(7)Software Support - Laserfiche WebLink

Browse Search

CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF MAY 5, 2009 ITEM #8 TO: Honorable Mayor and City Council FROM: Jeannette Olko, Electric Utility General Manager SUBJECT: Approve the Annual Renewal of Software Support Services with Oracle USA, Inc. for the SPL Enterprise Asset Management Software in the Amount of $51,030.36, for the Period July 1, 2009 through June 30, 2010, in accordance with Colton Municipal Code, Title 3, Chapter 3.08.070, Section (g), and Chapter 3.08.140, Sections (b) and (e). DATE: April 27, 2009 BACKGROUND: In October, 2001, •The City of Colton issued a Request for Proposal for the implementation of a Work Order System for the Electric Utility Department. On April 16, 2002, City Council awarded a contract to Synergen, Inc. for the license and implementation of a work order system to Synergen, Inc. City Council approved a change order to the contract on October 15, 2002, to include modules for Purchasing and Inventory. Since the award of the contract, Synergen, Inc. has merged with Oracle USA, Inc, and now operates under the Oracle name. DISCUSSION/ANALYSIS: The initial contract included a provision for software support services to be renewed annually at the start of each fiscal year. The annual support agreement fee is calculated at twenty percent (20%) of the Base License Fee, plus an inflationary factor of three percent (3%). The cost for FY 2009/2010 is $51,030.36 and is billed to the City quarterly. The software support includes updates to the software, as well as technical support. Although the current support services agreement does not expire until June 30, 2009, in order to prevent any disruption in support services, Oracle USA, Inc. requires notification from the City of our intent to renew the service agreement no later than June 1, 2009. The form of agreement will be a City of Colton Purchase Order. The Purchase order and subsequent payments will be issued after July 1, 2009 from the FY 2009/2010 budget. Per the City of Colton Municipal Code, Chapter 3.08.070, Section (g) requires that the City Council approve any professional services agreement renewals for amounts of $25,000 or above. Furthermore, Colton Municipal Code, Chapter 3.08.140, Sections (b) and (e), respectively, allow exceptions to the competitive bidding requirements when no competitive market exists, or when it is in the best interest of the City's administrative operations to dispense of public bidding for non-public projects. Both situations apply in this case as Oracle USA, Inc. owns the software and there are no other vendors who can provide support or updates for their work order and asset management programs. FINANCIAL IMPACT: Funds will be included in the Electric Utility Administration Professional Services Account Number 520- 8000-8001-2350-0923-000 for FY 09/10.