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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