AgdaPkt 2014-07-28 Closed, Special and Joint SA

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7.2.C. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager July 28, 2014 SUBJECT One -year extension to the agreement providing Information Technology (IT) Support to the City of Burlingame RECOMMENDATION Approve, by motion, one -year extension to provide information technology (IT) support services to the City of Burlingame and authorize the City Manager to sign the agreement under which the City of Redwood City will continue to provide IT services to the City of Burlingame between July 1, 2014 and June 30, 2015. BACKGROUND Continuously since February 23, 1999, the City of Redwood City has provided information technology services to the City of Burlingame through an original agreement, four amendments, and several extensions. Each amendment and extension adjusted the rates and extended the terms. The most recent extension expired on June 30, 2014. On July 7, 2014, the City of Burlingame agreed to the terms for another one -year extension covering fiscal year 2014 -15. Amendment No. 5 as executed by the City of Burlingame is attached. ANALYSIS Since 1999 the City of Redwood City has been providing information technology services to the City of Burlingame. The services include software development of their financial, budgeting, utility billing, and payroll systems. Services also include technology infrastructure design, implementation, and support, telephone system support, and end user desktop and application support. Approving this extension will allow Redwood City's Information Technology Division to continue supporting the City of Burlingame for fiscal year 2014 -15, generating approximately $530,000 of revenue for Redwood City. The cost to Redwood City to provide these services is approximately $300,000. ALTERNATIVES The Council could elect not to approve the amendment and discontinue providing information technology services to the City of Burlingame. This is not