Loading...
HomeMy WebLinkAboutItem 2i - Contract with Knights Communication~ GPLIFU$Nf99A f m.oa.o..a nu~..i s, 1v03 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