Title
AUTHORIZATION FOR A CONTRACT AMENDMENT WITH CHERRYROAD FOR THE CITYWIDE HCM UPGRADE
Staff Contact: Tom Duensing, Director, Finance and Technology
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Purpose and Recommended Action
This is a request for City Council to approve Contract Amendment No. 1 (C-8670-1) with CherryRoad, Inc. for an operational upgrade and efficiency enhancements to the PeopleSoft Human Capital Management software for an additional $437,200, bringing the total contract amount to $1,205,160, and approve a General Fund contingency request in the amount of $387,410. Funding for the project will be allocated to multiple funds consistent with the original project funding allocation. Consistent with the City Charter, Council is also being requested to provide authorization to exceed appropriation in the PeopleSoft HRMS Updates project budget until the 4th quarter of the fiscal year, at which time the budget transfers from the General Fund and other funds can be processed.
Background
The city has been using PeopleSoft Human Capital Management (HCM) software to provide necessary operational support for managing staff and generating payroll. The city also pays for software maintenance which covers problem resolutions and software upgrades to address changes in employment regulations, and tax updates which comply with state and federal payroll tax rates.
Required software upgrades are common in order to remain on the most current version of business software applications. This upgrade is required in order to receive necessary tax updates that otherwise would no longer be available after December 2016. Payroll tax updates are required to properly calculate payroll taxes. In 2012, a request for proposal (RFP 13-06) was issued to seek assistance in upgrading the HCM system due to its complexity and a lack of sufficient internal resources to complete the project.
Analysis
In order to keep costs at a minimum, the main focus of the original agreement with CherryRoad was on u...
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