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Santa Monica
City Council Meeting: April 26, 2011
Agenda Item: 3,I
To: Mayor and City Council
From: Carol Swindell, Director of Finance
Subject: Ongoing Maintenance for Oracle Financial System Software
Recommended Action
Staff recommends that the City Council approve a sole source purchase order with
Oracle USA, Inc., aCalifornia-based company, for continued software maintenance and
support services for a total amount not to exceed $345,712 for the two-year period of
July 1, 2011 through June 30, 2013, for a total four-year agreement not to exceed
$704, 527.
Executive Summary
In November 1995 and March 1998, the City Council authorized the purchase of a new
human resource and payroll system from Peoplesoft, Inc., and a new financial
management system from J. D. Edwards, respectively. Both systems are now owned
and operated by Oracle USA, Inc. In August 2009, City Council authorized a sole
source purchase order with Oracle for the payroll system maintenance for a total
amount not to exceed $578,695 over four years. Staff recommends modifying the total
to $704,527 to cover the addition of the financial management system maintenance.
The two-year cost of maintenance for the fiscal years beginning July 1, 2011, and July
1, 2012 is $345,712.
Discussion
The software licenses previously purchased by the City for the Peoplesoft Human
Resource and Payroll System and J.D. Edwards Financial Management System are
perpetual and require no renewal. However, in order to receive critical support and
regular software updates and to be in compliance with federal and state payroll
regulations, the City must continue software maintenance. Oracle has agreed to
provide maintenance for both systems and with costs increases limited to not more than
5 percent in each of the two years ending June 30, 2013.
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Financial Impacts & Budget Actions
The cost for software maintenance and support is budgeted in two departments,
Information Systems and Finance. Funds in the amount of $345,712 will be included in
the FY11-13 proposed budget for Council review and approval. The account
distribution will be as follows:
• $144,433 from 01222.533580, and
• $201,279 from 01243.533580.
Prepared by: Candace Tysdal, Assistant Director of Finance
roved:
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Carol Swindell
Director of Finance
Forwarded to Council:
Rod Gould
City Manager
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