Title
Resolution to Approve Purchase Orders to Ultimate Software Group, Inc. for the Annual UltiPro System Software Maintenance and License Agreement for our Retiree Population through October 31, 2020 ($108,900.00)
Memorandum
Attached for your review and action is a resolution to approve purchase order for renewal of the annual licensing and maintenance agreement with Ultimate Software Group, Inc. for the City’s standard software used for, in this case, administration of Retiree Medical Insurance and ACA Reporting.
Budget/Fiscal Impact: This expenditure is budgeted and approved in the FY2019 Risk Fund budget. Future expenditures will be budgeted in the appropriate fiscal year through October 31, 2020.
Council approved the resolution for the implementation and first year subscription of this project in June of 2016. The original resolution number R-16-229. Council also approved the 2nd year subscription of this project in August of 2017. The resolution number is R-17-310.
The accompanying resolution authorizes the creation of purchase orders for the remaining payments to Ultimate Software Group, Inc. in the amount of $33,000.00/year for the licensed use of HR software through October 31, 2020, when the Agreement ends.
Staff
Prepared by: Jessica Hull, Employee Benefits Supervisor, Human Resources
Reviewed by: Robyn Wilkerson, Director of Human Resources & Labor Relations
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The City entered into an Agreement with Ultimate Software Group, Inc. (“Ultimate Software”) for Hosted Human Resources and Payroll System on or about November 6, 2006 (“Original Agreement”);
Whereas, The Affordable Care Act requires the City to report data in a specific format;
Whereas, These requirements caused the City to approve Amendment No. 3 to the Original Agreement, (Legistar #16-0781), which allowed the City to house Retiree data in the City’s system like other employees to better comply with federal reporting requirements (“Amendment No. 3”);
Whereas, The City has seen significant benefit from having Retiree data in one software program to ensure accuracy per IRS requirements;
Whereas, Ultimate Software has agreed to guarantee pricing (at a per employee rate) for the services provided under Amendment No. 3 for the remainder of the term of the Hosting Agreement through October 31, 2020, which is anticipated to cost $33,000.00 annually (“Estimated Annual Fee”);
Whereas, The Estimated Annual Fee for these services is budget in the Risk Fund FY19 budget;
Whereas, The Estimated Annual Fee for subsequent years, beginning with FY2020 through the remainder of the term of the Original Agreement, will be budgeted in the annual Risk Fund expenditure budget; and
Whereas, Ultimate complies with the requirements of the City Non-discrimination and Living Wage Ordinance;
RESOLVED, That City Council approve purchase orders with Ultimate Software Group, Inc. in the amount $33,000.00 annually to maintain retiree data in accordance with Amendment No. 3 through October 31, 2020 ($99,000.00);
RESOLVED, That the City Council approve a ten percent (10%) contingency to be expendable from the Risk Fund, subject to City Administrator approval;
RESOLVED, That the amounts authorized herein may be used without regard to fiscal year; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.