1 EWM:ag A23-01938 (7/12/2023)
01547859.DOCX
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH AUTHORIZING THE CITY
MANAGER TO EXECUTE A CONTRACT, AND ANY
NECESSARY DOCUMENTS INCLUDING ANY
NECESSARY AMENDMENTS, WITH KYNDRYL
HOLDINGS, INC., OF NEW YORK, NY, WITHOUT
ADVERTISING FOR BIDS FOR THE TRANSITION OF THE
CITY’S IN-HOUSE MAINFRAME SYSTEMS TO A HOSTED
MAINFRAME SERVICE, IN AN ANNUAL AMOUNT NOT TO
EXCEED $1,841,772 AND A ONE-TIME COST OF $101,549
WHEREAS, City Council approval is requested to enter into a contract with Kyndryl Holdings, Inc., to provide hosting services for the transition of the City’s in-house mainframe systems to a hosted mainframe for City applications; and WHEREAS, in 2008, the City purchased the existing mainframe from IBM to host large enterprise systems; and
WHEREAS, today the mainframe hosts the critical applications used to manage business functions of Budget (BPREP), HR/Payroll, and Labor Distribution; and WHEREAS, the current mainframe hardware is at risk of physical failure due to its age and complexity of maintenance, as well as being out of support with IBM since 2016; and
WHEREAS, the Technology and Innovation Department (TID) has leveraged a best effort contract via a third-party company for support of the mainframe; and
WHEREAS; as part of the LBCOAST Phase 2 project, the mainframe applications and services were planned to be transitioned from the existing mainframe RES-23-0119
2 EWM:ag A23-01938 (7/12/2023)
01547859.DOCX
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
and onto more modern computing platforms; and
WHEREAS, with the LBCOAST Phase 2 project delayed for several years as discussed in a January 30, 2023 memo to City Council, stabilization of mainframe applications is a critical City priority; and
WHEREAS, it is necessary to mitigate any potential mainframe risk to ensure availability of these critical applications; and WHEREAS, after careful analysis, it was determined that the best course of action is to transition all mainframe workloads to a cloud-hosted mainframe environment rather than investing in acquiring new mainframe hardware and upgrading the applications for compatibility; and
WHEREAS, As part of the due diligence process to identify cloud-hosted mainframe solutions, TID identified three foundational requirements needed for hosting the City’s mainframe applications: 1) The new hosted environment must support the existing mainframe operating system and applications without an upgrade requirement. 2) The hosted solution must be compatible with our existing mainframe disaster recovery solution, Kyndryl. 3) The hosting partner must have the ability to supplement mainframe staffing support, if needed.
WHEREAS, a competitive procurement for these services are not feasible since there is only one provider who meets all three foundational requirements: Kyndryl Holdings, Inc. is our current disaster recovery solution provider and is uniquely positioned to meet all of the City’s foundational requirements and also able to provide enhanced value by improving the City’s disaster recovery configuration; NOW, THEREFORE, the City Council of the City of Long Beach resolves as follows:
Section 1. The above recitals are true and correct and are incorporated herein.
Section 2. The City Manager is hereby authorized to enter a contract, and any necessary documents including any necessary amendments, with Kyndryl 1 Holdings, Inc., for the transition of the City's in-house mainframe systems to a hosted 2 mainframe service, in an annual amount of One Million Five Hundred Thirty-Four 3 Thousand Eight Hundred Ten Dollars ($1,534,810), with a 20% contingency in the 4 amount of Three Hundred Six Thousand Nine Hundred Sixty-Two Dollars ($306,962), for 5 a total annual contract amount not to exceed One Million Eight Hundred Forty-One 6 Thousand Seven Hundred Seventy-Two Dollars ($1,841,772) and a one-time cost of One 7 Hundred One Thousand Five Hundred Forty-Nine Dollars ($101,549), for a period of 8 three (3) years, with the option to renew for two (2) additional one-year periods, at the 9 discretion of the City Manager.
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28 Section 3. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution.
I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of AuguSt 15 2023 by the following vote:
Ayes: Councilmembers: Zendejas, Allen, Kerr, Austin, Ricks-Oddie.
Noes: Councilmembers: None.
Absent: Councilmembers: Duggan, Supernaw, Saro, Uranga.
Recusal(s) Councilmembers: None.
~~~
\-'-o ( t-l'Dr-,\qU.-e- ·~Ga_Qcl.. • City Clerk
3 EWM:ag A23-01938 (7/12/2023)
01547859.DOCX