Agenda Item No: 1.j
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: April 1, 2025
Submitted by: Jennifer Lampman
From: Finance
Subject:
Amendment to Professional Services Master Agreement with Oracle America Inc for Oracle Netsuite for Government
Financial Impact:
Fiscal Impact:
Expense: FY 2024-25 $ 69,000 Annual Costs
$169,154 One-time Implementation Cost
$238,754 Total Project Cost
Budgeted: FY 2024-25 $300,000
Summary:
The City is currently utilizing Finance Enterprise 20.2, a CentralSquare, Inc. product, as its financial enterprise resource planning (ERP) system. The City has been using various versions of this product since 2006, upgrading to new versions when necessary, with the last upgrade completed in Fiscal Year 2021-22. Staff determined that the CentralSquare ERP system no longer met the needs of the City, cost significantly more than similar software platforms, and would need to be upgraded in December 2024 as CentralSquare would no longer support our current version.
The City Council approved an agreement with Oracle Netsuite for Government (Netsuite) on June 18, 2024, and Oracle and City staff began implementing the new system shortly thereafter. During the testing phase of implementation, it was discovered that to maximize the efficiencies of the system including digital workflows and paperless accounts payable and purchasing processes, the existing self service user licenses would need to be upgraded to full general user licenses. The increased cost over the five year period is $10,290 ($2,058 per year), with no changes to the implementation cost.
Recommendation:
Recommended Action: It is recommended that the City Council take the following actions:
1. Approve the updated ordering document for the time remaining on the original five (5) year Professional Services Master Agreement with Oracle America, Inc. for NetSuite for Government for additional general user licenses. This action will add an additional $10,290 over the five (5) year agreement, or $2,058 per year; and
2. Authorize the City Administrator and/or his designee to execute all necessary 1 documents, in a form approved by the City Attorney.
Strategic Plan Statement:
This is consistent with the City Council approved 5-Year Strategic Goal 1 to ensure Long- Term Fiscal Sustainability, no specific objective.
Discussion:
On June 18, 2024, the City entered into a professional services agreement with Netsuite for Government, an Oracle Enterprise Resource Planning (ERP) system designed for government agencies, and staff began working with the Oracle implementation team shortly thereafter. The City is anticipating “going live” on the new system prior to the end of the current fiscal year.
During the testing phase of implementation, it was determined that the original self-service user licenses the City procured would need to be upgraded to a full general user licenses in order to maximize efficiencies desired in the new system such as:
1. Paperless routing and workflow of invoices, purchase requisitions and purchase orders.
2. Cloud-based system accessibility from any computer without the need to remote into a dedicated server which is what the City currently utilizes.
3. Enhanced ability to manage project accounting over several fiscal years.
4. Digital signatures/approvals with complete audit trail for all transactions.
5. Ability to upload backup documentation including multiple quotes, invoice copies, staff reports, etc. into the system for historical record.
6. Seamless integration with the City’s new electronic timekeeping and payroll system, UKG.
Fiscal Impact Summary:
Fiscal Impact:
Our current contract with CentralSquare has an annual increase of five percent (5%), and they have communicated the need for the City to upgrade as they stopped supporting our version last December. Oracle offered the City a static five (5) year price commitment for NetSuite for Government, and the original cost savings was estimated at $72,417 last June.
The upgrade in user licenses is anticipated to cost an additional $10,290 over the five (5) year term, reducing the total cost savings to $62,127 when compared to maintaining the current finance system. Funding for implementation of the new system is included in the Adopted FY 2024/25 Capital Improvement Program (CIP) budget, and annual software costs will be included in the Proposed FY2025/26 Budget.
Attachments
City of Placentia_CPQ-3839680_POD_24MAR2025- Updated Licenses.pdf 2 ORDERING DOCUMENT
Oracle America, Inc.
500 Oracle Parkway
Redwood Shores, CA
94065
Name
City of Placentia
Contact
Jennifer Lampman
Address
401 E Chapman Ave
PLACENTIA CA
92870
Phone Number
Email Address
+1 (714) 993-8237
[email protected]
Renewal
Services Period: 51.32 months
Cloud Services Data Center
Region Quantity Term Unit Net Price Net Fee
B94583 - Oracle NetSuite for
Government Cloud Service, Standard
Edition - Hosted Environment
NORTH
AMERICA 1 51.32 mo 4,200.00 215,554.84
B108187 - Oracle NetSuite for
Government Cloud Service, Bill
Capture - Each
NORTH
AMERICA 1 51.32 mo 299.50 15,371.11
B94584 - Oracle NetSuite for
Government Cloud Service,
Additional General User - Hosted
Named User
NORTH
AMERICA 38 51.32 mo 24.50 47,781.32
B94587 - Oracle NetSuite for
Government Cloud Service,
Additional Planning and Budgeting
User - Hosted Named User
NORTH
AMERICA 2 51.32 mo 60.00 6,158.71
B94592 - Oracle NetSuite for
Government Cloud Service, Sandbox
Environment - Each
NORTH
AMERICA 1 51.32 mo 249.50 12,804.98
Subtotal 297,670.97
Fee Description Net Fee
Cloud Services Fees 297,670.97
Net Fees 297,670.97
Total Fees 297,670.97
CPQ-3839680 - 1 Issued by Oracle America, Inc.
