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Item No. 22 TO: Mayor, Mayor Pro -Tem & City Council FROM: Rose Beverly, City Manager SUBJECT: Purchase of UKG Payroll Software DATE: July 28, 2025 BACKGROUND: OpenGov acquired the STW financial software system previously used by the City. As part of this transition, the City successfully integrated its operations into the OpenGov platform. However, at the time of integration, OpenGov did not yet have a payroll module available. The City was informed that we would be permitted to continue using the legacy STW system for payroll through the end of 2026. In the meantime, we would need to identify and implement a separate payroll system that could integrate with OpenGov. The Finance Department undertook extensive research to evaluate options that would best serve the needs of Paris. By the time I joined the City, the team had narrowed the field to two potential paths: 1. Participating as a pilot user for OpenGov's new, in -development payroll module, or 2. Selecting a proven, well-established payroll and HR system with robust features that could enhance City operations. After careful consideration, we determined that joining the OpenGov pilot project would present too great a risk. Implementing an untested system, especially one as complex as payroll would place a significant burden on staff and could lead to operational disruptions. Last month, we made the decision to proceed with UKG, a trusted provider with a strong track record and valuable Human Resources features. This direction will allow us to implement a reliable, fully supported solution without placing undue strain on City personnel. STATUS OF ISSUE: We have negotiated a contract and finalized pricing for the suite of services we intend to implement with UKG. The agreement includes a comprehensive range of features to support our City's needs, including: • Electronic timekeeping • Accruals management • Employee scheduling • Benefits administration • Online recruiting and application tracking • Payroll processing • System implementation and launch support