, CITY OF SOUTHLAKE and Kronos will deploy the following core modules and functionality in 90 estimated days from project kick-off: WFR Core Kronos Delivered Value Time Keeping Module WFR Time Keeping deployment gets you started with the ability to accept punches and pay employees accurately through these core components: • Total Cost Centers • Profiles • Timesheet • Time Off Request • Pay Calculations • Pay Prep • Accruals • Security • Points • Tables • Rate • Holiday • Manager Levels • Employee Perspective Scorecards • Workflows • Time Off Requests • Timesheet Change Requests • Schedules • Daily Rules Page 1 of 3 • Work Schedule Profiles • Pay Periods • Counters • Time Off Categories • Reports • Standard TLM Pre-Configured (61) • Custom up to 5 • Timekeeping Admin Training Accruals Module WFR Accruals module adds comprehensive accrual administration to Workforce Ready Time Keeper by automatically enforcing your timeoff policies through: • Consistent enforcement of policy • Configurable calculation methods & grants • Time-Off routing & approval workflow(requires TLM) • Time-Off requests at data collection devices • Automatic updates to schedule & timecard (requires TLM) • Visibility to projected balances • Automatic balance reduction (requires TLM or PR) • View time-off calendars for groups • Mobile access • One-Time data load using customer-supplied data for current year in a standard Kronos-supplied format • Accrual balance interface with 3rd party payroll system • WFR accruals requires WFR Timekeeper Value-Add Functionality Deliverables Once your core functionality is deployed, Kronos will work in close collaboration with CITY OF SOUTHLAKE to deploy the following Value-Add modules and/or functionality over time in short, agile deployments aligned with your priorities, schedule, and resources: Value-Add Kronos Delivered Value Integration Hub WFR Integration Hub enables data to flow between WFR and 3rd party applications and/or vendors. If the 3rd party application and/or vendor does not accept the standard Workforce Ready formatting and/or methods for automated delivery, a formatted file will be delivered instead. The customer is responsible for providing import files to Kronos in the standard Workforce Ready format and utilizing the standard Workforce Ready delivery method.Kronos will deliver a standard bundle of up to 5 interfaces. Each direction (To/From) any 3rd party system and Kronos is considered a separate interface. Interfaces will be accomplished via standard file Exchange. Customer will work with Kronos and 3rd party vendors to facilitate design and testing. The Method of the file exchange will be determined by Kronos WFR Professional Services Delivery Team. Kronos will provide standard Import/Export files using Integration Hub. Customer will work with the 3rd parties and Kronos to provide the data in the Kronos format for imports.Kronos will create a report from standard Workforce ready fields in the 3rd party format to send to the 3rd party system. Non-standard and custom or bi/multi-directional integrations/interfaces are not included in this project. • Timekeeping Interface bundle using customer-supplied data in standard file formats • Demographic interface with 3rd Party HR • Cost Center Import from 3rd Party HR/Payroll System • Job import from 3rd party HR system • Work schedule import from unlimited 3rd party scheduler systems in Kronos file format • Pay data export to 3rd party payroll system • Accruals Interface bundle using customer-supplied data in standard file formats • Accrual balance interface with 3rd party payroll system • Demographic import from 3rd party system • Cost Center import from 3rd party system • Employee skills import from 3rd party system • Demographics import from 3rd party HR system Online Training and Support Tools The My Learning area within Workforce Ready provides immediate access to online, role-based education content and support tools that provide step- by-step training on solution features and functions to drive proficiency and user adoption. Your managers and employees can gain proficiency and boost productivity by taking full advantage of: •Three-minute simulations: Quick demonstrations of common tasks provide effective training or skills reinforcement •Job aids: Handy, printable reference sheets with step-by-step instructions for performing common tasks supplement and support employee training to drive high user adoption and productivity •Sandboxes with exercises: Available for Administrators, these