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Home My WebLink AboutAgenda Statement 1980/05/13 Item 10 COUNCIL AGENDA STATEMENT Item 10 ITEM TITLE: Meeting Date 5-13-80 Reso 1 ut i on /11 "9.1- Approvi ng Computer Facil iti es Management Contract with EDP Management, Inc. SUBMITTED BY: Director of Policy Analysis and Program Evaluation 11 (4/5ths Vote: Yes No~) In May, 1978, via Resolution No. 9107, Council approved a contract with EDP Management, Inc., for the supervision and operation of the City's computer center. This arrangement has involved the stationing of an on-site Data Processing Manager who directs four City employees, as well as provides systems analysis and programming services. In addition, the resources of EDP Management, Inc. may be called upon to assist with particularly complex problems or special projects. The current contract with this firm expires on May 18, 1980. Since EDP Management, Inc.'s performance under the contract has been satisfactory, a new agreement has been negotiated. . RECOMMENDATION: That Council: 1. Adopt the resolution approving the agreement. BOARD/COMMISSION.:RECOMMENDATION: Not appl icable. DISCUSSION The majority of the provisions of the existing contract continue to be satisfactory to both parties and remain unchanged. Other than housekeeping matters (such as updating the contract administrator designation to the Director of PAPE), the major modifications to the contract include the following: 1. Section 4A, Payment for Services - The monthly fee is increased $355 (13.4%) from $2,645 to $3,000. The City has paid $2,645 for two years and it is anti- cipated that the new sum would extend over two years unless EDP Management, Inc. cancels after the first year of the new agreement. I consider the.13.4% increase to be reasonable considering price index rises, changes in City salary and supply costs, and the likely total costs if the City were to perform similar services in-house. Furthermore, with EDP Manage- ment's assistance, the City has increased the amount of contractual computer services it provides to other agencies. These contracts are providing additional revenue to the City and have been reducing the annual net cost of the City's computer operations. 2. Section 5, EDP Computer Time Usage - The monthly amount of EDP Management's free usage of the City's computer is reduced from 40.hours to 13 hours and the charge to EDP Management for additional usage of the computer is increased from $35 per hour to $110 per hour. These changes provide EDP Management with a com- parable.'amount of computer capability as under the existing contract, but the changes reflect the greater speed of the City's new B2805 computer and a more equitable definition of computer time which takes the new on-line capability into account. / {JDy, 0 {o~m A-113 (Rev. 11/79) Continued 1__ (!~_<V<LA d '<1''',1- / EXHIBITS Agreement~ Resolution--x- Ordinance_____ Plat_____ Notification List Other ENVIRONMENTAL DOCUMENT: Attached Submitted on Item 10 Meeting Date 5~i 3-80. Page 2 3. Exhibit B, Basic Service Requirements - Under the existing contract, EDP Management is required to provide no less than 80 hours per month of systems analysis and programming, and EDP Management can char.ge the City for any additional systems analysis or programming time. Since EDP Management is required to provide a .full-time employee to fulfill its responsibilities under the contract, the new agreement has been modified to provide the City more flexibility in how that employee's time is spent. For example, the City may desire EDP Management's employee to spend more time in attempting to increase the amount of contractual computer services the City provides to other agencies. The new contract better provides such flexibility with no change in the total staff time provided to the City by EDP Management. FISCAL Ir1PACT Sufficient funds are available in the Data Processing budget to cover the increase of $530 for the ly, months remaining in the current fiscal year. The total cost of the contract for Fiscal 1980-81.;is estimated to be $36,000 and is included in the Manager's budget request for Data Processing. JRT:ac ~f Cl~ula Vist:1, Cu!ifor:l:a Dated -.-L:../3 :.JO . /009 ()