City of Piedmont
COUNCIL AGENDA REPORT
DATE: June 17, 2024
TO: Mayor and Council
FROM: Rosanna Bayon Moore, City Administrator
SUBJECT: Consideration of a Twelve-Month Extension of the Agreement with Computer Courage for Information Technology Support Services in the Amount of $385,325 per Year and Authorize the City Administrator to Execute an Amendment in Substantially the Same Form as Presented
RECOMMENDATION
Approve the Sixth Amendment to the City’s contract with Computer Courage for Information Technology (IT) Support Services, which extends the agreement by twelve months at an annual cost of $385,325 and authorize the City Administrator to execute an amendment in substantially the same form as presented.
BACKGROUND
In 2016, the City of Piedmont conducted a solicitation process for IT Support Services. In November of the same year, the City Council awarded a two-year, fixed price contract to Computer Courage for the provision of IT Support Services. Since that time, the City Council has approved five amendments to the term currently set to expire on June 30, 2024. The contract before the Council tonight is a twelve-month extension of the agreement with no rate increases for Fical Year 2024-25. In the current agreement, as well as the proposed extension, the City purchases a block of 1,920 support hours per year at a fixed hourly rate.
City staff have been actively working with Computer Courage to eliminate obsolete and underutilized equipment from the network. This results in a proposed decrease in the not-to exceed amount for IT Support Services, which is inclusive but not limited to monitoring, antivirus, and remote access.
In 2024-25, the City looks to engage Computer Courage to contribute technical assistance for delivery of several major projects including:
• Police Department Dispatch Center relocation project
• Compliance with FBI Criminal Justice Information System (CJIS) requirements as of December 2023 and effective in October 2024
• Implementation of technology for the new aquatics facility • Increased use of SharePoint to improve staff collaboration Most notable are increasingly complex regulatory requirements that result in thirteen specific CJIS improvement projects in 2024-25 and an estimated 965 total project hours in comparison to 535 in the prior year.
The annual totals for the referenced 2024-2025 extension are shown below, including the increase in project hours, along with the current and proposed rates for reference.
Description Hourly
Rate
No. of
Hours
Annual
Total
Current Support Rate $95 1,920 $182,400
Proposed Support Rate $95 1,920 $182,400
Current Project Rate $145 535 $77,575
Proposed Project Rate $145 965 $139,925
Current Max Support Value $67,425
Proposed Max. Support Value $60,000
Overall Current Not to Exceed Fee $329,400
Overall Proposed Not to Exceed Fee $385,325
To date, Computer Courage has provided solid service to the City of Piedmont and worked to implement many initiatives identified in the City’s Information Technology Strategic Plan.
Computer Courage has helped to modernize the City’s information technology infrastructure, make the City’s network more secure, develop Incident Response and Disaster Recovery Plans and implement improvements like Microsoft 365.
Ongoing citywide operations and reliable public services depend on modern day tools and equipment. Computer Courage provides important services to the City of Piedmont that are valued and critical for service delivery.
FISCAL IMPACT
$385,325 FY 24-25 Administration, Information Services, IT Services Budget
ATTACHMENTS
Exhibit A: Computer Courage Budget Proposal for FYE 2025 dated March 2024 Exhibit B: Proposed Sixth Amendment to Agreement with Computer Courage Existing Exhibit C: Agreement with Computer Courage with Amendment Nos.1-5 By: Tom Jakobsen, ClientFirst Technology Consulting
Agenda Report Page 2
Pricing and Contract Extension Proposal FYE 2025
City of Piedmont
March 2024
Adam Schwartz
(510) 900-3012
[email protected]
www.computercourage.com
Exhibit A Agenda Report Page 3
Budget Proposal for FYE 2025
Computer Courage proposes to extend the existing agreement with the City of Piedmont for another year, covering the City’s 2024-2025 financial year. Computer Courage proposes no price increases to hourly rates or Managed IT Services from current pricing. The contract total may need to increase given the additional project hours required to implement the new regulations on the Police Department (CJIS - Criminal Justice Information Systems).
