Finance & Management Committee
May 27, 2025
AGENDA REPORT
TO: Jestin D. Johnson FROM: Tony Batalla
City Administrator Director, Information
Technology Department
SUBJECT: ITD Enterprise Systems DATE: March 14, 2024
City Administrator Approval Date:
RECOMMENDATION
RESOLUTION AUTHORIZING THE CITY ADMINISTRATOR TO: (1) ENTER INTO
RENEWAL AGREEMENTS FOR ON-GOING CITYWIDE INFORMATION
TECHNOLOGY OPERATIONS AND MAINTENANCE AGREEMENTS; (2)
HARDWARE, SOFTWARE, DATA, STORAGE, PROFESSIONAL SERVICES AND
MAINTENANCE AGREEMENTS TO UPGRADE AND ENHANCE EXISTING
SYSTEMS, INCLUDING, BUT NOT LIMITED TO ORACLE, MICROSOFT,
GEOGRAPHIC INFORMATION SYSTEMS, PERMITTING SYSTEMS AND PUBLIC SAFETY SYSTEMS AS SET FORTH IN TABLE 1 ATTACHED HERETO; UP TO THE NOT-TO-EXCEED AMOUNT OF $20 MILLION PER YEAR IN FISCAL YEARS (FY) 2025 THROUGH 2027 FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $40 MILLION
FROM THE ADOPTED INFORMATION TECHNOLOGY DEPARTMENT BIENNIAL
BUDGET, WHICH INCLUDES MULTI-YEAR AGREEMENTS ENTERED OR RENEWED DURING FY 2025 THROUGH 2027 WITH TERMS THAT EXTEND BEYOND THE TWO-YEAR PERIOD; AND: (A) WAIVING THE MULTI-STEP
SOLICITATION PROCESS AND (B), TO THE EXTENT NECESSARY, WAIVING THE
LOCAL/SMALL LOCAL BUSINESS ENTERPRISE PROGRAM REQUIREMENTS FOR
THESE AGREEMENTS
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt the proposed Resolution authorizing the City Administrator to enter into information technology renewal agreements for on-going operations and maintenance agreements and all maintenance agreements to upgrade and enhance existing systems over a period beginning July 1, 2025, through June 30, 2027.
BACKGROUND / LEGISLATIVE HISTORY
In July 2023, the City Council adopted Resolution # 89832 C.M.S allowing the Information Technology Department (ITD) to renew all on-going information technology operations and Jestin Johnson (May 15, 2025 15:51 PDT)
May 15, 2025
Jestin D. Johnson, City Administrator
Subject: ITD Enterprise Systems
Date: March 14, 2025 Page 2
Finance & Management Committee
May 27, 2025
maintenance agreements, including hardware, software, professional services and maintenance to upgrade and enhance enterprise technology systems including Oracle, Microsoft and public safety systems. Resolution # 89832 C.M.S. sunset Resolution # 84579 C.M.S.
ANALYSIS AND POLICY ALTERNATIVES
ITD maintains several enterprise IT systems, which impact all facets of the City’s business, directly advancing the Citywide priorities of vibrant, sustainable infrastructure and responsive, trustworthy government. In addition to internal operations, these systems provide web interfaces that City residents use to access online City services. These systems include, but are not limited to, Oracle (enterprise financial systems), Microsoft (enterprise computing, including data services for the City), Motorola (public safety systems), Accela (permitting services), ESRI Geographic Information Systems (GIS) mapping programs, Granicus (legislative and website systems), Outsystems (application development), and HPE, Cisco, Palo Alto Networks and their various resellers for data center infrastructure and services. These systems also include the City’s cybersecurity operations, maintenance agreements, and related services.
It is critical that these systems are maintained and renewed by the given contractual deadlines each year. When not maintained or renewed properly, vendors can shut off access, and the downtime can lead to outages and lapses in service that have critical impacts to City business.
Failing to maintain systems can also lead to long-term damage and inoperability. During the biennial fiscal period 2023-2025, Resolution #89832 C.M.S. was used to acquire approximately $8 million per year in enterprise systems licenses, tools, and services, all within the appropriated ITD biennial budget.
The proposed resolution does not provide for the implementation of new systems, and only applies to maintaining existing information systems and infrastructure. The proposed resolution allows the Information Technology Department (ITD) to seek timely procurement of established annual renewal and maintenance agreements of existing enterprise systems and infrastructure in order to maintain business continuity and minimize service disruptions.
If Council does not adopt this policy, each renewal of the City’s existing systems will require a separate resolution, resulting in significant administrative overhead and, if contractual renewal dates are missed, systems and access could be shut off or disconnected, leading to negative Citywide impacts.
Waiver Justification
Oakland Municipal Code Section 2.04.042 B requires the City Administrator to conduct a multi- step proposal solicitation process before selecting a vendor. However, Oakland Municipal Code Section 2.04.042 D allows the Council to waive the proposal solicitation requirements upon a finding by the Council that it is in the best interest of the City to do so.