24-MAR-2025
3 Midterm Subscription Change Details:
Current Subscription(s)
Cloud Services Quantity Start Date End Date Unit Net Price Order Number Subscription ID
B94583 - Oracle NetSuite for Government Cloud
Service, Standard Edition, Legacy - Hosted
Environment
1 23-07-2024 22-07-2029 4,200.00 41604598 30525327
B108187 - Oracle NetSuite for Government Cloud
Service, Bill Capture - Each 1 23-07-2024 22-07-2029 299.50 41604598 30525327 B94584 - Oracle NetSuite for Government Cloud
Service, Additional General User - Hosted Named
User
25 23-07-2024 22-07-2029 24.50 41604598 30525327
B94585 - Oracle NetSuite for Government Cloud
Service, Additional Self Service Users - 5 Hosted
Named Users
6 23-07-2024 22-07-2029 24.50 41604598 30525327
B94587 - Oracle NetSuite for Government Cloud
Service, Additional Planning and Budgeting User -
Hosted Named User
2 23-07-2024 22-07-2029 60.00 41604598 30525327
B94592 - Oracle NetSuite for Government Cloud
Service, Sandbox Environment - Each 1 23-07-2024 22-07-2029 249.50 41604598 30525327
Services to be Replaced & Superseded
Cloud Services Quantity Start Date End Date Unit Net Price Order Number Subscription ID
B94583 - Oracle NetSuite for Government Cloud
Service, Standard Edition, Legacy - Hosted
Environment
1 23-07-2024 To be replaced 4,200.00 41604598 30525327
B108187 - Oracle NetSuite for Government Cloud
Service, Bill Capture - Each 1 23-07-2024 To be replaced 299.50 41604598 30525327 B94584 - Oracle NetSuite for Government Cloud
Service, Additional General User - Hosted Named
User
25 23-07-2024 To be replaced 24.50 41604598 30525327
B94585 - Oracle NetSuite for Government Cloud
Service, Additional Self Service Users - 5 Hosted
Named Users
6 23-07-2024 To be replaced 24.50 41604598 30525327
B94587 - Oracle NetSuite for Government Cloud
Service, Additional Planning and Budgeting User -
Hosted Named User
2 23-07-2024 To be replaced 60.00 41604598 30525327
CPQ-3839680 - 1 Issued by Oracle America, Inc.
24-MAR-2025
4 Services to be Replaced & Superseded
B94592 - Oracle NetSuite for Government Cloud
Service, Sandbox Environment - Each 1 23-07-2024 To be replaced 249.50 41604598 30525327
Go Forward Subscription(s)
Cloud Services Quantity Start Date End Date Unit Net Price Order Number Subscription ID
B94583 - Oracle NetSuite for Government Cloud
Service, Standard Edition - Hosted Environment 1 Upon access 51 mo from start date 4,200.00 New 30525327
B108187 - Oracle NetSuite for Government Cloud
Service, Bill Capture - Each 1 Upon access 51 mo from
start date 299.50 New 30525327
B94584 - Oracle NetSuite for Government Cloud
Service, Additional General User - Hosted Named
User
38 Upon access 51 mo from
start date 24.50 New 30525327
B94587 - Oracle NetSuite for Government Cloud
Service, Additional Planning and Budgeting User -
Hosted Named User
2 Upon access 51 mo from
start date 60.00 New 30525327
B94592 - Oracle NetSuite for Government Cloud
Service, Sandbox Environment - Each 1 Upon access 51 mo from start date 249.50 New 30525327
CPQ-3839680 - 1 Issued by Oracle America, Inc.
24-MAR-2025
5 A. Terms of Your Order
1. Applicable Agreement:
a. US-GMA-1301562 (AR2487)_PA_City of Placentia
This ordering document incorporates by reference the NASPO ValuePoint Master Agreement US-GMA-1301562 (AR2487) by and between Oracle America, Inc. ("Oracle") and the State of Utah, as the lead state, and Oracle America, Inc. ("Oracle"), together with the Participating Addendum (US- GMA-1301562(AR2487)_PA_City of Placentia) and all amendments and addenda thereto by and between the City of Placentia, CA and Oracle.
2. Cloud Payment Terms:
a. Net 30 days from invoice date
3. Cloud Payment Frequency:
a. Quarterly in Arrears
4. Currency:
a. US Dollars
5. Offer Valid through:
a. 31-MAY-2025
6. Service Specifications
a. The Service Specifications applicable to the Cloud Services and the Consulting/Professional Services ordered may be accessed at http:// www.oracle.com/contracts .