tools let users practice performing tasks from an exercises document in a training database. Please see Workforce Ready Customer Training Options for more information on training roles and available content. Assumptions Kronos has used the following assumptions and dependencies in preparing this Professional Services Engagement Overview: • All services will be delivered remotely, unless otherwise stated. The project kick-off date will be determined based on complexity of the implementation and resource availability, and may start up to 30 days after a Workforce Ready Order Form is executed by the Customer. Page 2 of 3 • Prior to the start of the project, the Customer will confirm in writing the business and technical requirements of the project. • Kronos will communicate with Customer’s Project Manager, the appointed Point of Contact for Customer on this project. He/she will be responsible for all communications and project management among all Customer parties (staff, vendors, consultants) and for the escalation and resolution of any issues for Customer. Customer is responsible for all hardware, software, and services provided by other consultants or third party vendors that may also be involved with the project. • Kronos will not be responsible for troubleshooting the Customer’s environment such as their operating system, hardware resources, or database schema. • Kronos will not be responsible for troubleshooting applications or hardware not provided by Kronos. • Change Orders are subject to scope review and may impact the project timeline or cost. If additional work beyond the initial scope of this Professional Services Engagement Overview is required as a result of a Change Order, the Customer may be charged. Change Orders Requests for change to this Professional Services Engagement Overview or the project it covers must be submitted to your Kronos Sales Executive and Kronos Workforce Ready Consultant in writing. Any of the following items will be considered Out of Scope and require a Change Order: • Material changes in the Scope or effort •Material changes in the number or type of Deliverables to meet the defined scope of effort •Changes to the project resource requirements •Changes to scheduled dates after acceptance of the Project Plan •Kronos will not be responsible for troubleshooting applications or hardware not provided by Kronos. •Change Orders are subject to scope review and may impact the project timeline or cost. If additional work beyond the initial scope of this Professional Services Engagement Overview is required as a result of a Change Order, the Customer may be charged. Kronos will estimate the time and fixed cost needed to implement the change and the impact it may have on the delivery of project covered under this Professional Services Engagement Overview. Kronos will perform the requested work once the Change Order has been completed and signed by the Customer. Completion Criteria The project covered under this Professional Services Engagement Overview will be considered complete when any one of the following completion criteria is met. Once one of these is met, no further work will be completed. If additional work is required, a Change Order or new Professional Services Engagement Overview must be generated. Completion Criteria: •The Customer has approved in writing •The System has been put into use within a production environment for 14 calendar days •More than twelve (12) months has passed since the date of signature of the Workforce Ready Order Form The Customer may provide approval in writing via email or an alternative agreed upon method. Page 3 of 3 Quote#: Q-26578 Page 1/4 ORDER FORM Quote#: Q-26578 Order Type: Quote Expires: 9/27/2019 Date: 7/18/2019 Sales Executive: Ian Lesniewski __________________________________________________________________________________________________ Bill To Contact: Ship To Contact:Stacey Black Bill To: CITY OF SOUTHLAKE 1400 MAIN STREET, SUITE 260 SOUTHLAKE, TX 76092 USA Ship To: CITY OF SOUTHLAKE 1400 MAIN STREET, SUITE 260 SOUTHLAKE, TX 76092 USA Ship to Phone:(817) 748-8063 Contact:Stacey Black Email:sblack@ci.southlake.tx.us __________________________________________________________________________________________________ Currency: USD FOB: Shipping Point Customer PO Number: Ship Method: Solution ID: 6097629 Freight Term: Prepay & Add Initial Term:36 months Renewal Term:12 months Billing Start Date: 120 Days from Execution of Order Form Payment Term: Net 30 Days Data Center