Loading...
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.