thank you, ms. gorum. >> thank you. this resolution has to deal with the city's backup data storage in case of a disaster and recovery of said data so that operations can continue. so before you and for your conversation is a resolution authorizing a renewal agreement originally before and approved by the board in 2013 for use of space and communication services within a state of california technology agency's data center in rancho cordova by the city's technology disaster recovery services. it lapses next week on june 30th, and it would be updated for a three-year term through the end of june 2021. that's the length of terms that the state will give. the rates the state charges are non-negotiable. they're set by the state of california rate schedule. not the exceed amount, we can't go over it, 283 -- $385,938 for all three years. the annual cost for the first year under the proposal is $756,840. that is, again, up to that amount. the second and third years increase annually by 5%. the increase is not only due to the ra