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HomeMy WebLinkAbout2026-27 SynTech Group, Inc - Managed IT Services - Amend 1MEMORANDUM DATE: 7/29/2026 TO: Jon McMillen, City Manager FROM: Doug Kinley, Senior Management Analyst Cv �Cv CALIFORNIA - RE: Syntech Group, Inc. Amendment No. 1 - Managed IT Services FY 2026/27 Please list the Contracting Party/ Vendor Name, any change orders or amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name. Authority to execute this agreement is based upon: ❑✓ Approved by City Council on ,July 21, 2026 C12 City Manager's signing authority provided under the City's Purchasing & Contracting Policy [Resolution No. 2023-008] for budget expenditures of $50,000 or less. City Manager's signing authority provided under the City's Personnel Policy Section 3.2 for temporary employment positions. Department Director's or Manager's signing authority provided under the City's Purchasing Policy [Resolution No. 2023-008] for budget expenditures of $15,000 and $5,000, respectively, or less. Procurement Method (one must apply): Bid RFP 0 RFQ 3 written informal bids F1Sole Source ❑✓ Select Source Cooperative Procurement Requesting department shall check and attach the items below as appropriate: ❑✓ Agreement payment will be charged to Account No.: 502-0000-60104 (Consultants) 0 Agreement term: Start Date 06/01 /2026 End Date 06/30/2027 FVIAmount of Agreement, Amendment, Change Order, etc.: $ 66,000 (Total NTE $707,000) REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount, not individual Amendments or Change Orders! Insurance certificates as required by the Agreement for Risk Manager approval Approved by: Oscar Mojica (in -House) Date: 7/29/26 NOTE: Bonds (originals) as required by the Agreement (Performance, Payment, etc.) Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s) Review the "Form 700 Disclosure for Consultants" guidance to determine if a Form 700 is required pursuant FPPC regulation 18701(2) Business License No. Expires: Requisition for a Purchase Order has been prepared (Agreements over $5,000) AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH SYNTECH GROUP, INC. This Amendment No. 1 ("Amendment 1") to Agreement for Contract Services ("Agreement") is made and entered into as of the 22nd day of July, 2026, ("Effective Date") by and between the City of La Quinta ("City"), a California Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 78495 Calle Tampico, La Quinta, California 92253, and Syntech Group, Inc. ("Contracting Party"), an S-Corp with its principal place of business at 9300 Santa Anita Ave, Suite 102, Rancho Cucamonga, CA 91730. RECITALS WHEREAS, on or about June 1, 2026, the City and Vendor entered into an Agreement to provide Managed IT Services, for a total not to exceed amount of $641,000. The term of the Agreement expires on June 30, 2027 ("Initial Term"); and WHEREAS, the City and Contracting Party mutually agree to amend Section 1.1 Scope of Services and related Exhibit A of the Agreement to include services related to onsite and offsite backup for servers; and WHEREAS, the City and Contracting Party mutually agree to amend Section 2.1 Contract Sum and related Exhibit B of the Agreement to increase the total not to exceed compensation amount by $66,000 for fiscal year 2026/27, for a grand total of $707,000 from $641,000, for the additional services listed above for the Agreement Term. NOW THEREFORE, in consideration of the mutual covenant herein contained, the parties agree as follows: AMENDMENT In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: 1. Section 1.1 Scope of Services is amended to read as follows: 1.1 Scope of Services. In Compliance with all terms and conditions of this Agreement, Contracting Party shall provide those services related to Managed IT Services, including onsite and offsite backup for servers, as specified in the "Scope of Services" attached hereto as "Exhibit A" and incorporated herein by this reference (the "Services"). Contracting Party represents and warrants that Contracting Party is a provider of first-class work and/or services and Contracting Party is experienced in performing the Services contemplated herein and, in light of such status and experience, Contracting Party covenants that it shall follow industry standards in performing the Services required hereunder, and that all materials, if any, will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase "industry standards" shall mean those standards of practice recognized by one or more first-class performing similar services under similar circumstances. 