Staff recommends that the Council waive this requirement for renewing ongoing Information Technology services. This proposed Resolution would pertain only to existing enterprise IT Jestin D. Johnson, City Administrator
Subject: ITD Enterprise Systems
Date: March 14, 2025 Page 3
Finance & Management Committee
May 27, 2025
platforms and solutions that the City is committed to using and maintaining, and most of the City’s enterprise systems are manufactured by major, multinational technology companies with proprietary products, such as Microsoft, Motorola, Oracle, ESRI, Adobe, and others. As such, many systems can only be procured and renewed directly from these vendors, and there are limited providers that can be utilized in contracting, and all maintenance and renewals are with a fixed supplier. In addition, many systems were originally purchased and implemented through a competitive process and are now being renewed annually for ongoing usage. While the City may at some point decide, if possible, to replace one or more enterprise systems through a competitive bidding process, this would need to be planned in advance with enough time to ensure the best possible outcomes for the City and its residents. Therefore, for the purposes of streamlining the renewal and support of existing enterprise systems used by the City and budgeted in the Information Technology Department’s operating and maintenance budgets in order to minimize potential service disruptions and to provide business continuity, it is in the City’s best interests to waive the multi-step competitive bidding and Local and Small Local Business Enterprise (L/SLBE) requirements.
Staff has conducted an analysis of vendors that qualify for L/SLBE requirements and identified four currently providing technology equipment, supplies, and services under the existing IT Enterprise Resolution: Blaisdells; City Print and Mail; Digital Realty Trust; and Neuvys Technology. Many systems are sold directly by national and international technology vendors such as Motorola, Microsoft, ESRI, Oracle, and others, and do not meet L/SLBE requirements.
ITD will continue to work with the Department of Workplace and Employment Standards (DWES) to identify and onboard, to the fullest extent possible, qualified L/SLBE vendors for additional IT services and solutions.
FISCAL IMPACT
This proposed Resolution will allow for the renewal of cloud licenses, subscriptions, maintenance, and hardware and software support agreements in ITD’s adopted FY 2025-2027 biennial budget as part of operating and maintenance (“O&M”) expenses. As such, there is no new additional cost to the City, and expenditures under this Resolution shall not exceed $20 million per year across all ITD fund sources.
Attachment A provides a list of IT expenditures, accounts, and amounts planned for FY 2025- 2027. This comprehensive list was developed as part of the biennial budget planning process, however it is not exhaustive in that the amounts and funding codes are estimates and may vary and, further, given the complex nature of information technology operations and services, certain circumstances such as emergencies and other urgent situations may necessitate usage of this Resolution for services and vendors not listed on an as needed basis.
COORDINATION
This report and legislation have been reviewed by the Office of the City Attorney, the Controller’s Bureau in the Finance Department, the Department of Workplace Employment Standards, and the City Administrator’s Office.
Jestin D. Johnson, City Administrator
Subject: ITD Enterprise Systems
Date: March 14, 2025 Page 4
Finance & Management Committee
May 27, 2025
PAST PERFORMANCE, EVALUATION, AND FOLLOW-UP
The proposed Resolution focuses on existing enterprise IT operations and systems that have been selected by the City for long-term use. As such, these systems have largely been deemed satisfactory in performance and necessary to support the City’s ongoing business needs. ITD, in collaboration with City Departments, continually evaluates enterprise systems, ranging from system modernization and enhancements to cybersecurity considerations to the need for upgrades/replacements.
SUSTAINABLE OPPORTUNITIES
Economic: Ensuring that robust and cost-effective enterprise systems and platforms are available to City staff for daily use and residents as their business with the City touches related applications. Maintaining existing systems appropriately is the most efficient solution for the City.
Environmental: Enterprise solutions focus on paperless transactions that reduce the need for traditional printing and copying. Safe and effective data storage and cybersecurity solutions secure City data and give staff confidence in using these electronic repositories.
Race & Equity: Access to platforms and services that are user-friendly and available through Oak WiFi and other open networks provides residents with multiple ways to conduct business with the City.
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Adopt A Resolution Authorizing The City Administrator (1) to enter into renewal agreements for on-going information technology operation and maintenance agreements; and (2) to enter into hardware, software, data, storage, professional services and maintenance agreements to upgrade and enhance existing systems, including, but not limited to Oracle, Microsoft, Geographic Information Systems, Permitting Systems and Public Safety Systems; waiving the multi-step solicitation process and, to the extent necessary, the local/small local business enterprise program requirements for information technology agreements for fiscal years (FY) 2025 through 2027, including multi-year agreements entered or renewed during FY 2025 through 2027 with terms that extend beyond the two-year period; and sunsetting City Resolution 89832 C.M.S. (2023).
For questions regarding this report, please contact Tony Batalla, Information Technology Director, at 510-238-3319.
Respectfully submitted,
Tony Batalla
Director, Information Technology Department
Jestin D. Johnson, City Administrator
Subject: ITD Enterprise Systems
Date: March 14, 2025 Page 5
Finance & Management Committee
May 27, 2025
Prepared by:
Michelle NewRingeisen
Strategy and Business Operations
Information Technology Department