Payroll Modernization Update - City IT Meeting (May 21, 2026)
Payroll Modernization Update - City IT Meeting (May 21, 2026)
Councillors Nave and Moore met with Amory Degan (First Deputy Commissioner of Finance), Josh Syerson (Project Manager, Innovation Team), and Rick Elsey (Director of Human Resources) to receive an update on the city's payroll modernization project. The project involves implementing a UKG Pro Human Capital Management (HCM) system with support from consultant Mosaic, which began in April 2026. The discussion covered the project's timeline, scope, deliverables, and anticipated benefits.
Discussion Items
- HCM Overview and Objectives: Rick Elsey explained that the HCM system aims to improve efficiency, compliance, and sustainability. It includes modules for HRIS, position management, payroll, timekeeping, employee self-service, and performance management. The system will replace the outdated AS400 payroll platform and streamline processes such as tax updates, ancillary payments, and employee data management.
- Project Timeline: The city previously abandoned an Oracle implementation in January 2025. UKG Pro was selected in April 2025, an RFP for implementation services was issued in May 2025, and Mosaic was chosen. Legislation authorizing the project passed in February 2026, and the project officially kicked off in April 2026. Phase 1 (core HR and payroll) is targeted for launch in January 2027. Phase 2 will improve existing timekeeping systems (SWC, Telestaff) and integrate them with the new HCM.
- Scope and Deliverables: Mosaic's contract covers design, building, testing, and launching all HCM modules. Invoicing is milestone-based, tied to specific deliverables, unlike the previous flat monthly payments. Deliverables include a migration workbook summarizing changes between current and new timekeeping systems.
- Performance Management: Councillor Nave inquired about employee evaluations. Rick Elsey stated there is currently no formal performance management process, and it is not tied to compensation. A performance management module is included in the HCM contract but will be implemented later.
- Efficiency and Stress Reduction: Councillor Moore asked about the human impact. Officials confirmed that the system will reduce paperwork and manual processes, reducing stress on HR and payroll staff, and benefit department heads and hiring managers. Examples given include instant address changes and automated hiring workflows.
- Employee Training: Rick Elsey noted that field employees received in-person training on the timekeeping system, and new hires are trained during onboarding. Handbooks and collective bargaining agreements provide guidance on grievances.
- Incremental Benefits: Councillor Moore sought clarification on benefits before full implementation. The team explained that phase 1 (orange) includes core HR functions (demographic data, position management, payroll) and will deliver major benefits by January 2027. SWC timekeeping is already about 75% rolled out.
- Request for Updates: Councillor Nave requested that the team return after each of the first three phases to report progress. The team agreed.
Key Outcomes
- No formal votes or decisions were taken; the meeting was informational.
- The project is on track with phase 1 expected to launch in January 2027.
- Councillors expressed support for the project and requested regular updates, especially after the completion of the initial phases.
- The presentation slides were requested and will be provided to the councillors.
Meeting Transcript
And I'm gonna wait for you guys at the end, because I can't call that walking. I usually have to park. Someone's gonna give me a right thing. We are going to start our IT meeting on payroll modernization. And with me, I have Councillor Nave. Councillor Moore. And you guys can introduce yourself over that way. Fair enough. Amory Degan, first deputy commissioner of finance. Josh Syerson, I am a project manager on the innovation team and API office. And Rick Elsey for Director of Human Resources. Alrighty. So why don't you guys give us an overview of where you are, what you're doing, and how far along are we? All right. Well, thanks for uh meeting with us today. Uh we are engaged with our consultant Mosaic. Uh they started that process with us in April. And so they are doing some collection of data, reviewing what we've presented to them. Uh, they're trying to meet with all of us to make sure that they understand what our needs are, what our processes are currently, and you know, to help us better assess what we're moving to in the future. So uh right now the initial conversation seem to be going well, they're collecting a lot of information from us so they can really make sure that what they're providing to us is what exactly we need. Okay. Um, because I know that you started with what was it, the water department. Um, for timekeeping, we started with water department. We are currently what we're doing is looking at the um personnel HRIS system as well as our payroll system. So not specifically timekeeping at this time. Oh, okay. So um I was had another question and it just went right out of my head. It'll come back. So let's keep moving. We have some slides prepared here that will probably be pretty short overall if it would be helpful to go through those, and then feel free to interrupt us again. It might just be more conversational, but let us know what you do or don't want to talk about. We might have some stuff for it. Otherwise, happy to just answer questions if they come up. Um, this is just we're these are the things we're gonna go over, some objectives. Um, what is the HCM? Um, and then the UKG implementation, um, the scope of work, timeline, deliverables, and that kind of thing. So we're gonna walk that through. I think Rick's gonna take over. Yeah, absolutely. So again, just as a reminder, um, we've talked about this uh quite a bit of times, but um the objectives of implementing this system um first and foremost are efficiency and compliance. So um being able to streamline all of our HR processes, all of our payroll processes, um, and I'll dive deeper into what that means on the next slide, but um, everything that my team touches, making it more efficient, less paper-driven, um, and compliant with not only our own policies and procedures, but state and federal laws. Uh midterm the or a midterm solution or objective rather, excuse me, is uh the sustainability of our payroll platform. Um so as you all know, we're currently running payroll out of the AS400, which is um quite frankly, older than I am. So um that system does run, but not effectively, and it's not sustainable for the for the long term. Um, this platform is an SAAS, um, which is a software as a service, so um minimal upkeep on our part and easy translation to other solutions if we ever find that UKG is not our right solution. Um and then long term um is obviously to use all of the data and processes that we have in this system to not only better understand our workforce um but direct us in the workforce going forward. So um using that data to fill gaps that we have in recruiting position management, payroll, um contract negotiations, things like that, using that data to our benefit um to advance the city rather than maintain it. Uh and just as a quick recap, uh an HCM is a human capital management system. Um, and that is a uh broad category of a whole bunch of different systems uh or modules is usually what we call them within that HCM. Uh so if you look, there's a whole bunch of things.
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