That the City Council approve to waive the formal bidding process per La Habra Municipal Code 4.20.070 (E) Technology Exception, and approve and authorize the City Manager to execute an agreement with Jim Mabey of Information Management Technologies for payroll system support services.

Jim Mabey of Information Management Technologies is a software systems/information technology consultant and programmer who has an extensive history of working on payroll support projects for the City of La Habra in various capacities for the past several years. Mr. Mabey was tasked as the City's primary payroll system support consultant in March 2015 on an ad hoc basis. Due to age of the City's payroll system and the increasing demand for customized payroll system modifications to meet ever-changing state and federal tax and payroll reporting requirements, staff recommends that the City secure a three-year service contract, with two additional one-year optional extensions, with Mr. Mabey, rather than relying on support on an "as-needed" basis. 

The payments for "as needed" payroll system support services to Mr. Mabey have averaged $26,802 per year over the past 6 years. The City's Fiscal Year 2021-2022 adopted budget includes an allocation of $35,000 to fund "as needed" payroll system support services; therefore, staff does not anticipate a need for an additional appropriation for the approval of this agreement.  The fee structure for the proposed agreement is based on hourly rates for services rendered, rather than a fixed monthly or annual fee, and includes an annual not to exceed cap of $50,000; therefore, the City will only be required to pay for support services when requested or needed.  Based on the historical cost for payroll system support, staff anticipates that the cost of this agreement will likely average less than $30,000 per year, depending on the amount of programming support necessary in any given year.