SR 09-26-2023 5F
City Council
Report
City Council Meeting: September 26, 2023
Agenda Item: 5.F
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To: Mayor and City Council
From: Christopher Smith, Acting Chief Information Officer, Information Services
Department
Subject: Approval of Agreements with Zones and Hewlett Packard for City Computer
Equipment
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15061(d)(3)
(Common Sense Exemption) of the California Environmental Quality Act (CEQA)
Guidelines.
2. Authorize the Procurement Manager to issue a change order to purchase order
#22400546 in the amount of $100,588 with the Hewlett Packard Corporation for
computer equipment for the Information Services Department. This would result
in a revised purchase order total not to exceed $350,588.
3. Authorize the City Manager to negotiate and execute an agreement with Zones
Corporation for computer equipment and installation services for the Information
Services Department. This recommended award is made as an exception to the
competitive bidding process pursuant to Section 2.24.250 (c) and is for a five-
year total amount not to exceed $7,864,000 with future year funding contingent
on Council budget approval.
4. Authorize budget changes as outlined in the Financial Impacts & Budget Actions
section of this report.
Summary
The City maintains a fleet of approximately 2,000 laptops and desktops for staff and at
public kiosks. The City suspended its Computer Equipment Replacement Program
(CERP) in 2020 as part of the City’s fiscal rightsizing following the COVID-19 pandemic.
This means that more than half of today’s computer fleet is over four years old, resulting
in increased computer failures and repairs and security vulnerability as technology
ages. Staff now proposes to restart CERP in FY 2023-24, replacing 25% of the City’s
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computer fleet annually. Staff also seeks to replace approximately 100 mobile data
computers (MDCs) used by the Santa Monica Police Department in their vehicles. To
do this, staff requests authorization to enter into a five-year agreement with Zones to
purchase computer equipment and associated services supporting the deployment and
decommissioning of equipment as well as authorization to modify the City’s existing
purchase order with Hewlett Packard to ensure the City can continue to purchase
computer equipment on an emergency basis until the program can be restarted early
next year.
Discussion
The City operates a modern, secure technology infrastructure supporting the City’s
departments and staff to conduct their work and provide services to the community. A
key part of this technology infrastructure is desktop and laptop computers for staff and
at public kiosks.
The City has historically replaced its computers every four years to ensure that they are
secure, work reliably, and up to date. However, the City suspended CERP in 2020 due
the financial impacts of the COVID-19 pandemic. This means, over 1,000 of the City’s
computers are now over four years old and staff are relying on fragile and outdated
computers while there have been enormous demands added to the City’s technology
environment to support online meetings and collaboration, new software systems,
enhanced cyber and information security protection, and other factors. Since 2022, the
City has piggy backed off the State of California’s National Association of State
Procurement Officials (NASPO) participating addendum to procure computer equipment
from Hewlett Packard on an as-needed, emergency basis. The proposed modification to
the current purchase order with Hewlett Packard Corporation would exceed the City
Manager’s threshold and requires Council approval.
Staff now propose to restart CERP to ensure staff and public kiosks have reliable
computer equipment that supports the modern ways of working while meeting the City’s
technical and information security requirements. Additionally, the MDCs installed in the
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Santa Monica Police Department’s vehicles are now over eight years old and staff seek
to replace this equipment at this time.
In assessing the marketplace, staff evaluated computer equipment from the top
manufacturers and determined that Dell laptops and desktop computers best meet the
City’s technical requirements for computing. Staff also examined recent competitive
bids completed by local agencies and identified a bid conducted by the Port of Los
Angeles that was awarded to Zones. Zones currently provides the City’s 24/7 first tier
computer support and some disaster recovery services and therefore knows the City’s
computing environment. Zones has offered the City a 60% minimum discount on Dell
equipment as part of this proposed agreement.
Vendor Selection
Agreement with Zones for Computer Equipment Replacement Program
Exception to Competitive Bidding
Staff recommends Zones to furnish and provide computer equipment and
installation services as an exception to competitive bidding per Santa Monica Municipal Code
Section 2.24.250 (c). This request is leveraging competitive pricing piggy backing off the City of
Los Angeles Harbor Department Bid Number F-1137, formal request for cooperative agreement
for IT Equipment, Supplies and Related Services. Zones is offering Dell laptop, desktop and
MDC computers at a 60% to 66% discount from the manufacturer’s suggested retail price.
