Item No. 5.
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:OFFICE OF THE CITY MANAGER
BY:JAMES MCQUEEN, DIRECTOR OF HUMAN RESOURCES
DATE:AUGUST 25, 2026
SUBJECT:
APPROVAL OF CONTRACT RENEWAL WITH UKG FOR UKG READY TIME, UKG
READY ACCRUALS MANAGER, UKG SCHEDULER FOR WORKFORCE MANAGEMENT
SOLUTIONS, INCLUDING TIMEKEEPING AND SCHEDULING MODULES
EXECUTIVE SUMMARY
The City Council will consider approving a contract renewal with UKG, a sole-source provider for our workforce management systems. The UKG Ready contract, which manages timekeeping for the entire city, will be renewed for one year, from September 1, 2026, to August 31, 2027. This extension is necessary to ensure continued operation of the City's payroll, timekeeping, and scheduling systems until the new Enterprise Resource Planning (ERP) system is in place.
RECOMMENDATION
That the City Council:
Authorize the City Manager to execute the Agreement with UKG for a one-year contract renewal for the UKG Ready, Accruals, and Scheduler system, for a term beginning on September 1, 2026, and ending on August 31, 2027, for a total amount not to exceed $64,113.
BACKGROUND
In August 2018, the City Council approved the implementation of Kronos (now UKG) workforce management solutions, modernizing the City’s payroll, timekeeping, and scheduling processes, improving organizational efficiency.
To ensure competitive pricing, the City leveraged an existing U.S. Communities Government Purchasing Alliance (now OMNIA Partners, Public Sector) contract, which the City is authorized to use as a member agency. Kronos was awarded the OMNIA contract through a competitive Request for Proposal (RFP #14‑JLR‑003) issued by Harford County Public Schools, enabling the City to piggyback on the agreement and receive nationally negotiated pricing.
In April 2025, the City Council approved an extension of the UKG agreement through August 31, 2025, followed by a one‑year agreement in September 2025 for UKG Ready, Accruals, and Scheduler through August 31, 2026. Staff recommended a one‑year term due to the removal of the 90‑day cancellation clause in the updated OMNIA contract, which would have locked the City into a three‑year commitment without flexibility during ERP implementation.
UKG (Kronos) Systems was subsequently awarded a new OMNIA contract through a competitive RFP (#24‑6833) issued by Cobb County Procurement Services, approved for the term July 14, 2025 through July 13, 2029. The City continues to benefit from piggyback purchasing under this agreement.
As the City progresses through the implementation of its new ERP system, UKG Workforce Ready remains essential for payroll, timekeeping, and scheduling. Staff is seeking approval for a one‑year renewal from September 1, 2026 through August 31, 2027, maintaining operational continuity while preserving flexibility until ERP deployment is complete.
ANALYSIS
The City’s current agreement with UKG is set to expire on August 31, 2026. To ensure uninterrupted support for payroll, timekeeping, scheduling, and other essential workforce management functions, renewal of the UKG Ready system is required. Staff recommends a one‑year renewal of UKG Ready, covering September 1, 2026 through August 31, 2027, while the City continues implementation of the new Enterprise Resource Planning (ERP) system.
The City is currently in the process of implementing a new ERP solution, which will consolidate payroll, timekeeping, and scheduling into one integrated platform. Because the ERP timeline remains dependent on configuration, testing, and phased rollout, the City must maintain operational stability by continuing existing UKG services during this transition. Beginning a competitive process for an interim workforce management vendor would be inefficient, costly, and potentially disruptive to City operations given the pending ERP implementation. For this period, UKG is therefore considered a sole‑source provider.
Staff recommends the City execute a one‑year renewal of UKG Ready due to the exclusion of the 90‑day cancellation clause in the updated OMNIA agreement. A multi‑year term would lock the City into the contract and reduce needed flexibility, particularly while the ERP deployment date is not yet confirmed. This one‑year renewal preserves the City’s ability to transition to the new ERP system at the appropriate time without contractual constraints.
CITY COUNCIL PRIORITIES
Fiscal Responsibility
Efficiency and Adaptability
FISCAL IMPACT
Approval of the recommended action will result in an expenditure of $64,113 in General Fund account numbers 10- 4-1355-0144 (Finance: $55,693) and 10-4-4305-0144 (Parks and Recreation: $8,420), as approved in the FY 2026-2027 Operating Budget.
Attachments
Attachment A: 1 Year Extension for UKG Ready Time, Accruals and Scheduler thru 8-31-2027
Quote#: Q-410304
RENEWAL ORDER FORM
Quote#: Q-410304 Date:16 Mar, 2026
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: 12 months
Billing Frequency: Monthly
Billing Type: Arrears
Order Notes:
This Order is subject to the Master Agreement No 24-6833 entered into between Cobb County Board of Commissioner ("Lead Agency") and UKG Kronos Systems, LLC ("UKG") effective as of July 14th, 2025 (the " Omnia Master Agreement No. 24-6833 ") and used by Customer as an Omnia Participating Public Agency.
Contract Summary
Contract Period Start Date: 9/1/2026 12:00:00 AM
Contract Period End Date: 8/31/2027 12:00:00 AM
Total Price: USD 64,112.99
The Total Price is the total billable amount (pre-tax) for the contract period listed above.
Annualized Contract Value: USD 64,150.20
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 12 865 USD 3,978.09 USD 47,737.08
Quote#: Q-410304
UKG READY ACCRUALS MANAGER 12 865 USD 663.02 USD 7,956.18 UKG READY SCHEDULER 12 365 USD 701.64 USD 8,419.73
Total Price USD 64,112.99