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HomeMy WebLinkAboutItem 09n - UKG Telestaff Cloud Based Staffing Program STAFF REPORT FIRE DEPARTMENT DATE: October 6, 2026 TO: Honorable Mayor and City Council FROM: Chen Suen, Fire Chief By: Richard Oishi, Deputy Fire Chief SUBJECT: CONTRACT WITH UKG KRONOS SYSTEMS, LLC FOR UKG TELESTAFF CLOUD BASED STAFFING PROGRAM FOR A THREE-YEAR TERM, WITH THE OPTION TO RENEW FOR THREE ONE-YEAR EXTENSIONS CEQA: Not a Project Recommendation: Approve SUMMARY The Arcadia Fire Department has utilized UKG Kronos Telestaff for more than 20 years to manage daily staffing assignments and for payroll purposes. Telestaff is configured to administer the Department’s complex staffing policies and rules in accordance with the Arcadia Fire Fighters’ Association (“AFFA”) Memorandum of Understanding (“MOU”) and the Arcadia Fire Department Staffing Policy 1040. The system also automates staffing telephone calls, provides web-based staffing management, and maintains historical staffing information through its cloud-based platform. UKG Kronos Systems, LLC has proposed an initial three-year agreement with annual increases set at 4%, followed by three optional one-year extensions with a 6% annual increase. The initial three-year contract has a total cost of $35,934, plus applicable taxes. If all three optional one-year extensions are exercised, the total cost over the six-year period will be $77,949, plus applicable taxes. It is recommended that the City Council approve, authorize, and direct the City Manager to execute a three-year contract with UKG Kronos Systems, LLC in the amount of $35,934, plus applicable taxes, with the option for three additional one- year extensions. It is further recommended that the City Council delegate the Purchase Order with UKG Kronos Systems October 6, 2026 Page 2 of 4 authority to approve future extensions under this agreement to the City Manager, without having to return to the City Council for subsequent approval, provided that the annual increases remain within the proposed contractual limits. DISCUSSION Telestaff is an essential component of the Fire Department’s daily operations. The platform tracks personnel assignments, vacancies, overtime, leave, shift trades, and timecard information used for payroll processing. It also applies to the staffing rules established under Fire Department Policy 1040 and the provisions of the AFFA MOU when filling vacancies and making staffing assignments. Unlike standard workforce scheduling systems, fire department staffing requires the system to account for rank, qualifications, work schedules, leave provisions, overtime rules, and minimum staffing requirements. The Department has used Telestaff for more than 20 years, and the system contains extensive historical staffing and payroll information. Telestaff Cloud preserves this historical information while providing web-based access and automated telephone notifications to fill staffing vacancies. Continuing with the existing platform will minimize operational disruption, data migration concerns, and the substantial staff time that would be required to configure and implement a replacement system. UKG has confirmed that Telestaff Cloud and its associated hardware and timekeeping terminals are proprietary products owned exclusively by UKG and its affiliates. UKG Inc. and UKG Kronos Systems, LLC are the authorized affiliates offering these products and services. Based on the proprietary nature of the system and its ability to administer the Department’s established staffing policies and AFFA MOU requirements, UKG Kronos Systems, LLC qualifies as a sole-source provider for the continued use and support of Telestaff Cloud. The proposed contract provides services for 95 personnel (units) and is billed annually. The initial three-year term runs from September 2, 2026, through September 1, 2029, with a total commitment of $35,934. The agreement also provides for three optional one-year extensions, each with a fixed 6% annual increase. To achieve the best price possible, several rounds of communication and negotiations with the vendor to secure a discounted rate and favorable pricing for the City. This proposed contract provides a predictable cost structure and supports Purchase Order with UKG Kronos Systems October 6, 2026 Page 3 of 4 fiscal planning. It also offers cost savings compared with renewing the service on an annual basis, which would result in annual increases of approximately 8-10%. If all three optional extensions are exercised, the total cost over the six-year period will not exceed $77,949. Initial Three-Year Term Term Period Annual Adjustments Annual Cost Year 1 4% $11,511 Year 2 4% $11,972 Year 3 4% $12,451 Initial Three-Year Total $35,934 Optional One-Year Extensions Term Period Annual Adjustments Annual Cost Extension Year 4 6% $13,198 Extension Year 5 6% $13,989 Extension Year 6 6% $14,828 Total for All Extensions $42,015 Maximum Six-Year Cost $77,949 ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the environment. FISCAL IMPACT The initial three-year cost of the UKG Telestaff Cloud contract is $35,934, plus applicable taxes. If the City exercises all three optional one-year extensions, the total cost over the six-year period will be approximately $77,949, plus applicable taxes. Service will be billed annually, with a Year 1 cost of $11,511 in Fiscal Year 2026-27. Sufficient funds are available in the Fire Department’s Fiscal Year 2026-27 operating budget to cover this year’s cost. Funding for subsequent years will be included in future annual budget requests, subject to appropriations. Purchase Order with UKG Kronos Systems October 6, 2026 Page 4 of 4 RECOMMENDATION It is recommended that the City Council find that the proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”); and approve, authorize, and direct the City Manager to execute a three-year contract with UKG Kronos Systems, LLC in the amount of $35,934, plus applicable taxes, with the option for three additional one-year extensions. It is further recommended that the City Council delegate the authority to approve future extensions under this agreement to the City Manager, without having to return to the City Council for subsequent approval, provided that the annual increases do not exceed the proposed contractual limits.