Consideration and Approval of Contract: Approve the First Amendment to the contract with immixTechnology, Inc. for the UKG Pro Timekeeping software and support.
 

1. Approve the First Amendment to the contract with immixTechnology, Inc. for UKG Pro Timekeeping software and support to increase the total contract amount not to exceed $300,000; and
2. Authorize the City Manager to execute all necessary documents.

The City currently administers payroll services for between 800 and 1000 full-time and part-time employees per pay period. Automating the time entry associated with payroll administration simplifies labor-intensive timesheet tracking, data entry and approval processes. An automated time entry system also aids labor law compliance. The City has utilized this software to support many of the City's divisions and sections with their timekeeping process.

In a contract dated 4/25/2025, based upon Quote Number: QUO-1505693-S2W2Q5 dated 1/29/2025, the City contracted to pay immixTechnology, Inc. $72,573.03 for the Period of Performance dated 3/20/2025-3/19/2026. The 4/25/2025 contract did not come before the City Council as it was below the threshold required under the City Charter.

Staff has a need to continue to use the software and support and received Quote Number: QUO-1552180-R8H6R5 dated 10/15/2025, through which the City would pay immixTechnology, Inc. an additional $72,748.73 for the Period of Performance dated 3/20/2026-3/19/2027. This Quote is the basis of the proposed First Amendment for the UKG Pro payroll time entry software and support. The total combined compensation equals $145,321.76, which requires City Council approval and is the reason the First Amendment is before the City Council.

Staff has requested approval of an expenditure of an amount not to exceed $300,000 in anticipation of a potential need for future software and support services from this vendor.

Project Name:  UKG Pro Timekeepting software and support
Cost: $300,000 over 4 years 
Account Number Budgeted:  001-02-034-0132-1-4343 
FY2025-26 Budgeted Amount: $81,177
Grant Funded: no
Funding Source: General Fund

A prior contract for UKG Pro timekeeping services was approved by Council on September 15, 2020.

1. Approve the First Amendment to continue the time entry software and support services; or
2. Decline to enter into this First Amendment and return to previously manual timesheet tracking process.

The City of Flagstaff has a workforce of approximately 800 to 1,000 employees per pay period. One of the key requirements in managing the workforce is to accurately account for employees' time on and off of the job. This information is used for several purposes:

1. Payroll -- to ensure each employee is paid a fair and accurate pay.
2. Time management -- supervisors have to make sure staffing levels are consistent with job requirements and ensure over-time hours are kept to a minimum.
3. Leave time management -- employee leave time used must be accurately deducted.
4. Compliance -- the City has to adhere to City policy and federal and state laws.
5. Cost accounting -- labor costs have to be accurately distributed to the appropriate accounting units.
6. Grant accounting -- labor costs related to grants have to be accurately recorded and reported.   

Throughout the entire period of this contract, the City has been working under a cooperative purchase agreement through the General Services Administration Federal Supply Service which was identified by Contract No. GS-35F-0265X as labeled on each of the quotes provided by immixTechnology, Inc.

Contract No. GS-35F-0265X defines the terms and conditions of the UKG Pro Timekeeping software and support and is attached to the First Amendment.

High Performing Governance:  Enhance the organization's fiscal stability and increase efficiency and effectiveness.

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