REPORT TO THE CITY COUNCIL FROM: BRYON HORN, Director Information Services Department BY: DENNIS JONES, Systems & Applications Manager Information Services Department SUBJECT ..Title Approve the award of a Cooperative Purchase Agreement to Mythics, LLC., in the amount of $6,383,482.16, for an upgrade of existing PeopleSoft HCM (HR and Payroll) software which includes upgrade services, cloud application hosting, software licensing, and support for five years ..Body RECOMMENDATION Staff recommends Council approve the award of a Cooperative Purchase Agreement to Mythics, LLC., in the amount of $6,383,482.16, in accordance with purchasing procedures set forth in Administrative Order 3-1; and authorize the Chief Information Officer to enter into a five-year agreement to upgrade our existing PeopleSoft HCM software including software licensing and related services. EXECUTIVE SUMMARY The City is seeking approval to enter into a new five-year service agreement with Mythics, LLC. to upgrade and support the City's HR and Payroll services. This agreement will enable the City to enhance, modernize, and streamline processes for human resources and payroll. This upgrade is needed to ensure uninterrupted delivery of essential services into the future and allow the City to retire aging hardware and software. The licensing and services shall be priced and purchased using a Cooperative Purchase Agreement as set forth in Administrative Order 3-1. ISD will be using a contract with Maricopa County through Omnia Partners (Contract 180233-002) (Original Government Contract) to complete this purchase. BACKGROUND The City signed an initial agreement with PeopleSoft in June of 1998 and began using PeopleSoft for HR and Payroll services in 1999. The system has been upgraded numerous times through the years through a series of amendments and support renewals. In May 2013, during a period of economic downturn, the City began using 3rd party support for PeopleSoft to save on support costs. While this saved the City money, it also prevented the City from upgrading the system through the licensed vendor Oracle. The process leading to the current recommendation has included a comprehensive evaluation of the City's needs for HR and Payroll services. Staff have provided assessments of features they would like to see as part of an enhancement project. It was determined that an upgrade with a period of five-years in the agreement will best ensure continuity of service, minimize transition risks, and support the City's enhancement of HR and Payroll services. As with prior agreements, the proposed agreement has undergone legal review and has been approved as to form by the City Attorney. The agreement includes updated insurance and indemnification provisions, as well as requirements for data security and confidentiality, in accordance with current City policies and applicable law. ENVIRONMENTAL FINDINGS By definition of the California Environmental Quality Act (CEQA) Guidelines Section 15378, the approval of this agreement does not qualify as a "project" as defined by CEQA. LOCAL PREFERENCE Local preference was not implemented because a Cooperative Purchase Agreement is being used through another governmental agency. FISCAL IMPACT The funding for the proposed five-year Service Agreement with Mythics LLC. is budgeted for in the Information Services Department's (ISD) ERP Replacement Fund. The cost for the first year of the agreement is $2,437187.28. ISD currently collects yearly appropriations to pay for the remainder of the Agreement over the 5-year term. No additional fiscal impact is expected. Attachments: Cooperative Purchase Agreement Omnia Piggyback Contract 180233-002 Scope of Work