They are also providing configuration, deployment, and decommissioning services of the
computer equipment. Additionally, Zones currently provides the City’s 24/7 first tier computer
support and some disaster recovery services and therefore knows the City’s computing
environment.
c. competitive procedures were followed by a governmental agency, federal, state, county,
city, joint powers agency, special district, or cooperative purchasing agency and the goods
or services are supplied to the City at the same or better price
Change order to Purchase Order with Hewlett Packard
Exception to Competitive Bidding
Staff recommends Hewlett Packard to furnish and provide computers on an as needed basis as
an exception to competitive bidding per Santa Monica Municipal Code Section 2.24.250 (c).
This request continues to leverage competitive pricing piggy backing off the State of California’s
Participating Addendum under the NASPO ValuePoint Computer Equipment, Peripherals &
Related Services contract (Master Agreement – State of Minnesota, extended through October
31, 2023). The discounts offered through this agreement range between 18% and 28% off
baseline list, with additional discounts on bulk orders.
c. competitive procedures were followed by a governmental agency, federal, state, county,
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city, joint powers agency, special district, or cooperative purchasing agency and the goods
or services are supplied to the City at the same or better price
Environmental Review
The award agreement and purchase order modification to provide computer equipment
and related services and purchase order modification to provide computer equipment is
exempt from the California Environmental Quality Act (CEQA) pursuant to Section
15061(b)(3) of the CEQA Guidelines. The award agreement is covered by the common
sense exemption which states that CEQA does not apply, where it can be seen with
certainty that there is no possibility that the activity in question may have a significant
effect on the environment.
The agreement and purchase order will allow the City to continue to procure computer
equipment and related services. Therefore, it can be seen with certainty that the
agreement would not result in adverse physical impacts on the environment, and as
such, is categorically exempt from CEQA.
Financial Impacts
Staff seeks authority to approve funding from the Information Services & Technology
Replacement Fund and the General Fund to award an agreement with Zones for the
purchase of computer equipment and associated deployment services and to issue a
change order to the purchase order with Hewlett Packard for the purchase of computer
equipment on an as-needed basis.
Award of the agreement to Zones and modifying the purchase order with Hewlett
Packard requires the following budget change:
FY 2023-24 Budget Change
Appropriate Funds
Fund Account Number Amount
Information Services &
Technology Replacement
C7100030.689000
CERP 658,000
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The appropriation from the Information Services and Technology Fund, as previously
contributed by the City’s other funds, is required to ensure funds are available in the
CERP capital account to fund projected replacements.
Agreement Request: Zones
FY 2023-24
Request Amount
Future Years
Amount CIP Account # Total Contract
Amount
685,000 6,744,000 C7100030.689000
CERP 7,429,000
410,000 C0105830.689000
Mobile Data Computer Replacement 410,000
25,000
C0107810.689000
Bulk Process Improvement,
Modernization, & Digitization
25,000
1,120,000 6,744,000 Total 7,864,000
Purchase Order Modification Request: Hewlett Packard
Purchase
Order #
Current Authorized
Amount
FY 2023-24
Request Amount CIP Account # Total Revised
Amount
22400546 250,000 100,588 C7100030.689000
CERP 350,588
Future year funding is contingent on Council budget approval.
Prepared By: Christopher Smith, Acting Chief Information Officer
Approved
Forwarded to Council
Attachments:
A. HP OAKS INITIATIVE FORM
B. ZonesLLC_Santa Monica_OAKS INITIATIVE FORM
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CITY OF SANTA MONICA OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known
as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the
Initiative’s text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection.
It prohibits a public official from receiving, and a person or entity from conferring,
specified personal benefits or campaign advantages from a person or entity after
the official votes, or otherwise takes official action, to award a “public benefit” to that
person or entity. The prohibition applies within and outside of the geographical
boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of
Santa Monica shall provide the names of trustees, directors, partners, and officers,
and names of persons with more than a 10% equity, participation or revenue
interest. An exception exists for persons serving in those capacities as volunteers,
without compensation, for organizations exempt from income taxes under Section
501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not
apply if the organization is a political committee or controls political committees.
