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CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: NOVEMBER 7, 2023
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: EXTENSION OF SYSTEMS INTEGRATION SOFTWARE
MAINTENANCE SERVICES UNDER EXISTING SOFTWARE
LICENSE AND SERVICES AGREEMENT
ATTACHMENT (Y/N): YES ITEM # 09
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Approve an Order Form to the existing Software License and Services Agreement (Agreement) with Cloud Software Group, Inc., formerly named TIBCO Software Inc., to purchase three years of software maintenance services at a flat cost of $1,624,529 and an option to purchase an additional one-year extension at a flat cost of $624,619; and
2) Authorize the Public Utilities General Manager or designees, on behalf of Anaheim, to (a) execute and deliver the Order Form, any supporting documents, and a subsequent order form to purchase the one-year optional extension on an as-needed basis and (b) take such actions as are necessary or advisable to implement, fund, and administer the Agreement and Order Form.
DISCUSSION:
At its meeting on October 25, 2023, the Public Utilities Board (PUB) recommended that the City Council approve the Order Form with Cloud Software Group, Inc.
In 2010, after a competitive procurement process, City Council approved the Agreement and an order form to purchase licenses and associated maintenance for a systems integration software known as an Enterprise Service Bus (ESB). Anaheim Public Utilities (APU) utilizes the ESB as a middleware solution that allows data exchange and communication between various software systems to securely transfer customer data for billing, customer payment, account management, establishing utility service, and related operations. The Agreement was amended in 2018 and 2021 to purchase licenses and update annual maintenance terms. The proposed Order Form to the Agreement (Attachment 1) to extend the term of maintenance is necessary for continuity of utility services until such time that a new solicitation is warranted.
Extension of Systems Integration Software Maintenance Services Under Existing Software License and Services Agreement November 7, 2023
In late 2022, TIBCO Software Inc. changed its legal name to Cloud Software Group, Inc. (CSG) and several months later gave Anaheim notice, as allowed under the Agreement, that it was ending the annual maintenance renewal under the terms of the current order form.
After extended negotiations, CSG agreed to execute the proposed Order Form pursuant to the existing Agreement to provide three years of maintenance at a flat cost of $1,624,529 and an option to purchase an additional one-year extension at a flat cost of $624,619.
Continued maintenance is necessary to receive technical support and critical system and security updates, the lack of which could compromise the stability and reliability of business processes that are reliant on the software. APU has evaluated various options, including issuing a new solicitation; however, upgrades to other APU software systems that are already underway would make the integration of a new platform disruptive and costly.
As such, APU recommends extending the maintenance term with the associated service fees.
IMPACT ON BUDGET:
Sufficient funds are budgeted in APU’s Fiscal Year 2023/24 restricted Utility Fund budget, and future years are subject to City Council’s approval of budget appropriations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachments:
1. Cloud Software Group Order Form
2. Existing TIBCO Software License and Services Agreement a. Software License and Services Agreement dated May 18, 2010 b. First Amendment dated October 9, 2018
c. Second Amendment dated October 14, 2021
d. Order Form dated May 18, 2010
e. Order Form dated October 23, 2011
f. Order Form dated October 17, 2018
g. Order Form dated October 17, 2021