REPORT TO THE CITY COUNCIL May 24, 2018 FROM: BRYON HORN, Chief Information Officer Information Services Department BY: KEN ISHIMOTO, Administrative Manager Information Services Department SUBJECT ..Title ***RESOLUTION - 67th amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 appropriating $234,000 for increased communications equipment and services costs (Requires 5 affirmative votes) (Subject to Mayor's veto) ..Body RECOMMENDATION Staff recommends that Council Adopt the 67th Amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 appropriating $234,000 to increase the funding for communications equipment and services costs (Requires 5 affirmative votes). EXECUTIVE SUMMARY The Information Services Department (ISD) pays for the City's communication services (lines, phones, mobile devices, equipment, etc.) provided by our communication vendors. Additional appropriations of $234,000 are needed to fund remaining communication expenses for FY 2018. BACKGROUND ISD pays for the City's communication services (lines, phones, mobile devices, equipment, etc.). From fiscal years (FY) 2015 to 2017 communications costs have increased 40 percent. The increase is attributed to equipment purchases, new services and the elevated cost for legacy communication services. The FY 2018 projected communication costs are $222,400 over the previous year and $333,200 over current year adopted appropriations. Current year savings from other areas in ISD can offset a portion of the overage, but $234,000 in additional appropriations is needed to cover the remaining communication expenses in FY 2018. Annual Communication Expense FY Expended Increase Cumulative 2015 1,464,900 2016 1,726,000 261,100 261,100 2017 1,825,800 99,800 360,900 2018 (Projected) 2,048,200 222,400 583,300 ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference is not considered because it does not include a bid or award of a construction or service contract. FISCAL IMPACT Funds are available in the Information Services Operating Fund. The approval of this item will increase appropriations in ISD's fiscal year 2018 budget. Attachment: 67th Amendment to the 2017-165 Annual Appropriation Resolution