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Home My WebLink AboutStaff Report 3446 City of Palo Alto (ID # 3446) City Council Staff Report Report Type: Consent Calendar Meeting Date: 2/11/2013 City of Palo Alto Page 1 Summary Title: Approval of Funding for Oracle Contract Title: Approval of the renewal of and year two funding for Oracle Contract S11139794 From: City Manager Lead Department: IT Department Recommendation: Staff recommends that Council authorize the execution of the year two renewal of contract number S11139794 with Oracle America, Inc.; in the amount not to exceed $109,400. Staff recommends that Council authorize the City Manager or his designee to execute Year 3 of this contract, when it is due to start, for the same compensation, not to exceed $109,400, or to amend the compensation to a higher range or to a lower range, if necessary, but not to exceed $120,340. Background: The City uses Oracle databases and licenses for day-to-day operations. There are various systems the run on the Oracle platform. These systems are:  Public Works, Fleet Management o AssetWorks  Public Works, Water Quality o SCADA o Element o H2ODMS  Utilities, Engineering City of Palo Alto Page 2 o Topobase  Citywide Applications o SAP In 2012, the City of Palo Alto performed a “true-up” of its Oracle licensing needs. Since Oracle does not sell licensing, the City used a third-party vendor (Mythics, Inc.) for both the “true-up” as well as the annual maintenance of all Oracle licenses. Due to the “true- up” process with Mythics, Inc. the City did not have to act upon its year two renewal option with Oracle—this resulted in us skipping a year on the Oracle contract. Staff now needs to execute the year two renewal option with Oracle for the annual maintenance and licensing of its Oracle environment. Staff would also like to request authorization to allow the City Manager or his designee to execute Year 3 of this contract, based on Council’s approval of the annual budget. Summary of Key Issues: If Council’s authorization of this contract is not obtained, the City will be out of compliance with its Oracle maintenance and licensing agreement. Policy Implications: None. Resource Impact The funds for the payment of the contracts’ costs will come from the Techology Fund and are included in the FY 2013 budget. No additional funding is needed. Year Three funding will be included in the FY 2014 Budget, which will need to be approved in June 2013 for the Year Three expenditure to be executed. Environmental Review Approval of these contracts do not constitute a project under the California Environmental Quality Act (CEQA); therefore, no Environmental Assessment is required. Attachments: City of Palo Alto Page 3  Attachement A: Year Two invoice for Oracle Maintenance and Licensing (PDF) Page 1 of 8 Service Contract Number: 1844903 RL_v051910 26-Nov-12 KB PaigeCITY OF PALO ALTO INFORMATION TECHNOLOGY SERVICES250 HAMILTON AVENUE SECOND FLOORPALO ALTOCA 94301 United States Dear KB Paige The technical support services and benefits provided under service contract number 1844903 will expire,or have expired, on 16-Mar-13. Please find attached an ordering document for the renewal of this service contract. If applicable, the attached ordering document may describe services that you have ordered thatare in addition to the services that you are renewing. To ensure that there is no interruption to the technical support services and benefits provided underservice contract number 1844903, please order the technical support services on this ordering document by issuing a form of payment acceptable to Oracle in accordance with the attached Order ProcessingDetails section on or before 15-Feb-13. If further information is required, please contact me at the e-mail address or telephone number provided below. Regards, Ann Tran Oracle Support ServicesE-mail: ann.tran@oracle.com Tel.: 408.556.4833Fax: 408.556.4833 Page 2 of 8 Service Contract Number: 1844903 RL_v051910 Ordering Document Service Contract #:1844903 Renewal Contact:Ann Tran Offer Expires:16-Mar-13 Payment Terms:30 NET from date of invoice Telephone:408.556.4833 Fax:408.556.4833 Billing Terms:Quarterly in Arrears E-mail:ann.tran@oracle.com CUSTOMER: CITY OF PALO ALTO QUOTE TO BILL TO Account Contact:KB Paige Account Contact:ACCOUNTS PAYABLE Account Name:CITY OF PALO ALTO Account Name:CITY OF PALO ALTO Address: INFORMATION TECHNOLOGY SERVICES Address:PO BOX 10250 250 HAMILTON AVENUESECOND FLOOR PALO ALTOCA 94301 United States PALO ALTOCA 94303 United States Telephone:650 329.2284 Telephone: Fax: Fax: E-mail:kb.paige@cityofpaloalto.o rg E-mail: Oracle may provide certain information and notices about technical support via e-mail. Accordingly, please verify and update the Quote To and Bill To information above to ensure that such communicationsand notices are received from Oracle. If changes are required, please e-mail or fax the updated information to Ann Tran at ann.tran@oracle.com or 