Title
Resolution to Approve Updated Schedule 26 to the Interagency Agreement for Collaborative Technology and Services for Data Center Services with Washtenaw County ($190,569.90 over a 3-year period)
Memorandum
Attached for your review and approval is a resolution authorizing the approval of the updated Schedule 26 to the Interagency Agreement for Collaborative Technology and Services, covering the period of October 1, 2025 through September 30, 2028 (“Agreement”).
On February 16, 2016, City Council approved Resolution R-16-051 creating Schedule 26 to the Interagency Agreement for Collaborative Technology and Services. The updated Agreement outlines the continued provision of Data Center Services by the City of Ann Arbor to Washtenaw County and reflects updated operational, maintenance, staffing, and utility cost-sharing arrangements.
The Agreement also defines:
- Shared responsibility for major capital improvements (allocated 75% City / 25% County).
- A fee recalculation option based on actual costs, allowed annually with proper notice.
- Automatic renewal for an additional three-year term unless notice is provided at least 180 days before expiration.
- Provisions for transition to cloud services, including notice and cooperative migration planning.
Budget/Fiscal Impact: The City’s portion of Data Center Services is planned for and budgeted in the FY2026 Information Technology Services Fund budgets, with plans to budget for it in FY2027 and FY2028 Information Technology Services Fund budgets. Under the agreement, Washtenaw County will pay an annual fee of $63,523.30, representing 50% of actual operating, maintenance, utility, and labor costs associated with the jointly operated data centers (Justice Center and Wheeler Service Center), as outlined in the updated cost methodology on pages 3-4 of the schedule.
Staff
Prepared by: Joshua Baron, Director, Information Technologies Service Unit
Reviewed by: Kim Hoenerhoff, Financial Analyst
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City of Ann Arbor and Washtenaw County are parties to the Interagency Agreement for Collaborative Technology and Services, which enables intergovernmental cooperation and shared technology services;
Whereas, City Council approved Resolution R-16-051 on February 16, 2016 creating Schedule 26 to the Interagency Agreement for Collaborative Technology and Services.
Whereas, Schedule 26 to the Interagency Agreement has been updated to define the scope, responsibilities, cost-sharing methodology, and service expectations for the continued provision of Data Center Services for the term October 1, 2025 - September 30, 2028 (“Agreement”);
Whereas, The City will receive an annual payment of $63,523.30 from Washtenaw County to cover 50% of the operational, maintenance, utility, and labor costs associated with the jointly operated data center facilities, with such revenue budgeted within the Information Technology Services Unit;
Whereas, The Agreement includes provisions for notice of major service outages, maintenance expectations, termination notice requirements, and cooperative planning in the event of a future transition to cloud-based infrastructure; and
Whereas, The Agreement continues to support collaborative service delivery and avoids the need for duplicative data center infrastructure between the City and County;
RESOLVED, That City Council approve the updated Schedule 26 to the Interagency Agreement for Collaborative Technology and Services, with the City of Ann Arbor as Provider and Washtenaw County as Subscriber, for Data Center Services for the period October 1, 2025 - September 30, 2028;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the Agreement after approval as to substance by the City Administrator and approval as to form by the City Attorney;
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution regardless of fiscal year; and
RESOLVED, That the City Administrator is further authorized to approve future administrative amendments, including annual fee recalculations based on actual costs, consistent with the methodology outlined in the Agreement.