RPVCCA_CC_SR_2012_10_02_03_NexLevel_IT_AssessmentCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR &CITY COUNCIL MEMBERS ~
DENNIS McLEAN,DIRECTOR OF FINANCE &INFORMATIO~
TECHNOLOGY
OCTOBER 2,2012
INFORMATION TECHNOLOGY SERVICE DELIVERY
ASSESSMENT REPORT FROM NEXLEVEL INFORMATION
TECHNOLOGY,INC.
(Supports City Council 2012 Goal for Government Efficiency,
Fiscal Control and Transparency)nn
CAROLYN LEHR,CITY MANAGER ~
RECOMMENDATION
1)Receive and file the Information Technology Service Delivery Assessment Report
(the "Assessment Report")from NexLevellnformation Technology,Inc.;and
2)Approve the Proposed IT Assessment Implementation Plan of the
recommendations made by NexLevellnformation Technology,Inc.
DISCUSSION:
At its meeting on February 7,2012,the Council directed Staff to obtain proposals from
at least three vendors to review:
1)the 2008 Management Partners Organization Assessment;
2)the status of the 2012 IT Upgrade Plan;
3)the existing IT Service Plan [provided by PVNET];
4)the timing and nature of the competitive bid process;and
5)return to Council within four weeks with the proposals.
On June 5,2012,the City Council voted (5-0)to select NexLevellnformation Technology,
Inc.("NexLevel")to perform the IT assessment for a not-to-exceed fee of $13,740.The
staff report dated June 5,2012 provides a detailed overview about the process that led to
the City Council's selection of NexLevel.
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INFORMATION TECHNOLOGY SERVICE DELIVERY ASSESSMENT REPORT
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October 2,2012
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Information Technology Service Delivery Assessment Performed by NexLevel
NexLevel has completed its IT assessment and published its (attached)Assessment
Report,dated September 26,2012.Staff generally agrees with the findings and
recommendations offered by NexLevel.Staff offers the (attached)proposed IT
Assessment Implementation Plan for each recommendation offered by NexLevel for
approval by the City Council.Staff has offered additional background with the attached
proposed IT Assessment Implementation Plan as well.
The following bullet points are noteworthy excerpts of the recommendations included in
NexLevel's Assessment Report:
.:."...complete a long range IT Strategic Plan for City Council adoption."
.:."While the City made significant improvements to the prior IT service delivery
agreement when the latest agreement was approved in November 2011,
NexLevel believes there are areas where the agreement can be further
improved."
.:."In fact,we believe that the City is receiving a quality service for the price
it is paying,and bidding the services out may result in a higher overall cost
to the City."
.:."Our recommendations include consideration of reassigning some duties
currently under the Director's responsibilities,and filling a currently vacant
position to assist the Director with day to day IT management."
.:."Establish a formal reporting of IT service levels and activities -these
should be the basis for every invoice and payment."
.:."Require the implementation of a formal help desk/trouble tracking system
to track activities being performed and which will provide information to
report against."
.Conclusion
Staff recommends that any decision to conduct a competitive process for IT services
should consider the recommendations made by NexLevel,as incorporated into Staff's
Proposed IT Assessment Implementation Plan,and other factors including:
~Whether network documentation has been updated to incorporate the
necessary changes resulting from the 2012 IT Upgrade;
~Whether detail descriptions of IT services and service levels have been
prepared in accordance with the recommendation made by NexLevel;
~The likelihood of IT cost savings;
~The potential impact on IT users that could result from a sudden change of 3-2
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October 2,2012
Page 3 of 4
IT service providers,compared with a phased process (e.g.GIS services,
web hosting);
~The potential impact on competing projects and assignments in early 2013,
including San Ramon financing,the replacement of the ERP (financial)
system and Recreation systems,a possible banking change at the
conclusion of a competitive process and the preparation of the 2-year
(improved)budget document;and
~The need to re-allocate or supplement staff resources.
BACKGROUND:
In November 2011,the City Council approved (4-0 vote)a significant IT upgrade,including
the replacement of dedicated servers with a virtual server and file storage configuration,
commonly referred to as a virtual machine (the "V/M"),an enterprise-wide Microsoft
licensing and support agreement,migrating the current voice over Internet Protocol
("VOIP")phone and messaging system to the Microsoft unified communication system for
voice,messaging,email and eventually video-conferencing and replacement of about 2/3
of the City's desktop computers (referred to as the "2012 IT Upgrade Plan").When
approved,it was anticipated that the 2012 IT Upgrade would require approximately 150
hours of the Finance &Information Technology Director's support over about six months
during implementation planning,monitoring,and communications with users,training and
network documentation.The actual time incurred appears to be consistent with Staff's
estimate.
In early 2012,the Mayor requested the Director to provide an overview to the City Council
regarding the history,services,terms of the professional/technical services agreement with
the City,and staffing provided by PVNET in its delivery of IT services.The Mayor also
requested that the Recommendation include the opportunity for the City Council to
consider a competitive process for IT services.In its staff report presented on February 7,
2012 (attached),Staff recommended that if the Council elected to direct that the
competitive process were to proceed,it should be conducted in early 2013,after the 2012
IT Upgrade Plan is completed.
When NexLevel was selected by the City Council to perform the IT assessment,it was
.anticipated that it would require approximately 50 hours of the Finance &Information
Technology Director's support,including planning,communication to users,providing
documentation,meeting with NexLevel professionals and reviewing the assessment report
to ensure accurate factual content.The actual time incurred has exceeded 75 hours.
NexLevel has also exceeded their budget to ensure their delivery of a comprehensive
assessment report.The additional time and effort has led to a comprehensive IT
assessment.Staff also wishes to thank NexLevel for its comprehensive,professional
approach during its IT assessment.
2012 IT Upgrade Plan
The 2012 IT Upgrade Plan includes the implementation of a Dell virtualized high availability 3-3
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FROM NEXLEVEL INFORMATION TECHNOLOGY,INC.
October 2,2012
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(redundant)server configuration and storage array,Microsoft ("MS")enterprise licensing,
migration to the MS unified communication platform (including voice)and replacement of
about 60 desktop workstations.The enterprise licensing has been acquired.The
installation of the Dell virtual machine,storage array,MS Lync and MS Exchange is
completed.The migration to unified communication is in process.Once completed,
unified communications is expected to be followed by the replacement of desktop
computers culminating with migration to Windows 7 and Office 2010.Industry standard
network support documentation will be developed by PVNET near the end of the
implementation process.The 2012 IT Upgrade project is expected to be completed before
the end of 2012.Finance &IT staff resources have been re-allocated to other projects,
including the NexLevellT assessment,contributing to the delayed completion of the 2012
IT Upgrade.
The 2012 IT Upgrade Plan includes the installation of enterprise management software
that will enable the upgrade of software onto each desktop computer from one central
remote console;thus saving substantial time and cost.The time and cost supporting
servers will be reduced.The actual support process,time required and frequency will not
be known until the 2012 IT Upgrade is completed and support processes are finalized.
Therefore,the development of the bid specifications for support services cannot be
accurately finalized until after the 2012 IT Upgrade is completed.
The completion of the 2012 IT Upgrade is expected to be followed by the necessary
implementation of the Enterprise Resource Planning ("ERP")system,the Recreation
Department's system for the management offacilities (e.g.rentals)and activity events (e.g.
Breakfast With Santa,softball league),and the point-of-sale and inventory system at the
Point Vicente Interpretive Center:all web-based systems that will operate over the City's IT
network.
FISCAL IMPACT
The FY12-13 IT program budget includes a provision of $60,000 for professional IT
services,including recommended actions included in the Proposed Implementation Plan
and a possible competitive process for IT services.Staff believes the provision should be
more than sufficient in the event the City Council directs Staff to retain an IT consultant to
.assist with the performance of the Proposed Implementation Plan based upon the
recommendations made by NexLevel.
Attachments:
Proposed IT Assessment Implementation Plan
Information Technology Service Delivery Assessment Report from NexLevel
Information Technology,Inc.,dated September 26,2012
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Attachment -Proposed Implementation Matrix
City of Rancho Palos Ve rdes
Information Technology Service Delivery Assessment prepared by NexLevel
Recommendations made by NexLevel Staff's Proposed Implementation Plan
Review of 2008 Organizational Assessment Report
NexLevel Recommendation -1)Carefully review the
Management Partners recommendations that have been
partially completed (Recommendations 13 and 18)in order to
determine a go forward strategy to complete those
recommendations.Note See Below:
NexLevel Recommendation -NexLevel recommends the City The internal comprehensive financial framework of a 5-Year IT
complete a long range IT Strategic Plan [Management Strategic Plan was recently updated and integrated into the
Partner's recommendation 13]for City Council adoption.FY12-13 budget adopted by the City Council on June 5,2012.
Staff will work with the City's independent IT advisor and the
proposed Internal IT Steering Committee,as well input from
the public to establish a formal strategic plan document that
would be presented to the City Council for their approval
along with the draft 2013 CIP in spring 2013.
NexLevel Recommendation -Create a new contract with The Professional Service Agreement ("PSA")between the City
PVNET using a Service Level Agreement format [Management and PVNET will be amended to incorporate more detailed
Partner's recommendation 18].definitions and measurement of service levels before the end
of January 2013.The amended PSA will also incorporate
changes of support provided by PVNET as a result of the
completion ofthe 2012 IT Upgrade.
NexLevel Recommendation -2)At the time the City Staff will investigate other web design and hosting services
undertakes a major website redesign,investigate the costs and when IT services are competitively bid or an when a website
benefits available from other web design and hosting services upgrade is performed,whichever occurs first.
prior to utilizing the existing IT service provider to perform
these services.
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Attachment -Proposed Implementation Matrix
City of Rancho Palos Ve rdes
Information Technology Service Delivery Assessment prepared by NexLevel
Recommendations made by NexLevel Staff's Proposed Implementation Plan
Review of the 2012 IT Infrastructure Plan (2012 IT Upgrade)
NexLevel Recommendation -1)Proceed with a procurement Staff expects to present an agreement between the City and
process to replace approximately 60 desktop computers Dell for the purchase and support of about 60 desktop
identified for replacement.computers in November 2012.
NexLevel Recommehdation -2)Regularly monitor the status Staff will make periodic reports using the weekly
ofthe IT Infrastructure Plan to allocated to its completion by Administrative Report and provide the City Council with a
December 2012.In January,2013,provide the City Council report at the same meeting it presents the amended PSA (in
with a report on the Plan implementation.January 2013 as described immediately above).
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Attachment -Proposed Implementation Matrix
City of Rancho Palos Ve rdes
Information Technology Service Delivery Assessment prepared by NexLevel
Recommendations made by NexLevel Staff's Proposed Implementation Plan
PVNET IT Services Agreement
NexLevel Recommendation -1)If the City Council chooses to As described previously,The Professional Service Agreement
continue receiving IT service delivery from PVNET,the City between the City and PVNET will be amended to incorporate
should enter into discussions with PVNET regarding modifying adequate definition and measurement of service levels before
the current contract for IT support,with the outcome being to the end of January 2013.The amended PSA will also
present to the City Council a revised IT support contract that incorporate changes of support provided by PVNET as a result
incorporates components that are typically contained in IT of the completion of the 2012 IT Upgrade.
support agreements,as detailed in Section 3 of this report.
