5b Memo
PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 5b Date of Meeting June 8, 2010 DATE: May 20, 2010 TO: Tay Yoshitani, Chief Executive Officer FROM: Wendy Reiter, Director Aviation Security and Emergency Preparedness Peter Garlock, Chief Information Officer SUBJECT: Time Clock System Project CIP# C-800387 REQUESTED AMOUNT: $380,000 SOURCE OF FUNDS: Airport Development Fund SALES TAX: $7,500 ACTION REQUESTED: Request authorization for the Chief Executive Officer to approve all work and contracts including executing and amending any and all necessary contracts and service directives to purchase and implement information technology (IT) hardware and software for the Time Clock System Project in an amount not to exceed $380,000. This project is being authorized in accordance with Section 5 Resolution No. 3605. SYNOPSIS: This IT project will competitively procure and implement a commercial time clock system that will accurately capture and track time and attendance for approximately 230 employees in Aviation Security and Airport Operations organizations at Seattle-Tacoma International Airport (the "Airport"). Currently, paper time cards in a variety of formats are submitted weekly by employees, reviewed by a supervisor, and manually entered into the Peoplesoft Time and Labor system. The American Payroll Association (APA) studies estimate that between 3% and 10% of payroll costs are lost due to errors and lost time. Using a conservative estimate of 3% as well as savings from automation and the elimination of paper, benefits are estimated at over $330,000 annually which are primarily from productivity improvements. This project was included in the 2010-2014 capital budget and plan of finance as a business plan prospective project within CIP# C-800066, AV/IT Small Capital Projects. The budget will be transferred to CIP# C-800387, Time Clock System. BACKGROUND: Aviation Security and Airport Operations organizations use a variety of time and attendance tracking methods utilizing paper time cards for their staff. To improve efficiency and ensure accuracy, there is a desire to automate the capture of time and attendance information using biometric readers placed COMMISSION AGENDA T. Yoshitani, Chief Executive Officer May 20, 2010 Page 2 of 4 throughout the airport in locations close to work areas and web-based interfaces on some computers. Current Local 9 ILWU contracts, for Airport work teams, contain language allowing for implementation of this system. Studies were completed by the APA on the benefits of moving from a manual, paper-based time card process to an automated time clock system. Following are the results of these studies. Card Audit Savings The average time to audit one paper time card is 7 minutes compared with an estimate of 1 minute after automation. Lost Time Savings The average lost time for each employee is estimated with national data at 49 minutes per week. Lost time is accumulated from long breaks or tardiness. Elimination of Errors There is an error rate of between 1-8% of total payroll in companies that use traditional timecards. PROJECT DESCRIPTION AND SCOPE OF WORK: Project Statement This project will competitively procure, and install a Time Clock System that accurately captures and tracks time and attendance as well as develop an interface to the Port of Seattle Peoplesoft Time and Labor system to eliminate data entry duplication. Project Objectives Accuracy Accuracy will be increased by reducing unauthorized leave time and tardiness and eliminating inflated hours due to rounding. Go "Green" Printing and paper costs will be eliminated. Efficiency Efficiency will be increased by improving time card review and reconciliation process and eliminating duplicate data entry into the Port Peoplesoft Time and Labor system. Analytics Having an automated tracking system that generates metrics will assist with the management of attendance, absenteeism, tardiness, and overtime opportunities as well as allow managers to analyze trends. Growth opportunity Purchasing an application that is flexible enough to handle a large number of employees will allow it to be used by other Port teams in the future. Scope of Work Competively procure a Time Clock system through an RFP process. Install time clock devices in strategic locations across the airport. Installation will be completed by Port Construction Services. Develop an interface from the Time Clock System to the Port Peoplesoft Time and Labor system. COMMISSION AGENDA T. Yoshitani, Chief Executive Officer May 20, 2010 Page 3 of 4 STRATEGIC OBJECTIVES: This project supports the following Port strategies: Ensure Airport and Seaport vitality: Benefits from elimination or reduction of errors, manual efforts, data entry duplication, and lost time is estimated at $330,000 per year based on APA studies. These benefits are primarily in productivity improvements. Be a High Performance Organization: Automation of time cards will increase organization efficiency and focus on high-value activities. FINANCIAL IMPLICATIONS: Budget/Authorization Summary: Original Budget $380,000 Budget Transfers $0 Revised Budget $380,000 Previous Authorizations $0 Current request for authorization $380,000 Total Authorizations, including this request $380,000 Remaining budget to be authorized $0 Project Cost Breakdown: Port of Seattle Labor and Contractors $242,500 Vendor Implementation $20,000 Software Licenses & Hardware $60,000 Contingency ~15% $50,000 Tax 9.5% $7,500 Total $380,000 Recurring Cost Breakdown: Port of Seattle Labor $22,000 Software License and Maintenance Fees $6,500 Total $28,500 Source of Funds: This project was included in the 2010-2014 capital budget and plan of finance as a business plan prospective project within CIP# C-800066, AV/IT Small Capital Projects. The budget will be transferred to CIP# C-800387, Time Clock System. The source of funds is 100% Airport Development Fund. Financial Analysis Summary: COMMISSION AGENDA T. Yoshitani, Chief Executive Officer May 20, 2010 Page 4 of 4 CIP Category Technology Project Type Technology Risk adjusted Discount rate 7.0% Key risk factors NA Project cost for analysis $380,000 Business Unit (BU) Aviation Security/Aviation Operations Effect on business performance NA 5 Year NPV/IRR $811,000/78.5% CPE Impact Less than $.01 - no change from forecast as this project was included in business plan forecast PROJECT SCHEDULE: Commission Approval June 2010 Time Clock System Implementation July 2011 Peoplesoft Interface July 2012 Project Completion July 2012 The schedule for Peoplesoft Time and Labor interface development reflects resources constraints from higher priority proposed projects. Interface Development will begin once resources are available. OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: None. ALTERNATIVES CONSIDERED/RECOMMENDED ACTION: 1. Time Clock System: Procure a mid-size time clock system to capture and track time and attendance. In addition, develop and implement an interface to PeopleSoft for time reporting information. This is the recommended solution. 2. Workforce System: Procure a complete workforce solution suite. The cost of this alternative significantly exceeds that of the recommended solution but adds no mandatory functionality. This is not the recommended solution. 3. Do Nothing. Current manual processes will remain in place and objectives will not be met. This is not the recommended alternative. PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: No previous Commission actions or briefings for CIP# C-800387, Time Clock System.
Limitations of Translatable Documents
PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.