408.556.4833. Please also include service contract number 1844903 on such reply. Page 3 of 8 Service Contract Number: 1844903 RL_v051910 Service Details Service Level: Software Update License & Support End Date: 16-Mar-14 Product Description CSI # Qty License Metric License Level / Type Start Date Price SQL*PLUS - Developer 3069563 13 FULL USE 17-Mar-13 2,809.27 Programmer - Developer 3069563 19 FULL USE 17-Mar-13 1,620.73 Oracle Database Enterprise Edition - Universal Power Unit 3069563 960 FULL USE 17-Mar-13 19,016.60 Discoverer Administration Edition - Named User 3069563 2 FULL USE 17-Mar-13 988.47 WebDB Enterprise Edition - Nonstandard User 3069563 4 FULL USE 17-Mar-13 356.56 ORACLE SERVER EE 8I 8.1 17793491 1100 CONCURRENT DEVICE FULL USE 17-Mar-13 32,414.65 DIAGNOSTICS PACK 1.5 3069563 1100 CONCURRENT DEVICE FULL USE 17-Mar-13 2,160.98 TUNING PACK 1.5 3069563 1100 CONCURRENT DEVICE FULL USE 17-Mar-13 2,160.98 DEVELOPER REL1.0 3069563 1 DEVELOPER FULL USE 17-Mar-13 1,296.59 Designer - Developer 3069563 1 FULL USE 17-Mar-13 1,728.78 REPORTS V2.5 3069563 1 DEVELOPER FULL USE 17-Mar-13 806.55 Reports Server - Universal Power Unit 3069563 500 FULL USE 17-Mar-13 396.18 Forms Server - Universal Power Unit 3069563 500 FULL USE 17-Mar-13 396.18 Application Server Enterprise Edition - Universal Power Unit 3069563 960 FULL USE 17-Mar-13 6,316.25 Application Server Enterprise Edition - Concurrent Device 3069563 1100 FULL USE 17-Mar-13 4,321.95 Tuning Management Pack - Universal Power Unit 3069563 960 FULL USE 17-Mar-13 3,287.84 Diagnostic Management Pack - Universal Power Unit 3069563 960 FULL USE 17-Mar-13 3,287.83 Oracle Database Standard Edition - Named User Plus Perpetual 13920513 50 FULL USE 17-Mar-13 3,158.67 Spatial and Graph - Named User Plus Perpetual 18309686 50 FULL USE 17-Mar-13 1,089.00 Partitioning - Processor Perpetual 18309686 4 FULL USE 17-Mar-13 4,356.00 Page 4 of 8 Service Contract Number: 1844903 RL_v051910 Service Level: Software Update License & Support End Date: 16-Mar-14 Product Description CSI # Qty License Metric License Level / Type Start Date Price Oracle Database Enterprise Edition - Processor Perpetual 18309686 4 FULL USE 17-Mar-13 17,424.00 Subtotal: USD 109,394.06 Total Amount: USD 109,394.06 plus applicable tax Notes: 1. If any of the fields listed above are blank, then such field(s) does not apply for the applicable programs and/or hardware. 2. If a change to the Service Details provided above is required, please contact Ann Tran at 408.556.4833 or at ann.tran@oracle.com and an updated ordering document will be provided to you. Page 5 of 8 Service Contract Number: 1844903 RL_v051910 GENERALTERMS "You" and "your" refers to the Customer provided above. In the event that the Customer and the Quote To Account Name provided above are not the same, CITYOF PALO ALTO represents that Customer has authorized CITY OF PALO ALTO to execute this ordering document on Customer's behalf and to bind Customer to the terms described herein. CITY OF PALOALTO agrees that the ordered services shall be used solely by the Customer and shall advise Customer of the terms of this ordering document as well as information and notices about technical support thatOracle provides to CITY OF PALO ALTO during the term of service. Customer agrees that even if theCustomer and the Bill To Account Name above are different, that: a) Customer has the ultimate responsibility for payments under this ordering document; and, b) any failure of CITY OF PALO ALTO tomake timely payment under this ordering document shall be deemed to be Customer's breach of this ordering document; and, c) in addition to any other remedies available to Oracle, it may terminateCustomer's support for such nonpayment of fees. The technical support services acquired under this ordering document are governed by the terms and conditions of the agreement that you executed for technical support from the vendor of the programs and/or hardware listed in the Service Details section above (i.e. Oracle, a vendor acquired by Oracle, oran authorized reseller of Oracle or of the acquired vendor). However, any use of the programs and/or hardware, which includes by definition the updates and other materials provided or made available byOracle under technical support, is subject to the rights granted for the programs and/or hardware set forth in the order in which the programs and/or hardware were acquired. Technical support is provided under Oracle's technical support policies in effect at the time the servicesare provided. The technical support policies are subject to change at Oracle's discretion; however, Oracle will not materially reduce the level of services provided for supported programs and/or hardware during the period for which fees for technical support have been paid. You should review the technicalsupport policies prior to entering into this ordering document. The current version of the technical support policies may be accessed at