Budget and Government Efficiency Committee Meeting - March 8, 2017
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Budget and Government Efficiency Committee Meeting - March 8, 2017
The Budget and Government Efficiency Committee of the San Diego City Council met on March 8, 2017, to review several action items related to information technology contracts, library security, financial policies, and asset naming. The committee also received an update on a Grand Jury report and discussed work plan priorities. All action items were approved and forwarded to the full City Council.
Consent Calendar
- The committee record of actions from the February 2, 2017 meeting was approved by unanimous consent.
Public Comments & Testimony
- Robert McNamara (District 3, former member of the 2015 Grand Jury) spoke on item 7 (Grand Jury report update). He commended the inclusion of language requiring contract administrators to ensure periodic updates, but recommended adding a sentence that "failing to appear may result in future funding being suspended" to serve as an enforcement mechanism.
Discussion Items
- Item 1: First Amendment to ATOS Network Services Agreement – The Department of Information Technology (CIO Jonathan Bankey and Deputy Director Sean Kilpak) presented a request for a $13.5 million increase (new not-to-exceed $79.7 million) to extend the current contract for up to 18 months during the transition to a new network services provider. The committee discussed lessons learned from the original contract, plans for a new RFP, and performance metrics. Councilmember Kate made a motion to approve, seconded by Councilmember Gomez; the motion passed unanimously.
- Item 2: First Amendment to ATOS Data Center and Help Desk Services Agreement – The same presenters requested an $11.3 million increase (new not-to-exceed $58.4 million) to account for a 13-month transition period and reach five years of steady-state services. The committee discussed contract performance, key performance indicators (e.g., customer satisfaction at 90%, first call resolution target of 65%), and the possibility of a future RFP or extension. Motion by Councilmember Kate, seconded by Councilmember Gomez; passed unanimously.
- Item 3: Amendment to Security Guard Services Contract (Library) – Library Director Misty Jones and Supervising Management Analyst Raul Gadinho presented an amendment to increase the citywide contract limit by $691,000 for FY17 and $421,000 for FY18 to cover additional security guard hours at library branches and the central library. Reasons included expanded hours, increased incidents, special events, and living wage ordinance costs. The committee noted that the actual annual increase is about $100,000, and that future budget requests will be made. Motion by Councilmember Sherman, seconded by Councilmember Gomez; passed unanimously.
- Item 4: Reserve Policy Revision – The Independent Budget Analyst (IBA) proposed companion language to the previously approved extension of the reserve goal timeline. The language directs the Mayor and Council to evaluate accelerating reserve contributions in budget surplus years. The committee discussed the need to signal long-term financial commitment. Motion by Councilmember Gomez, seconded by Councilmember Kate; forwarded to full Council for direction.
- Item 5: Biennial Update of City Debt Policy – Debt Management Director Lakshmi Komi and Debt Manager Jyoti Panthulu presented updates to the debt policy, including new state requirements (SB 1029), inclusion of enhanced infrastructure financing district bonds, and a new debt ratio metric that incorporates pension and OPEB annual costs, with a target not to exceed 25% of general fund revenues. The IBA supported the proactive transparency. Motion by Councilmember Kate, seconded by Councilmember Sherman; passed unanimously.
- Item 6: Council Policy on Naming City Assets – Executive Director of Corporate Partnerships Natasha Kalora and Deputy Director of Parks and Recreation Andy Fields presented a new policy to govern naming and renaming of city assets. The policy establishes three categories: donor acknowledgement (excluded from naming), naming without financial contribution (approved by department director after advisory group input), and naming with financial contribution (requires City Council approval). The policy includes criteria for rejecting sponsorships based on values and controversy. Motion by Councilmember Sherman, seconded by Councilmember Gomez; passed unanimously.
- Item 7: Update on 2015 Grand Jury Report – Balboa Park Celebration Lessons Learned – Assistant Chief Operating Officer Stacey Lametico provided an update on the remaining recommendation regarding enforcing reporting responsibilities in MOUs/contracts. The city will include language requiring contract administrators to ensure periodic updates to council committees. The speaker noted that the recommendation is now implemented. No action required.
- Item 8: Committee Priorities and Work Plan Discussion – Chair Barbara Bree presented her priorities for 2017, including reviewing personnel allocations, public safety resources for AB 953, IT outsourcing contracts, community engagement in budget creation, and compliance with earned sick leave and minimum wage ordinances. Other committee members (Councilmembers Gomez and Kate Sherman) expressed support and shared overlapping priorities. No formal action.
