San Diego Budget Committee Meeting - April 20, 2018
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San Diego Budget Committee Meeting - April 20, 2018
This meeting of the San Diego City Council Budget Committee took place on April 20, 2018, from approximately 1:15 PM to shortly before 1:00 PM the following day? (The transcript indicates the meeting concluded before 1:00 PM on the same day). The committee reviewed several items including a fuel contract amendment, a new office furniture contract, an extension of IT services, an increase in cellular service spending, and reimbursement resolutions for water and wastewater projects. The meeting began with a discussion about improving communication between departments and the council regarding procurement items.
Consent Calendar
- Item 3: A third amendment to extend the agreement with SOCO for citywide fuel consumption for 10 months with an increased expenditure authority of $10.2 million was moved and approved without discussion or report.
Public Comments & Testimony
- For Item 5 (ATOS IT services extension), three public speakers spoke in favor. Jerry Hill, county executive of ATOS, emphasized the company's local presence, commitment to small business (SLBE), and STEM initiatives. He requested an opportunity to report back to the committee in the fall on progress.
Discussion Items
- Item 4: Office Furniture Contract with GM Business Interiors (Herman Miller) – Matthew Helm (Deputy Director of Purchasing) and Karen Johnson (Asset Manager, Real Estate Assets) presented a request for a 5-year, sole-source contract with GM Business Interiors for Herman Miller furniture and related services, with expenditure authority of $12.5 million. The presentation highlighted the total cost of ownership benefits, including product interchangeability, durability (30-year life), non-obsolescence, and a strong warranty. The pricing was 68% off list, better than the previous 63% off. The $12.5 million figure was based on historical spend ($1.4M/year average), the 101 Ash Street project, and other planned relocations (Police, PUD, Homeland Security, Family Justice Center). Councilmember Gomez moved to approve the item with an amendment stipulating that no funds from this contract may be expended for the 101 Ash Street building unless and until the City Council approves expenditures for that location. The motion was seconded by Councilmember Ward and passed unanimously.
- Item 5: ATOS IT Services Contract Extension – CIO Jonathan Banke and Deputy Director Sean Kilpath presented a request for a 24-month extension of the data center, help desk, and desktop support contract with ATOS. The extension was valued at $20.7 million and included over 20 contract improvements, such as end-to-end issue management, new service level agreements (SLAs) with financial penalties, stronger governance, and new technologies (Apprenda, Beatbok Automation, OneContact). The alternative of releasing a new RFP was estimated to cost $1 million more per year. The total contract not-to-exceed amount was noted as $1.38 million (likely a typo; the extension alone is $20.7M). The IBA (Angela Colton) praised the improved accountability measures, noting 69 SLAs with 28 having fee-reducing factors. The motion to approve staff recommendation was made by Councilmember Kate, seconded by Councilmember Gomez, and passed.
- Item 6: Verizon Cellular Equipment and Services Amendment – Jonathan Banke and Denise McAnali (Deputy Director, Wireless) presented a request to increase the not-to-exceed amount for the Verizon contract from $3 million to $5.65 million (no time extension). The increase was driven by public safety departments (Police and Fire-Rescue) modernizing operations with mobile devices, tablets, and data-intensive applications. Police have 1,200 mobile laptops and 600 cell phones; Fire-Rescue deployed 550+ devices. The IBA confirmed the increase is due to departmental budget allocations. Councilmember Ward expressed concern about the 82% cost increase from 2015 to 2019 and asked about savings from paper reduction. The item was moved by Councilmember Ward, seconded by Councilmember Kate, and passed.
- Item 7: Reimbursement Resolutions for Water and Wastewater Capital Projects – This item was moved by Councilmember Kate, seconded by Councilmember Ward, and approved without discussion.
Key Outcomes
- Item 3 (Fuel contract extension) approved unanimously.
- Item 4 (Herman Miller furniture contract) approved with an amendment restricting spending on 101 Ash Street pending further council approval. Motion passed unanimously.
- Item 5 (ATOS IT services extension) approved unanimously. The committee noted the expectation of a fall 2018 report from ATOS on small business and STEM progress.
- Item 6 (Verizon cellular services increase) approved unanimously.
- Item 7 (Reimbursement resolutions) approved unanimously.
- The committee will reconvene on April 21, 2018, at 9:30 AM.
Meeting Transcript
I think we're back in session. Okay. Before we um get started with the next agenda item. Um at the end of the last item, I did express frustration that we were getting a lot of things at the last minute. And that's one reason we're having a two-day budget committee meeting right now. And I understand that Christina and the mayor's office has created a plan for moving forward. So good morning, Chairbree. And we understand the frustration. So what we've done is in discussions with obviously the executive team and with my deputy Matt Helm. Um there are a couple of things that purchasing and contracting can do to make sure that items that are moving through the procurement process are on your radar. And that could be as simple as adding a member of your chief of staff from every council district office to our distribution list on items that we're currently working on. So if there's ever an item that comes through and it's of interest, we can always provide information without um disrupting the process and safeguarding our procurement process as much as process uh as possible. And then there's also um work that we can do to fine-tune our forecasting process to make sure that council sees things that procurement will be working on throughout the year. Well, um, thank you. And also happy birthday. I'm sure this is just where you wanted to spend your birthday with all of us. Thank you for that. I appreciate that. And yes, I I'm happy to be here. Okay. Okay, so uh moving on to item number four to a three. Oh. I was gonna move. I just move item three right now if you're oh three, sorry. Item number three to request to enter into a third amendment to extend the current agreement with SOCO for citywide fuel consumption for ten months and an increased expenditure authority of 10.2 million. You're gonna move it without a report. Second, um, all in favor. Aye. Well, I guess the IBA is not here. She doesn't have a comment. Okay. Right. Okay, now we'll move on to item number four. Same people. Okay. To review a report from purchasing and contracting recommending council approval of a contract between the city and GoForth. And uh Marty, DBA, as GM business interiors for Herman Miller System brand office furniture and related services, and we have Matthew Helm and Karen Johnson. Welcome. Good morning, Chair Bree, members of the committee. Matthew Helm, Deputy Director for Purchasing Contracting. Um I guess it's not my birthday, so my item doesn't get moved, so we'll go ahead and try and make furniture exciting for you. So I'm joined by Karen Johnson, who's the asset manager from the real estate assets department. Um as you can see from the slide, we're coming forward with a citywide contract for uh uh with GM business interiors uh for Herman Miller brand office furniture and related services. The ask today is for a 12.5 million in expenditure authority for a five-year contract. So I'm gonna step you through those things. Obviously, there's a lot of things in flux with big city projects, so that request for expenditure authority could be zero dollars in actual spend or it could be up to the 12.5. So I think you'll see um how we arrived at that number, but given the previous discussion, we understand that there's some projects in flux. Um just some background, and I'll step through this quickly. Obviously, we have uh a lot of city employees and we occupy a lot of space in the city. I was surprised to actually learn this.
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