Westminster City Council
SUBJECT
Title
Approval of the Master Services Agreement with KRONOS SaaSHR, Inc., a UKG Company (UKG), for a Human Resources Information System (HRIS) Centralized Software Platform.
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From: Jodie Griner, Human Resources and Risk Management Director
Requested by: Administration
Prepared by: David Facterman, Management Analyst
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RECOMMENDED ACTION
Recommendation
A. Approve the master services agreement with KRONOS SaaSHR, Inc., a UKG Company (UKG), for a Human Resources Information System (HRIS) centralized software platform for managing employee data, payroll, recruitment, onboarding, attendance, performance, and training services in the amount of $581,930, for a term ending December 31, 2031, and with two optional one-year renewals; and
B. Authorize a five percent contingency of the initial agreement cost for additional implementation costs; and
C. Authorize the City Manager or her designee to execute the agreement in a form approved by the City Attorney; and
D. Grant the City Manager the authority to, in the future, exercise the agreement renewal option(s).
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BACKGROUND
The City’s current payroll system, Tyler Eden, was implemented over 20 years ago and has reached the end of its useful life. The payroll system is obsolete and Tyler Eden will no longer provide software support after March 1, 2027. Staff is concerned the software may cease to function properly and could result in costly issues. Additionally, the system lacks modern functionality, requires significant manual processes, and poses increasing risks related to compliance, reporting, and system reliability.
Over the past 10 years, staff has experienced challenges including:
• Limited integration with human resources, finance, and timekeeping systems.
• Inefficient manual data entry and reconciliation processes.
• Difficulty maintaining compliance with evolving federal and State of California payroll regulations.
• Limited reporting and analytics capabilities.
• Increasing maintenance costs and vendor support limitations.
To address these challenges, staff initiated a comprehensive review and procurement process to identify a modern, scalable, and compliant human resources solution.
On August 6, 2025, the City issued a request for proposals (RFP) for HRIS services, seeking to evaluate both cost and service options across the industry. City staff received eight (8) qualified proposals submitted by software providers based on the RFP criteria. Evaluation included each firm's experience, specifically with programs for municipalities and other California clients, competitiveness of proposed fees, and functionality of use.
Among these, the City shortlisted four (4) firms for interviews, as follows:
• KRONOS SaaSHR, Inc., a UKG Company (UKG)
• ADP
• NeoGov
• Workday/Strada
Following evaluations, demonstrations, and reference checks, UKG was selected as the most qualified provider.
The proposed centralized software platform will:
• Automate payroll processing and reduce manual errors.
• Improve compliance with tax and labor regulations.
• Provide real-time reporting and analytics.
• Enhance employee access through self-service portals.
• Integrate with existing City systems (finance, HR, benefits).
• Support scalability for future organizational needs.
• Easy to use employee interface.
Implementation is expected to take approximately four to six months, with a targeted go-live date of January 1, 2027.
FISCAL IMPACT
Funds in the amount of $581,930 will be included, beginning in the Fiscal Year 2026-27 proposed budget, under General Fund Human Resources account 14200-43090 Contractual Other, and through the end of the five-year term. There are two optional one-year renewals with an increase of eight percent annually, which will be budgeted as part of the fiscal year budget. The consultant will be compensated for the scope of work at the approved billing rates, as outlined in the agreement.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
City staff from the Human Resources/Risk Management Department, Finance Department, and Police Department reviewed the submitted proposals and conducted interviews. Following the initial proposal reviews, four firms advanced to in-person of interviews with the City’s selection committee. After thorough evaluation, KRONOS SaaSHR, Inc., a UKG Company (UKG) was selected as the most qualified consultant. Approval of the master services agreement will provide the organization with a modern, scalable solution that supports both operational effectiveness and workforce needs.
ATTACHMENTS
1. KRONOS SaaSHR, Inc., a UKG Company (UKG) Master Services Agreement
2. KRONOS SaaSHR, Inc., a UKG Company (UKG) Scope of Work
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager