REPORT TO THE CITY COUNCIL October 26, 2017 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: BRIAN S. SPINDOR, PE, Assistant Director Department of Public Utilities, Water/Wastewater Divisions BY: JOHN TURNIPSEED, Project Manager Department of Public Utilities - Water Division SUBJECT ..Title Amend agreement with Infor to increase Enterprise Asset Management (EAM) software seat licensing within the Department of Public Utilities. (Citywide). ..Body RECOMMENDATION Staff recommends that Council approve an amendment to the contract with Infor in the amount of $155,272.45 for additional Enterprise Asset Management (EAM) software seat licensing to be used within the Department of Public Utilities. EXECUTIVE SUMMARY The Department of Public Utilities, Wastewater Management Division (WMD), has an existing agreement with Infor for the purchase and support of Enterprise Asset Management (EAM) at the Regional Wastewater Reclamation Facility (RWRF). This Amendment will provide for additional software seat licensing to increase the number of users who can utilize the software and first year software maintenance support for the additional licenses. The increase in seat licenses will be extended to the Department of Public Utilities, Water Division, to manage the operations and maintenance of vertical assets in the electrical and production sections, Surface Water Treatment Facility, and for inventory control in the Water Division's Warehouse. BACKGROUND Prior to EAM, the WMD had been using Datastream MP2 Computerized Maintenance Management System (CMMS) for the operation and maintenance of assets at the RWRF since 1989. On January 5, 2006, Infor signed an agreement to acquire Datastream. Through this acquisition, Infor started requiring their customers to upgrade from MP2 to EAM, as Infor was no longer going to support MP2. In 2007, the WMD purchased and continues to maintain the following EAM seats in Table 1 from Infor for $33,906.00. Table 1 This amendment to the existing agreement will allow the Department of Public Utilities to use existing customer pricing with Infor rather than new customer pricing for the additional licenses. This equates to an approximately 50% cost reduction and a savings of over $150,000 for the additional software licenses and ongoing annual maintenance as shown in Table 2. Table 2 New Customer Pricing Existing Customer Pricing # Description Additional Seats Per Seat Pricing Total Per Seat Pricing Total Savings 1 Named Seat 25 $3,840.00 $96,000.00 $1,920.00 $48,000.00 $48,000.00 Annual Maintenance $768.00 $19,200.00 $422.40 $10,560.00 $8,640.00 2 Requestor Seat 2 $150.00 $300.00 $75.00 $150.00 $150.00 Annual Maintenance $30.00 $60.00 $16.50 $33.00 $27.00 3 Advanced Reporting Author 1 $1,049.00 $1,049.00 $187.50 $187.50 $861.50 Annual Maintenance $209.80 $209.80 $41.25 $41.25 $168.55 4 Advanced Reporting Consumer 25 $300.00 $7,500.00 $142.50 $3,562.50 $3,937.50 Annual Maintenance $60.00 $1,500.00 $31.35 $783.75 $716.25 5 Barcoding 1 $995.00 $995.00 $497.50 $497.50 $497.50 Annual Maintenance $199.00 $199.00 $109.45 $109.45 $89.55 6 Mobile 50 $2,995.00 $149,750.00 $1,497.50 $74,875.00 $74,875.00 Annual Maintenance $599.00 $29,950.00 $329.45 $16,472.50 $13,477.50 7 Language Manager 1 $0.00 $0.00 $0.00 $0.00 $0.00 Annual Maintenance $0.00 $0.00 $0.00 $0.00 $0.00 $306,712.80 $155,272.45 $151,440.35 The additional seat licenses will allow the Water Division to utilize the following EAM modules. 1. Asset Management - Record, maintain, structure, and standardize asset information. Capture the identity, configuration, and structure of physical assets, their complete technical and commercial configurations, and current position (either by location, functional position, or tag) as well as past locations and maintenance history 2. Work Management - Manage, plan, and monitor work and the resources necessary to complete work. Create standard, regular, and preventative maintenance (PM) work orders and schedules, and define work information such as supervisors, permits, qualifications, employees, shifts, tools, and checklists. 3. Materials Management - Determine the correct stocking levels to provide an acceptable service level of parts and supplies to meet anticipated demand from maintenance. Minimize the working capital invested in stocked parts and supplies and automate storage room management, purchase requisitioning, goods receipts and returns, parts repair, and record keeping. 4. Procurement Management - Manage the purchasing cycle from requisition creation, approvals, supplier selection, purchase order placement, and goods receipt through invoice matching. Ensure the selection of qualified suppliers and obtain best price and delivery terms. 5. Project Management - Automate the administration of the complete project process from initial budget and time-scale planning to completion of the final work. Facilitate comparison of actual status and progress of work, resource usage, and costs against a project plan. Total compensation for the agreement amount is $155,272.45. There is a one-time seat license purchase cost of $127,272.50, and $27,999.95 for the first year's software maintenance cost. This maintenance cost will be an ongoing charge to be paid annually as long as we own and use the software. With the Amendment, the Department of Public Utilities will have the ability to make full use of the EAM software capabilities and allow for improved customer service, increased staff efficiency, and greater fiscal management. The agreements have been approved as to form by the City Attorney's Office and the City Manager has approved the sole source purchase of additional software licenses pursuant to AO 3-3. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE N/A - Local preference is not considered because the purchase of software is coming directly from the developer. FISCAL IMPACT This project will have no impact to the General Fund. Funding has been appropriated in the FY 2018 Water Division budget under CIP WC87. Attachments: Sole Source Memo Order Form Software License Agreement Software Support Agreement