REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Negotiate and Execute Amendment No. 1 to the Agreement with Dasher Technologies, Inc. to Extend Support for Silicon Valley Power’s IBM Blade Center Servers
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On February 25, 2020 (RTC 20-180), the City Council authorized the City Manager to execute an agreement with Dasher Technologies, Inc. (Dasher) to replace Silicon Valley Power’s (SVP’s) IBM Blade Center servers that were at end of service life. SVP has business-critical applications that run on blade center servers used for daily business operations. The agreement with Dasher included the replacement of the IBM servers with Hewlett Packard Enterprise (HPE) Synergy Blade Center solution, including all hardware, software, and professional services to design, implement, maintain, and support the system. The scope also included enhancements to the existing technology infrastructure and efficiency improvements to various business processes.
Dasher completed the project and has provided ongoing support for the servers since 2020.
DISCUSSION
The term of the agreement with Dasher ends on June 30, 2025. Based on the timing of installation of servers, the current support period ends on March 24, 2025. Dasher is the vendor that initially set up and configured SVP’s system, they have a thorough understanding of SVP’s custom configuration and can continue system maintenance to minimize any service disruptions of this critical system. Additionally, Dasher is local so they can deploy resources swiftly under urgent circumstances.
Typically, Dasher authorizes service contracts for one or two-year periods. Therefore, staff recommend extending the term of the agreement for two years, with an option for an additional two years for a maximum of four years. The annual maintenance support cost is approximately $100,000, subject to reasonable price adjustments based on market conditions as well as changes to or additions of equipment.
Staff recommend authorization for the City Manager to negotiate and execute Amendment No. 1 to the Agreement with Dasher Technologies, Inc. to extend the term through March 24, 2027, and increase the maximum compensation by up to $202,322.90 from $797,677.10 to $1 million.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Furthermore, the action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The proposed Amendment No. 1 to the Agreement with Dasher would increase the maximum compensation by up to $202,322.90. Sufficient funds are available in the FY 2024/25 Operating Budget in the Electric Utility Operating Fund - Systems Support Division. Budget for future years will be requested through the biennial process
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to negotiate and execute Amendment No. 1 to the Agreement for Services with Dasher Technologies, Inc. (Agreement) for up to two additional years ending on March 24, 2027, for support of SVP’s IBM Blade Center servers and increase the maximum compensation by up to $202,322.90 from $797,677.10 to $1,000,000, subject to the review and approval as to form by the City Attorney; and
2. Authorize the City Manager to take any actions as necessary to implement and administer the Agreement and negotiate and execute future amendment(s) to (1) add or delete services or covered equipment, (2) adjust future rates to account for reasonable changes in pricing, (3) extend the term for up to two additional years through March 24, 2029, and (4) increase the maximum compensation by up to an additional $250,000 for a total maximum compensation of $1,250,000, subject to the appropriation of funds and the review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreement for Services with Dasher Technologies, Inc.