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Attachment -Proposed Implementation Matrix
City of Rancho Palos Verdes
Information Technology Service Delivery Assessment prepared by NexLevel
Recommendations made by NexLevel Staff's Proposed Implementation Plan
Outsourced IT Service Procurement
NexLevel Recommendation -1)Prior to embarking on a public As described previously,The Professional Service Agreement
bid process for IT services,the City should attempt to amend between the City and PVNET will be amended to incorporate
or renegotiate the current agreement with PVNET,with the adequate definition and measurement of service levels before
goal being to provide a best practices agreement that will the end of January 2013.The amended PSA will also
allow the City to clearly compare services being provided with incorporate changes of day-to-day support as a result of the
costs being paid.completion of the 2012 IT Upgrade.
NexLevel Recommendation -2)If the City Council determines Staff will provide the City Council with a report at the same
that it wishes to proceed with a formal request for proposal meeting it presents the amended PSA (in January 2013 as
(RFP)process for IT services,it should anticipate a minimum described immediately above)and advise the Council whether
12 month timeline as described in Section 4 ofthis report.updated network documentation resulting from the 2012 IT
Upgrade has been completed sufficiently to enable the City to
conduct a competitive process for IT services.
NexLevel Recommendation -3)Prior to embarking on a
formal RFP process,the City should consider the potential for In the event The City Council wishes to conduct a competitive
responses to the City's request,as described in Section 4 of process for IT services,Staff and its IT advisor would conduct
this report.informal meetings with municipal IT providers to ascertain the
likelihood offavorable,cost-saving bids.
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Attachment -Proposed Implementation Matrix
City of Rancho Palos Ve rdes
Information Technology Service Delivery Assessment prepared by NexLevel
Recommendations made by NexLevel Staff's Proposed Implementation Plan
4)Regardless of the direction taken by the City,the folloWing
activities should be completed in order to ensure that the City
is receiving the best value for its IT investment:
NexLevel Recommendation -4a)Establish a formal reporting As described previously,The Professional Service Agreement
of IT service levels and activities -these should be the basis for between the City and PVNETwill be amended to incorporate
every invoice and payment.adequate definition and measurement of service levels before
the end of January 2013.Staff and PVNET will implement a
formal reporting of IT service levels and activities.
NexLevel Recommendation -4b)When procuring new IT Staff will continue to select "off-the-shelf"software and
technologies,seek out solutions that are supported by strong hardware platforms that include support pursuant to a
maintenance agreements that include support of bug fixes and maintenance agreement.
other system issues.
NexLevel Recommendation -4c)Re-evaluate all vendor Staff believes that all significant software and hardware
maintenance agreements.Maintenance agreements should be platforms are supported by qualified IT vendors.
in place to ensure adequate support by qualified individuals.
NexLevel Recommendation -4d)In the event that the City Staff agrees with this suggestion and could provide the City
moves toward bidding out IT services,consider establishing a Council with a cost analysis in the event the City Council elects
minimum on-site staffing requirement for proposers to meet;to conduct a competitive process for IT services.
and/or consider the establishment of an in-house IT support
position to augment any remote support proposal.
NexLevel Recommendation -4e)Require the implementation Staff will research "off-the-shelf"software help desk tracking
of a formal help desk/trouble tracking system to track solutions over the next several months and implement in early
activities being performed and which will provide information 2013 immediately after the completion of the 2012 IT
to report against.Upgrade.
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Attachment -Proposed Implementation Matrix
City of Rancho Palos Verdes
Information Technology Service Delivery Assessment prepared by NexLevel
Recommendations made by NexLevel Staff's Proposed Implementation Plan
IT Service Delivery
NexLevel Recommendation -1)Further evaluate the span of
responsibilities ofthe Director of Finance /IT and consider Staff believes the transfer of airspace noise and safety
options including:a)filling the currently vacant Senior IT responsibilities and public information officer duties (during an
Technician position in the Finance Department to assist with emergency incident)alone are not sufficient to significantly
day to day IT activities;and/or b)reassignment of non-Finance improve the Director's time to adequately manage the IT
/IT responsibilities to another area of City management.program;therefore,requests that the City Council authorize
the City Manager to proceed to evaluate and revise the job
description ofthe vacant Senior ITTechnician and proceed
with a recruitment to retain an IT professional to assist the
Director on a daily basis.
NexLevel Recommendation -2)Complete a formal IT Strategic
Plan that provides a road map for the City's IT related activities,As described above,Staff would utilize an independent IT
and gives the City Council the opportunity to validate the Plan.consultant to advise the City in the preparation of a formal
strategic IT plan and present the draft plan to the City Council
in conjunction the 2013 CIP in Spring 2013.
NexLevel Recommendation -3)Establish an internal IT Staff has already established informal Monday Morning
Steering Committee comprised of representatives from all City meetings to update staff IT users about the 2013 IT Upgrade.
departments.The Committee's responsibilities would include Staff will work with the City's independent IT advisor and the
evaluating potential new IT projects,prioritizing multiple proposed Internal IT Steering Committee and establish a team-
competing IT needs,meeting regularly to receive updates on oriented environment that would also collaborate to establish
the status of IT projects,and communicating information back a draft strategic plan document that would be presented to
to their departments regarding IT related activities.the City Council with the draft 2013 CIP in spring 2013.
Finance &IT staff have previously established upgrade teams
and collaborated with staff in other departments during the
selection process for the Enterprise Resource Planning ("ERp")
system,the forthcoming Recreation system and the past
upgrade of the GIS system.
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Information Technology
Service Delivery Assessment
Report
for
City of Rancho Palos Verdes
Prepared by
Nexlevellnfarmation Technology,inc.
September 26,2012
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Information Technology Service Delivery Assessment
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Information Technology Service Delivery Assessment
Table of Contents
Executive Summary 1
Introduction 3
Section 1 -2008 Organizational Assessment Report Review 5
Section 2 -2012 IT Infrastructure Plan Review 13
Section 3 -PVNET IT Services Agreement Assessment 15
Section 4 -Outsourced IT Service Procurement Considerations 19
Section 5 -City IT Service Delivery Review 23
Section 6 -Recommendations 29
Appendix A -Results of Recent Outsourcing Bids for IT Services 35
Appendix B -IT Service Providers in Other Cities 37
Appendix C-Rancho Palos Verdes IT Documentation Review 39
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Executive Summary
In June 2012 the Rancho Palos Verdes City Council retained the services of NexLevellnformation Technology,
Inc.to conduct an Information Technology Service Delivery Assessment.The City Council's specific areas of
interest included reviewing and providing the status on the IT related recommendations resulting from the 2008
Management Partners Organizational Assessment;reviewing and providing the status on the City's 2012 IT
Infrastructure Plan,reviewing the existing agreement with the City's IT service provider,and making
recommendations related to a potential competitive bid process for IT services.NexLevel performed
assessment activities from June -September 2012,and the results of the Assessment are contained in the
attached report.The report contains detailed information and supporting data regarding each area ofthe
Assessment,along with a section of recommendations.After completing the Assessment,NexLevel met with
executive staff at the City to discuss our findings,in order to ensure that the report was factually accurate and
represented the current state of IT at the City.As a result of these discussions,further research was conducted
and additional factual information was incorporated into the report.Presented below is a high level summary of
our findings and recommendations.
Status of IT Related Management Partners 2008 Organizational Assessment Recommendations
In 2008,Management Partners was engaged to perform an Organizational Assessment ofthe City.The results
ofthe 2008 study reported 241T related recommendations.As part ofthis assignment,NexLevel reviewed the
2008 Organizational Assessment and found that the City has implemented 19 of the 241T related
recommendations provided in the 2008 Assessment.Of the 5 remaining that have not been implemented,3
were not completed based on City Council direction to staff,leaving 2 recommendations not implemented by
staff.Of the 2 not implemented,1 relates to the bidding of email services,which has since been transitioned to
an industry standard solution (Microsoft Exchange),while the second recommendation relates to web design
and hosting,which should be explored when the City embarks on a major website redesign.
Status of 2012 IT Infrastructure Plan
NexLevel reviewed the IT Infrastructure Plan that was adopted by City Council on November 1,2011.The Plan
provided a strategy for the procurement and installation of needed hardware and software to improve IT service
delivery for the City.The four major milestones of the Infrastructure Plan include the purchase and installation
of Microsoft enterprise software licensing and assurance agreements;migration of data servers to a virtualized
environment;replacement ofthe Cisco call manager server and software with Microsoft Exchange and Lync
unified communications;and the replacement of most desktop computers and migration to Office Professional
2010.These four items represent important milestones in providing efficient and effective IT services to the
City.It should be noted that,as a part ofthis Assessment,NexLevel conducted an online user satisfaction survey
of City employees,which identified deficiencies in computer hardware and overall network performance.The IT
Infrastructure Plan underway will address each ofthe areas that users found deficient;thus validating the
appropriateness of the Plan.
o After reviewing the status of the IT Infrastructure Plan,NexLevel found that the four milestones of the plan are
significantly complete,and that staff expects all components ofthe Plan to be in place by December 2012.
Implementation ofthe Plan will improve IT service delivery and staff efficiency,therefore NexLevel recommends
the City complete the Plan.
IT Service Delivery Agreement
The third area of the NexLevel Assessment focused on the current agreement for IT service delivery
between the City and Palos Verdes on the Net (PVNET).NexLevel conducted a thorough review of the
current agreement,including comparing the agreement with those of other municipalities,and
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comparing it against what is considered best practices for IT service delivery agreements.While the
City made significant improvements to the prior IT service delivery agreement when the latest
agreement was approved in November 2011,NexLevel believes there are areas where the agreement can be
further improved.Section 3 ofthis report contains additional detailed information regarding areas to
strengthen the current IT service delivery agreement.
Competitive Bid Process for IT Services
The final area of the NexLevel Assessment addresses the potential of conducting a public bid process for IT
services.NexLevel has provided significant information in Section 4 ofthis report regarding a bid process and
recommendations that the City Council carefully consider these factors when considering conducting a
competitive procurement for IT services.While NexLevel believes that the most reliable method to determine a
competitive price for IT services is to go out to bid,it should be noted that conducting a bid process will not
ensure that the City will pay less for its IT services than what it is paying today.In fact,we believe that the City is
receiving a quality service for the price it is paying,and bidding the services out may result in a higher overall
cost to the dty.
Prior to embarking on a public bid process for IT services,NexLevel recommends the City begin the process of
amending or renegotiating the current agreement with PVNET.An agreement that more clearly defines service
levels,measurements of service delivery,and reporting requirements will provide the City with a more clear
depiction of the quantity and quality of IT service it is receiving.It will also create a baseline of historical
information that will assist the City in a future IT service delivery procurement.
