REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Zack Zithisakthanakul, Assistant Chief Financial Officer
PREPARED BY: Zack Zithisakthanakul, Assistant Chief Financial Officer
Subject:
title
Approve and Authorize First Amendment to Professional Services Contract Between iKW Solutions Inc. for Oracle/JD Edwards tools software upgrade and as needed system support consulting services
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Statement of Issue:
Staff requests City Council approval of an amendment to the existing Professional Services Contract between the City of Huntington Beach and iKW Solutions, Inc., dated January 15, 2024, to increase the total not-to-exceed contract amount by $100,000, resulting in a revised total authorization of $200,000. Additional funding is needed to support expanded professional services relating to ongoing financial systems support, process improvement, and implementation work that exceeds the original funding level.
Financial Impact:
The requested increase of $100,000 is available within the Finance Department’s FY 2024-25 operating budget appropriation. No additional General Fund appropriation is required. Expenditures will continue to be charged to the department’s operating budget.
Recommended Action:
recommendation
Approve and authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement between the City of Huntington Beach and iKW Solutions, Inc., increasing the total not-to-exceed contract amount from $100,000 to $200,000.
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Alternative Action(s):
Do not approve Amendment No. 1 and direct staff accordingly.
Analysis:
Over the past several months, the Finance Department has experienced a substantial increase in system-related issues and implementation needs that exceed the internal capacity of the Information Technology Services (ITS) Department. These challenges have required more frequent and specialized support from iKW Solutions, Inc., whose technical knowledge of the City’s Oracle/JD Edwards environment has been critical in maintaining continuity of financial operations. As ITS continues to balance multiple competing priorities citywide, certain complex system matters cannot be fully resolved in-house, resulting in a need for increased consultant assistance. In addition to the several system projects requiring dedicated configuration, one of the largest efforts is the City’s payroll system upgrade with UKG. This includes both the Citywide timekeeping system and the Telestaff scheduling and timekeeping platform used by the Fire Department. The software vendor has discontinued support for on-premise systems and is migrating all clients to cloud-based platforms. This transition significantly increases the technical complexity and workload associated with the project. Due to the scale of the migration and the specialized skill set required, ITS does not currently have sufficient internal expertise or resources to manage the full scope of the implementation. As a result, the Finance Department must rely more heavily on iKW Solutions to ensure a successful integration and to maintain stable financial system operations during the transition.
The unanticipated volume of system issues, combined with the expanded workload tied to major implementation projects such as UKG, has accelerated the pace of consultant hours needed. Increasing the contract amount will allow the City to continue receiving necessary support to maintain critical financial functions, meet project deadlines, and ensure system reliability.
The amendment:
• increases the not-to-exceed funding to $200,000
All other terms of the agreement remain unchanged. This type of amendment is consistent with standard procurement practice and is authorized under the City’s contracting rules when additional funding is required to complete work within an existing scope.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan.
Attachment(s):
1. RCA Contract Agreement Summary
2. iKW Amendment No. 1
3. Professional Service Agreement
4. PowerPoint Presentation