Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute An Amendment To The Existing AST Master Services Agreement And Related Ordering Documents For The Oracle Enterprise Resource Planning Software (Previously Approved By Resolution No. R-2017-265), In Order To Purchase An Oracle Community Development Suite Software To Replace Outdated Software For The Building Division In The Department Of Development Services In An Amount Not To Exceed $559,975.00 For The First Year; Declaring That It Is In The Best Interest Of The City To Waive Competitive Bidding Pursuant To Section 38.40(C)(8) Of The Purchasing Ordinance.
Body
Staff Recommends: Approval of the Attached Resolution.
Explanation:
In 2016, the City initiated a program to update all outdated software systems to End Duplication and Gain Efficiencies, (EDGE). The following year, in 2017, City Commission, (R-2017-265) authorized an Agreement with AST, LLC., based on a competitive bid, to implement an Oracle Enterprise Resource Planning, (ERP) system with modules for the City’s Budget, Finance, Procurement and HR departments. This provided a foundational ERP system for the city to allow for future growth in other needed areas.
The contract with the City’s vendor AST, LLC. has provisions for subcontracting additional goods and services. The City will be taking advantage of a unique opportunity, where the parent company Oracle, will be creating a custom solution for the City of Hollywood, which will also serve as a model and example for other cities and entities nationwide. This opportunity is known as Oracle’s Early Adopter Program. In return for participating in this program the City will take advantage of deeply discounted service fees for the duration of the initial contract term of five years.
This new custom solution, known as Oracle’s Community Development Suite, includes modules for Building, Planning and Code Enforcement which will also be utilized by Engineering, Fire and Utilities. This solution will replace legacy software systems with a more robust and integrated solution, by utilizing a cloud based platform to improve core functions, including remote data input and retrieval, by staff customers and the public, special projects, and complex reports. Oracle is developing the future to provide next-generation mission-critical data management capability to help eliminate complexity and human error as compared with traditional, manual database management that exists in today’s market. This software will provide staff with built-in availability and specialize customization for easy access to populate reports such as Land Use Reports, ISO, FEMA, and revenue reports, which currently requires hours of staff time to do.
Based on the City’s integration of Oracle’s current modules, Development Services has determined that it is in the City’s Best Interest to expand the current Oracle ERP modules with additional compatible and integrated modules, known as Oracle’s Community Development Suite, for its operational needs in accordance with the previously approved AST, LLC. Agreement.
This amendment to the Agreement, which is only for implementation of Oracle’s Community Development Suite, is for one year with nine options to renew. The reason for these terms is to be consistent with the City’s approved AST, LLC. Agreement; as the current request is a Best Interest. The total cost, which includes 200 licenses:
Year one: $559,975.00
Year two: $489,575.00
Years three through six annual cost: $128,775.00
Year seven: $133,014.00
Year eight: $137,464.00
Year nine: $147,045.00
Year 10: $103,045.00
TOTAL 10 YEAR AGGREGATE COST: $2,085,218.00.
The above fees include the implementation, software and licenses and post production support. Although the project will be done in phases, the payment schedule is based upon adequate completion of programing benchmarks and not only time limitations. A complete breakdown of all fees is available within Exhibit C of the Amended Master Service Agreement.
The Building Division is responsible for the cost of the capital software and will be responsible for 90% of the licenses. Planning and Urban Design will be responsible for 10% of the licenses annually.
The implementation timeline is estimated to take 21 months:
Building Module: 11 months
Planning Module: 6 months
Code Enforcement: 5 months
Oracle will provide training and support to the City’s staff initially and over the life of the contract to ensure current and future staff have the understanding and knowledge to utilize 100% of the software capabilities at all times.
Additional non-recurring costs are anticipated in order to facilitate the software upgrade. These include items such as larger computer monitors for digital plan review, new tables for field inspectors, credit card readers and check scanners for payment processing, larger scanners for customer plans and documents, and temporary staffing assistance with the project implementation.
Budgeting for this software purchase ($559,975.00 + $489,575.00) and initial non-recurring costs ($250,000.00) are part of a companion item on this agenda (Resolution R-2020-____). Additional funding of approximately $250,000.00 will be necessary in next fiscal year.
It is staff’s recommendation that the City enter into this contract with Oracle to provide the state of the art software program for streamlining the permitting process that is designed and tailored made especially for the City.
Recommended for inclusion on the agenda by:
Russell Long, Assistant Chief Building Official
Shiv Newaldass, Director of Development Services
Gus Zambrano, Assistant City Manager for Sustainable Development