TITLE
Recommendation to authorize City Manager, or designee, to execute an amendment to Master Purchase Agreement No. 33862 with Oracle America, Inc., for software licenses and related services, to increase the annual contract amount by $700,000, for a revised annual contract amount not to exceed $1,200,000 for the first year; thereafter, in an annual amount not to exceed $650,000, for ongoing maintenance and support services for as long as the County of Los Angeles in Software License Agreement Number MA-IS-1540029-1 is in effect; and
Increase appropriations in the General Services Fund Group in the Technology and Innovation Department by $840,000, offset by funds available. (Citywide)
DISCUSSION
On March 17, 2015, the City Council authorized the City Manager to execute Master Purchase Agreement No. 33862 with Oracle America, Inc., for software licenses and related services on the same terms and conditions afforded to the County of Los Angeles in Software License Agreement Number MA-IS-1540029-1 (County Agreement), for as long as the County Agreement is in effect, or until the City gives a 30-day notice of termination, for an amount not to exceed $500,000 annually.
City Council approval is requested to amend Master Purchase Agreement No. 33862 to enable the City to purchase additional software licenses and software features to enhance the performance, reliability, security and supportability of the Oracle database software used by major City systems, including Customer Information Management (CIS), Land Management Systems, Worker’s Compensation, Occupational Health Management, and Fleet Management. The new licenses will enable more consolidation and standardization of Oracle databases, will provide better database diagnostic and performance tuning features, and will enable the City to have more consistent support levels across Oracle databases.
This matter was reviewed by Deputy City Attorney Amy R. Webber on June 18, 2019, Purchasing Agent Tara Yeats on June 20, 2019, and by Budget Analysis Officer Julissa José-Murray on June 25, 2019.
TIMING CONSIDERATIONS
City Council action is requested on July 16, 2019, to ensure continued compliance with software licensing requirements.
FISCAL IMPACT
The amended contract will not exceed $1,200,000 for the first year and $650,000 annually thereafter. As only a portion of the existing contract was budgeted, an appropriation increase in the amount of $840,000 in the General Services Fund Group in the Technology and Innovation Department is requested. Costs for these services will come from funds available in the current fiscal year. In FY 20, an appropriation increase of $290,000 in the General Services Fund Group in the Technology and Innovation Department will be requested as part of the next Budget Adjustment council letter to cover the costs of the additional software licenses and software features. Structural funding for future years will be requested through the budget process for FY 21 and beyond. Costs will be recovered from client departments and budgeted through the annual Technology and Innovation Department MOU. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
LEA D. ERIKSEN
DIRECTOR OF TECHNOLOGY AND INNOVATION
APPROVED:
PATRICK H. WEST
CITY MANAGER