AgdaPkt 2011-08-22 - Laserfiche WebLink

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6.1.L. - Page 1 RE PO RT To the Honorable Mayor and City Council From the City Manager August 22, 2011 SUBJECT Agreement to provide Payroll Services to the City of San Carlos RECOMMENDATION By motion, approve an agreement to provide payroll services to the City of San Carlos and authorize the City Manager to execute the contract to provide such services; and, by motion, authorize the City Manager, with the City Attorney's approval, to make limited minor amendments to the agreement. BACKGROUND In January of this year the City of San Carlos began deliberating options regarding the provision of fire and emergency services in their community. The San Carlos City Council expressed a desire to contract out fire protection and emergency services provided to its community. At the San Carlos City Council Meeting on April 25, 2011, council members reviewed and discussed all proposals submitted and selected the proposal put forth by the City of Redwood City. Following this selection representatives from both cities have met frequently to fine-tune the proposal and draft a mutually agreeable hybrid contract. During these discussions the City of San Carlos also expressed an interest in having Redwood City provide payroll services for their fire employees. Redwood City Finance department staff began negotiating an agreement under which Redwood City would provide payroll services for San Carlos Fire Department employees. These negotiations expanded and led to an agreement for Redwood City to provide payroll service for all City of San Carlos employees. Under the recommended agreement Redwood City will provide payroll services and payroll reporting for all City of San Carlos employees including but not limited to: processing timecards entered by San Carlos employees; calculating employees' gross pay; calculating employees' net pay; calculating and remitting Federal and State taxes; deducting and remitting wage garnishments; calculating PERS contributions (employee and employer) and preparing, reconciling, and submitting PERS reporting; preparing, reconciling, and submitting quarterly Federal and State tax reports; issuing annual W- 2's; processing retroactive adjustments to salary and benefits; and all related payroll reporting. The City will develop payroll software and will provide on-going support to ensure that the software remains operational. One-time initial training will also be included. The functionality of the payroll system deployed in September 2011 will have substantially