03.11 Information Technology Services1. SUBJECT
Fifth Amendment, Third Extension to Agreement with Conduent State and Local
Solutions, Inc. for Information Technology Services
2. SUMMARY
The City contracts for Information Technology (IT) Services with Conduent (formerly Xerox)
State and Local Solutions, Inc. The latest contract was approved by the City Council on June 28,
2011. The initial term for the contract is five years, with options to extend up to an additional
three years. The initial term expired on June 30, 2016. The City extended the agreement through
June 30, 2017, and again through June 30, 2018. The proposed, and final, extension is for one
additional year.
3. RECOMMENDED ACTIONS
Approve the Fifth Amendment to the Information Technology Services Agreement with
Conduent State and Local Solutions, Inc., extending the Agreement for one year commencing
July 1, 2018 and terminating on June 30, 2019, and authorize the Mayor to execute the
Amendment.
4. FISCAL IMPACT
The total not to exceed compensation under the Third Extension Term is $1,364,426.97. This
expenditure will be included as part of the proposed FY 2017 -18 Operating Budget in account
780.1601.51670.00000 (Information Systems Fund — Contractual Services).
5. STRATEGIC PLAN GOAL(S)
4a. Provide outstanding public services — Enhance technology to improve public accessibility to
information and services.
6. GENERAL PLAN IMPLEMENTATION
Not applicable.
7. DISCUSSION and BACKGROUND
Background
The City has contracted for Information Technology (IT) support since 1984. Contracting for
this service continues to be a more cost effective and efficient method of providing this service as
opposed to having an in -house IT department.
The City approved its latest contract with the current vendor, Conduent State and Local
Solutions, Inc. ( Conduent), in June 2011, after a competitive bid process. That agreement
included an initial term of five years, with a City option to extend the agreement up to an
additional three years. The initial term expired on June 30, 2016, and in March 2016, a one -year
extension was approved, which expired on June 30, 2017. In May 2017, a second one -year
extension was approved, which expires on June 30, 2018.
Through the six and a half years of the Agreement, the City has been very satisfied with the
services provided by Conduent. The on -site IT staff have been responsive and effective in
ensuring the City's complex and extensive IT network remains sound and secure.
Discussion
Since the execution of the agreement, there has been a significant growth in technology
sophistication and acquired IT infrastructure. As such, staff is continuing to review the current
IT staffing structure and is working with Conduent to identify necessary changes in order to keep
up with our increased IT needs, and balancing those needs within the fiscal challenges we face in
the next year.
The initial base rate for services was $1,295,000 for FY 2011 -12. This was unchanged for year
two of the agreement (FY 2012 -13). Beginning in year three (FY 2013 -14), the fee increased
annually in an amount equivalent to the percentage increase granted to the Orange Municipal
Employees Association (OMEA), with a minimum of 1% and a maximum of 2.2 %. There is no
scheduled increase for OMEA in FY 2018 -19. Therefore, the increase is 1%, which results in a
fee for FY 2018 -19 of $1,364,426.97.
As this is the final extension under the current agreement, staff has initiated discussions with
Conduent regarding the long -term status of IT services. Staff will provide updates to the City
Council as these discussions continue.
18. ATTACHMENTS I
Fifth Amendment to Information Technology Services Agreement
ITEM 2 5/8/18
CITY COUNCIL MINUTES MAY 8, 2018
3. CONSENT CALENDAR (Continued)
3.9 Number not used.
3.10 First Amendment to Installation and Service Surveillance Equipment Agreement No.
6520 with Convergint Technologies, LLC. (A2100.0; AGR- 6520.1)
ACTION: 1) Approved First Amendment to the agreement with Convergint Technologies,
LLC in the amount of $35,846, and authorized the Mayor and City Clerk to execute the
amendment on behalf of the City; and 2) Authorized the appropriation of $30,000 from
Park Development — Quimby Fees (511) unreserved fund balance to account number
511.7021.56015.20266 (Park Video Surveillance & Security).
3.11 Approval of the Fifth Amendment, Third Extension to Agreement with Conduent
State and Local Solutions, Inc. for Information Technology Services. (A2100.0; AGR -
5700.5)
NOTE: Mayor pro tem Murphy recorded an abstention due to a potential conflict with
employment.
ACTION: Approved the Fifth Amendment to the Information Technology Services
Agreement with Conduent State and Local Solutions, Inc., extending the Agreement for
one year commencing July 1, 2018, and terminating on June 30, 2019, and authorized the
Mayor to execute the Amendment.
3.12 Approval of plans and specifications for Annual Sewer Line Cleaning and CCTV
Video Inspection, Bid No. 178 -38; and authorization to advertise for bids.
(C2500.M.3)
ACTION: Approved plans and bid specifications and authorized advertising for bids for
the Annual Sewer Line Cleaning and CCTV Video Inspection project.
3.13 Number not used.
3.14 CLAIMS (C3200.0)
The following claim(s) have been received and investigated by the City Attorney's Office
and /or the Risk Manager. After a thorough investigation with the involved departments, it
is the recommendation of the City Attorney's Office that the claim(s) be denied.
a. Vinh T. Lam
b. Robert Anderson
c. Autumn Rochelle Martinez
ACTION: Denied Claim(s) for damages and referred to City Attorney and Claims Adjuster.
3.15 Mills Act Contract No. MAC - 268.0 -18 (Historic Property Preservation Agreement),
405 S. Grand Street. (A2100.0; AGR -6603)
ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement)
between City of Orange and the property owner for the preservation and rehabilitation of
a qualified historic property.
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