AgdaPkt 2018-07-23 Joint SA PFA - Laserfiche WebLink

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6.1.C. - Page 2 ANALYSIS In July 2012, the City entered a two-year agreement with SVCW to provide financial and information technology services to SVCW. The contract for services has been renewed annually thereafter. Approval of this recommended amendment will extend the scope of services the City provides to SVCW for an additional one-year period through June 30, 2019. In addition to extending the period an additional year, accounting functions were amended to remove the treasury management and accounts payable functions, and fees were amended to cover the fully burdened City staffing costs to provide these services. Budgeted costs for financial services increased from $80,033 in FY 2017-18 to $83,373 in FY 2018-19 as a result of implementing an updated full cost recovery approach. Although the Information Technology support services hourly rate increased, the total budgeted costs decreased from $53,375 in FY 2017-18 to $44,225 due to SVCW requiring fewer IT support hours as it transitions off the City's financial system to its own recently purchased system. ALTERNATIVES The City Council may elect not to amend the agreement to provide services to SVCW. Doing so would require modifying the FY 2018-19 Adopted Budget as staffing and revenue related to this agreement is included in the Adopted Budget. It should be noted that as the majority member of the SVCW Joint Powers Authority, Redwood City has an interest in SVCW having effective financial and technology support services. FISCAL IMPACT The continued agreement with SVCW will result in approximately $127,600 in revenue in FY 2018-19. ENVIRONMENTAL REVIEW This activity is not a project under CEQA as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or foreseeable physical change in the environment. TONY GLPHMAN IT MANAGER