Agenda Item #14.14
For Council Meeting of: January 9, 2024
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: DOMINIQUE BLANQUIE, HUMAN RESOURCES DIRECTOR
HUMAN RESOURCES DEPARTMENT
SUBJECT: FOURTH AMENDMENT TO SERVICE AGREEMENT NUMBER F001539 FOR GOVERNMENTJOBS.COM, INC. (DBA “NEOGOV”) AGENDA ACTION: RESOLUTION
RECOMMENDATION
It is recommended by the Human Resources and Information Technology Departments that the Council, by resolution: 1) ratify the Third Amendment to Service Agreement F001539 previously approved by Council to authorize the signing of the amendment by the Human Resources Director; 2) approve a Fourth Amendment to Service Agreement F001539 with GOVERNMENTJOBS.COM, INC. (dba “NEOGOV”) in the amount of $714,102.06 for a total contract amount of $949,068.33; and 3) authorize the Human Resources Director to execute the Fourth Amendment to Service Agreement F001539.
EXECUTIVE SUMMARY
NEOGOV has provided the City’s online platform for managing recruitments, screening applicants and performing applicant background checks since 2010. In 2020, Council approved additional modules for online applicant testing, onboarding, employee evaluation, and training and development. NEOGOV continues to be a critical system within the City. This resolution would add a necessary Position Import and approve the extension of the contract through December 30, 2026.
BACKGROUND
NEOGOV is the leading public sector workforce platform provider that serves over 13,000 organizations. NEOGOV has provided online recruitment and applicant tracking services for the City since 2010 through its Insight Module. Since 2020, the City has contracted with NEOGOV for several additional integrated software integrations and modules that support the entire employee lifecycle. This includes the online testing integration, background check integration, Onboard module designed to facilitate the onboarding process for new hires, the Learn module designed to facilitate and track in-person and online training and host records in one central place, and the Perform module designed to allow configurable performance evaluations.
PRIOR CITY COUNCIL REVIEW
On January 28, 2020, by Resolution RES-2020-007, Council approved the Third Amendment to Service Agreement Number F001539. The Resolution did not authorize the Amendment to be executed by the Human Resources Director, and ratification of that action is being sought along with approval of the Fourth Amendment.
ANALYSIS
The current service agreement with NEOGOV was entered into on August 27, 2017 and included a one year’s subscription to the Insight applicant tracking module. The first amendment on September 10, 2018 added a fee to integrate the system with an allied Background Checking platform. The second amendment on September 10, 2018 extended the agreement an additional three years. The third amendment on January 28, 2020 approved two years of subscription fees for the new modules and one year for the Single Sign-On integration.
Activity
Date
Amount
Authorization
Original Agreement
August 27, 2017
$15,498
City Manager
Amendment #1
May 29, 2018
$365.75
City Manager
Amendment #2
September 10, 2018
$55,800.32
City Manager
Amendment #3
January 28, 2020
$163,302.20
City Council
Amendment #4
Pending
$714,102.06
City Council
The original contract term for Insight was August 28, 2017 to August 27, 2018; and extended to August 27, 2021 by Amendment Two. Amendment Three approved the additional modules with the term of December 1, 2019 to December 30, 2021, and the Single Sign-On term of one year which began March 21, 2021 when it was signed and approved to be implemented by the Human Resources Director. The proposed Amendment Four brings all the subscriptions to the same annual term and extends the contract for all to December 30, 2026.
The negotiation with Neogov regarding their evolving terms and conditions language in order to extend the complex contract took several months, then was further complicated and delayed by employee turnover both at the City and Neogov.
In addition to the extension of time to the existing modules, Amendment Four adds a Position Import integration that the City did not realize was necessary to enable full functionality of the system. This is an integration that provides ongoing position data transfer from the City’s Position Control system in OneSolution to Neogov to eliminate manual entry and provide additional functionality and efficiencies. There is a one-time setup cost of $3,150, and an annual integration fee starting with $3,308 December 31, 2023.
With approval of the fourth amendment, the cumulative compensation payable under the agreement will be $949,068.33.
FISCAL IMPACT
With this contract amendment #4, the ongoing expenditure for software subscription licenses and support of the Neogov system will continue to be paid annually via the IT Cost Allocation Plan and be extended to December 30, 2026. The prior and current annual amounts are included in the current FY2023-2024 adopted IT Department budget (including carryovers from prior years), and as a regular expenditure, funds to pay the future years’ subscription and support fees will be included in subsequent fiscal year IT budget proposals, as is currently done for Neogov and other enterprise software.
ENVIRONMENTAL IMPACT
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guidelines Section 15378.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not Applicable.
NOTIFICATION
Not applicable.
ATTACHMENTS
Resolution
Exhibit A – Fourth Amendment to Agreement F001539
PRESENTER
Dominique Blanquie, Human Resources Director
FOURTH AMENDMENT TO SERVICE AGREEMENT F001539 WITH NEOGOV