TO: HONORABLE MAYOR AND COUNCILMEMBERS

FROM: CITY MANAGER

DATE: SEPTEMBER 19, 2006

SUBJECT: INFORMATION TECHNOLOGY AD HOC COMMITTEE

RECOMMENDATION
1. Appoint two Council members to serve on the Information Technology Ad Hoc Committee; and
2. Direct that Committee to develop a scope of work addressing information technology issues and select a firm to gather information and make recommendations for changes, if any, to the City Council.

BACKGROUND
At their meeting of September 5, 2006 the City Council agreed to appoint an Information Subcommittee to review all IT services and identify:

- What they are?
- What are they costing the City?
- How do the services/costs compare with alternatives that may be available in the market?

DISCUSSION
The City’s information technology program has grown to a sophisticated network for sixty or more users, a highly regarded and information-packed website, listservs, streaming video, a GIS system and integrated software that handles everything from financial reports to issuing building and safety permits. The City’s budget for information technology has grown from a line item in the Finance Department budget in 1996, to a separate budget program with a total expenditure of over $550,000.

In order to support this network, the City has contracted with PV on the Net since 1999. Councilman Gardiner has asked for a review of the services provided by PV on the Net, as well as the cost of the services and a comparison of these costs with the cost of alternative providers.

Staff believes a review of contract documents and invoices as well a review of compliance with City purchasing ordinances and practices should be included in the study. In addition, a report of the quality and cost of services provided by PV on the Net, compared with other providers and, perhaps, an in-house staff should be developed. In order to address these issues in an objective and expeditious manner, an outside firm with expertise both in information technology systems and finance should be retained.

Staff is prepared to work with a City Council Ad Hoc Committee to select the appropriate firm to conduct a study and to develop a scope of work that addresses those issues of importance to the City Council.

If the Council would prefer to forgo the Ad Hoc Committee and direct the study itself, staff could prepare a draft scope of work and Request For Qualifications (RFQ) to present to the City Council for modification and/or affirmation. After the scope and RFQ are approved by City Council, Staff could conduct preliminary interviews and provide the City Council with a selection of firms that are qualified and available to perform the scope of work.

Respectfully submitted:

Les Evans
City Manager