sr-081109-1iCity Council Meeting: August 11, 2009
Agenda Item: ~ _ z
To: Mayor and City Council
From: Jory Wolf, Chief Information Officer
Subject: Maintenance of Human Resource and Payroll System
Recommended Action
Staff recommends that the City Council approve a sole source purchase order .with
Oracle USA, Inc. for the purchase of software maintenance and support services for a
total amount not to exceed $578,695 over the next four years.
Executive Summary
In November 1995, the City Council authorized the purchase of a new Human Resource
and Payroll System from Peoplesoft, Inc., a software vendor since purchased by Oracle
USA, 'Inc. The system is the backbone for all human resource, benefits administration
and payroll activity for the City. The purchase of maintenance and support services is
necessary in order to support management of employee benefits and payroll and to
obtain quarterly tax updates to comply with federal and state payroll regulations. The
current annual cost of software maintenance and support services is $134,263, and
funds are available in the current fiscal year budget.
Discussion
The software licenses previously purchased by the City for the Peoplesoft Human
Resource and Payroll System are perpetual and require no renewal. However, in order
to receive critical support and regular software updates to be in compliance with federal
and state payroll regulations, the City must continue software maintenance through
Oracle USA, Inc. The maintenance provision of the original agreement has expired and
Oracle has agreed to provide software maintenance services at a cost of $134,263
annually, with annual increases of not more than 5 percent in each of the following three
years ending June 30, 2013.
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Financial Impacts & Budget Actions
The cost for software maintenance and support in fiscal year 2009-2010 is $134,263.
Funds are available in the Information Systems Department Computer
Equipment/Software Maintenance account 01243.533580. Future maintenance costs
will be included in the Proposed Budget of the respective year for Council's review and
approval.
Prepared by: Jory Wolf, Chief Information Officer
Approved: Forwarded to Council:
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