BACKGROUND
This ordinance authorizes the City Auditor to renew the existing contract with Ceridian HCM, Inc. and provide funding for the support, hosting, services, hardware, and maintenance of Dayforce; to authorize the expenditure of up to $1,324,800.00 from the Department of Technology operating fund; to authorize the expenditure of $70,000.00 from the Employee Benefits fund.
The original contract for implementation and a three year term after the go-live date, was authorized by Ordinance 0848-2019 and passed on April 29, 2019. The agreement includes licensing, hosting, maintenance, support, and professional services for the Dayforce system and time clocks manufactured by Ceridian for enterprise-wide benefits administration, payroll, personnel management, and employee self-service system. The City Auditor’s Office originally procured these services with Ceridian through the competitive bidding RFP process in Chapter 329 of the Columbus City Code. The original contract term ends September 18, 2023, three (3) years from production go-live date, as specified in the agreement between the City and Ceridian. A renewal is necessary to continue the subscription to ensure no service interruption in the City’s payroll process, personnel operations, and benefits administration.
The City Auditor has negotiated a three (3) year extended renewal term with Ceridian, with each year contingent upon funding being approved and appropriated annually by City Council. Year one of the renewal will contain no increase in the current fees. This will be the fourth year the City has locked in pricing without an increase since 2019. Years two and three will allow the lesser of five percent or the annual increase in the Annual Inflation Index in the 12-month period preceding the increase less one percent (1%). The amended agreement will also require ninety (90) days notice if the City decides to terminate the contract.
This contract also includes professional services related to managing configurations for the overall system and extra Benefits Administration related professional services. Additional services are being procured to support planned changes and updates to the City’s various benefits plans, open enrollment planning, and any changes necessary to facilitate exports or reporting. By bundling the hours with services related to this contract, the City can receive these services at a reduced rate.
FISCAL IMPACT
This ordinance will fund year one of the three year extended term for contract renewal, maintenance and support of time clocks at the Department of Public Utilities and Department of Technology from available and approved funding in the Department of Technology, Information Services Division, Information Services fund as follows:
|
Description |
Amount |
|
Ceridian Subscription and services |
1,308,300.00 |
|
Department of Public Utilities clocks maintenance and support |
15,900.00 |
|
Department of Technology clocks maintenance and support |
600.00 |
|
TOTAL Technology Operating Fund |
1,324,800.00 |
For Benefits related professional services, funding is available in the Employee Benefits fund in the amount of $70,000.
TITLE
To authorize the City Auditor to modify the existing contract with Ceridian HCM, Inc. for the renewal of the Dayforce software subscription, support, hardware, and services; to authorize the expenditure of $1,324,800.00 from the Department of Technology operating fund; to authorize the expenditure of $70,000.00 from the Employee Benefits fund. ($1,394,800.00)
BODY
WHEREAS, it is necessary to authorize the City Auditor (DoT) to modify and extend contract term with Ceridian HCM, Inc. as a three-year renewal for the purchase of annual Dayforce software subscription, maintenance, professional consulting, hardware, and support services, in the total amount of $1,394,600.00; and
WHEREAS, the City Auditor’s Office originally procured services Ceridian HCM, Inc. through chapter 329 of the Columbus City Code, pursuant to RFQ009521. The original contract was authorized by Ordinance 0848-2019, and the City has negotiated favorable pricing terms for no price increases in year one and price increases are capped for years two and three of the agreement;
WHEREAS, Dayforce software and touch clocks are a critical component of processing benefits, personnel time & attendance, and payroll for the employees of the City of Columbus. The software as a service provides the City with the capability to web-enable employee self-service, employee onboarding, as well as maintain benefits, manage personnel and execute payroll functions. Passage of this ordinance ensures continued use and maintains compliance with the subscription agreements; and
WHEREAS, professional consulting services are needed for continuing and changing City configurations, reports, and benefits administration management beyond standard support agreement services;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1: That the City Auditor be and is hereby authorized to modify the existing contract with Ceridian HCM, Inc. for the renewal of the Dayforce software subscription, maintenance, professional, and support services for three years, in the amount of $1,394,800.00 to fund year-one of the renewal term.
