Adopt Resolution #25-155 Authorizing the City to enter into a Commitment to Purchase with NEOGOV for Cloud-based Human Resources Software 

This case was discussed with the City Council at the June 10th work session.  Staff provided an update to the City Council regarding the City’s Human Resource division’s business processes related to its human capital management; specifically its employee onboarding, data management and reporting, employee forms, and performance management.
It was stated that every HR process is a manual process driven by manually keyed and updated data using Excel spreadsheets and/or manual to-do checklists.  This process has increased potential for errors or omissions and is limited to HR staff access only.  With the desired NeoGov products, access can be extended directly to individual employees, supervisors, managers, etc. and is cloud-based for easy and secure access.   The attached PowerPoint provides information on each module's functionality.

Staff recommended updating the technology in human resources by expanding the use of NeoGov products to benefit the organization as a whole.  By consensus, the City Council was supportive of moving ahead with staff's recommendation; see the attached minutes.  After the work session, staff continued negotiations with NeoGov.  As mentioned during the work session, it was hoped to negotiate rate caps beyond the commitment period; however, that was not possible.  In lieu of rate caps, an additional reduction in cost to the first year of services was achieved, resulting in a reduction in cost by approximately $5000.  

Based on the City Council's direction, staff obtained a commitment to purchase the four modules that were discussed: Onboard, CoreHR, E-forms and Perform.   The commitment to purchase documentation is attached.  At the time of this writing, the City Attorney is reviewing the paperwork.  If there are any concerns raised, they will be addressed and noted with updates to the case. 

The funding for year one of this request is included within the Administrative Services' 2025 budget at $16,777.72. Funding beyond 2025 will be accounted for in future budgets as noted within the attached commitment letter.  Offsetting savings are difficult to measure, but would impact staff time, paper costs and copier wear and tear, improved reporting such EEO-4 reporting and beyond.  Other cost-saving benefits to accuracy and efficiency are likely extensive.

Staff recommends that the City Council authorize the City to enter into a commitment to purchase with NEOGOV for cloud-based human resources software.

 

Adopt resolution #25-155 to authorize the City to enter into a commitment to purchase with NEOGOV cloud-based human resources software, effective immediately, for an initial period of three years.