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ki4nitY STAFF REPORT
Administrative Services Department
DATE: August 18, 2009
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 an amendment
to existing agreement with Knight Communications for the Fiscal Year
2009-10 to amend the annual contracted price to $370,667.
SUMMARY
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 2009-10, the City is entering into the third
year of that approved agreement. Under the terms of the agreement, Knight is to
receive an annual inflationary adjustment based on the April to April Los Angeles-
Riverside-Orange County All Urban Consumers Price Index as published by the United
States Department of Labor Bureau of Labor Statistics.
During the budget process, as the recession took hold and the City had projected a
budget deficit for the Fiscal Year 2009-10, staff approached Knight for their
consideration to renegotiate the terms and pricing of our existing agreement in an
attempt to lessen the City's projected budget shortfall. Knight responded receptively by
proposing to maintain current service level, forgoing their annual CPI adjustment, and
further reduce prior year's contracted price of $394,327 by 6% to $370,667 for FY 2009-
10.
In compliance with our purchasing policy which requires that contract greater than
$30,000 shall be presented to Council for approval, staff has brought this amendment to
Council's approval as it makes changes to existing terms of the contract. Staff
recommends that the City Council authorize the City Manager to enter into an
amendment to the agreement affecting the overall contracted amount for FY 2009-10.
Mayor and City Council
August 18, 2009
FISCAL IMPACT
The cost for providing
funds are budgeted in
Fiscal Year 2009-10.
RECOMMENDATION
information systems management is $370,667. Appropriate
the Administrative Services and Police Department budgets for
It is recommended that the City Council authorized the City Manager to enter into
Amendment No. 7 to a professional services agreement with Knight
Communications to reduce Fiscal Year 2009-10 contract amount to $370,667.
Approved By:
Donald Penman
City Manager