The 2023-2024 agreement includes:
● Support Labor 1920 hours at $95 per hour $182,400
● Project Labor 535 hours at $145 per hour $77,575
● Managed IT 13 servers and 120 workstations (approx) $67,425 ● Total budget not to exceed $329,400
Our recommendation for 2024-2025 is:
● Support Labor 1920 hours at $95 per hour $182,400
● Project Labor 965 hours at $145 per hour $139,925
● Managed IT 9 servers and 110 workstations (approx) $60,000 ● Total budget not to exceed $385,325
Note that the server and workstation count have been reduced through efforts in FYE2024 to eliminate outdated technology and redundant resources. The extra project hours required this fiscal year are expected to be a non-recurring additional expense - we are targeting a project labor hours requirement for FYE2026 that is similar to FYE2024 and previous years (535 hours).
Computer Courage thanks the City for its business and its commitment to cybersecurity and regulatory requirements.
The current contract extension is attached below for reference.
Sincerely,
Adam J Schwartz
Founder and CEO, Computer Courage
[email protected]
Proposed Network Maintenance Outline | City of Piedmont | March 2023 (510) 525-2226 - [email protected] - www.computercourage.com Exhibit A Agenda Report Page 4
6TH AMENDMENT TO CONTRACT
This Sixth Amendment (“Amendment”) to the Contract, dated January 1, 2017 (“Contract”), is made and entered into on this ___ day of _______ 2024 (the “Effective Date”) by and between the City of Piedmont, a California municipal corporation (“City”), and Computer Courage, Inc., a California Corporation (“Independent Contractor”).
RECITALS
A. City and Independent Contractor entered into the Contract, dated January 1, 2017, under which Independent Contractor provides certain IT services to the City. Pursuant to its terms, the Contract was originally set to expire on January 1, 2019.
B. On or about November 5, 2018, the City previously approved the First Amendment to the Contract (the “First Amendment”), which extended the term of the Contract to January 1, 2020, and amended Exhibit A to provide for compensation terms that address the extended term of the Contract.
C. On or about December 16, 2019, the City approved the Second Amendment to the Contract (the “Second Amendment”), which extended the term of the Contract to January 1, 2021.
D. On or about December 21, 2020, the City approved the Third Amendment to the Contract (the “Third Amendment”). The Third Amendment extended the term of the Contract to June 30, 2022, amended Exhibit A to provide for compensation terms that addressed the extended term of the Contract, and provided that either party may terminate the Contract at any time without cause upon at least 90 days’ written notice.
E. On or about June 6, 2022, the City approved the Fourth Amendment to the Contract (the “Fourth Amendment”). The Fourth Amendment extended the Contract to June 30, 2023, amended Exhibit A to provide for compensation terms that address the extended term of the Contract, and updated Section 1.b of Exhibit A to include Senior Technician services F. On or about June 05, 2023, the City approved the Fifth Amendment to the Contract (the “Fifth Amendment”), which extended the term of the Contract to June 30, 2024 and (2) amended Exhibit A to provide for compensation terms that address the extended term of the Contract.
G. The parties now wish to: (1) extend the Contract to June 30, 2025, and (2) amend Exhibit A to provide for compensation terms that address the extended term of the Contract to June 30, 2025.
AGREEMENT
NOW, THEREFORE, the parties hereto agree as follows:
1. The parties agree that the Recitals set forth above are true and correct and are incorporated herein.
2. Section 5 of the Contract is hereby amended to read in its entirety as follows:
Exhibit B Agenda Report Page 5
5. Term
This Contract began on January 1, 2017, for an initial two-year term, which was extended by the parties pursuant to the First Amendment, Second Amendment, Third Amendment, Fourth Amendment, and Fifth Amendment, and has been further extended by agreement of the parties until June 30, 2025. Unless otherwise terminated as provided in this Contract, this Contract shall terminate on June 30, 2025. The term of this Contract may be extended for additional 12-month periods by mutual agreement of the parties.
