CC - Item 5D - First Amendment to the Professional Services Agreement with Max Power TechnologyROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BEN KIM, CITY MANAGER<qA---/
DATE: AUGUST 9, 2022
SUBJECT: FIRST AMENDMENT TO THE PROFESSIONAL SERVICES
AGREEMENT WITH MAX POWER TECHNOLOGY
SUMMARY
On December 10, 2019, the City of Rosemead ("City") approved a Professional Services
Agreement ("Agreement") with Max Power Technology, LLC ("Max Power") for information
technology services for a three-year period, with two one-year optional renewals. The initial
Agreement is set to expire in December 2022, and it is recommended that the City Council exercise
the optional renewal for a period of one-year in an amount not to exceed $119,700, which is a
$5,700 increase from the initial three-year period (Attachment A). This is the first amendment with
Max Power, and all other terms and conditions set forth in the original Agreement will remain in
effect.
The City Manager's Office oversees all citywide information technology services, contract
administration, infrastructure and network upgrades, and other areas of focus. All information
technology system requests and projects are handled by Max Power, with City staff assisting with
internal support and management.
Max Power is responsible for providing one full-time on-site support technician during business
hours for the daily administration of the City's information technology systems, including:
providing adequate backup staffing to address significant and immediate problems, developing
backup plans and procedures, providing end-user training as needed, implementing technology
protocols for enforcement of all City IT policies, generating quarterly hardware and equipment
inventory reporting, offering desktop "help desk" support, executing computer operations and
security administration support, assisting with planning and project management, and maintaining
effective communication regarding ongoing projects.
Throughout the current Agreement, Max Power has successfully implemented the citywide
network infrastructure upgrade, setting up all users with two-step factor authentication, increased
e-mail security to prevent malicious activity, migrated the former physical financial system to
AGENDA ITEM 5.1)
City Council Meeting
August 9, 2022
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cloud -based servers, completed a citywide equipment inventory, completed a surplus of obsolete
technology hardware, and successfully upgraded and improved the City's firewall security.
Currently, Max Power is working on planning the implementation of a citywide server upgrade,
assisting with access control and camera system upgrades, and will be supporting the City with
network integration of new email retention policy, potential website and domain upgrades, and
other ongoing technology projects.
The current Agreement with Max Power is for $114,000 annually. Due to recent increases in the
Consumer Price Index for the Los Angeles metropolitan area, Max Power has requested a 5% CPI
adjustment or $5,700 for a one-year period. Over the last 12 months, the CPI has increased by
8.6% (June 2021 to June 2022) and, therefore, it is recommended that the increase be approved,
for a total cost of $119,700.
STAFF RECOMMENDATION
It is recommended that the City Council approve, authorize, and direct the City Manager to execute
the First Amendment to the Professional Services Agreement with Max Power Technology in
amount not to exceed $119,700 for a period of one year.
FISCAL IMPACT
Sufficient funding is available in the Fiscal year 2022/23 General Fund budget for information
technology contract services.
STRATEGIC PLAN IMPACT
None.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
M.4.
Michael Bruckner
Assistant City Manager
Attachment A: First Amendment with Max Power Technology, LLC
Attachment A
First Amendment with
Max Power Technology, LLC
FIRST AMENDMENT
TO PROFESSIONAL SERVICES AGREEMENT
(MAX POWER TECHNOLOGY, LLC)
This FIRST AMENDMENT ("Amendment') is made and entered into this _ day of
2022 ("Effective Date"), by and between the City of Rosemead, a municipal
organization, organized under the laws of the State of California with its principal place of
business at 8838 East Valley Blvd., Rosemead, California 91770 ("City') and Max Power
Technology, LLC with its principal place of business at ("Consultant'). City and Consultant
are sometimes individually referred to herein as "Party" and collectively as 'Parties."
WHEREAS, City and Consultant entered into a three (3) year agreement on December
10, 2019, for professional information technology services (the "Agreement'); and
WHEREAS, this Agreement is set to expire on December 10, 2022; and
WHEREAS, the Agreement permits the City and the Consultant to mutually agree to
extend the term of the Agreement for up to two (2) one-year extensions; and
WHEREAS, City has requested Consultant to provide an additional year of professional
information technology services through December 10, 2023; and
WHEREAS, Consultant has requested a 5% Consumer Price Index ("CPP') adjustment
totaling $5,700 for a total annual compensation not to exceed $119,700; and
WHEREAS, the Parties have agreed to a one-year extension with all other terms and
conditions set forth in the original Agreement remaining in effect; and
WHEREAS, the City Council authorizes the City Manager to execute the Amendment on
behalf of the City.
NOW, THEREFORE, the Parties agree as follows:
SECTION 1. Section 3.1.2 " Term" shall be amended to read:
Section 3.1.2 Term. The term of this Agreement shall be extended for an
additional one-year term from December 10, 2022, to December 10, 2023, with
the remaining option for one (1) additional one (1) year extension at the sole
and absolute discretion of the City, unless earlier terminated as provided
herein. Consultant shall complete the services within the term of this Agreement
and shall meet any other established schedules and deadlines.
SECTION 2. Section 3.3.1 "Compensation" shall be amended to read
Section 3.3.1 Compensation. Consultant shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement
and shall not exceed one hundred and nineteen thousand seven hundred
dollars ($119,700) annually. The City agrees to pay Consultant a fee of nine
thousand nine hundred seventy-five dollars ($9,975) a month. Extra work may
be authorized in writing, as described below, and will be compensated at the
rates and manner set forth in this Agreement.
SECTION 3. All other terms, condition, and provisions of the Original Agreement not in
conflict with this Addendum, shall remain in full force and effect.
SECTION 4. The City Clerk shall certify to the adoption of this Addendum and hereafter the
same shall be in full force and effect.
IN WITNESS WHEREOF, City and Consultant have caused this Agreement to be executed
by their duly authorized representatives as of the day and year first above written.
CITY OF ROSEMEAD
AN
Ben Kim, City Manager
MAX POWER TECHNOLOGY, LLC
Name: Jairo E Tzunun
Attest:
Title: Chief Operating Officer
City Clerk
(If Corporation, TWO SIGNATURES,
President OR Vice President AND
Secretary, AND CORPORATE SEAL
OF CONTRACTOR REQUIRED)
BY: BY: 1' a�
Rachel Richman, City Attorney
Name: Jose R Gonzalez
Title: Chief Technology Officer
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