Title
Municipal Payroll Consulting Services - Approval
History
The FY2020 budget includes funding to outsource payroll processing. A Request for Proposal (RFP) was issued in early February 2020 seeking municipal payroll consulting services. Services to be provided by the consultant include, but are not limited to, the following:
--Confirm all employee record changes processed by HR are correct by reviewing applicable PAF.
--Process employee record changes not recorded on a PAF. Completed no later than the end of the day on Friday before payroll week.
--Verify that all pay applicable to the pay period are properly entered in the payroll system.
--Verify that all timesheets entered into the employee self-service portal have been submitted to the payroll application by 12:00 pm on Monday of each payroll week.
--Import seasonal employees into Innoprise by 5:00 pm on Monday of payroll week.
--Complete payroll processing no later than 3:00 pm on Tuesday of each payroll week.
--Process payments and applicable reports/documents.
--Prepare all year-end documents and reports, including but not limited to, W2s, 941s, and any other regulatory reporting required.
--Perform other services outside the regular payroll schedule as assigned.
The RFP was posted on BidNet Direct and courtesy emails were also sent to two firms that specialize in these services letting them know that an RFP had been issued. A total of eleven different firms downloaded the RFP documents on BidnetDirect. The Village received one proposal from Lauderbach & Amen, LLP.
Lauterbach & Amen, LLP (L&A) is a local firm with extensive public sector experience that provides actuarial, audit, financial, pension and tax services to more than 250 municipalities, park districts, school districts, libraries, pension funds, and other public entities. L&A is currently providing payroll consulting services to a number of municipalities including the Villages of Glenview, Carpentersville and Western Springs. L&A will be on-site approximately 32 hours each pay period and will also set up an email and phone number so that employees can contact them at any time concerning payroll related matters.
Staff recommends that the Village retain the service of L&A and enter into a contract for a period not to exceed five (5) years, with an anticipated start date of April 20, 2020. The current estimated fee at $80 per hour is $2,560 per period and $3,200 for year-end services. The hourly rate for payroll services shall be increased annually by the lesser of the most recent annual Village pay increases given to non-union employees or three (3%) percent.
Financial Impact
The FY2020 budget includes $55,000 for the outsourcing of the payroll process. This expense will need to be budgeted each fiscal year.
Recommended Action/Motion
I move to accept the proposal from the lowest responsible and responsive proposer, Lauterbach & Amen, LLP in the submitted proposal amounts;
And
Authorize the Village Manager to execute an agreement with Lauterbach & Amen, LLP to provide municipal payroll consulting services for a period not to exceed five (5) years.