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CC - Item 5D - Second Amendment to the Professional Services Agreement with Max Power Technology, LLCROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER DATE: NOVEMBER 14, 2023 SUBJECT: SECOND AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH MAX POWER TECHNOLOGY 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 was set to expire in December 2022, and the City Council approved the first amendment to the Agreement to extend the contract for an additional one-year term ending in December 2023. This is second amendment to the Agreement, and it is recommended that the City Council exercise the optional renewal for a period of one year in an amount not to exceed $125,685, which is a $5,985 increase from the first amendment (Attachment A). All other terms and conditions set forth in the original Agreement will remain in effect. DISCUSSION 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 citywide quarterly cyber security training along with additional security measures to help staff identify and report AGENDA ITEM 5.13 City Council Meeting November 14, 2023 Page 2 of 2 phishing attacks, migrated and upgraded all servers and server operating systems to meet current technology standards, completed a citywide equipment inventory, completed a surplus of obsolete technology hardware, assisted in renewing Microsoft Office licensing and making recommendations for additional licensing to increase the security posture of the City's Microsoft tenant, completed citywide network infrastructure upgrade, set up all users with two-step factor authentication, increased e-mail security to prevent malicious activity, migrated the former physical financial system to cloud -based servers, and successfully upgraded and improved the City's firewall security. Currently, Max Power is working on replacing 20 percent of outdated equipment and software, assisting with access control and camera system upgrades, and will be supporting the City with network integration of new citywide copiers, potential website and domain upgrades, and other ongoing technology projects. The current Agreement with Max Power is for $119,700 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 $5,985 for a one-year period. It is recommended that the increase be approved, for a total cost of $125,685. STAFF RECOMMENDATION It is recommended that the City Council approve, authorize, and direct the City Manager to execute the Second Amendment to the Professional Services Agreement with Max Power Technology in amount not to exceed $125,685 for a period of one year. FISCAL IMPACT Sufficient funding is available in the Fiscal year 2023/24 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: J fifer Pi a anageme t Analyst Submitted by: Bryan Chua Director of Finance Attachment A: Second Amendment with Max Power Technology, LLC Attachment A Second Amendment with Max Power Technology, LLC SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (MAX POWER TECHNOLOGY, LLC) This SECOND AMENDMENT ("Amendment') is made and entered into this _ day of 2023 ("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, the original Agreement was 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, the City entered into the First Amendment extending the Agreement for a one-year period through December 10, 2023; and WHEREAS, the City has requested Consultant to provide an additional year of professional information technology services through December 10, 2024; and WHEREAS, Consultant has requested a 5% Consumer Price Index ("CPP') adjustment totaling $5,985 for a total annual compensation not to exceed $125,685; 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. 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 11, 2023, to December 10, 2024, 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 twenty-five thousand six hundred eighty- five dollars ($125,685) annually. The City agrees to pay Consultant a fee of ten thousand four hundred seventy-three dollars and seventy-five cents ($10,473.75) 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 go Attest: City Clerk NW Ben Kim, City Manager Rachel Richman, City Attorney 2 MAX POWER TECHNOLOGY, LLC BY: Name: Title: (If Corporation, TWO SIGNATURES, President OR Vice President AND Secretary, AND CORPORATE SEAL OF CONTRACTOR REQUIRED) BY: Name: Title: