HomeMy WebLinkAboutAgenda Report - October 5, 2005 E-16AGENDA ITEM Fwap )(9
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COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Authorizing Renewal of Support Agreement for
J.D. Edwards Software System from Oracle Corp., of Redwood City,
CA ($27,530.00) (ISD).
MEETING DATE: October 5, 2005
PREPARED BY: Information Systems Manager
RECOMMENDED ACTION: That the City Council adopt a resolution authorizing the renewal of
the annual support agreement for J.D. Edwards Software System
from Oracle Corp., of Redwood City, CA $27,530.00, and grant City
Manager authority to approve subsequent annual renewals.
BACKGROUND INFORMATION: On October 1, 1997 the City Council adopted Res. No 97-157 in
which it appropriated $400,000.00 for the purchase and implementation of the J.D. Edwards software
package. The purchase was made following an exhaustive research and evaluation process in which
many software products were examined.
The J.D. Edwards system includes several application modules which serve the City's mission critical,
core functionality. These applications include General Ledger, Payroll/Human Resources, Accounts
Payable, and Budget. These software applications are fully integrated and operate on the City's IBM
AS400 mid-range computer system.
The City relies upon the manufacturer to provide ongoing maintenance and support services for the
installed software, for a fee. The annual support charge is $27,530.00. Included in the support agreement
are periodic software updates and security patches, plus telephone support for City programmers and
technicians, should the need arise.
In 2003 software manufacturer PeopleSoft purchased the J.D. Edwards Company. In December 2004
PeopleSoft was sold to Oracle Corp., its current owner. Accordingly, this software maintenance and
support agreement will be made with Oracle Corp.
It should be noted that this software package will likely be phased out by its new owner, Oracle Corp.,
over a period of years. The City is currently addressing this eventuality and will likely make
recommendations to the City Council concerning this issue at some time in the future.
In the meantime, staff feels it imperative to continue to have a maintenance and support agreement in
force for this software. Council is also being asked to grant the City Manager authority to approve
subsequent annual renewals of this contract, provided the renewals are routine and not materially
different.
APPROVED:
Blair hg %, City Manager
There are no suitable alternatives to not renewing this support contract. While there are many third -party
vendors willing to sell the City support contracts, to date none of them have been deemed adequate or
sufficiently reliable to recommend as a replacement.
Given the criticality of this software, staff recommends renewing the support agreement with Oracle Corp.
in the amount of $27,530.00.
FISCAL WPACT: This item is budgeted.
FUNDING AVAILABLE: ISD SUBLET SERVICE CONTRACTS -100411.7335 ($27,530.00)
s R. Krueger, Finance Director
Steve Nrann
Information Systems Manager
RESOLUTION NO. 2005-213
A RESOLUTION OF THE LODI CITY
COUNCIL AUTHORIZING RENEWAL OF
ANNUAL SUPPORT AGREEMENT FOR
J. D. EDWARDS SOFTWARE SYSTEM
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the annual support agreement for J. D. Edwards software system from Oracle
Corp., of Redwood City, California, in the amount of $27,530.00; and
BE IT FURTHER RESOLVED that the City Council further authorizes and directs
the City Manager to approve subsequent annual renewals of this contract, provided the
renewals are routine and not materially different.
Dated: October 5, 2005
I hereby certify that Resolution No. 2005-213 was passed and adopted by the
Lodi City Council in a regular meeting held October 5, 2005, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, Mounce, and
Mayor Beckman
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Hitchcock
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLACKSTON
City Clerk
2005-213