2. "Exhibit A" — Scope of Services is amended to include the original services listed under Exhibit A of the Agreement and the additional services detailed in this Exhibit A, attached to this Amendment No. 1, and incorporated herein by this reference. 3. Section 2.1 Contract Sum is amended to read as follows: 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with the following revised "Exhibit B" (the "Schedule of Compensation") in a total amount not to exceed Seven Hundred Seven Thousand Dollars ($707,000), for the life of the Agreement (the "Contract Sum"), except as provided in Section 1.7. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the Services, payment for time and materials based upon Contracting Party's rate schedule, but not exceeding the Contract Sum, or such other reasonable methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contracting Party at all project meetings reasonably deemed necessary by City; Contracting Party shall not be entitled to any additional compensation for attending said meetings. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. Regardless of the method of compensation set forth in the Schedule of Compensation, Contracting Party's overall compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of this Agreement. 4. "Exhibit B" — Schedule of Compensation is amended as listed in "Exhibit B," attached hereto and incorporated herein by this reference. In all other respects, the original Agreement shall remain in effect. IN WITNESS WHEREOF, the City and Contracting Party have executed this Amendment No. 1 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation J� JON ILLEN, City Manager '-ETfy of La Quinta, California Dated: --7/7-1 ',70 2, 6 ATTEST: �4 MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: i WILLIAM H. IHRKE, City Attorney City of La Quinta, California SYNTECH GROUP, INC. a California S-corporation SIGNED IN COUNTERPART KATHERINE WETHERBEE President Business Development Dated: IN WITNESS WHEREOF, the City and Contracting Party have executed this Amendment No. 1 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation SIGNED IN COUNTERPART JON McMILLEN, City Manager City of La Quinta, California Dated: ATTEST: SIGNED IN COUNTERPART MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: SIGNED IN COUNTERPART WILLIAM H. IHRKE, City Attorney City of La Quinta, California SYNTECH GROUP, INC. a California S-corporation KATHERINE WETHERBEE President Business Development Dated: % 6 Exhibit A Scope of Services +i-��.. aw 4w AP SOW for Agreement to Perform Consulting Services for City of La Quinta Date: 6/22/2026 Services Performed By: Syntech Group Services Performed For: City of La Quinta Overview Syntech recommends the addition of a fully managed Server Backup service tier to the City of La Quinta's existing managed services contract. This service operates continuously in the background, monitored and managed by our team, with no operational burden placed on City staff. The service includes two core components: Onsite Backup (100 TB Capacity) • A local backup repository sized at 100 TB ensures that recovery from common failure scenarios, including ransomware, hardware failure, or accidental deletion, can be completed quickly without relying on an internet connection. Onsite backups support fast recovery time objectives (RTO) and are the first line of defense in any disaster recovery scenario. Offsite Backup (Unlimited Data) • All backed -up data is also replicated to a secure, geographically separate offsite location with no data cap. Offsite backups protect against scenarios where onsite infrastructure is unavailable, including physical damage to the data center, theft, or a site -wide disaster. Unlimited offsite capacity ensures the City is never forced to make tradeoffs about what to protect. Investment Summary This amendment adds the following to the City of La Quinta's existing managed services agreement: Onsite Backup (Managed) Offsite Backup (Managed) Total Monthly Investment 100 TB Unlimited $6,000.00 Pricing is in accordance with the City of La Quinta's existing Master Services Agreement with Syntech Group. This service requires 30 days written notice to cancel, consistent with the terms of your MSA. Agreement Terms Document Type Effective Date Cancellation Notice Billing Frequency Governing Agreement Next Steps Contract Amendment to Existing MSA Upon execution by both parties 30 days written notice required Monthly, per existing MSA billing schedule City of La Quinta Master Services Agreement with Syntech Group Moving forward is straightforward. We recommend the following: • Syntech will schedule a kickoff and begin onboarding within 1 business days of execution Exhibit B Schedule of Compensation For the avoidance of doubt, the