AgdaPkt 2015-07-27 Joint SA and PFA

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7.1.1. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager July 27, 2015 SUBJECT One -year agreement providing Information Technology (IT) Support to the City of East Palo Alto RECOMMENDATION By motion, approve and authorize the City Manager to execute a one -year agreement with the City of East Palo Alto for Redwood City to continue providing information technology (IT) support services to East Palo Alto for the period July 1, 2015 - June 30, 2016. BACKGROUND Since September 1, 2007, the City of Redwood City has provided information technology services to the City of East Palo Alto through an original agreement and two amendments. Amendment No. 1 and 2 adjusted the rates and extended the terms of the original agreement through fiscal years 2014 -15. On July 9, 2015, the City of East Palo Alto agreed to the terms for a one -year agreement, adjusting the rates and extending IT support services through fiscal year 2015 -16. The agreement, as executed by the City of East Palo Alto, is attached. ANALYSIS Since 2007 the City of Redwood City has been providing information technology services to the City of East Palo Alto. The services include technology infrastructure design, implementation, and support, telephone system support, and end user desktop and application support. Approving this agreement will allow Redwood City's Information Technology Division to continue supporting the City of East Palo Alto through fiscal year 2015 -16, generating approximately $320,000 of revenue for Redwood City. ALTERNATIVES The Council could elect not to approve the amendment and discontinue providing information technology services to the City of East Palo Alto. This would d ecrease the City's shared services revenues, potentially requiring a reduction in IT staff or the identification of new clients to purchase an equivalent number of hours.