TITLE
Recommendation to request City Manager to direct appropriate staff to provide the information necessary to conduct a "total cost of ownership study" and to report back to the City Council the results of such study.
DISCUSSION
The City of Long Beach currently does not have an automated time and attendance system which tracks when employees are working or absent and utilizing banked leave. The current "system" is paper driven and requires numerous staff to manually input the time sheets every week. Also, time sheets in many departments do not track lunches and break times.
This lack of an automated system is problematic for any organization which employs in excess of 4,500 staff.
When the City put out a Request for Proposals last year, many vendors of systems responded, including ADP Government Services. City Management decided not to select a vendor because it was not quite set on what type it needed nor had decided whether or not it needed more than just an automated time and attendance system.
Subsequently, representatives from ADP Government Services contacted City Management and then Councilwoman Gerrie Schipske and indicated that it would benefit the City to have an analysis done on what it currently costs the City to process time and attendance, payroll and leave administration. ADP Government Services offered the City a completely free "total cost of ownership study" that would be conducted by 3rd party Sourcing Analytics and would provide the City an analysis of these costs. This TCO study has been done in several cities and provides organizations with unbiased results.
The TCO study will provide the following benefits:
1. Identify the current cost of administering Payroll, HR, Benefits and Time and Attendance.
2. Identify potential areas where dollars are being lost and opportunities for savings.
3. Benchmark our City against other public sector organizations, against similarly sized organizations (both public and private), and against organizations that use systems similar to our legacy systems.
4. Identify areas that should be called out as needs in a subsequent RFP.
Councilwoman Schipske contacted Councilman Gary Delong who heads the Budget Oversight Committee and the two met with ADP Government Services and City Management.
Currently, City Management cannot provide the costs per employee, or total cost, for these processes. The results of a TCO study would enable the City to know the true costs of its current time and attendance, payroll and leave administration processes, as well as identify potential savings.
This information would be very helpful as City Management and the City Council enter the FY 2014 budget process.
FISCAL IMPACT
Staff time to respond to requests for current system operations for analysis.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
GERRIE SCHIPSKE
COUNCILWOMAN, FIFTH DISTRICT
GARY DeLONG
COUNCILMEMBER, THIRD DISTRICT