Examples of a “public benefit” include public contracts to provide goods or services
worth more than $25,000 or a land use approval worth more than $25,000 over a 12-
month period.
In order to facilitate compliance with the requirements of the Oaks Initiative,
the City compiles and maintains certain information. That information includes the
name of any person or persons who is seeking a “public benefit.” If the “public benefit”
is sought by an entity, rather than an individual person, the information includes the
name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has
(e) more than a ten percent interest in the entity. Therefore, if you are seeking a
“public benefit” covered by the Oaks Initiative, you must supply that information on
the Oaks Initiative Disclosure Form. This information must be updated and supplied
every 12 months.
5.F.a
Packet Pg. 1046 Attachment: HP OAKS INITIATIVE FORM (5856 : Computer Equipment Replacement Program)
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the
City compiles and maintains certain information. That information includes the
name of any person or persons who is seeking a “public benefit.” If the “public
benefit” is sought by an entity, rather than an individual person, the information
includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d)
officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a
12- month period;
3. Purchase, sale or lease of real property to or from the City in excess of
$25,000 over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more
in any 12-month period;
5. Land use variance, special use permit, or other exception to an established
land use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any
12- month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any
12- month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: Title:
Signature: Date:
Email: Phone:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
5.F.a
Packet Pg. 1047 Attachment: HP OAKS INITIATIVE FORM (5856 : Computer Equipment Replacement Program)
CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS,BIDDERS,PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS,CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative s requirements.You may obtain a full copy of the Initiative s
text from the City Clerk.
This information is required by City Charter Article XXII Taxpayer Protection.It
prohibits a public official from receiving,and a person or entity from conferring,specified
personal benefits or campaign advantages from a person or entity after the official votes,
or otherwise takes official action,to award a public benefit to that person or entity.The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees,directors,partners,and officers,and names
of persons with more than a 10% equity, participation or revenue interest.An exception
exists for persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3),(4),or (6),of the
Internal Revenue Code. However,this exception does not apply if the organization is a
political committee or controls political committees.Examples of a public benefit include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative,the City
compiles and maintains certain information.That information includes the name of any
person or persons who is seeking a public benefit.If the public benefit is sought by an
entity,rather than an individual person,the information includes the name of every person
who is:(a)trustee,(b)director,(c)partner,(d)officer,or has (e)more than a ten percent
interest in the entity. Therefore,if you are seeking a public benefit covered by the Oaks
Initiative,you must supply that information on the Oaks Initiative Disclosure Form. This
information must be updated and supplied every 12 months.
5.F.b
Packet Pg. 1048 Attachment: ZonesLLC_Santa Monica_OAKS INITIATIVE FORM (5856 : Computer Equipment Replacement Program)
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative,the City
compiles and maintains certain information.That information includes the name of any
person or persons who is seeking a public benefit.If the public benefit is sought by
an entity,rather than an individual person,the information includes the name of every
person who is:(a)trustee,(b)director,(c)partner,(d)officer,or has (e)more than a ten
percent interest in the entity.
Public benefits include:
1.Personal services contracts in excess of $25,000 over any 12-month period;
2.Sale of material,equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3.Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12-month period;
4.Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5.Land use variance, special use permit,or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6.Tax abatement, exception,or benefit of a value in excess of $5,000 in any 12-
month period;or
7.Payment of cash or speci of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees,directors,partners,and officers:
Name(s) of persons with more than a 10%equity,participation,or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________Date: ________________
Email: ____________________________________Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
Jon Bailey VP, Business & Legal Affairs
10/07/2022
Jon.Bailey@zones.com 253-205-3571
Zones, LLC
Zones, LLC Board of Directors are: Firoz Lalji (Chairman), and independent BODs;
John Bauer, James Jiambalvo, Ken Kirkpatrick, John M. Steel, Yehia Maaty Omar
Firoz Lalji - President/CEO
5.F.b
Packet Pg. 1049 Attachment: ZonesLLC_Santa Monica_OAKS INITIATIVE FORM (5856 : Computer Equipment Replacement Program)