AgdaPkt 2018-08-27 Joint SA PFA - Laserfiche WebLink

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6.1.A. - Page 2 Technology services provided by City IT staff include, but are not limited to, infrastructure and desktop support, rent stabilization software development and support, telephone support, technology planning, and process improvements through technology. The City Council of East Palo Alto approved this agreement at its June 19, 2018 meeting. Approving this agreement will allow the City's IT Division to continue supporting the City of East Palo Alto through FY 2018-19, generating approximately $355,000 of revenue for the City. This agreement will automatically extend through FY 2019-20 unless the City of East Palo Alto notifies the City at least 90 days in advance of July 1, 2019 of its intent to not renew these services. The contracted amount for FY 2019-20 will increase between four and eight percent based upon the increase in the City's fully burdened staffing costs to provide the services for FY 2019-20. If the cost to provide these services increases above eight percent, the agreement provides that the parties would discuss a possible rate increase above eight percent and if necessary an amendment to the agreement. ALTERNATIVES The City Council may elect to not approve the agreement to provide services to East Palo Alto. Doing so would require modifying the FY18-19 Adopted Budget as staffing and revenue related to this agreement is included in the Adopted Budget. FISCAL IMPACT This agreement will generate approximately $355,000 in revenue during FY 2018-19. The direct labor costs, including salary and benefits, to provide these services are approximately $220,000. Additional charges of $135,000 cover administrative overhead, indirect costs, and any necessary technology upgrades. If extended through FY 2019- 20, the agreement will generate a minimum of approximately $360,000 in revenue, subject to review of the City's full staffing cost at the time. ENVIRONMENTAL REVIEW This 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 reasonably foreseeable indirect physical change to the environment.