3. Section 2 – Pricing of Exhibit A is hereby amended to read through Section 2.b. as follows:
2 - Pricing
The not to exceed budget for Computer Courage fees is $385,325. This agreement can only be increased from the budget amount with written approval of Computer Courage and Piedmont City Council. The budget is separated into three components, subject to possible adjustments in sections 2.a through 2.g:
1. Support labor: $182,400 based on 1920 hours
2. Project labor: $139,925 based on 965 hours
3. Managed IT Services licensing: $60,000 based on 110 workstations and 9 servers
2.a. Support Labor
Computer Courage will provide up to 1,920 hours for the year for a flat rate of $184,400.
This annual rate represents an hourly rate of $95.00.
The following terms and details apply to support labor:
• If the City uses more than 1,920 support hours in a 12 month period, additional hours will be billed at $95.00 per hour.
• If the City uses fewer than 1,920 support hours in a 12 month period, the budget is not reduced unless specifically stated in writing by Computer Courage. • Any City-approved Computer Courage staff may supply support labor in place of or in addition to the dedicated on-site technician, including Help Desk support. All staff support hours count toward the 1,920 budget.
• Computer Courage will allow for flexibility in scheduling of the primary technician, occasionally coming early or staying late for the benefit of either party's schedules.
• Computer Courage will provide monthly reporting on support labor to help guide the City toward the goal of 1,920 hours per year. • If Computer Courage provides support outside of City business hours (M-F 7:30am to 5:30pm), or for more than eight hours in a day by a single technician, this time spent will be billed at a 1.5x rate and applied to the 1,920 total. The rate goes up to 2x the rate for any individual technician hours beyond 12 in a day.
• All labor and expenses associated with attendance to the New World Systems conference will be paid for by the City at the IT Support rate, including travel time at 1/2 the IT Support rate.
Exhibit B Agenda Report Page 6
2.b. Project/Senior Technician Labor
All Project and Senior Technician labor is billed at $145.00 per hour (including Project Management). Monthly project invoices will be provided separately from the support usage reports. Computer Courage will maintain a project list and roadmap.
The City has provided an initial project timeline and 965 hour project budget.
Computer Courage will work toward these goals, proposing adjustments to the timeline and budget as needed. Computer Courage will classify labor as "Support" or "Project/Senior Technician". The full-time support person assigned to the City may be used for project work appropriate to their skills and where their time is available, which would then be taken from the 1,920 support hour budget at the IT Support rate of $95.00 per hour.
Project/Senior Technician labor is subject to the same rate multipliers for overtime and after hours as support labor.
5. Unless explicitly amended by this Amendment, all terms and provisions of the Contract shall remain in full force and effect.
CONTRACTOR CITY
Computer Courage, Inc. CITY OF PIEDMONT, a California municipal corporation
____________________________ By:
Adam Schwartz, CEO & Founder
Rosanna Bayon Moore, City
Administrator
Date: ____________________________
ATTEST:
Anna Brown, City Clerk
APPROVED AS TO FORM:
Michelle Marchetta Kenyon, City Attorney
Deepa Sharma, Assistant City Attorney
Exhibit B Agenda Report Page 7
CONTRACT
This contract made Iii jz.or7 ("Effective Date"), between the City of Piedmont, California, a municipal corporation, 120 Vista Avenue, Piedmont, California 94611, ("City") and Computer Courage, ("Independent Contractor" or "Computer Courage").
1. City is a municipal corporation which needs certain services and software as more specifically set forth hereafter.
2. Independent Contractor agrees to provide these services and software to the City under the terms and conditions set forth in this Contract ("Contract").
3. Services
Independent Contractor shall provide the services as set forth in Exhibit A attached hereto and incorporated herein.
4. Compensation
City will pay the Independent Contractor the fees set forth in Exhibit A for the services described in Section 3 above. City shall issue payment as provided in Exhibit A for the services described in Section 3 above.
5. Term
This Contract shall begin on the Effective Date. Unless,otherwise terminated as provided in this Contract, this Contract shall terminate two (2) years from the Effective Date. The term of this Contract may be extended for additional 12-month periods by mutual written agreement of the parties.
6. Contractual Relationship
The parties intend that an Independent Contractor-employer relationship will be created by this Contract. City is interested only in the results to be achieved, and the conduct and control of the work will lie solely with Independent Contractor. Independent Contractor is not to be considered an agent or employee of City for any purpose, and neither Independent Contractor nor any employees oflndependent Contractor are entitled to any of the benefits that City provides for City's employees. It is understood that City does not agree to use Independent Contractor exclusively. It is further understood that Independent Contractor is free to contract for similar services to be performed for other cities, persons or entities while it is under Contract with City.
