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HomeMy WebLinkAboutAgenda Statement 1978/05/16 Item 09CITY OF CNULA VISTA COUNCIL AGENDA STATEMENT Item N°• 9 Far meeting of 5-16-78 ITEM TITLE Resolution 9107 - Approving Facilities Management Contract with EDP Management, Inc. SUBMITTED BY City Manager C~I ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES NO X) In May, 1976, via Resolution No. 8176, the City 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 Facilities Manager who directs four (4) City employees, as well as providing 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. As the current contract with this firm expires on May 18, 1978, a new agreement has been negotiated and is attached. The majority of the existing provisions continue to be satisfactory to both parties and remain unchanged. Other than housekeeping matters (i.e., change of contract administrator from Finance Director to Deputy City Manager) major modifications include: 1) Section 4A, Payment For Services - The monthly fee is increased $345 (15%) from 2,300 to 2,645. The City has paid $2,300/month for two years and it is anti- cipated that the new sum would extend over two years unless EDP Management cancels after the first year of the new agreement. Staff considered the fifteen percent (15%) increase to be reasonable considering price index rises and comparable changes in City salary and supply costs. It is significant to note that in February, 1975, the Data Systems Activity had a total base salary cost of $82,824 ($25,488 of this under the CETA Program). Assuming the proposed Fiscal 1978-79 Budget is adopted, total base salary costs combined with EDP Management's fee will be $92,160. If normal interim base salary increases were applied to the former figure, the Fiscal 1978-79 salary cost would be twenty-two .and one-half per cent (222%) higher, or $101,460. The difference (saving) is $9,300. !-~I11 TT TTA Continued Agreements Resolutions Ordinance Plat Notification List Other ENVIRONMENTAL DOCUMENT: Attached Submitted o~! FINANCIAL IMPACT Sufficient funds are available in the current Data Systems budget to cover the increase of $520 for the 12 months remaining in the Fiscal Year. Total cost for Fiscal 1978-79 is estimated to be $31,740 and is included in the budget request. STAFF RECOMMENDATION Adopt resolution BOARD/COMMISSION RECOMMENDATION A P P R O V E D COUNCIL ACTION a:T ~~z.e ,v. ,,,( {.~.~' :~ a ~' ~~- r~ Page Two Item No. 9 5-16-78 Finally, with EDP Management's assistance, additional contracts have been concluded with other entities resulting in revenues which consistently reduce annual net cost. This combined cost/revenue efficiency has proven very valuable to the City. 2) Section 21, Liability - Various changes have been made here in order to conform with recommendations forwarded by the firm of Warren, McVeigh, Griffin and Huntington in their Risk Management Audit of the City. All of these result in more reasonable protection for Chula Vista. 3) Section 22, Public Liabilit Insurance - As recommended in the above referenced au i anagement is required to have specific types and amounts of coverage. In addition, the City is to be kept better informed of any changes in policy provisions. Late last calendar year, the Deputy City Manager completed a review of data processing goals which included a section on our facilities management contract. Following is an excerpt from that report. City Staffing Versus Facilities Management Contract - In order to implement the Facilities Management approach to EDP services, an outside firm is retained to perform one or more of the following activities: 1. Computer and related equipment operations. 2. Systems analysis and design. 3. Computer programming. The City of Chula Vista has individualized this approach and contracted with EDP Management, Inc. This organization has limited control over use of our com- puter system capacity, and is restricted in its marketing of our facilities to avoid scheduling conflicts with City requirements or "emergency" requests. Chula Vista has realized significant cost savings from this arrangement. Today's opera- tion incurs some $10,270 less annual expense than was the case in early 1975 when the activity was totally in-house staffed. Additional benefits include avoiding the problem of acquiring competent Data Systems personnel at an affordable price. There is also increased flexibility with regard to meshing personalities and orientations. In the area of systems analysis and programming, we have a flexible resource and avoid on-going personnel expenses for short-term periodic peaks in workload. At the same time, we have sufficient in-house employees to handle maintenance of current applications. Finally, there are definite advantages to contracting with a private firm at this stage in our development. An outside business concern has less of a ten- dency to "empire build" and provides the City with different perspectives. Furthermore, a contractor is motivated to please the customer Failure to perform can result in the severest of penalties, termination of the contract. The arrangement also has the advantage of forcing top management and Council in- volvement, if at no other time than at contract renewal. In summary, it has been concluded that our Facilities Management Contract with EDP Management conforms to the immediate and near future requirements of the City. It is, therefore, recommended that the new contract with EDP Management, Inc. be approved.