City IT Service Delivery
In the course of conducting this Assessment,NexLevel had the opportunity to gather input and feedback from
the City Council,staff,and the City's IT service provider PVNET.While the results of this information gathering
identified areas where the City's IT service delivery could be improved,we found that the overall IT functions at
the City are being operated in an efficient manner.The Director responsible for IT is knowledgeable and
dedicated,and has made sound recommendations to improve the current operations and provide the tools
needed for staff to conduct their jobs.However,we also found that the scope of responsibilities of the Director
of Finance /IT is significant,and may be impeding his ability to focus on IT matters.Our recommendations
include consideration of reassigning some duties currently under the Director's responsibilities,and filling a
currently vacant position to assist the Director with day to day IT management.
Throughout the Assessment process,NexLevel found the Rancho Palos Verdes staff to be professional,
dedicated and forthcoming in our interactions.We appreciate the opportunity to work with the City,and are
hopeful that the information contained in this report will assist the City Council with future decisions regarding
IT service delivery at the City.
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Introduction
On April 11,2012,the City of Rancho Palos Verdes (RPV)issued a request for qualifications (RFQ)seeking an
Information Technology (IT)consulting firm to provide expert IT advice and assistance on the following activities:
~Assess and provide a status on the recommendations from the 2008 Management Partners
Organizational Assessment Report as it relates to the City's IT systems
i'Assess and provide a status on the progress of the 2012 Information Technology Infrastructure Plan
~Assess and provide recommendations on the existing IT Service Plan between Palos Verdes on the Net
(PVNET)and the City
'*'Provide recommendations related to the process,tasks,and timeline of conducting a competitive
procurement for outsourced IT services
The RFQ originated as a result of discussion at the City Council meeting of February 7,2012.At that meeting,
City staff presented a report to the City Council that provided an overview of the current professional/technical
services agreement between the City and PVNET.At the conclusion of the staff presentation,the City Council
discussed a variety of topics related to the City's IT services such as the agreement with PVNET and the overall
cost of IT services.
On June 5,2012,the City Council awarded a contract to Nexlevellnformation Technology,Inc.,(Nexlevel)to
conduct an assessment of the City's IT services.To complete the assessment,Nexlevel conducted the following
activities:
i'Held a project kickoff meeting with the City's Director of Finance and Information Technology to confirm
objectives,review assessment approach,identify participants,and finalize the schedule of activities
~Conducted an online User Satisfaction Survey available to all City technology users
i'Facilitated workshops to gather input from City staff on the following:
o Satisfaction with IT service delivery
o Satisfaction with PVNET's IT service delivery and support
o General knowledge regarding the status of various IT related activities
o Status of the Management Partners report IT recommendations and the IT Infrastructure Plan
+Met with PVNET Director Ted Vegvari and PVNET Manager Sean McKee to obtain background on the
history of PVNET and the services provided to the City.This discussion explored topics such as types of
services provided,structure of PVNET,and the methods used to deliver services
i'Held follow up discussions with PVNET and staff to clarify,verify,and gather additional information
+Conducted face-to-face or telephone interviews with all five City Councilmembers,including Mayor
Anthony Misetich,Mayor Pro Tem Brian Campbell Council member Jerry Duhovic,Councilmember Susan
Brooks,and Councilmember Jim Knight.The meeting with Mayor Pro Tem Campbell was also attended
by Mr.Ken Delong.During these discussions,the Councilmembers prOVided input regarding IT service
delivery to the City,including costs and quality of services prOVided.Councilmembers also discussed
their expectations regarding the IT assessment,and indicated that their primary interest was in receiving
a fact-based report to be utilized in making future decisions about the delivery of IT services to the City.
The remainder of this report prOVides the findings and recommendations as a result of the above efforts.
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Section 1 -2008 Organizational Assessment Report
Review
In 2008,the City hired Management Partners,a management consulting firm,to conduct a citywide
Organizational Assessment.The Assessment examined a number of areas in the City and the final report,titled
Organizational Assessment,provided recommendations focused on improving or enhancing existing City
operations.A section of the Organizational Assessment Report focused specifically on the City's IT management
and service delivery.The report included 24 recommendations related to IT management and service delivery.
NexLevel completed a review ofthe Organizational Assessment Report,and then met with City staff and PVNET
to gather input on the status of each recommendation.Based on our analysis,the City has implemented or is in
the process of implementing 19 ofthe 24 recommendations,with 2 recommendations not completed and 3
recommendations not pursued based on City Council direction;thus,22 of the 24 original recommendations
have been acted on.Of the two remaining,one (#20 -bidding for email services)is no longer necessary due to
the City's acquisition of Microsoft Exchange for email services.The remaining recommendation (#21-bidding
for web development and hosting)is recommended to be done when the City performs their next major website
redesign.
Table 1 identifies the 24 recommendations and prOVides a brief discussion of the status of those
recommendations.The recommendation numbers in the table refer directly to the numbering format in the
Management Partners Organizational Assessment Report.For the recommendations that have not been
completed by the City,NexLevel has provided our recommendation as to next steps.
Table 1-Organizational Assessment Recommendation Status
#Report Recommendation,Status,and Discussion
3.Recommendation -Plan and budget for the replacement of the financial system.
Status -Completed
Discussion -Replacement of the financial system was included in the FYll-12 budget,and procurement
activity is underway to replace the existing SunGard HTE system.To date,the City has issued a request
for proposal (RFP),reviewed vendor proposals,and invited vendors to conduct onsite demonstrations.
The City is currently negotiating with the finalist vendor.
4.Recommendation -Outsource payroll processing to a skilled and experienced payroll processing
company.
Status -Completed
Discussion -The City utilizes the web hosted payroll services provided by ADP to fulfill the City's payroll
needs.The City's plan is to continue using ADP in the future to assist in compliance issues with regard
to new laws that affect payroll,and to prOVide for uninterrupted payroll processing in the event of a
disaster.
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#Report Recommendation,Status,and Discussion
8.Recommendation -Actively seek additional technology partners for new jobs and acquisitions.
Status -Ongoing
Discussion -The City has actively sought out additional technology partners for new jobs and
acquisitions.The following are some recent examples:
o Calsoft,a local privately owned Microsoft partner,provided implementation support for the
implementation of a firewall,along with the configuration of the Dell virtual machine
o Nexus IS provides voice communication advisory and support services
o Dyntek,an international professional technology solutions prOVider,prOVided an
independent review ofthe IT Infrastructure Plan before the project was presented to the
City Council.In addition,they have assisted with the implementation of mobile
communication devices
o GFOA (Government Finance Officers Association)is assisting with the procurement of a
new enterprise-wide financial system solution
9.Recommendation -Separate the City's IT assets from those of PVNET.
Status -Completed
Discussion -This recommendation required the upgrade of a primary firewall,and physical separation
of the file servers.The firewall project was completed in 2009.The City-owned servers are now
located in the City Hall server room.
10.Recommendation -Review all existing technical documentation for sufficiency.
Status -Completed
Discussion -Staff completed a review of documentation,and NexLevel verified the documentation is in
good order.A complete listing of documentation reviewed is contained in Appendix C of this report.
11.Recommendation -Develop a general IT policy,which supports the use of commercial applications over
custom ones except where compelling reasons exist.
Status -Completed
Discussion -The City has adopted this policy as a standard when considering new technology.The
City's recent procurement effort to replace the existing SunGard HTE financial system provides an
example where the City only focused on proven COTS (commercial off the shelf)solutions.
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12.Recommendation -Obtain the unrestricted right to use licenses for custom applications developed by
PVNETforthe City.
Status -Completed
Discussion -The existing PVNET Professional/Technical Services Agreement,which was approved by
Council on November 15,2011,includes the follOWing language in Section 1.3 to address custom
application licensing.The specific language follows:
"CONSULTANT has developed proprietary computer programming codes used in connection with various
software,including,but limited to,Microsoft SQL,Cold Fusion,and Java Script,which are operating on
servers owned by CONSULTANT and utilized in the delivery ofservices to the CITY,including,but not
limited to,website services,the Listserver system,the emergency notification system,the Emergency
Incident Management System,the GIS System and the Inventory Management System.CONSULTANT
retains ownership ofsuch proprietary computer programming codes and grants a user license to CITY for
these codes and programs provided by CONSULTANT during the term of this agreement."
NexLevel recommendation -Future IT outsourcing agreements should contain standard licensing and
intellectual property rights clauses.
13.Recommendation -Develop a strategic plan during the next year for information technology services
using independent consulting services.
Status -Partially completed
Discussion -While the City does not have an adopted formal IT strategic plan that identifies and
prioritizes current and future IT initiatives to provide gUidance to the City,a draft IT strategic plan has
been developed,and has been integrated into the fiscal year 2012-13 City budget.
NexLevel recommendation -NexLevel recommends the City complete a long range IT Strategic Plan for
City Council adoption.
14.Recommendation -Replace component built server computers with major brand computers as
replacements are necessary.
Status -Completed
Discussion -At the time the Organizational Assessment Report was published,the standard operating
procedure was for PVNET to assemble servers and desktops from purchased components.As the
Organizational Assessment Report noted,the PC markets changed in the late 1990's and major
manufacturers such as IBM,Hewlett-Packard and Dell compete directly with small providers prOViding
preconfigured servers and desktops.Key advantages to purchasing preconfigured systems from a major
manufacturer include the ability to obtain warranties and maintenance support.
Currently,the City is standardized on Dell file servers,and purchases Dell desktop computers.
.15.Recommendation -Make IT purchases through City processes.
Status -Completed
Discussion -City staff initiate purchase orders for technology purchases using City purchasing
procedures.
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16.Recommendation -Develop a comprehensive inventory of software licenses owned by the City.
Confirm the City is licensee on all license documents and move all license documents to the City's
offices.
Status -Completed
Discussion -The City has confirmed software ownership and provided the documentation identifying
City-owned licenses.This documentation identifies software licenses for Microsoft,McAfee,AutoCAD,
CoreLogic,Adobe,ECS Support,the Sonicwall firewall,and Verizon FIOS Internet Connectivity are in the
City's name.
The City also recognizes that staff uses PVNET developed software in its daily operations.The City has
obtained documentation from PVNET granting software licensing and ownership rights to the City,
including but not limited to the follOWing:web interface for credit card payment of business license tax,
archived streaming video content and agenda linking system,website interface and content delivery
system,breaking news and notification system,Listserv,inventory system,incident management
system for EOC,GIS cluster mapping system for EOC,non-emergency resident service request
management system,spotlight web information tool (website),and City news and events notification
system (website).The documentation includes the statement that these custom applications may be
used and modified as needed by the City without restriction at no cost to the City or taxpayers.
17.Recommendation -During the next market review ofthe City's telephone services,include the
evaluation of costs and benefits of independent Internet services with a view of having all City
telecommunication services under City control.