Independent Contractor shall be fully responsible for all income, social security or other taxes or deductions, including but not limited to worker's compensation and unemployment deductions, relating to the services it performs for City. 1 Exhibit C Agenda Report Page 8
7. Indemnity and Hold Harmless
a. To the fullest extent permitted by law and subject to the limitations on liability in this Section 7 below, Independent Contractor shall defend (with legal counsel reasonably acceptable to City), indemnify and hold harmless City and its officers, elected officials, employees, agents, and volunteers (collectively "Indemnitees") from and against any and all claims, loss, cost, damage, injury (including, without limitation, injury to or death of an employee of Independent Contractor or its subconsultants), expense and liability of every kind, nature and description (including, without limitation, fines, penalties, incidental and consequential damages, reasonable court costs and attorneys' fees, litigation expenses and fees of expert consultants or expert witnesses incurred in connection therewith, and costs of investigation), to the extent the same arises out of, are a consequence of, or are in any way attributable to, in whole or in part, the intentional misconduct or negligent performance of this Contact by Independent Contractor or by any individual or entity for whom Independent Contractor is legally liable, including but not limited to, officers, agents, employees, subcontractors or consultants ofIndependent Contractor. Neither termination of this Contractor nor completion ofthe Services shall release Independent Contractor from its obligations under this Section 7, as long as the event giving rise to the claim, loss, cost, damage, injury, expense or liability occurred prior to the effective date of any such termination or completion. b. All IT Support Labor, IT Project Services, Managed IT Services, and IT Management Services, as those terms are defined in Exhibit A, provided by Computer Courage will be performed in a professional and workmanlike manner, consistent with industry standards.
c. ALL EQUIPMENT PROVIDED BY COMPUTER COURAGE UNDER THIS AGREEMENT IS PROVIDED ON AN "AS IS" BASIS WITHOUT
WARRANTY OF ANY KIND, ASIDE FROM ANY WARRANTY
PROVIDED BY THE MANUFACTURER OF THE EQUIPMENT, AND
COMPUTER COURAGE MAKES NO WARRANTIES OR CONDITIONS OF
ANY KIND, EXPRESS, IMPLIED OR STATUTORY, RELATED TO OR
ARISING IN ANY WAY OUT OF THE EQUIPMENT. COMPUTER
COURAGE SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTY OF
MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A
PARTICULAR PURPOSE. IN NO EVENT SHALL COMPUTER COURAGE
BE LIABLE FOR INDIRECT, CONSEQUENTIAL, INCIDENTAL,
PUNITIVE, OR SPECIAL DAMAGES (INCLUDING, BUT NOT LIMITED
TO, DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS
INTERRUPTION, DELAYS, LOSS OF DATA AND THE LIKE) ARISING
OUT OF THE USE, OR THE INABILITY TO USE, OR ANY DEFECTS IN 2 Exhibit C Agenda Report Page 9
EQUIPMENT, REGARDLESS OF WHETHER SUCH LIABILITY IS BASED
ON BREACH OF CONTRACT, TORT, FAILURE OF ESSENTIAL PURPOSE
OR OTHERWISE AND EVEN IF COMPUTER COURAGE HAS BEEN
ADVISED OF THE POSSmILITY OF SUCH DAMAGES, EXCEPT WITH
RESPECT TO COMPUTER COURAGE'S INDEMNITY OBLIGATIONS
UNDER SECTION 7(A) ABOVE.
d. WITHOUT LIMITING THE ABOVE, COMPUTER COURAGE'S TOTAL
CUMULATIVE LIABILITY UNDER THIS AGREEMENT OR ARISING
FROM THE SERVICES, INCLUDING INDEMNITY OBLIGATIONS,
SHALL NOT EXCEED THE GREATER OF: (I) THE TOTAL AMOUNT OF
FEES ACTUALLY PAID TO COMPUTER COURAGE BY CLIENT UNDER
THIS AGREEMENT DURING THE 12 MONTHS PRECEDING ANY CLAIM OR (II) THE TOTAL AMOUNT OF COMPUTER COURAGE, INC.'S
APPLICABLE INSURANCE COVERAGE. AS USED IN THIS SECTION 5, "COMPUTER COURAGE" INCLUDES COMPUTER COURAGE, INC., ITS
AFFILIATES, SUBCONTRACTORS, AND THEIR RESPECTIVE
PARTNERS, OFFICERS, DIRECTORS, SHAREHOLDERS, OWNERS,
AGENTS AND EMPLOYEES.
