HomeMy WebLinkAboutAgenda Statement 1984/06/05 Item 12 1 • COUNCIL AGENDA STATEMENT 12
Item
Meeting Date June 5, 1984
ITEM TITLE: Resolution //trn Approving Computer Facilities Management Contract
with EDP Management, Inc.
SUBMITTED BY: Director of Management Services J. (4/5ths Vote: Yes NoX )
i)rREVIEWED BY: City Manager
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 particularly complex problems or special projects.
The current one-year contract with EDP Management expires June 30, 1984. Since the
firm's performance under the contract has been highly satisfactory, a new one-year
agreement has been negotiated with EDP Management to become effective July 1, 1984.
RECOMMENDATION: Adopt the resolution approving the agreement.
BOARD/COMMISSION 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 $3,849 to
$4,087, a 6.2% increase.
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, 1984, 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 three years. The FY 1984-85
Data Processing revenue is estimated at $103,950. If this revenue estimate is met,
the incentive payment for the year would be $395, or an additional 0.8% above the
total annual payment to EDP Management for basic services.
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
Form A-113 (Rev. 11/79)
12
Page Two, Item
Meeting Date June 5, 1984
increase in workload. The Data Processing Division is currently providing service to
nine 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 which is considerably more than twice the revenue amount earned
prior to the establishment of the incentive system.
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 1984-85, and no funds are budgeted to
exercise these options.
With the concurrence of the City Attorney, the Management Services Director has concluded
that it is not necessary or appropriate to solicit formal proposals from other consultants
because of the nature of the professional services to be provided under the contract.
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
nine 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 that under the proposed contract with EDP Management.
FISCAL IMPACT
The FY 1984-85 cost of the contract for basic services would be $49,049, funding for
which is included in the City Manager's Recommended Budget. Approval of this contract
could have an impact (maximum of $8,000) on the FY 1985-86 budget if the Data Processing
revenue earned during FY 1984-85 exceeds $100,000 and thus results in an incentive
payment to be made in July of 1985.
JRT:lm
by the City Council of
Chula Vista, Cal tornia
Dated ll� ' Pfi
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 afflaftittitW.
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 combination acting as a unit."
(NOTE: Attach additional pages as necessary. ) 4(44 q3,1/g4—
S i to of c1r(t/date
WPC 0701P LEWIS 6. GEE S�
A-110 Print or type name of applicant
COUNCIL AGENDA STATEMENT
Item 5
Meeting Date 6/12/84
ITEM TITLE: Resolution ///� / - Appropriating Funds for the Purchase of Phone-In
Dictation Equipment for the Office of the Mayor and
City Council
SUBMITTED BY: Director of Management Services 0/ 1 (4/5ths Vote: Yes X No )
REVIEWED BY: City Manager
During the months of May and June, the Office of the Mayor and City Council has been
using a Lanier phone-in dictation system on a trial basis. At the May 31, 1984 budget
review session, the City Council tentatively approved the purchase of this equipment
during FY 1983-84 and directed staff to prepare a resolution appropriating the necessary
funds.
RECOMMENDATION: Adopt the resolution appropriating funds and authorizing the Mayor
to execute an agreement to purchase the phone-in dictation system.
BOARD/COMMISSIONS RECOMMENDATION: Not Applicable.
DISCUSSION
As discussed at the May 31 budget review session, the dictation equipment tentatively
approved for purchase includes the following: 1 Messenger Console with a Telephone
Interface, 1 Remote Dictate Station for the Mayor's office, 1 Portable Microcassette
Dictation Unit, and related supplies. The cost of this equipment is $2,520, including
the special discount previously discussed. The Purchasing Agent has approved the
purchase of this equipment from Lanier.
As part of the agreement, Lanier will provide an additional "loaner" remote dictate
station for use by Councilmembers through February 1985. If the City purchases its
own phone system and if that system provides touchtone service, the Councilmembers
would then be able to use the dictation system via its phone-in dictation feature.
The "loaner" remote dictate station will enable Councilmembers to use the dictation
system in the Council Office prior to the potential installation of a touchtone phone
system next year. If the City does not obtain touchtone phone service as a result
of the phone system study, the Mayor and Council Office would probably want to
purchase a remote dictate station (at a cost of about $265) after that determination
has been made.
To allow for adequate phone service for the Office of the Mayor and Council as well
as for the dedicated line for the dictation system, an additional phone line should be
added, the annual cost of which is approximately $150.
FISCAL IMPACT
The resolution provides for the appropriation of $2,520 in the City Council 's FY 1983-84
Office Equipment Account (#0105-5566) from the Unappropriated Reserve of the General Fund.
The cost of installing the additional phone line as well as the projected ongoing annual
cost of $150 will be covered by the $300 in additional funding approved in the FY 1984-85
Council budget for the additional phone line. The City Council has also already taken action
to reduce the City Attorney's FY 1984-85 budget by $530, since the proposed purchase of a
dictation unit in that office can be eliminated by transferring the existing Mayor/City Council
dictation equipment to the City Attorney's Office.
Form A-113 (Rev. 11/79)