Item 4CRescind Award of Bid to ADP, Inc. for Payroll Outsourcing And Reject all bids for RFP0605A160SG600103 Initial Timeline June 30, 2006 Bids received from ADP, Inc. and Sage Payroll for
outsourcing payroll August 7, 2006 ADP responds via e-mail, “This email confirms that we agree with the letter’s content,” regarding the Letter of Agreement for RFP.06.05A.160.SG.600103
August 15, 2006 City Council awards bid to ADP, Inc. August 23, 2006 ADP requests signature on Master Accounts Agreement which is forwarded to TOASE for review Initial Timeline (cont.)
August 30, 2006 Review from legal counsel recommending the City not sign the ADP document in its current form…”Several provisions are not only unfavorable to the City, but may also
not be provisions the City may legally enter into.” October 3, 2006 through October 20, 2006 Staff and legal counsel worked to resolve the unacceptable provisions of the Master Accounts
Agreement that ADP insists are not negotiable…indemnity and warranty clauses that limit ADP’s financial responsibility to approximately $4,500 on any claim Staff Recommendation to Council
Rescind award to ADP, Inc. Reject all bids for RFP.06.05A.160.SG.600103 Questions * Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Values Item 4C Mr.
Mayor, Members of Council, Item 4D is presented to you for approval to rescind the award of bid to ADP,Inc. for payroll outsourcing and reject all bids for RFP0605A160SG600103. The
timeline associated with this bid began on June 30, 2006 when the city received 2 responses to our request for bid for payroll outsourcing services. ADP, Inc. sent an e-mail response
to our letter of agreement on August 7, 2006 that stated, ‘This email confirms that we agree with the letter’s content.’ Based on that statement, staff presented our recommendation
to Council which was approved on August 15, 2006, and ADP was awarded the bid. On August 23, 2006, ADP’s representatives requested the City sign their Master Accounts Agreement. Staff
forwarded the agreement to legal cousel for review. Taylor, Olsen, Adkins, et al contacted the Finance department on August 30th recommending the City not sign the ADP document in its
current form, citing “several provisions are not only unfavorable to the City, but may also not be provisions the City may legally enter into.’ From October 3rd through October 20th,
staff and legal counsel continued to work with ADP legal department to resolve the contract issues. The end result was that ADP will not agree to full damages caused by their action
or inaction as it relates to payroll outsourcing. The maximum amount of damages they offer is approximately $4,500. As a result, staff recommends City Council rescind the award to ADP,
Inc. and reject all bids for RFP0605A160SG600103 * Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Values