8. Insurance
The following minimum levels of insurance coverage shall be provided during the term of this Contract. Prior to the execution of the Contract, Independent Contractor shall provide proof of insurance required. Independent Contractor shall provide City 30-day prior written notice oftermination or material change in coverage and ten (10) days prior written notice of cancellation for non-payment.
The City of Piedmont, its Council Members, directors, officers, agents and employees shall be named as additional insured. Independent Contractor shall provide City with an additional insured certificate for each such insurance coverage.
A. Professional Liability Insurance. $2,000,000
B. Worker's Compensation Insurance. Statutory Limits
C. Automobile Insurance $1,000,000
C. Public Liability and Property Damage Insurance. $2,000,000 (single limit per occurrence)
Independent Contractor shall notify City within five (5) business days after it has been served or notified of any claim or legal action that in any way involves Independent Contractor, and the City of Piedmont, even if the City is not named in the claim or as a 3 Exhibit C Agenda Report Page 10
defendant in any legal action, if such notification comes to Independent Contractor from any source other than the City. Independent Contractor shall also promptly provide City, within the same time period set forth in the prior sentence, with copies of any document or information it has regarding such claim or legal action.
9. Assignability
Independent Contractor shall not assign, delegate, or transfer any interest in this agreement nor the performance of any Independent Contractor's obligations hereunder, without the prior written consent ofthe City.
10. Miscellaneous
As used in this Contract, the masculine, feminine or neuter gender, and the singular or plural number, shall each be deemed to include the others whenever the context so indicates.
11. Notices
Any notices to be sent pursuant to this Contract shall be given in writing, via facsimile and concurrently by prepaid U.S. certified or registered postage addressed to City at 120 Vista Avenue, Piedmont, California 94611, and to Independent Contractor at 6550 Vallejo Street. Suite 102, Emeryville, CA 94608, or at such other address as each party shall give the other in writing from time to time, and notices shall be deemed received at the time of personal delivery or three (3) working days after being placed in the United States Mail, postage prepaid, certified mail, return receipt requested.
12. Governing Law
This Contract shall be governed by the laws of the State of California. Jurisdiction and venue of litigation arising from this Agreement shall be in the County of Alameda, State of California.
13. Modification
Any modification of this Contract will be effective only if it is in writing signed by all parties to this Contract.
14. Time is of the Essence
Time is of the essence in the performance ofthis Contract.
15. Termination
4 Exhibit C Agenda Report Page 11
The following provisions shall govern termination under this Contract:
a. Either party may terminate this Contract for cause as follows:
(1) The party electing to terminate shall give the other party written notice of termination at least fifteen (15) days prior to the termination date, setting forth very specifically the grounds for termination, the specific provisions ofthe Contract that has been violated, and a full statement of the facts surrounding the violations(s).
(2) If the terminated party so elects, the parties shall meet promptly and make good faith efforts to resolve the violation(s) in a mutually agreeable way.
(3) If any such violation cannot be resolved by the parties at such meeting, or at any mutually agreed extension(s) of such meeting, and if such violation is not otherwise remedied or cured by the defaulting party within the fifteen day notice period, the termination shall proceed. (4) If the violation(s) have not been resolved, the terminating party may proceed with termination, and with retaining other person(s) or entities to provide services, if the terminating party is the City. b. Either party may terminate the Contract at any time without cause upon at least sixty (60) days prior written notice to the other party. In the event of any such termination by City, Independent Contractor shall be paid for services actually performed through the date of termination, and Contractor's work shall be immediately discontinued as of that date, except that City may elect, at City's option, to have Independent Contractor complete one or more projects or specific activities which are then in progress, in which case Independent Contractor shall be paid for such services until completion. If terminated by Independent Contractor, any assignment accepted by Independent Contractor prior to the notice oftermination shall be completed if desired by City.
