Staff Report
PREPARED BY: CHRIS GJERDE
IT Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/18/2019
ITEM NO: 3
DATE: JUNE 7, 2019
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FIRST AMENDMENT TO
THE AGREEMENT FOR SERVICES WITH ZAG TECHNICAL SERVICES TO
INCREASE COMPENSATION IN THE AMOUNT OF $100,000 FOR A TOTAL
CONTRACT AMOUNT NOT TO EXCEED $300,000 FOR THE PERIOD OF
SEPTEMBER 6, 2017 THROUGH JUNE 30, 2020
RECOMMENDATION:
Authorize the Town Manager to execute a first amendment to the agreement for services with
ZAG Technical Services to increase compensation in the amount of $100,000 for a total contract
amount not to exceed $300,000 for the period of September 6, 2017 through June 30, 2020.
BACKGROUND:
The Town uses consultant services to help with the maintenance and ongoing upgrades of our
Microsoft Windows servers, server applications, and end user support in order to keep the
Town’s Information Technology (IT) infrastructure robust and modern. In addition, third party
contracted services help augment existing salary and benefited staff.
On September 5, 2017, the Town Council approved an Agreement for Consultant Services with
ZAG Technical Services (Attachment 1), selected through a Request for Proposals process. The
Agreement is in effect from September 6, 2017 through June 30, 2020 in an amount not to
exceed $200,000.
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SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AMENDMENT TO THE
AGREEMENT FOR SERVICES WITH ZAG TECHNICAL SERVICES TO INCREASE
COMPENSATION IN THE AMOUNT OF $100,000 FOR A TOTAL CONTRACT
AMOUNT NOT TO EXCEED $300,000 FOR THE PERIOD OF SEPTEMBER 6, 2017
THROUGH JUNE 30, 2020
DATE: JUNE 7, 2019
S:\COUNCIL REPORTS\2019\06-18-19\03 ZAG\Staff Report.FINAL.docx
DISCUSSION:
ZAG’s IT services have been utilized more than initially anticipated since the Agreement for
Services went into effect due to a variety of factors. For example, ZAG provided additional
resources while an IT Analyst position remained unfilled pending the reconfiguration of the
organizational structure of the IT Department. Additionally, the IT Department was able to fast-
track two critical projects during the first two years of the agreement utilizing ZAG resources.
These projects included the replacement of Town wireless data networks and a new high
availability hypervisor server cluster including storage and 10 Gigabit switching. These special
projects created a more secure and efficient IT environment without impeding the standard
staff hours required for normal Town network maintenance.
CONCLUSION:
To maintain the Town’s servers, user support, and technological infrastructure, staff
recommends that Council authorize the Town Manager to approve a first amendment to the
agreement with ZAG Technical Services to increase compensation in the amount of $100,000
for a total contract amount not to exceed $300,000. This will allow ZAG’s IT services to be
utilized without interruption, as needed by the Town, throughout the remainder of the contract
period until June 30, 2020.
COORDINATION:
The Finance Department, IT, and Town Manager’s Office coordinated this report.
FISCAL IMPACT:
The additional funds for this amendment are available in the FY 2019/20 budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
ATTACHMENTS:
1. Agreement for Consultant Services with ZAG Technical Services
2. Draft First Amendment