HomeMy WebLinkAbout06 - CC-6 - Year Four of Support Period of Rimini St - 2/21/2017CITY COUNCIL AGENDA REPORT
MEETING DATE: February 21, 2017 ITEM NUMBER: CC -6
SUBJECT: YEAR FOUR OF THE SUPPORT PERIOD OF RIMINI STREET FOR
ORACLE/PEOPLESOFT SUPPORT SERVICES
DATE: February 9, 2017
FROM: INFORMATION TECHNOLOGY DEPARTMENT
PRESENTATION STEVE ELY, I.T. DIRECTOR
BY:
FOR FURTHER INFORMATION CONTACT: STEVE ELY, 714-754-4891
RECOMMENDATION:
1. Authorize the City Manager to sign the Purchase Requisition for $127,730 with Rimini Street, Inc.
(Rimini), to continue providing support for the City's Oracle/PeopleSoft products for Year Four of
the Support Period commencing on March 18, 2017.
2. Authorize the City Manager to sign future purchase requisitions, as necessary, for the remainder
of the Support Period.
BACKGROUND:
For several years, Oracle/PeopleSoft was providing maintenance support for the City's Financial and
Human Resources software system. The Oracle/PeopleSoft software package was originally
purchased in 1997 and had been updated many times since then through licensing and support
contracts. Oracle Corporation provided the City software update license and service support for the
following PeopleSoft products:
(1) Financial Modules: General Ledger; Accounts Receivables; Accounts Payable; Project
Costing; Asset Management; Billing; Purchasing, Inventory; and Budgets
(2) Human Resource Modules: Time and Labor; Payroll; Benefits Administration; and Human
Resources
(3) Silver Support for CSI #1133239 (Database)
(4) eApplications: ePay-Employee Count Perpetual; Candidate Gateway; eProfile - Employee
Count Perpetual; eProfile Manager Desktop - Employee Count; eBenefits - Employee Count
Perpetual; Conversion Only
Each of these products is still being used by different departments throughout the City. The Finance
Department uses the features provided by the Financial Modules and the eApplications. Also, each
department has primary users who access real time budget data throughout the year for making
payments and doing analyses.
Both the City Manager's Department (Human Resources) and Finance Department (Payroll) use the
Human Resource modules. Currently, the City uses a PeopleSoft application for online time-and-
record keeping for each payroll processed. The Information Technology Department uses the Oracle
database as the repository of all electronic data used by the PeopleSoft Financials and HR payroll.
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. Oracle Corporation had been one source of
ongoing support for these products, and its service fee was very high.
Due to the enormous cost of maintaining annual support for these products, staff looked into other
potential software solutions that could make better financial sense for the City. Staff also researched
options to reduce costs without reducing support levels, which led to a search for third- party vendors
capable of supporting maintenance of the City's Oracle/PeopleSoft modules and mandated tax
updates. This research led Staff to a third -party support provider, Rimini Street, Inc.
Staff had determined that out of the other potential vendors, only Rimini Street provides all of the
critical and necessary elements needed to satisfy the City's need for uninterrupted continuous
support of these systems, which are vitally important to the City's operations.
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. The
Support Period ends on March 18, 2029.
ANALYSIS:
Not only is Rimini Street capable of assisting the City with ongoing support with the
Oracle/PeopleSoft products, it also offered to reduce the annual cost by almost 50%.
So far, the City's Agreement with Rimini Street has yielded the following savings to the City:
Rimini Street
Annual Cost for Year One of Support: $110,338
Option Year Two: 115,854 (Option Yr. rate increase for renewal is 5%)
Option Year Three: 121,647 (Option Yr. rate increase for renewal is 5%)
Total for Three years: $347,839
Compared with Oracle's Fees: $220,675 (3/18/14 to 3/17/15 based on 3% Yr. increase)
227,295 (3/18/15 to 3/17/16 based on 3% Yr. increase)
234,114 (3/18/16 to 3/17/17 based on 3% Yr. increase)
Oracle's total fees for three years: $682,084
Total Savings in three years: $334,245
By moving Oracle/PeopleSoft support to Rimini Street, the City had immediately saved a significant
amount in support fees while receiving added services. City staff had gained access to expert
support (including support of the City's unique customizations) 24x7x365 from dedicated engineers.
This move ensured access to all break and bug fixes, interoperability support, and performance
support, as well as ongoing tax and regulatory updates.
