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Legislation #: 170497 Introduction Date: 6/29/2017
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER WAGNER
Title: Authorizing the Director of Finance as part of the OneIT Initiative to execute a five year $3,101,961.71 Payment Plan Agreement with Key Government Finance, Inc. for Cisco SMARTnet and SMARTnet Onsite Services; estimating revenue in the amount of $620,392.34 in the Reimbursable Software Maintenance Account and appropriating $620,392.34 to the Reimbursable Maintenance Account; authoring the Director of General Services to expend such funds for Cisco SMARTnet and SMARTnet Onsite Services; authorizing the Manager of Procurement to execute amendments and a five-year extension to the City’s Piggy Back Contract with Alexander Open Systems, Inc.; and authorizing the Manager of Procurement Services to enter into and execute additional contracts and contract amendments with MBE/WBE goals established by the Director of Human Relations to provide Cisco products and services with such funds that are appropriated by the City Council in the annual budget.

Legislation History
DateMinutesDescription
6/29/2017 Filed by the Clerk's office
6/29/2017 Referred to Finance and Governance Committee
7/12/2017 Advance and Do Pass as a Committee Substitute, Debate
7/13/2017 Passed as Substituted

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 170497

 

Authorizing the Director of Finance as part of the OneIT Initiative to execute a five year $3,101,961.71 Payment Plan Agreement with Key Government Finance, Inc. for Cisco SMARTnet and SMARTnet Onsite Services; estimating revenue in the amount of $620,392.34 in the Reimbursable Software Maintenance Account and appropriating $620,392.34 to the Reimbursable Maintenance Account; authoring the Director of General Services to expend such funds for Cisco SMARTnet and SMARTnet Onsite Services; authorizing the Manager of Procurement to execute amendments and a five-year extension to the City’s Piggy Back Contract with Alexander Open Systems, Inc.; and authorizing the Manager of Procurement Services to enter into and execute additional contracts and contract amendments with MBE/WBE goals established by the Director of Human Relations to provide Cisco products and services with such funds that are appropriated by the City Council in the annual budget.

 

WHEREAS, the City and Kansas City, Missouri Police Department (“KCPD”) have over 900 pieces of Cisco equipment and software; and

 

WHEREAS, all Cisco equipment and software must be maintained by Cisco or a Cisco authorized resellers; and

 

WHEREAS, under OneIT Initiative, the City and KCPD are working together to consolidate Information Technology management of software and equipment including maintenance agreements for Cisco equipment and software; and

 

WHEREAS, as part of the OneIT Initiative, the City and KCPD have collaborated to have one contract for Cisco SMARTnet and SMARTnet Onsite Services through the City for all City and KCPD owned Cisco equipment; and

 

WHEREAS, the City and KCPD collaborated to lock in pricing for Cisco SMARTnet and SMARTnet Onsite Services for five years; and

 

WHEREAS, by collaborating and entering into a five-year prepaid maintenance Cisco SMARTnet and SMARTnet Onsite Services agreement, the City and KCPD will save $1,412,265.00 over the 5 year period; and

 

WHEREAS, to lock in the five year maintenance pricing, the City needs to enter into a five year agreement to annually pay the maintenance costs subject to annual appropriation; and

 

WHEREAS, Key Government Finance, Inc., Cisco’s finance partner, has provided the City a five year 0% interest rate to prepay the five year maintenance costs upfront as long as the City executes a Payment Plan Agreement and all required documents by July 29, 2017; and

 

WHEREAS, the City’s outside accountants, BKD, and outside lease counsel, Kutak Rock, LLP have reviewed the transaction and concluded that the City’s Payment Plan Agreement with Key Government Finance, Inc. for Cisco SMARTnet and SMARTnet Onsite Services would be reported on the City’s financial statements as an expense rather than a debt; and

 

WHEREAS, the City’s current agreement with Alexander Open Systems, Inc., Cisco’s authorized reseller, is a Piggy Back Agreement that expires on June 18, 2018-- the same date as the original piggy back contract; and

 

WHEREAS, the City’s Payment Plan Agreement with Key Government Finance, Inc. for Cisco SMARTnet and SMARTnet Onsite Services incorporates the City’s purchase of the Cisco SMARTnet and SMARTnet Onsite services through the City’s Piggy Back Agreement with Alexander Open Systems, and

 

WHEREAS, the City must amend the Piggy Back Agreement with Alexander Open Systems, Inc. to extend the term of the Piggy Back Contract to August 1, 2022, to capture the Savings of $1,412,265.00 over the 5 year period; and

 

WHEREAS, for the reasons stated above, the City Manager has approved sole source waivers for Key Governance Finance, Inc. and Alexander Open Systems, Inc. so the City can save $1,412,265 on Cisco SMARTnet and SMARTnet Onsite Services.

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the Director of Finance is hereby authorized to execute a five-year $3,101,961.71 Payment Plan Agreement with Key Government Finance, Inc. for Cisco SMARTnet and SMARTnet Onsite Services and any and all other documents necessary to effectuate the transaction. A copy of the Payment Plan Agreement in substantial form is on file in the Procurement Services Division.

 

Section 2. That the revenue in the following account of the Information Technology Reimbursable Services Fund is estimated in the following amount:

 

18-1160-071893-485960 Reimb-Software Maintenance $620,392.34

Section 3. That the amount of $620,392.34 is appropriated from the Unappropriated Fund Balance of the Information Technology Reimbursable Services Fund to the following account of the Information Technology Reimbursable Services Fund:

 

18-1160-071893-B Reimbursable – Maintenance $620,392.34

 

Section 4. That the Director of General Services is hereby authorized to expend $620,392.34 from funds appropriated to Account No. 18-1160-071893 for Cisco SMARTnet and SMARTnet Onsite Services.

 

Section 5. That the Manager of Procurement is authorized to execute amendments and a five-year extension to the City’s Piggy Back Contract with Alexander Open Systems, Inc. and is authorized to issue purchase orders that exceed the $1,300,000.00 annual threshold for City Council authorization set forth in Section 3-41(a)(2), Code of Ordinances, with such funds that are appropriated in the City’s Annual Budget without further Council approval.

 

Section 6. That the Manager of Procurement is authorized to execute a new contract or a piggy back contract and contracts amendments for up to an initial five year term with two one-year extensions with MBE/WBE goals established by the Director of Human Relations for Cisco products and services with any authorized Cisco vendor and the Manager of Procurement Services is authorized to issue purchase orders that exceed the $1,300,000.00 annual threshold for City Council authorization set forth in Section 3-41(a)(2), Code of Ordinances, with such funds that are appropriated in the City’s Annual Budget without further Council approval.

 

_______________________________________

 

I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

 

________________________________

Randall J. Landes

Director of Finance

 

Approved as to form and legality:

 

 

__________________________________

James M. Brady

Assistant City Attorney