AgdaPkt 2007-06-25 - Laserfiche WebLink

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'REPORT 6.1G . Page 1 To the HQnorable Mayor and City Council From tl;lfl Ci ,: Miii". .~r June 25, 2007 SUBJECT Five-year agreement to continue providing information technology services to the City of Burlingame ReCOMMENDATION Approve by motion the five-year agreement to provide information technology services to the City of Burlingame and authorize the City Manager to sign the agreement under which Redwood City will provide information technology services to Burlingame between July 1, 2007 and June 30, 2012. BACKGROUND On February 23, 1999, the cities of Redwood City and Burlingame entered into an agreement for Redwood City to provide information technology services to the City of Burlingame. The agreement became effective on July 1, 1998, for a term through June 30, 1999. and was renewable on a year-to-year basis for each fiscal year from July 1 through June 30. On September 2, 2003, the Parties executed Amendment No. 1 to the original agreement to renew the agreement, adjust the hourly rates and commitments, and restate the terms, conditions, and services of the agreement. On August 8, 2006, the Parties executed Amendment No.2 to the original agreement to once again renew the agreement, adjust the rates and commitments, and restate the terms, conditions, and services of the agreement. In October, 2006, due to the unpredictability of the rate increase each year, the City of Burlingame requested Redwood City provide them with a guaranteed cap on the annual increase of the hourly rates charged for information technology services. Redwood City's City Manager, Finance Director, and IT Manager analyzed several cost scenarios and concluded a cap of a six percent increase, when balanced with a guaranteed purchase of 3,425 hours per year for five years, proved acceptable to the City of Redwood City. They also concluded a four percent minimum increase was appropriate protection to Redwood City for the five year life of the contract. Burlingame agreed to the foregoing terms and wished to revise the scope of work and fee schedule, spelled out in Amendment No.3, and enter into a new five-year agreement for information technology support services. The amended agreement provide~ for a rate increase of between four percent and six percent, depending upon 'Ra8wod8 City's oudgeted costs, with a minimum of 3,425 hours purchased. The (lgreement was approved by the City of Burlingame's City Council on May 21,2007.