AgdaPkt 2015-07-27 Joint SA and PFA

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7.1.H. - 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 Burlingame during fiscal year 2015 -16 RECOMMENDATION Approve, by motion, a one -year agreement 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, 2015 and June 30, 2016. BACKGROUND Since February 23, 1999, the City of Redwood City has provided continuous 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, 2015. On June 18, 2015, the City of Burlingame agreed to the terms for another one -year agreement covering fiscal year 2015 -16. The agreement, as executed by the City of Burlingame, is attached. ANALYSIS The technology services to the City of Burlingame 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 2015 -16, generating approximately $550,000 in revenue for Redwood City. ALTERNATIVES The Council could elect not to approve the amendment and discontinue providing information technology services to the City of Burlingame. This would decrease the City's shared services revenues, requiring either a reduction in IT