Status -Completed
Discussion -The current telephone and internet service provider (ISP)services are under the control of
the City and managed by the Director of Finance /IT.
18.Recommendation -Create a new contract with PVNET using a Service Level Agreement format.
Status -Partially completed
Discussion -The City established a new contract with PVNET that was approved by the City Council on
November 15,2011.However,as indicated in Section 3 ofthis report,the current agreement should be
amended to provide adequate definition and measurement of service levels.Section 3 prOVides the
results of a detailed review of the existing contract and makes recommendations for further
improvement.
19.Recommendation -Initiate a public procurement process for IT support services in approximately one
year,follOWing the completion oftasks related to providing appropriate separation of IT organizations
and equipment.
Status -Not completed based on City Council review of Organizational Assessment recommendations.
Discussion -The City has not initiated a procurement process for IT support services at the time of this
report.After Management Partners presented their recommendations to the City Council,staff
regularly updated the Council on the status of the recommendations.Over the course of those
updates,the City Council did not direct staff to proceed with a public procurement process for IT
support services.
NexLevel recommendation -NexLevel recommends the City consider the information contained in
Section 4 of this report regarding IT outsourcing.Section 4 includes process recommendations and
suggested high-level timelines for a public procurement process for IT support services.
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20.Recommendation -Release public bids in the next fiscal year for E-Mail if the service market research
indicates E-Mail service from an independent provider is more cost effective.
Status -Not completed
Discussion -At the time of the Organizational Assessment Report,PVNET provided the City with hosted
email service.As a part of the IT Infrastructure Plan approved by the City Council on November 1,2011,
the City has procured Microsoft Exchange licenses that have been installed on City owned hardware.
Accordingly,the City's monthly PVNET support cost has been reduced.
NexLevel recommendation -The City has implemented,via the IT Infrastructure Plan,an alternative E-
mail system solution.NexLevel believes the Microsoft Exchange solution is appropriate and therefore a
public bidding process for E-mail services is not warranted.
21.Recommendation -Investigate the costs and benefits available from other web design and hosting
services as part of the next major website redesign.
Status -Not completed
Discussion -While the City's website,which was developed and is supported by PVNET,has not had a
major website redesign since the Organizational Assessment Report,it recently underwent a
refreshment effort.The City has not investigated the costs and benefits of implementing a hosted
website solution.
NexLevel recommendation -NexLevel concurs that,as part of any future major website redesign,the
City should explore all available options for website design and hosting.Leading website solution firms
that service many California public agencies offer sophisticated solutions tailored to the unique needs
of public agencies.In addition,many solutions employ user friendly content management systems
(CMS)that allow department staff to update website content directly without the need for technical
resources.
22.Recommendation -Phase out Real Video service to reduce operational costs.
Status -Not completed at the recommendation of staff and concurrence of the City Council
Discussion -Staff expressed concern about the cost and time needed to convert files from the existing
Real Video format.The recommendation to reduce conversion costs by eliminating the link from
individual agenda items (thus providing only a single video file for an entire Council meeting)is viewed
as a limitation to the service.To view video files from the City's web site,Real Player or Windows
Media Player is required.
After Management Partners presented their recommendations to the City Council,staff regularly
updated the Council on the status of the recommendations.Over the course of those updates,the City
Council concurred with staff's recommendation regarding this item,and directed staff not to proceed
with the phase out of Real Video service.
NexLevel recommendation -Streaming video services provided by cities include video links to
individual agenda items.Implementation ofthis recommendation would result in a reduction of
services provided to the community.
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23.Recommendation -Implement alternative,less costly web-streaming video and/or agenda and
document support.
Status -Not completed at the recommendation of staff and concurrence of the City Council
Discussion -The Organizational Assessment Report offered the following options for video service
reductions and the approximate annual savings:
•No video streaming support of meetings ($18,000 annual savings)
•Single video file,not linked to agenda items ($12,000 annual savings)
•Provide no links from agenda to reports ($9,000 annual savings)
The suggested reductions to the level of streaming video service and/or agenda and document support
were not made.After Management Partners presented their recommendations to the City Council,
staff regularly updated the Council on the status of the recommendations.Over the course of those
updates,the City Council concurred with staff's recommendation regarding this item,and directed staff
not to proceed with implementing alternative web-streaming video solutions.
NexLevel recommendation -The Organizational Assessment Report recommends reducing the level of
streaming video service that has historically been provided to the community and that are typically
offered with streaming video services.Consideration of the cost of these services to the value of
services provided to the community should be explored before decisions to reduce costs by limiting
service are made.
24.Recommendation -Regularly audit the City's website for errors and stale information.
Status -Ongoing
Discussion -Each department has 1-2 people responsible for reviewing their department's web pages.
Staff indicated that PVNET is proactive,and reports any items that appear to be out of date to the
person responsible in the department.
Staff reported the website was recently refreshed and improvements were made.The City's quarterly
activity gUide contains links to,for example,register for a tennis class with a click while reviewing the
tennis class description.
25.Recommendation -Obtain and implement an independent Internet domain for City use.
Status -Completed
Discussion -The City has obtained the rights to the domain www.RPV.com.and plans to pursue
securing other similar site addresses.
26.Recommendation -Use independent network engineering consulting services to obtain advice
regarding the costs and benefits of proposed network design in a large scale upgrade or replacement
programs.
Status -Ongoing
Discussion - A recent example of implementing this recommendation was the City's use of Dyntek to
perform an independent review ofthe IT Infrastructure Plan that was presented to City Council on
November 1,2011.
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27.Recommendation -Continue the periodic evaluation of emerging data communications offerings such
as Internet trunking.
Status -Ongoing
Discussion -The City utilizes an independent communications consultant to periodically evaluate
emerging data communications offerings.
28.Recommendation -Continue to add remote sites to VolP services as the opportunity arises to install
fiber optic cable to the City's backbone or improve leased data services capable of supporting VolP
traffic.
Status -Ongoing
Discussion -PVNET assisted the City with installing fiber connectivity from the Interpretive Center to
City Hall when the facility was upgraded.Through a federal and state grant,a current project to
synchronize traffic signals on Hawthorne Blvd.to the City limits may provide the opportunity to include
dark fiber.With connectivity from the buildings at Hesse Park and possibly Ryan Park to the fiber in the
street,these facilities could be added to the City's fiber optic network backbone.
35.Recommendation -Engage a consultant experienced in the configuration ofthe Accela Tidemark
product to make improvements and configure it as necessary to make it an effective tool in managing
the development permitting process.
Status -Completed
Discussion -Staff from the Community Development Department worked with the software vendor and
PVNET to develop the necessary reporting tools to help monitor the workload and performance in the
permitting area.
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Section 2 -2012 IT Infrastructure Plan Review
On November 1,2011,the City Council approved an IT Infrastructure Plan that established four major
milestones to be implemented over an approximate six month period.The Plan recommendations aim to
improve IT service delivery and staff efficiency,along with establishing appropriate software licensing and
support agreements.
The City Council requested that NexLevel review the 2012 IT Infrastructure Plan and provide a status of the
components of the Plan.To complete the review,NexLevel reviewed budgets and planning documents,and
interviewed City staff about the IT Infrastructure Plan activities.At a summary level,NexLevel found that each
of the components of the Plan are either complete or in process of being implemented.
Table 2 identifies each of the four major components of the Plan and provides a status for each component.
Table 2 -IT Infrastructure Plan Component Status
#Infrastructure Plan Item,Status and Discussion
1.Item -Purchase and execution of Microsoft enterprise-wide license and software assurance agreements,
followed by phased software and hardware deployment.
Status -Completed
Discussion -The purchase of the Microsoft enterprise-wide license and software assurance agreements is
complete and working as intended.
2.Item -Migration of dedicated data servers to a virtualized high availability (redundant)server
configuration with the purchase of a Dell virtual machine ("VIM").
Status -90%completed -estimated completion October 2012
Discussion -The following services were migrated from dedicated physical servers to virtual servers:
Laserfiche document management,file server,print server,Microsoft Windows System Update Server,
WatchTower performance monitoring,file transfer protocol (FTP),and SonicWALL ViewPoint firewall
reporting.
The Accela permitting application currently remains on a standalone server.PVNET is in the process of
working with the application vendor to complete the migration of the Accela Permitting System.
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#Infrastructure Plan Item,Status and Discussion
3.Item -Replacement of the Cisco call manager server and software in conjunction with the migration from
the Cisco voice messaging system (commonly known as the City's Cisco Voice over Internet Protocol phone
system)to Microsoft Exchange and Lync unified (voice,video conferencing and email)communication
system.
Status -75%completed -estimated completion December 2012
The following project tasks are complete:installation of Microsoft Exchange and Microsoft Lync;
migration of users from PVNET hosted email to Microsoft Exchange.
Migration of users from the previous Cisco voice system to the new Microsoft Lync voice and unified
communication system is in process and the estimated completion date is December 2012.
Discussion -Ten staff members were identified to participate in piloting the new voice and messaging
system and to assist with training and supporting the remaining staff.Voice services for the ten staff
members in the pilot group were migrated to the new system.
Migration for the City Clerk and City Manager Departments is scheduled to be complete in early October.
Migration for the Community Development,Public Works and Recreation and Parks Departments will
follow the City Clerk and City Manager,and migration is expected to take 2 weeks for each department.
The project also includes new consoles and operator training for the front desk attendants and other call
handlers,and this training is expected to be completed during October 2012.
To provide full functionality,the Microsoft Lync application requires the current version ofthe Microsoft
Office application and operating system.Approximately 60 older desktop computers are at end of life and
cannot be upgraded to Windows 7 or Office 2010.(See item 4 below.)
4.Item -Replacement of most desktop computers and migration to Office Professional 2010.
Status -Not completed -estimated completion December 2012
Discussion -NexLevel recommends the City proceed with a procurement process to replace
approximately 60 desktop computers identified for replacement.
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Section 3 -PVNET IT Services Agreement
Assessment
NexLevel completed a review of the existing PVNET agreement that was approved by the City Council on
November 15,2011.PVNet first began providing IT support services to the City in 1998,and since that time the
scope and complexity of services provided has been modified to meet the needs of the City.
The intent of the November 15,2011 two-year agreement was to formalize the relationship between PVNET and
the City in terms of services,ownership,pricing,and service levels.The new agreement succeeded in increasing
the formality to the relationship between the City and PVNET.Based on NexLevel's review,the agreement could
be further strengthened to align with IT outsourcing agreement best practices in the areas identified below.As
opportunities present themselves (i.e.amendments,re-negotiations,or IT services procurement),the City
should seek to further improve the agreement.
If the City Council chooses to continue receiving IT service delivery from PVNET,the City should enter into
discussions with PVNETwith the goal to implement mutually agreeable agreement language to address the
items presented below.It should also be noted that if the City chooses to release an RFP for IT services,then
these same items should be included as part ofthe RFP.
