AgdaPkt 2014-06-23 Closed and Joint SA

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7.1.H. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager June 23, 2014 SUBJECT Amend the Financing and Information Technology Services Agreement between the City and Silicon Valley Clean Water, formerly South Bayside Systems Authority RECOMMENDATION By motion, approve and authorize the City Manager to execute Amendment No. 1 to the Financing and Information Technology Services Agreement with Silicon Valley Clean Water (SVCW). BACKGROUND Since SVCW's inception, the Redwood City Finance Department has performed all of SVCW's accounting and financial support functions including but not limited to payroll, accounts payable, general ledger, and treasury management. In the late 1980's, Redwood City converted SVCW's financial record keeping from a private vendor to Redwood City's financial system support by Information Technology division (IT). In July 2012, the City Manager approved a two year renewal of the agreement between the City and the SVCW, by which the City furnishes accounting and information technology services to SVCW. ANALYSIS Approval of this recommended amendment will extend the services the City provides to SVCW for an additional one year period. In addition to extending the period an additional year, fees for Financial Services and Computer Technology were increased by the same rate of increase of the Consumer Price Index, (CPI), and fees were increased for Information Technology's services on a hourly basis as well, continuing at approximately 14% less than IT's full hourly rate as has been the case for several years. ALTERNATIVES The City Council may elect not to amend the agreement to provide services to SVCW. Doing so would reduce anticipated revenues in FY 2014/15 by approximately $123,000. FISCAL IMPACT The amendment will increase Redwood City's revenue in FY 2014-15 by $5,317 over FY 2013-14.