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CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: AUGUST 13, 2024
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: INFORMATION SYSTEM AGREEMENTS RELATED TO THE
WORK AND ASSET MANAGEMENT SYSTEM UPGRADE
ATTACHMENT (Y/N): YES ITEM # 11
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Approve the Cloud Services Agreement (CSA) between Oracle America, Inc. (Oracle) and the City of Anaheim (City) for a term of ten (10) years, including subscription and support services (engaged through ordering documents subject to the Cloud Services Agreement) for Work and Asset Cloud Service (WACS) and Oracle Field Service (OFS), in an amount not to exceed $475,000 annually, for the first five (5) years, an annual increase not to exceed 4% for each of the subsequent five (5) years, and a 5% contingency;
2) Approve a Professional Services Agreement between the City of Anaheim and RCC Global, LLC, for WACS and OFS implementation services for an initial term of three (3) years with an option to extend one time for two (2) years, and for an average of $1,690,600 annually for the entire term (including any extension), and a 15% contingency;
3) Approve the First Amendment to Agreement with SDI Presence, LLC to extend the contract term for an additional three (3) years with an option to further extend one time for (2) years, so that SDI Presence can provide as-needed program management and technical support services for the WACS and OFS upgrade project, for an average amount of $400,000 annually for the term (including any extension) as extended by this First Amendment, and a 10% contingency; 4) Authorize and direct the Public Utilities General Manager or designee, on behalf of the City, to execute the Cloud Services Agreement, Professional Services Agreements, ordering documents, and related documents, and take such actions as are necessary or advisable to implement and administer the Cloud Services Agreement with Oracle, and Professional Services Agreements with RCC Global, LLC and SDI Presence, LLC; and
5) Authorize de minimis changes to the Cloud Services Agreement, Professional Services Agreements, and related documents that do not substantially change the terms and conditions of the Cloud Services Agreement or Professional Services Agreements as determined by the City Attorney’s Office.
Information System Agreements Related to the Work and Asset Management System Upgrade August 13, 2024
DISCUSSION:
At its meeting on July 24, 2024, the Public Utilities Board recommended that the City Council approve the Information System Agreements related to the Work and Asset Management System (WAMS) Upgrade.
Anaheim Public Utilities (APU) currently uses WAMS to manage its day-to-day operations, procure materials, manage inventory, issue work orders for construction and maintenance activities, track labor and material costs, and maintain financial records for regulatory compliance. The technology provider of WAMS is Oracle, who no longer provides support for the on-premise system that has been operational since 2004 and is at the end of its life.
On October 22, 2019, City Council approved a professional consulting agreement with SDI Presence, LLC (SDI), to perform a comprehensive needs assessment for a new work and asset management system. SDI completed the needs assessment in June 2022 after several pandemic related delays. The needs assessment recommends continuing to utilize an Oracle platform through a phased implementation to reduce costs and maintain continuity rather than completely changing to a new system. Although other enterprise management systems are available, there would be considerable data migration, integration with other technology systems, and business process changes required. The recommendation is therefore to upgrade to the Oracle Utilities Work and Asset Cloud Service (WACS), and seek implementation services for a WACS upgrade that includes integration to the upgraded platform, quality assurance, training, testing, and project management.
In conducting a review of the WACS platform, SDI’s assessment identified the following benefits and enhancements:
Moving to a cloud-based system no longer requires hardware storage and maintenance currently required of the on-premises system; Improved security features, such as data encryption, access controls, system monitoring, and regular review of established security measures; Service continuity and disaster recovery capabilities to improve resilience, minimizing downtime, with faster recovery times reducing cost of recovery efforts;
New mobile solution, Oracle Field Services (OFS), will allow field employees to receive updates and new service requests remotely on their mobile devices; and Lower overall cost and time to deploy based on industry reviews of similar conversions and upgrades, in which the estimated cost is 20% to 40% lower than changing to a completely new system.
The Cloud Service Agreement with Oracle is for a 10-year term to host the system and allow access to APU staff at a cost of $475,000 annually for the first five (5) years, an annual increase not to exceed 4% for each of the subsequent five (5) years, with a 5% contingency.
Information System Agreements Related to the Work and Asset Management System Upgrade August 13, 2024
Implementation Services
The services of a professional technology consultant are required to manage the upgrade to WACS, which will be phased over three years to minimize disruptions to daily operations. In December 2023, a Request for Proposal (RFP) was issued and five proposals were received. Pursuant to Council Policy 4.1 – Selection of Professional Consultants, the proposals were evaluated based on the consulting firms’ ability to perform the services and tasks specified in the RFP, qualifications of firm and key personnel, appropriateness of approach and timeline, reasonableness of costs, and demonstrated record of success on similar projects. The firms were ranked as follows:
Firm Rank
Red Clay Consulting, Inc. (RCC Global, LLC) 1
Abjayon, Inc. 2
Accenture PLC 3
Mythics LLC 4
Ernst & Young Global Limited 5
RCC Global, LLC is the highest rated firm based on the selection criteria and their demonstrated focus on Oracle energy and water solutions spanning the entire range of implementation and upgrade services. They have performed similar services for Pasadena Water and Power and Madison Gas and Electric. The term of the implementation services agreement is for three years with an optional two-year extension, at an average cost of $1,690,600 annually, with a 15% contingency.
Program Management and Technical Support Services
In addition to the implementation services firm, APU recommends a First Amendment to the current agreement with SDI to provide third-party oversight, program management, and technical support. SDI was selected through a competitive process in 2019 and has proven to be a much-needed resource due to their industry knowledge and expertise with enterprise asset management systems. Their scope of services is to support APU staff in overseeing the upgrade to WACS. The First Amendment is up to $400,000 annually for three years in parallel with the implementation agreement with an optional two-year extension and includes a 10% contingency.
The proposed agreements support the City’s Strategic Plan, Goal D – Foster a High- Performing Organization, Strategy 7 – Assess current technology to identify gaps and needs within City operations to better serve the community.
IMPACT ON BUDGET:
The estimated cost of all three agreements is $2,565,600 for the first year, and sufficient funds are included in APU’s Fiscal Year 2024/25 restricted budget; future years will be subject to City Council’s approval of budget appropriations.
Information System Agreements Related to the Work and Asset Management System Upgrade August 13, 2024
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachments:
1. Cloud Services Agreement with Oracle America, Inc.
2. Professional Services Agreement with RCC Global, LLC
3. First Amendment to Agreement with SDI Presence LLC which includes:
Exhibit B-1 – Hourly Rates Schedule
4. Exhibit – Original Agreement with SDI Presence LLC
5. SDI Work and Asset Management System Needs Assessment Report