2020-22 Acorn Technology Services - Amendment 2 - IT Maintenance & SupportMEMORANDUM
DATE:
TO:
FROM:
RE:
Please list the Contracting Party / Vendor Name, type of agreement to be executed, including 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 ___________________________________________
___ City Manager’s signing authority provided under the City’s Purchasing Police
[Resolution No. 2019-021] for budget expenditures of $50,000 or less.
___ Department Director’s or Manager’s signing authority provided under the City’s
Purchasing Policy [Resolution No. 2019-021] for budget expenditures of $15,000 and
$5,000, respectively, or less.
Procurement Method (one must apply):
___ Bid ___ RFP ___ RFQ ___ 3 written informal bids
___ Sole Source ___ Select Source ___ Cooperative Procurement
Requesting department shall check and attach the items below as appropriate:
___ Agreement payment will be charged to Account No.: _____________________
___ Agreement term: Start Date ________________ End Date ________________
___ Amount of Agreement, Amendment, Change Order, etc.: $____________________
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: ______________________________ Date: _______________
___ Bonds (originals)as required by the Agreement (Performance, Payment, etc.)
___ Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s)
NOTE: 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)
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AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES
WITH ACORN TECHNOLOGY SERVICES
This Amendment No. 2 to Agreement for Contract Services Acorn
Technology Services (“Amendment No. 2”) is made and entered into as of the
____ day of May 2021 (“Effective Date”) by and between the CITY OF LA
QUINTA (“City”), a California municipal corporation, and ACORN TECHNOLOGY
SERVICES (“Contracting Party”).
RECITALS
WHEREAS, on or about July 9, 2019, City entered into an Agreement for
Contract Services (“Agreement”) with Contracting Party to provide information
technology services to the City. The term of the Agreement Expires June 30th,
2023;
WHEREAS, on or about April 7, 2020, City amended the Agreement with
Contracting Party as Amendment No. 1 to provide additional information
technology services for fiscal year 2019/20; and
WHEREAS, all other Sections and Exhibits of the Agreement remain
unchanged except section 2.1 as written below; and
WHEREAS, the total Agreement amount, Section 2.1 “Contract Sum,” is
hereby amended to an amount not to exceed Four Hundred Twenty Thousand
Dollars ($420,000) for all remaining years to provide additional information
technology services; and
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 2.1- Contract Sum is amended to read as follows:
Section 2.1 – Contract Sum. For the Services rendered pursuant to this
Agreement, Contracting Party Shall be compensated in accordance with
Exhibit “B” (the “Schedule of Compensation”) in a total amount not to exceed
18
Exhibit B
Schedule of Compensation
Monthly Recurring Charges
Year 1: $24,910 per month ($298,920 annually), not-to-exceed
$420,000 annually pending special projects*
Year 2 and 3: $24,910 per month ($298,920 annually), not-to-exceed
$420,000 annually pending special projects*
Optional Years 4 and 5: $26,155 per month ($313,866 annually), not-
to-exceed $420,000 annually pending any special projects*
*Special Projects include IT staffing for City Council, Housing Authority,
and various City Boards and Commissions meetings. IT infrastructure
upgrades, assessments, security scans, various after hour calls, and projects
outside the scope of normal working hours.
The following are considered project outside the scope of the initial proposal
and can be performed by an onsite technician for the following rates:
x Deployment of new computers: $300.00
x Deployment of new servers: $2,500.000
x Installation of new VPN: $75.00
Additional devices can be added to the support agreement at the following
monthly recurring rates:
x $50.00 per Computer
x $150.00 per Server
x $150.00 per Network
x $5.00 per Phone
The following are hourly rates charges for other services not performed by an
on-site technician that are not covered in the flat rate services:
x Tier 1 Technician (TSR1) $90.00/hour
x Tier 2 Technician (TSR2) $110.00/hour
x Tier 3 Technician (TSR3) $125.00/hour
City of La Quinta
CITY COUNCIL MEETING: May 18, 2021
STAFF REPORT
AGENDA TITLE: APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR
CONTRACT SERVICES WITH ACORN TECHNOLOGY SERVICES FOR
INFORMATION TECHNOLOGY SERVICES
RECOMMENDATION
Approve Amendment No. 2 to Agreement for Contract Services with Acorn
Technology Services to amend Section 2.1 - Contract Sum, not to exceed
$420,000 for the current fiscal year and subsequent contract term years; and
authorize the City Manager to execute the amendment.
EXECUTIVE SUMMARY
x In July 2019, the City entered into an Agreement for Contract Services
(Agreement) with Acorn Technology Services (Acorn) for information
technology services.
x Since the Agreement's commencement, Acorn has been tasked with
completing various high-priority special projects and improving the
City's technology security profile.
x In April 2020, the City approved Amendment No. 1 for upgrades of
equipment to enable remote work due to COVID-19 impacts.
x Amendment No. 2 (Amendment) (Attachment 1) includes an additional
$90,000 to the contract for this fiscal year and increasing the contract
for the same amount per year for the remainder of the contract term.
The additional fees include the initial procurement of security software
and associated costs for yearly renewals and maintenance of the
program.
FISCAL IMPACT
This Amendment will increase the annual fee to a not to exceed amount of
$420,000 per year or $1,260,000 (for the remainder of the initial three (3)
year term, years 2 and 3), and would include the additional two (2) year term,
should City exercise option to renew, for a total not to exceed amount of
BUSINESS SESSION ITEM NO.
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$2,100,000. Funds are available in the Information Technology budget (502-
0000-60104, Consultants).
Total Not-To-Exceed Amount
2019/20 (Modified w/ Amendment No. 1) $ 420,000
2020/21 (Proposed w/ Amendment No. 2) 420,000
2021/22 (Proposed w/ Amendment No. 2) 420,000
Total Initial Term $ 1,260,000
2022/23 (Proposed w/ Amendment No. 2) $ 420,000
2023/24 (Proposed w/ Amendment No. 2) 420,000
Total w/ Two (2) Year Extension $ 2,100,000
BACKGROUND/ANALYSIS
The City entered into an agreement with Acorn in July 2019. As part of Acorn's
contracted services, they have been able to successfully overhaul the City's
aging IT infrastructure to a reliable and robust network that has allowed for a
seamless transition to a remote workforce while also allowing for additional
cost savings from relocating the City's cloud storage to a hosted environment
of servers for the majority of the City's IT needs.
To further capitalize on this movement, the City tasked Acorn with improving
our security profile by procuring equipment that would act as a security
monitoring system that works 24/7 and would alert staff to isolate any
machine on the network detected to have a breach.
This enhanced security initiative has already provided great results. A security
breach was detected three business days prior to Microsoft acknowledging and
providing an official statement. Upon detection of the breach Acorn applied
security patches that enabled the City to maintain system integrity.
The increased contract amount includes added costs for special projects,
increased number of servers Acorn provides oversight for, and procurement,
yearly subscription, and maintenance fees for the cybersecurity suite
purchased to protect the City's system. This Amendment reflects those
associated costs.
ALTERNATIVES
Council could elect not to approve this Amendment or change the scope of
services that Acorn provides.
Prepared by: Doug Kinley III, Management Specialist
Approved by: Jon McMillen, City Manager
Attachment: 1. Amendment No. 2 to Agreement for Contract Services
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