ADMINISTRATIVE REPORT
MEETING DATE: June 24, 2026 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: June 10, 2026
SUBJECT: Amendment No. 3 to Agreement 2022-155 with Highstreet IT Solution, LLC (increase compensation, revised not to exceed $5,649,950) for Project Scope Adjustments Necessary for Completion of Human Capital Management Software System
RECOMMENDATION:
Staff recommend approval of the amendment.
BACKGROUND:
On August 17, 2022, the City of Bakersfield entered into a Master Services Agreement, (Agreement 2022- 155) with Highstreet IT Solutions, LLC (“Highstreet”), to implement a new Enterprise Resource Planning (ERP), Human Capital Management (HCM), and Enterpri se Performance Management (EPM) software system through Oracle Cloud.
The City and Highstreet have determined it is necessary to amend the change of scope to include enablement and testing of the new User Interface (UI) “Redwood” for HCM. This updated UI for the software is required to maintain ongoing support by Oracle for quarterly patches and system issues. In addition, scope has been added to accommodate review of the current HCM configuration to determine where redesigns or adjustments of the current HCM configuration must be done. When such actions are necessary, Highstreet will perform these actions. Recently acquired by Highstreet, implementation services will be primarily performed by Graviton Consulting Services who specialize in public sector Oracle Cloud software implementations.
Exhibit C outlines the changes in scope and revised timeline for implementation. These activities materially impact on the project schedule and overall scope. As a result of the expanded effort, the project’s go-live date must be revised to April 2027 to be followed with three months of additional post- go-live support.
FISCAL IMPACT:
The services for the amended contract in the amount of $900,000 are included in the capital project budget originally established for the implementation of the Enterprise System.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
1. Highstreet LLC Amended Agreement
2. Exhibit C – Highstreet Change Order