COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 051392

 

Authorizing the Chief Information Officer to enter into an agreement with Oracle USA Corporation to consolidate the Citys Oracle databases under one agreement based upon the State of Missouri Contract No. C700313001 in the amount of $2,405,625.00 provided from $734,050.00 in previously appropriated funds and ultimately from $1,671,575.00 from proceeds of the Master Lease Agreement; estimating revenue of $1,671,575.00 from the Equipment Lease Capital Acquisition Fund and appropriating from the Unappropriated Fund Balance $1,671,575.00 to the Oracle ELA account; authorizing the Director of Finance to declare the Citys intent to reimburse itself for certain expenditures; and recognizing an emergency.

WHEREAS, the City has multiple Oracle database agreements; and

WHEREAS, consolidation of the multiple agreements into a single agreement may save the City up to $2.9 million over a ten-year period; and

WHEREAS, savings will result from cost avoidance for Oracle database licenses, purchases, maintenance, and administrative overhead to manage multiple agreements; and

WHEREAS, the cost of annual maintenance will be $611,978.00 per year through fiscal year 2010-2011, and is limited to a maximum increase of 3% annually through fiscal year 2015-2016 for a maximum charge of $640,337.00 in the final year; and

WHEREAS, $1,671,575.00 will be financed through the Citys master lease program and the remaining $734,050.00 will be paid from existing funds; and

WHEREAS, funds for the annual payments will be requested through the Citys annual budget for the Information Technology Department; and

WHEREAS, because this ordinance appropriates funds it may be recognized as an emergency pursuant to the terms of 15 of the Charter of Kansas City; NOW, THEREFORE

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the Chief Information Officer is authorized to enter into an agreement with Oracle USA Corporation based upon the State of Missouri Contract No. C700313001 in the amount of $2,405,625.00 to consolidate the Citys Oracle database uses under one agreement, and to execute necessary documents for renewal of annual maintenance services for a total period of up to 10 years. A copy of the Ordering Document in substantial form is attached and incorporated as Exhibit A.

Section 2. That the revenue in the following account of Fund No. 3230, the Equipment Lease Capital Acquisition Fund, is hereby estimated in the following amount:

AL-3230-120000-830000 Reimbursement from Bank or Lease Co. $1,671,575.00

Section 3. That the sum of $1,671,575.00 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 3230, the Equipment Lease Capital Acquisition Fund, to the following account:

AL-3230-183012-B Oracle ELA $1,671,575.00

Section 4. That funds for the initial payment of $2,405,625.00 shall be paid from funds appropriated to the following accounts:

 

AL-3230-183012-B Oracle ELA $1,671,575.00

AL-3230-187010-B GIS Upgrade 207,000.00

06-1000-189120-B Hardware/Software Maintenance 90,500.00

06-1000-183020-B Enterprise Resource Planning 268,350.00

06-2100-897797-B Roadway Physical Feature Management 82,000.00

06-7070-871985-E Software Licensing 3,200.00

06-8010-801110-B Water Information Technology 70,000.00

06-8300-621015-B Aviation Information Technology 13,000.00

TOTAL $2,405,625.00

Section 5. That the Council delegates to the Director of Finance the authority to declare the Citys intent to reimburse itself for certain expenditures made within 60 days prior to or on and after the date of this ordinance with respect to this project with the proceeds of the master lease payments, such declaration to constitute the Citys official intent under Treasury Regulation 1.150-2.

Section 6. That this ordinance appropriates money and is therefore recognized as an emergency within the meaning of 15(a)(3)(C) of the Charter of Kansas City.

 

_____________________________________________

I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

 

 

___________________________________

Wanda Gunter

Acting Director of Finance

Approved as to form and legality:

 

___________________________________

William Geary

Assistant City Attorney