HomeMy WebLinkAboutAgenda Statement 1986/05/20 Item 17 COUNCIL AGENDA STATEMENT
Item 17
Meeting Date 5-20-86
ITEM TITLE: Resolution /4369A - Approving Computer Facilities
Management Contract with EDP Manageme t, Inc.
SUBMITTED BY: Director of Management Services d r
REVIEWED BY: City Manage xi (4/5ths Vote: Yes No X )
The City has contracted with EDP Management, Inc. since 1975 for the
supervision and operation of the City's computer center. This arrangement has
involved EDP Management's stationing of a full-time, on-site Data Processing
Manager who directs five City employees in the Data Processing Division,
provides systems analysis and programming services for the City, consults with
internal City staff on issues related to automation, and coordinates the
City's marketing and provision of data processing services to outside
agencies. In addition, other EDP Management personnel are available on a
limited basis to assist with specialized types of problems.
The current one-year contract with EDP Management expires June 30, 1986.
Since the firm's performance under the contract has been satisfactory, a new
one-year agreement has been negotiated with EDP Management to become effective
July 1 , 1986.
RECOMMENDATION: Adopt the resolution approving the agreement.
BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable.
DISCUSSION:
The only significant change in the proposed new contract compared to the
existing contract involves the payment amount (Section 4.A. of the contract) .
The monthly payment to EDP Management for basic services would be increased
from $4,489 to $4,791 , a 6.7% increase.
This increase is partially related to an increase in the responsibilities
assigned to the Data Processing Manager. These new responsibilities include
supervision of the City's telephone system and the Word Processing Center. To
provide a point of comparison, the $57,496 annual cost for the proposed
contract during FY 1986-87 is 4.3% higher than the current FY 1985-86 salary
and benefit cost of a Traffic or Sr. Civil Engineer, City positions that are
similar in the sense of being Division Heads in highly technical areas of
responsibility.
Art- •'
• the City Cfuncil of
Chula Vist , California
Datedey a 0 /M;
I t
Page 2, Item 17
Meeting Date 5-20-86
The proposed new contract includes the provisions established in FY 1981-82
for an incentive payment system (Section 4.C. ). This system provides for
potential incentive payments based on the gross revenues from outside agencies
earned by the City's Data Processing Division. For the one-year period
beginning July 1 , 1986, the City would pay EDP Management 10% of any such
revenues earned in excess of $100,000, with the incentive payments limited to
a maximum of $8,000 for the year. This threshold and percentage are the same
as in the contracts for the prior five years. The FY 1986-87 Data Processing
revenue is projected to be $130,000, which would result in an incentive
payment of $3,000 for FY 1986-87.
This incentive system was designed to be an innovative and beneficial aspect
of the contract. By potentially providing part of EDP Management' s
compensation in the form of a small percentage of the revenue earned above a
threshold of $100,000, a net increase is anticipated in the Division' s revenue
above the amount that would otherwise be realized. Such an incentive system
is particularly useful in situations like this where an aspect of good
performance (increased customer business) results in a significant and ongoing
increase in workload. The Data Processing Division is currently providing
service to six outside agencies in addition to City departments. For EDP
Management to receive the maximum $8,000 in incentive payments, the Division' s
annual revenue would have to reach $180,000.
The proposed contract also includes provisions that allow the City the option
of obtaining additional full-time programmers (Section 3.E. ) or additional
temporary personnel (Section 3.F. ) at additional cost to the City. It is not
anticipated that the City will exercise these options during FY 1986-87, and
no funds are budgeted to exercise these options.
The waiving of bids is requested, in accordance with Section 2.56.170 of the
Municipal Code, because the nature of the professional services to be provided
under the contract makes the formal bid process impractical . To operate
efficiently and effectively, the Data Processing Manager needs comprehensive
prior knowledge of the computer systems and user needs of the City as well as
of the six outside agencies served by the Data Processing Division. If the
City were to contract with a new consultant, a significant amount of time
would be required simply to bring the consultant "up to speed" ; during this
period, the productivity of the new Data Processing Manager would of necessity
be low and the City's data processing services would suffer as a result.
Furthermore, the Management Services Director has informally discussed with
other vendors the possibility of their providing similar services as those
provided in this contract, and the cost of such alternatives appears
significantly higher than under the proposed contract with EDP Management.
FISCAL IMPACT: The FY 1986-87 cost of the contract for basic services would
be $57,496, funding for which is included in the City Manager' s Proposed
Budget. Approval of this contract would have an impact (maximum of $8,000) on
the FY 1987-88 budget if the Data Processing revenue earned during FY 1986-87
exceeds $100,000 and thus results in an incentive payment to be made in July
of 1987.
WPC 08881
CITY OF CHULA VISTA
DISCLOSURE STATEMENT
APPLICANT'S STATEMENT OF DISCLOSURE OF CERTAIN OWNERSHIP INTERESTS ON ALL APPLICATIONS
WHICH WILL REQUIRE DISCRETIONARY ACTION ON THE PART OF THE CITY COUNCIL, PLANNING
COMMISSION AND ALL OTHER OFFICIAL BODIES.
The following information must be disclosed:
contract.
1 . List the names of all persons having a financial interest in the 1 =44:4%x
EDP MANAGEMENT, INC.
List the names of all persons having any ownership interest in the property involved.
2. If any person identified pursuant to (1) above is a corporation or partnership, list
the names of all individuals owning more than 10% of the shares in the corporation
or owning any partnership interest in the partnership.
Charles E. Cox
Diana G. Cox
3. If any person identified pursuant to ( 1) above is a non-profit organization or a
trust, list the names of any person serving as director of the non-profit
organization or as trustee or beneficiary or trustor of the trust.
4. Have you had more than $250 worth of business transacted with any member of City
staff, Boards, Commissions, Committees and Council within the past twelve months?
Yes No x If yes, please indicate person(s)
Person is defined as: "Any individual, firm, copartnership, joint venture, association,
social club, fraternal organization, corporation, estate, trust, receiver, syndicate,
this and any other county, city and county, city, municipality, district or other
political subdivision, or any other group or combi .tion acting as a unit."
(NOTE: Attach additional pages as necessary. ,,.
Al 5/12/86
Si .na ure o,'11 r l ''s nt/date
WPC 0701P ti Lewis G. Gee, Jr.
A-110 Print or type name of applicant