compensation thresholds on this Exhibit B do not include compensation for Additional Services (if any) authorized pursuant to Section 1.7 and compensated pursuant to Section 2.3 of this Agreement. Contract Sum Compensation for Services shall not exceed the following Contract Sum for the entire life of this Agreement, including the Initial and Extended terms: Seven Hundred Seven Thousand Dollars ($707,000), to be paid for duly authorized Services performed consistent with the terms and conditions of this Agreement. The Contract Sum shall be paid to Contracting Party in installment payments made on a monthly basis and in an amount identified in Contracting Party's schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement. MANAGED IT SERVICES Fiscal Year FY Cost Original Agreement FY 2025/26 — June 2026 $ 46,712 FY 2026/27 $ 560,544 Amendment 1 FY 2026/27 — onsite and offsite backup for servers $ 66,000 Contingency (equipment, software, etc.) $ 33,744 Total $ 707,000 City of La Quinta CITY COUNCIL MEETIN( July 21, 2026 STAFF REPORT CONSENT CALENDAR ITEM NO. 12 AGENDA TITLE: APPROPRIATE ADDITIONAL FUNDING AND APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH SYNTECH GROUP, INC FOR MANAGED INFORMATION TECHNOLOGY SERVICES ,FrOMMENnATION Appropriate additional funding of $66,000 in fiscal year 2026/27 and approve Amendment No. 1 to Agreement for Contract Services with Syntech Group, Inc. for Managed Information Technology (IT) to add onsite and offsite server backup services; and authorize the City Manager to execute the amendment. EXECUTIVE SUMMARY • On June 2, 2026, Council approved an Agreement for Contract Services with Syntech Group, Inc. (Syntech) for managed IT services for a total not -to -exceed amount of $641,000 through June 30, 2027. • Proposed Amendment No. 1 would add fully managed onsite and offsite server backup services beginning August 1, 2026, at $6,000 per month, for a total not -to - exceed amount of $66,000 through June 30, 2027. • If approved, this amendment would increase the total agreement amount from $641,000 to $707,000, while leaving the remainder of the agreement unchanged. FISCAL IMPACT If approved, Amendment No. 1 will increase the compensation under the agreement with Syntech by $66,000, for a total not to exceed amount to $707,000. Council approval of this item includes an appropriation from General Fund Unassigned Reserves of $66,000 to Account No. 502-0000-60104 (Consultants) in FY 2026/27 for server backup services. MANAGED IT SERVICES Fiscal Year FY Cost Original Agreement FY 2025/26 — June 2026 $ 46,712 FY 2026/27 $ 560,544 Amendment 1 FY 2026/27 — onsite and offsite backup for servers $ 66,000 (equipment, software, etc.) $ 33,744 -Contingency Total $ 707,000 121 BACKGROUND/ANALYSIS On June 2, 2026, Council approved an agreement with Syntech for managed IT services to support the City's ongoing operational and technology needs through June 30, 2027. Proposed Amendment No. 1 will modify the existing fully managed server backup service tier in order to strengthen data protection, business continuity, and disaster recovery capabilities for City operations. These services negotiated by Syntech on the City's behalf will cost less than the current agreement while providing additional data storage. This is recommended to improve the City's server backup service to include onsite backup with 100 TB capacity and offsite backup with unlimited replicated storage in a geographically separate location. The onsite component supports rapid recovery from common failure scenarios such as ransomware, hardware failure, or accidental deletion, while the offsite component provides protection against site -level incidents including physical damage, theft, or broader facility disruption. The cost for the added services is $6,000 per month beginning August 1, 2026, for a total not -to -exceed amount of $66,000 during the remaining agreement term. This represents a reduction from the City's current backup service cost of $7,000 per month, resulting in a net savings of $1,000 per month, or $11,000 over the remaining term. Approval of the amendment would revise the total contract amount from $641,000 to $707,000, with all other terms of the original agreement remaining in effect. ALTERNATIVES Staff does not recommend an alternative, as the proposed amendment adds backup and recovery services intended to enhance resilience of the City's server environment under the City's existing managed IT services contract. Prepared by: Doug Kinley, Senior Management Analyst Approved by: Gilbert Villalpando, Director of Business Unit and Housing Development Attachment: 1. Amendment No. 1 with Syntech 122