AgdaPkt 2015-07-27 Joint SA and PFA

Browse Search

7.1.M. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager July 27, 2015 SUBJECT Amend the Financing and Information Technology Services Agreement between the City and Silicon Valley Clean Water, formerly South Bayside Systems Authority RECOMMENDATION By motion, approve and authorize the City Manager to execute Amendment No. 2 to the Financing and Information Technology Services Agreement with Silicon Valley Clean Water (SVCW). BACKGROUND Since SVCW's inception, the Redwood City Finance Department has performed all of SVCW's accounting and financial support functions including but not limited to payroll, accounts payable, general ledger, and treasury management. In the late 1980s, Redwood City converted SVCW's financial record keeping from a private vendor to Redwood City's financial system supported by the City's Information Technology division (IT). In July 2012, the City Manager approved a new two -year agreement between the City and SVCW, by which the City furnishes financial services and information technology services to SVCW, including computer technology and hourly IT support. In July 2014, Amendment No. 1 was executed extending the agreement an additional year. ANALYSIS Approval of this recommended amendment will extend the services the City provides to SVCW for an additional one -year period through June 30, 2016. In addition to extending the period an additional year, fees for Financial Services and Information Technology were increased by the same rate of increase of the Consumer Price Index, (CPI). The fee for hourly Information Technology's hourly support services was increased by 6.5% over the FY 2014 -15 hourly rates. In the past, SVCW has been charged less than IT's full hourly rate. IT staff has worked with SVCW to bring its rates up to the City's internal rate over a two year period, of which this is the first year. SVCW's Commission reviewed the proposed terms and authorized their Manager to enter into the recommended amendment at their June 11, 2015 meeting.