City Council Agenda Report
Meeting Date: September 16, 2025
From: Brian Saeki, City Administrator
Department: City Administration
Submitted by: Lilia Hernandez, Assistant to the City Administrator Subject
Report on Contract Extension with SDI Presence LLC Approved by the City Administrator Recommendation
Receive and file the report on Amendment No. 2 to the Agreement with SDI Presence LLC extending the agreement for one year at no additional cost, as approved by the City Administrator pursuant to Vernon Municipal Code Sections 3.32.220(B) and 3.32.110 (B)(3).
Background
On April 20, 2021, City Council approved a Services Agreement with SDI Presence LLC (SDI) for project management services for Enterprise Resource Planning (ERP) system implementation in an amount of $819,000 for three years, and on August 1, 2023, approved Amendment No.1 to the Agreement with SDI extending the agreement through August 19, 2025 for an additional $224,437.50. Upon a request from the Finance Department, on July 28, 2025, the City Administrator approved Amendment No. 2 with SDI to extend the agreement for one additional year through August 18, 2026 at no additional cost. The contract extension increased the total term of the agreement with SDI to five years.
Section 3.32.220 of the Vernon Municipal Code (VMC) provides for special good governance reform contract terms and procedures indicating that professional service contracts be rebid every three years unless found commercially unreasonable to do so. Consistent with the authority established by VMC Section 3.32.110 (B)(3), the City Administrator approved Amendment No. 2 with SDI, finding that it would be commercially unreasonable to rebid the contract.
Pursuant to the aforementioned VMC Section, the City Administrator is to provide a written report to City Council detailing the reasons for making such findings. The City Administrator’s determination was based on the ERP system implementation having been a significant and ongoing project necessitating continuity together with SDI’s assistance for ERP implementations through completion of the project. Currently, SDI is supporting the implementation of the Environmental Health (EH) module which is expected to be completed by the end of the calendar year. Additionally, SDI’s services will be needed for the implementation of the General Revenues – Accounts Receivable/General Billing (AR/GB) module and may be needed for implementation of a Utility Billing (UB) module.
Fiscal Impact
There is no fiscal impact associated with this report as Amendment No. 2 extended the agreement at no additional cost.
Attachments
None.