Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: JAMES MCQUEEN, DIRECTOR OF HUMAN RESOURCES
D ATE: APRIL 8, 2025
SUBJECT: EXTENSION OF AGREEMENT FOR UKG READY TIME, UKG READY
ACCRUALS MANAGER, UKG SCHEDULER AND UKG TELESTAFF
SOFTWARE SOLUTION FOR WORKFORCE MANAGEMENT SOLUTIONS,
INCLUDING TIMEKEEPING AND SCHEDULING MODULES
EXECUTIVE SUMMARY
The City Council will consider the approval of a seven-month extension of the existing agreement with UKG (formerly Kronos) for workforce management solutions. The extension is necessary to ensure continued operation of the City's payroll, timekeeping, and scheduling systems until September 2025.
RECOMMENDATION
That the City Council:
Authorize the City Manager to approve a seven-month extension with UKG for UKG Ready for a term beginning on March 18, 2025 through September 17, 2025, and UKG Telestaff for a term beginning April 1, 2025 through August 31, 2025or a total amount not to exceed $43,690.
BACKGROUND
In August 2018, the City Council approved the implementation of Kronos (now UKG) workforce management solutions. This decision followed a comprehensive evaluation by the Downey Technology and Innovation Team, which identified the modernization of the City’s payroll, timekeeping, and scheduling processes as a key area for improving organizational efficiency. The team determined that Kronos Workforce Ready solutions best met the City's needs for both scheduling and timekeeping platforms.
Pursuant to the City’s Purchasing Procedures, the City piggybacked off an existing approved U.S. Communities Government Purchasing Alliance (dba OMNIA Partners, Public Sector) contract with Kronos to secure competitive pricing. This original OMNIA agreement, effective March 18, 2015, had options for renewal and is set to expire on September 17, 2025. As a member of the U.S. Communities Government Purchasing Alliance, the City of Downey can leverage national purchasing power arrangements and
APPROVED BY
CITY MANAGER
EXTENSION OF AGREEMENT FOR UKG READY TIME, UKG READY ACCRUALS MANAGER, UKG
SCHEDULER AND UKG TELESTAFF SOFTWARE SOLUTION FOR WORKFORCE MANAGEMENT
SOLUTIONS, INCLUDING TIMEKEEPING AND SCHEDULING MODULES APRIL 8, 2025
PAGE 2
streamlines the procurement process. The current annual amount for UKG Ready and UKG Telestaff is $69,095 to the City.
ANALYSIS
The City’s current agreement with UKG expired at the end of March 2025. To ensure continuity of essential payroll, timekeeping, and scheduling operations, a seven-month extension at an amount of $43,689.05 is required. This extension will align the City's agreement with the expiration date of the extended OMNIA Partners contract with UKG in September 2025. This alignment will allow the City to leverage the pricing benefits of a new OMNIA agreement with UKG which will commence in September of 2025.
The City is currently in the process of identifying a new Enterprise Resource Planning (ERP) system. It is anticipated that this new ERP system will be implemented by 2028 and include integrated payroll, timekeeping, and scheduling capabilities. To bridge the gap between the expiration of the new OMNIA agreement in September 2025 and the anticipated implementation of the new ERP system in 2028, staff will return to the City Council around August 2025 to request a further extension of the UKG contract under the new OMINA Partners contract period.
Given the specialized nature of the City's workforce management needs and the significant effort involved in researching, selecting, and implementing a new vendor, UKG is considered a sole-source provider for this interim period. Initiating a new competitive bidding process at this time would be inefficient and potentially disruptive, especially considering the upcoming ERP implementation.
CITY COUNCIL PRIORITIES
Fiscal Responsibility
Efficiency & Adaptability
FISCAL IMPACT
Approval of the recommended action will result in an expenditure of $43,689.05 through September 2025 from multiple departmental contractual services accounts in Finance, Police, Fire and Parks and Recreation.
ATTACHMENTS
Attachment A: UKG Ready Renewal Order Form
Attachment B: UKG Telestaff Renewal Order Form
Quote#: Q-319717
RENEWAL ORDER FORM
Quote#: Q-319717 Date:18 Feb, 2025
Customer Legal Name:
CITY OF DOWNEY
Customer Legal Address:
11111 BROOKSHIRE AVE, DOWNEY, CA 90241-3817 USA
Bill To: CITY OF DOWNEY
11111 BROOKSHIRE AVE
DOWNEY, CA 90241-3817 USA
Ship To: CITY OF DOWNEY
11111 BROOKSHIRE AVE
DOWNEY, CA 90241-3817 USA
Bill To Contact:
Payment Terms: Net 30 Days Currency:USD
Customer PO Number: Solution ID: 6152345
Renewal Term: 5 months
Billing Frequency: Monthly
Billing Type: Arrears
Order Notes:
This order entered into between the Customer and Kronos SaaShr, Inc., a UKG company, 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"), as amended (collectively referred to as the “US Communities Agreement #18221”).
