AgdaPkt 2002-07-01 - Laserfiche WebLink

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REPORT To the Honorable Mayor and City Council From the City Manager July 1,2002 Subject Renew Agreement for Accounting and Information Technology Services for South Bayside Systems Authority Recommendation It is recommended that the City Manager be authorized to execute a renewal to the agreement with South Bayside Systems Authority for the provision of accounting and information technology services for FY 2002103. Background In July 1999, the City Council approved a renewal of the agreement between the City and the South Bayside Systems Authority (SBSA), by which the City furnishes accounting and information technology services to SBSA. Since SBSA's inception, the Redwood City Finance Department has performed all of SBSA's accounting and financial support functions including but not limited to payroll, accounts payable, general ledger, and treasury management. In the late 1980's, Redwood City converted SBSA's financial record keeping from a private vendor to Redwood City's host financial system. Approval of this renewal will continue this business relationship. Fiscal Impact This agreement will increase Redwood City's annual compensation to $81,927 from $74,145 with annual adjustments based on the change in the San Francisco-Oakland-San Jose consumer price index (all urban consumers). Alternative The City Council may elect not to enter into this agreement. Doing so would reduce anticipated revenues in FY 2002/03 by $81,927 and would require SBSA to identify another provider of these services. It should be noted that Redwood City owns approximately 47% of SBSA, so any adverse impact on SBSA may ultimately jeopardize Redwood City's interests in SBSA. Da-vid'Chuli~k -- ' Brian Ponty Edward Everett Information Technology Director of Finance and City Manager Manager Financial Planning