City Council
Report
City Council Meeting: December 17, 2024
Agenda Item: 5.V
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To: Mayor and City Council
From: Feroz Merchhiya, Chief Information Officer, Information Services Department Oscar Santiago, Director, Finance Department, Matthew Hallock, Fire Chief, Fire Department
Subject: Approval of First Modification to Agreement with UKG (Kronos, Inc.) for Hardware Maintenance Services
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines
2. Authorize the City Manager to negotiate and execute a first modification to agreement #11411 in the amount of $37,211 (including a $3,383 contingency) with UKG (Kronos Inc.) to provide hardware maintenance services for City timekeeping devices. This will result in a five-year amended agreement with a new total amount not to exceed $3,462,672, with future year funding contingent on Council budget approval.
Summary
The City’s timekeeping and scheduling systems, including Kronos Workforce Central and Kronos TeleStaff, play a critical role in City operations, ensuring accurate payroll processing and optimized scheduling of public safety staffing. The City is set to transition to the new UKG Workforce Management (WFM) platform in January 2025. To ensure this transition does not disrupt service, staff seeks additional contract authority under Contract #11411 to fund hardware maintenance support for the City’s timekeeping devices. This service will provide the necessary firmware support to maintain device functionality during and after the migration. This first modification will 2 of 4
increase the contract by $37,211, which includes a 10% contingency, for a new amount not to exceed of $3,462,672.
Discussion
The City has relied on Kronos Workforce Central since 1998, utilizing its timekeeping capabilities across departments and integrating it with the City’s financial and human resource systems for efficient payroll processing. Additionally, the Fire Department uses Kronos TeleStaff for automated scheduling, which is essential for maintaining 24/7 public safety staffing.
On June 13, 2023 (Attachment A), the City Council approved a consolidated five-year agreement with UKG (Kronos Inc.), combining multiple agreements into Contract #11411. This contract provides software licenses, support, and options for purchasing additional hardware and maintenance services to support the City’s migration from the Kronos Workforce Central system to the UKG Workforce Management (WFM) platform on Google Cloud. The migration is necessary to address security vulnerabilities exposed by a ransomware attack on Kronos in 2021 and to transition to a more secure and supported platform ahead of the Workforce Central system’s end-of-life in December 2025.
As the City transitions to the UKG WFM platform (also known as Kronos Dimensions), staff has identified the need for hardware maintenance services to support the City’s timekeeping devices. These services are critical to ensure firmware updates, device compatibility, and continued functionality throughout and beyond the migration. Adding this support will prevent disruptions and safeguard critical payroll and timekeeping functions during and after the migration. While these services were not included initially in the requested contract authority, they are essential to maintaining uninterrupted operations.
Environmental Review
The proposed modification to Contract #11411 with UKG (Kronos, Inc.) is exempt from CEQA under Section 15061(b)(3) of the CEQA Guidelines. The agreement is covered 3 of 4
by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment”. The agreement modification will provide hardware maintenance services to support the City’s electronic timekeeping and attendance record processing system which would not result in adverse physical impacts on the environment, and so therefore, is exempt from CEQA.
Past Council Actions
Meeting Date Description
June 13, 2023
(Attachment A)
Approval to Amend Agreement with Kronos, Inc. for Software-As-AService (SaaS) and Related Licenses Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund and the Resource Recovery and Recycling Fund to increase the amount of agreement with UKG (Kronos, Inc.) for hardware maintenance services for City time keeping devices.
Contract Modification Request
Agreement
#
Current
Authorized
Amount
FY 2024-25
Requested
Amount
Future
Year(s)
Amount
Dept Account
Number
Total
Revised
Contract
Amount
11411 $561,288 $6,791 $22,047 01300001.529230 $590,126
$136,727 $1,700 $5,519 01180001.529230 $143,946
$21,590 $272 $882 54500002.529080 $22,744
$2,705,856 Various $2,705,856
Total $3,425,461 $8,763 $28,448 $3,462,672
Future year funding is contingent on Council budget approval. 4 of 4
Prepared By: Christian Ho, Principal Business Process Technology Analyst Approved Forwarded to Council
Attachments:
A. Staff Report 06-13-2023 5D
B. Levine Act Disclosure Form 2.6.24_UKG Kronos
C. OAKS INITIATIVE FORM_UKG Kronos