16. Equal Opportunity
Independent Contractor shall insure that its policies and practices provide equal opportunity to all applicants and employees without regard to race, color, creed, gender , age, religion, national origin, sexual preference, gender identity, marital status, disability, Acquired Immune Deficiency Syndrome (AIDS), AIDS-Related Complex (ARC) and in addition, Independent Contractor must comply with the Americans with Disabilities Act.
17. Compliance with Laws
5 Exhibit C Agenda Report Page 12
Independent Contractor shall use the standard of care in its profession to comply with all applicable federal, state, and local laws, codes, ordinances, and regUlations.
Independent Contractor represents and warrants to City that it has and shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Contract any licenses, permits, insurance and approvals which are legally required for Independent Contractor to practice its profession.
18. Entire Agreement
This Contract constitutes the entire agreement of the parties, and supersedes all prior understandings and agreements between them, with respect to the matters set forth herein. Any amendments, modifications, or changes to this Agreement shall be in writing and signed by both parties. In the event of a conflict between the terms set forth in this Contract and the terms set forth in any exhibit to this Contract, the terms of this Contract shall govern over the terms of any exhibit.
IN WITNESS WHEREOF, the parties have executed this Contract at Piedmont, California, the day and year first above written.
CITY OF PIEDMONT:
By:
Attest:
Miche e Marchetta Kenyon, City Attorney
Chad Herrington, Assistant City Attorney
COMPUTER COURAGE:
By:
6 Exhibit C Agenda Report Page 13
EXHIBIT A
SERVICES
1 - Services Provided
Computer Courage will provide the following services to the City of Piedmont:
1. IT Support Services
2. IT Project Services
3. Managed IT Services
4. IT Management Services
l.a. IT Support labor
Computer Courage will supply one full time support technician to work at the City of Piedmont offices. Computer Courage will assign a primary dedicated technician, and will fill in any time they miss with other support technicians. Computer Courage also will provide on demand remote help desk support as needed.
Support labor can be used for user support, desktop or server maintenance, troubleshooting, equipment setups, cloud service management, and basic network maintenance. Support labor can be applied to other services such as Project Services where reasonable and mutually agreed upon.
After hours support will be made available to the City on demand via a list of technician and manager cell phone numbers. If the City needs support for outages affecting critical city services after hours, they can follow the list and protocol, and Computer Courage will respond to requests for after hours support within 1 hour and arrive on-site (if needed) within two hours. Critical outages are defined as an emergency situation in which a system failure causes a work stoppage and no work-around exists, public safety is impacted, revenue is impacted, or data is corrupted.
The primary support technician will attend the annual New World Systems conference.
The primary support technician will work a target of7.5 hours per workday at the City to meet City's support needs and budget. However, the City's business hours are 10 hours per day. The Computer Courage help desk is available from 9am to 5:30pm, Monday through Friday excluding holidays to provide support when the primary technician is not available.
1.b. IT Project Services
Computer Courage will provide IT Project labor to assist the City in completing IT projects that lie outside of the scope of support services. The RFP and Strategic Plan identify a number of projects, and others may be identified and suggested by either party. Most IT Project labor will be performed by Computer Courage Senior Technicians or Network Engineers. Some requested projects may be outside of our scope of services, and require the City to hire a 3rd party vendor.
For each IT Project, the City and Computer Courage will agree upon a scope of work and estimated number of project and IT Support hours for the services before project commencement.