Key Outcomes
- Item 1: Approved to recommend City Council adoption of the first amendment to the ATOS network services agreement (motion passed unanimously).
- Item 2: Approved to recommend City Council adoption of the first amendment to the ATOS data center and help desk services agreement (motion passed unanimously).
- Item 3: Approved to recommend City Council adoption of the security guard services contract amendment (motion passed unanimously).
- Item 4: Approved to forward the IBA’s proposed language on reserve policy to the full City Council for direction (motion passed unanimously).
- Item 5: Approved to recommend City Council adoption of the biennial update of the debt policy (motion passed unanimously).
- Item 6: Approved to recommend City Council adoption of the council policy on naming city assets (motion passed unanimously).
- Item 7: Received and filed; Grand Jury recommendation considered implemented.
- Item 8: Committee priorities noted; no formal vote.
The meeting adjourned at approximately 10:30 AM (local time). The next meeting is scheduled for March 22, 2017 at 9:00 AM.
Meeting Transcript
I will now call the meeting of the budget and government efficiency committee to order. A quorum is now present, consisting of committee members Gomez, Kate Sherman, and me, Barbara Bree. Moving right along, the committee record of actions from the February 2nd, 2017 meeting will be approved by unanimous consent unless pulled for discussion. No discussion. Seeing none, um approved. Okay, we will now proceed with non-agenda public comment. Do we have any? No. We have no specific item. Okay. Uh do we have any committee member representative of the mayor, the independent budget analyst or city attorney comments today? No. Okay. Are there any requests to continue an item on today's agenda? No. Okay. Uh we'll now proceed directly to the action agenda. Um item one is to review the report from the Department of Information Technology recommending council approval of the first amendment to the agreement between the City of San Diego and ATOS Governmental IT Services, LLC for IT services, specifically related to the provision of network services. And you are Sean, right? You are Sean. So tell us your names, please. Hi, good morning. I'm Jonathan Bankey, CIO from the Department of Information Technology, along with uh Sean Kilpak, uh Deputy Director in Department of Information Technology. And uh, we are here today to request approval of the amendment to the ATOS Network Master Services Agreement to allow the city continuity of operations for network and phone services as the current contract expires, and the new contract is awarded in transition. Sean will be presenting the slides today. In 2012, following a competitive RFP, the city awarded contracts to CGI for software and application development services, to Autos for Data Center and Help Desk Services, and to Xerox for Network and Phone Services to replace the services previously performed by San Diego Data Processing Corporation. The contracts were awarded for five years with an option for two-year extensions. The goals for the city in the transition of services from San Diego Data Processing Corporation were to receive IT services with enforceable penalties, improved disaster recovery abilities with multiple data centers, to have contracts with predictable costs, transparency, and service delivery standards. The contract with Autos provides network phone and some IT security services for the city's 11,000 plus employees. The original network services contract was awarded to Xerox in 2012 with a five-year term. In July 2015, Otos acquired the Xerox contract and took over in providing services with no changes to the terms and conditions. Otos is currently meeting much of the contract SLAs, but the Department of IT is working with Otto still in some areas. The current network master service agreement was adopted by resolution and expires on June 30th, 2017. The City has decided not to be uh exercising this option for the two-year extension for the network master services agreement. The reasons are due to technology changes, wanting greater control over major technology decisions, working towards improved service delivery and reducing costs. This slide shows the projected cost for the city to reach the end of the contract and services that will be provided during the disentanglement and transition of services. The costs include ongoing services during the transition to the new vendor selected in the RFP process, along with equipment buyback and modernization projects. The total spending projection for transition, disentanglement, and continuity of services is $13.5 million. We are requesting an overall increase of $13.5 million and spending authority for the entire contract for a new not-to-exceed value of $79.7 million. So the next steps in the process for the network services for the city include development and release of a new RFP for network services. The new RFP will be updated to account for changes in technology, improved processes for delivery of network services, and better performance monitoring. The Department of Representation Technology anticipates awarding the new network services contract to the winner of the RFP in quarter one of fiscal year 18. Following the award and approval of the new network services agreement, the city will execute disentanglement from the current contract and transition the services to the new network service provider in an improved service delivery model. Finally, our recommendation is to approve the amendment to the Auto Network Master Services Agreement to allow the city continuity of operations for network and phone services as the current contract expires and the new contract is awarded in transition. The contract is dependent on the approval of the FY18 annual budget for funding this spending proposed. That concludes our presentation, and we are available for questions. Are there any questions from any of the from the IBA? Do you have any thoughts? Yes, Christian. Oh, Christian.
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