Service Description and Service Level Expectations
The following bullets identify opportunities to further improve the existing agreement in terms ofthe
description of services and service level expectations:
~The agreement should include more detail with regard to the specific services provided in the fixed
monthly fee.A more detailed description of the services improves the City's ability to evaluate services
and service levels.The agreement should include clearly defined service definitions and associated
service levels for each base service.The agreement should clearly outline the services,service levels,
resources,and software/solutions that are covered.
'*'The agreement should include formal reporting requirements to validate service levels and monthly
invoicing.Reporting requirements are essential to monitoring and validating services prOVided and
service levels.At a minimum,the agreement should require a monthly reporting methodology to
provide basic metrics for base services (i.e.website,help desk,server support,email,and GIS),as well as
information related to "additional services."
~The agreement should formalize the methods for handling "additional services"by establishing
processes to request,approve,and confirm the receipt of additional services.While the City has
processes in place to handle "additional services",the agreement does not clearly identify a uniform
method for handling new requests.It is recommended that the City implement a formal task order
approach where each "additional service"is documented as a task order for approval.The task order
should clearly identify the scope of work,estimated level of effort,roles and responsibilities,and
timeline for completion.Once approved by the City,the task order completion (i.e.what was done)
should be documented and approved by the City prior to payment.Monthly invoices should clearly
identify payments by task order.
~Exhibit A of the agreement should be focused specifically on the vendor's scope of work.As it stands
today,it does not clearly articulate PVNET's responsibilities.Exhibit A uses terms like "manages",
"some","most","certain"-the agreement should be specific and avoid general terms as it makes it
difficult to know what the actual commitment is or which party is accountable.NexLevel recommends
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the IT services scope of work be organized around the following major categories of work;Management
and Administration,Project Management Services,Help Desk Services,Desktop/Mobile,Services,
Operations Services,Infrastructure Services,Application Support Services,and Voice Support Services.
<t The agreement can be improved to more clearly address roles and responsibilities related to
maintenance agreements and vendor management.It is clear that PVNET interacts directly with
vendors for problem resolution and project management responsibilities;however,the extent of their
authority and responsibilities should be clearly defined.In some cases the vendor management
responsibility is the City,or PVNET,or both.
;$>The agreement can be improved to establish formal documentation standards (i.e.network diagrams,
configurations,settings,procedures,processes,change management,security,software license
management,inventories,etc.).The agreement should establish this as a core responsibility and
establish update frequency.
;$>The staff report (11/15/2011)indicates that from "time to time"PVNET prOVides pro-bono services (i.e.
wiretess internet services at the Civic Center and PVIC,access to training facilities,and development of
the Listserv system).These items should be identified in the contract,even if they are prOVided for free.
<t Exhibit C could be improved to follow best practices in terms of IT service levels (Service Level
Agreement).Exhibit C lacks adequate criteria for service levels,measurements/metrics,criteria,
resolution {if service level lacking},escalation,etc.In addition,Exhibit C should include reporting
requirements that demonstrate service levels are being met and include consequences if service levels
are not met or maintained.Service levels that should be considered for this agreement include;Asset
Management,Capacity/Performance Management,Change Management,Configuration Management,
Disaster Recovery/Business Continuity,IT Governance,Physical Security,Policy and Procedures,Project
Management,Reporting,Training,Data Protection and Management,Data Network Management,Data
Security Management,Application Support Management,Help Desk,Website Support,Telephony
Services,and IT Operations {i.e.system and network availability}.
PVNET Staffing
The City staff report dated November 15,2012 that accompanied the PVNET agreement approval identified the
PVNET staffing level.However,the agreement does not include any specific staffing level requirements.Based
on the online user survey conducted by NexLevel,it appears that the City users are satisfied with the basic IT
services.The agreement could be strengthened to increase transparency and accountability by including any
mandatory staffing level requirements and establishing regular reporting requirements that align with monthly
invoicing.
The following bullets identify areas the City should consider as new or amended agreements are put in place.
;$>The agreement should establish basic staff technical experience and/or competencies.The City should
evaluate the value of establishing minimum standards for education,training,and certifications for
assigned staff.If minimum standards are established,the City needs to carefully assess the impact on
existing staff that have proven their ability to prOVide support.
;$>The agreement should be more specific in terms of background check requirements and methods for
completing background checks.The City should have the right to review all resources that are assigned
to the City.
<$The IT service prOVider should be reqUired to present for review all staff and subcontractors assigned to
perform work for the City.Agreement clause "6.7 Assignment"includes some language on this but it
should be a separate section from contract assignment.The City should be involved in the selection
process and be the final approval before a resource is allowed to work on City systems.
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General Contract Provisions
The following bullets identify additional general agreement terms and conditions that should be addressed in
any subsequent agreement negotiations:
~The agreement includes insurance clauses for General Liability,Automobile,and Workers
Compensation.As opportunities present themselves,the agreement should be expanded to include
professional liability and/or errors and omission (E&O)coverage.
'*'The agreement should require that all subcontractors be identified prior to commencing work on the
City's systems.In future agreements,the City should clearly establish what agreement terms and
conditions need to be pushed down to the subcontractors to adequately protect the City.
~The agreement should include detailed listing of all inventories (hardware,software,facilities,
equipment,etc.).References included in the scope of work currently are general and not specific
enough.
'*'The qgreement should clearly identify work environment requirements.As an example,who is
responsible for providing work environment (Le.office space,furniture,equipment,power,etc.)?
~The agreement should include a confidentiality clause related to the City's data and assets.This is
necessary considering the City's delegation of day-to-day management ofthe IT infrastructure (i.e.
hardware,software,databases,files,etc.).The agreement should require the vendor staff and their
subcontractors sign a confidentiality agreement prior to working on the City's systems.
~The agreement could be strengthened by including "dispute resolution"language or "audit,inspection,
and examination of records"clauses.The agreement should clearly define responsibility for maintaining
adequate records and the ability to audit vendor records.
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Section 4 -Outsourced IT Service Procurement
Considerations
The City Council requested that NexLevel provide input and recommendations regarding the timing and nature
of a potential competitive bid process for City IT services.Based on other similar IT outsourcing procurement
efforts,the City should expect the procurement process to take a minimum of 10 -12 months to complete.It
should be noted that as a result of information gathering efforts related to this report,the City may be able to
accelerate the timeline,because much of the needed documentation and information for a strong RFP is now
readily available for inclusion in a bid process.
While the most reliable method to determine the competitive price for IT service is through a well-executed
procurement,based on NexLevel's research,we are not convinced the City would yield significant cost savings if
the IT services were put out to bid.Table 3 provides information on IT service costs in cities similar in
characteristics to RPV.
The benefits of completing a competitive procurement include providing the City an opportunity to establish a
stronger IT services agreement,as well as,providing the opportunity to consider service delivery alternatives,
which may include remote user support rather than onsite user support.
Suggestions to improve the agreement language between the City and PVNET are provided in Section 3 of this
report.We believe the City should re-negotiate the existing agreement with PVNET,incorporating the
modifications presented in Section 3,and if PVNET is not willing to do this at the current cost,then the City may
wish to consider conducting a procurement in order to achieve a stronger agreement and the ability to tie
performance to payments.
NexLevel recommends that the City Council carefully consider the impact on the organization of the issuance of
an RFP for IT services prior to directing staff to proceed.Specific considerations /impacts are presented after
the anticipated timeline information below.
NexLevel anticipates the follOWing timeframe for an RFP process:
~Month 1 -2-Formalize and document the City's IT service level requirements
~Month 2 - 3 -Develop RFP document (includes clearly defining services,service levels,etc.)
1>Month 4 - 5 -Release RFP to vendor community
~Month 6 - 8 -Evaluate vendor proposals and make selection (including subsequent clarification
interviews,reference checks,site visits,etc.)
~Month 9 -12 -Complete agreement negotiation
The RFP activities require a significant (minimum 12 month)commitment of staff time as well as familiarity with
RFP IT outsourcing procedures to effectively manage the process.In consideration of current City staff
assignments,outside services would likely be required to support the creation and issuance of the RFP,oversee
the RFP process,proposal evaluation,vendor selection and agreement negotiation.This represents a cost to the
City,and the results of the RFP may not result in a lower cost for services.
The transition from the current agreement to any new agreement (including if PVNET continues to be the
provider)will require a 2- 4 month transition.Due to the complexity and risk of SWitching IT service providers,
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the transition must be carefully planned and executed.To minimize risk of IT service interruption,it will require
significant focus by City staff and a commitment of the outgoing vendor to share knowledge and expertise.The
City should be aware that even ifthe City stays with PVNET,PVNET will require a transition period to implement
the terms of a new agreement,such as service levels,reporting,etc.
IT Outsourcing Vendor Market (Southern California)
Many Southern California local government agencies have been successfully using IT outsourced services for
years.As a result,the City should anticipate vendor community interest if the City chooses to go out to
procurement.Because ofthe size of Rancho Palos Verdes,many ofthe large traditional public sector
outsourcers (Le.Unisys;Xerox/ACS;HP/EDS;SAIC;etc.)may have limited or no interest unless the City accepts a
remote services model.Smaller,regional public sector focused IT service prOViders will offer attractive options
but will likely also desire the flexibility to offer a remote service approach.The final group of service delivery
vendors would be local companies,like PVNET,that have the capability to service the City's IT services.
However,these organizations may not bring the experience,expertise,tools,depth of staff,and best practice
processes of the traditional IT outsourcing vendors that service public agencies.Appendix B of this report
prOVides information regarding California public agencies utilizing outsourced IT service prOViders.
The City should also consider these other factors if the City wishes to move forward to solicit bids for IT services:
'*'PVNET provides the City access to several proprietary products/services that run on PVNET servers.
These would need to be identified to determine ifthey would be transitioned to a new prOVider,or if
the City would incur ongoing expenses related to licensing and maintenance.It appears most of the
proprietary software is related to the website which was custom developed for the City using Cold
Fusion/Java Script.In addition to the website,proprietary systems include the emergency notification
system,emergency incident management system,GIS system,and inventory management system.
Appendix B of this report presents the range of IT services and related costs prOVided by IT outsourced
providers to cities with similar populations to Rancho Palos Verdes.
~The City will need to evaluate factors including potentially moving to a virtual ("cloud")environment;
relying primarily on remote (versus on-site)IT support;and accepting a limited on-site presence.These
are important considerations given that the current IT support model prOVides strong on-site support
versus a service center or shared support structure.
~If the City decides to go to procurement of IT outsourcing services,the City will first need to define and
agree on transition and ownership issues with PVNET.This needs to be agreed upon prior to the RFP
release,so that other vendors can prOVide a responsive bid.
$The City's February 7,2012 staff report regarding IT services suggests that a bid process,if any,for IT
services should be phased and separated for website services,help desk support,IT infrastructure
support,and GIS services.While this is an alternative to consider,it is recommended that the City
consider keeping the vendor environment to a minimum.A multi-vendor environment for the City will
be more difficult to manage and require an increased level offocus by City staff.In addition,a multi-
vendor environment makes it more difficult to obtain economies of scale or leverage to help reduce
costs.