SECTION 2: That the expenditure of $1,308,300.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Division, Information Services Operating fund and the Department of Technology, Information Services Operating fund as follows (Please see attachment ORD 1919-2023 ACPO): Ceridian HCM, Inc. - Dept.: 47 | Div.: 47-02 | Obj Class: 03 | Main Account: 63945 | Fund: 5100 | Sub-fund: 510001 | Program: IT005 | Section 3: N/A | Section 4: N/A | Section 5: N/A | Amount: $1,308,300.00
SECTION 3: That the expenditure of $970.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Division, Information Services Operating fund and the Department of Technology, Information Services Operating fund (Direct Charge budget) as follows (Please see attachment ORD 1919-2023 ACPO): Ceridian HCM, Inc. - Dept.: 47 | Div.: 47-01 | Obj Class: 03 | Main Account: 63050 | Fund: 5100 | Sub-fund: 510001 | Program: CW001 | Section 3: 470104 | Section 4: IS02 Section 5: IT1308 | Amount: $970.00
SECTION 4: That the expenditure of $6,169.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Division, Information Services Operating fund and the Department of Technology, Information Services Operating fund (Direct Charge budget) as follows (Please see attachment ORD 1919-2023 ACPO): Ceridian HCM, Inc. - Dept.: 47 | Div.: 47-01 | Obj Class: 03 | Main Account: 63050 | Fund: 5100 | Sub-fund: 510001 | Program: CW001 | Section 3: 470104 | Section 4: IS02 | Section 5: IT1309 | Amount: $6,169.00
SECTION 5: That the expenditure of $6,917.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Division, Information Services Operating fund and the Department of Technology, Information Services Operating fund (Direct Charge budget) as follows (Please see attachment ORD 1919-2023 ACPO): Ceridian HCM, Inc. - Dept.: 47 | Div.: 47-01 | Obj Class: 03 | Main Account: 63050 | Fund: 5100 | Sub-fund: 510001 | Program: CW001 | Section 3: 470104 | Section 4: IS02 | Section 5: IT1310 | Amount: $6,917.00
SECTION 6: That the expenditure of $1,844.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Division, Information Services Operating fund and the Department of Technology, Information Services Operating fund (Direct Charge budget) as follows (Please see attachment ORD 1919-2023 ACPO): Ceridian HCM, Inc. - Dept.: 47 | Div.: 47-01 | Obj Class: 03 | Main Account: 63050 | Fund: 5100 | Sub-fund: 510001 | Program: CW001 | Section 3: 470104 | Section 4: IS02 | Section 5: IT1311 | Amount: $1,844.00
SECTION 7: That the expenditure of $600.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Division, Information Services Operating fund and the Department of Technology, Information Services Operating fund as follows (Please see attachment ORD 1919-2023 ACPO): Ceridian HCM, Inc. - Dept.: 47 | Div.: 47-02 | Obj Class: 03 | Main Account: 63050 | Fund: 5100 | Sub-fund: 510001 | Program: IT004 | Section 3: N/A | Section 4: N/A | Section 5: N/A | Amount: $600.00
SECTION 8: That the expenditure of $70,000.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Human Resources, Risk Management Division, Information Services Operating fund and the Employee Benefits fund as follows (Please see attachment ORD 1919-2023 ACPO): Ceridian HCM, Inc. - Dept.: 46 | Div.: 46-01 | Obj Class: 03 | Main Account: 63050 | Fund: 5502 | Sub-fund: 550201 | Program: RM002 | Section 3: N/A | Section 4: N/A | Section 5: N/A | Amount: $70,000.00|
SECTION 9: That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 10: That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 10: This ordinance shall take effect and be in force from and after the earliest period allowed by law.