7. Services Period
a. The Services Period for the Services commences on the date stated in this order. If no date is specified, then the "Cloud Services Start Date" for each Service will be the date that you are issued access that enables you to activate your Services, and the "Consulting/Professional Services Start Date" is the date that Oracle begins performing such services.
B. Additional Order Terms
1. Terms
The following terms, as used in this order or the Agreement and whether or not capitalized, shall have the same meaning as the applicable defined term:
"Agreement" and "Master Agreement"; "Customer", "Client" "Company" and "You"; "Program Documentation" and "Documentation"; "Ordering Document", "Services Order", "order" and "Order Form"; "Services Term" and "Services Period"; "Your Data", "Client Data", "Company Data" and "Your Content".
2. Midterm Subscription Change
You agree that this order terminates and supersedes the order between the parties, with footer reference CPQ-3375198-1, dated 28-JUN-2024, including all expansion orders to the order, and all amendments thereto (collectively, the "Previous Services Order"), under which You previously acquired Cloud Services (the "Previous Services"), and that, accordingly, You hereby terminate the Previous Services identified in the Previous Services Order.
You agree to pay any fees for Previous Services that have accrued prior to the Cloud Services Start Date of this order, including any fees for Previous Services that have accrued but which have not yet been invoiced due to a delayed billing schedule. The actual unpaid Cloud Services fee will be processed as of Cloud Services Start Date of this order The Cloud Services fees due under this order shall be reduced by the amount of fees paid for unused Services, if any, associated with the Previous Services Order as stated above as long as the invoices for the Previous Services have been paid in full. The amount of the Services fee reduction will be processed as of the Cloud Services Start Date of this order.
The fees due under this order for any new Cloud Services shall be reduced based on the date of access for such new Cloud Services. The Services Period end date will be the same for all Cloud Services on this order.
3. Service Specifications and Order Terms
"Service Specifications" means the following documents, as applicable to the Services under Your order: (a) the Oracle Cloud Hosting and Delivery Policies, the Program Documentation, the Oracle service descriptions, and the Oracle Corporate Security Practices; (b) Oracle's privacy policies; and (c) any other Oracle documents that are referenced in or incorporated into Your order. The following do not apply to any non-cloud Oracle Services acquired under Your order, such as professional services: the Oracle Cloud Hosting and Delivery Policies and Program Documentation. The following do not apply to any Oracle-provided Software: the Oracle Cloud Hosting and Delivery Policies.
During the Services Period, we may update the Services and Service Specifications to reflect changes in, among other things, laws, regulations, rules, technology, industry practices, patterns of system use, and availability of third party content. Oracle updates to the Services or Service Specifications will not materially reduce the level of performance, functionality, security or availability of the Services during the Services Period of Your order.
CPQ-3839680 - 1 Issued by Oracle America, Inc.
24-MAR-2025
6 All Services listed on this order are provided by Oracle under, and subject to, the terms of this order, including the Agreement and all Oracle documents referenced in this order. As applicable, Oracle processes a customer's order after receipt of a purchase order, a valid credit card or payment via Paypal.
Any terms and conditions on Your purchase order are void and have no legal effect. For Cloud Services, You may not reduce the quantity of Services purchased hereunder (e.g., user or record counts, storage, etc.), in whole or in part, during the Services Period set forth above. Once placed, Your order is non-cancelable and the sums paid nonrefundable, except as otherwise provided herein or in the Agreement.
4. Non-Appropriation
In the event funds are not appropriated for a new fiscal year period, You may terminate this order immediately without penalty or expense; provided, however, that: (a) for each of the 12-month terms of the order, You must provide a purchase order, and (b) Your issuance of each 12-month purchase order shall signify to Oracle that all funds for the given 12-month term have been fully appropriated and encumbered. Notwithstanding the foregoing, You agree to pay for all Services performed by Oracle prior to Oracle's receipt of Your notice of non-appropriation.
5. Order of Precedence
This order, including any subject matter addressed in the Service Specifications, shall supersede any inconsistent term, similar subject matter or scope of service delivery in the Agreement referenced above in Section A.1; however, unless expressly stated otherwise in this order, the terms of the Data Processing Agreement shall take precedence over any inconsistent terms in this order, the Agreement or other Service Specifications. This order will control over the terms contained in any purchase order.
CPQ-3839680 - 1 Issued by Oracle America, Inc.
24-MAR-2025
7 City of Placentia
Signature
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Name
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Title
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Signature Date
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SPACE
SPACE
BILL TO / SHIP TO INFORMATION
SPACE
SPACE
Bill To
Ship To
Customer Name
City of Placentia
Customer Name
City of Placentia
Customer Address
401 E Chapman Ave
PLACENTIA CA
92870
Customer Address
401 E Chapman Ave
PLACENTIA CA
92870
Contact Name
Jennifer Lampman
Contact Name
Jennifer Lampman
Contact Phone
+1 (714) 993-8237
Contact Phone
+1 (714) 993-8237
Contact Email
[email protected]
Contact Email
[email protected]
CPQ-3839680 - 1 Issued by Oracle America, Inc.
24-MAR-2025
8