To recommend the awarding of RFP for a Hosted Payroll Service for the Town.

Transcription

1 Agenda Item 1 7 COMMITTEE OF THE WHOLE MEETING Corporate & Financial Services Financial Services Division SUBJECT: Hosted Payroll Solution PURPOSE: To recommend the awarding of RFP for a Hosted Payroll Service for the Town. RECOMMENDATION(S): (a) (b) (c) That the contract for the provision of Hosted Payroll Service be awarded to ADP Canada pursuant to RFP for the initial term of five years at the cost of $1,310, (exclusive of HST); That the Mayor and the Clerk be authorized to execute the contract (for the initial term of the contract); and That the Commissioner of Corporate and Financial Services be authorized to execute any and all necessary documentation to effect the agreement in accordance with the Financial Control By-law. Contact: David Dexter, Director of Financial Services/Treasurer, Ext East Beaver Creek Road, Richmond Hirl, ON L4B 3P4 T RichrnondHill.ca TANA if,v5gw cj. A 4

2 Page 2 Submitted by: ean A. Miller Commissioner, Corporate & Financial Services Approved by: M: Joan Anderton Chief Administrative Officer BACKGROUND: The Town's current Payroll module is a sub-system of the Cayenta Financial System and was initially implemented in the late 1980's. Over the years there have been a number of required upgrades to vendor supported versions of this module. The current Payroll module provides the following significant business challenges: 1. cumbersome paper based timesheet and approval process; 2. duplicate data entry processes between the Payroll module and the Town's Info HR system (these systems do not interface); 3. manual business process to track time and attendance; 4. no ad-hoc inquiry and reporting functionalities which requires staff to export data and create reports in excel software; and 5. no self-service functionality which puts the onus fully on payroll staff to coordinate all information for all Town staff (e.g. vacation & lieu bank information, pay statements, year-end forms) 512

3 SRCFS Page 3 It is important to recognize that the Town's Payroll staff have worked with this system for many years and through dedicated efforts have ensured all Town staff were paid every two weeks accurately. Since late 2013, the detailed preparation of an RFP for Hosted Payroll solution was engineered by a contracted Payroll Specialist. The RFP preparation provided for a full assessment of functional and business process requirements to meet all client division and payroll section needs. The procurement process closed in February 2014 with only two respondents. Of the two, one was disqualified due to not meeting some of the mandatory submission requirements. ADP Canada was the only respondent remaining and was evaluated based on the following criteria: 1. Functional Qualifications & Experience payroll processing time and attendance self-service - payroll remittance - interfaces - security & privacy 2. Software demonstration & Interview 3. Reference checks 4. Pricing (licensing, services & maintenance support) The results of the evaluation of the ADP "Workforce Now" payroll and time attendance product were positive. This hosted solution will provide much efficiency such as: (a) The elimination of manual forms, duplicate input, manual approvals, and manual distributions; (b) Employees will have real-time access to view and print pay statements and yearend forms (c) Both employees and manager will have real-time access to schedules, vacation banks, historical time data information; (d) A time and attendance process that supports Town's approval hierarchy; (e) Eliminated need for InfoHR (i.e. vacation, sick and stat banks) as the Workforce Now solution will maintain these records; (f) Able to exchange data information between OMERS and other benefit providers through import & export functionality; and (g) Timely self-service ad-hoc reports for management consumption (e.g. absentee trend reports, bank balance reports)

4 Page 4 Estimated Project Steps & Time Lines June and July Payroll process review with ADP - Design of Workforce Now to fit Richmond Hill parameters August and September Detailed testing of regular payroll cycles, month end, and year end requirements - Commence production cut-over October and November Training program (employees & managers) - Post live review The "Go-Live" for this hosted solution would ideally be by November Throughout this project timeline there will be Town-wide Communications of the coming changes. FINANCIAL/STAFFING/OTHER IMPLICATIONS: The price submission for ADP Workforce Now solution is as follows: One-Time Implementation Costs: $94, (excl HST) 5 Years Annual Processing & Licensing costs: $1,216, (excl HST) Total $1,310,265, Based on the REP submission, the annual operating cost for the Workforce Now solution will equate to about $243,253 (excl. HST) based on the volume of transactions anticipated per year. Since the cost structure is based on current full-time and part-time staff levels as well as the volume of transactions anticipated per year, this annual cost may fluctuate. The annual transaction fee rates are fixed at the same level for the full five year term. Also it should be recognized that the estimated annual fee of $243,253 includes costs that would eventually be eliminated as staff become accustomed to the self-serve functions of the new system (eg. pay stub mailing fees), eventually bringing the annual costs closer to $200,000 per year. The implementation of this solution will save the organization a significant amount of staff time as there will now be an automated process flow and no redundant data entry. It is estimated that Town-wide there is up to 8,000 staff hours per year allocated towards the current inefficient payroll process. This staff time may be redirected to other priority duties under the new hosted solution. There will also be immediate savings in bank charges, current vendor support, paper and envelope costs, outside storage and space needs as most of the paper-based manual payroll elements will eventually be eliminated. It is estimated that these items will result in about $45,000 in annual savings.

5 Page 5 RELATIONSHIP TO THE STRATEGIC PLAN: The award of a Hosted Payroll Solution contract demonstrates responsible municipal management in which the following objectives are being met: a) Stronger connections in Richmond Hill to improve access to local information and services; and b) Wise management of resources in Richmond Hill to serve as a role model for municipal management. CONCLUSION: The Workforce Now Hosted Payroll solution by ADP Canada will provide necessary efficiencies for the Town's payroll processes. This report recommends the retention of these services for the next five years

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