http://www.oracle.com/us/support/policies/index.html. Customers who allowtechnical support to lapse may be subject to Oracle's reinstatement policy in effect at the time of reinstatement. Page 6 of 8 Service Contract Number: 1844903 RL_v051910 OrderProcessingDetails Your order is subject to Oracle's acceptance. An order consists of the following: (i) this orderingdocument, which incorporates by reference the agreement that you executed for technical support from the vendor of the programs and/or hardware listed in the Service Details section above (i.e. Oracle, avendor acquired by Oracle, or an authorized reseller of Oracle or of the acquired vendor), and (ii) a formof payment acceptable to Oracle. Oracle normally accepts orders after receipt of a purchase order, check or credit card issued in accordance with the Purchase Order, Check, Credit Card Confirmation sectionbelow. If Oracle accepts your order, the service start date is the effective date of such order and also serves as the commencement date of the technical support services. Please note that if the pre-tax value of this ordering document is USD $2,000 or less, the technicalsupport services on this ordering document must be paid either by credit card or electronic upload of a PO to the Online site. Once ordered, technical support for the support period defined above is non-cancelable and the related fees are non-refundable. An invoice will only be issued upon receipt of a form of payment acceptable to Oracle. Regardless of theform of payment, Oracle's invoice includes applicable sales tax, GST, or VAT (collectively referred to as " tax"). If CITY OF PALO ALTO is a tax exempt organization, a copy of CITY OF PALO ALTO's taxexemption certificate must be submitted with CITY OF PALO ALTO's purchase order, check, credit cardor other acceptable form of payment. PURCHASE ORDER,CHECK,CREDIT CARD CONFIRMATION PurchaseOrderIf the technical support services on this ordering document will be ordered and paid under a purchaseorder, the purchase order must include the following information: -Service Contract #: 1844903 -Term of Service: 17-Mar-13 to 16-Mar-14 -Final Total: USD 109,394.06 (excluding applicable tax) -Local Tax, if applicable In issuing a purchase order, CITY OF PALO ALTO agrees that the terms of this ordering document and the terms of the agreement described above supersede the terms in the purchase order or any othernon-Oracle document, and no terms included in any such purchase order or other non-Oracle document shall apply to the technical support services ordered. Please e-mail or fax the purchase order to Oracle per the Remittance Details provided below. Check If the technical support services on this ordering document will be ordered and paid by check, the checkmust include the following information: -Service Contract #: 1844903 -Term of Service: 17-Mar-13 to 16-Mar-14 -Final Total: USD 109,394.06 (excluding applicable tax) -Local Tax, if applicable Page 7 of 8 Service Contract Number: 1844903 RL_v051910 In issuing a check, CITY OF PALO ALTO agrees that only the terms of this ordering document and theterms of the agreement described above shall apply to the technical support services ordered. No terms attached or submitted with the check shall apply. Please mail check payments per the Remittance Details provided below. CreditCardConfirmationIf the technical support services on this ordering document will be ordered and paid under a credit card, please complete the section below and return it to Oracle per the Remittance Details provided below.Please note that Oracle is unable to process credit card transactions of USD100,000 or greater. -Service Contract #: 1844903 -Term of Service: 17-Mar-13 to 16-Mar-14 -Final Total:USD 109,394.06 (excluding applicable tax) __________________________________Credit Card Number __________________________________ Expiration Date __________________________________ Billing Address (associated with Credit Card) __________________________________City, State, and Zip (associated with Credit Card) __________________________________Authorized Signature __________________________________ Name The credit card must be valid for the entire Term of Service above. In issuing this credit cardconfirmation, CITY OF PALO ALTO agrees that only the terms of this ordering document and the terms of the agreement described above shall apply to the technical support services ordered. No terms attachedor submitted with the credit card confirmation shall apply. REMITTANCEDETAILS Purchase orders or credit card details for the technical support services ordered hereto should be sent to: Attn:Ann TranOracle Support Services Fax:408.556.4833E-mail: ann.tran@oracle.com Page 8 of 8 Service Contract Number: 1844903 RL_v051910 Checks for the technical support services ordered hereto should be sent to: AK,AZ,CA,HI,ID,NV,OR,UT,WA: Oracle America, IncPO Box 44471 San Francisco, CA 94144-4471 AllOtherStates: Oracle America, IncPO Box 203448 Dallas, TX 75320-3448