SR-101-003-04-04 (2)
Council Meeting: March 23, 2004 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Contract Addendum for Maintenance of City’s Financial
Management System
Introduction
This report recommends that the City Council authorize the City Manager to
negotiate and execute an addendum to Contract #6951 (CCS) with PeopleSoft
USA, Inc., for annual software maintenance of the City’s financial management
information system.
Background
In March 1998, the City Council authorized the purchase of a new financial
management system from J.D. Edwards World Solutions, Inc., a software vendor
since purchased by PeopleSoft USA, Inc. The cost of the system was $377,925
and $48,713 for annual software maintenance. The system is the backbone for
all financial activity for the City and is integral to compiling the annual budgets
and comprehensive annual financial reports.
Discussion
The maintenance provision of the original agreement covered a period of 3 years
at a cost of $48,713 with annual increases no greater than the Consumer Price
Index or 10 percent, whichever was less. PeopleSoft has agreed to provide
software maintenance services at a cost of $57,600 annually plus applicable
taxes through March 31, 2005, with annual increases of not more than 5 percent
in each of the following three years ending March 31, 2008. Further adjustments
may be required in future years.
Budget/Financial
Funds for annual software maintenance are in account number 01222.533580.
Costs for future years’ maintenance will be provided in the Finance Department’s
annual budgets.
Recommendation
It is recommended that City Council authorize the City Manager to negotiate and
execute a contract addendum with PeopleSoft USA, Inc. for maintenance of the
City’s financial management information system.
Prepared by: Steve Stark, Director of Finance
Candace Tysdal, Financial Operations Manager
Gayle Kirby, Financial Systems Development Coordinator