Agenda Cover Memorandum
Meeting Date:
August 20, 2012
Item Title:
Approve selection of ADP for Payroll/HR/Time & Attendance system and
services for FY14
Action Requested:
Approval
For discussion
Feedback requested
For your information
Staff Contact:
Allison Stutts
Phone Number:
847-318-5216
Email Address:
astutts@parkridge.us
Background:
Finance initiated a study in April 2011 requiring supervisors and support staff to track time spent over a
two week period on reviewing and approving payroll. The total hours reported across all Departments
was 98 hours and we did not have 100% participation. Since payroll is a bi-weekly process, the
estimated total hours spent annually by supervisors and support staff is 2,548. This does not include the
full time Payroll Technician’s hours within the Finance Department.
The City has not made significant changes to the current system since its implementation 15+ years ago.
The system has surpassed its useful life and become near obsolete. Ceridian, the City’s current
HR/Payroll/Time&Attendance service provider, recommended in August 2011 that the City migrate to their
integrated web based HR/Payroll/Time & Attendance platform.
The City opted to prepare an RFP to determine what other service providers were available and compare
the services of others to Ceridian. We received two responses to our request for proposal; from ADP and
Ceridian. Finance formed a team representing staff from each City department to view the software
demos and provide an evaluation of the software and services offered by each provider. The evaluation
from staff was unanimous; ADP was the provider recommended.
The City’s payroll budget for regular salaries and overtime is $18.6M which represents 29% of the City’s
total budget for FY13. We should have a Payroll / HR / Time & Attendance system that is efficient,
accurate and flexible. The system should be considered one of the tools supplied to supervisors and
support staff that provide them with the ability to manage staff and hold staff accountable.
ADP submitted a pricing proposal for Payroll, Human Resource and Time & Attendance. The pricing
includes one time implementation fees for each system and fees for payroll, time & attendance and
Human Resources based on a cost per employee per pay period or per month. The proposal also
includes the rental of two time clocks that will be located at the Public Works Service Center and the
Police Department. ADP’s pricing proposal is based on a 3 year period. ADP extended a pricing
promotion to the City for 4 months free per year. The complete pricing proposal is provided as a separate
attachment.
Rev 04/18/12
Agenda Cover Memorandum
A summary of the costs associated with the ADP proposal and a comparison to our current costs with
Ceridian is provided below:
Annual Cost with ADP $103,255.67
$75,055.67
$75,055.67
Average Annual Cost since 2004 with Ceridian
$42,240.00
$42,240.00
$42,240.00
Annual Increase
$61,015.67
$32,815.67
$32,815.67
The total cost over 3 years for the system and services with ADP is $253,367. In comparison, the
Ceridian proposal included a total cost over 3 years of $241,296 (attached). Although the ADP system
has a total cost that is 5% higher than Ceridian, ADP offers free training through the life of the partnership
with the City. Additionally, City staff considered Ceridian’s history with the City when evaluating both
systems. Finance understands that the ADP proposal represents an increase of nearly $130,000 over a
3 year period in comparison to the historical costs with Ceridian. A description of the issues we have with
the current system and the benefits / upgrades we will receive with the new system is provided. We
believe the benefits of the new system will far outweigh the increased costs.
Current HR/Time & Attendance/Payroll System
 The current timekeeping process is inconsistent across all City Departments.
 The time and attendance system is pre-populated with employee schedules. Changes to actual
hours worked requires manual intervention by employees or supervisors. This increases the risk
for payroll errors.
 Approval and sign off of timesheets is not consistent across all City Departments.
 The manual entry required of the system causes supervisors and support staff to devote a
considerable amount of hours to approving payroll every two weeks.
 Time off requests are not initiated electronically rather all requests are submitted to supervisors in
the form of paper. And again, not all Departments are consistent.
 The Payroll and HR system are not interconnected which requires duplicate data entry of
employee information, pay rates, etc.
 Some words used by the review team to describe the time entry process and system – fudge,
force, inaccurate, unaccommodating, and inflexible.
 The current pay period end date is inconsistent between part-time and full-time employees but
the end date on all payroll checks is the same date.
 No interface with the general ledger requiring manual journal entry preparation and manual entry
in the MUNIS general ledger.
 The current system that houses our payroll data is an MS Access Database that is near its
maximum size and is not supported by our current payroll provider.
 Department Heads are frustrated and have lost confidence in the current time & attendance
system.
Although some of the more important issues pertain to the software, staff recognizes that we have
process and procedure issues that need to be addressed and revised. The process and procedure
issues will be overhauled in conjunction with the implementation of the new system.
New System Features & Benefits
 Fully integrated HR, Benefits, Payroll, Talent, Time and Labor
 Internet based
 ADP Data Centers are 4 Tier
 Unlimited free training for the life of the partnership
 Time & Labor System (T&L)
o Absence Management
o Employee Scheduling
o Swipe Card through time clock – Public Works Service Center
o Swipe Card through time clock – Police Department
Rev 04/18/12
Agenda Cover Memorandum
Online Timestamp for all other employees
 Streamline timekeeping approval process for supervisors
 Streamline time off requests with automatic updates to T&L
 Streamline conversion of time and attendance data to payroll
 Eliminate paper timesheets
 Eliminate paper time off requests
 Audit trail of timestamps and changes to timestamps
 Requires exception reporting
 Doesn’t eliminate the need for supervisor oversight
Human Resources and Benefits
o Benefits Administration
o New Hire and Separation
o COBRA Administration
o Talent Management
o Fully integrated with T&A and Payroll
 Eliminates duplicate data entry
o Performance module
 Streamline performance evaluation
 Streamline tracking of completed/incomplete performance evaluations
o Manager self service
 Conduct performance reviews
 Approve vacation requests
o Employee self service
 Enroll or change benefits
 Vacation requests
 Make changes related to life events such as moving
 View pay statements
 Change W-4 Information
 Set up Direct Deposit
Payroll
o Checks and Direct Deposit
o Tax Administration and Filing
o Year End Processing
o Wage Garnishment Processing
o General Ledger Interface
o Payroll and Tax Support
o Payroll Reports
Reporting
o Allows City to mix and match data from categories in multiple modules
o



Implementation
Target date to go live – May 1, 2013
Average implementation period 4-5 months
Dedicated Implementation Team from ADP
Implementation Phases – Project Start Up, Analysis, Configuration, Conversion, Validation and
Production
Requirements for Successful Implementation
City wide department involvement and ownership
Detailed Project Plan
Updated employee manual
Update policies and procedures
Document all wage scenarios in each union contract
Flexibility to change current practices
Think outside the “Park Ridge Box”
Rev 04/18/12
Agenda Cover Memorandum
Go Live
Management buy-in and support
Patience
Flexibility
Manage Expectations – the system won’t fix everything
Recommendation:
Move to approve the selection of ADP, 100 Northwest Point Boulevard, Elk Grove Village, Illinois 60007
for the Payroll/HR/Time & Attendance system and services. Implementation will begin in the fall of 2012
with official conversion set for May 1, 2013. This is a 3 year agreement totaling $253,367.01.
Budget Implications:
Does Action Require an Expenditure of Funds:
If Yes, Total Cost:
If Yes, is this a Budgeted Item:
Yes
No
$253,367.01 over 3 years
Yes
No
If Budgeted, Budget Code (Fund, Dept, Object) The costs will not begin until FY14
Attachments:


Rev 04/18/12
ADP Pricing Proposal
Ceridian Pricing Proposal