7 Exhibit C Agenda Report Page 14
l.c. Managed IT Services
Computer Courage will provide Managed IT Services to the City to achieve stability, security, and efficiency in IT services. At a high level, Managed IT Services includes:
1. Software and labor to manage and monitor workstations and servers
2. Antivirus, antimalware, and patch management software
3. Help desk ticketing solution to manage and track tickets and projects
4. IT Documentation service (direct access provided to City managers) A detailed list of services included in and excluded from Managed IT Services appears Section 3 of this Exhibit.
l.d. IT Management Services
Computer Courage Managers, led by Adam Schwartz, will provide IT Management to the City of Piedmont. Services include:
1. Initial IT Assessment and Report
2. Service management, quality control, and escalation
3. Monthly participation in IT Steering Committee meeting (with prepared reports)
4. Reporting from ticketing, documentation, and RMM tools
5. Semiannual IT Review report and meeting
6. Hours tracking, reporting, and invoicing
7. Participation in the City's annual IT budget process
8. Assistance with IT work load prioritization for Computer Courage staff 2 - Pricing
For the first two years, the annual not to exceed budget for Computer Courage fees is $260,000 per 12 month period. This agreement can only be increased from the budget amount with written approval of Computer Courage and Piedmont City Council. The budget is separated into three components, subject to possible adjustments in sections 2a through 2g:
1. Support labor: $150,000 per year based on 1920 hours
2. Project labor: $65,000 per year based on 535 hours
3. Managed IT Services licensing: $45,060 per year based on 63 workstations and 31 servers
2.a. Support Labor
Computer Courage will provide up to 1920 hours for the year for a flat annual rate of $150,000.
This annual rate represents an hourly rate of$78.12.
The following terms and details apply to support labor:
• If the City uses more than 1920 support hours in a 12 month period, additional hours will be billed at $78.12 per hour.
• If the City uses fewer than 1920 support hours in a 12 month period, the budget is not reduced unless specifically stated in writing by Computer Courage. 8 Exhibit C Agenda Report Page 15
• Any City-approved Computer Courage staff may supply support labor in place of or in addition to the dedicated on-site technician, including Help Desk support. All staff support hours count toward the 1920 budget.
• Computer Courage will allow for flexibility in scheduling of the primary technician, occasionally coming early or staying late for the benefit of either party's schedules. • Computer Courage will provide monthly reporting on support labor to help guide the City toward the goal of 1920 hours per year.
• If Computer Courage provides support outside of City business hours (M-Fri 7:30am to 5:30pm), or for more than eight hours in a day by a single technician, this time spent will be billed at a 1.5x rate and applied to the 1920 total. The rate goes up to 2x the rate for any individual technician hours beyond 12 in a day.
• All labor and expenses associated with attendance to the New World Systems conference will be paid for by the City at the IT Support rate, including travel time at Y2 the IT Support rate.
2.b. Project Labor
All project labor is billed at $121.50 per hour (including Project Management). Monthly project invoices will be provided separately from the support usage reports. Computer Courage will maintain a project list and roadmap.
The City has provided an initial project timeline and 535 hour project budget for each of the first two years. We will work toward these goals, proposing adjustments to the timeline and budget as needed.
Computer Courage will classify labor as "support" or "project". The full-time support person assigned to the City may be used for project work appropriate to their skills and where their time is available, which would then be taken from the 1920 support hour budget at the IT Support rate of$78.12 per hour.
Project labor is subject to the same rate multipliers for overtime and after hours as support labor.
2.c. Managed IT Services
Managed IT Services are required for all workstations and servers unless specifically agreed to be excluded by the City and Computer Courage. Managed IT Services are billed on a per-device basis as follows:
• $35 per month per workstation
• $50 per month per server
This monthly fee covers included licensing and labor (detailed in Section 3 ofthe Exhibit).
Approximately 50% of the fees pay for licensing costs, and 50% pay for included labor.
The City and Computer Courage have agreed to exclude the Police Department computers from Managed IT Services, at least temporarily, while cns security regulations are considered. These excluded machines will not be billed under Managed IT Services until a time at which they are covered through mutual agreement of the City and Computer Courage. 9 Exhibit C Agenda Report Page 16
At the current count of63 workstations and 31 servers, the monthly fee comes to $3,755, which is an annual budget of $45,060. This count includes Police Department machines, which mayor may not ultimately be enrolled and billed. The actual annual budget may be more or less depending on the count of workstations and servers each month.
2.d. IT Management Labor
Management labor (as defined in Section 1) is not billable. Management labor outside ofthe scope listed in Section 1 may be classified as billable Project labor.
