CITY OF ELK GROVE CITY COUNCIL STAFF REPORT

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1 CITY OF ELK GROVE CITY COUNCIL STAFF REPORT AGENDA ITEM NO. 8.9 AGENDA TITLE: Adopt resolution dispensing with the Formal Request for Proposal (RFP) Procedures pursuant to Elk Grove Municipal Code Section (B)(3) and authorizing the City Manager to execute a three-year contract, with a three year renewal, with NEOGOV, INC to provide online hiring, onboarding, and performance review software services to the City of Elk Grove in an amount not to exceed $159, MEETING DATE: June 27, 2018 PREPARED BY: DEPARTMENT HEAD: Nicole Guttridge, IT Administrator Brad Koehn, Finance and Administrative Services Director RECOMMENDED ACTION: Staff recommends that the City Council adopt a resolution dispensing with the competitive bid process pursuant to Elk Grove Municipal Code Section (B)(3), and authorizing the City Manager to execute a three-year contract, with a three year renewal, with NEOGOV, Inc. to provide online hiring, onboarding, and performance review software services to the City of Elk Grove in an amount not to exceed $159, BACKGROUND INFORMATION: Over the last several years, the City has partnered with NEOGOV to provide online job posting software services to the City. The City has used this software to post jobs, process applications, and schedule interviews. The City would also like to provide online onboarding for new hires and performance reviews for staff with NEOGOV software services. 1

2 Elk Grove City Council June 27, 2018 Page 2 of 3 The Onboarding module will allow the City to process hiring documents online for newly hired employees, and then transition the information into the City s current Human Resources (HR) and payroll systems. This will reduce the amount of duplicative information that an applicant has to type and allow the City to electronically process the information. This will provide time savings by allowing the applicant to complete new-hire paperwork prior to starting work, and allowing City staff to electronically process newhire information. The Perform module will allow the City to process annual employee reviews electronically with automatic notification to managers when reviews are due, and a workflow process for approvals. This will eliminate the current form that is used and create a more useful system for processing reviews. This will also allow the City to have a more transparent review process that will allow for employee input, and tools for creating an informative review for managers. Together, these three modules (posting/hiring, onboarding, and performance reviews) will create a powerful tool for HR to minimize paperwork, reduce staff time for processing hiring paperwork, and create a digital process for processing annual staff reviews. ANALYSIS: NEOGOV is an industry standard for hiring software. Their customer lists span the entire United States, and the City has successfully used them for many years. NEOGOV also has the capability to transfer data to current City enterprise software (OneSolution), which is important in saving time and data entry accuracy. The three services provided by NEOGOV will allow the City to take an applicant from application to hiring with integration into the City s HR and payroll systems in a quick and effortless process. The amount of time saved will be measurable and productive. This will allow HR staff to spend less time processing paperwork and more time assisting employees. The process will also be more flexible for new employees as they will have a seamless, time saving process to fill out their new hire paperwork online. Overall, these new software modules will allow for a streamlined process for all involved. Generally, the award of a contract such as this would be subject to a formal RFP process under the City s Code. (EGMC (B)(3)) However, the City Council may dispense with the RFP process when it finds that pursing the process is not in the City s best interest. Here, staff feels that 2

3 Elk Grove City Council June 27, 2018 Page 3 of 3 the time and effort needed to conduct a formal RFP would not produce a result more advantageous to the City. As a current customer of NEOGOV, these additional tools provided by the proposed contract will increase our efficiencies by transferring data from an applicant to our HR system. Since all of the modules communicate with each other, there is little manual data entry that will be required. Having one vendor provide all of these services creates a single point of contact should there be an issue that needs resolution from the software. The applicant that is selected will have a more seamless experience as he or she goes from applying for a job, to acceptance, and completing paperwork. The performance review module will automatically transfer new hires into the performance review system minimizing staff time. These are efficiencies that would not be realized if we used multiple vendors to accomplish these tasks. In addition, there are existing data transfers to move the applicant data into our HR system which reduces the cost of implementation. Therefore, pursuant to pursuant to Elk Grove Municipal Code Section (B)(3), staff recommends that the City Council dispense with a formal RFP for these services and award the contract directly to NEOGOV. The attached contract contains provisions limiting warranty and liability. The contract specifically notes that the services are provided on an as-is basis. The contract provides that NEOGOV warrants that it will provide services consistent with the industry standard, but contains a disclaimer of all other warranties, including a disclaimer of warranty and liability regarding the flow of information via the Internet over which NEOGOV has no control. Staff finds this limited warranty and liability acceptable when compared to the gains in efficiencies and streamlined and automated processes as noted above. FISCAL IMPACT: This contract will supersede the City s current NEOGOV contract and allow for the addition of the Onboarding and Perform modules. These costs have been programmed into the Information Technology budget for FY and will be included in subsequent budgets for the duration of the contract. ATTACHMENTS: 1. Resolution 2. Contract 3

4 ATTACHMENT 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK GROVE DISPENSING WITH THE COMPETITIVE PROPOSAL PROCESS PURSUANT TO ELK GROVE MUNICIPAL CODE SECTION (B)(3) AND AUTHORIZING THE CITY MANAGER TO EXECUTE A THREE-YEAR CONTRACT, WITH A THREE YEAR RENEWAL, WITH NEOGOV TO PROVIDE ONLINE HIRING, ONBOARDING, AND PERFORMANCE REVIEW SOFTWARE SERVICES TO THE CITY OF ELK GROVE IN AN AMOUNT NOT TO EXCEED $159, WHEREAS, NEOGOV is the industry leader in online application processing, onboarding, and employee processing; and WHEREAS, the City currently uses NEOGOV for job posting and application processing; and WHEREAS, for the reasons presented, seeking competitive proposals for the subject services is not in the best interest of the City, as they would not produce a result more advantageous to the City since the City already uses one of the modules offered; as a current customer of NEOGOV, the existing data transfer to the City s HR system and seamless interaction between module makes it advantageous to stay with a single vendor. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk Grove hereby dispenses with the competitive proposal process pursuant to Elk Grove Municipal Code section (B)(3), and authorizes the City Manager to execute a three-year contract with a three year renewal with NEOGOV, Inc., in substantially the form presented, to provide online hiring, onboarding, and performance review software services to the City of Elk Grove in an amount not to exceed $159, PASSED AND ADOPTED by the City Council of the City of Elk Grove this 27 th day of June STEVE LY, MAYOR of the CITY OF ELK GROVE ATTEST: APPROVED AS TO FORM: JASON LINDGREN, CITY CLERK JONATHAN P. HOBBS, CITY ATTORNEY 4

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