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HomeMy WebLinkAbout06 - CC-6 - Year Two of the Support Period of Rimini - 3/3/2015CITY COUNCIL AGENDA REPORT MEETING DATE: March 3, 2015 ITEM NUMBER: CC -6 SUBJECT: YEAR TWO OF THE SUPPORT PERIOD OF RIMINI STREET FOR ORACLE/PEOPLESOFT SUPPORT SERVICES DATE: February 18, 2015 FROM: INFORMATION TECHNOLOGY DEPARTMENT PRESENTATION STEVE ELY, I.T. DIRECTOR BY: FOR FURTHER INFORMATION CONTACT: STEVE ELY, 714-754-4891 RECOMMENDATION: Staff recommends that the City Council authorize the City CEO to sign the Purchase Requisition for $115,855 with Rimini Street, Inc. (Rimini), to continue providing support for the City's Oracle/PeopleSoft products on Year Two of the Support Period commencing on March 19, 2015. BACKGROUND: The City entered into a Master Services Agreement (MSA) with Rimini on February 24, 2014 for Rimini to provide Oracle/PeopleSoft technology support services to the City's Financial, Human Resources, database, and eApplications software systems, replacing Oracle Corporation that had been the one source of support for the City's PeopleSoft products for many years. The support period covered by the MSA with Rimini ends on March 18, 2029. ANALYSIS: The Oracle/PeopleSoft software support is a significant portion of the City's daily business processes - from processing cash receipts to paying vendors. The City cannot afford to be without access to these applications for any extended period of time. Due to the enormous cost of maintaining annual support for these products, staff continues to look into other potential software solutions that may make better financial sense for the City. In the meantime, Rimini satisfies the City's need for uninterrupted continuous support of the PeopleSoft systems. ALTERNATIVES CONSIDERED: Proceeding on a Time -and -Materials support basis is not available through Rimini Street or Oracle Under the terms of the MSA with Rimini, for "the period March 19, 2015 through March 18, 2016 (optional Year 2 of the Support Period), the Annual Support Fee shall be $115,855.00..." The rate of increase for the second support year and the succeeding support years until Year 15 is 5%. Staff is still looking into other potential software solutions that may make better financial sense for the City. Once staff has researched all other possibilities, it will present those findings to the City Council. FISCAL REVIEW: Funding for this agreement is included in the fiscal year 2014-15 adopted budget. LEGAL REVIEW: Legal has reviewed the documents and approved them as to form and content. CONCLUSION: Authorizing the CEO to sign the Purchase Requisition for Rimini for the Second Support Period Year of the MSA will provide for the continued support necessary to maintain the City's existing infrastructure and minimize the danger from system outages. STEVEN ELY I.T. Director STEPHEN DUNIVENT Interim Finance Director Attachments: 1. Purchase Requisition Tom Duarte City Attorney