SR-08-28-2012-3FCity of City Council Report
Santa Monied
City Council Meeting: August 28, 2012
Agenda Item: 3
To: Mayor and City Council
From: Jory Wolf, Chief Information Officer
Subject: Maintenance for Payroll and Financial Systems Software
Recommended Action
Staff recommends that City Council:
1. Authorize the City Manager to negotiate and execute a contract with Rimini Street
Inc., a Nevada -based company, in the amount of $265,000 to provide
maintenance and support for the City's payroll and financial systems for a period
of three years.
2. Authorize the budget changes as outlined in the Financial Impacts and Budget
Actions section of this report.
Executive Summary
The City operates J.D. Edwards One World (J.D. Edwards) and PeopleSoft Human
Resources Management Systems (PeopleSoft) to manage all the City's payroll and
financial operations. Historically, support and maintenance for these systems could
only be provided by one vendor, Oracle USA. Under its support agreement with Oracle,
the City would have to upgrade its J.D. Edwards system in 2013. Accordingly, the City
began investigating vendors for this effort. In the process, staff determined that Rimini
Street, Inc., a third party vendor, was qualified to provide enhanced support for the
City's payroll and existing financial systems at a reduced cost to the City. A competitive
bid process conducted by the City of Overland Park, Kansas in 2009 and 2010, selected
Rimini Street as the company best - suited to provide support for its J.D. Edwards and
PeopleSoft applications. The City of Overland Park found that Rimini Street had the
capacity and skill to provide the required support services, at a substantial cost - savings.
Pursuant to section 2.24.080(b) of the Santa Monica Municipal Code, Exception to
competitive bidding, Staff recommends entering into an agreement with Rimini Street,
Inc. to provide maintenance and support for the City's Oracle owned J.D. Edwards and
PeopleSoft systems for a period of three years in an amount not to exceed $265,000.
Background
In November 1995, the City Council authorized the purchase of a new human resource
and payroll system from PeopleSoft. Later, in March 1998, Council approved the
purchase of a new financial management system from J.D. Edwards. Both systems are
now owned and operated by Oracle USA. At the time, the City contracted with Oracle to
provide maintenance and support for the systems because they were the only vendor
that could provide support and systems maintenance.
On August 2009, City Council authorized a sole source purchase order with Oracle
extending support and system maintenance for PeopleSoft through June 30, 2013. In
April 2011, City Council also authorized a four -year purchase order to extend support
and system maintenance for J.D. Edwards through June 30, 2013. Under the current
support terms with Oracle, the City is required to upgrade its J.D. Edwards system in
2013 or lose its maintenance support.
Discussion
In April 2012, a committee comprised of members from the Finance, Human Resources,
and Information Systems departments researched the market for third -party vendors
that could provide support services for J.D. Edwards and PeopleSoft. Staff found Rimini
Street to be the only vendor that could provide the support and the system maintenance
required to maintain both J.D. Edwards and PeopleSoft, including supporting all existing
customizations and enhancements and providing a dedicated technical specialist.
Vendor Selection
The City of Overland Park, Kansas, issued an RFP in May of 2009 for J.D. Edwards
support services and conducted a similar RFP process again in March 2010 for
PeopleSoft HRMS support services. In both cases, he City of Overland Park selected
Rimini Street as the company best - suited to provide support for its J.D. Edwards and
PeopleSoft applications. Overland Park found -that Rimini Street had the capacity and
skill to provide the required support services, and at a substantial cost - savings. Staff
evaluated Rimini Street's proposal, which would significantly reduce the City's costs
associated with support of its financial systems and eliminate the need for the City to
upgrade its software. Staff also spoke with other government entities (City of Eugene,
Eugene, OR; City of Boise, ID; and Spokane County, WA) that moved their support and
maintenance from Oracle to Rimini Street.
Pursuant to section 2.24.080(b) of the Santa Monica Municipal Code, Exception to
competitive bidding„ staff recommends contracting with Rimini Street to provide
maintenance and support for the City's J.D. Edwards and PeopleSoft systems for a
period of three years in an amount not to exceed $265,000.
Financial Impacts & Budget Actions
The contract for maintenance and support for a three -year term is $265,000, including a
15% contingency. There are funds available in the FY 2012 -13 budget to cover the
three -year term as follows:
01243.533580 $99,451
01222.533580 $71,186
C018009.589000 $94,363
TOTAL $265,000
Prepared by: Al Dave, Software Systems Division Manager
Approved:
46Ys
hr olf ief Information Officer
3
Forwarded to Council:
Rod Gould
City Manager
Reference Contract No.
9633 (CCS).