REPORT TO COUNCIL
SUBJECT
Title
Action to Ratify Amendment One to the Oracle Public Sector Technical Support Services Agreement and Authorize the City Manager to Execute Technical Support Services Renewal Orders with Oracle America, Inc. for Software License Updates and Support of Systems Used by Silicon Valley Power
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s Electric Department, Silicon Valley Power (SVP), uses various enterprise software applications required to support the electric services provided to customers in Santa Clara. Many of these applications are supported by the Oracle Relational Database Management System (RDMS), ensuring efficient data management. These key applications supported by Oracle RDMS include:
• Geographic Information Systems (GIS): SVP uses GIS, including ArcGIS and ArcFM (Feeder Map) to geographically map and monitor electric networks and facilities.
• Advanced Metering Systems (AMI): This system is part of SVP’s Smart Meter program and is the foundation for storing power usage records of electric customers.
• Cascade: Used to store records associated with asset maintenance and inspection of electrical elements.
• Power Base: Used to program, test, and store data for distribution grid relay equipment.
• nMarket: Tracks millions of dollars in power purchased and sold, moved, or generated. It also generates accurate reports for financial settlements.
• SuperOS/Tropos: Stores network traffic data of outdoor Wi-Fi radios on the SVP network for monitoring and trouble shooting.
Database management is foundational to SVP’s operations, managing high volumes and a diverse range of information. The Oracle RDMS is scalable, robust and secure, making it ideal for the utility industry and compatible with many software platforms. By continuing annual technical services and support, SVP ensures that the database management solution evolves and improves to meet current and future requirements. This will enable SVP to maintain a reliable distribution grid and ensure prudent financial monitoring.
DISCUSSION
On January 14, 2019, the City Manager executed the Oracle Public Sector Technical Support Services Agreement (Agreement). This agreement allowed the City to place annual support orders for hardware and software for a five-year period. On May 12, 2020, the City Council authorized the City Manager to execute these annual support orders.
However, the May 2020 City Council approval did not include the authority to extend the term of the Agreement. To ensure there was no interruption with the Oracle RDMS that supports SVP’s critical applications, the City Manager signed Amendment One to the Agreement to extend its term through January 13, 2029. Staff requests that the City Council ratify the City Manager’s execution of Amendment One to the Agreement.
Table 1
The following table outlines amounts paid to Oracle under the Agreement.
|
Fiscal Year |
Amount Paid |
|
2018/19 |
$104,787.03 |
|
2019/20 |
$218,137.31 |
|
2020/21 |
$226,671.09 |
|
2021/22 |
$253,139.28 |
|
2022/23 |
$270,884.00 |
|
2023/24 |
$221,749.24 |
|
2024/25 |
$317,466.86 |
|
TOTAL |
$1,612,834.81 |
In addition to the amount in Table 1, staff further requests that the City Manager is authorized to execute Technical Support Orders totaling up to $2,387,165.19 for a total aggregate maximum authorization of $4,000,000 for the period of January 14, 2019, through January 13, 2029, and to negotiate and execute future amendments provided that those amendments do not increase the maximum authorization or extend the term. The Technical Support Services Orders can be renewed annually or terminated if the needs of SVP or the City change. This maximum compensation accounts for regular price increases as well as for anticipated future requirements of additional applications that will be supported by Oracle RDMS.
This recommendation to extend the term of the Agreement is consistent with the City Code Section 2.105.280(b)(2), which states that a competitive procurement is not necessary when a product or service is “required to ensure operation or function to match other products with respect to the repair, expansion or completion of a system, existing structure or program currently in use by the City, including, but not limited to, utility and technology purchases required to achieve interoperability with existing systems or programs.”
ENVIRONMENTAL REVIEW
The actions being considered do not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378 (b)(5) of Title 14 of the California Code of Regulations in that Oracle’s database management system facilitates SVP’s provision of electrical services; therefore, the proposed actions are administrative activities that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
The cost of this service for FY 2024/25 is estimated not to exceed $350,000. Sufficient funds are available in the Electric Department Utility Operations Division SVP System Support operating budget for FY2024/25. Funds required for this agreement in future years will be subject to future appropriation of funds. Staff has recommended authorization up to $4,000,000 over ten years (including amounts paid for previous periods) to allow for additional database needs as SVP is expanding use of electronic programs such as outage management and rebate management.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Ratify the City Manager execution of Amendment One to the Oracle Public Sector Technical Support Services Agreement (Agreement) with Oracle America, Inc. to extend the term from five years to ten years;
2. Authorize the City Manager or designee to execute Technical Support Services Renewal Orders (Orders) with Oracle America, Inc. with a maximum authorization of $4,000,000 funded by the Electric Utility Fund for the ten-year period ending January 13, 2029, for software licenses, updates, and support, subject to the appropriation of funds and approval as to form by the City Attorney; and
3. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and Orders including negotiating and executing amendments that do not increase the total maximum compensation or extend the term, subject to the approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Oracle Public Sector Technical Support Services Agreement
2. Amendment One to the Oracle Public Sector Technical Support Services Agreement