REPORT IN BRIEF

Approval is requested for the award of a contract to High Line Corporation of Markham, Ontario, for the purchase and implementation of an upgrade to the existing payroll system for the Finance and Human Resources Departments.

BACKGROUND

The City's existing High Line payroll system has been in place for twelve years. The current version of the system is no longer supported by the vendor and is running on an HP3000 environment that will no longer be supported in the upcoming years. The requested upgrade will be able to accommodate the City's payroll and accounting needs and allow High Line not only to support the system, but to work with the City on enhancements to meet Sunnyvale-specific requirements.

DISCUSSION

Staff researched possible solutions for changing or upgrading the City’s existing payroll system. Two factors influenced this research. First, the software had to be able to accommodate governmental payroll requirements and the City’s complex cost accounting system and be compatible with the existing financial system. Second, the cost of the system had to be within the replacement dollars set aside for this project. Other systems available either could not accommodate the City’s cost accounting system or were too costly to consider at this time. Because the City has a maintenance contract with the vendor, the cost of upgrading to the latest version is minimal. Major costs for this upgrade will be for implementation services from the vendor.

 FISCAL IMPACT

Project costs include:

Upgrade of current software Implementation Custom Programming Contingency Total Not-to-exceed Amount	$ 31,000 $129,250 $ 18, 000 $178,250
Funds are available in the Information Technology Replacement Fund No. 021101. A separate purchase order will be issued for ongoing maintenance costs of $16,470 per year. Any additional Oracle licenses will also be obtained through a separate purchase order.

RECOMMENDATION

It is recommended that Council award a contract to the High Line Corporation in an amount not to exceed $178,250 and in substantially the same form as the attached draft for the upgrade of the existing payroll system.

Prepared by:

Elaine Wesley
Purchasing Officer

Reviewed by:

Nasi Raissian
Finance Manager, Accounting

Reviewed by:

Mary Bradley
Director, Finance

Reviewed by:

Shawn Hernandez
Director, Information Technology

Reviewed by:

Mark Gregersen
Director, Human Resources

Approved by:

Robert S. LaSala
City Manager

Attachment

1. Consultation Service Agreement between the City of Sunnyvale and High Line Corporation for payroll system application upgrade and implementation services

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