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Title:
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Authorization to renew Annual Software Maintenance Contract with Oracle (Redwood Shores, CA) to support the City's Enterprise Financial System.
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City of Culver City, California
City Council Agenda Item Report
Meeting Date: 11/14/05 Item Number: C-5
AGENDA ITEM:
Authorization to Renew the Annual Software Maintenance Contract with Oracle
(Redwood Shores, CA) to Support the City’s Enterprise Financial System.
Contact Person/Dept.: Michele Seals
Phone Number: 310.253.5959
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [ ] Action Item: [X] Attachments: [X]
Public Notification:
E-mail Master Notification List (11/10/05)
Department Approval:
John Richo 11/03/05
CAO Approval:
Jerry Fulwood 11/9/05
28
City Controller Approval:
Marlee Chang 11/9/05
RECOMMENDATION:
Staff recommends that the City Council authorize renewing the annual software
maintenance contract with Oracle (Redwood Shores, CA) to support the City’s
Enterprise Financial System.
BACKGROUND:
On November 9, 1998, City Council authorized contract awards to JD Edwards and
third-party vendors to provide software and implementation consulting services.
Included with the purchase was a maintenance contract to ensure that Culver City
receives upgrades to the software and technical support. Software upgrades are
necessary for continuous vendor support and legal compliance with financial
reporting and payroll/human resource processes.
In August 2003, JD Edwards was acquired by PeopleSoft and in December 2004,
Oracle acquired PeopleSoft. Since the acquisition, Oracle has continued to
reinforce its commitment to the existing JDE software users.
The City’s current maintenance contract was approved by City Council on December
13, 2004. The maintenance contract payment was issued in the amount of
$60,950.61. City of Culver City, California
City Council Agenda Item Report
29
DISCUSSION:
Oracle has communicated a strategy to the JDE and PeopleSoft clients that
supports their respective current software without additional expenditures. Oracle
has committed to maintaining each of the distinct software products until at least
2013. Oracle is in the process of developing a product (Fusion) that merges all
three products into one software application. Specific details are not yet available on
the FUSION product as the release date is not expected until the 2008/2009
timeframe.
The Oracle software maintenance contract remains unmodified from previous years.
The benefits include direct telephone support to knowledgeable software
technicians. If a problem is encountered that cannot be resolved over the telephone,
remote diagnostic assistance is also available to further facilitate resolution. This
maintenance program also ensures that software upgrades are immediately
provided without additional cost.
Staff recommends renewing the financial system maintenance contract with Oracle.
To date, the company has continued to provide excellent support for the JDE
software system. There is no indication that continuing support with Oracle will in
any way negatively impact the stability of the City’s financial system.
FISCAL ANALYSIS:
There is a 3.46% increase in this year’s maintenance contract. The authorization to
renew the annual software maintenance contract with Oracle , would result in the
expenditure of $63,060.18 (including tax). Sufficient funds have been allocated in
the Information Technology Software Maintenance Budget (10124100.600220) for
this maintenance contract.
ATTACHMENTS:
1. Oracle Service Renewal Agreement
MOTION:
That the City Council:
1) Authorize IT to pay $63,060.18 to Oracle for one year of financial software
maintenance;
City of Culver City, California
City Council Agenda Item Report
30
2) Authorize the City Attorney to prepare any appropriate documents; and
3) Authorize the Chief Administrative Officer to execute any required annual
renewal agreements on behalf of the City with Oracle.