2.e. Reimbursements
The City will reimburse Computer Courage for reasonable out of pocket expenses required to perform support or project labor, or for travel outside of the Alameda County. Computer Courage will request approval for any reimbursement over $250. All expenses will be at cost with no markup or administrative handling fees.
2.f. Exclusions
Unless specifically agreed upon in writing, Computer Courage's fees do not include any licensing for software or cloud services beyond what is included in the Managed IT Services plan or used as an internal tool by Computer Courage.
This proposal does not include the Application Support Specialist project from the City's IT Master Plan, though Computer Courage is available to help with Specialist selection, oversight, and support.
This proposal does not include any hardware, though we have a California Resellers Permit and can resell hardware or software if required.
Our Managed IT Services does not include network monitoring features requested by the City (such as What's Up Gold). We will implement network monitoring as ~roject rather than as part of the Managed IT Services plan. Licensing fees for this or other 3 party tools not included in Managed IT Services will be paid for by the City.
This proposal does not include Web Development services. Computer Courage's Web Development department is prepared to provide a separate proposal for maintenance, management, security, and development of the current andlor future website(s) for the City.
2.g. Billing Protocol
Hourly work will be accounted in 15 minute increments with a one-hour minimum for on-site visits and no travel charge in Alameda County. Hourly rates are determined by work type (support, project, or Managed IT), not by the position of the staff person performing the work.
At the start of each month Computer Courage will invoice the City for flat rate charges (support and Managed IT) for the current month and additional charges (project labor, support overages, Managed IT overages, and reimbursements) from the previous month. 10 Exhibit C Agenda Report Page 17
Managed IT Services will be billed based on the count of workstations and servers at the start of each month. If servers or workstations are added or removed mid-month, a prorated fee or credit will be applied to the next month's invoice.
Billing term is Net 30. Computer Courage accepts check, ACH, and all major credit cards. Some or all of the monthly invoice can be placed on auto-charge to ACH or credit card.
3. Managed IT Services Details
The following services are provided flat-rate within the Managed IT Services fees:
Monitoring, Alerting, and Maintenance
[{I RMM agent software installed onto the included computers [{I Monitor server uptime, and initial response to an alert if server goes offline [{I Monitor server backups, and initial response to an alert if a backup fails [{I Monitor alerts for hardware, software, error logs, and system health [{I Perform patch management on operating systems and select 3rd party applications Security and Antivirus
[{I Antivirus software licensing, policy, reporting, alerting, and response [{I Antimalware software licensing, policy, reporting, alerting, and response [{I Monitor and respond to security issues such as failed logins and vulnerabilities Reporting & Documentation
[{I Use of our IT Documentation system and configuration [{I Access to Computer Courage Help Desk, ticketing, and service reporting system [{I Semiannual IT Report on service, systems, warranty, and network Remote Access
[{I Licensing and access for Computer Courage and City to covered machines for a remote desktop access tool such as LogMeIn Pro
All other service labor is excluded from the Managed IT Services fees and counted as support or project labor. Examples of excluded labor: server repair, on-site labor, user support, networking, hardware repair, replacement, and upgrades, application support, server migrations or setups, disaster recovery, office moves, backup restores, cloud service configuration, and training.
It can sometimes be difficult to immediately identify which labor is included or excluded under Managed IT Services. Below are some examples to help make the distinction:
1. Alerts are monitored by our main office. The office's monitoring and initial response labor is included.
2. Time spent by our support staff handling issues identified by monitoring is not included.
For example, if monitoring identified a bad hard drive, the initial response is included but the replacement or troubleshooting ofthe drive are not.
3. Time spent maintaining or troubleshooting Managed IT software is included.
4. Managerial time spent supervising Managed IT is included. 11 Exhibit C Agenda Report Page 18
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5. All on-site labor is excluded.
Computer Courage management will be available to review invoices and hours accounting and provide clarification on labor classification as needed.
4. Background Checks
Computer Courage agrees to allow the City to perform background checks on all Computer Courage staffwho will or likely will have contact with the City IT systems. 12 Exhibit C Agenda Report Page 19
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Exhibit C Agenda Report Page 37
Exhibit C Agenda Report Page 38