'*'The specific timing of any bid process should be carefully considered in terms of the ongoing IT
Infrastructure Plan implementation.The City should time the bid process such that it falls after full
implementation of the Infrastructure Plan,including the related documentation on the Plan
components.This will help ensure that prospective bidders are fully knowledgeable about the IT
environment at the City.
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Appendix A ofthis report provides a table with the results from other municipalities of recent outsourcing
bids for IT services.The information contained in the table demonstrates the breadth of services provided
and the variety of responses from vendors,and reiterates the need for the City to clearly define its goals and
expectations for IT service delivery before embarking on an RFP process.Appendix B of this report provides
information about other California cities that are currently outsourcing their IT service deliver.
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Section 5 -City IT Service Delivery Review
This section aims to provide an overview ofthe City's current IT service delivery environment.While the
information in this section was not specifically identified in City's IT Service Delivery Assessment RFP,it was
necessary for NexLevel to gather and assess this information to complete the report.
RPV IT Structure
The City's IT services are managed by the Director of Finance and Information Technology.The Director is
responsible for the administration ofthe PVNET agreement and the day to day provision of IT services to City
staff and the public.These responsibilities include the ongoing maintenance and support of a variety of systems
including automated permitting and recreation systems,the City's financial management system,and a
Geographic Information System (GIS).Additional responsibilities include support for the City's network
computer system and related hardware,telephone system,document imaging system,and all hardware and
software necessary to operate the various IT systems.In addition,the City operates a website that prOVides
comprehensive information to the public,including access to most public documents.
The City prOVides IT support services to the organization through a contractual arrangement with Palos Verdes
on the Net (PVNET).PVNET prOVides personnel to support the various IT systems utilized by the City,and to
develop and modify software platforms to enhance staff efficiency in the provision of services to the publiC.
The City retains responsibility to make decisions about the acquisition of IT related needs through the City's
annual budget process.City departments identify specific needs for IT hardware and software items and make a
formal request for these items during the budget development period.The request is first reviewed by the
Director of Finance /IT,who may then contact the department director to further clarify the request.At that
point,the Director of Finance /IT may deny the budget request or place it on a comprehensive listing of IT
requests.In the event the request is denied at this point in the process,the department director has the ability
to discuss the request directly with the City Manager,and at that point the City Manager may approve the IT
request to be placed on the comprehensive listing of requests.The next phase of the process entails the
Director of Finance /IT developing or reviewing cost estimates for each of the IT requests,calculating the total
cost of all requests,and determining if sufficient funding is available to accommodate the requests.This
information is used to help prioritize the requests and make decisions about which items will be presented to
the City Council for funding approval in the coming fiscal year budget.
Best practices organizations maintain current and accurate documentation on all activities such that processes
can be completed in the absence of anyone individual.Strong documentation promotes cross-training,enables
backup and recovery,and reduces the risk of change when introducing new technology.The documentation
provided for review is identified in Appendix C ofthis document.The documentation is within best practices
gUidelines for IT activities.Significant documentation includes the IT Disaster Recovery Plan,hardware
.inventories,a network diagram,software licenses and instructional documentation.
With regard to infrastructure and security matters,the City's computer room is located in City Hall and the room
has primary and secondary air conditioning systems.The equipment is supported with UPS (uninterruptable
power supply)units.A generator will continue to prOVide power in the event of a prolonged service interruption
and is tested quarterly.The room is equipped with a sensor to prOVide automated warnings for temperature
fluctuations and motion detection.The servers are rack mounted.Wire management is neat and the cables are
labeled.Backups are completed and a professional service provider periodically stores the backup drives off site
for disaster recovery purposes.
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The computer room is secured with a door lock and a limited number of people have a key to the room.The
communication closets within City Hall are air conditioned and the equipment is rack mounted.The wire
management is neat and the cables are labeled.The communications closets are not secured because the space
is used for additional purposes.
A Sonicwall high capacity firewall protects the network.The firewall generates an alarm in the event of a
possible threat and generates security reports for review.Microsoft System Update Services (SUS)pushes
updates to the desktop computers and file servers.The computer room,device closets,firewall and Microsoft
updates are within best practices.
PVNET IT Services
PVNETwas established in 1995 as a 501C3 non-profit organization.The organization was founded by Mr.Ted
Vegvari as a means to provide personal computer (PC)training and support to the public.As the organization
grew and cOl1tinued to provide training opportunities to the citizens of RPV,the City offered to provide building
space in a vacant facility in exchange for the services to the public continuing.
PVNET began web hosting for RPV in 1996,and in 1998 began providing ongoing IT support services to the City.
Since that time,PVNET has continued this support and has developed new custom software applications to
assist City staff in serving the public.
In November 2011,the City and PVNET entered into a two-year agreement for the continued provision of IT
support services.This agreement provides flat monthly rates for several ongoing services,and establishes an
hourly rate for services outside the routine ongoing services.The IT service agreement pricing with PVNET is
based on a fixed monthly fee for website,user help desk,server support,email,and GIS services.Additionally
identified services are billed on a time and material (T&M)basis.Based on research of local agencies,the hourly
rates for additional services are competitive,albeit,much lower than what other Southern California
municipalities pay.
PVNET provides a full range of IT support services to the City pursuant to the November 2011 agreement
between the City and PVNET.
PVNET staff is led by its Director,Mr.Ted Vegvari,and consists of 11 staff members.PVNET utilizes both full and
part time employees,along with interns who are typically high school/college students completing short term
internships.All work performed by interns is directly supervised by PVNET staff at all times.Services to the City
are managed by Mr.Vegvari,and directly overseen by a full time IT manager.
Table 3 on the following page provides data about the cost of IT services in eight communities in California
including Rancho Palos Verdes.
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Table 3 -Comparable Cities Cost to Provide IT Services
Dana Point 34,000 60 $28.0M both $436,950 .s 50 1.56%.83%1.00%$12.85
Manhattan Beach 35,135 268 $52.9M no $1,534,652 4 285 2.9%1.49% 1.40%$43.68
Monterey 29,440 464 $59.5M no $2,757,352 10 556 4.63%2.16%1.80%$93.66
San Clemente 63,500 198 $53.9M no $1,469,000 5 100 2.73% 2.53%5.00%$23.13
San Juan Capistrano 35,022 89 $20.9M yes $1,101,100 4 122 5.27%4.49%3.28%$31.44
Palos Verdes Estates 13,516 50 $9.8M yes $94,000 1 60 .96%2.00%1.67%$6.95
Rolling Hills Estates 8,000 20 $5.9M no $0 0 24
Rancho Palos Verdes 41,766 75 $24.4M yes $548,100 2.75 90 2.24%3.67% 3.06%$13.12
Average All Cities 32,547 153 $31.9M $980,163 3.41 161 3.07%2.23%2.12%$30.11
The first five communities were identified for inclusion based on factors including similarity to RPV in
population,geographic size,and/or operating budgets.The final two communities (Palos Verdes Estates and
Rolling Hills Estates)were included due to their proximity to Rancho Palos Verdes.However,it should be noted
that the characteristics,in terms of IT service delivery,of these final two cities are not similar to Rancho Palos
Verdes,which provides more robust IT services,including for example,a strong GIS system and a disaster
management program.It is also important to note that any single statistic,taken alone,may be misleading,
which is why NexLevel prOVide multiple comparison factors for consideration.
NexLevel's experience is that California municipalities typically spend between 3%-6%of their annual general
fund operational budget on technology.This cost includes decentralized IT support that may be included within
individual departments.Thetrend appears to be an increasing investment in IT as a percentage of the general
fund operational budget,due to budget and staff reductions.Specifically,as municipalities reduce staffing
levels,they are increasingly relying on technology to maintain service levels.
Data in Table 3 indicates that Rancho Palos Verdes commits under 3%of its annual general fund operational
budget on technology.In addition,the City's per capita expenditure on IT is among the lowest of the cities in
the comparison.
·In terms of outsourcing agreements among the peer cities,a review and comparison between the cities that
outsource IT identified that RPV's agreement structure with PVNET was similar to the agreement that Dana
Point utilizes,while the San Juan Capistrano outsourcing agreement was superior to the City's,utiliZing many of
the best practices outlined in Section 3 of this report.Palos Verdes Estates utilizes a single part-time individual
on call for their IT support.
User Satisfaction with Rancho Palos Verdes IT Service Delivery
As part of the IT Assessment,NexLevel utilized two methods (Online User Satisfaction Survey and Employee
Workshops)to gather information regarding IT service delivery in the City organization.Both the User
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Satisfaction Survey and the Workshops provided opportunities for evaluating the effectiveness of IT service
delivery in the City,including information about direct service delivery by PVNET along with overall satisfaction
with City IT service delivery.
NexLevel developed an Online User Satisfaction Survey to gauge City staff's satisfaction with the current IT
service levels.The survey consisted of a series of questions designed to provide feedback on several areas
including timeliness of responding to service calls,ability to solve technical issues,communication regarding
both current issues and technology planning,performance of hardware and software systems,and overall
management of the City's IT function.An email announcing the survey and providing the link to the survey was
distributed by email and the survey was available from July 2 to July 13,2012.Of the 60 City staff that were
provided the opportunity to complete the survey,27 responded (a 45%response rate).
Table 4 provides the responses to each question in the survey.The table presents the results from City staff,
along with Peer Average and Best Practices ranges.The Peer Average point is the average score of all surveys
conducted by NexLevel within other California governmental jurisdictions.The Peer Average is based on the
percentage of responses for each survey question where a rating of 4 and 5 were presented.The Best Practices
range is based on NexLevel's combined technical experience of over 150 years with government computing
organizations.Our experience shows that an effective,well-balanced IT organization will fall somewhere within
the Best Practices range.Falling slightly below the Best Practices range indicates a well-run organization,but
specific areas of operational improvement may be recommended.Falling significantly below the Best Practices
range indicates that the organization should implement remedial action to prevent severe impact to IT service
delivery.
Table 4 -RPV User Satisfaction Survey Results
Peer Best
Survey Topic RPV Average Practice
The amount of time it takes them to take your call or acknowledge your request for 89 78 85
assistance?
Their ability to solve your technical issue the first time you call help?96 77 85
The amount of time it takes to resolve your request?93 80 80
Communication you receive relative to project status,service metrics,outages,and 86 72 80
scheduled maintenance?
Overall service you receive?89 80 85
Checking back with you on service provided?64 65 80
The amount of training you have received on the use of equipment and programs?36 50 75
Technology leadership and planning initiatives provided?52 63 85
Management of technology projects?55 65 80
Overall technical knowledge of staff?82 86 85
The equipment (computer,printer)you use in performing your job?61 65 80
The speed of the communication network?64 68 85
The reliability of the communication network?68 77 90
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The survey results indicate a high level of user satisfaction with the IT service delivery,but also identify
opportunities for improvement with regard to training,technology leadership and planning and management of
technology projects.Although the speed of the network is within peer average range,the reliability of the
network has a lower than peer average score.
