COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Assessor-County Clerk-Recorder

DATE:

December 28, 2007

BOARD MEETING DATE:

January 8, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Warren Slocum, Assessor-County Clerk-Recorder

SUBJECT:

Termination of One Service Agreement and Amendment of a Second Service Agreement with Hart InterCivic, Inc. for Software Development and Maintenance

RECOMMENDATION:

Adopt a resolution authorizing an agreement with Hart InterCivic, Inc. to:

(1)

Terminate the agreement for records management software and services for the period of August 15, 2006 through August 15, 2010, in the amount of $880,000, no Net County Cost;

(2)

Amend the agreement for voting system hardware, software, and services for the period of August 15, 2006 through August 15, 2011, reducing the amount of the original $10,453,516.49 contract by $266,000 for a new contract amount of $10,187,516.49.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

This agreement conforms to changed circumstances, fairly recovers costs, and frees the County to explore new alternatives.

Performance Measure(s):

Measure

FY 2006-07
Actual

FY 2007-08
Target

Percent of progress toward a new, Help America Vote Act compliant voting system

100%

100%

BACKGROUND:

On August 15, 2006, the County made two agreements with Hart InterCivic, Inc. relating to the acquisition of a two new systems: (1) the Records Management Agreement (RMA) (Reso. 068202; NTE $880,000; four years); and (2) the Voting Systems Agreement (VSA) (Reso. 068199; NTE $10,453,516.49; five years).

The RMA called for Hart to provide a new Recorder system and to provide a “white paper” to integrate various software and data systems within the Department of the Assessor-County Clerk-Recorder. Before completion, Hart sold the business entity responsible for this project in August 2007. The acquisition company will not satisfy this agreement between Hart InterCivic, Inc. and County. The County had paid nothing for past services.

The VSA, beyond providing voting system hardware, software, and services, called for Hart to develop and maintain custom software for voter registration and election management. After some progress, it became clear that Hart would not be able to develop or timely deliver a California specific product envisioned at the outset. The County had paid nothing for past services.

DISCUSSION:

We recommend terminating the RMA, as Hart has sold the business entity that was meant to perform it. We also recommend amending the VSA, to delete the provisions related to developing and maintaining a voter registration and election management system ($266,000). As consideration, the County will release Hart from specified obligations and will pay the final $200,000 due for the voting system, and Hart will offset $500,000 in annual VSA maintenance fees over three years. These modifications reflect changed needs and circumstances and a shared desire for a mutually beneficial relationship into future years. Knowledge gained in the development process will carry forward.

This agreement has been reviewed and approved by County Counsel.

Hart continues to assure compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits.

FISCAL IMPACT:

There will be no Net County Cost. The contract changes yield a cumulative cost reduction of $266,000. The VSA was fully funded by federal and state grants (Help America Vote Act of 2002 [HAVA] and the Voting Modernization Bond Act of 2002). The current fund balance of the HAVA grant is $648,000.