Report Prepared by: Aarin Garrison, I.T. Manager, Information Technology Department
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements and Approval of a One (1) Year Renewal Amendment with SMARSH Inc for Text Message and Social Media Archiving Services for an Additional $35,905 for a Total Not-to-Exceed Amount of 220,794
REPORT IN BRIEF
Considers approving to waive the competitive bidding requirements and approval of one year renewal amendment with SMARSH Inc for Text Message and Social Media Archiving Services for an additional $35,905 for a total not-to-exceed amount of $220,794.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bid requirements as stated in Section 3.04.210; and,
B. Approving the renewal agreement with SMARSH Inc. in the amount of $35,905 for a total not-to-exceed of $220,794; and,
C. Authorizing the City Manager or designee to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Deny the request; or,
3. Refer back to staff for reconsideration of specific items as requested by Council.
AUTHORITY
Merced Municipal Code section 3.04.210
CITY COUNCIL PRIORITIES
As provided for in the 2024-2025 Adopted Budget.
DISCUSSION
Pursuant to the California Public Records Act (CPRA) Government Code Section 6250, electronic communications utilized in the execution of official agency duties that are classified as official public records, including text messages and social media interactions, constitute public records. As such, these records are subject to disclosure upon request, consistent with applicable legal and regulatory requirements.
To ensure ongoing compliance with these statutory requirements, the City is required to establish and maintain a records and information management program that provides for the systematic control of the creation, maintenance, use, and disposition of records. In fulfillment of this obligation, the City of Merced has contracted with SMARSH Inc. since 2018 to provide an electronic archiving solution for the retention and management of official communications transmitted via text messaging and social media platforms.
The table below presents the City’s actual expenditures for SMARSH services from Fiscal Year 2018 through Fiscal Year 2025. The upward trend in annual costs is primarily driven by the expanded use of text messaging as a communication method and the corresponding increase in the number of City-issued mobile devices requiring archiving. This growth in Text message devices has resulted in annual expenditure variances from the original contract amounts, as additional devices were onboarded or removed mid-year to ensure continued compliance with public records retention requirements.
The table below summarized the actual expenditures and contracted amounted to SMARSH for years 2018 through 2025.
|
Fiscal Year |
Expenditure |
Contracted Amount |
|
2018 |
$25,060 |
$25,060 |
|
2019 |
$22,735 |
$22,560 |
|
2020 |
$25,321 |
$24,219 |
|
2021 |
$24,757 |
$25,970 |
|
2022 |
$25,769 |
$25,906 |
|
2023 |
$27,520 |
$27,402 |
|
2024 |
$33,727 |
$33,583 |
|
2025 |
$35,905 |
$35,905 |
|
Total |
$220,794 |
$220,605 |
The proposed contract renewal will extend services through April of 2026, for $35,905 for a total not-to-exceed amount of $220,794. Per Municipal Code Section 3.04.210, cumulative contract expenditures exceeding the formal bid threshold require City Council authorization. As the total value of the SMARSH agreement will exceed this threshold and Council approval is required to continue service and ensure uninterrupted compliance with public records laws.
The Information Technology Department performed a cost comparison using pricing available through competitively bid cooperative procurement agreements. The direct pricing proposed by SMARSH was determined to be more cost-effective than alternatives identified through cooperative purchasing options. Therefore, staff is requesting that the City Council authorize a waiver of the formal bidding requirement under the provisions of Municipal Code Section 3.04.210.
Failure to renew the SMARSH service agreement would present significant challenges to the City’s ability to meet public records compliance obligations. Transitioning to an alternative service provider would necessitate the reconfiguration of all municipal mobile devices and social media accounts, imposing a substantial administrative burden on City personnel. Additionally, the migration process could result in the loss of historical records currently retained within the SMARSH system, potentially compromising the City’s capacity to fulfill certain public records requests in a timely and efficient manner.
IMPACT ON CITY RESOURCES
Funding for this purchase is included in the Fiscal Year 24/25 Adopted budget within Fund 7008-Support Services.
ATTACHMENTS
1. 2025 SMARSH Services Agreement
2. 2024 SMARSH Services Agreement
3. 2024-2 SMARSH Services Agreement
4. 2023 SMARSH Services Agreement
5. 2022 SMARSH Services Agreement
6. 2021 SMARSH Services Agreement
7. 2020 SMARSH Services Agreement
8. 2019 SMARSH Services Agreement
9. 2018 SMARSH Services Agreement