Contract Summary
Contract Period Start Date: 4/1/2025 12:00:00 AM
Contract Period End Date: 8/31/2025 12:00:00 AM
Total Price: USD 24,698.36
The Total Price is the total billable amount (pre-tax) for the contract period listed above.
Annualized Contract Value: USD 59,281.20
The Annualized Contract Value is the value of the contract if all services are priced for 365 days. The Annualized Contract Value does not include estimated tax. Please note that this quote may include services priced for prorated periods.
SaaS Application
Product Name Duration Quantity Monthly Total Total Price UKG READY TIME 5 865 USD 3,677.97 USD 18,389.84
UKG READY ACCRUALS MANAGER 5 865 USD 612.99 USD 3,064.97 UKG READY SCHEDULER 5 365 USD 648.71 USD 3,243.55
Total Price USD 24,698.36
ATTACHMENT A
Quote#: Q-319717
CITY OF DOWNEY Kronos SaaShr, Inc.
Signature: /CS1/______________________________Signature: /KS1/_____________________________ Name:/CN1/______________________________Name:/KN1/_____________________________ Title:/CT1/______________________________Title:/KT1/_____________________________ Date:/CD1/______________________________Date:/KD1/______________________________ The monthly price on this Order 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 Order. 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 email a copy of your “Tax Exempt Certificate” to [email protected] along with the quote number otherwise this order is subject to applicable taxes. The actual tax amount to be paid by Customer will be shown on Customer’s invoice.
Ul<G
Quote#: Q-301448
Customer Legal Name:
CITY OF DOWNEY
Customer Legal Address:
11111 BROOKSHIRE AVE, DOWNEY, CA 90241-3817 USA
Bill To: CITY OF DOWNEY
11111 BROOKSHIRE AVE
DOWNEY, CA 90241-3817 USA
Bill To Contact:
Payment Terms: Net 30 Days
Customer PO Number:
Renewal Term: 12 months
Billing Frequency: Annual
Billing Type: Advance
Order Notes:
RENEWAL ORDER FORM
Date:21 Feb, 2025
Ship To: CITY OF DOWNEY
11111 BROOKSHIRE AVE
DOWNEY, CA 90241-3817 USA
Currency:USD
Solution ID: 6152345
Quote#: Q-301448
This order entered into between the Customer and UKG Kronos Systems LLC (formerly known as Kronos Incorporated) is subject to the terms and conditions of the Master Agreement Reference #18220 dated March 18th, 2019, between the Lead Agency (acting as "Owner") and Kronos Incorporated (as the "Contractor"), as amended (collectively referred to as the "US Communities Agreement #18220"), as further amended by the terms and conditions of the "Agreement Between Palm Beach County Sheriff's Office and UKG Kronos Systems LLC (formerly known as Kronos Incorporated) to Purchase Goods and Services in Accordance with the U.S. Communities Contract #18220" dated July 24, 2020.
Contract Summary
Contract Period Start Date: 3/18/2025 12:00:00 AM
Contract Period End Date: 9/17/2025 12:00:00 AM
Total Price: USD 18,990.69
The Total Price is the total billable amount (pre-tax) for the contract period listed above.
Annualized Contract Value: USD 37,976.40
The Annualized Contract Value is the value of the contract if all services are priced for 365 days. The Annualized Contract Value does not include estimated tax. Please note that this quote may include services priced for prorated periods.
Saas Application
Product Name Duration Quantity Monthly Total Total Price UKG UKG Kronos Systems LLC 900 Chelmsford Street Lowell, MA 01851
ATTACHMENT B
Total Price USD 18,990.69
UKG Kronos Systems LLC 900 Chelmsford Street Lowell, MA 01851
CITY OF DOWNEY
Signature:
Name:
Title:
Date:
UKG Kronos Systems LLC
Signature:
Name:
Title:
Date:
Quote#: Q-301448
The monthly price on this Order 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 Order. 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 email a copy of your 'Tax Exempt Certificate" to [email protected] along with the quote number otherwise this order is subject to applicable taxes. The actual tax amount to be paid by Customer will be shown on Customer's invoice.
UKG Kronos Systems LLC 900 Chelmsford Street Lowell, MA 01851