Item 4CMEMORANDUM
November 2, 2006
To: Shana Yelverton, City Manager
From: Sharon Guess, Deputy Director of Finance - Administration
Subject: Rescind Award of bid to Automatic Data Processing, Inc. for payroll
outsourcing and reject all bids for RFP.06.05A.160.SG.600I03 related
to the outsourcing of payroll
Action Requested: City Council rescind August 15, 2006, award of bid to Automatic Data
Processing, Inc. for outsourcing of payroll.
Background
Information: Bids were solicited from five nationally recognized vendors, and on June
30, 2006, the City received two bids for the service ... Automatic Data
Processing, hie. and Sage Payroll.
On August 7, 2006, Mr. Chris White, Major Accounts District Manager,
sent an email response to Ms. Deborah Russell stating that ADP, Inc. did
agree with the contents of the Letter of Agreement outlined in the Request
for Proposal. Based upon this information, we moved forward with the
award recommendation to Council.
On August 23, 2006 Mr. White contacted Deputy Director of Finance, Ms.
Sharon Guess requesting the City sign their Master Accounts
Agreement. Ms. Guess forwarded the agreement to the City's legal
counsel.
Financial
Consideration: Funding for this project in fiscal year 2006 in the amount of $22,576 that
was previously approved by the City Council shall lapse.
Financial
Impact: Not applicable.
Citizen Input/
Board Review: Not applicable.
Legal Review: Mr. Tom Scollon with TOASE worked with ADP for over 2 months to
attain a mutually agreeable contract between ADP and the City with the
result being an impasse. ADP has refused to sign our agreement unless we
sign the Master Accounts Agreement to include a provision that overrides
the City's Letter of Agreement in case of conflict. Mr. Scollon has advised
staff not to enter the agreement with ADP based on this requirement.
Alternatives: Alternatives may include:
Shana Yelverton, City Manager
Octoberl7, 2006
Page 2
• Council rescinding prior award to ADP, Inc. and rejecting all bids
for RFP.06.05A.160.SG.600103
• Continue expending funds to negotiate a mutually agreeable
contract.
Supporting
Documents: Not applicable.
Staff
Recommendation: City Council rescind award of bid to Automatic Data Processing, Inc. and
reject all bids for RFP.06.05A.160.SG.600103 for annual payroll
outsourcing.