Report to Mayor and City Council
Tuesday, August 06, 2024
Consent
SUBJECT:
Title
CONSIDERATION OF APPROVAL OF CONTRACT AMENDMENT FOR DATA CENTER COLOCATION AND MANAGED SERVICES. (CITY COUNCIL)
Body
I. SUMMARY
Staff is seeking City Council approval to amend an existing contract with EvoDC, LLC because the vendor requested edits after City Council approved the contract for Data Center Colocation and Managed Services on April 2, 2024. The purpose of the Data Center Colocation and Managed Services is to acquire colocation space and related managed services to relocate the City’s network and server equipment into a secure and controlled environment as a component of the City’s IT Disaster Recovery Protocols.
II. RECOMMENDATION
Recommendation
1. APPROVE and RATIFY the Agreement with EvoDC, LLC for Data Center Colocation and Managed Service that was approved by City Council on April 2, 2024, for $207,628.28.
2. APPROVE Amendment No.1 to Agreement with EvoDC, LLC for Data Center Colocation and Managed Services.
3. AUTHORIZE the Mayor to execute the amendment after approval as to form by the City Attorney.
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III. ALTERNATIVES
1. TAKE another action the City Council deems appropriate.
IV. BACKGROUND
On April 2, 2024, the City Council approved an agreement with EvoDC, LLC for Data Center Colocation and Managed Services. The original contract term is five years. The City and EvoDC, LLC seek to execute Amendment No. 1 which changes a few contract terms, namely, the force majeure clause and the indemnity provisions, and addition of a limitation of liability clause.
The proposed indemnity provisions place indemnity obligations on vendor only where vendor is grossly negligent or engages in willful misconduct. However, the likelihood of vendor engaging in this level of misconduct is very minimal because the vendor will provide remote hands support for the City and many other private and public sector clients due to their staff’s professional expertise. In addition, physical and virtual security protocols including 24/7 security camera monitoring are in place. Vendor also proposes to limit its liability to the amount covering 24 months of monthly recurring revenue.
Of note, when City Council approved the agreement on April 2, 2024, the staff report inaccurately stated the contract amount was $187,925.00 instead of $207,628.28 which is the amount stated in the contract, due to an inadvertent understanding that a certain portion of the scope concerning increase in power loads for additional IT equipment, additional cross connections, and additional hours of remote hands services, was not made part of the contract when in fact, the additional scope was already part of the contract. This additional scope will support the relocation of additional City equipment to be relocated from City Hall during renovations while the City’s existing data center is unable to accommodate the equipment.
V. FISCAL IMPACT
There is no cost associated with Amendment No.1 with EvoDC,LLC. However, the total budget reflected in the original Agreement staff report and approved by Council requires an updated, increased budget by an amount not to exceed $19,703.28. The first-year annual cost for colocation, power, cross connects, and remote hands support increases $13,203.28, with a one-time installation cost of $6,500.00, for a total cost of $19,703.28 for the first year of service. The first-year costs of $19,703.28.00 are included in the current FY2024-25 Information Technology and Security budget. The City Hall renovations are scheduled to be completed within one year and thereafter the equipment associated with Amendment No.1 will be relocated back to City Hall. Therefore, there are no fiscal impacts to subsequent fiscal years.
|
Fiscal Year |
Amount |
Account Number |
|
FY2024-25 |
$19,703.28 |
101-54-520-101-6004 |
VI. EXHIBITS
1. Contract Amendment No.1 with EvoDC,LLC. (pgs. 3 - 9)
2. Contract with EvoDC,LLC approved by City Council April 2, 2024. (pgs. 10 - 55)
Prepared by: Gary Carter, Director, Information Technology&Security Department