MEETING DATE 11/14/05
AGENDA ITEM Authorization to Renew the Annual Software Maintenance
Contract with Oracle (Redwood Shores, CA) to Support the
City's Enterprise Financial System
ATTACHMENTS
Pages|109| Oracle Maintenance Agreement 1 — 5ORACLE
1 Nov 05
Michele Seals
City of Culver
9770 Culver Boulevard
CULVER CITY
CA 90232 3731
United States
Re Service Renewal # P JD M00815 000 73
Dear Michele Seals
Please find attached a quotation for the above service renewal The technical support services and
benefits you are receiving will expire or have expired on 30 Nov 05 This quotation is provided pursuant
to the terms and conditions of the valid license agreement that you executed when you acquired technical
support from Oracle formerly known as PeopleSoft for the licenses referenced on the above service
renewal your service order under this quotation is subject to Oracle s acceptance
In order to complete this service renewal and to ensure that there is no interruption to your technical
support please accept this service renewal in accordance with the attached Acceptance Details on or
before 8 Nov 05 An invoice including applicable sales tax GST or VAT (collectively referred to as
Tax ) will only be issued upon receipt of acceptance If your organization is tax exempt and is not a
U S federal government entity a copy of your tax exemption certificate (specifying Oracle USA Inc as
vendor) must be included with your purchase order or other form of payment
Oracle s technical support policies govern the terms of your technical support and are subject to change
in accordance with its terms The most current technical support policies including Oracle s
Reinstatement Policy can be found on the web at http //www oracle corn/support/policies html
Customers who allow technical support to lapse and later wish to reactivate it will be subject to Oracle s
then current Reinstatement Policy Applicable reinstatement fees may apply in addition to the annual
technical support fees
Oracle provides information and notices about technical support via e mail Accordingly it is important
that you provide updated e mail information with your order to ensure that you receive all communication
and notices from us
I would like to take this opportunity to thank you for your continued business If you require further
information please do not hesitate to contact me at your earliest convenience
Regards
Timothy McNeil
Oracle Support Services
E mail tim mcneil@oracle corn
Tel 925 694 6689
Fax 719 757 4274
Page 1 of 5 Contract Number P JD M00815 000 73ORACLE
Oracle Service Renewal
Quotation Date 1 Nov 05
Michele Seals
City of Culver
9770 Culver Boulevard
CULVER CITY
CA 90232 3731
United States
Tel
310 253 5959
Fax
E mail
michele seals@culvercity org
THIS QUOTATION IS VALID THROUGH 30 Nov 05
PLEASE DO NOT CHANGE ANY OF THE INFORMATION BELOW WHEN SUBMITTING YOUR
SERVICE RENEWAL ORDERS IN WHICH THE SERVICE DETAILS HAVE BEEN CHANGED ARE
NOT VALID AND YOUR ORDER WILL NOT BE PROCESSED If a change to the information provided
below is required please contact me and an updated service renewal quote will be provided to you in
accordance with Oracle s technical support policies located at http //www oracle corn/support/policies html
IService Level
Software Update License & Support End Date 30 Nov 06 I
Product Description
Start Date
1 Dec 05
Total Amount USD 60 562 00
Plus Applicable Tax
Page 2 of 5 Contract Number P JD M00815 000 73ORACLE
Acceptance Details
Oracle processes service renewal orders after receipt of a purchase order or other acceptable form of
payment such as a credit card for the total fees specified on the Oracle Service Renewal
PURCHASE ORDER. CREDIT CARD CONFIRMATION
Purchase Order
If accepting your service renewal by Purchase Order your Purchase Order must include the following
Service Renewal # P JD M00815 000 73
Term of Service 1 Dec 05 to 30 Nov 06
Local Tax if applicable
The terms of your agreement with Oracle formerly known as Peoplesoft and this order supersede the
terms of a Purchase Order
Please e mail or fax your Purchase Order to
Attn Timothy McNeil
Oracle Support Services
Fax 719 757 4274
E mail tim mcneil@oracle com
Customer City of Culver
From Michele Seals
Credit Card
If accepting your service renewal by Credit Card please complete the sections below and fax this
information to
Attn Timothy McNeil
Oracle Support Services
Fax 719 757 4274
E mail tim mcneil@oracle com
Customer City of Culver
From Michele Seals
Credit Card Number
Expiration Date
Authorized Signature
Print Name
Your credit card must remain valid for the entire Term of Service above Oracle will bill your credit card in
accordance with the Billing Terms below
Page 3 of 5 Contract Number P JD M00815 000 73ORACLE
PAYMENT TERMS
Payment Terms for all fees payable to Oracle are 30 NET and will be invoiced quarterly in arrears
ADDITIONAL ORACLE TERMS
There are no additional terms
Page 4 of 5 Contract Number P JD M00815 000 73ORACLE
Customer Details
Please verify and update the following information to enable us to provide an efficient and timely service
to your company If changes are required please e mail or fax the updated information to
Attention
E mail
Fax
Tel
Company Name
Service Renewal #
For Quotation
Contact
Company
Address
Tel
Fax
E mail
For Invoice
Contact
Company
Address
Timothy McNeil
Oracle Support Services
tim mcneil@oracle corn
719 757 4274
925 694 6689
City of Culver
P JD M00815 000 73
Michele Seals
City of Culver
9770 Culver Boulevard
CULVER CITY
CA 90232 3731
United States
310 253 5959
michele seals@culvercity org
John Richo
City of Culver
9770 Culver Boulevard
CULVER CITY
CA 90232 3731
United States
Tel
310 253 5950
Fax
E mail
John ncho©culvercity org
Page 5 of 5 Contract Number P JD M00815 000 73