NexLevel also conducted Employee Workshops with members of every City department to gather employee
feedback on IT service delivery.In the course of interviews with City staff,inquiries were made regarding the
users'satisfaction with the ITsupport services prOVided by PVNET.In general,the comments about PVNET's
service delivery were positive,with the following summarization of comments being typical:
•Responds to requests for assistance in a timely manner
'*'Provides a timeline for resolution of problems
~Resolves problems in a timely manner with minimal disruption to user
~GenE:rally very helpful with ongoing support and special projects
Interview discussions revealed some concerns on a variety of topics,including:
4>Length of time to complete certain major projects
~Lack of continuity of PVNET staffs knowledge of certain software programs
~Inability to support certain software applications
Upon further discussion with staff regarding their concerns,it became apparent that in most of the instances
cited above,the department user was not fully informed about the complexity and /or status of the projects.
Further,it was apparent that if additional information had been provided to the department user,they would
have had a better understanding regarding the status of the IT service.
During multiple workshop interviews with City staff,there were comments made about PVNET's billing
practices.Two specific themes emerged from the discussions,the first being the timeliness of PVNET billings,
and the second being lack of clarity about what projects would be billed and to which department.With regard
to timeliness of billings,responders indicated that the lateness of billing for hourly services caused problems
with both budget management and projections,and with the ability to process payments out of appropriate
fiscal year budgets.With regard to what work would be billed on an hourly basis and to which department,
responders commented that they were at times surprised to receive a bill for work that they thought would be
covered under the City's monthly services agreement.In addition,they indicated that they were not prepared
for the amount of the billing,and they expected that the billing would not be charged directly to their
department,but to the Finance /IT budget.Management staff has indicated that these past billing concerns
were the result of invoicing for services that are now provided under the fixed fee portion of the PVNET IT
service agreement,and that the billing issues have been resolved.
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Section 6 -Recommendations
As part ofthe Information Technology Service Delivery Assessment,NexLevel performed the following tasks:
~Reviewed the 2008 Organizational Assessment Report by Management Partners,along with the
associated City staff reports that presented the Assessment Report to the City Council
~Reviewed the City's IT Infrastructure plan approved by the City Council on November 1,2011,along with
the associated City staff reports
~Reviewed the current IT Services Agreement between the City and PVNET approved by the City Council
on November 15,2011,along with the related City staff report
{t Conducted an IT Service Delivery Assessment that included a User Satisfaction Survey and Employee
Workshops
'*'Conducted interviews with City Councilmembers,City management staff,and the PVNET Director and
Manager
'*'Reviewed documents relating to IT,including budgets,contracts,procedures manuals,and other related
documents
~Conducted research of other communities to gather information about their IT service delivery models
After a thorough review of the information received,and utilizing NexLevel's experience in IT service delivery
analysis,the follOWing recommendations are provided for consideration by the City.
2008 Organizational Assessment Report
NexLevel completed a review ofthe IT related recommendations contained in the 2008 Organizational
Assessment report,and conducted interviews with City staff and management regarding the status of the
recommendations.Our review found that the City has,or is in the process of,implementing most of the
recommendations contained in the 2008 report.Of the 24 IT related items recommended,19 are complete or
ongoing,and 3 were not pursued based on City Council direction.Ofthe 2 recommendations that have not
been undertaken,the first,bidding out email services,is no longer necessary,as the City Council has approved,
through the 2012 IT Infrastructure Plan,a Microsoft Exchange solution for email services.The remaining
recommendation,to investigate the costs and benefits from other web design and hosting services,should
logically be undertaken only as a part of a major website redesign.Given the number of recommendations
made,and the complexity of many of the recommendations in terms of necessary resources to complete them,
it appears that the City has significantly completed the recommendations from the 2008 Management Partners
report.
Recommendations:
1)Carefully review the Management Partners recommendations that have been partially completed
(Recommendations 13 and 18)in order to determine a go forward strategy to complete those
recommendations.
2)At the time the City undertakes a major website redesign,investigate the costs and benefits available
from other web design and hosting services prior to utilizing the existing IT service provider to
perform these services.
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2011 IT Infrastructure Plan
NexLevel reviewed the IT Infrastructure Plan adopted by the City Council in November 2011.The Plan contains
four (4)major milestones,and provides estimated date ranges for completion of them.Each of the four
milestones is underway and at various stages of completion,with significant progress having been achieved.
Based on discussions with City management,it appears that the four milestones will be complete by December
2012.
Each of the components of the Plan will result in improved efficiencies in City operations and IT performance.In
particular,Item 4 -replacement of desktop computers and migration to Office Professional 2010 -will address
user's concerns regarding network performance that were identified in the User Satisfaction Survey.
Recommendation:
1)Proceed with a procurement process to replace approximately 60 desktop computers identified for
replacement.
2)Regularly monitor the status of the IT Infrastructure Plan to ensure adequate resources are being
allocated to its completion by December 2012.In January,2013,provide the City Council with a
report on the Plan implementation.
PVNET IT Services Agreement
NexLevel completed a comprehensive review ofthe current contract between the City and PVNET.While the
latest contract,which was approved by the City Council on November 15,2011,prOVides a level of additional
formality to the relationship between the City and PVNET,it lacks certain components found in most IT service
delivery agreements.Specifically,while the agreement includes key terms and conditions,it lacks adequate
definition and detail that would align with a strong IT outsourcing agreement.The agreement should be
strengthened in terms of ownership,procurement/selection,service level management,invoicing/payment
terms,IT governance,and project management.Section 3 of this report prOVides a detailed discussion on the
existing agreement.
In terms of overall value (cost /benefit)of the IT services prOVided by PVNET,the annual contract base of
$270,000 to support the City's website,help desk,servers,email,and GIS systems appears to be lower than
what over Southern California municipalities pay for these services.In addition,the hourly rate charged for
additional services is competitive with what other municipalities pay for these same hourly services.Table 3 of
this report prOVides a comparison of other California cities with similar characteristics to RPV,and prOVides
evidence that the City is receiving a good overall value for IT services prOVided by PVNET.
Recommendation:
1)If the City Council chooses to continue receiving IT service delivery from PVNET,the City should enter
into discussions with PVNET regarding modifying the current contract for IT support,with the
outcome being to present to the City Council a revised IT support agreement that incorporates best
practice IT support agreement terms and conditions,and service descriptions,as detailed in Section 3
of this report.
Outsourced IT Service Procurement
The City Council requested that NexLevel prOVide input and recommendations regarding the timing and nature
of a potential competitive bid process for City IT services.As part of this task,NexLevel researched other
organizations similar in size and structure to RPV and gathered information regarding cost to prOVide IT services
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to those organizations.This information is contained in Table 3 previously presented in this report.As
demonstrated by Table 3,RPV's cost for IT service delivery is below what other similar organizations pay.
NexLevel also conducted research to identify other organizations that have solicited bids for IT services.As
expected,there were several cities that have recently solicited bids and others that are currently in the process.
These organizations include a divergent range of IT support level requirements,equipment support,software
types and complexities,and organizational structures overseeing IT service delivery.Appendix A provides
information on local agencies that are currently conducting,or recently completed,the bid process for IT
services.It is important to emphasize that the description of services to be provided should be compared to the
types and levels of service that the City wishes to provide for their staff and the community,as these service
level differences are a major contributor to the differences in cost.
Recommendations:
1.Prior to embarking on a public bid process for IT services,the City should attempt to amend or
r~negotiatethe current agreement with PVNET,with the goal being to provide a best practices
agreement that will allow the City to clearly compare services being provided with costs being
paid.
2.If the City Council determines that it wishes to proceed with a formal request for proposal (RFP)
process for IT services,it should anticipate a minimum 12 month timeline as described in Section 4
of this report.
3.Prior to embarking on a formal RFP process,the City should consider the potential for responses
to the City's request,as described in Section 4 of this report.
4.Regardless of the direction taken by the City,the following activities should be completed in order
to ensure that the City is receiving the best value for its IT investment:
•Establish a formal reporting of IT service levels and activities -these should be the basis for
every invoice and payment.
•When procuring new IT technologies,seek out solutions that are supported by strong
maintenance agreements that include support of bug fixes and other system issues.
•Re-evaluate all vendor maintenance agreements.Maintenance agreements should be in place
to ensure adequate support by qualified individuals.
•In the event that the City moves toward bidding out IT services,consider establishing a
minimum on-site staffing requirement for proposers to meet;and/or consider the
establishment of an in-house IT support position to augment any remote support proposal.
•Require the implementation of a formal help desk/trouble tracking system to track activities
being performed and which will provide information to report against•
.IT Service Delivery
NexLevel conducted a User Satisfaction Survey which was distributed to sixty (60)City staff members.In
addition,NexLevel conducted several interviews with City staff and management personnel,and met with
representatives of PVNET and members of the City Council.One of the goals of these activities was to evaluate
the value (cost /benefit)of the services being provided.Another goal was to assess the quality of IT services
being delivered by PVNET.A third goal was to determine the users'satisfaction with the overall IT service
delivery system in the City,including both PVNET's contributions and the service delivery by City staff
responsible for IT services.In addition,NexLevel reviewed several documents relating to City IT services,
including policy and procedure documents,operating and capital budgets,and financial planning documents.
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With regard to user satisfaction with the services provided by PVNET,the users indicated through their
responses to the survey and their comments at the workshops that they are generally satisfied with PVNET's
services.The survey instrument indicated a general satisfaction with the amount oftime ittakes PVNETto
respond to a problem,their ability to resolve the issue,and the amount of time it takes to resolve it.In fact,in
these areas,the survey responses indicate that PVNET exceeds the best practices scores.
In terms of overall IT service delivery at the City,both the User Satisfaction Survey and the workshop interviews
revealed divergent responses.While PVNET scored well in terms of responsiveness and timeliness of addressing
technical issues,the survey responses and discussions revealed that certain aspects of the overall IT service
delivery could be improved.Specifically,respondents indicated that they do not always receive feedback on the
status of IT services that are in process,that there is not sufficient training on software platforms in use or being
implemented,that equipment is outdated,and that there is a lack of knowledge about upcoming IT projects.
Comments included a lack of knowledge of how IT procurement decisions are made during the budget process;
a lack of repQrting back on why IT requests are denied;deficiency in communicating back on which IT requests
were approved;lack of knowledge on timing of acquisition /installation of IT requests;and a lack of input on the
decision process for the selected IT solution.These comments indicate that the current methods being utilized
by the City for dissemination of IT related information have disconnected user departments from the decision
process for IT requests.
