AgdaPkt 2011-09-12 - Laserfiche WebLink

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6. 1. B. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager September 12, 2011 SUBJECT Extend the agreement to provide information technology services to the City of East Palo Alto for an additional three (3) years RECOMMENDATION Approve first amendment and authorize the City Manager to execute the first amendment in the amount of $281,100 for software development, network, and desktop support services sold to the City of East Palo Alto. BACKGROUND The City receives approximately $915,000 annually from information technology services provided to other local agencies. The City of East Palo Alto contributes over $280,000 of those revenues through information technology services purchased by them. On August 16, 2007, the cities of Redwood City and East Palo Alto entered into an agreement for Redwood City to provide information technology services to the City of East Palo Alto. The agreement's terms were August 16, 2007 through June 30, 2008. On June 23, 2008, the parties executed a three -year information technology support agreement in which Redwood City would continue providing information technology services to the City of East Palo. The agreement became effective on July 1, 2008, for a term through June 30, 2011. The City of East Palo Alto would like to continue receiving information technology support services from the City of Redwood City for an additional three -years covering the period beginning July 1, 2011 and ending June 30, 2014. The agreement was approved by the City of East Palo Alto's City Council on June 28, 2011 and signed by East Palo Alto staff on August 11, 2011. ALTERNATIVES Terminate our information technology support relationship with the City of East Palo Alto, thus lowering annual revenues by approximately $281,000 for FY 2011/12. This will require Redwood City to terminate a minimum of one employee unless an equivalent number of hours are sold elsewhere. FISCAL IMPACT