Title
Oracle Citywide Software and Hardware Maintenance and Support (Ordinance S-43373)
Description
Request authorization for the City Manager, or his designee, to authorize three years of continued payment authority for citywide software licensing, support and maintenance with Oracle America, Inc. (Oracle) in an amount not to exceed $19,101,000 for applications and technologies in multiple departments and several critical citywide systems. The total amount includes savings of approximately $540,000 resulting from a three-year agreement. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The City uses Oracle applications and technologies in multiple departments and for several critical citywide systems, such as the Police Department's Records Management System, the Customer Care and Billing system used for municipal billing, the Human Capital Management system used for human resources and payroll functions, the Planning and Development Department's permitting system, and the citywide Business Intelligence infrastructure. These systems are critical to City operations, as they bring in revenue from permitting and water and solid waste billing, and because they manage critical operations such as payroll and the Police Department's records management.
Over the last few years, the Information Technology Services (ITS) Department has been working with citywide departments to evaluate and consolidate licensing, support and maintenance agreements with Oracle. These are the annual support and maintenance agreements for software and systems in use by the City, and which were previously purchased with City Council approval. Consolidating the agreements has allowed the City to utilize better discounts, identify and eliminate redundant products, and reduce administrative overhead by reducing the number of invoices being processed. The number of invoices processed annually for Oracle has been reduced from approximately 200 to less than 60. Additionally, by entering into three-year support and maintenance agreements, the City can realize an additional savings of approximately $540,000 over the three-year period through avoiding annual upcharges ranging from 3 to 5 percent. This authorization covers the majority of Oracle licensing, support and maintenance in use by the City.
Financial Impact
The annual cost for the agreements is estimated to be $6,367,000, for a total three-year amount not to exceed $19,101,000. Enterprise, special revenue and general funds are available in the ITS Capital Improvement Program and various departments' budgets.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Information Technology Services Department.