HomeMy WebLinkAboutAgenda Statement 1985/06/25 Item 9 COUNCIL AGENDA STATEMENT
Item 9
Meeting Date 6-25-85
[TEM TITLE: Resolution//Zj5f - Approving Computer Facilities Management Contract
with EPP Manapment, Inc.
>UBMITTFD BY: Director. of Management Services d f (4/5ths Vote: Yes No X )
ZEVIEWED BY: City Manager
[he City has contracted with EDP Management, Inc. since 1975 for the supervision and
)peration of the City's computer center. This arrangement has involved EDP
lanagement's stationing of a full-time, on-site Data Processing Manager who directs
'ive City employees in the Data Processing Division, provides systems analysis and
)rogramming services for the City, consults with internal City staff on issues related
:o automation, and coordinates the City's marketing and provision of data processing
services to outside agencies. In addition, other FDP Management personnel are
available on a limited basis to assist with particularly complex problems.
'he current one-year contract with EDP Management expires June 30,
1985. Since the
firm's performance under the contract has been very satisfactory, a new one-year
agreement has been negotiated with FDP Management to become effective July 1, 1985.
3ECOMMENDATION: Adopt the resolution approving the agreement.
30ARD/COMMISSION RECOMMENDATION: Not Applicable.
)ISCUSSION
fie only significant change in the proposed new contract compared to the existing
:ontract involves the payment amount (Section 4.A. of the contract). The monthly
)ayment to FDP Management for basic services would be increased from $4,087 to $4,489,
i 9.8% increase.
'o provide a point of comparison, the $53,870 annual cost for the proposed contract
luring FY 1985-86 is 3.5% higher than the current FY 1984-85 salary and benefit cost
>f a Traffic or Sr. Civil Engineer, City positions that are similar in the sense of
peing Division Heads in highly technical areas of responsibility. As a further point
)f_ comparison, the Personnel Department recently completed a salary survey of
)ositions fairly comparable to our Data Processing Manager in cities similar in
population size to Chula Vista. That survey indicated that most of the cities having
:omparable positions were already paying more in FY 1984-85 salary and benefit costs
than the proposed FY 1985-86 contract cost.
'he proposed new contract includes the provisions established in FY 1981-82 for an
ncentive 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, 1985, the City would
Page Two, Item 9
Meeting Pate 6-25-85
ay EDP Management 10% of any such revenues earned in excess of $100,000, with the
ncentive payments limited to a maximum of $8,000 for the year. This threshold and
ercentage are the same as in the contracts for the prior four years. The FY 1985-86
ata Processing revenue is projected to be $97,900. Thus, an additional $2,100 in
evenue would need to be generated above the projected amount before any incentive
ayment would be made for FY 1985-86.
his incentive system was designed to be an innovative and beneficial aspect of the
ontract. By potentially providing part of EDP Management's compensation in the form
f a small percentage of the revenue earned above a threshold of $100,000, a net
ncrease is anticipated in the Division's revenue above the amount that would
therwise be realized. Such an incentive system is particularly useful in situations
ike this where an aspect of good performance (increased customer business) results in
significant and ongoing increase in workload. The Data Processing Division is
urrently providing service to seven outside agencies in addition to City
epartments. For EDP Management to receive the maximum $8,000 in incentive payments,
he Division's annual revenue would have to reach $180,000.
he proposed contract also includes provisions that allow the City the option of
btaining additional full-time programmers (Section 3.E.) or additional temporary
ersonnel (Section 3.F.) at additional cost to the City. It is not anticipated that
he City will exercise these options during FY 1985-86, and no funds are budgeted to
xercise these options.
he waiving of bids is requested, in accordance with Section 2.56.170 of the Municipal
ode, because the nature of the professional services to be provided under the
ontract makes the formal bid process impractical. To operate efficiently and
ffectively, the Data Processing Manager needs comprehensive prior knowledge of the
omputer systems and user needs of the City as well as of the seven outside agencies
erved by the Data Processing Division. If the City were to contract with a new
onsultant, a significant amount of time would be required simply to bring the
onsultant "up to speed"; during this period, the productivity of the new Data
rocessing Manager would of necessity be low and the City's data processing services
ould suffer as a result. Furthermore, the Management Services Director has
nformally discussed with other vendors the possibility of their providing similar
ervices as those provided in this contract, and the cost of such alternatives appears
ignificantly higher than under the proposed contract with EDP Management.
ISCAL IMPACT
he FY 1985-86 cost of the contract for basic services would be53l 870 0 this, r
funding ngra fofo
hich is included in the City Managers Proposed Budget. App r$
ould have an impact (maximum of $8,000) on the FY 1986-87 budget if the Data
rocessing revenue earned during FY 1985-86 exceeds $100,000 and thus results in an
ncentive payment to be made in July of 1986.
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CITY OF CHULA VISTA
DISCLOSURE STATEMENT
NS
LICANT'S STATEMENT OF DISCLOSURE OF ONON CERTAIN THE PART OWNERSHIP OF THE INTERESTS C TY NCOUNCILPPLPLANN�NG
CH WILL REQUIRE DISCRETIONARY A C
MISSION AND ALL OTHER OFFICIAL BODIES.
following information must be disclosed: contract
List the names of all persons having a financial interest in the
•
EDP MANAGEMENT, INC.
List the names of all persons having any ownership interest in the property involved.
, list
If any person identified pursuant to (1) l0�aof t er hares or atheecorporation
the names of all individuals owning more
or owning any partnership interest in the partnership.
Charles E. Cox
Diana G. Cox
or a
If any person identified pursuant er , servingisas directoritofrgthezdnonnprofit
trust, list the names of any person
organization or as trustee or beneficiary or trustor of the trust.
Have you had more than $250 worth of business
transacted
staff, Boards, Commissions, Council within
the past twelve months?
Yes No x If y es please indicate person(s)
son is defined as: "Any individual , firm, copartnership, j oint venture, association,
iaT club, fraternal - organization, corporation, estate, trust, receiver, syndicate,
and any other county,
city and county, city,
itical subdivision, or any other group or combi1.tion acting as a unit."
E: Attach additional pages as necessary. 6/17/85
S nature • • .pli='.nt date
�s
0701P Print or type name of applicant
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