TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Diego Chavez, Administrative Services Director
PREPARED BY: Diane Kohanyi, Management Analyst - IT
SUBJECT:
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Cisco SmartNet Software License and Support Services
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RECOMMENDATION
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Authorize the use of Cooperative Agreement #2018011-02 to Purchase SmartNet services and authorize SHI International Corp (SHI) to administer the agreement;
Authorize the use of the Cisco Master Agreement;
Approve an agreement with SHI in an amount not to exceed $73,492.94, for Fiscal Year 2024/25; and
Authorize the City Manager to execute the agreement with SHI and approve amendments, during its term, not to exceed $75,000.
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PRIOR ACTION/VOTE
On December 21, 2021, the City Council adopted Resolution No. 21-4506, authorizing entering into an agreement with SHI International Corporation (SHI) for Cisco SmartNet software license and support services (Vote 5-0).
On February 20, 2024, the City Council approved a one-year agreement to purchase SmartNet services in an amount not exceeding $76,088.35 for Fiscal Year 2023/24 (Vote 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
The proposed agreement between the City of Murrieta (City) and SHI International Corporation (SHI) is for the procurement of the Cisco SmartNet services. The City uses Cisco networking equipment across the entire City computer network. SmartNet is a service provided by Cisco for professional technical support, hardware replacement, updates, warranty coverage, and network analytics for Cisco devices. SmartNet services are sold by resellers like SHI but are directly fulfilled by Cisco. Purchasing SmartNet via a reseller is necessary to utilize Cisco’s services. Based on research and best value, the City’s Information Technology division recommends utilizing SHI as the value-added reseller to administer the agreement for Cisco SmartNet services. Staff proposes entering into a one-year agreement with SHI for SmartNet services, effective February 8, 2025, through February 7, 2026.
The Cooperative Contract #2018011-02, initiated by the City of Mesa, Arizona, was utilized for competitive bidding and final pricing. In accordance with City of Murrieta Municipal Code Section 3.08.295 Cooperative Purchasing, the City Council, City Manager, or purchasing agent, at their prescribed authorization levels, shall have the authority to join with other public and quasi-public agencies in cooperative purchasing plans or programs as long as the administering agency, in this case, the City of Mesa, Arizona, has made its purchases in a competitive manner.
FISCAL IMPACT
The fiscal impact for this service is $73,492.94. Funding is available in the Fiscal Year 2024/25 Operating Budget, Information Technology Fund (GL 726830-62160).
ATTACHMENTS
1. Cooperative Agreement #2018011-02
2. Term extension to Cooperative Agreement #2018011-02, Amendment Two
3. Cisco Master Agreement
4. SHI Quote