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HomeMy WebLinkAboutItem 2k: Contract with Knight Communications for FY 2010-11 Information Systems ManagementSUMMARY DISCUSSION STAFF REPORT Administrative Services Department DATE: August 17, 2010 TO: Mayor and City Council FROM: Hue C. Quach, Administrative Services Director SUBJECT: Professional Services Agreement - Information Systems Management Recommendation: Authorize the City Manager to execute a Professional Service Agreement with Knight Communications for the Fiscal Year 2010- 11 with an annual contract price of $361,400. On May 1, 2007, Council approved a three (3) year with optional one -year extension professional services agreement with Knight Communications (Knight) for information systems management. For the Fiscal Year 2010 -11, the City is entering into the fourth and last year of that agreement which provides for the option to renew current service for the final year prior to going to a request for bid proposal process. Due to their quality and high level of service, staff is recommending exercising the final year's option of renewing the existing agreement in the amount of $361,400, a 2.5% reduction from the prior year's contracted cost. Under the terms of the agreement that was signed in May 2007, Knight is to receive an annual inflationary adjustment based on the April to April Los Angeles- Riverside - Orange County All Urban Consumers Price Index (CPI) as published by the United States Department of Labor Bureau of Labor Statistics. The agreement signed was a three (3) year agreement with the fourth year providing the option of renewing with similar terms. Based on available data from the Bureau of Labor Statistics, the annual inflationary adjustment for the fourth year would be 1.90 %. This CPI adjustment has been waived plus a 2.5% reduction has been proposed for the fourth year's contract by Knight Communications. Last year, FY 2009 -10, as the recession took hold and the City had projected a budget deficit for the fiscal year, Knight receptively agreed to partner with the City to reduce the Mayor and City Council August 17, 2010 Page 2 of 3 projected FY 2009 -10 deficit by foregoing any CPI increases due and reduced their contract with the City by 6% to $370,667. As we proceed in to the Fiscal Year 2010 -11, Knight has again proposed to reduce the existing contract by 2.5% to $361,400 in light of the budget cuts that the City implemented and recognizing that the overall economy continues to stall without much improvement for the remaining fiscal year. Knight provides a comprehensive service of effectively keeping citywide information systems running without major downtime to the City. Knight services include assisting with the City's various data development, collection, and retrieval systems. It provides technical support to the City with a 24hrs on call service for computer network, servers, personal computers and printers along with specialized technologies of specific City departments encompassing imaging systems, records management, library automation systems, and more. Knight works closely with third party hardware /software vendors in the resolution of problems associated with their hardware and software. In general, Knight's I.T. staff provides support and manages 26 servers citywide and plays a critical role in providing support between the City and its vendors of 55 different software applications when software issues arises. In addition to the day to day operation, Knight provides assistance and review of the City's I.T. assets and long range infrastructure improvements by continuing to evaluate technology resources in the marketplace and determine appropriate technology upgrades to ensure City business needs are being met. Since the reorganization of Arcadia's in -house information systems division in August 2000, Knight Communications have been the City's information technology consultant. Knight's performance have been excellent and received many compliments from all departments for their responsiveness and their ability to provide and suggest solutions. Knight Communications was highly recommended by other cities such as Monterey Park and Montebello when they were chosen to provide I.T. service to Arcadia. At inception, their work performances have been excellent year over year and very competent in helping the city bridge to the latest available technology. Due to their highly specialized skills and the importance of maintaining consistency in the management of our complex network citywide, staff is recommending exercising the option of renewing the fourth year's contract. FISCAL IMPACT The annual cost for providing information systems management is $361,400. Appropriate funds are budgeted in the General Fund Operating budget for Fiscal Year 2010 -11. Mayor and City Council August 17, 2010 Page 3 of 3 RECOMMENDATION It is recommended that the City Council authorized the City Manager to enter into a professional services agreement with Knight Communications for citywide Information Technology Services for the Fiscal Year 2010 -11 with a contract amount of $361,640. Approved By: Donald Penman City Manager