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, the Annual Support Fee for Year 4 and onward shall
increase each year by 5% over the fee for services paid by the City for the immediately preceding
it
contiguous year. The service fee is increasing by $6,082; thus, the service fee for Year 4 will be
$127,730.
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 2016-17 adopted budget.
LEGAL REVIEW:
The City Attorney's Office has reviewed the documents and approved them as to form and content.
CONCLUSION:
Authorizing the City Managerto sign the Purchase Requisition for Rimini forthe fourth Support Period
Year and remaining Support Period years 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
THOMAS DUARTE
City Attorney
3
-ATTACHMENT 1
!`ITV AC / ALTA MCCA f AI 10^MkiIA I
"^I " .. "' `^'^
Purchase Requisition
W x Purchase Order ❑ Change Order ❑ Amendment
(Leave Blank for Time
Stamp
PO No./ PO Ref No.: .
(Assigned by Purchasing)
Business Unit: CITY Date Requisitioned: 2/9/17
Department: I.T. Division: Programming
Ship To Address:
Contact Person: Steve Ely Phone Number: 4891
Send Copy of P.O. to: ❑ Contact Person and / or Victoria Bamer
❑ Request is for Budgeted item(s)
❑ Request is for UNBUDGETED item(s)-(Memo Attached)
❑ Item(s) Pending Budget Amendment Request #_
❑ Requesting Sole Source (Justification Form Attached)
❑ Fixed Asset Tag Request
Item
No
Qty Unit
Items (Give Full Description: Size, Catalog No. Etc.)
Unit Price
Estimated
Amount
1
1 LT
PeopleSoft Support Services Agreement for 3/18/17 to 3/17/18
Available Appropriation: ❑ Yes ❑No
$127,730.00
As of:
,
,
Ifadditional lines are needed, please attach a second sheet.
Const./Prof. Svs. Agmt. Completion Date:
Insurance Required: ❑ Yes (Certificate attached ❑ No
Sales Tax (7.75%):
Include Shipping Fee:
Estimated Total Cost:
0.00
0.00
$127,730.00
Item No.
Account
Fund
Dept./Org.
Program
Project
Amount
1
590804
101
14600
50720
$127,730.00
Comments:
Total $127,730.00
Attached: Rimini Street's Invoice No. INV7549
Proper approvals are required before requisition can be processed.
Suggested Vendor: Rimini Street
Address:3993 Howard Hughes Parkway Suite 500 Ordered By:
Department Director/Authorized Signature
City, State, Zip Code:Las Vegas, NV 89169
Phone: 702-839-9671 Fax:702-973-7491 Approved By:
Director of Finance/Purchasing Officer
Contact Person: Sydney Alexander
Approved By:
Email: salexanderanri min !street. corn Chief Executive Officer (when required)
PURCHASING DIVISION USE ONLY
Vendor ID:
I
Buyer:
Insurance valid thru:
Ship To/Location:
I Due Date:
Standard Comments: ACC-ALL-ARR-BLA-
CON -DCP- DIS - FCA-FCI- FIX- INS - IS - IST-ORG -QTR- REM- SUB -T&C
FINANCE DEPARTMENT USE ONLY
Available Appropriation: ❑ Yes ❑No
As of:
Confirmed By:
Rev FY16/1T 01.31.17 y
Rimini Street
3993 Howard Hughes Pkwy Suite 500, Las Vegas, NV 89169
Bill to:
City of Costa Mesa, California
Accounts Payable
P.O. Box 1200
Costa Mesa, CA 92628
Please Remit To:
Rimini Street, Inc.
P.O. Box 846287
Dallas, TX 75284-6287
For billing questions, please call Finance at +1 702.839.9671
or send email to finance@riministreet.com
INVOICE
Invoice Number ........: INV7549
Date ....................: 01/24/17
Customer PO
Payment Terms
Discount Terms
Sales Rep ID
Due Date
Bank of America - Collection
Net 54
2% Net 30
ABA Routing:
1 3/19/17
Description Amount
3/19/2017 through 3/18/2018
Statement of Work No. 1
Wiring/ACH Instruction:
127,730.00 USD
Beneficiary:
RIMINI STREET, INC.
Bank:
Bank of America - Collection
Account:
1416301187
ABA Routing:
026009593
SWIFT:
BOFAUS3N
ACH Routing (US Only):
121000358
127,730.00 USD
Subtotal
127,730.00 USD
Tax
0.00 USD
Total
127,730.00 USD
5