Location: __________________________________________________________________________________________________ Order Notes: This order entered into between the Customer and Kronos SaaShr, Inc. is subject to the terms and conditions of the Master Agreement Reference #18221 dated March 18th, 2019 between the Lead Agency (acting as "Owner") and Kronos SaaShr, Inc. (as the "Contractor") (referred to as the “US Communities Agreement #18221”). The parties agree that Customer is migrating from their existing Kronos perpetual software licenses (the “Existing Software”) to the Kronos Workforce Ready software as a service offering. Customer’s Software License Agreement, including Software Support services, and Cloud Hosting services, if applicable, for the Existing Software shall continue to apply for a period of ninety (90) days from execution of this Order Form, and shall terminate thereafter. Customer agrees and understands that they are giving up their right to use the Existing Applications upon termination of the existing Software License Agreement. The Workforce Ready agreement signed by Customer shall apply to the Workforce Ready Applications set forth on this Order Form. Workforce Ready Monthly Service Fees shall be invoiced at the Billing Frequency indicated on this Order Form, commencing on the Billing Start Date. As of the Billing Start Date, Kronos will credit Customer for any pre-paid but unused fees for Software Support and/or Cloud Hosting services (as applicable) for the Existing Software. Customer may apply credits against any amounts owed to Kronos by Customer until such credit is expended. Customer shall continue to pay the Software Support and/or Cloud Hosting services fees on the Existing Software until the Billing Start Date. The Professional Services Engagement Overview is attached to this Order Form as a summary for the implementation services to be provided by Kronos for the Workforce Ready Setup Fees set forth on this Order Form. Quote#: Q-26578 Page 2/4 SaaS Services Billing Frequency: Monthly in Arrears Product Name Quantity PEPM Monthly Price WORKFORCE READY TIME KEEPING 575 USD 3.48 USD 2,001.00 WORKFORCE READY ACCRUALS 575 USD 0.58 USD 333.50 WORKFORCE READY INTEGRATION HUB 1 USD 0.00 USD 0.00 Total USD 2,334.50 Equipment Purchase Billing Frequency: Invoiced Upon signature of the Order form Item Quantity Unit Price Total Price TOUCH ID PLUS OPTION FOR H3/H4 INTOUCH 18 USD 660.00 USD 11,880.00 KRONOS INTOUCH 9100 H4,STANDARD,KR B/C 18 USD 1,977.25 USD 35,590.50 Total Price USD 47,470.50 Support Billing Frequency: Invoiced Upon signature of the Order form Item Duration(Months)Total Price Depot Exchange Support Service 12 USD 7,290.00 Total Price USD 7,290.00 Accessories Billing Frequency: Invoiced Upon signature of the Order form Item Quantity Unit Price Total Price NORTH AMERICA POWER KIT FOR EXTERNAL OUTLET, INTOUCH STD 18 USD 0.00 USD 0.00 Total Price USD 0.00 One Time Setup Fees Billing Frequency: Fixed Fee 100% at signing Item Total Price One Time Setup Fees USD 3,593.75 Quote Summary Item Total Price Minimum Monthly SaaS Service & Equipment Rental Fee USD 2,334.50 Quote#: Q-26578 Page 3/4 Item Total Price Minimum Annual SaaS Service & Equipment Rental Fee USD 28,014.00 Total Price Total Equipment Purchase and Accessories Fee USD 47,470.50 Total Price Total Support Fee USD 7,290.00 Total Price Total One Time Fees USD 3,593.75 Quote#: Q-26578 Page 4/4 CITY OF SOUTHLAKE Kronos SaaShr, Inc. Signature:_____________________________ /CS1/ Signature:_____________________________ /KS1/ Name:_____________________________ /CN1/ Name:_____________________________ /KN1/ Title:_____________________________ /CT1/ Title:_____________________________ /KT1/ Effective Date:_____________________________ /CD1/ Effective Date:_____________________________ /KD1/ Invoice amount will reflect deposit received. All professional services are billed as delivered with a payment term of Net Upon Receipt. Unless otherwise indicated above, this order is subject to the attached terms and conditions which the customer acknowledges have been read. THIS ORDER IS SUBJECT TO APPLICABLE TAXES. THE ACTUAL TAX AMOUNT TO BE PAID BY CUSTOMER WILL BE SHOWN ON CUSTOMER'S INVOICE. Shipping and handling charges will be reflected on the final invoice. The Monthly Price on this Order Form 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 invoice. 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 provide a copy of your "Tax Exempt Certificate" with your signed quote.