DATE: July 16, 2024
TO: Honorable Mayor and City Council
FROM: Henry Chen, Interim Administrative Services Director
SUBJECT: PURCHASE ORDERS FOR ANNUAL SOFTWARE HOSTING AND
MAINTENANCE WITH ORACLE AMERICA FOR NETSUITE FOR
GOVERNMENT AND CAN/AM TECHNOLOGIES FOR TELLER
CASHIERING IN AN AMOUNT NOT TO EXCEED $161,500
CEQA: Not a Project
Recommendation: Approve
SUMMARY
The City is in the process of implementing NetSuite for Government (“NetSuite”) from Oracle America and Teller cashiering system (“Teller”) from Can/Am Technologies. As part of the license with both companies, the City is obligated to pay for annual hosting and maintenance charges. It is recommended that the City Council approve purchase orders with Oracle America for $105,000, and with Can/Am Technologies for $56,500, for a total of $161,500 for annual software hosting and maintenance.
DISCUSSION
The City is implementing NetSuite and Teller, which will be deployed during Fiscal Year 2024-25. These two software packages will replace the existing FinancePlus System that the City has used since 1999. The annual software and hosting costs are part of the Enterprise Resource Planning (“ERP”) Financial Software, which was approved for replacement in the Fiscal Year 2022-23 Equipment Replacement Fund. NetSuite and Teller will support most of the City’s Finance, Purchasing, and Human Resources operations, including financial reporting, payroll, accounts payable, general ledger, cashiering, accounts receivable, and budget preparation.
As part of the software license, both companies require the City to pay an annual software hosting and maintenance fee. Software hosting and maintenance fees pay for cloud hosting of the software, ongoing product development of new features, security patches, regulatory updates such as annual payroll tax tables and other program improvements.
It also includes phone and web-based support when staff need help with troubleshooting
Purchase Order with Oracle America and Can/Am Technologies for Annual Software Hosting and Maintenance
July 16, 2024
or guidance on implementing new regulatory updates within the system. The annual cost from July 2024 to June 2025 is approximately $105,000 for Oracle NetSuite and $56,500 for Teller, for a total annual cost of $161,500. It is recommended that the City issue purchase orders to Oracle America and Can/Am Technologies for annual hosting and maintenance charges.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment.
FISCAL IMPACT
The annual cost from July 2024 to June 2025 is approximately $105,000 for Oracle NetSuite and $56,500 for Teller, for a total annual cost of $161,500. Sufficient funds for the proposed annual hosting and maintenance costs are budgeted in the FY 2024-25 Operating Budget.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and approve Purchase Orders for annual software hosting and maintenance with Oracle America for NetSuite for Government and CAN/AM Technologies for Teller cashiering in an amount not to exceed $161,500.