The City's current management structure places the responsibility for IT management with the Director of
Finance /IT.IT management includes oversight and ongoing monitoring ofthe PVNET agreement including
project status,billing,and user satisfaction with PVNET's service delivery.Additional responsibilities include
projecting IT related needs and budgeting appropriately for them,providing technology leadership to the
organization,and being responsive to the City's IT customers.These IT management duties are in addition to
the Director of Finance /IT's responsibilities for all City finance activities,including day to day Finance
Department operations,budget and CIP,financial reporting,and auditing,along with duties as the City's Public
Information Officer,liaison to the Storm Drain Oversight Committee,and responsibility for airspace safety and
noise issues.
Based on NexLevel's interviews during the IT service delivery assessment,it is clear that the Director of Finance /
IT is knowledgeable about IT operations and has an interest in ensuring that the City's IT needs are met.For
example,he has made substantial progress on implementing recommendations from the 2008 Organizational
Assessment,including implementation of enterprise software solutions such as a new financial system that will
serve the entire organization comprehensively.He also presented to the City Council the 2011 IT Infrastructure
Plan to improve the organization's overall IT structure and efficiency.In addition,he led the development and
implementation of a comprehensive emergency preparedness /disaster plan that includes IT activities and tools
to ensure that the City is fully prepared in the event of an emergency.
While the Finance Department's staffing structure includes a Deputy Director,this individual's primary focus is
on financial activities,leaVing little availability to assist with IT activities.The Department's staffing structure
also includes a Senior IT Technician position,which has remained unfilled for the past 2-3 years.This position
has been previously identified as a support position to assist the Director with IT related activities.
Recommendations:
1)Further evaluate the span of responsibilities of the Director of Finance /IT and consider options
including:a)filling the currently vacant Senior IT Technician position in the Finance Department to
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assist with day to day IT activities;and/or b)reassignment of non-Finance /IT responsibilities to
another area of City management.
NexLevel believes that the current staffing structure places a significant burden on the Director of
Finance /IT to make recommendations and decisions,possibly without the benefit of complete
information regarding department needs,potential improvements in efficiencies,and other pertinent
factors.The current breadth of responsibility ofthis position,without the benefit of a management
level staff member to assist with IT related activities,appears to be affecting the overall level of IT
service delivery to the organization.
2)Complete a formal IT Strategic Plan that provides a roadmap for the City's IT related activities,and
gives the City Council the opportunity to validate the Plan.
Such a plan prOVides organizations with a multi-year roadmap for IT procurements,prOVides the ability
to identify resources for procurement in future years,and establishes the organization's IT related
priorities for the future.The plan is developed through a structured approach that considers the needs
of all City departments and is reviewed and approved by the City Council.This process provides a
structured approach to help meet the IT needs of the City,and acknowledges to the organization the
City Council's concurrence with the prioritization of IT requests.
3)Establish an internal IT Steering Committee comprised of representatives from all City departments.
The Committee's responsibilities would include evaluating potential new IT projects,prioritizing
multiple competing IT needs,meeting regularly to receive updates on the status of IT projects,and
communicating information back to their departments regarding IT related activities.
Among other functions,the IT Steering Committee's primary purpose is to evaluate and recommend for
approval the various IT requests being made during the budget process.It is typically made up of one or
more employees from each user department,and thus prOVides a forum for evaluating IT requests with
a balanced approach that crosses departmental lines.Such a committee reduces placing the burden of
prioritizing IT requests on one person in the organization,and also encourages consensus bUilding across
department lines.
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Information Technology Service Delivery Assessment
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Information Technology Service Delivery Assessment
Appendix A -Results of Recent Outsourcing Bids
for IT Services
Vendor
and
RFP Annual
City Issued Contract Proposals Received
Aliso Viejo 2008 Synoptek The City received 12 proposals,3 of which were identified as best
FTEs:15 $59,100 meeting the City's needs.After concurrent negotiations with three
Pop.:48,000 finalists,Synoptek was selected for offering the best service at the
most affordable price.
The services do not include GIS.Remote services are provided for
help desk,network and system administration with 4 hours of onsite
support once a month.Web hosting and web site maintenance are
included.
Eastvale May Synoptek The City received 14 proposals,and Synoptek was selected.
FTEs:6 2012 $23,620 The scope of services includes 1 file server,21 PCs,10 tablet devices
Pop.:54,000 and 4 network devices.
Goleta 2010 Synergy The City received 11 proposals,and Synergy Computing was selected.
80 users (FTEs Computing The services include web hosting and maintenance and remote
not identified)$80,400 support for help desk,application,streaming video and inventory
Pop.:30,000 maintenance.Services do not include GIS.
Laguna Niguel June The results of the procurement activity have not been presented to
FTEs:60 2012 Council for approval.
Pop.:63,000
Rialto Proposals were due on 8/23/12.Knight Communication has
Pop.:99,000 provided services for the past 10 years.The results of the
(FTEs not procurement activity have not been presented to Council for
identified)approval.
San Juan April Synoptek The RFP was sent to 19 firms and the City received 3 proposals,
Capistrano 2011 $342,240 including a proposal from Synoptek.Two of the proposers had never·
FTEs:102 serviced a public sector organization and had no experience with
Pop.:35,000 many ofthe software applications used by the City.A 5 year
agreement was awarded to Synoptek in June 2011.
The services do not include user training,web hosting /web site
maintenance,or GIS.The services include an onsite IT Manager.
Stanton Proposals for IT Professional Services were due on August 27,2012.
Pop.:37,000 The RFP requires 40 hours of support per month.The results of the
procurement activity have not been presented to Council for
approval.
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Information Technology Service Delivery Assessment
Appendix B-IT Service Providers in Other Cities
Annual
IT
Contract
,
Vendor ServicesCityAmount
Aliso Viejo $59,100 Synoptek Web hosting,maintenance,remote services for help desk,
FTEs:15 network and system administration;4 hours onsite support once
Population:a month.
48,000
RFPs for Web and IT Services were issued in 2008.15 proposals
were received for web support and 12 for support services.
Synoptek was awarded both agreements.The original
agreements were for a 3-year term and executed in 2009.In
January 2012 the term was extended to June 30,2013.
GIS is not included in the Synoptek services.The City subscribes
to Digital Map Products.The annual agreement approved on
4/18/12 is $25,650.
Eastvale $23,620 Synoptek The City issued an RFP for technology services on 5/17/12.The
FTEs:6 contract was awarded to Synoptek on 6/25/12.The scope of
Population:services includes support for 1 file server,21 PCs,10 tablet
54,000 computers and 4 network devices.Web site services and GIS are
not included.
Goleta $80,400 Synergy Services include remote help desk support,application,network
80 users Computing,services,support City staff in the utilization of Granicus streaming
Population Inc.media,posting of periodic updates to the City's web sites and
30,000 inventory management.
An agreement for GIS and mapping services was awarded to JDL
Mapping,Inc.in June 2011 in the amount not to exceed $40,000.
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Information Technology Service Delivery Assessment
Annual
IT
Contract
City Amount Vendor Services
San Juan $342,240 Synoptek The City outsourced IT management for 15 years,and Synoptek
Capistrano provided services under a 3-year agreement executed in
FTEs:102 November 2007.The City issued an RFP in April 2011.The RFP
Population:was sent to 19 firms and the City received 3 proposals,including a
35,000 proposal from Synoptek.Two of the proposers had never
serviced a public sector organization and had no experience with
many of the software applications used by the City.A 5 year
agreement was awarded to Synoptek in June 2011.The scope of
services includes an on-site IT Manager whose services include
project management and business systems analyst functions.
Services include help desk,VolP,network administration,
network security,asset tracking,and problem escalation to
vendors.The services do not include user training,web hosting,
web site maintenance or GIS.The City subscribes to Digital Map
Products,and the annual payment is $33,532.50.The City
employs a GIS Specialist whose total compensation is $94,313.
Seal Beach $216,000 Synoptek On May 14,2007 the City approved a professional services
FTEs:113 agreement with Synoptek.IT support was previously outsourced
Population:to Quecore.The estimated hours for the first 120 days ofthe
25,000 contract is 370 hours,and the cost of the contract per month is
$24,000.The estimated hours and steady rate folloWing the first
120 days is 260 hours,and the cost of the contract per month is
$18,000.(The annualized amount of the steady rate of 260 hours
is $216,OOO.)
The Schedule of Professional Fees for part-time project
management or a senior project engineer on site is $125/hour.
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Appendix C -Rancho Palos Verdes IT
Documentation Review
IT Inventory
The Asset Management System developed by PVNET
'"Desktop inventory including serial numbers and installation date
<'A detailed audit by PC name including hardware components and software
.:'Dell server quotes including prices and component details
':'A copy ofthe Microsoft Enterprise license agreement,the quote,and the City's Microsoft Order
Confirmation Certificate
.,Copies Qfthe City's application licenses for McAfee,AutoCAD,CoreLogic and Adobe,and Laserfiche
'"A copy of the invoice for the purchase of the Sonicwall firewall
The Verizon Business Service Agreement
'"The list of application developed by PVNETwith a statement the applications may be used and modified
by the City as needed without restriction at no cost to the City or taxpayers
Network Infrastructure
'.,City Hall layout including offices and the locations of network drops
A network diagram listing with City locations and a diagram ofthe network backbone
"Diagrams ofthe network switches,VolP switches and wireless access points
<,A diagram ofthe Point Vicente Interpretive Center power and signal plan
IT Disaster Recovery Plan
.s,The City's Disaster Recovery Plan (last reviewed on 1-2012)
.s It was noted the plan will be updated after the completion of the 2012 IT upgrade project
IT Planning -Documents Associated with the 2012 Infrastructure Upgrade
,.;.Proposed project timeline
Optimization study completed by Microsoft
";'Dell service description for the installation of the EqualLogic Array
,.Draft of the server upgrade virtualization plan
".Nexus statement of work for the Microsoft Lync 2010 Implementation
,i·Dyntek evaluation of the IT upgrade (name it again)
IT Process Documentation
.;;A description of each file server including an overview,system setup and configuration,daily operations,
antivirus,licenses,backups,etc.
,;Help desk and support services
.}OCE systems management and support (high volume printing)
Iron Mountain off site data storage
Onsite training facility
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,?-How to use the Lync VolP system
'1·How to use the Cisco VolP system
.;;,How to setup CC and video link
1:'How to setup Canopus video conversations
-,.How to set up meetings at Hesse Park
-(?How to setup TV monitor at Hesse Park
'I'How to setup Fireside Room video cart
.;"How tosetup Hesse Park Computer Presentation System
<.How to setup EOCIMS
'"PVIC audio system setup
."Emergency communications and Listserver system 2012
'"Resident communications -non emergency -comments
.;;.Listserver system instructions
IT Documentation of Projects in Process
-<Implementation timeline ofthe IT plan -draft
'(Server upgrade and virtualization plan
?b Benefits of virtualization
'<-Nexus Microsoft Lync 2010 statement of work
,;;.IT plan staff report and supporting documentation November 1,2011
,<.2012 Infrastructure upgrade project budget
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